A 120lb. LABRADOR? Holy shamoly!
Are you sure he's not mixed with something like Mastiff?
I agree with the desensitization route. Since he's young, I'd say that's probably in his favor as far as being able to make progress, but be sure to take it slow.
I would strongly recommend that you find a trainer who can help design a systematic program of desensitization specifically tailored to this dog. In the meantime, you should keep a leash on him at all times that you can supervise him so that if you need to get physical control over him, you can do so without grabbing his collar.
Keep in mind that desensitization takes months, not days. This is a long term process and the first step is to stop situations from occurring that elicit the negative response, while practicing structured and controlled training setups on a daily basis. A systematic program will break down the specific trigger (collar grabs) into small steps, starting with whatever is easiest for the dog and does not cause the dog to have a negative response. Over time, you slowly increase the criteria. ***Progress should be based upon the dog's reaction, not some arbitrary timetable. ONLY when you are seeing happy responses to the current level should you progress to the next.***
For example, a systematic program *might* look something like:
Week 1) Approach dog with hands hanging loosely at your sides, and feed dog from left hand (note: Food treats should be something that he ONLY gets during these training exercises, and they should be something extra special like boiled chopped chicken liver or cocktail shrimp or anything really special). Feed dog treats in rapid fire fashion for several seconds, then turn and walk away and ignore him for several seconds. Repeat a few times (three to five) and practice every day.
Week 2) Approach dog in manner described above, only this time move your right hand, palm down, two inches forward and while holding it there, feed dog from left hand.
Week 3) Same as above, only have right hand four inches forward.
...and so on, until you have your right hand level with the top of the dog's head while feeding him from your left hand, and from there, the right hand gets closer to the collar over time, until at the very end, you approach dog, take hold of collar with right hand, feed from left hand.
Definitely use a muzzle during this process for your own safety, and so that you can be relaxed. If you are tense because you're afraid he's going to bite you, he will pick up on your tension. Just make sure it's a muzzle he can eat treats through. Also never increase the difficulty of the exercise if he is having trouble at the current level. Instead, decrease the difficulty until it is easy for him, and only when you start seeing happy responses should you increase the difficulty, again, in tiny increments; dogs notice the smallest changes. This is supposed to be positive for him every step of the way, and you need to be relaxed and happy while you're doing this, so you have to be patient and commit yourself to doing this for the long haul.
If at any time he has a hard time with the exercise, drop back to a previous level where he could handle it and work there until you see a positive response. Look for things like tail carriage, whether the eyes look hard or soft, and whether the mouth is relaxed and open, or is closed. He should look relaxed and happy, with loose tail, relaxed mouth, soft eyes, etc. If he looks tense, then it's too hard and you should NOT increase the difficulty.
....and be sure to cut back on his meal portions since he'll be getting a lot of food during this process. He probably doesn't need to gain any more weight. <img src="/ubbthreads/images/graemlins/wink.gif" alt="" />
In closing, I should tell you that I am not a professional, and my advice is NOT a substitute for competent, in person help. My sample training plan is simply an example of the kind of plan that, in my opinion, you should implement. The specifics of the plan should be between you and a qualified professional.
Lisa & Lucy, CGC, Wilderness Airscent
Western Oregon Search Dogs