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"BARGAINING" - haggling - one-time relationships such as a one-time purchaser or a claimant to damages
It is a technique that has been adopted by union and
management to reconcile their conflicting interests.
It is called collective because the employees, as a
group, select representatives to meet and discuss differences with the employer
The negotiations for collective bargaining require joint
sessions of the management.
“is a process of accommodation between two institutions which have both common and conflicting interests.” “Collective bargaining takes place when a number of work people enter into a negotiation as a bargaining unit with an employer or group of employers with the object of reaching an agreement on the conditions of the employment of the work people.”
ILO - Right to Organize & Collective Bargaining Convention (No. 98), 1949
"Voluntary negotiation between employers or
employers' organizations and workers' organizations, with a view to the regulation of terms and conditions of employment by collective agreements."
way process Agreement & Mutually settling it Continuous process Group Action Flexible Fluidity & ample scope for a compromise for a mutual give & take before the final agreement is reached Dynamic & Static .CHARACTERISTICS 2 .
Cont…. Industrial democracy at work. It is a device and a procedure used by wage earners to safeguard their interests. Not a Competitive process but a Complementary process An art .joint formulation of company policy on all matters which directly affects the workers .an advanced form of human relations.
. It is a method used by TU to improve the terms and conditions of employment of their members. of bargaining.SEVERAL ESSENTIAL FEATURES CB to collective agreements bcoz collective bargaining the process or means. It seeks to restore the unequal bargaining position btwn employer & employee. Collective bargaining may not always lead to a collective agreement. and collective agreements to the possible result.
Where it leads to an agreement. . because it does not create the employer-employee relationship. The process is bipartite. it modifies. rather than replaces. or where collective bargaining impinges on government policy. the individual contract of employment. but in some developing countries the State plays a role in the form of a conciliator where disagreements occur.
Provides a climate for smooth progress Ensures that managements do not take any unilateral decision . Helps in easing out many minor differences and there are many instances in which even some major disputes are set to be settled without any work stoppage or outside intervention.OBJECTIVES & SIGNIFICANCE Technique adopted by unions & management for compromising their conflicting interests. Plays a significant role in improving the labourmanagement relations and in ensuring industrial harmony.
It differs from arbitration (the solution is based on a decision of a third party). and sometimes it may even displease both parties. Arrangements resulting from collective bargaining usually represent the choice or compromise of the parties themselves.ADVANTAGES CB .the advantage of settlement through dialogue & consensus rather than through conflict & confrontation. . Arbitration may displease one party because it usually involves a win/lose situation.
a collective agreement may provide for methods by which disputes btn the parties will be settled. In that event the parties know beforehand that if they are in disagreement there is an agreed method by which such disagreement may be resolved. CB agreements often institutionalize settlement through dialogue. For instance. .
retrenchments. transfers.g. CB is a form of participation. discipline. layoffs & work assignments are excluded by law from the scope of collective bargaining. . e. promotion. modernisation. transfer. production norms. It is a form of participation also bcoz it involves a sharing of rulemaking power btn employers & unions in areas which in earlier times were regarded as management prerogatives. in some countries such as Singapore and Malaysia. However. Both parties participate in deciding what proportion of the 'cake' is to be shared by the parties entitled to a share. redundancy. promotions.
. either generally or more usually on matters covered by the agreement. CB agreements sometimes renounce / limit the settlement of disputes through TU action. Such agreements have the effect of guaranteeing industrial peace for the duration of the agreements.
Social partnership may be described as a partnership between organised employer institutions & organised labour institutions designed to maintain nonconfrontational processes in the settlement of disputes which may arise between employers and employees . CB is an essential feature in the concept of social partnership towards which labour relations should strive.
once the relationship of trust and understanding has been established. For instance. The process. a long course of successful and bona fide dealings leads to the generation of trust. CB has valuable by-products relevant to the relationship between the two parties. It contributes towards mutual understanding by establishing a continuing relationship. creates an attitude of attacking problems together rather than each other .
This is of value also to employers who are faced with constant changes in union membership and consequent inter-union rivalries resulting in more disputes in the workplace than otherwise. In societies where there is a multiplicity of unions and shifting union loyalties. . CB and consequent agreements tend to stabilise union membership. For instance. where there is a collective agreement employees are less likely to change union affiliations frequently.
. Most important of all . The continuing dialogue tends to improve relations at the workplace level btn workers and the union on the one hand and the employer on the other. This improvement can be at different levels.CB usually has the effect of improving IR. It also establishes a productive relationship between the union and the employers' organization where the latter is involved in the negotiation process.
& The Contract .PROCESS Pre-negotiation Phase The selection of Negotiators The Strategy of Bargaining The Tactics of Bargaining.
The negotiation stage & 2. The stage of contract administration .2 STAGES 1.
A.Some managements bids the time till trade unions put proposals for trade unions B.PROCESS OF NEGOTIATION BARGAINING Preparation for Negotiation.Positive Bargaining: Managements submit their own proposals for consideration by labour representatives .Negotiation may commence at the instance of either party-of labour or of management.
Important to study the status of the labour organization (Union) Previous negotiations.IMPORTANCE OF PRE-NEGOTIATION PHASE Highly Vital for both management and employees. back ground and personality of the particular union negotiators to be studied. .
APPROVAL FROM TOP MANAGEMENT The specific proposals of the company including the objectives of the negotiations The appraisals of the cost of implementing the proposals An approval in principle of the demands over which bargaining to be made (Demands to be accepted and not to be accepted) .
. They are more inclined to concentrate on a discussion of in grievances or problems of interest to one group rather than to the union as a whole.NEGOTIATION TECHNIQUE AND PROCEDURE Undertaken by a representative of each party or committee or by line or staff personnel. more likely to disorderly. The negotiation committee may be composed of 3 to 6 members. They are more difficult to assemble. A committee should be small. otherwise Committees become unwary.
Mgt . Tactics . . Keep one’s eyes on the entire package.particular action that are taken with bargaining table. Keep company personal informed of the progress of bargaining sessions.mapping out plan and basic policies to be in the bargaining process. Avoid mutual agreement clauses which would prevent mgt action. A workprocedure concession may eventually cost more than a substantial pay increase.the right to manage the firm subject to challenge by the union under the contract.STRATEGY OF BARGAINING Strategy .
Develop agreements where the union leader can always maintain that they “won” union leaders have to for selection on their record and management can more frequently afford the appearance of having “lost”. . Determine the point at which the company is willing for the union to go on strike. The union is fully aware of the fact that the strike is its most potent bargaining weapon.
after you have heard all the facts. Be willing to listen. Know something about the personal history of the other party’s representatives. Always bear in mind the fact that you to do what is right and fair . There would be time enough for you to worry about things and say “no”. Introduce everybody. Give everyone an opportunity to state his position and point of view.TACTICS OF BARGAINING Arnold Campo For Union & Management Be friendly in negotiation.
Avoid Sharp practices. Define each issue clearly and unambiguously or detail in the contract to ensure greater flexibility. Both parties should strive to maintain an objective approach to a problem or grievance. . Do not attempt to guide the discussion along a straight line which goes straight to the solution of the problems.
but consider such matters as are of common interest to both. at the outset.For the management The management must. . make sure that the labour it is going negotiate with. Don’t limit contracts with the union to controversial subjects. are really the representatives of the workers. Don’t use lawyers as negotiators unless they intimate knowledge of industry relations.
What has been agreed upon between management and represent of union meetings of supervisors should be called with effectively .FOLLOW-UP ACTION The collective bargaining should be printed and circulated among the employees they can know the reality about it.
which must be observed by both the parties. The bargaining is carried on daily .CONTACT MANAGEMENT When the process of a negotiation has been completed. it is the time to sign the contract. both the management and trade unions are required to honor it in letter and sprit. the terms and conditions. Once an agreement is signed. Smith has rightly observed “ An agreement is merely the frame work for everybody relationships….
Give credit to the trade union for anything work while achieved by it. and what appear to be unseasonable demands on the workers or their representatives. The management should avoid paternalism and strive to treat the trade union representatives and its employees as equals. Many restrictive practices.For Management The management should be available for open discussion/ conferences with works representatives so that it may acquire first hand knowledge of the changing attitude and problems of its employees. will disappear if the management strives give regular employment to its workers .
For Trade Unions That is the responsibility of the trade unions that their members understand terms of the agreement. . The union representatives should make themselves available for a conference whenever they are required to do so by the management. it has reached with the management.
Fringe benefits Non-Economic goals: Worker’s satisfaction with his job. The working conditions.GOALS TO BE ACHIEVED BY WORKERS Economic goals: Wages. Hours of work. protection of the Union as a growing institute (right to union) .
discharge. . promotion.GOALS TO BE ACHIEVED BY MANAGEMENT Control of the organization. Maintaining its ability to manage with a high degree of flexibility and efficiency of operation Control of hiring. lay off Personnel techniques of management Lay down fair rates of wages and norms of working conditions.
Promote the stability and prosperity of industry. Bring social change through acceptable solutions.Cont… Achieve an efficient operation of the plant Promote an efficient operation of the plant. .
e.PRACTICE OF COLLECTIVE BARGAINING The consultative machinery for now practices in India at almost every level i. At the level of undertaking: Works Committee & Joint committees At the industrial level: Wage Boards & Industrial Committees At the state level: Labour Advisory Board At the national level: Indian Labour Conference & Standing Labour Committee .
Tripartite bodies The Indian labour conference Standing labour committee Committee on conventions Industrial committee .The bipartite consultative machinery The works committee and The joint management councils.
negotiations involve the public interest such as where negotiations are on wages which can impact on prices .not for one employer but for several. except when states negotiate with each other. collective interests become a feature for both parties to the bargaining process.specifically is an industrial relations mechanism or tool .NEGOTIATION VS COLLECTIVE BARGAINING CB . or non-existent.collective interest as the negotiations are for the benefit of several employees . In labour relations. NEGOTIATIONS (non-employment situations) collective interests are less.
. Govts intervene when necessary in CB bcoz the negotiations are of interest to those beyond the parties themselves. When a party / the parties seek the support of the public. especially where negotiations have failed & work disruptions follow.
.NATURE OF THE RELATIONSHIP Between the parties in CB distinguishes the negotiations from normal commercial negotiations (here buyer may be in a stronger position as he could take his business elsewhere). In the employment relationship the employer is( a buyer of services) & the employee (the seller). and the latter may have the more potent sanction in the form of trade union action.
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