Professional Documents
Culture Documents
1. It is a group process
2. It involves negotiations
3. It is a bipartite exercise
4. Objective: to reach an agreement
5. Purpose of agreement: improve working conditions
of employees
6. It is a socio-economic process
7. Rules, regulations, conventions and customs which
are developed by trade unions, management,
corporations and the government are meticulously
followed.
Scope (Aspects covered)
Negotiation
Negotiation Overcoming negotiation
breakdown breakdown
Negotiated agreement
Ratification of agreement
Implementation of agreement
1. Preparation for negotiation
From the management side:
1. Management should decide when to open
the negotiation.
2. Management must decide the representatives to
negotiate at the negotiation table.
3. There should be analysis of the impact of
various decisions which may emerge out of
negotiations.
4. Draft for likely decisions should be prepared in
advance so that final agreement draft can be
prepared as soon as the negotiation process is over.
From the employees’ side:
1. The union should collect the facts about the financial
position of the company and its ability to pay.
4. Administrative issues:
determination of seniority, basis of promotion,
employee discipline and discharge procedure,
grievance procedure, employee health and
safety measures, work rules, job security and
job changes, training, technological changes, etc.
3. Negotiation
Types of negotiating procedure:
1. Haggling Bargaining:
piecemeal approach, total approach
2. Boulwarism: company conducts comprehensive
research and survey the needs of the employees.
Based on the analysis of the findings, the company
designs its own package based on the issues of
bargaining.
3. Continuous bargaining: involves parties to
explore particular difficult bargaining problems
in joint meetings over the long period of time,
sometimes throughout the life of each agreement.
Activities (Strategies) in collective bargaining:
1. Distributive bargaining: straight out haggling over the
distribution of surplus (wages/salaries, bonus and other financial
issues).
Win-lose
3. Attitudinal structuring:
for smooth bargaining and maintaining harmonious relations
afterwards.
4. Intraorganisational bargaining:
maneuvering to achieve consensus within the labour and
management organisations. Consensus is required for the smooth
acceptance of outcomes of bargaining process.
4. Initial negotiated Agreement: