COLLECTIVE BARGAINING Meaning of Collective Bargaining Collective bargaining

COLLECTIVE BARGAINING

Meaning of Collective Bargaining • • Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions. Collective agreements usually set out– – – – wage scales working hours Training health and safety Overtime grievance mechanisms rights to participate in workplace or company affairs.

Definition of Collective Bargaining According to Encyclopedia Britannica, “Collective bargaining is negotiation between an employer or group of employers and a group of work people to reach an agreement on working conditions. ” According to David and Robbins, “ The term collective bargaining typically refers to the negotiation, administration and interpretation of a written agreement between two parties that covers a specific period of time. ”

It is a technique that has been adopted by union and management to reconcile their conflicting interests. It is called collective because the employees, as a group, select representatives to meet and discuss differences with the employer The negotiations for collective bargaining require joint sessions of the representatives of labor and management.

Collective Bargaining Process Yoder identified two major phases of collective bargaining: Negotiation Phase Contract administration phase Contd.

Negotiation Phase Negotiation is a process of advancing proposals, discussing and criticizing, explaining and exploring their meaning and effects, seeking to secure their acceptance, making counter proposals or modifications for similar evaluations. This phase involves four steps. Prepare Discuss Propose Negotiation

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. In this phase both the employer’s representatives and the union examine their own situation in order to develop the issues that they believe will be most important.

Discuss The parties decide the ground rules that will guide the negotiations. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached.

Propose It involves the initial opening statements and the possible options that exist to resolve them. In a word, this phase could be described as ‘brainstorming’. The exchange of messages takes place and opinion of both the parties is sought.

Negotiation Negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when the drafting of agreements take place.

Contract Administration Phase Once the parties are thorough with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. Then the common decision should be implemented. It relates to putting the signed agreement in to effect.

Characteristics 2 - way process: It is a method of partnership of workers in management Continuous process: It is a continuous process. It establishes regular and stable relationship between the parties involved. It involves not only the negotiation of the contract, but also the administration of the contract.

Characteristics Group Action: It is a collective process. The representatives of both workers and management participate in bargaining. Flexible & Dynamic: It is a flexible and dynamic process. The parties have to adopt a flexible attitude through the process of bargaining. Complementary process: It is not a competitive process rather it is essentially a complementary process.

OBJECTIVES & SIGNIFICANCE Technique adopted by unions & management for compromising their conflicting interests. Plays a significant role in improving the labourmanagement relations and in ensuring industrial harmony. Helps in easing out many minor differences and there are many instances in which even some major disputes are set to be settled without any work stoppage or outside intervention. Provides a climate for smooth progress Ensures that managements do not take any decision on their favor

OBJECTIVES & SIGNIFICANCE Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management. Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making.

Problems of Collective Bargaining Due to the dominance of outsiders in trade unionism in the country, there is multiplicity of unions which are weak and unstable, and do not represent majority of the employees. Moreover, there are inter-union rivalries, which further hinder the process of collective bargaining between the labour and the management. Since most of the trade unions are having political affiliations, they continue to be dominated by politicians, who use the unions and their members to meet their political ends.

Problems of Collective Bargaining There has been very close association between the trade unions and political parties. As a result, trade union movement has leaned towards political orientations rather than collective bargaining.

GOALS TO BE ACHIEVED BY WORKERS Economic goals: Wages, Hours of work, The working conditions, Fringe benefits Non-Economic goals: Worker’s satisfaction with his job, protection of the Union as a growing institute (right to union)

GOALS TO BE ACHIEVED BY MANAGEMENT Control of the organization, Maintaining its ability to manage with a high degree of flexibility and efficiency of operation Control of hiring, promotion, discharge, lay off Personnel techniques of management Lay down fair rates of wages and norms of working conditions.

What are Do’s and Don’ts for Bargaining Dos Tackle differences early, to avoid it escalating. Think it through and plan how to deal with it. Refrain from offering your own opinion before understanding the full picture. Try to avoid instinctive reactions. Stay assertive.

What are Do’s and Don’ts for Bargaining Don’ts Take it personally (unless it is personal); Fight anger with anger. Jump in without assessing and understanding the problem. Run away.