Collective Bargaining & Negotiation

Module 2

Meaning

• Collective bargaining is a process of joint work places.
• It is the process of negotiation between representatives for the purpose of agreeable conditions of employment harmonies working status at the work.

• It is called 'collective' because both the employer and the employee than as individuals.

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• It is known as 'bargaining' because the method of reaching an agreement and counter proposals, offers and counter of.

Definition

International Labor Organization (ILO) has defined as "Negotiation about working conditions and between and employer and a group of employee, organization with a view to re wherein the terms serve as a code of defining of each party in their employment /indust another."

Objective of collective bargaining

1. To foster and maintain cordial and between the employer/management and.
2. To protect the interests of both the employees.
3. To keep the outside, i.e., the government bay.

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4. To promote industrial democracy.

Following are the essential prerequisites for co

• Strong representative trade union: In collective existence of a strong representative trade union in in constitutional means for settling the disputes.
• Management tries to Integrate various parties and enlightened management which may integrate employees, owners, government, consumers and s.
• Agreement on Objective :- In collective Barg made on the basic objectives of the organization b the employee and on mutual rights and liabilities.

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• Method of Negotiation :- There is a demo negotiation process. The existence of fact find willingness to use new methods and roles - industrial problems.
• Necessary Records must be kept :- Prop problems should be maintained for future refere.
• Shop floor (Plant) level :- Collective bargair conducted at shop floor level. If there is more th firm, the local management should be delegat to negotiate with the local trade union.
• Unfair practices must be avoided :- In orc bargaining functions properly unfair labour avoided by both the parties.
• Arbitration :- The contract must include case there is a dispute. The institution of represents a fair and democratic attempt disputes.

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• In India, the first collective bargaining agre 1920 at the instance of Mahatma Gand management relations between a gro their workers in the textile industry in Ahme.

Features / Characteristics of Collective Bargaining

• 1-Collective Process

  The representatives of both the management participate in it.

  Employer is represented by its delegates a employees are represented by their trade unio.

  Both the groups sit together at the negotiating agreement acceptable to both.

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• 2-Continuous Process
  • It is a continuous process. It does not comme and end with an agreement.
  • It establishes regular and stable relationship involved.
  • It involves not only the negotiation of the co administration or application of the contract goes on for 365 days of the year.
• 3.Flexible and Mobile
  • It has fluidity. There is no hard and fast rule 1 an agreement.

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  • There is ample scope for compromise.
  • A spirit of give-and-take works unless final ag both the parties is reached.
• 4-Bipartite Process

  C.B. is a two party process.

  Both the parties -employers and employees action.

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  There is no intervention of any third party.

  It is mutual give - and -take rather than a ta of arriving at the settlement of a dispute.

• 5-Dynamic

  C.B. is a dynamic process because the way ag the way they are implemented, the mental ma keeps changing.

  As a result, the concept itself changes, grows a.

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  It is scientific, factual and systematic.

• 6-It is an Art

  Collective bargaining is an art, an advanced fo

• 7 Discipline in Industry

  C.B. is an attempt in achieving and maintainin industry.

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• 8 Industrial Juris prudence

  It is an effective step in promoting industrial j

1. Functions of Collective Bargaining

2. (1) C.B. as a technique of long- run social change

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3. (2) C.B. as a peace treaty between two parties in
4. (3) C.B. as a system of industrial jurisprudence.

• 1-Long- Run Social Change
  • C.B. in its broader aspect is not confined relations between employers and employ.
  • C.B. adapts itself to the changing social, lega environment. It is a source of stability in a ch.
  • The wage- earners have enhanced their soci in absolute terms and in relation to other same time, the management has attained a and dignity.

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• 2-Peace Treaty

  C.B. is a sort of peace treaty between two par.

  However, the settlement between the two pa.

  The extent to which each side is willing to acce original bargaining demand depends, in part, c vis its opponent.

  • "The compromise is a temporary truce with completely satisfied with the results.

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  • Each would like to modify it at the earliest o.
  • Since the contract is almost always of a shor immediately to prepare a new list of demand bargaining strength in anticipation of the nex.
  • But in a majority of cases, C.B. agreements a opponent fires a shot.
• 3-Industrial Juris prudence

  : C.B. creates a system of 'industrial jurisprude.

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  It is a method of introducing civil rights into in that management be conducted by rules rathe decisions."

  It establishes rules which define and restrict th exercised by employers over their employees, authority under the joint control of union and.

  • It is a rule- making or legislative process, in t formulates the terms and conditions under v management will cooperate and work togeth stated period.
  • - It is an executive process, for both manage officials share the responsibility of enforcing.
  • - It is a judicial process, for in every collective clause/ provision regarding the interpretatio.

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Essential Prerequisites of Successful Bargaining

1. Existence of a strong representative trade u believes in constitutional means for settling th.
2. Existence of strong and enlightened m integrate the different parties, i.e., employees society or government.
3. Agreement on basic objectives of the o employer and the employees and on mutual be there.
4. Existence of a fact- finding approach and methods and tools for the solution of industria.

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5. Negotiations should be based on facts ar parties should adopt constructive approach.
6. Proper records for the problem should be m.
7. C.B. should be best conducted at plant lev more than one plant of the firm, the local delegated proper authority to negotiate with 1.
8. In order that C.B. functions properly, unfair avoided by both the parties.
9. There must be change in the attitude of en They should realize that differences can be negotiating table without the assistance of thi.

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10. No party should take rigid attitude. Th negotiation with a view to reaching an agreem.

Collective Bargaining Process

1. preparation for negotiation
2. negotiation stage
3. signing the agreement
4. follow up action

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1. PREPARATION FOR NEGOTI

   • This has become a pre - requisite to collect several reasons.
   • Consultation with the lower level memb organizations can help both the parti information and evolve specific bargaining ta.
   • The negotiation team should consist of rep parties with adequate knowledge and skills f.
   • Again the technical assistance of legal and pu also be utilized gainfully in the collective bar.
   • Finally care should be taken to pre-plan v meeting places, ground rules relating to tra publicity releases.

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2. THE NEGOTIATION

   • Methodology for bargaining is very importar.
   • As a bargaining methodology it is desirable items.
   • These bargaining items could be separated into
     • The cost or financial items
     • The other for non cost or non financial items

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   • The range of the objectives could be decidec.
   • Realistic: The realistic goal is what both the p is achievable, logical and based on facts.
   • Optimistic: The optimistic goal for particular negotiator thinks can be achieved. But the n have to go through various odds and favourable.
   • Pessimistic objectives. The pessimistic go outcome if everything did not go as well as within the acceptance range of the party.

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   • Opening the negotiation
     • Give all the participants including yourself - settle down; to gather papers together an latecomers.
     • Normally management representatives a proceedings.
   • While giving the first reply to the union may be borne the followin
     1. The number of points which can be commun minimum. It is better to repeat and assert the language than to try to cover too much ground. Us the use of jargons.
     2. Do not get bogged down in prolonged discu items raised by the trade union side. Deal with those items must be grouped together.

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     3. Address your remarks to the main spokesma temper are not substitutes for a good case well pr.
     4. Identify the areas of agreement because this progress is being made. Have you left yourself wit bargain subsequently?
     5. Will the first statement be made solely b could it be made by certain other members some more members who can contribute as.
     6. Even if the management team feels tl reaching an agreement, managements case broad outline. Management may remembe the trade union is a continuing one. One sho much of carry over of these negotiations fo would give adequate time to analyze the situ.

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   • The middle period may contain one or mor the request of either party. These can be use
     1. allow the other party to evaluate eit information;
     2. consult with or report back their group;
     3. Settle things down; and
     4. Prevent negotiating fatigue.

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3. SIGNING THE AGREEMENT

   • (a) Procedure agreements
     • v Procedure agreements spell out the steps by w processes are carried out.
   • (b) Substantive agreements
     • These contain the 'substance' of any agreement the employment.
     • They cover payments of all kinds, i.e. wage rates payments also holidays and fringe benefits such various other allowances.

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4. follow up action

Suggestions for effective implementation of collec

Union should be made strong by creating awareness among worke

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Unanimity among workers:

Before entering into negotiations there must be unanimity a representatives of workers should be able to present the opir of workers or else, the management can take advantage workers

Strength of both parties:

Both the parties in negotiation should be equal in strength. other is against the whole nature of collective bargaining. It sl take' process and should not be a 'you give and we take' bar from either side.

NEGOTIATION

"The goal is not to get a deal. is to get a good deal."

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What is ...

• Negotiation is the proces conferring to arrive at a Between different parties their own interest and Pr.
• A give and take decision process involving interde parties with different Pr.

DEFINITION

ROBBINS- "A process in which tw parties exchange goods and service. agree upon the exchange rate for th.

Minton(2001) "The degree to wl of the parties are aligned can fac and type of outcomes available for.

Four principles of practice Negotia

• Preparation: understanding and the people and equippir for the process.

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• Relationship: developing a for maintaining the relatio before, during and after ne.
• Communication: building applying an open communic.
• Problem-solving: explorin and strategies for reachi.

Features Of Negot

• Two Parties
• Predetermined Goals

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• Expecting an Outcome
• Parties willing to modify their Po
• Parties should understand the pu negotiation

Types Of Negotia

Distributive Negoti

• The most distributive feature is th under a zero sum game
• the gain made by one person is los the other person.

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• Each person involved in the negot ultimate point where the settleme
• The sellers goal is to negotiate as possible; the Buyers intention is to low a price as possible
• Win-Lose Situation

Integrative Negot

• Parties cooperate to achieve ma by integrating their interests
• Both parties involved in negoti jointly look at the problem, try alternatives and try to evaluate a mutually acceptable decision

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• Win-Win Situation

Distributive Verses In

The Five steps of the negotiat

1. Preparation and Planning.
2. Definition of Ground Rules.
3. Clarification and Justification.
4. Bargaining and Problem Solving.

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5. Closure and Implementation.

Preparation and planning

• Before the start of negations, one must be a
• the history leading to the negotiation
• the people involved and
• their perception of the conflict expectations

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Definition of Ground Rules

• Where will it take place?
• What time constraints, if any will apply?
• To what issues will negotiations be limited?
• Will there be a specific procedure to follow i
• During this phase, the parties will also excha proposals or demands.

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Clarification and Justification

• When initial positions have been exchang explain amplify, clarify, encourage and justif This need not be confrontational.
• This is the point where one party might wa party with any documentation that helps sup.

Bargaining and Problem Solvir

• The essence of the negotiation process is the trying to hash out an agreement, a proper ba.
• It is here where concessions will undoubtedl both parties.

Closure and Implementation

• The final step in the negotiation proce agreement that has been worked out and de that are necessary for implementation and n.

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Essential Skills of Negotiation

• Problem Analysis
• Preparation
• Active listening
• Emotional control
• Verbal communication

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• Problem solving skill
• Decision making-skill
• Interpersonal skill
• Ethics

Techniques of Negotiation

• Stone walling :
  • Time pressure

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  • Delay from other side
• Impulsive change:
  • The sudden change of attitude and behaviour of other party
• Gotcha :
  • Indicate that you have caught them out in some way, exposing the have done, whether deliberately or accidentally.

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  • Show how they have not followed the rules. Talk about how they h Tell them how trust has been betrayed. Point out inconsistencies in.
• Dodge :

  Shift your attention from real Issue to Side Issue

Workers Participation In Man

Workers participation in management includes f

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• Workers participation in management provides organisation's decision making process.
• The workers participation may be at the shop le at the top level.
• The workers participation in the management is share the responsibility and accept commitmen decisions of management with consultation of v.
• The workers participation is conducted through which provide for association of workers repres.
• The idea behind worker's participation in manag discipline and control among workers and for th management.

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Concept of WPM

• Workers Participation in Manageme communication and consultation, either which employees of an organisation are the affairs of the undertaking and throug their opinion and contribute to managem.
• It is industrial democracy in action base equity, equality and voluntarism.
• It is distribution of social power in indus be shared among all who are engaged i concentrated in the hands of minority.

Evolution of the Concept

• Thinkers like Comte and Owen advoca of workers in management for achievin justice.
• Karl Marx proposed complete control workers and socialisation of the means.

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• Marx wanted trade unions to be develop for self-government.
• Thinkers favoured guilds of all classes c controlled under a charter from the state.

Evolution of the Concept

• With the outbreak of the First World Wa unrest was experienced.
• Labour was largely regarded as a Commerce” and exploited to the maximu Germany, France and USA.
• The main concern of ideologists in participation in Management was the s managerial power with workers.

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• Various research conducted at the Tavist revealed that autonomous and cohesiv more efficient and healthier.

Forms of Participation

• Collective Bargaining - Issues over w workers and management are cor employment conditions, wage rates, wo number of holidays are usual areas for co.
• Joint Administration, Joint dec Consultation - Issues over which p concerned such as fund money, cante workers welfare facilities, etc.,
  • The difference between Joint Administration Consultation is very narrow in nature.

Levels of Participation

• Informative and Associative Participa information, discuss and give suggest economic situation of the concern. For ex
  • The state of the market, Production and Sales

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  • Circumstances affecting the economic positio
  • Long term plans of expansion and redeploym
• Consultative Participation Involve sharing of views of the members a opportunity to express their feelings. Me on matters such as -
  • Welfare amenities
  • Adoption of New Technology and the problem

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  • Safety measures
• Administrative Participation – Involve sharing of authority and responsibility functions. Members are given little f exercise of administrative and superviso to
  • The preparation of schedules of working hour
  • Payment of reward for valuable suggestions

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• Decision Participation - Is the highest The delegation of authority and respor function is maximum in matters like
  • Economic, Financial and Administrative po mutually taken

The Indian Scene

• In 1920 Mahatma Gandhi had sugg contributed labour and brains, while sha money to enterprise, and that both shou its prosperity.
• The influence of Mahatma Gandhi bore time Joint Consultation was adopted i Industry.
• The first major step came during the er Disputes Act, 1947.

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• The Industrial Policy Resolution had s should be consulted in all matter production.
• Further the scheme of Joint Manag formulated in 1957.