Employer and Employee

Relations
Unit 2.7
 Negotiations and Collective
Bargaining
A Negotiation is the bargaining process
thru which two or more parties attempt to
achieve an agreeable outcome.
Individuals who do not wish to directly
negotiate may use agents; Collective
Bargaining is the process of negotiation
between managements representative and
trade union representatives.
Collective Bargaining involves a certain level of
compromise, other wise there would be a stand-off
(also known as deadlock.)
Employees are usually represented by a trade union
(also known as a labour union.)
 The Three Levels of
Negotiation
1 . The day to day negotiations concerning
the internal affairs of a business, such as
management and their subordinates
establishing new production and sales
targets, are called Management
Negotiations.
2. Negotiations between different
organizations are Commercial Negotiations.
3. An extension of commercial negotiations
which involve consideration of cross-border
cultural and language difference are
referred to as International Negotiations.
The Six Stages of
Negotiation
Part 1
The Six Stages of
Negotiation
Part 2
The Approaches to the Negotiation
Process
1. Avoidance: Advocates suggest that the best
way to resolve a dispute is to avoid it in the first
place; associated with a lose-lose situation
because underlying issues are not dealt with.
2. Level Playing Field: Both parties are seen as
equal; there will be no negotiations if the
parties are not equal.
3. Winner Takes All: The traditional view that one
persons gain is anther persons loss; win-lose
situation
4. Win-win: The idea that everyone could win from
the negotiation process and that itd yield more
successful outcomes than winner takes all.
 Trade Unions
The primary goal of any labour union is to protect
the interests of its members, done mainly
through bargaining on behalf of their members
for improved pay and working conditions and/or
persuading governments to pass legislation in
favor of employees.
The outcome of the negotiation relies on the
bargaining strength of the representatives as a
result of:
Their experience and skills as negotiators
Number of members and degree of unity of the union
The state of economy
Demand for labour deriving from the demand for the
product or service the labour will be used to supply.
 Main Types of Trade Unions
1. Craft: The original Unions with members sharing
a particular skill or craft, such as engineers or
printers.
2. Industrial: Accept members from the same
industry, irrespective of their skills, qualifications,
ranking, or the nature of their work.
3. General: Accept member from any industry,
regardless of their skills or qualifications, and
tend to have very large numbers of members
4. White-Collar: admit clerical, administrative and
professional staff and exist for such professions
like teaching and banking.
 Achieving Individual and Group
Objectives
Worker demands can range from:
Better working conditions
Training and development opportunities
Improved remuneration (benefits)
Increased Pay
Most often a result of increased cost of living, comparison to other
workers in the same field, or the productivity of labour has been raised.
Trade unions have steadily declined because fewer people
are joining unions, due to:
Automation and mechanization
Range of government and legislative rules weaken union powers
Hence, many organization have developed Staff Associations,
which has similar roles to a trade union except that it
operates only within the organization; issues dealt with are
now, as a result, more relevant to the workers in specific.
 Methods to Achieve
Objectives
Negotiation: The workforce unites in its cause, strengthening the
ability to reason with management while also pressuring them to
listen
Go-Slows: Employees work the minimum pace allowable under their
employment contract; reduces productivity of the workforce yet
employers will find it difficult to discipline the staff who are
contractually well-behaved.
Work-to-Rule: Employees do the absolute minimum required
according to the rules set by the employer and workers will not do
anymore than is absolutely needed to.
Overtime bans: Employees representatives disallow any of the
unions members to engage in any overtime activity; this causes
disruptions similar to those of go-slows.
Strike Action: The refusal of employees to work, commonly a result
of a major industrial unrest such as pay disputes or serious
grievances.
Walk-Out: Often in conjunction with strike action, workers collectively
leave a meeting place of work as a sign of protest; usually
spontaneous.
 Achieving Employer
Objectives
Employer Objectives include:
Lower costs of production to remain
competitive
Improved levels of productivity
Lower rates of absenteeism and staff turnover
Staff Turnover means that a pay rise may be needed to
recruit and retain the best workers for the business
An organization that represents the
general views and interests of all
businesses within a certain industry is
referred to as an Employers Association.
 Employers Associations
These associations are likely to consist of highly skilled
negotiators who will use any combination of the following
tactics:
Negotiation: Do not require the involvement of a third party; often
use deadlines as a tactic which give the opposition little time to
prepare or fight for their case.
Public Relations: The function of the business that deals with
comments, complaints and criticism from the general public.
Threats of Redundancies: Intimidation used to pressure or threaten
employees intended to jolt workers into complying with their
demands.
Changes of Contract: Finite contracts are susceptible to change
possible terms and conditions when offering the next contract
which gives flexibility in the pay structure.
Closure: Management closes the business where either the workers
receive no wages, or, worst case scenario, the workers are made
redundant; intended to persuade a renegotiation or settlement.
Lock-Outs: The employer stops employees from working after only
certain union members decide to strike whilst other employees
continue to work; puts pressure on trade union by winning the
support of those who are working
 Conflict
The main causes for conflict are:
1. Needs and Wants
2. Perceptions
3. Values
4. Power
5. Feelings and Emotions
Which could:
Hinder productivity since there is less focus
Reduce the level of staff morale
Cause inappropriate conduct
Fuel the internal politics of an organization
(incompatible differences in the workplace)
Hamper opportunities for collaborative team-working
 Outcomes of Conflict
High concern for personal outcome leads people
to compete for a win only outcome.
High concern for others only means surrendering,
which leads to a win for the other party.
Low to no concern for either partys outcomes
simply means there is an avoidance of the
conflict.
High concern for the outcome of both parties
leads to collaboration to a find a mutually
beneficial solution. Moderate concern for the
outcome by both parties leads to some sort of
compromise being made.
 Conflict Resolution
There are several ways to approach Conflict Resolution, the
course of action taken to resolve conflicts and differences in
opinion, including:
Conciliation (also Mediation): the parties involved in a dispute
agree to use the services of an independent mediator.
Arbitration: the external party is used as a form of conflict
resolution, however, the process involves the independent
arbitrator deciding on an appropriate outcome.
Pendulum Arbitration requires the arbitrator to decide completely in favor
of one party or the other with no compromise or negotiation.
Employee participation, within Industrial Democracy, where
employees are given responsibilities and authority to complete
tasks and involved in the decision-making process.
No-Strike Agreements & Single Union Agreements
Consultation
Litigation
Expectations
Avoidance
 Review Questions &
Answers Part 1

1. Distinguish between negotiations and collective

bargaining.
2. What are the three levels of negotiation?
3. Outline six steps used in the negotiation process.
4. Distinguish between winner takes all and win-win
approaches to negotiation.
5. The outcome of any negotiation or collective bargaining
process will depend on several factors. State five of them.
6. What is a trade (labour) union and what is its main purpose?
7. Distinguish between go-slow and work-to-rule.
8. Differentiate between lock outs and closures.
9. What is meant by conflict and why does it become a
problem if not managed properly?
10. Distinguish between conciliation; and arbitration.
11. Why might employee participation and industrial democracy
lead to a win-win outcome?
 Review Questions &
Answers Part 2

12. How might no-strike agreements help

to improve the image of a labour union?
13. What is litigation?
14. Outline why avoidance is not often
regarded as an ideal method of conflict
resolution.
15. How do management and leadership
styles affect employees-employer
relations?
 Key Terms Part 1

Arbitration: a process that involves an independent person,

known as the arbitrator, deciding on an appropriate
outcome to a dispute, which becomes legally binding.
Collective Bargaining: a negotiation process whereby trade
union representatives and employer representatives discuss
issues with the intention of reaching a mutually acceptable
agreement.
Conciliation (also Mediation): a process whereby the two
parties involved in a dispute agree to use the services of an
independent mediator to help in the negotiation process.
Conflict: refers to disagreements that result from
differences in the attitudes, beliefs, values or needs of
people, which can arise from past rivalries and personality
clashes.
Conflict Resolution: the course of action taken to resolve
conflict and differences in opinion.
 Key Terms Part 2

Deadlock (also Stand-off): a situation where there has been a

failure to reach a satisfactory compromise in the negotiation
process, hence they usually lead to industrial disputes.
Employers Associations: organizations that represent the general
views and interests of all businesses within a certain industry by
influencing government action and negotiating with trade unions.
Go-Slow: a form of industrial action that involves employees
working at the minimum pace allowable under their employment
contract.
Industrial Action: activities taken by employees who are
disgruntled by working conditions and practices, such as go-slow,
work-to-rule, strike action, and overtime bans, usually a result of
bad employee-employer relations.
Industrial Democracy: employees are given responsibilities and
authority to complete tasks, like being part of the decision-
making process.
Negotiation: the bargaining process whereby separate parties
attempt to achieve a mutually acceptable outcome.
 Key Terms Part 3

Single-Union Agreement: an organization agreeing to participate

in the collective bargaining process beginning with a single trade
union that represents the workers.
Staff Associations: intend to uphold the welfare of their staff
members while operating only within an organization.
Strikes: a form of industrial action that involves employees
refusing to work.
Trade Union (also Labour Union): an organization that consists of
worker members who unite to protect their rights and well-being
in the workplace.
Walk-Out: a form of industrial action that happens when
employees independently or collectively leave their place of
work as a sign of protest or disapproval of management
decisions or actions.
Work-to-Rule: when employees do the absolute minimum
required, as stated in their employment contracts; they adhere
precisely to all rules and regulations in order to reduce
productivity.