Types of Collective BargainingConjunctive / Distributive Bargaining:Distributive bargaining is the most common type ofbargaining & involves zero-sum negotiations, in otherwords, one side wins and the other loses.Both parties try to maximize their respective gains.They try to settle economic issues such aswages, benefits, bonus, etc.For Example, Unions negotiate for maximum wages &the management wants to yield as little as possible –while getting things done through workers.
• In distributive bargaining, unions and management have initial offers or demands, target points (e.g.: desired wage level), resistance points (e.g.: unacceptable wage levels) & settlement ranges (e.g.: acceptable wage level). Another name for this type of bargaining is conjunctive bargaining.
• Cooperative /Integrative Bargaining: Integrative bargaining is similar to problem solving sessions in which both sides are trying to reach a mutually beneficial alternative, i.e. a win-win situation.• Both the employer & the union try to resolve the conflict to the benefit of both parties. Both sides share information about their interests and concerns and they create a list of possible solutions to best meet everyone’s needs.
• For Example, when companies are hit by recession, they cannot offer the kind of wages and benefits demanded by workers. At the same time they cannot survive without the latter’s support. Both parties realize the importance of surviving in such difficult times and are willing to negotiate the terms of employment in a flexible way.
• Productivity Bargaining:• The concept of productivity bargain involves a good understanding of the following concepts. Based on these concepts both the parties must develop a productivity linked scheme.
• Difference between productivity & work intensity• How to conduct work study• ILO guidelines for work study – Personal needs allowance, Fatigue allowance, hazardous allowance , etc.• Other Methods like MOST (Maynard Operational Sequence Techniques)• Systems improvement and method improvement• Required Skills and Knowledge for productivity settlement
• Composite Bargaining:• Workers believed that productivity bargaining agreements increased their workloads. Rationalization, introduction of new technology, tight productivity norms have added to this burden and made the life of a worker some what uneasy. As an answer to such problems, labor has come in favor of composite bargaining.
• In this method, labor bargains for wages as usual, but goes a step further demanding equity in matters relating to work norms, employment levels, manning standards, environnemental hagards , sub-contracting clauses etc. This works in the favor of the workers, for e.g., when unions negotiate standards they ensure the workload of workers don’t exceed .
• Concessionary Bargaining:• Quite opposite to the other forms of bargaining, where the unions demanded from the employers, in concessionary bargaining, the objective is to giving back to management some of what it has gained in previous bargaining.• Why should labor be willing to give back what it has worked so hard to obtain?
• A good example is the agreement between General Motors & the International Union of Electric Workers that granted GM around the- clock operations, wages and benefits concessions for the new hires, and a two-week mass vacation. The concessions were made to save over 3,000 jobs.
• In some cases, despite a financial crisis, the union may not be willing to concede. This may be because the union doesn’t view management’s arguments as credible. Thus, the degree of trust and credibility between the management and the union may influence the extent to which concessionary bargaining occurs.