collective bargaining group 10

7/31/2019 Collective Bargaining Group 10

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Collective BargainingCollective Bargaining


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What is Collective BargainingWhat is Collective Bargaining

Process of joint decision making representingdemocratic way of life in industry.

A technique adopted by two parties throughthe process of discussion and negotiation.

Process of negotiation between firms and

workers representatives establishingmutually agreeable conditions of employment.


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Why is it called Collective Bargaining?Why is it called Collective Bargaining?

CollectiveCollective: Both employer and employee act: Both employer and employee actcollectively.collectively.

Bargaining:Barg

aining: Process of reaching an agreementProcess of reaching an agreementinvolves propasals and counterinvolves propasals and counter

propasals,offers and counter offers.propasals,offers and counter offers.


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Objectives of Collective BargainingObjectives of Collective Bargaining

Objectives can be divided intoObjectives can be divided into

1)1) Major or basic objectivesMaj

or or basic objectives:: Arriving at an agreementArriving at an agreement

2)2) Sub-objectivesSub-obj

ectives:: Cordial relationsCordial relations Protection of interestProtection of interest No Govt. interventionNo Govt. intervention


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DefinitionsDefinitions

According to Indian Labor Organization (ILO),

Collective bargaining is, the negotiation about working conditions andterms of employment between an employer and a group of employees orone or more employee, organization with a view to reaching an agreement

wherein the terms serve as a code of defining the rights and obligations ofeach party in their employment/industrial relations with one another.

According to Dale Yoder,

Collective bargaining is the term used to describe a situation in which theessential conditions of employment are determined by bargaining processundertaken by representatives of a group of workers on the one hand andof one or more employers on the other.


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FeaturesFeatures

Collective Process

Continuous Process

Bargaining Agreement

Discipline

Flexible Approach


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Subject Matter of CollectiveSubject Matter of Collective

BargainingBargaining

The Indian Institute of Personnel Management suggested thefollowing subject matter of collective bargaining:

1. Purpose of agreement, its scope, and the definition ofof agreement, its scope, and the definition of

important terms.important terms.2.2. Rights and responsibilities of the management and of theRights and responsibilities of the management and of the

trade union.trade union.

3.3. Wages, bonus, production norms, leave, retirement benefits,Wages, bonus, production norms, leave, retirement benefits,and terms and conditions of service.and terms and conditions of service.

4.4. Grievance redressed procedureGrievance redressed procedure5.5. Methods and machinery for the settlement of possible futureMethods and machinery for the settlement of possible future

disputes.disputes.


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Mandatory and Permissive SubjectsMandatory and Permissive Subjects

Both parties must agreeE.g. board service, retiree

benefits Arbitration It falls outside of wages, hours

and working conditionstypically controlled by theemployer

Ground rule negotiations

Internal union matters such ashow and when a tentativeagreement is ratified

Settlement of unfair laborpractice charges

Pension benefits for retired

members

..

Permissive SubjectsPermissive Subjects

Wages, hours, andemployment conditions

Arbitration Bonuses Holiday pay Hours of work

Life insurance Wages Medical insurance

Mandatory SubjectsMandatory Subjects


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Illegal Subjects of BargainingIllegal Subjects of Bargaining

Any proposal which violates National Labor Relations Act (NLRA), thePublic Employees Relations Act (PERA), the Civil Service Reform Act(CSRA) and/or any other federal state, county or municipal law would bean illegal subject of bargaining.

It includes: Featherbedding

Discriminatory practices, etc.

Closed shop provisions.

Hot cargo clauses.


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Collective Bargaining Levels

Collective bargaining operates atCollective bargaining operates atthree levels:three levels:

1. Sector or industry level.

2. National level.

3. Company/Enterprise level.


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Pre-requisites for Collective Bargaining

Pre-requisites for collective bargaining

Effective negotiations and enforcement requires a systematicEffective negotiations and enforcement requires a systematicpreparation of the base or ground for bargaining .preparation of the base or ground for bargaining .

Deciding the Level of Bargaining

Whether the dealings are confined to enterprise level, industryWhether the dealings are confined to enterprise level, industrylevel, regional or national level should be decided as the contents,level, regional or national level should be decided as the contents,scope and enforcement agencies differ in each case.scope and enforcement agencies differ in each case.

Determining the Scope and Coverage of Bargaining

It would be better to have a clear understanding of what are theIt would be better to have a clear understanding of what are theissues to be covered under bargaining.issues to be covered under bargaining.

The important and interrelated issues are to be taken forThe important and interrelated issues are to be taken forconsideration.consideration.


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Collective Bargaining Process


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Collective Bargaining Process

Prepare

Involves composition of a negotiation team.Involves composition of a negotiation team. Should consists of representatives of both the parties withShould consists of representatives of both the parties with

adequate knowledge and skills for negotiation.adequate knowledge and skills for negotiation. In this phase both the employers representatives and theIn this phase both the employers representatives and the

union examine their own situation in order to develop theunion examine their own situation in order to develop the

issues that they believe will be most important.issues that they believe will be most important. The first thing to be done is to determine whether there isThe first thing to be done is to determine whether there is

actually any reason to negotiate at all.actually any reason to negotiate at all.

Discuss

The parties decide the ground rules that will guide theThe parties decide the ground rules that will guide the

negotiations.negotiations. A process well begun is half done and this is no less true inA process well begun is half done and this is no less true in

case of collective bargaining.case of collective bargaining. Mutual trust and understanding environment is created so thatMutual trust and understanding environment is created so that

the collective bargaining agreement is reached.the collective bargaining agreement is reached.


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Collective Bargaining ProcessCollective Bargaining Process

Propose

Bargain

Settlement

This phase involves the initial opening statements and theThis phase involves the initial opening statements and thepossible options that exist to resolve them.possible options that exist to resolve them.

This phase could be described as brainstorming.This phase could be described as brainstorming. The exchange of messages takes place and opinion of bothThe exchange of messages takes place and opinion of both

the parties is sought.the parties is sought.

Both the parties agree to a common decision regarding theBoth the parties agree to a common decision regarding the

problem or the issue.problem or the issue. This stage is described as consisting of effective jointThis stage is described as consisting of effective joint

implementation of the agreement through shared visions,implementation of the agreement through shared visions,

strategic planning and negotiated changestrategic planning and negotiated change..

Negotiations are easy if a problem solving attitude isNegotiations are easy if a problem solving attitude is

adopted.adopted. This stage comprises the time when what ifs andThis stage comprises the time when what ifs and

supposals are set forth.supposals are set forth.


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Collective Bargaining Agreements

The result of Collective Bargaining procedure is called theCollective Bargaining Agreement (CBA).

Collective agreements may be in the form of proceduralagreements or substantive agreements.

Procedural Agreements

Deals with the relationship between workers andmanagement .

Substantive Agreement

Deals with specific issues, such as basic pay, overtimepremiums, bonus arrangements, holiday entitlements,hours of work, etc.


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Importance of Collective Bargaining

Collective bargaining includes the process of resolving

labor-management conflicts.

Collective bargaining is a recognized way of creating a

system of industrial jurisprudence. It acts as a method of introducing civil rights in the

industry.

It establishes rules which define and restrict the

traditional authority exercised by the management.


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Importance to Employees

Collective bargaining develops a sense of self respect

and responsibility among the employees.

It increases the strength of the workforce, thereby,

increasing their bargaining capacity as a group. Collective bargaining increases the morale and

productivity of employees.

Effective collective bargaining machinery strengthens

the trade unions movement. The workers feel motivated as they can approach the

management on various matters and bargain for higher

benefits.


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Importance to Society

Collective bargaining leads to industrial peace in the

country

It results in establishment of a harmonious industrial

climate. The discrimination and exploitation of workers is

constantly being checked.

It provides a method or the regulation of the

conditions of employment of those who are directlyconcerned about them.


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AdvantagesAdvantages

Efficiency Equality of power

Legal force

Impasse resolution

Communication

Understanding the institution Self-determination

Administrative evaluation

Younger faculty

Minorities

Institutional loyalty

Educational policy

Competitive power

Consistency of service

Strengthening collegiality


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DisadvantagesDisadvantages

Increased costs

Loss of flexibility

Inappropriateness of job actions

Increased bureaucracy

Unfavorable power shifts

Increased demands on faculty

Standardized pay

Loss of some diversity

Involuntary contributions

Loss of traditional faculty rights Loss of self-determination

Loss of self-governance

Loss of full participation of

faculty

Credibility


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Problems of Collective BargainingProblems of Collective Bargaining

1.1.Multiplicity of unionsMultiplicity of unions

2.2.Dominated by PoliticiansDominated by Politicians

3.3.Lack of ProcedureLack of Procedure4.4.AdjudicationAdjudication

5.5.Political OrientationsPolitical Orientations


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Impasses in BargainingImpasses in Bargaining

Economic Strike An economic strike is a suspension of production while workers and theiremployer argue about how to divide the surplus from their relationship.

Modern economic theories of strikes assume that at least one side hasprivate information about the surplus, viewing the lost production as a costof extracting information.

Wildcat Strike Strikes without formal union authorization are also known as wildcat

strikes.

Lockout The temporary refusal made by an employer to furnish work to his

employees as a result of an industrial or labor dispute. . It may be total (one month or less), temporary (one month to six months)

or permanent (more than six months).A lockout by an employer is the

counterpart to a strike.


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Resolving disputesResolving disputes

MediationArbitration Arbitration is a method of dispute resolution used as an alternative to litigation. The arbitration agreement and decision of the arbiter may be enforceable under state

and federal law.

There are 2 types of arbitration:

Voluntary Arbitration In many cases an argument simply cannot be settled as both parties disagree on their

own grounds.

They therefore enter into Voluntary Arbitration, where disputing parties bothagree tosubmit an issue to arbitration

Compulsory Arbitration. This method has been strongly resisted by labor unions and employers who prefer to

rely on collective bargaining and associated economic pressure, such as strikes andlockouts, to reach a settlement of such disputes.

Fact Finding


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Bargaining Types

Distributive bargaining:Distributive bargaining:. In distributive bargaining, one partys gain is another partys loss. This ismost commonly explained in terms of a pie.

In general, distributive bargaining tends to be more competitive. This typeof bargaining is also known as conjunctive bargaining.of bargaining is also known as conjunctive bargaining.

Integrative bargaining:Integrative bargaining: This involves negotiation of an issue on which both the parties may gain, orat least neither party loses.

In general, it tends to be more cooperative than distributive bargaining. Thistype of bargaining is also known as cooperative bargaining.

Attitudinal restructuring:Attitudinal restructuring: This involves shaping and reshaping some attitudes like trust or distrust,

friendliness or hostility between labor and management.

Intra-organizational bargaining:Intra-organizational bargaining: This is a type of maneuvering to achieve consensus with the workers and

management. Even within the union, there may be differences between

groups.


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Tactics When Bargaining FailsTactics When Bargaining Fails

Union Tactics WhenBargaining Fails

Strike Economic strikes Sympathy (secondary) strikes Wildcat strikes Picketing Boycott Work slowdown

Management Tactics WhenBargaining Fails Lockouts Strikebreakers


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Thank You!Thank You!

collective bargaining group 10

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