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COLLECTIVE BARGAINING
FREDRICK AILA
An agreementTakes at least two parties to make a bargain
What is a bargain?
An agreement made by or on behalf of a group
The process of negotiating between unions and management aimed at settling disputes before they turn into labour unrest
Collective bargaining
A method of mutually determining terms and conditions of employment
Long-lasting process with periodic reviews as conditions necessitate.
Collective bargaining
Workers do not negotiate individually or on their own behalf but collectively through their trade union reps
Union must be recognized by management
Nature of collective bargaining
Willingness by the workers and their trade unions
The power to force the employer to accept negotiation
Willingness by management to accept the decisions affecting workers must be agreed on b4 implementation
Collective bargaining can only function where there is:-
Collective bargaining depends on prevailing political climate
Collective bargaining in Kenya has been trilateral:◦Management◦Union◦Government
Prevailing political climate
A collective bargaining results into a labour contract
CBA-a written agreement between the trade union and management
Specifies rules and procedures to be followed by both parties during the contract period
CBA
Name of parties, duration, provision for renewal, signatures of the parties’ officials
Wage rates, fringe benefits, job classification, overtime
Working conditions: permissible breaks, severance pay, timing, working shifts
Contents of CBA contract
Union security: check-off procedures, recruitment of union members
Job security, termination, promotion, demotion and transfers
Limitation of strikes, lockouts, picketing
Grievance & dispute procedures Management’s rights
1. Substantive agreements-lay down terms & conditions to be reflected in each worker’s contract: include
◦ pay rates◦ Working hours◦ Holidays◦ Pension schemes◦ Sick leave◦ Retirement age
Types of CBAs
2. Procedural agreements-lay down procedures to be followed in specific situations
◦ Manner in which dispute is regulated
◦ Timing &◦ Approach in making substantive
agreements
3. Distributive bargaining-assumes that one party’s gain is the other’s loss
◦ Each party tries to maximize his gains and minimize his losses
4. Integrative bargaining and productivity deals
◦ Arise when both parties negotiate without a loss to one another
Mediation: the process whereby a third neutral party helps a trade union and management reach an agreement
Mediator takes active but neutral in suggesting alternatives
His role: to minimize or eliminate the chances of work stoppage or labour unrest
A mediator is a professional person acceptable to both parties
Mediation
Process of peace-making between two parties
Helping both parties develop and adhere laid-down procedures to settle conflicts/ differences
Conciliation
Provides assistance to the parties during negotiations or to reach an agreement
An amicable settlement of labour conflicts/ differences
Central role of conciliator: to influence positively the outcome of negotiations
Conciliation cont
Arbitrator has authority to make binding decisions
The process by which a grievance/dispute is resolved by an impartial third party after hearing all the facts pertaining to the issues(s) and then recommending a solution
Used to settle disagreements from administration of the labour contract
Provisions for arbitration are spelt out in the CBA
Arbitration
Dismissal and disciplinary actions
Promotions and transfersStrikes and lockoutsSalary/wage and working hoursHolidays and holiday payHealth and welfare benefits
Most common issues referred to arbitration
Grievance: a work-related complaint;
Emanate from problems associated with human nature & personal characteristics
Grievances and Dispute Procedures
◦Communication breakdown◦Clashes over values◦Clashes in personalities◦Hostile management◦Disagreement over wages/fringe benefits
◦Workers’ distrust of authority◦External forces
Common causes of Grievance
Misunderstanding-eg clauses of labour contract are understood differently
Unilateral contract violations- the result of misunderstanding of the labour contract provisions or ambiguous labour contract language
Types of Grievances
Outside influences-grievance is not the real problem; it is a way for workers to show dissatisfaction/ frustration eg: personal problems; internal union politics; unfavourable labour contract language
types-
Decreased interest in work Negative statements about the job,
colleagues, supervisors, the org. Unwillingness to cooperate Increased absenteeism Poor job performance Slowing down on the job Being away from assigned place of work for
no apparent reason
Signs of potential grievances
Treating all workers as individuals and with dignity
Recognizing good performers Identifying and promptly eliminating sources of irritation to workers
Training workers on how to perform better on their respective jobs
Minimizing grievances
Seeing issues from the workers’ point of view
Giving clear orders and explaining directions
Knowing the labour contract and applying it
Being objective, fair and consistent in disciplinary actions
Trade unions exercise their economic power in a way that are meant to force mgt to listen & yield to their demands:
StrikesPicketsBoycottsLockouts
Bargaining Impasses
Between employer & recognized trade union on behalf of a group of workers
Purpose: reaching agreement parties are willing to sign and abide by
Aspects:◦Psychological basis of negotiation◦Negotiation preparation◦Task of the negotiator
Negotiations
Perception by each party of the relative cost to the other party in accepting or refusing an agreement
Assessing the potential financial cost to the other party
Both parties enter into negotiations with the intention of obtaining bargaining advantage over the other
Psychological basis of negotiations
Both parties are motivated by desire to reach an agreement
Sometimes the use of threats during negotiations-weigh the seriousness of issues
Threats are useful to obtain bargaining advantage
The desire by both parties to reach a satisfactory conclusion
cont
Each side needs to prepare for negotiations Each side needs factual information for
supporting its arguments Unions must understand the interests of
their members Management must know the cost of each
union demand Management must try to predict how far
each concession to the union will influence its profitability & efficiency
Negotiation Preparation
Provide advice to his or her party and lay down the initial bargaining objectives and strategies
Arrange and conduct bargaining objectives and strategy
Arrange and conduct bargaining meetings
Explain and defend the interests of his/her side
Tasks of the negotiator
Investigate and seek to understand the other party’s case
Assess within the predetermined strategy and in the light of information gained during the investigation
Assess when to adjust or when to exert pressure on the other party to modify their position
Inform, advise and consult with his/her party on the progress of the negotiations and if necessary, revise the objectives and strategy of his/her group
Seek to influence the other party’s negotiator to modify his/her position
Maintain an effective and continuing personal relationship with the other party’s negotiator
Social interpersonal Information handling Discretionary judgement skills
Negotiation Skills
These allow the negotiator to recognize, interpret and utilize both verbal and non-verbal communications.
Social Interpersonal Skills
The negotiator must be conversant with the issues under negotiation and the context within which they are able to be negotiated
Information Handling Skills
The negotiator must make judgements regarding the implementation of the predetermined strategy and determine when and how changes in argument and position should take place
Discretionary Judgement Skills
Negotiator-main spokesperson and leader of the team
Recorder-takes notes on what is said and the reactions of the opposing team
Analyst-prepares information, consider the strengths and weaknesses of both sides; examine implications and effects of concessions
Specialist-provides detailed information on the issue(s) under consideration
Negotiation Roles