Collective Bargaining and Unionizing Processes

1. COLLECTIVE
BARGAINING AND
UNIONIZING
PROCESSES

2. OBJECTIVES
1. Understand the concept and nature
of collective bargaining
2. Describe advantages and
disadvantages of collective
bargaining
3. Explain the collective bargaining
characteristics

3. INTRODUCTION OF COLLECTIVE BARGAINING
The concept of collective bargaining was introduced very
late in INDIA as trade unions were found only in 20Th
century.
The concept of collective bargaining attained significance
only after 1962. The phrase collective bargaining is said to be
coined Sydney and Beatrice Webb and Great Britain. It is
made up from two words collective which means “group”
and bargaining which means “proposals and counter
proposals”. So it is a process in which the representatives of a
labor organization and the representatives of business
organization meet and attempt to negotiate a contract or
agreement, which specifies the nature of employee-
employer union relationship.

4. NATURE OF COLLECTIVE BARGAINING
 It is not equivalent to collective agreements because
collective bargaining refers to the process or means,
and collective agreements to the possible results of
bargaining.
 Collective bargaining may not always lead to a
collective agreement.
 It is a method used by trade unions to improve the
terms and conditions of employment of their members.
 Where it leads to an agreement, it modifies rather than
replaces, the individual contract of employment,
because it does not create the employer-employee
relationship.

5. ADVANTAGES OF COLLECTIVE BARGAINING
1. Can lead to high performance workplace
where labor and management jointly
engage in problem solving, addressing
issues on an equal standing.
2. Provide legally based bilateral relationship.
3. Management rights are clearly spelled out.
4. Employers and employees rights protected
by binding collective bargaining agreement.

6. DISADVANTAGES OF COLLECTIVE BARGAINING
1. Management authority and freedom are much more
restricted by negotiated rules.
2. Create significant potential for polarization between
employees and the manager.
3. Eliminates ability of management to make unilateral
changes in wages, hours, and other terms and conditions of
employment.
4. Restricts managements ability to deal directly with individual
employees.

7. CHARACTERISTICS OF COLLECTIVE BARGAINING
Collective: Collective bargaining is a two way group process
where the employers representative and employees
representatives sit together to negotiate terms of employments.
Strength: Both the parties in collective bargaining are strong
and equal.
Voluntary: Both parties come to the negotiation table
voluntarily in order to go in particular negotiation. It is based
discussion, mutual trust and understanding.
Formal: It is a formal process in which certain employment
related issues are to be regulated at National, organization and
workplace levels.

8. Flexible: It is a flexible and continuous
process and not fixed or static.
Improvement: It is a method to improve the
employer-employees relation in organization
and resolve management and employees
conflicts
Dynamic: Collective bargaining is continuous
and begins with agreement, the
implementation of agreement and further
negotiations.

9. TYPES OF COLLECTIVE BARGAINING
CONJUCTIVE OR DISTRIBUTIVE BARGAINING:
Conjunctive bargaining is the most common type of
bargaining and involves zero-sum negotiations, in other
words, one side wins and other loses. Both parties try to
maximize their respective gains. They try to settle
economic issues such as wages, benefits, and bonuses.
COOPERATIVE/INTEGRATIVE BARGAINING: Integrative
bargaining is similar to problem solving sessions in
which both sides are trying to reach a mutually
beneficial alternative in other words win to win situation.

10. PRODUCTIVITY BARGAINING: has been described as
“an agreement in which advantages of one kind or
another, such as higher wages or increased leisure,
are given to workers in return for agreement on their
part to accept changes in working practices.
COMPOSITE BARGAINING: workers believed that
productivity bargaining agreements increased their
workloads. Rationalization, introduce of new
technology, tight productivity norms have added to
this burden and made the life of a worker some what
uneasy.

11. Issues of collective bargaining
1. Wages and working conditions
2. Work norms
3. Incentives payments
4. Job security
5. Work tools, techniques and practices
6. Staff transfer and promotions
7. Disciplinary matters
8. Health and safety
9. Insurances and benefits
10. Unions activities/responsibilities
11. Management rights

12. EFFECTIVE BARGAINING
 Be a good listener.
 Build a reputation for being fair but firm.
 Learn to control your emotions and use them as a tool.
 As you each bargaining move, be sure you know its relationship
to all other moves.
 Measure each move against your objectives.
 Pay close attention to the wording of every clause negotiated;
they are often a source of grievances.
 Try to understand people and their personalities.
 Consider the impact of present negotiations on those in future
years.

13. UNIONIZING
Is an organization of workers
acting collectively, seeking to
promote and protect its mutual
interest through collective
bargaining.

14. Why Employees Join Unions
1. Higher wages and benefits: The power and strength of numbers
sometimes help unions obtain higher wages and benefits
packages for their members than employees can negotiate
individually.
2. Great Job Security: Unions provide their members with a sense
of independence from managements power to arbitrarily hire,
promote, or fire.
3. Influence over work rules: Union exist workers can help
determine the conditions under which they work and have an
effective channel through which they protest conditions they
believe are unfair.

15. COMPULSORY MEMBERSHIP
 Union security arrangement: when one consider the importance of
security arrangements to unions importance related to numbers and
guaranteed income it is no wonder that such emphasis is placed on
achieving a union security arrangement that best suits their goals.
 Union shop: this arrangement stipulates that employers, while free to hire
whomever they choose, may retain only union members.
 Right to work laws: exist in twenty-two states prohibiting agreement that
require employees to join as a condition of employment. Employees right
to work states are guaranteed the right to decide for themselves whatever
they want to support the union financially.
 Agency shop: this arrangement was designed as a compromise between
the unions desire to eliminate the “free rider” and management desire to
make union membership voluntary.