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Productivity bargaining has become enshrined in government incomes policy, has been the subject of three official or semi-official reports, and has been stressed in four white papers on incomes policy as a criterion for pay increases. In the early 1960s several major productivity deals were concluded which were in many ways very similar and had many common features. They sought to diminish the chronic under-employment and misuse of human resources in these industries and to raise productivity by the following distinct but interdependent means: controlling overtime; reducing manning; and creating greater flexibility. It has been claimed that productivity bargaining has beneficial effects on the climate and institutions of industrial relations and on the attitudes and involvement of workers. The major proposition that underlies the concept of productivity bargaining is that there is an inherent conflict of interests in industrial enterprises between management and employees.
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