Assignment on Human Resource Management

Topic: Collective Barganing

Submitted by

Student Full Name: Mukkesh B

Group No: 5

Reg No: 2205916022

Semester: 3

School of Maritime Management

IMU- Kochi

Submitted to

Dr.Aravind TS

Faculty, School of Maritime Management

IMU- Kochi

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 Content
Sl No Topic Page No.
1 Introduction 3

2 Historical Roots and Evolution 3

3 Key Components of Collective Bargaining 4

4 Objectives of Collective Bargaining 5

5 Objectives of Collective Bargaining 8

6 Case Study 11

7 Conclusion 15

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1.INTRODUCTION :

Collective Bargaining: A Comprehensive

Exploration
Collective bargaining is a cornerstone of labor relations and employment practices. It is a
process through which employees, usually represented by labor unions, engage in
negotiations with their employers or management to determine and regulate the terms and
conditions of employment. This negotiation encompasses a wide spectrum of employment-
related aspects, including but not limited to wages, working hours, benefits, working
conditions, job security, and grievance procedures.

The essence of collective bargaining lies in the recognition that employees, when united, can
collectively wield greater bargaining power, providing them with a stronger voice in shaping
the terms of their employment. It serves as a vital mechanism to balance the inherent power
asymmetry between individual workers and their employers, ensuring that their interests and
needs are fairly represented and addressed. In this comprehensive exploration, we will delve
into the historical origins, the intricate process, key components, and the significance of
collective bargaining in contemporary labor relations.

2. Historical Roots and Evolution.

Collective bargaining has historical roots dating back to the late 18th and early 19th
centuries, a period characterized by the industrial revolution in Europe and North
America. This transformative era witnessed the shift from agrarian economies to
industrial ones, marked by the proliferation of factories and wage labor. As the industrial
workforce grew, workers faced challenging, often unsafe working conditions, and there
was a lack of job security.

It was during this time that the early labor movements started to take shape. Workers
began to unite and organize themselves to advocate for better working conditions, job
security, and equitable wages. Some of the first labor organizations, such as the Knights
of Labor and the American Federation of Labor (AFL), emerged during this period,
advocating for the rights and welfare of industrial workers.

These early efforts laid the foundation for the recognition of collective bargaining as a
legitimate and necessary tool for the protection of workers' rights. Over time, labor laws
and regulations were developed to protect and codify these rights. In the United States,
the National Labor Relations Act (NLRA) of 1935 is a landmark piece of legislation that
affirmed the rights of workers to organize and engage in collective bargaining. It
established the National Labor Relations Board (NLRB) to oversee and enforce labor law,
ensuring that employees' rights to collective action were upheld.

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3. Key Components of Collective Bargaining:
Key Components of Collective Bargaining*

Collective bargaining consists of several integral components that define the process:

1. *Parties Involved*:
- *Management*: This typically represents the employer or a group of employers, including
their designated representatives.
- *Labor*: Labor unions represent employees and, in some cases, workers themselves,
acting as their voice in the negotiation process.

2. *Negotiation*: Central to the collective bargaining process is negotiation. The parties

come together to discuss and negotiate various terms and conditions of employment. This
involves presenting proposals, counterproposals, and reaching agreements.

3. *Agreement*: Once negotiations are complete, both parties arrive at an agreement that
outlines the terms and conditions of employment. This agreement may be formalized as a
collective bargaining agreement (CBA) or labor contract.

4. *Terms Covered*: The scope of collective bargaining is broad, covering various aspects,
such as:
- *Wages and Benefits*: Determining the compensation structure, which includes salaries,
hourly rates, bonuses, and various benefits like healthcare, retirement plans, and vacation
days.
- *Working Hours*: Establishing regular working hours, overtime policies, and shift
schedules.
- *Working Conditions*: Defining safety standards, workplace regulations, and procedures
for addressing workplace disputes.
- *Job Security*: Addressing issues related to layoffs, job security, and employee rights
during downsizing or plant closures.
- *Grievance Procedures*: Creating mechanisms for addressing and resolving disputes or
grievances that may arise during the employment relationship.

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4. Objectives of Collective Bargaining:
Collective bargaining serves a multitude of objectives that are critical for both employees and
employers. It is a complex process designed to balance the interests of the workforce with
those of management. This section will provide a comprehensive exploration of the
objectives of collective bargaining.

1. Fair Compensation:

One of the primary objectives of collective bargaining is to secure fair and competitive
compensation for employees. This includes negotiating wages, salary structures, bonuses, and
other financial incentives to ensure that employees are remunerated fairly for their work. A
fair compensation system not only attracts and retains talent but also acknowledges the
contribution of workers to the organization's success.

Wage Negotiations: Setting competitive and equitable wage rates is central to this
objective. Collective bargaining ensures that employees are paid commensurate with their
skills, experience, and the market standards for their roles.

Benefits Package: In addition to base wages, negotiations often cover benefits such as
healthcare, retirement plans, life insurance, and other perks. These benefits contribute to the
overall financial well-being of employees.

Bonuses and Incentives: Collective bargaining can extend to discussions on performance-

based bonuses and incentives, ensuring that employees are rewarded for their contributions to
the company's success.

2. Better Working Conditions:

Collective bargaining seeks to improve and maintain safe, healthy, and conducive working
conditions. This objective aims to ensure that employees can perform their duties without
jeopardizing their well-being. Safe and pleasant working conditions not only enhance job
satisfaction but also lead to increased productivity.

Safety Standards: Negotiations often involve setting and enforcing safety standards to
prevent accidents and injuries in the workplace. This is especially vital in industries with high
physical risk.

Health and Hygiene: Ensuring clean and hygienic working environments is crucial for the
well-being of employees. Collective bargaining may involve discussions on ventilation,
sanitation, and other related factors.

Workplace Amenities: Negotiations may extend to improving amenities in the workplace,

such as comfortable seating, well-lit spaces, and appropriate facilities for breaks.

3.Employee Rights:

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 Protecting and advancing the rights and interests of employees is a fundamental objective
of collective bargaining. It aims to ensure that workers are treated fairly and equitably, and
that their rights are upheld. Employees, as stakeholders in the organization, have rights that
should be respected and protected.

- *Equal Treatment*: Collective bargaining seeks to eliminate discrimination and ensure

equal treatment for all employees, regardless of gender, race, age, or any other protected
characteristic.

- *Anti-Harassment and Anti-Retaliation*: Negotiations may cover policies and procedures

for addressing harassment in the workplace and protecting employees from retaliation when
they raise concerns.

- *Privacy and Dignity*: This objective may encompass safeguarding employee privacy
and dignity, both in terms of personal data and respectful treatment by management.

4. *Conflict Resolution*:

Collective bargaining provides a structured mechanism for resolving disputes and conflicts
that may arise between employees and employers. Having a well-defined process for
addressing grievances contributes to maintaining a harmonious working environment. The
aim is to avoid prolonged disputes that can disrupt the workplace.

- *Grievance Procedures*: Establishing and improving grievance procedures is a critical

part of conflict resolution. This ensures that employee complaints are heard, addressed, and
resolved in a fair and timely manner.

- *Mediation and Arbitration*: In some cases, the collective bargaining agreement may
outline procedures for mediation and arbitration as alternatives to litigation, providing more
efficient means of conflict resolution.

- *Dispute Avoidance*: Through the negotiation process, collective bargaining also strives
to anticipate and prevent conflicts by addressing potential issues and concerns proactively.

5. *Mutual Agreement*:

A fundamental objective of collective bargaining is to achieve mutual agreements that

benefit both labor and management. It recognizes that the employment relationship is a
partnership where both parties have a stake in the organization's success.

- *Win-Win Solutions*: The negotiation process aims to find common ground and develop
solutions that align with the interests and needs of both employees and employers. This
fosters a sense of collaboration and partnership.

- *Balancing Interests*: Collective bargaining takes into account the interests, concerns,
and priorities of both labor and management. The goal is to create a framework that respects
the contributions of both parties.

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 - *Long-Term Stability*: Agreements reached through collective bargaining are often
designed to provide stability and predictability in the employment relationship, reducing the
likelihood of conflicts and disruptions.

6. Productivity:

The process of collective bargaining aims to enhance workplace productivity and

efficiency. A productive workforce is essential for an organization's success, and negotiations
may focus on various aspects of productivity improvement.

Performance Metrics: Discussions may revolve around establishing clear performance

metrics and expectations for employees, contributing to higher levels of accountability and
productivity.

Incentives for Performance: Collective bargaining can include the design of incentives and
rewards for employees who contribute to increased productivity. Incentive programs can
motivate employees to perform at their best.

Training and Skill Development: Negotiations may encompass provisions for training and
skill development, ensuring that employees have the tools and knowledge needed to perform
their jobs effectively.

7. Legal Compliance:

Collective bargaining ensures that the employment relationship complies with labor laws
and regulations. This is essential for protecting both employees and employers from potential
legal disputes, liabilities, and penalties.

Labor Laws and Regulations: The negotiation process aligns employment practices with
applicable labor laws and regulations to avoid legal conflicts and maintain compliance.

Employee Rights: Collective bargaining aims to uphold employee rights as defined by law,
ensuring that employees are treated fairly and equitably under the law.

Legal Protections: The negotiation may also address legal protections against wrongful
termination, discrimination, and other violations of labor laws.

8. Peaceful Labor Relations:

Promoting peaceful and stable labor relations is another significant objective of collective
bargaining. By providing a structured platform for negotiations, it helps prevent labor
disputes that could disrupt operations, ensuring a stable and productive work environment.

Preventing Strikes: One of the aims of collective bargaining is to provide a formal process
for addressing employee concerns and disputes, reducing the likelihood of strikes or work
stoppages.

Labor-Management Cooperation: Collective bargaining fosters a sense of cooperation

between labor and management, reducing hostility and promoting mutual respect.

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 Stable Operations: By providing a structured process for addressing labor issues,
collective bargaining contributes to the stability of operations and business continuity.

9. Quality of Life:

Improving the quality of life for employees is an objective that is often interwoven with
other objectives. A high quality of life contributes to job satisfaction and overall well-being.

Work-Life Balance: Negotiations may include provisions for flexible working hours,
family-friendly policies, and other measures that help employees achieve a healthy work-life
balance.

Job Security: A crucial aspect of the quality of life is job security. Collective bargaining
often addresses this objective by defining procedures for layoffs and employee protection in
cases of downsizing or plant closures.

Professional Development: Encouraging professional development and growth through

training and education programs enhances the quality of life for employees.

10. Labor Market Standards:

Collective bargaining helps set labor market standards, influencing not only the terms and
conditions of employment for unionized

5. Objectives of Collective Bargaining:

Collective bargaining is a versatile process that takes on different forms, each tailored to
specific situations and objectives. These types of collective bargaining reflect the diversity of
labor relations and the dynamic nature of labor agreements. In this section, we will explore
the primary types of collective bargaining:

1. Distributive Bargaining:

Distributive bargaining is a competitive type of negotiation where the parties involved see
the issue as a "fixed pie," and each party attempts to maximize its share of the limited
resources. This approach is often used when there is a clear trade-off, and what one party
gains, the other loses. It is particularly common in negotiations over wages and benefits.

Wage Negotiations: In wage negotiations, for example, employees seek higher pay while
employers aim to keep labor costs within a certain budget. The negotiation process involves
concessions and compromises to arrive at an agreement that both sides find acceptable.

Limited Resources: Distributive bargaining is characterized by the perception that

resources are limited, and any gain by one party must be offset by a loss for the other party.

Zero-Sum Game: It is sometimes referred to as a "zero-sum game" because one party's gain
equals the other party's loss.

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2. Integrative Bargaining:

Integrative bargaining, in contrast to distributive bargaining, is a more collaborative

approach to negotiations. It emphasizes the creation of "win-win" solutions where both labor
and management work together to identify common interests and solutions that benefit
everyone. The focus is on expanding the pie, rather than dividing it.

Mutual Gain: Integrative bargaining seeks to maximize mutual gain rather than pitting the
interests of one party against the other. This approach recognizes that both sides have shared
interests in the success of the organization.

Problem-Solving: The parties may engage in joint problem-solving to identify areas where
they can collaborate to enhance working conditions, productivity, and overall job satisfaction.

Innovation: Integrative bargaining encourages creativity and innovation in finding solutions

that align with the interests of both parties. It often leads to long-term agreements that foster
cooperation and a positive working relationship.

3.Concession Bargaining:

Concession bargaining comes into play when one party, often labor, is willing to make
concessions to reach an agreement. This might involve accepting reduced benefits or wages
in exchange for job security or other concessions from the employer.

Trade-Offs: Concession bargaining acknowledges that there may be trade-offs between

different aspects of the employment relationship. For example, employees might agree to
wage freezes or reductions in exchange for assurances of job retention.

Tough Economic Times: This type of bargaining is often employed during tough economic
times or when the organization is facing financial challenges that necessitate cost-cutting
measures.

Preserving Jobs: Concession bargaining may prioritize preserving jobs and job security
over maximizing individual compensation. Employees recognize that making certain
sacrifices can help protect the long-term viability of the organization.

4. Multi-Employer Bargaining:

Multi-employer bargaining occurs when several employers negotiate with the same labor
union simultaneously. It is common in industries where multiple employers share a labor
force, such as construction, trucking, or the entertainment industry. This type of bargaining
allows labor unions to negotiate on behalf of workers across various employers, setting
standards that apply to all.

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 Uniform Standards: The primary objective of multi-employer bargaining is to establish
uniform standards that apply to workers employed by different companies within the same
industry or sector.

Avoiding Wage Disparities: It helps avoid wage disparities between workers performing
similar tasks for different employers, promoting fairness in compensation and working
conditions.

Industry-Level Agreements: In multi-employer bargaining, industry-level agreements are

negotiated, which can include provisions related to wages, benefits, and other employment
terms that apply to multiple employers.

5. Pattern Bargaining:

Pattern bargaining is a strategic approach where an agreement reached between one

employer and a union sets a pattern for negotiations with other employers in the same
industry. This pattern is used as a model for subsequent agreements, ensuring consistency in
labor standards.

Establishing a Model: The first agreement, known as the "pattern agreement," establishes
the terms and conditions of employment for a specific group of workers in the industry.

Consistency: The objective is to maintain consistency in labor standards across the sector,
preventing significant variations in compensation and benefits among employees in similar
roles.

Economies of Scale: Pattern bargaining can provide labor unions with economies of scale
in negotiation and representation, as the initial agreement can be used as a template for
subsequent agreements.

6.Maintenance of Standards:

Maintenance of standards collective bargaining focuses on maintaining existing working

conditions, wages, and benefits, rather than seeking improvements. The primary goal is to
prevent any deterioration in labor conditions that might result from economic downturns or
changes in management.

Preserving Current Conditions: This type of bargaining is particularly relevant when

employees wish to ensure that their existing wages and benefits are not reduced, or their
working conditions are not compromised.

Security and Stability: Maintenance of standards bargaining prioritizes job security and the
stability of employment terms, even if it means foregoing additional gains.

Resistance to Erosion: Employees may engage in this type of bargaining to resist efforts
by employers to reduce previously established standards in areas such as compensation,
benefits, or job security.

7. Productivity Bargaining:

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 In productivity bargaining, negotiations are aimed at increasing overall workplace
productivity and efficiency. This can involve discussions on performance metrics, incentives
for productivity gains, and other related matters that improve the overall performance of the
organization.
Enhancing Efficiency: The primary objective is to enhance efficiency and productivity
within the workplace, leading to increased output and competitiveness.

Performance Metrics: Productivity bargaining may focus on establishing clear

performance metrics that employees and teams are expected to meet. These metrics often link
individual or group performance to compensation and incentives.

Quality and Quantity: The negotiations may cover aspects such as quality improvement,
output quantity, reduction of waste, and process efficiency.

8. Interest-Based Bargaining:

Interest-based bargaining is a problem-solving approach that focuses on the underlying

interests and needs of both parties rather than rigid positions. The goal is to find creative
solutions that address the fundamental concerns of both labor and management, ultimately
leading to mutually beneficial agreements.

Collaborative Problem-Solving: The parties engage in collaborative problem-solving and

engage in open and constructive dialogue to identify common interests and needs.

Moving Beyond Positions: Interest-based bargaining encourages the parties to move

beyond their initial positions and focus on the root causes of issues or concerns.

- *Custom Solutions*: This approach often results in custom-tailored solutions that address
the specific needs of the organization and its employees, fostering a sense of ownership and
commitment to the negotiated terms.

9. Enterprise-Level vs. Industry-Wide Bargaining:

Another distinction in collective bargaining relates to the scope of the negotiations, which
can be at the enterprise level or industry-wide. This distinction influences the specificity of
the agreements and their application.

Enterprise-Level Bargaining: In enterprise-level bargaining, negotiations are specific to a

single organization. Agreements reached here apply only to that organization and its
employees.

6. Case Study:

The 2018 Marriott International Strike: A Case

Study in Collective Bargaining and Human
Resource Management

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Introduction:

The labor-management relationship has been a cornerstone of Human Resource Management

(HRM). Collective bargaining is a crucial component of this relationship, allowing
employees to negotiate with their employers for better working conditions, wages, and
benefits. This case study delves into the 2018 Marriott International strike, an iconic event in
the hospitality industry that demonstrates the significance of collective bargaining in HRM.

Marriott International is one of the world's largest hotel chains, with a presence in over 130
countries and territories. In 2018, a labor dispute emerged between Marriott and thousands of
its employees, represented by the labor union UNITE HERE. The strike, which lasted for
over two months, had a profound impact on the hotel industry, showcasing the complexities
and dynamics involved in collective bargaining.

Background

Marriott International

Marriott International, headquartered in Bethesda, Maryland, is a global leader in the hotel

industry. It operates a wide range of brands, from luxury to budget, and is known for its
commitment to quality service and customer satisfaction. As of 2018, Marriott had over 6,500
properties worldwide and employed around 730,000 people. This case study specifically
focuses on Marriott's operations in the United States.

UNITE HERE

UNITE HERE is a prominent labor union in the United States and Canada, representing
workers in the hospitality, gaming, and food service industries. The union's mission is to
secure fair wages, decent working conditions, and job security for its members. UNITE
HERE has been involved in numerous labor disputes and strikes across the hospitality sector.

The 2018 Marriott International Strike

Union Demands

In early 2018, thousands of Marriott employees represented by UNITE HERE demanded

significant improvements in their working conditions and compensation. Key demands
included:

1. Better Wages: Employees sought higher wages that reflected the rising cost of living and
Marriott's profitability. They argued that many hotel workers struggled to make ends meet.

2. Healthcare Benefits: The union demanded affordable and comprehensive healthcare

benefits for employees and their families.

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3. Safe Work Environments: Workers called for enhanced safety measures and protections,
particularly for housekeeping staff who often faced the risk of workplace injuries.

4. Job Security: Given the industry's rapid changes and the threat of automation, employees
sought assurances of job security and protection against layoffs.

Strike Action

Negotiations between UNITE HERE and Marriott began, but as discussions stalled,
thousands of Marriott employees from various locations across the United States walked off
their jobs and went on strike. This strike, which started on October 8, 2018, was one of the
largest labor actions in the hotel industry's history.

Key Events and Developments

The Marriott International strike in 2018 featured several key events and developments:

1. Geographic Spread: Strikes occurred at Marriott hotels in major cities such as San
Francisco, Boston, Detroit, and Honolulu. This geographical diversity demonstrated the
widespread nature of the labor dispute.

2. Duration: The strike lasted for more than two months, making it a prolonged and
impactful labor action. Striking employees picketed outside hotels, raising awareness of their
demands and garnering public support.

3. Public and Media Attention: The strike received significant media coverage and public
attention. It shed light on the challenges faced by low-wage service workers in the United
States and generated both local and national support.

4. Impact on Business: Marriott's operations were significantly disrupted during the strike.
The company had to reduce services, leading to financial losses.

5. Political and Community Support: Elected officials, community organizations, and other
unions voiced their support for the striking Marriott workers, further amplifying the visibility
of the labor dispute.

Negotiations and Resolution

After more than two months of striking, UNITE HERE and Marriott International reached a
tentative agreement in December 2018. This agreement addressed several key demands:

1.Wage Increases: The new contract included wage increases for many Marriott workers,
helping them keep pace with the cost of living.

2. Healthcare Benefits: Employees secured improved healthcare benefits, ensuring access to

quality medical care for themselves and their families.

3. Safety Measures: The agreement included provisions to enhance safety and protection for
workers, particularly for housekeeping staff.

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4. Job Security: While not explicitly guaranteed, the contract included provisions addressing
job security and layoffs.

Outcome and Implications

The resolution of the 2018 Marriott International strike highlighted the power of collective
bargaining and the significance of HRM in labor relations. The strike had several key
outcomes and implications:

1. Improved Working Conditions: Marriott employees secured better wages, improved

healthcare benefits, and enhanced safety measures, contributing to improved working
conditions in the company.

2. Labor Solidarity: The strike illustrated the strength of labor solidarity and the impact of
collective action. It showcased the importance of unions in advocating for workers' rights and
interests.

3. Public Awareness: The strike raised public awareness about the challenges faced by low-
wage service workers in the hospitality industry. It sparked discussions about income
inequality and the working conditions of service employees.

4. Corporate Responsibility: The strike underscored the role of large corporations in

shaping HR policies and working conditions. It prompted Marriott International to reassess
its labor practices.

5. Ongoing Labor-Management Relations: The successful resolution of the strike laid the
groundwork for ongoing labor-management relations between Marriott and UNITE HERE.
Future negotiations and agreements would build upon the 2018 settlement.

Conclusion

The 2018 Marriott International strike serves as a compelling case study of collective
bargaining in HRM. It underscores the significance of collective action in addressing labor-
related issues, such as wages, benefits, and working conditions. The strike's resolution
highlights the power of negotiation and the role of labor unions in advocating for employees'
rights.This case study also demonstrates the broader implications of labor disputes, including
the impact on public awareness, corporate responsibility, and ongoing labor-management
relations. It showcases the complexity of HRM in large, multinational corporations and the
dynamic nature of labor relations in the 21st century.The Marriott International strike of 2018
is a testament to the ongoing struggle for fairness and justice in the workplace, and it serves
as a reminder of the importance of collective bargaining in shaping the future of HRM.

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5. Conclusion:

Collective bargaining is a dynamic and essential concept in contemporary labor relations. It

has a rich historical background, evolving from the struggles of industrial workers in the 18th
and 19th centuries to become a well-established process that shapes employment conditions
in the modern world. The process involves negotiations between management and labor
representatives, leading to agreements that determine crucial aspects of the employment
relationship, from wages to working conditions.The objectives of collective bargaining are
diverse, ranging from securing fair compensation and better working conditions to resolving
conflicts and promoting peaceful labor relations. The process can take various forms,
including distributive, integrative, and concession bargaining, each tailored to specific
circumstances.Despite its significance, collective bargaining is not without challenges and
controversies. Strikes and disruptions, associated costs, and concerns about inflexibility are
among the issues that continue to be debated. However, the importance of collective
bargaining in providing workers with a collective voice, balancing power dynamics, and
protecting employee rights cannot be understated.In a rapidly changing world of work,
collective bargaining remains a pivotal tool in promoting economic and social justice while
contributing to the well-being of employees and the sustainability of organizations. It
continues to be a cornerstone of labor relations, helping to shape the employment landscape
and uphold the rights of workers.

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