Collective Bargaining

COLLECTIV
E
BARGAININ
G….
Continued..

1
 Pre-requisites
Collective Bargaining

• Recognition of Bargaining Agent

• Deciding the level of bargaining

• Determining the scope and coverage of

bargaining

2
 Industrial bargaining has 3
Collective Bargaining
approaches

• Unilateral
• Bilateral
• Tripartite

3
Collective Bargaining
TYPES

• Conjunctive Bargaining

• Integrative/ Productivity Bargaining

• Composite Bargaining

4
 Conjunctive bargaining
Collective Bargaining

• Also called distributive or zero sum

bargaining
• We vs. They
• Primary concern is to maximize one’s
gain at the cost of other
• Mostly concerned with wages and
benefits

5
 Cooperative bargaining
Collective Bargaining

• Characterized by cooperative stance

• Impact of recession
• Pay cut for job security

6
 Productivity bargaining
Collective Bargaining

• Growing strength of union has impact

on productivity and high costs
• Links workers wages and benefits with
productivity
• Productivity standards are set and
need to be met.

7
 Composite bargaining
Collective Bargaining

• Labours’ response to productivity

bargaining
• Pressure from union to bargain not just
monetary aspects but also:
– Work norms
– Manning standards
– Employment levels
– Sub-contracting practices
– Environmental and health hazards etc..

8
 Bargaining Theories
Collective Bargaining

• Walton & McKersie Theory

– Views CB as 4 sub processes
• Distributive bargaining
• Integrative bargaining
• attitudinal structuring
• intra-organisational bargaining
– These help in shaping the final outcome

9
 Bargaining range Theory
Collective Bargaining

• Labour and mgmt establish lower and

upper limits
• Both teams proceed through proposal
and counter-proposal
• Depend on bargaining skills and
strength of union and management
negotiators

10
 Chamberlain Model
Collective Bargaining

• Focuses on bargaining power

• The ways in which changes in these
lead to settlement
• BP is ability to secure your opponent’s
agreement to your terms
• Depends on how costly disagreeing will
be relative to how costly agreeing
would be

11
 Management and Union Power
Collective Bargaining
in Collective Bargaining
• Bargaining Power
– The power of labor and management to achieve
their goals through economic, social, or political
influence.
• Union Bargaining Power
– Strikes, pickets, and boycotts
• Management Bargaining Power
– Hiring replacement workers
– Continuing operations staffed by management
– Locking out employees

Presentation Slide 14–8

14–12
12
 Levels of bargaining
Collective Bargaining

• Plant or establishment level

• Industry level
• National level

13
 PREPARE
PREPAREFOR FOR DEVELOP
DEVELOP
The Collective NEGOTIATIONS
NEGOTIATIONS STRATEGIES
STRATEGIES
Collective Bargaining
------------------------------
------------------------------ ------------------------------
------------------------------
Bargaining • •Gather • •Develop
Gatherdata
data Developmanagement
management
Process • •Form proposals
proposalsand
andlimits
limitsof
Form bargainingterms
bargaining terms of
concessions
concessions
• •Consider
Consideropponents’
opponents’goals
goals
• •Make
Makestrike
strikeplans
plans
1 2

FORMALIZE
FORMALIZE CONDUCT
CONDUCT
AGREEMENT NEGOTIATIONS
NEGOTIATIONS
AGREEMENT
------------------------------ --------------------------------
--------------------------------
------------------------------
• •Clarify • •Bargain
Bargaininingood
goodfaith
Clarifycontract
contractlanguage
language faith
• •Ratify agreement • •Analyze proposals
Analyze proposals
Ratify agreement
• •Resolve
Resolveproposals
proposals
• •Stay
Stay withinbargaining
within bargainingzone
zone

4 3

Strikes Legal Lockouts replacements Boycotts

Figure 14.2 requirements
Presentation Slide 14–7
14–14
14
 Items In A Labor Agreement
Collective Bargaining

• Typical clauses will

cover: – Grievance
– Wages procedures
– No strike/no
– Vacations lockout clause
– Holidays – Overtime
– Work schedules – Safety procedures
– Management rights – Severance pay
– Union security – Seniority
– Transfers – Pensions and
– benefits
Discipline
– Outsourcing

14–15
15
Collective Bargaining
Collective Bargaining
Regulation of terms and
conditions of employment
parties
of workers between their
bargaining agent and
employers.
It is a kind of rule making
exercise.
Vs
Negotiation Skills
Settlement of disputes
between two or more
wherein all modify their
demands to achieve an
acceptable compromise.
It is a deliberate, explicit
event.
16
 Pre-negotiations
Collective Bargaining
• Establish both your objectives and
those of the other party in terms of
needs, positions, packages of
currencies, how you will react to
certain behaviours, mandates, etc.
Decide on your batna (best alternative
to no agreement).
• Collect all relevant facts.
• Before framing specific proposals
consult informally with the foremen,
departmental heads, work study
people, shop stewards and key
operatives.
17
 • Decide who should be conducting the
Collective Bargaining
negotiations and the roles of each
member of your negotiating team.
• Ensure that all members of your side
are in agreement. Prepare managers for
awkward questions and proposals. See
that neither in body language nor
verbally does any one on your side
display disagreement with your
presentations.
• Calculate in advance the cost of
various concessions.

18
 Negotiation strategies
Collective Bargaining
• Not everybody will receive the same
information.
• There is no guarantee that everybody
will receive some information.
• Find out how the other party sees the
situation and try to see it from their
point of view; understand their
problems and find out what they want.
• Don’t antagonise the other party by
making them defensive and if you feel he
needs an opportunity to save face give
him one.

19
 The kinds of behaviour most likely to create
Collective Bargaining

harmonious personal relationships are :

• showing respect for the other person’s

opinion.
• Showing willingness to change your
judgment in the light of new evidence -
keeping an open mind.
• Being sincere and consistent in your
approach.

20
 • Avoiding his defeat in argument - leave
Collective Bargaining
him a way out where possible.
• Being calm and patient; considerate and
cool.
• Listening to what he has to say before
replying and showing interest in what he
says by summarising, and testing
understanding.
• Acting with deliberate intent and not on
impulse.

21
 • Keep flexible and be prepared to offer
or accept alternative solutions to
Collective Bargaining
particular problems.
• The ultimate settlement is frequently
not what was originally asked for.
• Remember that good negotiators start
high so that they have a strategic
anchor!
• Don’t make promises unless you are
absolutely certain of your backing,
and that you will be able to keep them.
• Always leave yourself a small
loophole. Don’t ever be dogmatic.

22
 Unions’ ideal solution
Collective Bargaining
Employers’ tolerance limit

Bargaining
zone
or
settlement
range

Unions’ expectations

Employers’ expectations

Unions’ tolerance limit

Employers’ ideal solution

23
 Common union negotiation tactics and counters by
management
Collective Bargaining

There are two rules management should follow in

response to this tactic:
- Do not accept verbal statements at their
face value.
- Do not counter wild union demands with
equally wild proposals. Always act in a
manner calculated to maintain the
respect of the entire work force.

24
Collective Bargaining
The union negotiator usually begins with an attack upon
the employer.
This is usually purely ritualistic behaviour;
its objective being either to strengthen the resolve of the
union members and to strengthen the leader’s position in
his union, or as a compensating show of strength for
accepting a relatively unfavourable position.
The management should simply listen and ignore his
behaviour.

25
 Early on in the negotiations, the union leaders will ask:
“was it the intention of the management to meet the
Collective Bargaining
union’s just demands?”
When management makes a non-committal reply (as
they should do) the union member is likely to threaten to
walk out as “there seems little purpose in negotiating
with such a rigid company.”
This tactic is intended:
- To shock management into revealing
information.
- To create a nervous or conciliatory
mood in which real negotiations would
begin.

26
 How to say no
Collective Bargaining
1. Say it promptly.
2. Do not feel obliged to explain and justify every ‘no’.
3. Do not say ‘no’ impatiently or in anger.
4. Find a sounder proposal to soften the answer.
5. Show concern for the eprson while rejecting his
ideas.
6. Restate their demands and proposals in a different
way more suitable for you.

27
 Causes for the limited success of CB
Collective Bargaining

in India

• Problems with the unions

• Legal problems
• Political interference
• Attitude of management

28
 Conditions Essential For Effective Bargaining
Collective Bargaining

• Freedom of association of employees

• Unanimity among workers
• Strength of both the parties
• Attitude of the parties
• Representative authority
• Mutual acceptance of the agreements entered into by employers
and employees

29