Collective Bargaining" (CB) is the negotiation between representatives of management and workers to produce a written agreement covering terms and conditions of employment

1. Chapter 07
Collective
Bargaining
Monir Hossain, 4th Batch ,
MBA, HRM, ID:20141205019
Management Studies,
BSMRSTU

2. Introduction
"Collective Bargaining" (CB) is the negotiation between
representatives of management and workers to produce a
written agreement covering terms and conditions of
employment."
It is essentially a compromise and balancing of opposing
pressures of two social groups who have enough mutual
interests to work together.
Pressures at the bargaining table usually are framed in economic
and technical terms.

3. Introduction
 Bargaining is really a social process. According to
Dale Yoder much of today's management of human
resource or manpower is "Self-Management".
 Individual employees as individuals and members of
unions take active part in their management.
 They join in making many decisions that would
otherwise have to be made for them by employers or
their managers.

4. Introduction
In mature economies like that of the U.S.A., employees
play a decisive role in their own promotions, transfers,
training and other conditions of employment.
They participate in the formulation of labour policy.
Participation takes place through unions in the process
of collective bargaining.
Joint Employer-Union Management is relatively new.

5. Introduction
To some employers, union participation is interference
with essential prerogatives of management.
In some firms and public agencies, major concern is
apparent towards 'containment and resistance against
worker participation in management’.
Wide spread discussion is evident about the extent of
union's role in management.

6. Introduction
 How much Joint-Employer Union-Management co
operation is desirable for the sake of enthusiastic team
work, productivity and democratic society is hotly
debated.
 Appropriateness of public rules are also being
discussed.
 Office employees, retail clerks and janitorial staffs are
also forming associations.

7. Introduction
 Once unionism was prohibited among white collar
employees
 So employers used to promote unmanageable union
leaders and then fire them.
 Today officers, teachers, accountants, lawyers,
journalists and top-ranking bureaucrats have their
associations to press for their rights and bargain with
authorities.

8. Objectives of Collective Bargaining
Collective bargaining objectives, among others, are to:
 Settle disputes/conflicts relating
to wages and working
conditions;
 Protect the interests of workers
through collective action;

9. Objectives of Collective Bargaining
 Resolve the differences between workers and
management through voluntary negotiations and arrive
at a consensus;
 Avoid third party intervention in matters relating to
employment.

10. Collective Bargaining Process
Collective Bargaining is in reality a compromise and
balancing of opposing pressures of two social groups
who have considerable mutual interest to work together.
Pressures at bargaining table normally are framed in
economic and technical terms but still overall
bargaining remains a social process.
It is not a one stop process but a continuous one. This
is particularly true from behavioural point of view.

11. Collective Bargaining Process
It is true that formal negotiation around bargaining
table takes place periodically but a lot of pre and post
contract signing process and procedures have to be
followed cautiously.
Contract is communicated to union leaders, employees,
managers and employers for perusal, analysis and
interpretations.

12. Collective Bargaining Process
 New situation, not specifically spelled out, may always
arise.
 This requires union representatives and managers to sit
together to thrash out differences.
 Both the parties watch for flaws for amendments. In
the mean time, plans for negotiating a new contract is
underway.

13. Collective Bargaining Process
 Union leaders hammer out heads to find newer and
newer demands and management people also devise
ways to evade compliance.
 Both the parties closely watch what is happening in
other firms of the locality as well as other organizations
in national and international levels.

14. Collective Bargaining Process
They also employ smart negotiating experts. This
keeps bargaining alive and effective.
Habibullah watched as member of Minimum Wage
Board of GoB the warring representatives of workers
and management.
Collective bargaining is not an affair conducted
annually and half yearly permitting managers to get
down to business peacefully.

15. Collective Bargaining Process
 Periodic bargaining tells only a part of the whole
picture. From behavioural point of view collective
bargaining is a continuing process though forma
negotiations around bargaining table takes place
periodically.
 Signing of the contract means temporary stoppage of
cold war but after singning, several other parts of
bargaining process have got to be performed.

16. Collective Bargaining Process
In collective bargaining carrying out negotiation and
reaching an agreement constitute only half of the
process. The other equally important part is
implementation of the contract. However, briefly
following steps are involved in the Collective
Bargaining process.
 Identification of the problem.
 Preparing for negotiations.
 Negotiation of agreement.
 Implementation of the contract.

17. Identification of the problem.
Problem identification influences she whole process.
Whether the problem is very important that is to be, discussed
immediately or it can be postponed for some other convenient
rime.
Or whether the problem is a minor one so that it can be solved
with the other party's acceptance on its presentation and does
not require following the long process of collective bargaining,
etc.

18. Identification of the problem.
It also influences the selection of representatives, their size,
period of negotiations and period of agreement that is reached
ultimately.
As such it is important for both the parties to be clear about
the problem before entering into the negotiations.

19. Preparing for negotiations
 If collective bargaining is deemed essential, both the
parties prepare themselves for negotiations.
 The preparation starts with selection of representatives.
 Such representatives should be selected who can carry
out negotiations with patience, and sincerity and can
present their views effectively.

20. Preparing for negotiations
 After selection they should be educated about the
complete problem and its pros an cons.
 Their power and authority during negotiations also
should be clearly neg spelt out.
 Other preparations include fixing up time for
negotiations, period of negotiations, etc.
 But once the parties enter into negotiations the period
of negotiations may very depending upon
circumstances.

21. Negotiation of agreement.
 Negotiation usually begins with the beg union
delivering to management a long list of demands.
 By initiating union mana with extreme demands, the
union creates significant room for trade off in list the
later stages of the negotiation.

22. Negotiation of agreement.
 It also disguises the union real position, leaving it to
management to try to figure out which demands are
adamantly sought, which are moderately sought and
which the union is prepared to quickly abandon.
 Usually there will be a chief negotiator who is from the
management side. S/he directs and presides the process.

23. Negotiation of agreement.
 The chief negotiator presents Each the problem, its
intensity and nature and the views of both the parties.
 Then s/he allows the representatives of both parties to
present their views.
 During negotiations the representatives should be
attentive as to find out what the other party is arguing
for.

24. Negotiation of agreement.
 The representatives tend to think about what counter
arguments they can present and how to say 'no'
effectively.
 While the other party is presenting its own views. This
is a major Obstacle in the bargaining process.
 Each representative should be attentive o the other
party's arguments and needs as well and thereby try to
reach a solution which is acceptable to both the parties.

25. Implementation of the contract.
 Once a contract is agreed upon and ratified, it then
must be implemented.
 The agreement can be made on a temporary basis. In
such case before its expiry both parties consult each
other and can terminate or renew the agreement
depending upon the circumstances.
 The upon may always demand the renewal of such
agreements which benefit workers before their expiry.

26. Flexibility in bargaining.
Constructive attitude.
Ability of union leaders.
Non-involvement of
political parties.
Pre-requisites for Success in Collective Bargaining
Success in collective bargaining depends upon
the fulfillment of the Following preconditions:
Bargaining attitude of
management.
Bargaining procedure.
Bargaining role of the lawyers.
Role of observers.

27. Flexibility in bargaining:
 Collective bargaining is a flexible, give-and-take group
process.
 It depends on careful preparation and skillful
manouvering.
 It does not do good if management takes extreme stand
with rigid attitude.

28. Constructive attitude:
 Prudent employers try to build constructive
attitude so that parties can discuss mutual
problems and attempt to obtain agreement.

29. Ability of union leaders:
 Union leaders should also be trained and exposed to
the realities.
 Stability of the leader and success in the next election
depends on their ability, in exacting/extracting more
benefits for the workers who constitute their vote box.

30. Non-involvement of political parties:
 Militancy can be reduced if political parties do not take
side with any party.

31. Bargaining attitude of management:
 However, management's bargaining attitude is
important.
 No group should proceed with defensive attitude and
challenging mentality.
 Review of the bargaining processes of the past has
indicated that attitude of cooperation and concession is a
powerful positive force, although management being
more powerful, intelligent and articulate.

32. Bargaining procedure:
 Bargaining procedures have Significant influence on
bargaining sessions and so the agreement should be
drafted carefully.
 It should be clear and readily understandable to the
parties.

33. Bargaining role of the lawyers:
 Bargaining role of the lawyers in the bargaining table
has got to be assessed carefully.
 The lawyer employed by the management has to
consider whether he is a representative of the employer
or acting as an advisor.
 The two roles are different.
This is also true for union lawyer.

34. Role of observers:
 At times, non-negotiating observers remain present
during the bargaining session.
 Management and union both may allow observers to
keep them informed.
 Union observers are watchdogs who assure that union
leaders do not "sell out" to management

35. Thank You