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Collective Bargaining

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Musom BBA
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10 views16 pages

Collective Bargaining

Uploaded by

Musom BBA
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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COLLECTIVE

BARGAINING:
MEANING & PROCESS
MEANING OF COLLECTIVE
BARGAINING
 Collective bargaining is a process of negotiations
between employers and a group of employees
aimed at reaching agreements to regulate working
conditions.
 The negotiation, administration, and

interpretation of a written agreement


between two parties, at least one of
which represents a group that is acting
collectively, that covers a specific period
of time.
MEANING OF COLLECTIVE
BARGAINING (CONTD.)
 The interests of the employees are commonly
presented by representatives of a trade union to
which the employees belong. The collective
agreements reached by these negotiations usually
set out wages, hours, and terms and conditions of
employment usually for two or three years at a
time.
OBJECTIVE AND SCOPE OF
COLLECTIVE BARGAINING
 Theobjective of collective bargaining is
to agree on a contract acceptable to
management, union representatives, and
the union membership.

 Thefinal agreement will reflect the


problems of the particular workplace and
industry in which the contract is
negotiated.
OBJECTIVE AND SCOPE OF
COLLECTIVE BARGAINING (CONTD.)
 Threemandatory bargaining issues were
defined by the Wagner Act as wages,
hours, and terms and conditions of
employment.

 The fourth issue covered in the contracts


is the grievance procedure, which is
designed to permit the adjudication of
complaints.
COLLECTIVE BARGAINING
PARTICIPANTS
 Labour (officer of the local union, and
some representative from the
national/international union)
 Management (in a small firms President;

in larger organizations senior manager for


industrial relations, corporate executives
and company lawyers)
 Government

 Financial institutions (as required)


PROCESS OF COLLECTIVE
BARGAINING
1. Preparing
2. Arguing
3. Signaling
4. Proposal
5. Packaging
6. Bargaining
7. Closing
8. Agreeing
1.PREPARING
 It is the first stage of collective bargaining . The job
is to organize a group to represent the workers.
 The group representing workers prepares a list of
proposals relating to the issues under dispute,
usually related to compensation and working
conditions.
2.ARGUING

 The second stage of collective bargaining is the


group representing the workers arguing and
substantiating their proposals, and the management
counter-arguing, trying to refute the worker’s
claims and contentions.
3.SIGNALING

 Sending signals across to the other party, through


subtle messages, change of tone, body language,
and other cues reveal to the other side that the
proposal under discussion will meet with little
resistance, can be accepted with modifications.
4.PROPOSAL
 One of the important stages of collective bargaining
negotiations is one side making a proposal in a bid
to end the argument and reach a settlement. Such
proposals are reconciliation of arguments made by
either side, based on the signals received.
5.PACKAGING
 Good negotiators package proposals. Packaging
involves making concessions, but placing items that
remain too tempting to resist along with some
compromises required from the other side, with the
condition that the proposal comes as a whole and is
not breakable. The other side makes counter-
packages.
6.BARGAINING
 This session usually involves off the record
conversations, some joint exercises to resolve a
deadlock, and very often culminate in a marathon
round of lengthy and hectic discussions to resolve
last minute glitches before both sides finally reach a
bargaining.
7.CLOSING

 Closing is the final step in the collective


bargaining process. Closing denotes
settlement time, or the time negotiation
ends. The negotiators walk back over the
negotiations and summarize all positions,
noting down agreements reached, issues
withdrawn, and issued deferred, and
clear ambiguities.
8.AGREEING
 The final stage of the collective bargaining process
is agreeing, or vetting the draft collective
bargaining agreement. Discussions in this stage
center on date for implementation of the settlement,
such as date of payment for revised wages and
introduction of new benefits, and other
considerations.
CONCLUSION

 Hence collective bargaining is one of the important


mechanism for fixing wages, benefits, facilities,
safe working conditions, and settlement of disputes
if arise in the organization.

REFERENCE
 Human Resource Management in Practice with 300
Models, Techniques and Tools by Srinivas Kandula

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