Collective Bargaining

& Negotiation

Khushdeep
Class mba (f)
Roll no 36

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 bargaining

For 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
organization
Management 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
Agreement
Written

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, and
Consent awards.

procedural

agreements or
substantive agreements

Contents of Collective Bargaining

Agreement
The

date of commencement of the

agreement

Its
A

duration

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

Bargaining
Trade

Union Recognition

Observance
Support
Good

of Agreements

of Labour Administration Authorities

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

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 NEGOTIATION
Certainty

The 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 deal

Seeking 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 objectives

The 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 parties

Whilst 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 Process

Preparation
and Planning

Definition of
Ground
Rules

Clarification
and
Justification

Bargaining
and
Problem
Solving
Closure and
Implementatio
n

1.Prparation and Planning

Prpare

You + your team

Know the other party
Know the Picture
Identify the objectives
Priortize the objectives

Prparation and Planning

Create

options
Select fair standards
Examine Alternatives
Select your strategy , tactics and
counter tactics
Develop a solid & approved team
Negotiation plan

2.Dfinition of Ground Rules

Introduction
Dtermine

who has authority

Rules and procedures
Prepare the facility
Use and agenda
Create a positive working climate
Exchange issues

3.Clarification and Justification

Specify

what you want

Problem identification
Put forward the solutions
Exchange information
Focus on objectives
Listen carefully and question thoroughly
Seek compromise: get win/win if possible
Remember optimum and fallback
positions

4.Bargaining and Problem Solving

Ask

for what you want:modify if you need

Don`t concede without exchanging
Decide on areas of possible flexibility
Use stratagies ,tactics and countertactics
Make counter offers
Know when to walk away

Bargaining strategies
Distributive

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 Implementation

Statement

of agreement
Document the agreement
Prepare Negotiation results and summary
Close the remaining gaps
Reach at a tentative agreement
Implement the deal
Monitor the implemantation

Issues in Negotiation
The

role of personality traits in negotiation :

Traits do not appear to have a significantly direct
affect on the outcomes of either bargaining or
negotiating process
Gender Differences in Negotiations
Women 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

references
http://www.uvm.edu/extension/community/nnco/cd/unit4a.ht
m#4a
http://www.teachingenglish.org.uk/lessonplans/negotiations-1-building-relationships
http://www.bms.co.in/explain-different-types-of-negotiationstrategies/
http://www.psych-it.com.au/theses/article.asp?page=6
http://www.negotiation.biz/negotiation_objectives.htm