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Collective Bargaining &
Negotiation
MEANING;-
Collective bargaining is a process between employers
and employees to reach an agreement regarding the rights and
duties of people at work.
Collective bargaining aims to reach a collective
agreement which usually sets out issues such as employees
pay, working hours, training, health and safety, and rights to
participate in workplace or company affairs.
DEFINITION:-
Collective bargaining is an agreement between a single
employer or an association of employers on the one hand and
a labour union on the other, which regulates the terms and
conditions of employment. (Tudwig Teller)
OBJECTIVES OF COLLECTIVE BARGAINING
 Collective bargaining has benefits not only for the present, but also
for the future.
The objectives of collective bargaining are:
 1. To provide an opportunity to the workers, to voice their problems
on issues related to employment.
 2. To facilitate reaching a solution that is acceptable to all the parties
involves.
 3. To resolve all conflicts and disputes in a mutually agreeable
manner.
 4. To prevent any conflict/disputes in the future through mutually
signed contracts.
 5. To develop a conductive atmosphere to foster good organizations
relations.
 6. To provide stable and peaceful organization (hospital) relations.
 7. To enhance the productivity of the organization by preventing
strikes lock – out ect.
CHARACTERSTICS OF COLLECTIVE BARGAINING
 It is a group process, wherein one group, representing the employers, and the
other, representing the employees, sit together to negotiate terms of
employment.
 2. Negotiations form an important aspect of the process of collective bargaining
i.e., there is considerable scope for discussion, compromise or mutual give and
take in collective bargaining.
 3. Collective bargaining is a formalized process by which employers and
independent trade unions negotiate terms and conditions of employment and the
ways in which certain employment-related issues are to be regulated at national,
organizational and workplace levels
 Collective bargaining is a process in the sense that it consists of a number of steps. It
begins with the presentation of the charter of demands and ends with reaching an
agreement, which would serve as the basic law governing labor management relations
over a period of time in an enterprise. Moreover, it is flexible process and not fixed or
static. Mutual trust and understanding serve as the by products of harmonious
relations between the two parties.
 5. It a bipartite process. This means there are always two parties involved in the
process of collective bargaining. The negotiations generally take place between the
employees and the management. It is a form of participation.
 6. Collective bargaining is a complementary process i.e. each party needs something
that the other party has; labor can increase productivity and management can pay
better for their efforts.
 7. Collective bargaining tends to improve the relations between
workers and the union on the one hand and the employer on the
other.
 8. Collective Bargaining is continuous process. It enables industrial
democracy to be effective. It uses cooperation and consensus for
settling disputes rather than conflict and confrontation.
 9. Collective bargaining takes into account day to day changes,
policies, potentialities, capacities and interests
Types Of Bargaining
 Conjunctive/Distributive
Bargaining - zero-sum
game; win – lose
 Co-operative Bargaining -
more open to coming down
from their high horses; win –
win.
Principles of collective
bargaining
 For union and management:-
-CB should be an education as well as a bargaining processes.
-There must be mutual confidence and good faith and a desire to
make collective bargaining effective in practices.
-There should be an honest and responsible leadership for only this
kind of leadership will make collective bargaining effective and
meaningful
For the management
 Management must develop and consistently follow a realistic
labour policy which should be accepted and carried out by its
representatives.
 Management must grant recognition to the trade union without
any reservations and accept it as a constructive force in the
organization
 Management should not wait for the trade union to bring
employee grievance to its notice but should rather create the
condition employee can approach
 Management should deal only with one trade union in the
organization
For trade union :-
- Trade union leaders should be appreciate the economic
implication of collective bargaining for their demands are
generally met from the income and resources of the organisation
- Trade union should resort to strikes only when all the other
methods of the settlement of a dispute have failed
-trade union leaders should not imagine that their only
function is to secure higher wages ,shorter hours of work and better
working conditions for their members
National labour relations act
 It is here declared to be the policy of the united states to eliminate
the causes of certain substantial obstructions to the free flow of
commerce by encouraging the practice and procedure of collective
bargainning….
 For the purpose of negotiating the terms and conditions of
workers employment or the other mutual aid or protection .”

Legal frame work for collective bargaining
Employee have the right to :-
 Form to join or to assist a labour organisation of their
choice ,
 Bargain collectively through that labour organisation
 Engage in concerted activities an mutual aid
rafrain(avoid doing) from any of the activities .
Protects employees by defining and prohibiting unfair
labour organisation
 Discriminating against employees for engaging in or
refraining from union activities.
 Refusing to bargain with the union that is the lawful
representative of its employees.
COLLECTIVE BARGAINING PROCESS
Collective bargaining process comprises of five core
steps:
 1.Prepare: This phase involves composition of a negotiation team. The
negotiation team should consist of representatives of both the parties
with adequate knowledge and skills for negotiation.
 2. Discuss, the parties decide the ground rules that will guide the
negotiations.
 Propose:, this phase could be described as brainstorming‘. The exchange
of messages takes place and opinion of both the parties is sought.
 4. Bargain:. This stage comprises the time when what ifs‘ and supposals‘
are set forth and the drafting of agreements take place.
 5. Settlement:. This stage is described as consisting of effective joint
implementation of the agreement through shared visions, strategic
planning and negotiated change.
Collective Bargaining Agreement
 Written document regarding working
conditions and terms of employment
 Legally, a CBA binds only the parties
to it.
 In India, there are three types of
agreements, namely
◦ voluntary agreements,
◦ settlements, and
◦ Consent awards.
 procedural agreements or
substantive agreements
Contents of Collective Bargaining
Agreement
 The date of commencement of the
agreement
 Its duration
 A definition of terms
 The procedure for settling disputes
regarding interpretation, as well as other
disputes.
 The consequences in the event of
breaches of the agreement
 As regards wages, exactly how
conversion of employees' wages to the
new scales is to be effected.
Conditions For Successful Collective
Bargaining
 Trade Union Recognition
 Observance of Agreements
 Support of Labour Administration
Authorities
 Good Faith
 Proper Internal Communication
Defining Negotiation
 Negotiation is getting
what you want from the
other person -- no matter
what.
 We all know how bargaining
works. You ask for a lot, and
wind up settling for something
in the middle.
Defining Negotiation
 Negotiation is an attempted
trade-off between getting
what you want and getting
along with people.
 Negotiation is a discussion between
people, with the goal of reaching an
agreement on issues, and separating
the parties when neither party has the
power to get its way.
IMPORTANCE OF NEGOTIATION
Certainty
The aim of contract negotiation is firstly to achieve certainty, to record what is
being supplied, when, in what quantities and to what standard, and what are the
consequences of delay or failure to meet the agreed requirements.
The best deal
Seeking clarity does not conflict with the view that negotiations should achieve
the best deal, it merely points out that both parties to a negotiation have to
understand what it is that they have agreed to.
Achievement of an Organization's objectives
The goal of every negotiation must be to achieve a result which, even if it
falls short of the original objective, can be considered a satisfactory
advancement towards it.
Create of a long-term relationship between the parties
Whilst this is not always possible, and some cultures, such as the
Japanese, place more emphasis on this aspect of negotiation, this is
increasingly important as companies build networks of alliance partners.
TheNegotiationProcess
1
3
2
5
4
1.Préparation and Planning
Prépare You + your team
Know the other party
Know the Picture
Identify the objectives
Priortize the objectives
Préparation and Planning
Create options
Select fair standards
Examine Alternatives
Select your strategy , tactics and counter
tactics
Develop a solid & approved team
Negotiation plan
2.Définition of Ground Rules
Introduction
Détermine who has authority
Rules and procedures
Prepare the facility
Use and agenda
Create a positive working climate
Exchange issues
3.Clarification and Justification
Specify what you want
Problem identification
Put forward the solutions
Exchange information
Focus on objectives
Listen carefully and question thoroughly
Seek compromise: get win/win if possible
Remember optimum and fallback positions
4.Bargaining and Problem Solving
Ask for what you want:modify if you need
Don`t concede without exchanging
Decide on areas of possible flexibility
Use stratagies ,tactics and countertactics
Make counter offers
Know when to walk away
Bargaining strategies
Distributive Bargaining:
Negotiation that seeks to divide up a fixed
amount of resources : a win loose situation
Integrative Bargaining :
Negotiation that seeks one or more settlements
that can create a win win sloution.
5.Closure and Implementation
Statement of agreement
Document the agreement
Prepare Negotiation results and summary
Close the remaining gaps
Reach at a tentative agreement
Implement the deal
Monitor the implemantation
Issues in Negotiation
 The role of personality traits in negotiation :
Traits do not appear to have a significantly direct affect
on the outcomes of either bargaining or negotiating
process
 Gender Differences in Negotiations
 Women negotiate no differently from men, although
men apparently negotiate slightly better outcomes.
 Men and women with similar power bases use the
same negotiating styles.
 Women’s attitudes toward negotiation and their
success as negotiators are less favorable than
references
http://www.uvm.edu/extension/community/nnco/cd/unit4a.
htm#4a
http://www.teachingenglish.org.uk/lesson-
plans/negotiations-1-building-relationships
http://www.bms.co.in/explain-different-types-of-
negotiation-strategies/
http://www.psych-it.com.au/theses/article.asp?page=6
http://www.negotiation.biz/negotiation_objectives.htm
Collectivebarganing 120914004824-phpapp02

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Collectivebarganing 120914004824-phpapp02

  • 2. MEANING;- Collective bargaining is a process between employers and employees to reach an agreement regarding the rights and duties of people at work. Collective bargaining aims to reach a collective agreement which usually sets out issues such as employees pay, working hours, training, health and safety, and rights to participate in workplace or company affairs. DEFINITION:- Collective bargaining is an agreement between a single employer or an association of employers on the one hand and a labour union on the other, which regulates the terms and conditions of employment. (Tudwig Teller)
  • 3. OBJECTIVES OF COLLECTIVE BARGAINING  Collective bargaining has benefits not only for the present, but also for the future. The objectives of collective bargaining are:  1. To provide an opportunity to the workers, to voice their problems on issues related to employment.  2. To facilitate reaching a solution that is acceptable to all the parties involves.  3. To resolve all conflicts and disputes in a mutually agreeable manner.  4. To prevent any conflict/disputes in the future through mutually signed contracts.  5. To develop a conductive atmosphere to foster good organizations relations.  6. To provide stable and peaceful organization (hospital) relations.  7. To enhance the productivity of the organization by preventing strikes lock – out ect.
  • 4. CHARACTERSTICS OF COLLECTIVE BARGAINING  It is a group process, wherein one group, representing the employers, and the other, representing the employees, sit together to negotiate terms of employment.  2. Negotiations form an important aspect of the process of collective bargaining i.e., there is considerable scope for discussion, compromise or mutual give and take in collective bargaining.  3. Collective bargaining is a formalized process by which employers and independent trade unions negotiate terms and conditions of employment and the ways in which certain employment-related issues are to be regulated at national, organizational and workplace levels
  • 5.  Collective bargaining is a process in the sense that it consists of a number of steps. It begins with the presentation of the charter of demands and ends with reaching an agreement, which would serve as the basic law governing labor management relations over a period of time in an enterprise. Moreover, it is flexible process and not fixed or static. Mutual trust and understanding serve as the by products of harmonious relations between the two parties.  5. It a bipartite process. This means there are always two parties involved in the process of collective bargaining. The negotiations generally take place between the employees and the management. It is a form of participation.  6. Collective bargaining is a complementary process i.e. each party needs something that the other party has; labor can increase productivity and management can pay better for their efforts.
  • 6.  7. Collective bargaining tends to improve the relations between workers and the union on the one hand and the employer on the other.  8. Collective Bargaining is continuous process. It enables industrial democracy to be effective. It uses cooperation and consensus for settling disputes rather than conflict and confrontation.  9. Collective bargaining takes into account day to day changes, policies, potentialities, capacities and interests
  • 7. Types Of Bargaining  Conjunctive/Distributive Bargaining - zero-sum game; win – lose  Co-operative Bargaining - more open to coming down from their high horses; win – win.
  • 8. Principles of collective bargaining  For union and management:- -CB should be an education as well as a bargaining processes. -There must be mutual confidence and good faith and a desire to make collective bargaining effective in practices. -There should be an honest and responsible leadership for only this kind of leadership will make collective bargaining effective and meaningful
  • 9. For the management  Management must develop and consistently follow a realistic labour policy which should be accepted and carried out by its representatives.  Management must grant recognition to the trade union without any reservations and accept it as a constructive force in the organization  Management should not wait for the trade union to bring employee grievance to its notice but should rather create the condition employee can approach  Management should deal only with one trade union in the organization
  • 10. For trade union :- - Trade union leaders should be appreciate the economic implication of collective bargaining for their demands are generally met from the income and resources of the organisation - Trade union should resort to strikes only when all the other methods of the settlement of a dispute have failed -trade union leaders should not imagine that their only function is to secure higher wages ,shorter hours of work and better working conditions for their members
  • 11. National labour relations act  It is here declared to be the policy of the united states to eliminate the causes of certain substantial obstructions to the free flow of commerce by encouraging the practice and procedure of collective bargainning….  For the purpose of negotiating the terms and conditions of workers employment or the other mutual aid or protection .” 
  • 12. Legal frame work for collective bargaining Employee have the right to :-  Form to join or to assist a labour organisation of their choice ,  Bargain collectively through that labour organisation  Engage in concerted activities an mutual aid rafrain(avoid doing) from any of the activities . Protects employees by defining and prohibiting unfair labour organisation  Discriminating against employees for engaging in or refraining from union activities.  Refusing to bargain with the union that is the lawful representative of its employees.
  • 14. Collective bargaining process comprises of five core steps:  1.Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation.  2. Discuss, the parties decide the ground rules that will guide the negotiations.
  • 15.  Propose:, this phase could be described as brainstorming‘. The exchange of messages takes place and opinion of both the parties is sought.  4. Bargain:. This stage comprises the time when what ifs‘ and supposals‘ are set forth and the drafting of agreements take place.  5. Settlement:. This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.
  • 16. Collective Bargaining Agreement  Written document regarding working conditions and terms of employment  Legally, a CBA binds only the parties to it.  In India, there are three types of agreements, namely ◦ voluntary agreements, ◦ settlements, and ◦ Consent awards.  procedural agreements or substantive agreements
  • 17. Contents of Collective Bargaining Agreement  The date of commencement of the agreement  Its duration  A definition of terms  The procedure for settling disputes regarding interpretation, as well as other disputes.  The consequences in the event of breaches of the agreement  As regards wages, exactly how conversion of employees' wages to the new scales is to be effected.
  • 18. Conditions For Successful Collective Bargaining  Trade Union Recognition  Observance of Agreements  Support of Labour Administration Authorities  Good Faith  Proper Internal Communication
  • 19. Defining Negotiation  Negotiation is getting what you want from the other person -- no matter what.  We all know how bargaining works. You ask for a lot, and wind up settling for something in the middle.
  • 20. Defining Negotiation  Negotiation is an attempted trade-off between getting what you want and getting along with people.  Negotiation is a discussion between people, with the goal of reaching an agreement on issues, and separating the parties when neither party has the power to get its way.
  • 21. IMPORTANCE OF NEGOTIATION Certainty The aim of contract negotiation is firstly to achieve certainty, to record what is being supplied, when, in what quantities and to what standard, and what are the consequences of delay or failure to meet the agreed requirements. The best deal Seeking clarity does not conflict with the view that negotiations should achieve the best deal, it merely points out that both parties to a negotiation have to understand what it is that they have agreed to. Achievement of an Organization's objectives The goal of every negotiation must be to achieve a result which, even if it falls short of the original objective, can be considered a satisfactory advancement towards it. Create of a long-term relationship between the parties Whilst this is not always possible, and some cultures, such as the Japanese, place more emphasis on this aspect of negotiation, this is increasingly important as companies build networks of alliance partners.
  • 23. 1.Préparation and Planning Prépare You + your team Know the other party Know the Picture Identify the objectives Priortize the objectives
  • 24. Préparation and Planning Create options Select fair standards Examine Alternatives Select your strategy , tactics and counter tactics Develop a solid & approved team Negotiation plan
  • 25. 2.Définition of Ground Rules Introduction Détermine who has authority Rules and procedures Prepare the facility Use and agenda Create a positive working climate Exchange issues
  • 26. 3.Clarification and Justification Specify what you want Problem identification Put forward the solutions Exchange information Focus on objectives Listen carefully and question thoroughly Seek compromise: get win/win if possible Remember optimum and fallback positions
  • 27. 4.Bargaining and Problem Solving Ask for what you want:modify if you need Don`t concede without exchanging Decide on areas of possible flexibility Use stratagies ,tactics and countertactics Make counter offers Know when to walk away
  • 28. Bargaining strategies Distributive Bargaining: Negotiation that seeks to divide up a fixed amount of resources : a win loose situation Integrative Bargaining : Negotiation that seeks one or more settlements that can create a win win sloution.
  • 29. 5.Closure and Implementation Statement of agreement Document the agreement Prepare Negotiation results and summary Close the remaining gaps Reach at a tentative agreement Implement the deal Monitor the implemantation
  • 30. Issues in Negotiation  The role of personality traits in negotiation : Traits do not appear to have a significantly direct affect on the outcomes of either bargaining or negotiating process  Gender Differences in Negotiations  Women negotiate no differently from men, although men apparently negotiate slightly better outcomes.  Men and women with similar power bases use the same negotiating styles.  Women’s attitudes toward negotiation and their success as negotiators are less favorable than