1
Executive summary
This assignment is about the advantages of flexible attitude during collective bargaining
negotiation for both the union and the management. The assignment also focuses on the
disadvantages of rigid stand in a negotiation. In the discussion and analysis the two types of
collective bargaining process are described and the steps of negotiation process are shown.
Advantages of flexible attitude are discussed along with the examples and disadvantages of rigid
stand are also discussed along with examples to support the topic. The role of union and the
management are briefly discussed and a critical reflection is done to support the findings about
the topic.
2
Contents
Executive summary ................................................................................................................................... 2
1.0 Introduction ........................................................................................................................................ 4
1.1 Collective bargaining ........................................................................................................................... 4
2.0 Discussion and Analysis....................................................................................................................... 6
2.1 Centralised collective bargaining ........................................................................................................ 6
2.2 Decentralised collective bargaining .................................................................................................... 7
3.0 Negotiation process ............................................................................................................................ 8
4.0 Good faith bargaining ....................................................................................................................... 10
5.0 Benefits of flexible attitudes towards collective bargaining ............................................................. 11
5.1 Standardizing the terms and conditions through flexible attitude................................................... 13
5.2 Flexible attitude enhancing productivity and performance ............................................................. 14
6.0 Reasons for pursing Rigid Stand during the Negotiation Process..................................................... 14
7.0 Disadvantages of rigid stand during negotiation process ................................................................. 15
7.1 Other reasons for disputes ............................................................................................................... 16
8.0 Role of trade unions and management ............................................................................................ 18
9.0 Trade union and the role of management around the world........................................................... 20
10. Critical reflection ............................................................................................................................... 20
11. Conclusion and Recommendation .................................................................................................... 21
12. References ........................................................................................................................................ 23
13. Bibliography ...................................................................................................................................... 28
14. Appendices ........................................................................................................................................ 32
3
1.0 Introduction
One of the vital ways behind the achievement or failure of all organisation will be the
effectiveness of the organisations human resources (Mondy and Mondy, 2009). To be able to
improve the level of safety and comfort in an organisation, workers build a trade union, Vall
(2010) states an organisation consisting primarily of the workers who united with each other to
attain a typical objective and market their curiosity by collective actions. A trade union is
basically “an organisation of workers” where everyone comes together, to make sure success of
distinctive objectives and purposes which may represent variant types such as working
conditions. This is actually the way by which a union has the tendency to signify the union
members and contracts of labour are negotiated, also generally known as “collective-bargaining”
with the management. Collective bargaining tends to incorporate negotiations concerning the
subsequent elements and it is “binding” in between members of the union and employers.
Wilken (2008) mentioned that collective bargaining process is the procedure by which a
representative with the workers along with a representative with the employers talk about to set
up the terms and circumstances under which labour will probably be engaged in a job. This is a
procedure of cooperation in between the unions and employers. It concerns the requisites and
circumstances of the workers who are been employed, and the rights and duties of trade unions
are clarified to them (Caisley, 2007). Whereas Sims (2007) says that workers unite with each
other to build a union and choose representatives who will negotiate with the representative from
the employers’ and talk about the guidelines, working hours, wages, operating conditions and
advantages in the workplace. They deliver ahead their wants and also the employers’ negotiate
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till each event arrives to typical conditions (Sharma, 2009). The conditions on which the events
are agreed is place on the agreement and approved. This agreement is known as the collective
bargaining agreement. In many years business organisations have more compensated under
minimal interest in the direction of the affordability and social needs of their workers.
Furthermore, they accepted more authority within the circumstances of employment relations
and to be able to run profitably as being a industrial entity, a lot of the strategies by management
reflect abusing of power and authority. In accordance to Shen (2008) numerous instances of
violence for the rights of the workers, labour disputes and so on exist because of misusing the
workers. It's because of this kind of unethical manner of organisations that several labour
conflicts took place, and collective-bargaining has more and more turn out to be an observable
reality. In Japan most unions are plainly enterprise-based, organize a significant quantity of
workers inside the organisation beneath center management, and therefore are generally the only
union inside the organisation. Within the United Kingdom and Australia, typically there
complex authority in the workplace. Nevertheless, lately, there continues to be a rising pattern in
the direction of mergers, much more open unions, and much more single unionism inside the
workplace (Benson and Gospel, 2008) (Ex-1). Within the Austrian steel business collective
bargaining is carried out at sectoral level, as a part of the general metalworking settlement,
whereas within the United Kingdom steel business collective bargaining happens exclusively in
the level of person steel plants. (Beguin and Carley, 2005) (Ex-2) (Collective bargaining issues
5
2.0 Discussion and Analysis
There are two types of collective bargaining. They are centralised collective bargaining and the
employers along with a trade union negotiate a collective contract, supporting for joint
negotiations. Based on Caisley (2007) centralised collective bargain with one or even more
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unions who signify the workers of these employers. Nevertheless, it could also happen in
Ireland centralised collective bargaining via nationwide agreements have already been supported
by an prolonged time period of industrial serenity which has created noteworthy results, because
within the third-quarter of 2007, there have been no days misplaced to industrial disputes.
(Tansey, 2007) (Ex-3). Toyota nine years back signed a union agreement using the
Amalgamated Engineering and Electrical Union (AEEU) through the starting of manufacturing
at its Buraston plant in Derbyshire and also the subsequent absence of industrial unrest
encouraged the Honda to join into a contract in the year 2001 using the AEEU in their plant
located at Swindon. (Monetary Occasions, 2001) (Ex-4). In 2006, the collective agreement of the
Volkswagen Company was idle, the organisation threatened to transfer manufacturing from the
Polo model to its Bratislava plant from its plant in Pamplona, because it had formerly used the
model SEAT Ibiza. The organization did this to weaken the position of the union. (Artiles, 2006)
(Ex-5)
Howell (2007) says decentralised collective bargaining occurs when collective bargaining moves
through the macro level which is multi-employer bargaining in the direction of the micro level
7
which is enterprise-bargaining. Whereas Auer, Ernst and Berg (2006) recommend that
decentralised collective bargaining happens once the collective bargaining moves from
to higher state participation in addition to the dominance of little companies (Howell, 2007) (Ex-
6). Chile also includes a decentralised collective bargaining program. Within this nation, firms
and unions have predominant level of bargaining. Chile’s program is extremely regulated in
procedure and it permits significant autonomy from the events in immediate negotiations (Cook,
Prepare: This stage entails composition of the negotiation group. The negotiation group ought to
include representatives of the union and the management with sufficient understanding and
abilities for negotiation. Within this stage representatives of union and management inspect their
8
very own scenario to develop the problem they think will probably be most significant. The
primary thing to carry out would be to figure out whether or not there's really any cause to
negotiate at all. Circumstances and understanding of operations, manufacturing norms along with
other related circumstances are the first things to understand before negotiation. (Noe,
Discuss: In this step, the parties determine the ground rules which will provide guidelines for the
negotiations. A procedure nicely started is fifty percent carried out and this really is no less
accurate just in case of collective bargaining. An atmosphere of mutual trust and understanding
can also be produced to ensure that the collective bargaining arrangement could be reached.
Propose: This stage entails the preliminary opening statements and also the feasible choices that
exist to solve them. This stage might be explained as “brainstorming.” The proposals and
viewpoint of the union and the management are listed. (Noe, Hollenbeck, Gerhart and Wright,
2003)
Bargain: Negotiation becomes very easy if perspective to solve a problem is accepted. This step
involves time when “what ifs” and “supposals” are set forward and also draft of the agreements
Settlement: As soon as the parties are through using the bargaining procedure, a consensual
arrangement is reached upon wherein both the parties concur to come in a common term
concerning the issue or the problem. This stage is explained as consisting of efficient joint
implementation with the arrangement through shared visions, strategic preparing and negotiated
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4.0 Good faith bargaining
In accordance to Holley, Jennings and Wolters (2008), good faith bargaining basically indicates
every party should show a sincere and truthful intention to achieve a labour agreement and be
affordable within their bargaining positions, techniques and actions. Good faith represents a state
of thoughts that is hard to outline exactly. The duty to discount in good faith doesn't need a party
the other party. However for settlement to happen, an underlying presumption in collective
bargaining prevails that concessions will usually be produced by each party. (Ex-8)
The important thing components of good faith in collective bargaining as stated by Caisley
(2007) are:
The bargaining should be genuine- the duty of good faith doesn't permit a party to merely
The parties should conclude a collective agreement unless there are genuine factors
Within the support sector, labour expenses signify a significant proportion of complete expenses;
therefore matching workers’ numbers to consumer need are important. At Sätra Brunn, a well
being spa in Sweden, the management and also the nearby union have signed a collective
bargaining agreement, which entails substantially maximizing the level of versatility and
10
growing the affect that workers can exert more than their function schedules. The operating time
agreement and also the utilization of the computer-based scheduling program, has caused in
reconciling management interests and worker interests. (Ex-9) (Hammarström, 2007). Siemens
Vdo Automotive, that is component from the multinational organizations of German electronics,
signed a collective bargaining agreement with its workplace trade concerning continuous-cycle
manufacturing in a shift of three to eight hours, which incorporated a decline within the complete
weekly operating time, the recruitment of sixteen workers were taken on the basis of open-ended
contracts, along with a monthly gross expense rise. The organisation benefitted from productivity
gains whilst workers benefitted through the reduction in weekly operating time and elevated
wages. (Ex-10) (Tapia and Telljohan, 2007). GE unions thought the business’s communication
the union’s legal standing because the workers bargaining agent by trying a bypass coping with
union negotiators in the bargaining table in favor of dealing directly with all the workers. (Ex-
11) (Holley, Jennings and Wolters, 2008). In July 1985 Common Motors entered into a contract
using the United Auto Workers (UAW) setting forth the terms and conditions of the long term
motor vehicle facility, known as the Saturn Corporation. The contract consists of worker
participation and enhanced task safety; restructure the work area in exchange for financial
According to Gerhart (2007) if a company introduces flexible attitude, such changes usually
11
flexibility in the organisation. Wright (2003) stated that the terms and conditions of flexibility
will depend on such factors as the state of union management relations, the bargaining
environment and the nature of technology employed. The interactions between the parties in a
flexible attitude leads to team working, semi-skilled workers undertaking some craftwork and
vice versa, changes in manning levels and flexibility amongst staff grades. Jackson (1991) stated
that companies that accepted flexible agreements, the workers have been offered a variety of
benefits including a rise in wage, enhanced status and much better job security. Thus, trade
unions were forced to bargain for better conditions on the basis of making concessions allow
significant changes in the labour process. Communications Workers of America (CWA) had a
that every worker should work during 'core hours,' which cover 60% of the usual workday.
However, the beginning and ending times of every worker may vary within the schedule time
a flextime policy which will allow workers to be flexible in their everyday start end times, under
the policy the workers should arrive at 6:30 am and leave the work at 6:00 pm. The policy says
that every worker should work seven and half hours daily and they must work in the core hours
which are 9-11:30 am and 12-2:30 pm (Ex-14) (newecon.org, 2011). International Brotherhood
of Electrical Workers (IBEW) and PG&E agreed regular part-time workers who works less than
40 hours a week will get the benefits such as life insurance, retirement benefits, vacation
allowance, sick leave, medical, dental and vision coverage and paid holidays (Ex-15)
(newecon.org, 2011). American Federation of State, County and Municipal Workers (AFSCME)
bargained with the State of Oregon to approve the participation job sharing fir the eligible
workers. Workers will be allowed to share a job only if the worker is in a vacation or for illness.
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The workers sharing a job will be entitled to share life insurance of a full time worker (Ex-16)
'flexible work week." The agreement will allow particular number of workers to work three days
a week (three consecutive 13.33 hour days), four days a week (four consecutive 10 hour days), or
a regular practice of five days a week (five consecutive 8 hour days). (Ex-17) (newecon.org,
2011)
transaction expenses by standardizing the terms and conditions of employment, it also provides a
tool of collective regulation for the employer and the workers, another benefit of flexible attitude
continuous terms and conditions. A flexible attitude in collective bargaining also raises training
intensity and human capital accumulation in companies, which therefore is a major reason for the
growth of productivity. In 2004, Banca Nazionale del Lavoro (BNL) and the trade unions signed
a collective bargaining contract that centered on constant lifetime training. The contract provides
customized training measures for worker and training provide based around the expert region. A
revolutionary component from the agreement will be the introduction from the “training credit”
to be able to assure the proper of training to get a lengthier time period and also to optimize the
presence around the training program because it enhances high quality and flexibility from the
which includes a nationwide vocational training program by which the curriculum is worked out
via collective bargaining between the unions and management using the state shouldering most
13
of the expenditures concerned. This professional training program continues to be an essential
institutional assistance for Danish competitiveness because it aided workers turn out to be much
Howell (2005) also stated that flexible attitude in collective bargaining agreement rises
cooperation along with other combined actions between the unions and companies because it
offers a mechanism for communication in between workers and organisations. A flexible attitude
relations, which outcomes in enhanced productivity and performance. Ferrari Auto, the Italian
automotive producer agreed to a collective bargaining agreement using the sectoral trade union
organisations, which launched higher versatility in operating time, produced part-time function
much more available and appealing and improved performance-related spend. This generated
elevated productivity and versatility for Ferrari, whilst in the exact same time supplied
advantages for those workers also. (Ex-20) (Tapia and Telljohan, 2007)
6.0 Reasons for pursing Rigid Stand during the Negotiation Process
According to Forashuddin (2010), trade unions and management tend to pursue rigid stand due
to the past conflicts that had taken place after a negotiation between the parties. It is also seen
that organisations that are not performing well especially economically, shuts down their
productivity or even they started layoff without any advance notice to the workers. Wage is also
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an important issue, due to the increase in expenses and for a better living workers bargain for a
rise in their wage and for which the management tend to pursue rigid stand. In the developing
countries rigid attitude are mostly seen as there is not a good relationship between the trade
union and the management (the daily star, 2010). There was a huge dispute done by the workers
of Bangladesh garments industry in 2010 as the union wanted a wage rise and the management
shut down their factories for an unpredictable time. (Ex-21) (the daily star, 2010)
Narlikar (2010) recommend that deadlocks happen when there is a rigid stand taken either by the
management or by the labour union, that is the negotiations in between the employers and
workers stay nonetheless because of the lack of compromise by both party. Nevertheless
whenever a deadlock isn't resolved it produces a dispute in between the employer and also the
workers which results in lockouts or strikes (Mathis and Jackson, 2007). According to (Blanpain,
2010) lockouts happen once the management shuts down the operations with the business which
prevents union members to function. This primarily happens once the employer isn't happy
through the actions with the trade union and protests in opposition to it. The cabin crew of
British Airways union declared a strike simply because they had a dispute using the airline for
bad operating circumstances (Ex-22) (bbc.co.uk). Due to the lockouts or strikes the company has
to count a heavy loss in productivity. Lufthansa Airlines of Germany was a victim of rigid stand
negotiation, the workers went for a strike and the company had to come to an agreement to settle
down the five day strike called by Verdict Union in 2008. The strike was to increase the payment
of the workers by two percent from the middle of the year 2009. It caused the airlines over five
million Euros each day of strike (Ex-23) (bbc.co.uk). The workers of Honda manufacturing plant
15
in China went for strike simply because they had been compensated reduced wages throughout
the period of inflation (Ex-24) (Barboza and Bradsher, 2010). Peter, (2009) mentioned that
Toyota manufacturing plant in Philippines sacked more than two hundred union members and
officers as well as suspended more than 64 other workers for taking part inside a nonviolent
union meeting. The workers had been signifying in front from the Division of Workers and
Employment to dispute the organisation's rejection to collectively discount using the trade union,
Toyota Motor Philippine Corporation Workers Association (TMPCWA). The employers might
perform a lockout also by which the employers closed down the operations stopping the workers
from operating. Throughout each lockouts and strikes the organisation ceases to perform leading
to financial losses (Ex-25) (Colosi and Berkeley, 2006). (types of strikes are listed in appendix
C)
Wages and allowance: the cost of living expense is increasing, the workers generally bargain for
higher wages to meet the expenses and to increase their standard of living. In India 20.4% of
disputes were held in 2003 for the demand of higher wages, where as in 2004 it has increased to
Personnel and retrenchment: the personnel and retrenchment is also an important factor which
causes disputes to take place. In India disputes caused for personnel was 11.2% and for
retrenchment it was 2.2% in 2003, where as in 2003 it has been raised to 14.1% for personnel
and 2.4% for retrenchment. (Ex-27) (the hindu business times, 2004)
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Bonus, leave and working hours: bonus is an important factor for industrial disputes, 6.7% of
industrial disputes occurs every year in India for bonus. Leave and working hours are not been
an important issue for industrial disputes, even though 0.4% disputes occur every year for leave
and working hours in India. (Ex-28) (the hindu business times, 2004)
Fig 5: Unfair labour practices done by employers. (Noe, Hollenbeck, Gerhart and Wright,
2003)
17
Fig 6: Unfair labour practices done by labour unions. (Noe, Hollenbeck, Gerhart and Wright,
2003)
Based on Broderick and Gerhart (1997), improve in worker advantage expenses really are a main
problem for employers and it is prone to be considered an obstacle for growing competitiveness.
Labour unions effect on non-wage types of compensation can lead to each constructive and
unfavorable financial and social result. Based on Smethurst and Carter, (2009) there are two
faces of unionism, the monopoly face and the other collective voice or institutional response
face. Budd (2007) says that each predict that unionized workers may have much more generous
advantage deals than similar non-union worker, even though the financial and social effects of
those raises is dependent on whether or not the improve is because of the monopoly or
18
collective-voice face. In accordance to Budd (2007) the monopoly impact of labour unions on
worker advantages states that unions increase advantages because they can utilize their
monopoly energy to extract higher compensation, such as advantages from employers. Dorey
(2009) says, evaluation with the monopoly face of unionism should face the important issue with
the supply of union monopoly energy. If unions worked in totally viable markets, and when all
they did had been to boost wages over aggressive ranges, unions would possess an extremely
hard time current, for organized companies would basically have greater expenses of
manufacturing than other companies. The monopoly face of unions may be observed among the
workers of Common Motors (GM), who bargained a rule which permitted some workers to
depart having a full-day’s spend following fifty percent day’s function (Ex-29) (Mathis and
Jackson, 2007). Based on a survey by Amicus (bbc.co.uk) the monopoly face of unionism may
be observed within the motor vehicles, shipbuilding and aerospace, business within the United
Kingdom (Ex-30). According to Budd (2007) the collective-voice impact of unions on worker
advantages supports the view that unions improve advantages, because as being a democratic,
collective institution will support the preferences of typical instead of marginal workers. Typical
workers are usually presumed to need much more advantages and much less financial
compensations, because they have higher seniority and much less mobility (Budd, 2007). The
collective voice of unionism essentially customizes the method of the labour sector and,
therefore, the nature with the labour agreement. To summarize, the collective voice of unions
also mainly customizes the societal associations with the workplace (Bell, 2008). The worker
representative, from the union of Nokia, a globalised communications corporation, meets the
management twice a year to discuss problems which impact the workers (Ex-31) (Nokia, 2010).
The Russian Mining Workers Trade Union (MWTU) is a properly controlled union in Russia.
19
The domestic unions handle to obtain via contracts that provide the workers greater requirements
than are now being set within the central contracts. The collective voice effect from the union
enabled them to possess enhanced industrial relationship. (Ex-32) (Daniels and Mcllroy, 2009).
9.0 Trade union and the role of management around the world
Collective bargaining is there all around the world where industrialization has taken place. The
trade union and the management come in common terms for the betterment of the industry and as
well as betterment of the workers. In many developed countries, such as in Europe, the presence
of powerful trade unions and employers' organisations have resulted in lots of important contract
becoming concluded in the industry level or nationwide, increased by some enterprise level
bargaining (Ex-33) (Mattera, 2010). Within the USA, nevertheless, bargaining in the enterprise
level continues to be the much more typical apply, apart from in particular sectors like coal,
steel, trucking and building (Ex-34) (Schloesser, 2009). National level bargaining in Japan
continues to be the exception, and it's been increased by a big quantity of enterprise level
bargaining, aided partially by the structures of the union that are enterprise-based (Ex-35)
(Colosi and Berkeley, 2006). In lots of Asian nations low rates of unionization have militated in
opposition to nationwide and organisation level bargaining, and enterprise level bargaining
The literature review is done above on the advantageous perspective of flexible collective
bargaining negotiation and the disadvantages of rigid stand during collective bargaining
20
negotiation between the trade unions and the management. After doing the research it can be
seen that flexible attitude during negotiation process benefitted both the workers and the
employers. Collective bargaining negotiations help the unions and the management to build up a
relationship and work efficiently as they have agreed to a common terms and conditions. A
flexible collective bargaining helps an organisation to standardize the terms and condition and
also enhances the performance and productivity. During a bargaining process if a rigid stand is
taken, the above findings has shown that the workers go for a strike or the management shut
down the productivity and layoff the workers which are not beneficial for both the parties.
Neither the unions nor the management want to take a rigid stand during a collective bargaining
negotiation. A flexible attitude always create a healthy relationship between the trade unions and
the management where as a rigid stand leads to conflicts and create a rivalry between the
management and the union members because they both sticks to their own opinions. After all
the findings it is easy to say that it is always advantageous for both the union and the
Unions are a source by which the workers get strength in collective bargaining process where
they are able to communicate their problems to the management. Through a collective bargaining
agreement the unions achieve their rights regally. In a collective bargaining process flexibility is
very much advantageous where as a rigid stand can be fatal. The above literature shows that a
flexible collective bargaining negotiation benefitted both the unions and the organisation by
increasing efficiency and productivity, whereas a rigid stand has lead to strike or lockouts. It can
be conclude that it is always wise to remain flexible during a collective bargaining process. It can
21
be recommended that the management should arrange a collective bargaining negotiation twice a
year to hear the problems of the workers and what they are willing to get from the organisation in
near future. It will build a good relationship between the union and the management if frequent
negotiation takes place as they both will know each other’s problem and will work for the
beneficial for both the parties. Frequent collective bargaining negotiation is more likely for both
22
12. References
Books
“Budd, J.W. (2007) “The Effect of Unions on Employee Benefits and Non-Wage Compensation:
Monopoly Power, Collective Voice, and Fascilitation”, in Bennet, J.T. and Kaufman, B.E. (eds),
“Cooke, W.N. (2003) Multinational companies and global human resource strategies. California:
“Decenzo, D.A. and Robbins, S.P. Human Resource Management. 7th edn. Singapore: John Wiley
“Dessler, G. (2005) Human Resource Management. 10th edn. New Jersey: Pearson Prentice Hall.”
“Noe, R.,Noe, R.A.,Hollenbeck, J., Gerhart, B. and Wright, P.M. (2009) Human
“Sims, R.R. (2007) Human Resource Management: contemporary issues, challenges and
opportunities. IAP.”
“Howell, C. (2005) Trade Unions and the State: The Construction of Industrial Relations
“Sims, R.R. (2002) Organizational success through effective human resources management.
23
Journals and Articles
“Aidt, T.S. and Tzannatos, Z. (2008) “Trade unions, collective bargaining and macroeconomic
performance: a review”, Industrial Relations Journal, vol. 39, no. 4, pp. 258-295”
“Benson, J and Gospel, H (2008)'The emergent enterprise union? A conceptual and comparative
analysis',The International Journal of Human Resource Management, vol.19, no. 7, pp.1365 — 1382
April 2009)”
“Card, D. and De La Rica, S. (2006) “Firm-Level Contracting and the Structure of Wages in
Spain.” Industrial and Labour Relations Review vol. 59, no 4, pp. 573-592.”
“Farndale, E. and Brewster, C. and Poutsma, E. (2008) 'Coordinated vs. liberal market HRM: the
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24
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[URL:http://www.nokia.com/corporate-responsibility/cr-report-
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“Eurofound (2007) Right of collective bargaining. Available at
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27
13. Bibliography
“Budd, J.W. (2007) “The Effect of Unions on Employee Benefits and Non-Wage Compensation:
Monopoly Power, Collective Voice, and Fascilitation”, in Bennet, J.T. and Kaufman, B.E. (eds),
“Cooke, W.N. (2003) Multinational companies and global human resource strategies. California:
“Decenzo, D.A. and Robbins, S.P. Human Resource Management. 7th edn. Singapore: John Wiley
“Dessler, G. (2005) Human Resource Management. 10th edn. New Jersey: Pearson Prentice Hall.
Noe, R.,Noe, R.A.,Hollenbeck, J., Gerhart, B. and Wright, P.M. (2009) Human Resource
“Sims, R.R. (2007) Human Resource Management: contemporary issues, challenges and
opportunities. IAP.”
“Howell, C. (2005) Trade Unions and the State: The Construction of Industrial Relations
“Sims, R.R. (2002) Organizational success through effective human resources management.
28
“Aidt, T.S. and Tzannatos, Z. (2008) “Trade unions, collective bargaining and macroeconomic
performance: a review”, Industrial Relations Journal, vol. 39, no. 4, pp. 258-295”
“Benson, J and Gospel, H (2008)'The emergent enterprise union? A conceptual and comparative
1382”
April 2009)”
“Card, D. and De La Rica, S. (2006) “Firm-Level Contracting and the Structure of Wages in
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14. Appendices
Appendix A: Collective Bargaining issues
“Carrell and Heavrin (2009) stated that variety of issues may be addressed throughout collective
bargaining. Bargaining issues are defined in three approaches such as mandatory, permissible
and illegal.”
32
"Permissible issues: - Torrington, Hall,
"Mandatory issues: - Dessler (2008)
and Taylor (2008) stated that collective
stated that collective bargaining issues "Illegal issues: - Sims (2007) stated that
bargaining issues which are neither
which are acknowledged by labor laws collective bargaining issues which are
illegal nor mandatory are referred to as
or a court choice as topic to bargaining forbidden by law and would need both
permissible issues. They turn out to be
is called mandatory issues. If any from party to consider illegal action are
part of negotiations only via the joint
the party demands for that issue within referred to as illegal issues. For
agreement of each management and
this class to become topic to example a clause agreeing to employ
union. Neither party can force another
bargaining, then that should consider union members solely could be illegal
to discuss more than permissible
location. Mandatory issues relate to inside a right-to-work state."
issues. Advantages for retirees may be
wages."
an example."
“Walton and McKersie (2003) suggested that there are other types of bargaining apart from
“Distributive bargaining focuses on dividing a fixed-economic “pie” between the two sides. For
example (8): in case of wage increase the union gets a larger share of the pie and the
“Integrative bargaining is the part of the labour-management negotiation process that seeks
solutions beneficial to both sides. For example (9): if management needs to reduce labour costs,
they could reach an agreement with the union to avoid layoffs in return for the union agreeing to
33
“Attitudinal structuring is the aspect of the labour-management negotiation process that refers to
the relationship and level of trust between the negotiators. For example (10): the union may be
reluctant to agree to productivity enhancing work rule changes to enhance job security if, in the
past, it has made similar concessions but believes that management did not stick to its assurance
of greater job security. Thus the long-term relationship between the two parties can have
important impact on negotiations and their outcomes (Walton and McKersie, 2003).”
focuses on the conflicting objectives of factions within labour and management. For example
(11): high seniority workers, who are least likely to be laid off, may be more willing to accept a
contract that has layoffs, whereas less senior workers would likely feel very differently. So the
negotiators and union leaders must simultaneously satisfy both the management side and their
“Meiners, Ringleb and Edwards (2008) have mentioned about five kinds of strike they're:”
“Financial strikes: it occurs once the events fall short to achieve contract through collective
bargaining. Unfair labor practice strikes: it occurs to protest illegal conduct through the
employer.”
“Jurisdictional strikes: it occurs when a single union’s members stroll out to force the employer
34
“Sympathy strikes: it occurs when a single union strikes in assistance with the strike of an
additiona
35