Question: Define collective bargaining. Discuss the pre-requisites of successful collective bargaining. Describe the process of collective bargaining.

Answer:

Collective bargaining is a process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs.[1]The union may negotiate with a single employer (who is typically representing a company's shareholders) or may negotiate with a group of businesses, depending on the country, to reach an industry wide agreement. A collective agreement functions as a labor contract between an employer and one or more unions. Collective bargaining consists of the process of negotiation between representatives of a union and

employers (generally represented by management, or, in some countries such as Austria, Sweden and the Netherlands, by an employers' organization) in respect of the terms and conditions of employment of employees, such as wages, hours of work, working conditions, grievance procedures, and about the rights and responsibilities of trade unions. The parties often refer to the result of the negotiation as a collective bargaining agreement (CBA) or as a collective employment agreement (CEA).

Pre-requisites of successful collective bargaining:

7 Important Prerequisites for a Successful Collective Bargaining By Smriti Chand Business Management Advertisements :Important Prerequisites for a Successful Collective Bargaining are listed below:(1) The parties must attain a sufficient degree of organization. If the workers’ organization is weak, employers can say

that it does not represent the workers and will refuse to negotiate with it. Unless the workers are able to form strong and stable unions, collective bargaining will not be successful. (2) Freedom of association is essential for collective bargaining. Where there is no freedom of association, there can be no collective bargaining. Freedom of association implies that the workers as well as the employers will have the right to form an organization of their own to protect their interests.(3) There should be mutual recognition between both the groups. Collective bargaining cannot begin if the employers do not recognize the workers’ organization. The conflict of interests makes the two groups hostile to each other. They must recognize each other and realize that adjustment and understanding is essential for the achievement of organizational goals.(4) There must exist a favourable political climate, essential for successful collective bargaining. If the government encourages collective bargaining as the best method of regulating conditions of employment, it will be successful. Where the governments restrict trade union activities, there can be no collective bargaining.(5) Agreement must be observed by those to whom they

apply. The workers’ organization must be strong enough to exercise its authority over its members. If the trade union has no power over its members, collective bargaining will not be effectively implemented.(6) A give and take policy must prevail in the organization. The difference between two parties can be adjusted only by compromise so that an agreement can be reached. Neither side should be too rigid on its demand. Their attitudes should be flexible and both sides should be ready to give up some of its demands. Unions should not rigidly insist upon unreasonable demands and should be ready to reduce its demands to come to an agreement.(7) Sometimes unfair labour practices are resorted to by both the employers and the trade unions. These will restrict the development of collective bargaining. Unfair labour practices should be avoided by both the sides, as this will create an atmosphere of goodwill.

Process of collective bargaining:

Single-party bargaining:

Single-party bargaining may generally be initiated by:*.a union or an employer, within 60 days before the expiry of an existing collective agreement. To calculate the 60 days, the union or employer initiating bargaining needs to look at the employees whose work is covered by the proposed collective agreement, and ask:*.Are any of those employees covered by an existing collective agreement?*.If so, on what future date does that existing collective agreement expire, and how many days will pass before that date?*.If there is no existing collective agreement, a union can initiate bargaining at any time. An employer may only initiate bargaining if there is, or has previously been, a collective agreement covering at least some of the employees whose work is covered by the proposed collective agreement.

Multi-party bargaining:

Multi-party bargaining may generally be initiated by:*.a union or unions, provided that:*.at least one of the existing collective agreements will expire within 60 days, and*.all the other collective employment agreements will expire within 120 days.*.an employer or employers provided that:*.at least one of the existing collective agreements will expire within 60 days, and*.all the other collective employment agreements will expire within 120 days .Calculating the 60 day or 120 day period. A union or employer which is initiating bargaining needs to:*.look at those employees whose work is covered by the proposed collective agreement and*.ask whether any of those employees are covered by the collective agreement. If any employees are covered the union or employer needs to find out:*.when the existing collective agreement will expire and*.how many days will pass before that date. Where there is no existing collective agreement. A union can initiate bargaining at any time. An employer can initiate bargaining but only if:*.there is, or has previously been, a collective

agreement and*.it covers some employees whose work is covered by the proposed collective agreement. Employer opt out. An employer can opt out of bargaining for a multi-employer collective agreement (MECA). They can opt out where:*.a new MECA is proposed,*.a current MECA is being renegotiated or*.where employers are cited to join an existing MECA. However the ability to opt out of bargaining only applies at the time bargaining is initiated. An employer must give written notice to all other parties within 10 days of getting notice of initiation. Where an employer opts out, the employer or the union can then initiate bargaining for a single employer collective agreement. Even if an employer opts out, they can still be cited as a party to any future multi-party bargaining. Other requirements for collective bargaining. There are a number of other requirements that must be met by unions and employers when initiating collective bargaining.*.Unions must, if initiating multi-party bargaining, ballot their members prior to initiating bargaining. If an employer or employers initiate multi-party bargaining, unions may decide to ballot their members.*.Bargaining must be initiated by written

notice identifying the intended employer and union parties and the intended coverage (i.e.type of work) of the collective bargaining.*.Where only one employer is identified as an intended party to the bargaining, the employer must, within 10 days (or sooner if possible) of initiating bargaining or receiving notice, advise union and non-union employees whose work comes within the intended coverage.*.Where two or more employers are identified as intended parties to the bargaining, the employers must, within 15 days (or sooner if possible) of initiating bargaining or receiving notice, advise union and non-union employees whose work comes within the intended coverage.*.Employers have the right to request consolidation of bargaining when facing separate notices from two or more unions relating to similar coverage. Employers must do so within 40 days of receiving the first notice.*.At the commencement of bargaining, a union must state what membership ratification process it will follow prior to signing any resulting collective agreement. What must be in a collective agreement? A collective agreement must be in writing and be signed by each union and employer. It must contain:*.a coverage clause*.in most cases, a

provision setting out how the employer will protect employees in a sale, transfer, or contracting out of their business (see restructuring section for further information)*.a plain-language explanation of services available to help sort out employment relations problems*.a clause stating how the agreement can be varied*.the expiry date (or the event that will trigger expiry)*.a provision that complies with the Holidays Act requirement for employees to be paid at least time and a half for work on public holidays. Mediators can assist Mediators from MBIE are available to help parties during different phases of collective bargaining. Their services are free of charge. Mediators can provide assistance:*.when bargaining is being set up by the parties*.when the bargaining process arrangement is being negotiated*.when negotiations are stalled*.during the final settlement phase. Mediators can also:*.provide the parties with relevant information*.help with bargaining*.suggest options or provide recommendations for resolving any issues the parties disagree on. For assistance from a mediator, contact the Mediation Service directly. Resolving a collective bargaining dispute Here is a flow chart of the

key steps involved in resolving a collective bargaining dispute. Bargaining fee arrangements In some circumstances, the parties to collective bargaining can agree to a bargaining fee arrangement. Employment Relations Authority can assist in certain circumstances Where collective bargaining runs into difficulties, one or more of the bargaining parties can ask the Employment Relations Authority to assist them resolve their differences ("facilitation").The Authority can only facilitate bargaining in certain circumstances. These circumstances are where:*.there has been a serious and sustained breach of good faith that has undermined the collective bargaining*.the bargaining has been unduly protracted and extensive efforts to resolve the parties' differences have failed*.there has been a protracted or acrimonious strike or lockout action, or*.a strike or lockout has been proposed that would substantially affect the public interest. If the Authority agrees to assist the parties, the Authority member providing the facilitation will decide what process will be used to assist bargaining. The facilitation will be conducted in private. Bargaining continues during facilitation, and employers and employees are not prevented from using

strikes and lockouts. At the end of the facilitation process, the authority can make recommendations about one or both of the following:*.The process the parties should use to reach agreement.*.The terms and conditions of the collective agreement. The parties do not have to follow the Authority's recommendations, but they must consider the recommendations in good faith and cannot reject the recommendations without first considering them. The Authority may choose to make their recommendations public in the interests of encouraging a settlement. Remedy for serious and sustained breach of good faith A party to the bargaining may apply to the Employment Relations Authority to fix the provisions of a collective agreement. The Authority may, however, only fix the provisions of a collective agreement where:*.there has been a serious and sustained breach of good faith in relation to the bargaining*.other alternatives have been exhausted and*.fixing the provisions of the collective agreement is the only effective remedy available.

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