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HRM - Excel Books - Chapter 23

HRM - Excel Books - Chapter 23

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Published by: Soumya Jyoti Bhattacharya on Apr 24, 2010
Copyright:Attribution Non-commercial


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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


Important features of Collective Bargaining 
         Collective Strength Flexible Voluntary Continuous Dynamic Power relationship Representation Bipartite process complex

Collective Bargaining


Objectives of collective bargaining 
   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

Collective Bargaining


The substance of bargaining
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Wages and 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

Collective Bargaining


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 to the 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 other matters relating to work norms, employment levels, etc in return for agreeing to the tight productivity norms set by management.

Collective Bargaining


The Process of Collective Bargaining Steps in the collective bargaining process 
    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 

Collective Bargaining


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 the reason 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 as having all the pie. 16. Try to understand people and their personalities. 17. Consider the impact of present negotiations on those in future years. Collective Bargaining


Content of a Labour Agreement
Purpose and intent of the parties Scope of the agreement Management Responsibilities of the parties Union membership and checkoff Adjustment of grievance Arbitration Suspension and discharge cases Rates of pay Hours of work Overtime and holidays Vacations Seniority Safety and health Military service Severance allowance Savings and vacation plan Supplemental benefits program Prior agreements Termination date

Collective Bargaining


Collective Bargaining In India 
   Unions occupying centre stage only after 1900 Mostly legal machinery used to resolve disputes After independence, collective bargaining gained ground Productivity bargaining is increasingly popular in recent times due to global competition, customer-focused manufacturing and marketing etc. Factors inhibiting collective bargaining    Employer's reluctance Weak unions Inappropriate legislative framework 

Collective Bargaining


Conditions Essential For Collective Bargaining
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 Representatives must understand the problems of both parties Willing to discuss everything and not necessarily something related to wages and monetary benefits Parties having respect toward each other Carry out negotiations free from unfair practices

Representative authority

Collective Bargaining


Recommendations of National Commission 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

Collective Bargaining

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