Explanation:

Productivity bargaining is, of course, the process of negotiation which culminates in such an agreement. The essence t the agreement is the exchange—the provision of improved employee benefits in return for their co-operation in improving the efficiency of opera ions, and vital in marking out a productivity agreement, distinguishing it rom one which aims simply to stimulate greater labour effort (such as a payment by results scheme), is the method by which labor reciprocates—by accepting changes in their working practices. Clearly such a procedure, of negotiating the price of a job when the nature of the job changes, is not new and presumably its practice on an informal basis dates back to the abolition of slavery and mass unemployment, but nevertheless it is true that a widespread and formalized technique it is one which has evolved in the United kingdom in the last decade and particularly in the past five years.