COLLECTIVE BARGANING

KhushdeepClass mba (f)Roll no 36

Collective Bargaining & Negotiation

MEANING;- Collective bargaining is a process between employers and employees to reach an agreement regarding the rights and duties of people at work. Collective bargaining aims to reach a collective agreement which usually sets out issues such as employees pay, working hours, training, health and safety, and rights to participate in workplace or company affairs. DEFINITION:- Collective bargaining is an agreement between a single employer or an association of employers on the one hand and a labour union on the other, which regulates the terms and conditions of employment. (Tudwig Teller)

OBJECTIVES OF COLLECTIVE BARGAINING Collective bargaining has benefits not only for the present, but also for the future. The objectives of collective bargaining are: 1. To provide an opportunity to the workers, to voice their problems on issues related to employment. 2. To facilitate reaching a solution that is acceptable to all the parties involves. 3. To resolve all conflicts and disputes in a mutually agreeable manner. 4. To prevent any conflict/disputes in the future through mutually signed contracts. 5. To develop a conductive atmosphere to foster good organizations relations. 6. To provide stable and peaceful organization (hospital) relations. 7. To enhance the productivity of the organization by preventing strikes lock out ect.

CHARACTERSTICS OF COLLECTIVE BARGAINING

It is a group process, wherein one group, representing the employers, and the other, representing the employees, sit together to negotiate terms of employment. 2. Negotiations form an important aspect of the process of collective bargaining i.e., there is considerable scope for discussion, compromise or mutual give and take in collective bargaining. 3. Collective bargaining is a formalized process by which employers and independent trade unions negotiate terms and conditions of employment and the ways in which certain employment-related issues are to be regulated at national, organizational and workplace levels

Collective bargaining is a process in the sense that it consists of a number of steps. It begins with the presentation of the charter of demands and ends with reaching an agreement, which would serve as the basic law governing labor management relations over a period of time in an enterprise. Moreover, it is flexible process and not fixed or static. Mutual trust and understanding serve as the by products of harmonious relations between the two parties.

5. It a bipartite process. This means there are always two parties involved in the process of collective bargaining. The negotiations generally take place between the employees and the management. It is a form of participation.

6. Collective bargaining is a complementary process i.e. each party needs something that the other party has; labor can increase productivity and management can pay better for their efforts.

7. Collective bargaining tends to improve the relations between workers and the union on the one hand and the employer on the other. 8. Collective Bargaining is continuous process. It enables industrial democracy to be effective. It uses cooperation and consensus for settling disputes rather than conflict and confrontation. 9. Collective bargaining takes into account day to day changes, policies, potentialities, capacities and interests

Types Of Bargaining

Conjunctive/Distributive Bargaining - zero-sum game; win lose

Co-operative Bargaining - more open to coming down from their high horses; win win.

Principles of collective bargainingFor union and management:--CB should be an education as well as a bargaining processes.-There must be mutual confidence and good faith and a desire to make collective bargaining effective in practices.-There should be an honest and responsible leadership for only this kind of leadership will make collective bargaining effective and meaningful

For the management Management must develop and consistently follow a realistic labour policy which should be accepted and carried out by its representatives.Management must grant recognition to the trade union without any reservations and accept it as a constructive force in the organizationManagement should not wait for the trade union to bring employee grievance to its notice but should rather create the condition employee can approach Management should deal only with one trade union in the organization

For trade union :- - Trade union leaders should be appreciate the economic implication of collective bargaining for their demands are generally met from the income and resources of the organisation - Trade union should resort to strikes only when all the other methods of the settlement of a dispute have failed -trade union leaders should not imagine that their only function is to secure higher wages ,shorter hours of work and better working conditions for their members

National labour relations act It is here declared to be the policy of the united states to eliminate the causes of certain substantial obstructions to the free flow of commerce by encouraging the practice and procedure of collective bargainning. For the purpose of negotiating the terms and conditions of workers employment or the other mutual aid or protection .

Legal frame work for collective bargaining Employee have the right to :-Form to join or to assist a labour organisation of their choice ,Bargain collectively through that labour organisation Engage in concerted activities an mutual aid rafrain(avoid doing) from any of the activities .Protects employees by defining and prohibiting unfair labour organisation Discriminating against employees for engaging in or refraining from union activities.Refusing to bargain with the union that is the lawful representative of its employees.

COLLECTIVE BARGAINING PROCESS

Collective bargaining process comprises of five core steps:

1.Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation.

2. Discuss, the parties decide the ground rules that will guide the negotiations.

Propose:, this phase could be described as brainstorming. The exchange of messages takes place and opinion of both the parties is sought. 4. Bargain:. This stage comprises the time when what ifs and supposals are set forth and the drafting of agreements take place. 5. Settlement:. This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.

Collective Bargaining AgreementWritten document regarding working conditions and terms of employment

Legally, a CBA binds only the parties to it.

In India, there are three types of agreements, namely voluntary agreements,settlements, andConsent awards.

procedural agreements or substantive agreements

Contents of Collective Bargaining Agreement

The date of commencement of the agreement

Its duration

A definition of terms

The procedure for settling disputes regarding interpretation, as well as other disputes.

The consequences in the event of breaches of the agreement

As regards wages, exactly how conversion of employees' wages to the new scales is to be effected.

Conditions For Successful Collective BargainingTrade Union Recognition

Observance of Agreements

Support of Labour Administration Authorities

Good Faith

Proper Internal Communication

Defining Negotiation Negotiation is getting what you want from the other person -- no matter what. We all know how bargaining works. You ask for a lot, and wind up settling for something in the middle.

Defining Negotiation Negotiation is an attempted trade-off between getting what you want and getting along with people. Negotiation is a discussion between people, with the goal of reaching an agreement on issues, and separating the parties when neither party has the power to get its way.

IMPORTANCE OF NEGOTIATIONCertaintyThe aim of contract negotiation is firstly to achieve certainty, to record what is being supplied, when, in what quantities and to what standard, and what are the consequences of delay or failure to meet the agreed requirements.The best dealSeeking clarity does not conflict with the view that negotiations should achieve the best deal, it merely points out that both parties to a negotiation have to understand what it is that they have agreed to.Achievement of an Organization's objectivesThe goal of every negotiation must be to achieve a result which, even if it falls short of the original objective, can be considered a satisfactory advancement towards it.Create of a long-term relationship between the partiesWhilst this is not always possible, and some cultures, such as the Japanese, place more emphasis on this aspect of negotiation, this is increasingly important as companies build networks of alliance partners.

. The Negotiation ProcessPreparation and PlanningDefinition of Ground RulesClarification and JustificationBargaining and Problem SolvingClosure and Implementation13254

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1.Prparation and Planning

Prpare You + your teamKnow the other party Know the PictureIdentify the objectivesPriortize the objectives

Prparation and Planning

Create optionsSelect fair standardsExamine AlternativesSelect your strategy , tactics and counter tacticsDevelop a solid & approved team Negotiation plan

2.Dfinition of Ground RulesIntroductionDtermine who has authorityRules and proceduresPrepare the facility Use and agendaCreate a positive working climateExchange issues

3.Clarification and JustificationSpecify what you wantProblem identificationPut forward the solutionsExchange informationFocus on objectivesListen carefully and question thoroughlySeek compromise: get win/win if possibleRemember optimum and fallback positions

4.Bargaining and Problem Solving

Ask for what you want:modify if you needDon`t concede without exchangingDecide on areas of possible flexibilityUse stratagies ,tactics and countertacticsMake counter offersKnow when to walk away

Bargaining strategiesDistributive Bargaining:Negotiation that seeks to divide up a fixed amount of resources : a win loose situation

Integrative Bargaining :Negotiation that seeks one or more settlements that can create a win win sloution.

5.Closure and ImplementationStatement of agreementDocument the agreementPrepare Negotiation results and summaryClose the remaining gapsReach at a tentative agreementImplement the dealMonitor the implemantation

Issues in NegotiationThe role of personality traits in negotiation :Traits do not appear to have a significantly direct affect on the outcomes of either bargaining or negotiating processGender Differences in NegotiationsWomen negotiate no differently from men, although men apparently negotiate slightly better outcomes.Men and women with similar power bases use the same negotiating styles.Womens attitudes toward negotiation and their success as negotiators are less favorable than mens

referenceshttp://www.uvm.edu/extension/community/nnco/cd/unit4a.htm#4a

http://www.teachingenglish.org.uk/lesson-plans/negotiations-1-building-relationships

http://www.bms.co.in/explain-different-types-of-negotiation-strategies/

http://www.psych-it.com.au/theses/article.asp?page=6

http://www.negotiation.biz/negotiation_objectives.htm