MGT 674

Employee Relations Management

Ajaya Mishra

Session 5

Collective Bargaining …Negotiations skills …

Collective bargaining …

Collective bargaining is a process of decision-making between parties representing employer and employee interests which implies the “negotiation and continuous application of an agreed set of rules to govern the substantive and procedural terms of the employment relationship”

[Windmuller et al. ( l987)].

The term "collective bargaining" was first used in 1891 by economic theorist Sidney Webb

The roots of collective bargaining lie in the late nineteenth century, when workers began to agitate for more rights in their places of employment.

Typically, the employees are represented by a union. Collective bargaining actually begins with joining a union, agreeing to abide by the rules of the union, and electing union representatives.

For workers, collective bargaining is an excellent tool. Many workplaces benefit from unionization, which allows workers to speak together as a body to assert their rights. Employers also benefit from collective bargaining agreements, which set out clear expectations for both sides.

Features of Collective Bargaining …

Emphasis on collective action not on individual action.

Concern both wit rule making and settlement of employment conditions.

The aim is to reach agreement eventually.

Voluntary nature of activity not imposed by the law.

Everyone Negotiates

Buying a car, house or other object for which the price may not be fixed

Establishing a salary, workplace tasks, office conditions, etc.

Organizing team tasks or priorities

Allocating household tasks

Deciding how to spend a free evening

Negotiations …

Negotiation is a dialogue between two or more people or parties, intended to reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two person/ parties involved in negotiation process. Negotiation is a process where each party involved in negotiating tries to gain an advantage for themselves by the end of the process. Negotiation is intended to aim at compromise.

Negotiation Styles

Accommodating: Individuals who enjoy solving the other party’s problems and preserving personal relationships. Accommodators are sensitive to the emotional states, body language, and verbal signals of the other parties. They can, however, feel taken advantage of in situations when the other party places little emphasis on the relationship.

Avoiding: Individuals who do not like to negotiate and don’t do it unless warranted. When negotiating, avoiders tend to defer and dodge the confrontational aspects of negotiating; however, they may be perceived as tactful and diplomatic.

Collaborating: Individuals who enjoy negotiations that involve solving tough problems in creative ways. Collaborators are good at using negotiations to understand the concerns and interests of the other parties. They can, however, create problems by transforming simple situations into more complex ones.

Competing: Individuals who enjoy negotiations because they present an opportunity to win something. Competitive negotiators have strong instincts for all aspects of negotiating and are often strategic. Because their style can dominate the bargaining process, competitive negotiators often neglect the importance of relationships.

Compromising: Individuals who are eager to close the deal by doing what is fair and equal for all parties involved in the negotiation. Compromisers can be useful when there is limited time to complete the deal; however, compromisers often unnecessarily rush the negotiation process and make concessions too quickly.

Strategy …

Purpose of Negotiations …

Act assertively to achieve objectives

Reduce resistance & minimise conflict

Know how & when to accept the opinions, values & will of others

Work to achieve a WIN-WIN situation

Effective Negotiation

Is an important communication skill

Reaches the agreement that best meets both sides requirements

Should be conducted in a professional manner

Be a solid foundation on which to build future relationships

Conventional Negotiations …

Focus on winning

Assert positions/personal preferences

Concede stubbornly

Seek compromises based on arbitrary divisions (e.g. split the difference)

Engage in threats, bluffs or other negotiation tactics

Traditional Negotiations Modern Negotiations

Has two sides

Is a form of warfare

Has opposing objectives Has a short sighted approach

Enables strategic alliances to be built

Emphasises partnerships

Builds relationships

Is effective and long term

Preparing yourself

Preparation enables you to : Preparation enables you to :

Identify your objectives Identify targets Know your resistance point Adopt the most suitable style Time the interaction correctly Achieve a deal

Negotiating Steps

Develop ground rules

Jointly identify issues

Explore interests

Develop objective standards

Brainstorm options

Evaluate options using standards

Try to reach consensus decision

Adapting General Principles to Specific Negotiations

Pacing: fast or slow?

Formality: high or low?

Oral or written agreements: which are more binding and inclusive?

Bluntness of communication: direct or indirect?

Time-frame: short or long term?

Who negotiates: Equals or most competent?

Negotiations Model …

Management’s Strategy / Objectives

•Employee relations•Pay policy

Settlement published, Implemented and

Monitored

Union's Strategy / Objectives

•Employee relations•Pay policy

Assess Bargaining Power

Analyze Claim and Prepare Answer Initial Negotiations

Final Negotiations

Agreed Settlement

Prepare and Submit Union’s Claim

Decide Tactics

Assess Bargaining Power

Decide Tactics

Arbitration Act …

The claim must be made in writing, explicitly mentioning the details of the subject matter of the dispute and the remedy sought, along with the evidence. Copy is to be given to the other party.

To the claim so filed, the other party shall submit its “objection” (defence).

The other party can, along with the “objection”, submit a counter-claim.

To the counter-claim, the claimant can file a “rejoinder”

to be filed within three months from the date when the dispute arose or when the arbitrator is appointed (whichever is later]

to be filed within thirty days from the date of receipt of the claim

same time limit as is mentioned in (b) above

to counter, claim to be filed within 15 days from date on which counter claim is filed

Challenge to Jurisdiction

Any party not satisfied with the arbitrator’s decision on such an objection may appeal to the Appellate Court within thirty days.

The decision of the Appellate Court is final. But the filing of the appeal shall not be deemed to have prejudiced the power of the arbitrator to continue his proceedings and to pronounce his decision before the petition is finally disposed of by the court.

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