Lecture 07Collective Bargaining

M Akbar Ali, bpm ppmalibpm@yahoo.com+880 1711 806 888

After reading this chapter you should have a goodunderstanding of Definition, concept & Characteristics of Collective Bargaining, Importance & Functions of Collective Bargaining, Principles, Forms & Levels of Collective Bargaining ProcessPre-requisite for Successful Collective Bargaining Third Party involvement in Collective Bargaining.

15*The Collective Bargaining ProcessMeaning:The term collective bargaining is made up of two words:Collective:Group action through representation and Bargaining:Negotiating, which involves proposals and counter-proposals, offers and counter-offers. Thus it means collective negotiations between the employer and the employee, relating to their work situations.

15*The negotiation, administration, and interpretation of a written agreement between two parties, at least one of which represents a group that is acting collectively, that covers a specific period of time.

The Collective Bargaining ProcessAccording to the Encyclopedia of Social Sciences, Collective bargaining is a procedure, by which employer and a group of employees agree upon the conditions of work.The ILO Workers Manual defines collective bargaining as, negotiation about working conditions and terms of employment between an employer, a group of employers or one or more employers organizations, on the one hand, and one or more representative workers organization on the other with a view of reaching an agreement.

The solution to common problems between employers and trade unions can be found directly through negotiation between both parties and in this context the scope of collective bargaining is very great. If it works well, it develops a sense of self-responsibility and self-respect among the employees concerned and thus significantly paves the way for improved employee morale and productivity.Collective Bargaining restricts managements freedom for arbitrary action and thereby management learns a new code of behavior by conceiving of the union as a method of dealing with employees. The management comes to know the grievances of workers in advance to take precautionary measure. Opens up top and bottom channel of communication CB if properly conducted, result in the establishment of a harmonious industrial climate to help nations socio-economic development

Where there is only one trade union, that shall be taken as the Collective Bargaining Agent for that establishmentWhere the number of trade union is more than one, the Registrar shall take necessary steps to elect the CBA.Trade unions having members of more than one third of the total workers employed in the establishment can apply for contesting in the election.Upon request from the Registrar, the employers shall submit the list of all workers employed in the establishment, excluding those whose period of employment in the establishment is less than three months or workers with records of insubordination and negligence-to-dutyThen, the Registrar shall send a copy of the list to each of the contesting trade unions and shall also affix a copy in a conspicuous place of her/his office and another copy of the list in a conspicuous place of the establishment.After amendments, alterations or modifications, if any, the Registrar shall prepare the final copy of the list of workers employed in the establishment . The list shall be deemed to be the list of voters and every person whose name appears in the list shall be entitled to vote to elect the Collective Bargaining Agent.For the purpose of holding the secret ballot to determine the CBA, the Registrar shall do the following: a. Fix a date and intimate the same to the contesting trade unions and the employer. b. Set the sealed ballot boxes, which are sealed in presence of the representative of each of the contesting trade unions if any one present c. Conduct the poll in the polling stations where the representative of the contesting trade unions shall have the right to enter d. Count the votes in presence of the representative of the contesting trade unions if anybody is present e. Declare the result and the name of the elected Collective Bargaining Agent.8. Where a registered trade union is declared as the Collective Bargaining Agent according to the above rules, no such application for the determination of the CBA shall be entertained within the subsequent two years.

The Collective Bargaining Agent in relation to an establishment or group of establishments shall be entitled toUndertake collective bargaining with the employer or the employers on matters connected with the employment, non employment or terms of employmentRepresent all or any of the workmen in any proceedingsThe right of litigation for and on behalf of the one or all of the workers under this ActGive notice of and declare a strike in accordance with provisions of the lawNominate representatives of workmen on any committee, fund constituted as per the provisions of law or agreements.

1. Collective bargaining as a process of social changeCollective bargaining enhances the status of the working class in the society. Wage earners have enhanced their social and economic position in relation to other groups. Employers have also retained high power and dignity through collective bargaining.

2. Collective bargaining as a peace treatyCollective bargaining serves as a peace treaty between the employers and employees. However the settlement between the two parties is a compromise.

3. Collective bargaining as an industrial jurisprudenceIt is a method of introducing civil rights into industry. It establishes rules which define and restrict the traditional authority exercised by employers over their employees placing part of the authority under joint control of union and management.

For both union and managementShould give due consideration to hear the problems on both sides. Both should analyze the alternatives to arrive at the best solution.Mutual respect on both the parties. Both must have good faith and confidence in discussion and arriving at a solution.Effective leadership is required on both sides to moderate discussions and create confidence.Both should observe the laws and regulations in practice in arriving at a solution.Labor should be given due consideration in wage fixation, in working conditions, bonus etc.

For managementShould think of realistic principles and policies for labor regulations. If there are more than one union, the management can recognize one which is having the support of majority of workers. Should follow a policy of goodwill, and cooperation in collective bargaining.Need not wait for trade union to represent their grievances for settlement.Should give due consideration to social and economic conditions of workers in CB.For Unions Should avoid undemocratic practices.Have to recognize their duties to the management also before emphasizing their demands.Have to consider the benefits to all workers rather than a section of workers.Strike lock-outs should be resorted to, only as a last measure.

The Collective Bargaining Process

Fundamentals of Human Resource Management 8e, DeCenzo and RobbinsPreparing to negotiate Fact-gathering: Includes internal information (e.g., employee performance records, overtime) and external (i.e., data on what similar organizations are doing and the economy). Goal-setting: Management decides what it can expect from the negotiation. Strategy development: This includes assessing the other sides power and tactics.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Negotiating at the bargaining tableEach side usually begins by publicly demanding more than they are willing to accept. More realistic assessments and compromises take place behind closed doors. After oral agreement, a written contract is submitted to the union for ratification.

1. Negotiating teamNegotiating team should represent all groups including production, finance and industrial relations experts. 2. Recognition of unionsThe management should recognize the trade union and analyze the facts in their representation of grievances. Mutual understanding encourages mutual agreement. 3. Open mindBoth the management and union should have open minds to listen and appreciate each others point of view with flexibility and adjustment.4. Home Work on demandsThe union and management have to collect relevant data relating wages, conditions of work, welfare schemes, cost of benefits.5. Routine problemsThe management and unions have to identify the grievances on routine basis and take appropriate action then and there.6. Internal union democracyTrade unions should encourage internal union democracy by consulting the rank and file members.7. Importance to outputShould give importance to output, quality of the products, companys image etc.

Involves five key activities:Obtaining substantial resultsInfluencing the balance of power between partiesInfluencing the atmosphereInfluencing the constituencyInfluencing the procedures.

A negotiation could result in any of the following situations:Win-loseLose-winLose-loseWin-win

To achieve win-win agreements, the parties should keep the following points in mind while negotiating:Focus on their interests, not take positionsFocus on the problem, not the personInvent multiple solutionsBe creativeExpand the pieNon-specific compensation*Log rollingBridge the gap in perceptions through reformulation of the issue*mutual praise1. The exchanging of political favors, especially the trading of influence or votes among legislators to achieve passage of projects that are of interest to one another.2. The exchanging of favors or praise, as among artists, critics, or academics.[From the early American practice of neighbors gathering to help clear land by rolling off and burning felled timber.]

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Bargaining Power: The power of labour management to achieve their goals through economic, social, or political influence.Union Bargaining Power Strike Picketing Boycott Management Bargaining Power Lock out Transfer operation in other location Subcontract

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