COLLECTIVE BARGAINING

Industrial Relations
prepared by: m h khan
Collective Bargaining

 Collective bargaining is the negotiation process

through which the terms and conditions of
employment for unionized staff are determined
 A team of employer representatives will meet with
a team of union representatives to exchange
proposals
Structure of Bargaining Unit

 Structure – the number and type of employer and

union groups
◦ Single-employer, single-union, single-establishment most
common
◦ Single-employer, single-union, multiple establishment also
common
◦ Single-employer, multiple-union, single establishment less
common
◦ Single-employer, multi-establishment, multi-union is rare
 The Negotiation Process

Distinctive features:
 Union–management negotiations address a broad
range of issues
 Union–management negotiations are statutorily
regulated
 Conducted by representatives of the parties who have
final approval
 Union–management relationships are long term
Q5. Bargaining Strategies

 Collective Bargaining Strategies

◦ Distributive approach is competitive
◦ Integrative bargaining is collaborative

 Sub Processes
◦ Attitudinal structuring influenced by activities that
impact on the parties relationship
◦ Intra-organizational bargaining occurs within each
team to achieve consensus within group
Q6. Preparation for Bargaining

 Must notify the other party of intention to

bargain — generally union notifies
 Required to commence bargaining in good
faith after receipt of notice
 Parties engage in extensive preparations
 Canvass constituents
Preparation

 Management will monitor:

◦ worker attitudes and concerns
◦ overall economic and political environment
◦ union’s developments
◦ local or industry wages
◦ company policies
◦ grievances
 Management will research non-wage issues
Preparation

The union will:

 Monitor economic and political context
 Solicit members input on proposals
 Hold membership meetings
 Conduct background research
Q2: - Bargaining Goals and Objectives

 Teams consider range of outcomes

 Establish target points (hoped for outcome)
 Establish resistance points (minimum
outcome party will accept)
 Then formulate an opening offer
Bargaining Goals and Objectives
(continued)

 To reach agreement resistance points

must overlap to some degree
 “Zone of potential agreement” — area
of overlap
 A non quantifiable principle may
prevent a positive settlement zone
Stages of Negotiations

◦ Stage 1 - Settling in (opponents get to

know each other)
◦ Stage 2 - Consolidation (each side puts
forward positions and arguments)
◦ Stage 3 - Finalization (settlement zone)
◦ Stage 4 - Mopping-up (drafting language)
Role of Bargaining Power

 Bargaining power is the ability to secure

another’s agreement on one’s own
terms. (Chamberlain and Kuhn, 1986)
 Union bargaining power increases:
◦ in good economic times when demand high
◦ if workers are highly skilled
◦ if majority of operation in bargaining unit
◦ if losses are imposed on employer from
strike, increased grievances, increased
absenteeism, vandalism and sabotage
Role of Bargaining Power

 Employer bargaining power relates to:

◦ The economic costs to workers of a
strike or lockout
◦ Legislation allowing use of replacements
workers
◦ Legislation that declares certain workers
essential or prohibits strikes
◦ Public Opinion
Role of Bargaining Power

 Bargaining power shifts quickly as a result of

economic and political trends
 With high unemployment, settlements have
been modest
 With impending retirement of baby boomers,
the balance of power may be about to shift
again
Overall Assessment

 Balance of power shifts to Employers in bad

economic times
 Workers are generally better off with
collective bargaining than without
 Unionized workers wages, benefits and
working conditions generally higher and
better than non-unionized staff