COLLECTIVE BARGAINING

Collective Bargaining
A major social invention
Assumes conflict
A mechanism for conflict resolution
Mgt. of IR by mutuality of agreement
A joint rule making process

Collective Bargaining (Ctd)

No enforcement
Promotes self- reliance

Develops good-will, trust/ confidence & Cooperation

An instrument of participation

Collective Bargaining (ctd)

A relation of give and take
Neither giving in nor giving away
A process of persuasion & reasoning
A win-win situation
Mgt. Retains right to manage
union safeguards employee interests

Pre-requisites Of Collective Bargaining

Freedom of association
Mutual trust, confidence & mutual respect
Parity of strength
Freedom to regulate
Legitimacy & validity conferred by state

Gains Of Collective Bargaining

Mgt. & labour draw up rights & duties for each other
Decisions made to work together
Mechanism for joint problem solving
Best way to improve productivity
Practical form of employee participation

Stages Of Collective Bargaining

Preparation
Negotiation
agreement
-Communication & feedback
Drafting the agreement
Administering / implementing the agreement
-Review & feedback

Preparation For Collective Bargaining

Anticipate statement of demands
Study/analyse agreements & conditions in
comparable organisations & their acceptability
Analyse grievances & arbitration awards
Collect data from different levels of employees/
management
Study provisions of labour laws

Preparation
Obtain economic information on company, area,
industry & nation
Examine ir policy
Collect complete information on all demands
Select right team of negotiators

Negotiating agreement:
Do not rush ( appreciate others viewpoint)
Choose & use right expression & attitude
Respect other party
No threat of any kind during negotiation
Whenever deadlock adjourn
Foster free & frank discussion

Negotiating agreement
Be reasonable based on facts
Look for proper time to find solutions
Be flexible, know when what is acceptable,
Use intuition & maintain good communication

Drafting of agreement:
Preconceive the design
Ensure & re-check contents
Use precise & accurate legal/ technical terms
Avoid ambiguity (readable to laymen)
Be factual and brief

Drafting of agreement:
Ensure intent, clarity, precision & understanding
Consider implications & consequences
Appreciate socio-economic & labour context
Include names, designations & organisations of
representatives
Reference to unions demand & purpose of
agreement in preamble
Period of operation

Drafting (Ctd)
Notice period for termination of agreement
Dates of implementation of various items in the
agreement
Provisions in conformity with law
Divide agreement into logical clauses in sequential
order

Administering agreement:
Introduce & explain agreement to all concerned
Agreement may be revised, altered & reopen
negotiation when:
Circumstances change
Company may restrict isolated agreements &
Understanding arrived at individually

Administering agreement:
Agreement is not comprehensive to cover
all problems
Implement agreement with tact and strategically
Operate grievance handling procedures

Techniques Of Bargaining
Take up one issue at a time
Calculate monetary implications & allocate
accordingly
Be a good listener & identify techniques which
give best results
Question the evidence offered

Techniques
Use only verified facts & data
Sidetrack unrealistic demands without ridicule
Use proper language & create an atmosphere of
trust
Do not threaten to lockout
Make tentative agreement on an issue & finalize
with signing of contract

Productivity Bargaining
Purpose = raise productivity
Basis = exchange
Emphasis = better utilisation of resources
Beneficial to employer and employee
Higher wages & increased leisure, etc. To labour
Change in technology, work practices etc & improved
efficiency

Prod. Barg. (Ctd)

Principal assumption = under-utilisation of
manpower
Key feature

= elimination of over time

Result

= management allowed to
play active role in
regulation

work

Principles of Prod. Bargaining

Coexistence of conflict & commonality of interests
Between labour and management
Team work & joint problem solving
Identify areas of difference, value & opinion
Collect information & discuss to resolve differences
Distribute benefits accruing from change

Principles
Believe that change possible only through:
mutual agreement & involvement
Sharing power and decision making

Process of Prod. Bargaining

Conduct feasibility study
Examine total work situation
Analyse to identify nature of problem in areas of:
i production
ii Economic situation
Iii Sociological issues
iv earnings

Process

Share the prosperity related to productivity index

Design & develop a wage system incorporate job
worth + Provide for performance based variables
Devise, negotiate & implement productivity
agreement

Implications for I.R.

Creative bargaining for change
Joint job regulation & decision making
Reduction in manning & more flexibility among operators
Simplification of grading system & reduction in seniority
levels
Stable work week
Job enrichment & increased earning

Implications
Better employment conditions
A socio-economic innovation impacting on roles,
rewards & relations
Combination of socio-psychological approach &
institutional I.R. + Labour economic approach