Collective Bargaining
Bargaining Power <ul><li>B argaining power   -  the ability of one side to secure the other side’s agreement to its terms ...
Relationship Between Parties <ul><li>The relationship between the parties includes the following: </li></ul><ul><ul><ul><l...
Stages of Bargaining  <ul><ul><li>Pre-negotiation stage </li></ul></ul><ul><ul><li>Establishing the negotiation range </li...
Pre-negotiation Stage <ul><ul><li>Each side determines its priorities, goals and ultimate proposals for the upcoming negot...
Establishing the Bargaining Range – First formal session <ul><li>Both parties introduce their bargaining team members and ...
Narrowing the Bargaining Range <ul><li>Each team enters negotiations with an  initial offer  and a  bottom line  position ...
Narrowing the Bargaining Range <ul><li>The  zone of agreement   dictates each side’s decisions in narrowing the bargaining...
Narrowing the Bargaining Range (Continued) <ul><li>If there is no zone of agreement, either there will be no settlement or...
The Crisis Stage <ul><li>During the  crisis   stage, one or both sides must decide whether to settle or to use economic pr...
Ratification <ul><li>Ratification   is necessary once terms are agreed upon. The teams return to their constituencies and ...
Summary of How Negotiations Proceed <ul><li>At the first joint bargaining meeting the teams exchange written proposals  </...
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C ollective bargaining

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C ollective bargaining

  1. 1. Collective Bargaining
  2. 2. Bargaining Power <ul><li>B argaining power - the ability of one side to secure the other side’s agreement to its terms </li></ul><ul><li>The employer’s bargaining power is limited by the size of its inventory, the structure of its operation, its competitiveness, whether the business is seasonal, whether it can operate during a strike, and its labour costs </li></ul><ul><li>The union’s bargaining power includes such factors as the strength of commitment, access to strike funds, and the timing and effectiveness of a possible strike </li></ul>
  3. 3. Relationship Between Parties <ul><li>The relationship between the parties includes the following: </li></ul><ul><ul><ul><li>Each side’s motivation to be competitive or cooperative with the other side </li></ul></ul></ul><ul><ul><ul><li>Each side’s attitudes and beliefs about the legitimacy of the other side’s leadership </li></ul></ul></ul><ul><ul><ul><li>The level of trust each side has in the other </li></ul></ul></ul><ul><ul><ul><li>Each side’s feelings of friendliness or hostility toward the other </li></ul></ul></ul>
  4. 4. Stages of Bargaining <ul><ul><li>Pre-negotiation stage </li></ul></ul><ul><ul><li>Establishing the negotiation range </li></ul></ul><ul><ul><li>Narrowing the negotiation range </li></ul></ul><ul><ul><li>Crisis stage </li></ul></ul><ul><ul><li>Ratification stage </li></ul></ul>
  5. 5. Pre-negotiation Stage <ul><ul><li>Each side determines its priorities, goals and ultimate proposals for the upcoming negotiations; some proposals are considered essential, while others may be traded or “dropped off the table” once negotiations have begun </li></ul></ul>
  6. 6. Establishing the Bargaining Range – First formal session <ul><li>Both parties introduce their bargaining team members and present their proposals </li></ul><ul><li>The chief negotiator for each side orally presents the rationale for each proposal to the other side </li></ul><ul><li>Purposes of oral presentations: </li></ul><ul><ul><li>Establish the bargaining range </li></ul></ul><ul><ul><li>Demonstrate each side’s degree of commitment </li></ul></ul><ul><ul><li>Provide an opportunity for each side to explain the reasoning behind its proposals and thereby influence the perceptions and expectations of the other side </li></ul></ul>
  7. 7. Narrowing the Bargaining Range <ul><li>Each team enters negotiations with an initial offer and a bottom line position for each proposed item </li></ul><ul><ul><li>Initial offer – first proposal given to the other side </li></ul></ul><ul><ul><li>Bottom line – absolute minimum the team would be willing to accept </li></ul></ul><ul><li>During this stage, both sides start to retreat from their original positions in an attempt to find a point where a mutually satisfactory resolution can be reached </li></ul>
  8. 8. Narrowing the Bargaining Range <ul><li>The zone of agreement dictates each side’s decisions in narrowing the bargaining range and, ultimately, whether the parties reach an agreement. </li></ul>
  9. 9. Narrowing the Bargaining Range (Continued) <ul><li>If there is no zone of agreement, either there will be no settlement or each team will have to adjust its bottom line </li></ul><ul><li>The timing of counter-proposals and concessions is crucial during this stage; both sides must exhaust their arguments for their own positions </li></ul><ul><li>This is often the longest of all the bargaining stages </li></ul>
  10. 10. The Crisis Stage <ul><li>During the crisis stage, one or both sides must decide whether to settle or to use economic pressure such as a strike or lockout </li></ul><ul><li>This decision can be triggered by disputes over a single issue or over a “package” deal involving several interrelated items </li></ul><ul><li>This stage can be short or lengthy, depending on the strength of the parties’ resolve and their resources </li></ul>
  11. 11. Ratification <ul><li>Ratification is necessary once terms are agreed upon. The teams return to their constituencies and present the negotiated terms for approval </li></ul><ul><li>The union will generally conduct a membership vote and management will review the agreement with all relevant stakeholders . </li></ul><ul><li>If one side rejects the proposed agreement, the parties must return to the table </li></ul><ul><li>Once the agreement is ratified, representatives from both sides sign it to bring it into legal effect </li></ul>
  12. 12. Summary of How Negotiations Proceed <ul><li>At the first joint bargaining meeting the teams exchange written proposals </li></ul><ul><li>Each negotiating team then holds its own private meetings (caucus) to formulate a response </li></ul><ul><li>At the second and subsequent joint meetings, each team makes counter-proposals and uses a variety of strategies and tactics to uncover the other team’s goals and priorities </li></ul><ul><li>These meetings continue until an agreement is reached or an impasse is declared </li></ul>
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