10. Collective bargaining.ppt
- 2. Collective bargaining It is a process between employers and employees to reach an agreement regarding the rights and duties of people at work. Collective bargaining aims to reach a collective agreement which usually sets out issues such as employees pay, working hours, training, health and safety, and rights to participate in workplace or company affairs.
- 3. Definition “Collective bargaining is an agreement between a single employer or an association of employers on the one hand and a labor union on the other, which regulates the terms and conditions of employment (Tudwig Teller) ―Collective bargaining takes place when a number of work people enter into a negotiation as a bargaining unit an employer or group of employer with the object of reaching an agreement on conditions of the employment of the work people‖ (J.H. Rishardwon)
- 4. Concept •Is a procedure by which the terms and conditions of workers are regulated by Agreements between their bargaining agents and employers. •The basic objective is to arrive at an agreement on Wages and other conditions of employment. •The process of bargaining starting with divergent views but ultimately try to reach a compromise, making some sacrifices. •Before arriving at an agreement, proposals and counter proposals; offers and counter offers are put to debate and discussion.
- 5. • The negotiations take place in an atmosphere of give and take. Every attempt is made to arrive at an agreement that would reflect the joint thinking of management and the representatives of employees. It is thus, a flexible, collective and cooperative way of resolving issues that affect both management and workers in a democratic manner.
- 6. Features Collective Strength Flexible Voluntary Complementary Continuous Dynamic Power relationship Representation Bipartite process Complex
- 7. Collective- it is collective in two ways Strength- across the table both the parties bargain from a position of equal strength; it is industrial democracy at work Flexible- it has sufficient flexibility ; no party can afford to be inflexible and rigid in such situations, Voluntary- both workers and management come to the negotiating table voluntarily in order to have a meaningful dialogue on various troubling issues. Complementary- each party needs something that the other party has Continuous- it does not commence with negotiations and end with an agreement. The agreement is only a beginning of collective
- 8. Dynamic- because the way the agreements are arrived at, the way they are implemented, the mental make-up of the parties keeps changing. Power relationships- workers wants to gain maximum from management and vise versa by offering as little as possible. To reach a consensus , both have to retreat from such positions and accept less than what is asked and give more than what is an offer. Representations- the chief participants in collective bargaining do not act for themselves. Bipartite process- there is no third party intervention. Complex- involving a number of procedures, techniques and tools.
- 9. Objectives To provide an opportunity to the workers, to voice their problems on issues related to employment. To facilitate reaching a solution that is acceptable to all the parties involves. To resolve all conflicts and disputes in a mutually agreeable manner. To prevent any conflict/disputes in the future through mutually signed contracts. To develop a conductive atmosphere to foster good organizations relations. To provide stable and peaceful organization (hospital) relations. To enhance the productivity of the organization by preventing strikes lock – out etc.
- 10. The substance of bargaining Wages & working conditions Work norms Incentive payments Job security Changes in technology Work tools, techniques and practices Staff transfers and promotions Grievances Disciplinary matters Health and safety Insurance and benefits Union recognition Union activities/responsibilities Management rights
- 11. Types of bargaining Conjunctive/distributive bargaining Cooperative bargaining Productivity bargaining Composite bargaining
- 12. Conjunctive/distributive bargaining The parties try to maximize their respective gains. They try to settle economic gains such as wages, benefits, bonus etc. through a zero-sum game. Unions negotiate for maximum wages. Management wants to yield as little as possible- while getting things done through workers.
- 13. Cooperative bargaining when companies are hit by recession, they cannot offer the kind of wages and benefits demanded by workers. At the same time they cannot survive without the latter’s support. Both parties realize the importance of surviving in such difficult times and they are willing to negotiate the terms of employment in a flexible way. labor may accept a cut in wages in return for job security and higher wages when things improve.
- 14. Productivity bargaining in this method, worker’s wages and benefits are linked to productivity. ◦ A standard productivity index is finalized through negotiations initially. ◦ Workers have to perform at high levels to beat the index. ◦ If they are able to exceed the standard productivity norms workers will get substantial benefits. ◦ Management gains control over workplace relations and is able to tighten the norms still further in future negotiations
- 15. Composite bargaining it is alleged by workers that productivity bargaining agreements have increased their workload. As a result labor has come to composite bargaining In this method, labor bargains for wages, as usual but goes a step further demanding equity in matters relating to work norms, employment levels, environmental hazards …..
- 16. Collective bargaining process Collective bargaining generally includes negotiations between the two parties (employees‘ representatives and employer‘s representatives). Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment. Often employees are represented in the bargaining by a union or other labor organization.
- 17. Collective bargaining process The result of collective bargaining procedure is called the collective bargaining agreement (CBA). Collective agreements may be in the form of procedural agreements or substantive agreements. Procedural agreements deal with the relationship between workers and management and the procedures to be adopted for resolving individual or group disputes. A substantive agreement deals with specific issues, such as basic pay, overtime premiums, bonus arrangements, holiday entitlements, hours of work, etc.
- 18. Steps
- 19. Steps 1. Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. In this phase both the employer‘s representatives and the union examine their own situation in order to develop the issues that they believe will be most important. 2. Discuss: Here, the parties decide the ground rules that will guide the negotiations. A process well begun is half done and this is no less true in case of collective bargaining. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached.
- 20. Steps 3. Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. In a word, this phase could be described as brainstorming‘. The exchange of messages takes place and opinion of both the parties is sought. 4. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when ‘what ifs‘ and ‘supposals‘ are set forth and the drafting of agreements take place.
- 21. Steps 5. Settlement: Once the parties are through with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.
- 23. The process Identification of the problem Collection of data Selection of negotiators Climate of negotiations Bargaining strategy and tactics Formalizing the agreement Enforcing the agreement
- 24. Identification of the problem the nature of the problem influences whole process. whether the problem is very important that is to be discussed immediately or it can be postponed for some other convenient time, whether the problem is minor so that it can be solved later with other party’ s acceptance on its presentation etc… Collection of data both management and labor initially spend considerable time collecting relevant data relating to grievances, disciplinary actions, transfers & promotions, layoffs, overtime, former agreements covering wages, benefits, working conditions etc………..
- 25. Selection of negotiators the success of collective bargaining depends on the skills and knowledge of the negotiators. Effective negotiators should have a working knowledge of trade unions principles, operations, economics, psychology and labor laws. Climate of negotiations both parties must decide an appropriate time and climate for initial negotiations. At this stage the parties must determine whether the tone of the negotiations is going to be of mutual understanding or worst.
- 26. Bargaining strategy and tactics the strategy is the plan and the policies that will pursued at the bargaining table. tactics are the specific action plans taken in the bargaining sessions. It mainly covering the following aspects; ◦ Likely union proposals & mgt responses to them ◦ A listing of mgt demands, limits of concessions and anticipated union responses ◦ Development of a database to support proposals advanced by mgt and to counteract union demands. ◦ A contingency operating plan if things do not move on track.
- 27. Formalizing the agreement when a solution comes through; a formal document must be prepared expressing everything in a simple, concise form. After this both parties must sign the agreement and abide by its terms and conditions during the entire term of the contract. Enforcing the agreement collective bargaining does not come to an end with the signing of the agreement. for the agreement to be meaningful and effective; both parties must adhere to the conditions agreed upon and implement everything accordingly.
- 28. THANK YOU