Collective bargaining is essentially the negotiation about Working conditions and terms of employment between the employers and employees or government with the view of reaching an agreement. Its primary aim is to bring both parties in a working relationship together for the purpose to ensure industrial harmony and the attainment of organizational goals. The aim of the project is to find out how collective bargaining can effectively ensure industrial harmony thereby increasing productivity and improve performance through a collective agreement. Various works of literature were reviewed concerning the subject matter. The estimated population of Akanu Ibiam Federal Polytechnic, Unwana were selected using simple random sampling technique. A close-ended questionnaire was used as the major instrument for data collection. The information obtained was presented on a frequency table using simple percentage. The hypothesis formulated were tested using chi-square non-parametric test. The study so far has shown that workers put more effort to work when their welfare packages are adequately stated in the collective bargaining agreement and also revealed that collective bargaining will go a long way at ensuring industrial harmony, reduce intergroup conflict and improve performance and organizational productivity.