Transcript Employment Relations

MGT 674
Employee Relations
Management
Ajaya Mishra
Session 5
Collective Bargaining …
Negotiations skills …
Collective bargaining …
 Collective bargaining is a process of decision-making
between parties representing employer and employee
interests which implies the “negotiation and continuous
application of an agreed set of rules to govern the
substantive and procedural terms of the employment
relationship”
[Windmuller et al. ( l987)].
 The term "collective bargaining" was first used in 1891 by
economic theorist Sidney Webb
 The roots of collective bargaining lie in the late nineteenth
century, when workers began to agitate for more rights in their
places of employment.
 Typically, the employees are represented by a union. Collective
bargaining actually begins with joining a union, agreeing to abide
by the rules of the union, and electing union representatives.
 For workers, collective bargaining is an excellent tool. Many
workplaces benefit from unionization, which allows workers to
speak together as a body to assert their rights. Employers also
benefit from collective bargaining agreements, which set out
clear expectations for both sides.
Features of Collective Bargaining …
 Emphasis on collective action not on individual
action.
 Concern both wit rule making and settlement of
employment conditions.
 The aim is to reach agreement eventually.
 Voluntary nature of activity not imposed by the law.
Everyone Negotiates
 Buying a car, house or other object for which the price may not
be fixed
 Establishing a salary, workplace tasks, office conditions, etc.
 Organizing team tasks or priorities
 Allocating household tasks
 Deciding how to spend a free evening
Negotiations …
 Negotiation is a dialogue between two or more people
or parties, intended to reach an understanding, resolve
point of difference, or gain advantage in outcome of
dialogue, to produce an agreement upon courses of
action, to bargain for individual or collective advantage,
to craft outcomes to satisfy various interests of two
person/ parties involved in negotiation process.
Negotiation is a process where each party involved in
negotiating tries to gain an advantage for themselves
by the end of the process. Negotiation is intended to
aim at compromise.
Negotiation Styles
 Accommodating: Individuals who enjoy solving the other party’s
problems and preserving personal relationships. Accommodators
are sensitive to the emotional states, body language, and verbal
signals of the other parties. They can, however, feel taken
advantage of in situations when the other party places little
emphasis on the relationship.
 Avoiding: Individuals who do not like to negotiate and don’t do it
unless warranted. When negotiating, avoiders tend to defer and
dodge the confrontational aspects of negotiating; however, they
may be perceived as tactful and diplomatic.
 Collaborating: Individuals who enjoy negotiations that involve
solving tough problems in creative ways. Collaborators are good
at using negotiations to understand the concerns and interests of
the other parties. They can, however, create problems by
transforming simple situations into more complex ones.
 Competing: Individuals who enjoy negotiations because they
present an opportunity to win something. Competitive
negotiators have strong instincts for all aspects of negotiating
and are often strategic. Because their style can dominate the
bargaining process, competitive negotiators often neglect the
importance of relationships.
 Compromising: Individuals who are eager to close the
deal by doing what is fair and equal for all parties
involved in the negotiation. Compromisers can be
useful when there is limited time to complete the deal;
however, compromisers often unnecessarily rush the
negotiation process and make concessions too quickly.
Strategy …
Purpose of Negotiations …
 Act assertively to achieve objectives
 Reduce resistance & minimise conflict
 Know how & when to accept the opinions,
values & will of others
 Work to achieve a WIN-WIN situation
Effective Negotiation
 Is an important communication skill
 Reaches the agreement that best meets both sides
requirements
 Should be conducted in a professional manner
 Be a solid foundation on which to build future
relationships
Conventional Negotiations …
 Focus on winning
 Assert positions/personal preferences
 Concede stubbornly
 Seek compromises based on arbitrary divisions (e.g. split the
difference)
 Engage in threats, bluffs or other negotiation tactics
Traditional Negotiations
Modern Negotiations
Has two sides
Enables strategic alliances to
be built
Is a form of warfare
Emphasises partnerships
Has opposing objectives
Builds relationships
Has a short sighted
approach
Is effective and long term
Preparing yourself
Preparation enables you to :
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Identify your objectives
Identify targets
Know your resistance point
Adopt the most suitable style
Time the interaction correctly
Achieve a deal
Negotiating Steps
 Develop ground rules
 Jointly identify issues
 Explore interests
 Develop objective standards
 Brainstorm options
 Evaluate options using standards
 Try to reach consensus decision
Adapting General Principles to Specific
Negotiations
 Pacing: fast or slow?
 Formality: high or low?
 Oral or written agreements: which are more binding and
inclusive?
 Bluntness of communication: direct or indirect?
 Time-frame: short or long term?
 Who negotiates: Equals or most competent?
Negotiations Model …
Management’s Strategy /
Objectives
•Employee relations
•Pay policy
Assess Bargaining Power
Decide Tactics
Analyze Claim and
Prepare Answer
Settlement published,
Implemented and
Monitored
Union's Strategy /
Objectives
•Employee relations
•Pay policy
Agreed Settlement
Assess Bargaining Power
Final Negotiations
Decide Tactics
Initial Negotiations
Prepare and Submit
Union’s Claim
Arbitration Act …
 The claim must be made in writing, explicitly mentioning the
details of the subject matter of the dispute and the remedy
sought, along with the evidence. Copy is to be given to the other
party.
 To the claim so filed, the other party shall submit its “objection”
(defence).
 The other party can, along with the “objection”, submit a
counter-claim.
 To the counter-claim, the claimant can file a “rejoinder”
 to be filed within three months from the date when the dispute
arose or when the arbitrator is appointed (whichever is later]
 to be filed within thirty days from the date of receipt of the claim
 same time limit as is mentioned in (b) above
 to counter, claim to be filed within 15 days from date on which
counter claim is filed
Challenge to Jurisdiction
 Any party not satisfied with the arbitrator’s decision on such an
objection may appeal to the Appellate Court within thirty days.
 The decision of the Appellate Court is final. But the filing of the
appeal shall not be deemed to have prejudiced the power of the
arbitrator to continue his proceedings and to pronounce his
decision before the petition is finally disposed of by the court.
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