Collective Bargaining

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Transcript Collective Bargaining

 Collective
bargaining generally
includes negotiations between the
two parties (employees’
representatives and employer’s
 Collective bargaining consists of
negotiations between an employer
and a group of employees that
determine the conditions of
 The first thing to be done is to determine
whether there is actually any reason to
negotiate at all.
 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.
 A correct understanding of the main issues to be
covered and intimate knowledge of operations,
working conditions, production norms and other
relevant conditions is required.
 Discuss:
Here, the parties decide the ground
rules that will guide the negotiations.
Propose: This phase involves the initial
opening statements and the possible options
that exist to resolve them.
 The exchange of messages takes place and
opinion of both the parties is sought.
 Bargain:
negotiations are easy if a problem
solving attitude is adopted. This stage
comprises the time when ‘what ifs’ and
‘supposes’ are set forth and the drafting of
agreements take place.
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.
To settle disputes/conflicts relating to wages
and working conditions
To protect the interests of workers through
collective action
To resolve the difference between workers
and management through voluntary
negotiations and arrive at a consensus
To avoid third party intervention in matters
relating to emloyment
Collective: workers and management jointly
arrive at an amicable solution through
Strength: the bargaining strength of both
parties is equal. It is industrial democracy at
Flexible: it is a group action – representative
of workers and management. It believes IN
give and take policy
 Voluntary:
both workers and management
come to table voluntarily and
implementation of the agreement reached is
also voluntary
Power Relationship: workers wants to gain the
maximum from management and management
wants to extract the maximum from workers by
offering as little as possible
Representation: In Collective bargaining the
employer does not deal directly with workers.
He carries out negotiations with representatives
of unions who are authorized to bargain with
employer on work-related matters
Bipartite Process: the employer and employee
negotiate the issues directly, face to face across
the table. There is no third party intervention
Conjunctive / distributive bargaining
Each parties try to maximize their gain
2. Cooperative Bargaining
When companies hit by recession
3. Productivity Bargaining
A standard productivity index is finalized
through negotiation
4. Composite Bargaining
Bargaining to withstand liberalization,
automation, farming out business to
outsiders and survive