Preparation For Negotiation

To Decide The Sources For Collective Bargaining

Identification Of The Issues Problems And Objectives To Be Discussed And Decide

Identification Of Negotiation Team

Deciding The Negotiation Procedure To Be Followed

Entering Into Labour Management Agreement

The mgt. Should themselves feel the demands of the workers and these must be satisfied before the trade union creates any ugly scene.This approach is known as POSITIVE COLLECTIVE BARGAINING. If on the other hand trade unions compel the mgt. to come on negotiation table by pressure of strikes and gherao and the mgt. comes for negotiation with a heart and has to listen and meet the demands of the workers that is known as NAGATIVE COLLECTIVE BARGAINING.

Both parties prepare themselves for negotiation. They collect data on different issues like wages and salary structure, overtime and other allowances, retirement and fringe benefits promotion and transfer procedure adopted by the other adjoining industries.

Mgt may collect data from:-

1.Primary Source . 2.Secondary Source.

Under the primary source the trade union may collect information from its own staff and from analysis of labour contracts in force else where in the country. And mgt. Collect information from the survey conducted by their research staff.

Mgt. collect information from their associations , central organizations and from the labour department of the state and central govt. and published reports conducted by other companies. The trade union also can collect the information from all above.

Personnel department must obtain top mgt. approval on different issues on which to negotiate.Some issues put forward by mgt. Specially on these contract and agreements which are going to expire. Trade union may also put their grievances and demand on the negotiation table for discussion. Negotiation will be easier if it is appreciated by both parties that they are expected to solve the problems of industry life .

The success of collective bargaining depends upon maturity ,intelligence of negotiating team. The team should be not be very large . Generally four to six members are sufficient. If issues are related with financially liability then senior most executive must be involve. But for small problem junior officer of personnel and financial dept. should be involve from union side .

It is essential that representative of the both parties has full authority to speak and take final decision.

The mgt. team should not always take up defensive position i.e. to go on resisting as demands are pressed by the union. The team should take a counter proposal instead of going on rejecting the demands. A rigid stand should be avoided by both parties. If the mgt. Outright reject the demands put forth by the union there is total dead lock then that issue may be referred to govt. or it lead to strike.

After long discussion and listening to the arguments put forward by both sides finally conclusions are drawn in form of labour contract or labour management agreement which is end process of collective bargaining. The agreement may be on the detail of working conditions, service terms and conditions, payments of wages and fringe benefits.

The agreement must be finalized in legal term in writing properly drafted clause-wise and must be signed by all the members of the negotiating team from both the parties.

It is required that the agreements should be printed and circulated among all the employees so that they may know what exactly has been agreed upon . there must be constant appraisal and to ensure that its being implemented in totality with full support of mgt.