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C ollective bargaining
C ollective bargaining
C ollective bargaining
C ollective bargaining
C ollective bargaining
C ollective bargaining
C ollective bargaining
C ollective bargaining
C ollective bargaining
C ollective bargaining
C ollective bargaining
C ollective bargaining
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C ollective bargaining


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