collective bargaining
TRANSCRIPT
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Collective Bargaining
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Definition
Beatrice and Sidney Webb defined collective bargaining as: one method whereby trade unions could
maintain and improve their members’ terms of employment
Accordingly collective bargaining is a trade union initiated process
If employees didn’t form unions and make demands the bargaining process would not have happened
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Definition
Definition The prime aim for unions is to improve
wages & conditions of employment This definition however fails to discuss
the interactive nature of the process and its central position in labour relations
Collective bargaining is a two way process and the pressure to negotiate comes from both sides
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Definition
Collective bargaining is the principle method whereby employers and employees establish and continue a relationship
This is an important means of communication which Allows the two sides to get together and talk about problems, needs, goals and to settle differences
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Definition
An alternative definition: “ a method of determining the terms and conditions of employment and regulating the employment relationship between representatives of management and employees with the intention to reach an agreement which may be applied to a group of workers.
This definition is used by Salamon.
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Collective Bargaining
Commonality of interest as a basis for bargaining: Bargaining would not take place if there was no
common interest to bargaining Parties work together to produce goods and
services Together they work for the long term future of
the of the company Bargaining is based on pluralism Both parties recognise each others right to exist
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Collective Bargaining
The role of conflict in bargaining: Bargaining would not occur if there was no
conflict Parties have different needs, goals,
interests, attitudes, values and perceptions These goals are pursued at the costs of the
other party If parties have sufficient power then they
use collective bargaining as a way forward
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Collective Bargaining
Role of conflict: The agreement to bargain does not
negate or eliminate conflict Conflict should not be seen as
dysfunctional leading to destruction Instead many see conflict as leading
to innovation and change to bring about improvement in an organisation
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Collective Bargaining
Sources of conflict are: Scarcity of resources: availability of
money Incompatibility of goals, needs and
interests Different attitudes to work Ambiguity in responsibilities and roles Poor organisational structure Poor communication
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Collective Bargaining
Sources of conflict Most important over: wages and salaries Management has to see to shareholder
profits and workers want more money Productivity needs may force the firm to
operate different work practices and the unions might resist this
Companies might want to dismiss inefficient workers and the union would resist this, demanding job security
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Collective Bargaining
Employees might demand shorter working hours, longer vacation leave and more time off for training
Employees might insist on stricter health and safety controls which would be expensive for the company
Employers demand loyalty to the firm whereas employees see it as the individual right to change jobs when the opportunity arises
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Collective Bargaining
These are the issues that are brought to the bargaining table
Both parties realise the need to handle conflict effectively
These include the day to day activities of the organisations
Conflict is thus not confined to the bargaining table
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Collective Bargaining
Power regulated the bargaining process: If one party has more power it will
override the interest of the other party
Historically management has had more power than the workers
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Collective Bargaining
Power: Management's sources of power is their
ownership and/or control over the firm Workers power comes from their ability
to withhold labour collectively - strikes On an individual level workers hold very
little power and its only in trade unions that they have power
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Collective Bargaining
Power: The law defines the parameter of power The legality of the use of the strike can
ensure that workers have power, making strikes illegal takes power away from workers
Having the power of the collective makes trade unions powerful since they can stop the production process
Power somewhat weakened by no work no pay
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Collective Bargaining
Once a bargaining relationship has been established both parties will bring their power to the bargaining table
Employers can withhold work opportunity by locking out workers and this way they do not receive any wages
The ability to hire casual labour during strike action can give employers power
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Collective Bargaining
Establishing a bargaining relationship: Employment contract, whereby employer
and employee agree on wages and conditions of employment
Unions then demand recognition from management. This formalises management union relationship
A bargaining relationship is established when management and union formally agree to enter into negotiations
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Nature of C.B
A power gameA rational process where conflicting interests are reconciledA forum where unions go to “collect” and Management goes to “bargain”
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Collective Bargaining
Bargaining styles: Distributive bargaining: this is the most
common type Management and unions are in opposing
positions and gain for one is a loss for another
Antagonism dominates the bargaining items
These would be around wages and conditions of employment
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Collective Bargaining
In distributive bargaining power is used as part of the strategy and tactics on both sideEach party strives towards an outcome that is favourable to its own sideBoth parties are thus assessing strengths and weaknesses on both sidesBoth parties are looking to how much they can push the other partyEach party assesses its ability to withstand being pushed
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Collective Bargaining
Bargaining styles: Integrative Bargaining: This is when both
parties want a successful outcome and there is a genuine desire to solve a problem
In integrative bargaining items are seen as problems that need resolving
Integrative bargaining strives for a win –win situation
Conflict is minimised
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Bargaining Styles
Matters dealt with include: job security, procedures, promotions, benefits and institutional securityProblems like retrenchment and promotions are dealt with jointly and one party does not impose its view on the other partyBoth parties identify and recognise the problem and search for solutions through exploring alternatives
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Collective Bargaining
Bargaining Structure: Refers to bargaining units and bargaining
levels Bargaining unit is the employees that will be
covered by the agreement Bargaining level refers to whether
bargaining will take place on a decentralised or a more centralised level
Bargaining structure determines which employees are covered by an agreement
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Collective Bargaining
Types of bargaining structures Narrow decentralised units: when a
union represents the interest of one group of workers at a particular plant
Broad decentralised units: Unions of several unions combine to form one bargaining unit represent different sets of employees
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Collective Bargaining
Bargaining structures: Narrow centralised units:when a union or
several unions representing a particular sector at a company or industry, or different industries bargain centrally
Broad decentralised units: a union or a number of unions represent diverse interests bargain with a number of employees in an industry
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Collective Bargaining
Outcomes: The outcome of a collective bargaining
process is an agreement There is usually an agreement to bargain
regularly over wages and other conditions of employment
Agreement can stipulate a time factor to the agreement, for e.g. wage increase for one year only or for a number of years
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Outcomes
All agreement are enforceable by law.All parties are bound to the terms and conditions set out in the agreement.While parties cannot withdraw from and agreement, clauses can be inserted to allow for conditional withdrawal.