Collective Bargaining 1-1

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Collective Bargaining

Facilitator:William Holder

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What is Collective Bargaining

• Collective Bargaining is the exercise in which workers, through their unions , try to reach an agreement with their employers on wages payable and other benefits which they will enjoy in exchange for their labour.

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• Objectives in Collective Bargaining

• To raise the material living standard of workers.

• To create a community of workers which is conscious of the dignity of labour and the importance of its role in the nation.

• To create the skilled, stable and secure work force required to operate a steadily expanding production of national wealth.

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• To give self - confidence and respect to workers as individuals.

• To eliminate ignorance and illiteracy which hold the workers in developing countries prisoners in their own countries and let them enjoy that human dignity which free trade unions believe to be the right of all men.

• To build, for the fulfillment of these objectives , strong T.U which are conscious of their responsibilities to the worker and to the nation as a whole.

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Conditions for Effective Collective Bargaining

• Strong trade unions organization. • Union controlled and financed by

the members.• No anti trade union laws that may

work against the bargaining parties.

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Preparing for Collective Bargaining• Understand workers’ needs, problems

and propose solutions.• Discuss proposals with a representative

committee elected for the purpose, making amendments where necessary.

• Make sure that your proposals are straight forward and cannot have more than one meaning.

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• Make sure the terms of the agreement are binding on the employer.

• Collective bargaining begins with a discussion of the union’s written proposals and ends with the signing of a written agreement.

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• Preparing Bargaining Proposals

• Recognition of the union.• Union security.• No discrimination • Management rights• Grievance procedure• Seniority• Working conditions.

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• Wages, job classification or grades and bonuses. Full details of wages, job grades, apprenticeship schemes and other incentive payments.

• Joint consultation.• Duration of agreement.

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• Other Important Principals of Collective Bargaining .

• Prepare Arguments.• Collecting facts- International business, the

particular industry, the particular employer, labour statistics.

• Gathering information from sources i.e. The Press, Gov’t Reports, ILO Office, Budget Speeches, Business Reports, etc.

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• Analyzing Financial Reports.• Calculating cost of union demands

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• Bargaining Strategy

• Build up the strength and fighting spirit of the union.

• Timing is important.

• Use sensible bargaining methods.

• Bargaining team selection

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• At the Bargaining Table• Be mentally tough.• Know when to compromise.• Initial all agreements reached.• Counter aggression /intimidation with skill and

tack .• Bargain for all workers in the union’s

jurisdiction.• Justify wage increase.• Be flexible but firm.• Keep members informed.

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Advantages of Collective Bargaining

Collective Bargaining has the advantage of settlement through dialogue and consensus rather than conflict and confrontation.

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Collective Bargaining agreements often institutionalize settlements through dialogue. E.g A collective agreement may provide for methods by which disputes between the parties will be settled. The parties know that there is a agreed method for settling disagreement.

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Collective Bargaining is a form of participation. Both parties participate in deciding what proportion of the ‘cake’ is to shared by the parties entitled to a share.

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Collective Bargaining is a form of participation because it involves a sharing of rule making power between employer and unions in areas which in earlier times were regarded as management prerogative, e.g. transfers,promotion, redundancy, discipline, modernization, production norms.

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Collective Bargaining agreements sometimes renounce or limit the settlement of disputes through trade union action.Such agreements have the effect of guaranteeing industrial peace for the duration of the agreement , either generally or more usually on matters covered in the agreement.

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Collective bargaining is an essential feature in the concept of social partnership

towards which labour relations should strive.

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Collective Bargaining has valuable by-products relevant to the relationship between the two parties. E.g. a long term course of successful and bona fide dealings leads to the generation of trust. It contributes towards mutual understanding by establishing a continuing relationship.

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Where there is a multiplicity of unions and shifting union loyalties, collective bargaining and consequent agreements tend to stabilize union membership.

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Most importantly Collective Bargaining usually has the effect of improving industrial relations.

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Collective Bargaining Collective Bargaining can be further defined as a continuing institutional relationship between an employer entity(government or private) and a labour organisation (union or association) representing exclusively a defined group of employees (appropriate bargaining unit) concerned with the negotiation, administration, interpretation, and enforcement of written agreements covering joint understanding as to wages and salaries, rates of pay, hours of work and other conditions of employment. Of major importance is the fact that collective bargaining relationships are a continuous one, involving contract administration as well as contract negotiatioon.