Collective bargaining Collective bargaining

1. Collective Bargaining

2. Collective Bargaining
 According to Dale Yoder, “Collective bargaining is the term used to describe a
situation in which the essential conditions of employment are determined by
bargaining process undertaken by representatives of a group of workers on the one
hand and of one or more employers on the other.”
 In the words of Flippo, “Collective bargaining is a process in which the
representatives of a labour organisation and the representatives of business
organisation meet and attempt to negotiate a contract or agreement, which specifies
the nature of employee-employer-union relationship.”
 Processinvolving discussionsand negotiations
 ‘collective’ – group
 'bargaining' – proposalsand counter proposals
 to reconciletheir conflicting interests
 isaflexibleapproach

3. Types Of Bargaining
Conjunctive/DistributiveBargaining
; win – lose
Co-operativeBargaining - more
open to coming down from their
high horses; win – win.

4. Typesof CollectiveBargaining
Conjunctive / Distributive Bargaining
Distributivebargaining isthemost common typeof bargaining &
involveszero-sum negotiations, in other words, one side wins and the
otherloses.
Both partiestry to maximizetheir respectivegains. They try to settle
economic issuessuch aswages, benefits, bonus, etc.
For Example, Unionsnegotiatefor maximum wages& themanagement
wantsto yield aslittleaspossible– whilegetting thingsdonethrough
workers.

5. In distributivebargaining, unionsand management haveinitial
offersor demands, target points(e.g.: desired wagelevel),
resistancepoints(e.g.: unacceptablewagelevels) & settlement
ranges(e.g.: acceptablewagelevel). Another namefor thistypeof
bargaining isconjunctivebargaining.

6. Cooperative /Integrative Bargaining
Integrativebargaining issimilar to problem solving sessionsin which both
sidesaretrying to reach amutually beneficial alternative, i.e. a win-win
situation.
Both theemployer & theunion try to resolvetheconflict to thebenefit of both
parties. Both sidesshareinformation about their interestsand concernsand
they createalist of possiblesolutionsto meet everyone’sneeds.
For Example, when companiesarehit by recession, they cannot offer thekind of wages
and benefitsdemanded by workers. At thesametimethey cannot survivewithout the
latter’ssupport. Both partiesrealizetheimportanceof surviving in such difficult times
and arewilling to negotiatethetermsof employment in aflexibleway.

7. Collective Bargaining Process
Prepare
Discuss
Propose
Bargain
Settlement

8. Contents of Collective Bargaining Agreement
 Thedateof commencement
of theagreement
 Itsduration
 A definition of terms
 Theprocedurefor settling
disputesregarding
interpretation, aswell as
other disputes.
 Theconsequencesin the
event of breachesof the
agreement
 Asregardswages, exactly
how conversion of
employees' wagesto the
new scalesisto beeffected.

9. Conditions For Successful Collective
Bargaining
Trade Union Recognition
Observance of Agreements
Support of Labour Administration
Authorities
Good Faith
Proper Internal Communication

10. Essentials of Collective Bargaining
CB essentially meansnegotiationsbetween thelabour and management
CB should just not stop at thenegotiationsbut also go on to be
implemented; otherwisetheentireprocessof CB will berendered futile.
Thepartieshaveto adopt aflexibleattitudethroughout theprocessof
bargaining
It isbased on giveand takeapproach and takeor leaveapproach.
Onceboth thepartiesknow what they want, negotiationsbecomeeasier and
better.
Obviously all theabovementioned conditionsarerequired successful for
CB but themost essential among them isthe“good faith”