Chapter 23


Published on


Published in: Career, Business

Chapter 23

  2. 2. ANNOTATED OUTLINE 23-2 INTRODUCTION The basic objective of collective bargaining is to arrive at an agreement on wages and other conditions of employment. Both labour and management must reconcile their differences voluntarily through negotiations, yielding some concessions and making sacrifices in the process. Some of the important features of collective bargaining may be listed thus: Collective Bargaining
  3. 3. 23-3 <ul><li>Collective </li></ul><ul><li>Strength </li></ul><ul><li>Flexible </li></ul><ul><li>Voluntary </li></ul><ul><li>Continuous </li></ul><ul><li>Dynamic </li></ul><ul><li>Power relationship </li></ul><ul><li>Representation </li></ul><ul><li>Bipartite process </li></ul><ul><li>complex </li></ul>Collective Bargaining Important features of Collective Bargaining
  4. 4. 23-4 <ul><li>resolve differences over knotty issues </li></ul><ul><li>protect the interests of workers through collective action </li></ul><ul><li>carry out negotiations voluntarily, without interference from a third party </li></ul><ul><li>arrive at an amicable agreement through a process of give and take </li></ul>Objectives of collective bargaining Collective Bargaining
  5. 5. 23-5 The substance of bargaining 1. Wages and working conditions 2. Work norms 3. Incentive payments 4. Job security 5. Changes in technology 6. Work tools, techniques and practices 7. Staff transfers and promotions 8. Grievances 9. Disciplinary matters 10. Health and safety 11. Insurance and benefits 12. Union recognition 13. Union activities/responsibilities 14. Management rights Collective Bargaining
  6. 6. 23-6 Types of Bargaining <ul><li>Over the years, four distinctive types of bargaining have evolved, namely; </li></ul><ul><li>Conjunctive or distributive bargaining: where both parties try to maximise their respective gains </li></ul><ul><li>Cooperative bargaining: where both parties yield ground to the other to get ahead and resolve knotty issues </li></ul><ul><li>Productivity bargaining: where the wages and benefits of workers are linked to productivity </li></ul><ul><li>Composite bargaining: where labour bargains not only for wages but goes a step further and demands equity in other matters relating to work norms, employment levels, etc in return for agreeing to the tight productivity norms set by management. </li></ul>Collective Bargaining
  7. 7. 23-7 The Process of Collective Bargaining Steps in the collective bargaining process Collective Bargaining <ul><li>Identification of the problem </li></ul><ul><li>Collection of data </li></ul><ul><li>Selection of negotiators </li></ul><ul><li>Climate of negotiations </li></ul><ul><li>Bargaining strategy and tactics </li></ul><ul><ul><ul><li>Conflict based </li></ul></ul></ul><ul><ul><ul><li>Armed truce </li></ul></ul></ul><ul><ul><ul><li>Power bargaining </li></ul></ul></ul><ul><ul><ul><li>Accommodation </li></ul></ul></ul><ul><ul><ul><li>Cooperation </li></ul></ul></ul><ul><li>Formalising the agreement </li></ul><ul><li>Enforcing the agreement </li></ul>
  8. 8. 23-8 Bargaining limits Reed Richardson has the following advice for bargainers: 1. Be sure to set clear objectives for every bargaining item, and be sure you understand the reason for each. 2. Do not hurry. 3. When in doubt, caucus with your associates. 4. Be well prepared with firm data supporting your position. 5. Always strive to keep some flexibility in your position. 6. Don't concern yourself just with what the other party says and does; find out why. 7. Respect the importance for face saving for the other party. 8. Be alert to the real intentions of the other party-not only for goals, but also for priorities. 9. Be a good listener. 10. Build a reputation for being fair but firm. 11. Learn to control your emotions and use them as a tool. 12. As you make each bargaining move, be sure you know its relationship to all other moves. 13. Measure each move against your objectives. 14. Pay close attention to the wording of every clause negotiated; they are often a source of grievances. 15. Remember that collective bargaining is a compromise process; There is no such thing as having all the pie. 16. Try to understand people and their personalities. 17. Consider the impact of present negotiations on those in future years. Collective Bargaining
  9. 9. 23-9 Collective Bargaining Content of a Labour Agreement Purpose and intent of the parties Vacations Scope of the agreement Seniority Management Safety and health Responsibilities of the parties Military service Union membership and checkoff Severance allowance Adjustment of grievance Savings and vacation plan Arbitration Supplemental benefits program Suspension and discharge cases Prior agreements Rates of pay Termination date Hours of work Overtime and holidays
  10. 10. 23-10 <ul><li>Unions occupying centre stage only after 1900 </li></ul><ul><li>Mostly legal machinery used to resolve disputes </li></ul><ul><li>After independence, collective bargaining gained ground </li></ul><ul><li>Productivity bargaining is increasingly popular in recent times due to global competition, customer-focused manufacturing and marketing etc. </li></ul><ul><li>Factors inhibiting collective bargaining </li></ul><ul><ul><li>Employer's reluctance </li></ul></ul><ul><ul><li>Weak unions </li></ul></ul><ul><ul><li>Inappropriate legislative framework </li></ul></ul>Collective Bargaining In India Collective Bargaining
  11. 11. 23-11 Conditions Essential For Collective Bargaining Collective Bargaining To strengthen collective bargaining, both parties must carry out negotiations in an atmosphere of mutual trust and faith, observing certain essential things: <ul><li>Unanimity among workers </li></ul><ul><li>Strength of both parties </li></ul><ul><ul><li>positive attitude </li></ul></ul><ul><ul><li>willing to make some sacrifices </li></ul></ul><ul><ul><li>prepared to implement previously agreed things strictly </li></ul></ul><ul><li>Representative authority </li></ul><ul><ul><li>Representatives must understand the problems of both parties </li></ul></ul><ul><ul><li>Willing to discuss everything and not necessarily something related to wages and monetary benefits </li></ul></ul><ul><ul><li>Parties having respect toward each other </li></ul></ul><ul><ul><li>Carry out negotiations free from unfair practices </li></ul></ul>
  12. 12. 23-12 Collective Bargaining Recommendations of National Commission on Labour, 1969 <ul><li>Minimum intervention from government </li></ul><ul><li>Strengthening the trade unions </li></ul><ul><li>Appropriate legal provisions governing </li></ul><ul><ul><li>Compulsory recognition of unions </li></ul></ul><ul><ul><li>Prohibition and penalisation of unfair labour practices </li></ul></ul><ul><ul><li>Bargaining in good faith by both parties </li></ul></ul><ul><ul><li>Conferring legal validity and legitimacy on collective agreements </li></ul></ul><ul><li>Intensification of workers' education </li></ul><ul><li>One union for one plant being popularised </li></ul><ul><li>Encouraging bipartite consultations and negotiations </li></ul>