Collective bargaining Process of negotiating between management workers
Collective bargaining
�Process of negotiating between management & workers represented by their representatives for determining mutually agreed terms & conditions of work which protect interest of both workers & the management. �Collective…both employer & employee act collectively & not individually in arriving at an agreement �Bargaining … process of reaching an agreement involves proposals & counter proposals, offers & counter offers.
Objectives �Maintain cordial & harmonious relations �Protect both interests �Government interventions keep at bay �Promote industrial democracy
Importance �Better understanding �Promotes industrial democracy �Benefits both �Adjustable to changing conditions �Facilitates speedy implementation of decisions arrived at collective negotiation.
Types of bargaining �Distributive bargaining �Co-operative bargaining �Productivity bargaining �Composite bargaining
Bargaining process �Pre-negotiation �Negotiators �Negotiation �Agreement or Contract �Implementation of Agreement
Prenegotiation �Preparation for negotiation �Preparation by management �Preparation by labor union
Negotiators Negotiation • Company side. . one or number of persons…IR officer, head of a area, company lawyer. • Union side. . team approach. . team. . business agents , shop stewards , president of local union • Both parties come to negotiation table at a time & place for this purpose. • Negotiation starts by union representatives delivering extravagant list of demands. • Initial response of management extreme to that of union…offers little more than previous. • Compromise. . agreement…if no agreement. . deadlock or bargaining impasse
Agreement or contract �After arriving at informal agreement through overcoming bargaining impasse, it is written. �Consists of terms & conditions of agreement, date from which it comes into effect, duration it will remain in operation & names of signatories of agreement. �Agreement so prepared sent to laborers & management for its ratification & approval. �Agreement needs to be duly ratified because of legal provisions.
Agreement or contract �According to sec 18(1) of industrial; disputes act 1947 “an agreement shall be binding only on the parties to the agreement. ” �Labor contract or “union contract” or “labormanagement agreement”. �Agreement stipulates in formal terms nature of relationship between labor & management for ensuing period of time as agreed in negotiation.
Implementation of agreement �Way ratified & approved agreement will be implemented is indicated in the agreement itself. �Must be implemented with full magnanimity in terms of its letter & spirit by both parties from date of operation as mentioned in the agreement. �Duty of HR department to ensure proper & full implementation of all provisions given in the agreement. �Agreement also involves. . procedure for handling grievances arisen out of CB.
Bargaining impasse �When negotiations break down & labor a& management have been unable to reach an agreement. � 3 options when this occurs: �Ask 3 rd party(mediator or arbitrator) to resolve �Labor union may resort to work stoppage or strikes �Employer may show force to suppress union demands
3 types of 3 rd party interventions Mediation • Neutral 3 rd party acts as mediator • Holds meetings with each party • Mediator does not have the rights to impose decisions • Must have confidence of both the parties Arbitration • Arbitrator empowered to determine & dictate terms of negotiation. • Guarantee a solution to an impasse • Binding arbitration: both parties bound Fact finding • In certain situations of emergency type a fact-finder is appointed to resolve impasse. • Neutral party • Commonly used in public sector
Union power tactics �Strikes : concerted & temporary withdrawal of labor from work. �Economic strike �Recognition strike �Sympathy strike �Wildcat strike �Sit- down strike
Union power tactics �Picketing: one of the activities occurring during a strike. Picket is a line of strikers who patrol employers place of business, helps keep a plant or building site closed during a strike. �Make society know about dispute �Discouraging others to refrain from doing business with struck employer.
Union power tactics �Boycott : combined refusal by employees & other interested parties to buy or use employers products. �Primary boycott: involves only those parties directly involved in a dispute �Union exerts pressure on members to avoid patronizing an employer, even going as far as to levy fines against members that do. �Secondary boycott: involves 3 rd party not directly involved in dispute. ex: electricians union can persuade retailers not to buy employers product.
Employer power tactics �Lock out �Non-union workers �Replacement employees �Bankruptcy -
Employer power tactics Lock out • Refusal by employer to provide opportunities to employees to work. • Employees locked out & prohibited from doing their jobs, stop getting paid. • Limited use in resolving bargaining impasse. Non-union workers • Let non-union employees such as supervisors perform duties of striking employees. • May be successful in highly automated or routine where little training is required.
Employer power tactics Replacement employees Bankruptcy • Hire replacement employees for strikers. • Workers hesitant to accept short-term employment. • Hesitate to cross picket lines to be ridiculed by picketers. Sure it impair labor-management relations & lower workers morale • In extreme case employer can go o the extent to cancel a union contract & declare oneself , under the provisions of Bankruptcy Law as bankrupt to get rid of striking workers.
Conditions for effective collective bargaining �Favorable political & social climate �Trade unions �Unanimity among workers �Strength of both parties �Problem solving attitude �Availability of data �Continuous dialogue
Factors inhibiting collective bargaining �Employers reluctance �Weak unions �Inadequate interventions
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