1. INDUSTRIAL RELATIONS IN CANADA Third Edition
Fiona A. E. McQuarrie
Prepared by
Kenda Murphy, Saint Mary’s University

2. The Collective Bargaining Process
Chapter 8
The Collective Bargaining Process

3. Chapter 8 Objectives
At the end of this chapter, you should be able to:
Define the stages that negotiations go through
Describe the sub-processes that occur within negotiation stages
Understand how each side in negotiations acquires bargaining power
Outline an alternative model for union-management negotiations

4. The Collective Bargaining Process
Union-management negotiations usually proceed through specific stages:
Pre-negotiation stage
Establishing the negotiation range
Narrowing the negotiation range
Crisis stage
Ratification stage

5. How Do Negotiations Work?
At the first joint bargaining meeting, the teams exchange written proposals and demands, and decide when the next joint meeting will be
Each negotiating team then holds its own private meetings to formulate a response
At the second and subsequent joint meetings, each team makes counter-proposals and uses a variety of strategies and tactics to uncover the other team’s goals and priorities
These meetings continue until an agreement is reached or an impasse is declared

6. How Do Negotiations Work?
When an agreement is reached, each team must go to its constituency or stakeholders and obtain their approval
If an impasse is declared the parties may:
Take a short break
Ask for third-party intervention
Undertake a strike or lockout
Each of these actions is intended to make the parties return to the bargaining table so an agreement can be concluded

7. Stages of Union-Management Negotiations
Pre-negotiation Stage
Each side determines its priorities, goals and ultimate proposals for the upcoming negotiations; some proposals are considered essential, while others may be traded or “dropped off the table” once negotiations have begun
It is common for the parties to discuss negotiating protocol and process at this stage

8. Stages of Union-Management Negotiations
Establishing the Negotiation Range
This stage sees the formal bargaining sessions begin
The teams start by introducing their members recognizing that it is the chief negotiator who orally presents the rationale for each proposal
The oral presentations serve a number of purposes: establish the bargaining range, demonstrate each side’s commitment to issues, attempt to influence the other side’s perceptions and expectations through explaining the proposals’ rationale

9. Stages of Union-Management Negotiations
Narrowing the Bargaining Range
Each team enters negotiations with an initial offer and a bottom line position for each proposed item
Initial offer: first proposal given to the other side
Bottom line: absolute minimum the team would be willing to accept (not told to the other side)
During this stage, both sides start to retreat from their original positions in an attempt to find a point where a mutually satisfactory resolution can be reached

10. Stages of Union-Management Negotiations
Narrowing the Bargaining Range
Terms that do not meet the other side’s bottom line will not be accepted; if there is no zone of agreement, either there will be no settlement or each team will have to adjust its bottom line
The timing of counter-proposals and concessions is crucial during this stage; both sides must exhaust their arguments for their own positions
This is often the longest of all the bargaining stages

11. Stages of Union-Management Negotiations
The Crisis Stage
During the crisis stage, one or both sides must decide whether to settle or to use economic pressure such as a strike or lockout
This decision can be triggered by disputes over a single issue or over a “package” deal involving several interrelated items
This stage can be long or short depending on the strength of the parties’ resolve and their resources

12. Stages of Union-Management Negotiations
Ratification
Ratification is necessary once terms are agreed upon by the bargaining teams
Both parties’ stakeholders must accept the terms of the agreement and the union membership will participate in a vote to indicate support
If one side rejects the proposed agreement, they must return to the table
Once ratified, the parties sign the document

13. Negotiation Stages and Negotiation Sub-Processes
Walton & McKersie identify four negotiation sub- processes within a theoretical framework
Intra-organizational bargaining: negotiators seek to achieve consensus within the bargaining team and the organization
Attitudinal structuring: each side forms attitudes toward the other side and toward the relationship between the teams
Integrative bargaining: identifying issues with common interests to get to “win-win” solutions
Distributive bargaining: both sides compete over limited resources producing “win-lose” solutions

14. Negotiation Stages and Negotiation Sub-Processes
Different sub-processes become apparent during different stages of negotiations:
The intra-organizational and attitudinal structuring sub-processes are most obvious during the stages of establishing and narrowing the bargaining range
The integrative and distributive sub-processes are more obvious during the narrowing of the bargaining range stage than during the establishing the bargaining range stage
In the crisis stage, the distributive bargaining sub- process becomes more apparent

15. Negotiation Stages and Negotiation Sub-Processes
Intra-organizational Bargaining involves internal relationships within organizations
Two main types of internal conflict appear during this sub-process:
Role conflict: occurs because of conflicting expectations of each side’s negotiator
Factional conflict: develops within an organization when different groups have conflicting demands; results in disagreement within the organization over bargaining goals and priorities

16. Negotiation Stages and Negotiation Sub-Processes
The Attitudinal Structuring Sub-Process deals with the relationship between the parties including the following characteristics:
Each side’s motivation to be competitive or cooperative with the other side
Each side’s attitudes and beliefs about the legitimacy of the other side’s organization and leadership
The level of trust each side has in the other
Each side’s feelings of friendliness or hostility toward the other

17. Negotiation Stages and Negotiation Sub-Processes
The Integrative Bargaining Sub-Process deals with mutual problems
It is often one of the elements of a “fostering strategy” used to develop cooperation between the parties; may create a better overall relationship and facilitate other parts of the bargaining process
Problems that can be solved through integrative bargaining are often addressed before the distributive issues are negotiated
Integrative bargaining can still be a difficult process as the two sides may differ on how to divide the overall gain equitably

18. Negotiation Stages and Negotiation Sub-Processes
The Distributive Bargaining Sub-Process deals with more contentious issues
During this sub-process, both sides are involved in a fundamental conflict over the allocation of a fixed amount of resources; essentially adversarial in nature
These bargaining strategies are often used when wages and benefits are being negotiated by presenting persuasive information to the other side to support the particular demand

19. The Role of Bargaining Power in Union-Management Negotiations
The classic definition of bargaining power is the measure of the ability of one side to secure the other side’s agreement to its terms
Environmental, socio-demographic, and organizational factors can affect the parties’ bargaining power
Factors affecting the employer’s bargaining power include the size of its inventory, the structure of its operation, its competitiveness, whether the business is seasonal, whether it can operate during a strike, and its labour costs

20. The Role of Bargaining Power in Union-Management Negotiations
Factors affecting the union’s bargaining power include the strength of its commitment to specific issues, its access to strike funds, and the timing and effectiveness of a possible strike
There is more involved in negotiations than a clash of differing amounts of bargaining power resulting in potential long-term effects—positive or negative—on the parties’ relationship

21. Two Alternative Models of Union-Management Negotiations
The Cost of Disputes Model
This model focuses on the interaction among the bargaining power, the interests, and the rights of each side, and how this interaction affects the costs associated with negotiating disputes
Interests are the needs, wants, fears, concerns, desires, or other motivators that underlie a position, or the preferred outcome, of one side

22. Two Alternative Models of Union-Management Negotiations
The Cost of Disputes Model
Rights are formal powers granted to the parties through legislation, existing collective agreements, or in arbitral jurisprudence (previous legal decisions)
The parties’ differing interests are reconciled within the context of each side’s rights and bargaining power, e.g., the party with more rights may be able to dominate the process

23. Two Alternative Models of Union-Management Negotiations
The Costs Disputes Model: four criteria to consider in determining the amount of the costs:
Transaction costs: include expenditures of time, money, resources, emotional energy, and lost opportunities
Satisfaction with the outcome: concerns how fulfilling the ultimate resolution is to each side
Long-term effect on the relationship: a poor relationship will be costly because of disputes
Recurrence: speaks to whether the agreement resolved the issues between the parties

24. Two Alternative Models of Union-Management Negotiations
The Cost of Disputes Model (cont’d)
This model suggests the cost of disputes can be reduced if, in bargaining, the parties focus on interests rather than on issues that can only be resolved if they exercise their rights or bargaining power
Ideally, a focus on interests results in lower transaction costs, greater satisfaction, less strain on the parties’ relationship, and a lower recurrence of disputes

25. Two Alternative Models of Union-Management Negotiations
The Mutual Gains Model of Bargaining
Proposed by R. E. Fisher and W. L. Ury
Founded on four principles:
People: separate the people from the problem
Interests: focus on interests, not positions
Options: generate a variety of possibilities before deciding what to do
Criteria: insist that the result of negotiations be based or evaluated on some objective standard

26. Two Alternative Models of Union-Management Negotiations
The Mutual Gains Model of Bargaining
Three approaches have been proposed to resolve adversarial bargaining conflicts:
Each side should strive to establish a minimum degree of trust in the other as well as a minimum level of communication
Each side should determine a minimum level of acceptance of the other
Both sides should recognize the level of mutual dependency

27. Two Alternative Models of Union-Management Negotiations
The Mutual Gains Model of Bargaining (cont’d)
Joint union–management training has produced positive results which can lead to improvements in attitudes and result in more innovative solutions
However, a major transformation of the traditional structures of both unions and management will be required for a wider acceptance of mutual gains bargaining
Inherent power imbalances and different perspectives make it difficult to apply this model

28. Copyright
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