Collective Bargaining Collective Bargaining 1 COLLECTIVE BARGAINING… . Continued..
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1
COLLECTIVE BARGAINING
….Continued..
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Pre-requisites
• Recognition of Bargaining Agent
• Deciding the level of bargaining
• Determining the scope and coverage of bargaining
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Industrial bargaining has 3 approaches
• Unilateral
• Bilateral
• Tripartite
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TYPES
• Conjunctive Bargaining
• Integrative/ Productivity Bargaining
• Composite Bargaining
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Conjunctive bargaining
• Also called distributive or zero sum bargaining
• We vs. They
• Primary concern is to maximize one’s gain at the cost of other
• Mostly concerned with wages and benefits
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Cooperative bargaining
• Characterized by cooperative stance
• Impact of recession
• Pay cut for job security
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Productivity bargaining
• Growing strength of union has impact on productivity and high costs
• Links workers wages and benefits with productivity
• Productivity standards are set and need to be met.
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Composite bargaining
• Labours’ response to productivity bargaining
• Pressure from union to bargain not just monetary aspects but also:– Work norms– Manning standards– Employment levels– Sub-contracting practices– Environmental and health hazards etc..
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Bargaining Theories
• Walton & McKersie Theory– Views CB as 4 sub processes
• Distributive bargaining • Integrative bargaining• attitudinal structuring • intra-organisational bargaining
– These help in shaping the final outcome
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Bargaining range Theory
• Labour and mgmt establish lower and upper limits
• Both teams proceed through proposal and counter-proposal
• Depend on bargaining skills and strength of union and management negotiators
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Chamberlain Model
• Focuses on bargaining power
• The ways in which changes in these lead to settlement
• BP is ability to secure your opponent’s agreement to your terms
• Depends on how costly disagreeing will be relative to how costly agreeing would be
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Management and Union Power in Collective Bargaining
• Bargaining Power– The power of labor and management to achieve
their goals through economic, social, or political influence.
• Union Bargaining Power– Strikes, pickets, and boycotts
• Management Bargaining Power– Hiring replacement workers– Continuing operations staffed by management– Locking out employees
14–12Presentation Slide 14–8
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Levels of bargaining
• Plant or establishment level
• Industry level
• National level
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The Collective Bargaining
Process
14–14
Figure 14.2
PREPARE FOR PREPARE FOR NEGOTIATIONSNEGOTIATIONS
------------------------------------------------------------• Gather dataGather data• Form bargaining termsForm bargaining terms
PREPARE FOR PREPARE FOR NEGOTIATIONSNEGOTIATIONS
------------------------------------------------------------• Gather dataGather data• Form bargaining termsForm bargaining terms
DEVELOP DEVELOP STRATEGIESSTRATEGIES
------------------------------------------------------------• Develop management Develop management
proposals and limits of proposals and limits of concessionsconcessions
• Consider opponents’ goalsConsider opponents’ goals• Make strike plansMake strike plans
DEVELOP DEVELOP STRATEGIESSTRATEGIES
------------------------------------------------------------• Develop management Develop management
proposals and limits of proposals and limits of concessionsconcessions
• Consider opponents’ goalsConsider opponents’ goals• Make strike plansMake strike plans
CONDUCT CONDUCT NEGOTIATIONSNEGOTIATIONS
----------------------------------------------------------------• Bargain in good faithBargain in good faith• Analyze proposalsAnalyze proposals• Resolve proposalsResolve proposals• Stay within bargaining zoneStay within bargaining zone
CONDUCT CONDUCT NEGOTIATIONSNEGOTIATIONS
----------------------------------------------------------------• Bargain in good faithBargain in good faith• Analyze proposalsAnalyze proposals• Resolve proposalsResolve proposals• Stay within bargaining zoneStay within bargaining zone
FORMALIZE FORMALIZE
AGREEMENTAGREEMENT------------------------------------------------------------
• Clarify contract languageClarify contract language• Ratify agreementRatify agreement
FORMALIZE FORMALIZE
AGREEMENTAGREEMENT------------------------------------------------------------
• Clarify contract languageClarify contract language• Ratify agreementRatify agreement
11 22
44 33
Presentation Slide 14–7
Strikes Legal requirements
Lockouts replacements Boycotts
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Items In A Labor Agreement
• Typical clauses will cover:– Wages– Vacations– Holidays– Work schedules– Management rights– Union security– Transfers– Discipline
– Grievance procedures
– No strike/no lockout clause
– Overtime – Safety procedures– Severance pay – Seniority – Pensions and
benefits – Outsourcing
14–15
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Vs
Collective Bargaining Negotiation Skills
Regulation of terms and Settlement of disputes
conditions of employment between two or more parties
of workers between their wherein all modify their
bargaining agent and demands to achieve an
employers. acceptable compromise.
It is a kind of rule making It is a deliberate, explicit
exercise. event.
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Pre-negotiations
• Establish both your objectives and those of the other party in terms of needs, positions, packages of currencies, how you will react to certain behaviours, mandates, etc.
Decide on your batna (best alternative to no agreement).
• Collect all relevant facts.
• Before framing specific proposals consult informally with the foremen, departmental heads, work study people, shop stewards and key operatives.
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• Decide who should be conducting the negotiations and the roles of each member of your negotiating team.
• Ensure that all members of your side are in agreement. Prepare managers for awkward questions and proposals. See that neither in body language nor verbally does any one on your side display disagreement with your presentations.
• Calculate in advance the cost of various concessions.
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Negotiation strategies
• Not everybody will receive the same information.
• There is no guarantee that everybody will receive some information.
• Find out how the other party sees the situation and try to see it from their point of view; understand their problems and find out what they want.
• Don’t antagonise the other party by making them defensive and if you feel he needs an opportunity to save face give him one.
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The kinds of behaviour most likely to create harmonious personal relationships are :
• showing respect for the other person’s opinion.
• Showing willingness to change your judgment in the light of new evidence - keeping an open mind.
• Being sincere and consistent in your approach.
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• Avoiding his defeat in argument - leave him a way out where possible.
• Being calm and patient; considerate and cool.
• Listening to what he has to say before replying and showing interest in what he says by summarising, and testing understanding.
• Acting with deliberate intent and not on impulse.
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• Keep flexible and be prepared to offer or accept alternative solutions to particular problems.
• The ultimate settlement is frequently not what was originally asked for.
• Remember that good negotiators start high so that they have a strategic anchor!
• Don’t make promises unless you are absolutely certain of your backing, and that you will be able to keep them.
• Always leave yourself a small loophole. Don’t ever be dogmatic.
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Bargainingzone
orsettlement
range
Unions’ ideal solution
Unions’ expectations
Unions’ tolerance limit
Employers’ tolerance limit
Employers’ expectations
Employers’ ideal solution
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Common union negotiation tactics and counters by management
There are two rules management should follow in response to this tactic:
- Do not accept verbal statements at their face value.
- Do not counter wild union demands with equally wild proposals. Always act in a manner calculated to maintain the respect of the entire work force.
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The union negotiator usually begins with an attack upon the employer.
This is usually purely ritualistic behaviour;
its objective being either to strengthen the resolve of the union members and to strengthen the leader’s position in his union, or as a compensating show of strength for accepting a relatively unfavourable position.
The management should simply listen and ignore his behaviour.
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Early on in the negotiations, the union leaders will ask: “was it the intention of the management to meet the union’s just demands?”
When management makes a non-committal reply (as they should do) the union member is likely to threaten to walk out as “there seems little purpose in negotiating with such a rigid company.”
This tactic is intended:
- To shock management into revealing information.
- To create a nervous or conciliatory mood in which real negotiations would begin.
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How to say no
1. Say it promptly.
2. Do not feel obliged to explain and justify every ‘no’.
3. Do not say ‘no’ impatiently or in anger.
4. Find a sounder proposal to soften the answer.
5. Show concern for the eprson while rejecting his ideas.
6. Restate their demands and proposals in a different way more suitable for you.
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• Problems with the unions
• Legal problems
• Political interference
• Attitude of management
Causes for the limited success of CB in India
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Conditions Essential For Effective Bargaining
• Freedom of association of employees
• Unanimity among workers
• Strength of both the parties
• Attitude of the parties
• Representative authority
• Mutual acceptance of the agreements entered into by
employers and employees
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