hrm - excel books - chapter 23

8/9/2019 HRM - Excel Books - Chapter 23

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COLLECTIVE

BARGAINING

EXCEL BOOKS23-1

23Chapter


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ANNOTATED OUTLINE

23-2

INTRODUCTION

The basic objective of collective bargaining is to arrive at an

agreement on wages and other conditions of employment. Both

labour and management must reconcile their differences voluntarily

through negotiations, yielding some concessions and making

sacrifices in the process. Some of the important features of collective

bargaining may be listed thus:

Collective Bargaining


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Collective

Strength

Flexible

Voluntary

Continuous

Dynamic

Power relationship

Representation

Bipartite process

complex


Important features of CollectiveBargaining


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resolve differences over knotty issues

protect the interests of workers through collective action

carry out negotiations voluntarily, without interference from a third party

arrive at an amicable agreement through a process of give and take

Objectives of collective bargaining



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The substance of bargaining

1. Wages and working conditions

2. Work norms

3. Incentive payments

4. Job security

5. Changes in technology

6. Work tools, techniques and practices

7. Staff transfers and promotions

8. Grievances

9. Disciplinary matters

10. Health and safety

11. Insurance and benefits

12. Union recognition

13. Union activities/responsibilities

14. Management rights



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Types of Bargaining

Over the years, four distinctive types of bargaining have evolved,

namely;

Conjunctive or distributive bargaining: where both parties try

to maximise their respective gains

Cooperative bargaining: where both parties yield ground tothe other to get ahead and resolve knotty issues

Productivity bargaining: where the wages and benefits of

workers are linked to productivity

Composite bargaining: where labour bargains not only for

wages but goes a step further and demands equity in othermatters relating to work norms, employment levels, etc in return

for agreeing to the tight productivity norms set by management.



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The Process of Collective Bargaining

Steps in the collective bargainingprocess


Identification of the problem

Collection of data

Selection of negotiators

Climate of negotiations

Bargaining strategy and tactics

Conflict based

Armed truce

Power bargaining

Accommodation

Cooperation

Formalising the agreement

Enforcing the agreement


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Bargaining limits

Reed Richardson has the following advice for bargainers:

1. Be sure to set clear objectives for every bargaining item, and be sure you understand thereason for each.

2. Do not hurry.

3. When in doubt, caucus with your associates.

4. Be well prepared with firm data supporting your position.

5. Always strive to keep some flexibility in your position.

6. Don't concern yourself just with what the other party says and does; find out why.7. Respect the importance for face saving for the other party.

8. Be alert to the real intentions of the other party-not only for goals, but also for priorities.

9. Be a good listener.

10. Build a reputation for being fair but firm.

11. Learn to control your emotions and use them as a tool.

12. As you make each bargaining move, be sure you know its relationship to all other moves.

13. Measure each move against your objectives.14. Pay close attention to the wording of every clause negotiated; they are often a source of

grievances.

15. Remember that collective bargaining is a compromise process; There is no such thing ashaving all the pie.

16. Try to understand people and their personalities.

17. Consider the impact of present negotiations on those in future years.



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Content of a Labour Agreement

Purpose and intent of the parties Vacations

Scope of the agreement Seniority

Management Safety and health

Responsibilities of the parties Military service

Union membership and checkoff Severance allowance

Adjustment of grievance Savings and vacation plan

Arbitration Supplemental benefits program

Suspension and discharge cases Prior agreements

Rates of pay Termination date

Hours of work

Overtime and holidays


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Unions occupying centre stage only after1900

Mostly legal machinery used to resolve disputes

After independence, collective bargaining gained ground

Productivity bargaining is increasingly popular in recent times due toglobal competition, customer-focused manufacturing and marketing

etc.

Factors inhibiting collective bargaining

Employer's reluctance

Weak unions

Inappropriate legislative framework

Collective Bargaining In India



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Conditions Essential For CollectiveBargaining


To strengthen collective bargaining, both parties must carry out

negotiations in an atmosphere of mutual trust and faith, observing certain

essential things:

Unanimity among workers

Strength of both parties

positive attitude

willing to make some sacrifices

prepared to implement previously agreed things strictly

Representative authority

Representatives must understand the problems of both parties

Willing to discuss everything and not necessarily somethingrelated to wages and monetary benefits

Parties having respect toward each other

Carry out negotiations free from unfair practices


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Recommendations of NationalCommission on Labour, 1969

Minimum intervention from government

Strengthening the trade unions

Appropriate legal provisions governing

Compulsory recognition of unions

Prohibition and penalisation of unfair labour practices

Bargaining in good faith by both parties

Conferring legal validity and legitimacy on collective agreements

Intensification of workers' education

One union for one plant being popularised

Encouraging bipartite consultations and negotiations

hrm - excel books - chapter 23

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