Collective bargaining

Process of negotiating between management & workers represented by their representatives for determining mutually agreed terms & conditions of work which protect interest of both workers & the management. Collective…both employer & employee act collectively & not individually in arriving at an agreement Bargaining … process of reaching an agreement involves proposals & counter proposals, offers & counter offers.

Objectives Maintain cordial & harmonious relations Protect both interests Government interventions keep at bay Promote industrial democracy

Importance Better understanding Promotes industrial democracy Benefits both Adjustable to changing conditions Facilitates speedy implementation of decisions arrived at collective negotiation.

Types of bargaining Distributive bargaining Co-operative bargaining Productivity bargaining Composite bargaining

Bargaining process Pre-negotiation Negotiators Negotiation Agreement or Contract Implementation of Agreement

Prenegotiation Preparation for negotiation Preparation by management Preparation by labor union

Negotiators Negotiation Company side..one or number of persons…IR officer,head of a area,company lawyer. Union side..team approach..team..business agents , shop stewards , president of local union Negotiators Both parties come to negotiation table at a time & place for this purpose. Negotiation starts by union representatives delivering extravagant list of demands. Initial response of management extreme to that of union…offers little more than previous. Compromise..agreement…if no agreement..deadlock or bargaining impasse Negotiation

Agreement or contract After arriving at informal agreement through overcoming bargaining impasse, it is written. Consists of terms & conditions of agreement, date from which it comes into effect, duration it will remain in operation & names of signatories of agreement. Agreement so prepared sent to laborers & management for its ratification & approval. Agreement needs to be duly ratified because of legal provisions.

Agreement or contract According to sec 18(1) of industrial; disputes act 1947 “an agreement shall be binding only on the parties to the agreement.” Labor contract or “union contract” or “labor-management agreement”. Agreement stipulates in formal terms nature of relationship between labor & management for ensuing period of time as agreed in negotiation.

Implementation of agreement Way ratified & approved agreement will be implemented is indicated in the agreement itself. Must be implemented with full magnanimity in terms of its letter & spirit by both parties from date of operation as mentioned in the agreement. Duty of HR department to ensure proper & full implementation of all provisions given in the agreement. Agreement also involves..procedure for handling grievances arisen out of CB.

Bargaining impasse When negotiations break down & labor a& management have been unable to reach an agreement. 3 options when this occurs: Ask 3rd party(mediator or arbitrator) to resolve Labor union may resort to work stoppage or strikes Employer may show force to suppress union demands

3 types of 3rd party interventions Neutral 3rd party acts as mediator Holds meetings with each party Mediator does not have the rights to impose decisions Must have confidence of both the parties Mediation Arbitrator empowered to determine & dictate terms of negotiation. Guarantee a solution to an impasse Binding arbitration: both parties bound Arbitration In certain situations of emergency type a fact-finder is appointed to resolve impasse. Neutral party Commonly used in public sector Fact - finding

Union power tactics Strikes : concerted & temporary withdrawal of labor from work. Economic strike Recognition strike Sympathy strike Wildcat strike Sit- down strike

Union power tactics Picketing: one of the activities occurring during a strike. Picket is a line of strikers who patrol employers place of business, helps keep a plant or building site closed during a strike. Make society know about dispute Discouraging others to refrain from doing business with struck employer.

Union power tactics Boycott : combined refusal by employees & other interested parties to buy or use employers products. Primary boycott: involves only those parties directly involved in a dispute Union exerts pressure on members to avoid patronizing an employer, even going as far as to levy fines against members that do. Secondary boycott: involves 3rd party not directly involved in dispute . ex:electricians union can persuade retailers not to buy employers product.

Employer power tactics Lock out Non-union workers Replacement employees Bankruptcy -

Employer power tactics Refusal by employer to provide opportunities to employees to work. Employees locked out & prohibited from doing their jobs, stop getting paid. Limited use in resolving bargaining impasse. Lock out Let non-union employees such as supervisors perform duties of striking employees. May be successful in highly automated or routine where little training is required. Non-union workers

Employer power tactics Hire replacement employees for strikers. Workers hesitant to accept short-term employment. Hesitate to cross picket lines to be ridiculed by picketers. Sure it impair labor-management relations & lower workers morale Replacement employees In extreme case employer can go o the extent to cancel a union contract & declare oneself , under the provisions of Bankruptcy Law as bankrupt to get rid of striking workers. Bankruptcy

Conditions for effective collective bargaining Favorable political & social climate Trade unions Unanimity among workers Strength of both parties Problem solving attitude Availability of data Continuous dialogue

Factors inhibiting collective bargaining Employers reluctance Weak unions Inadequate interventions