Collective bargaining

Collective bargaining is a component of negotiating work relationships and is a technique or method for industrial relations. The terms and conditions of employees within a bargaining unit are discussed during collective bargaining. In other terms, it is the process of negotiating agreements between employers or groups of employers to determine wages, benefits, working conditions, and other factors affecting employees' rights and remuneration (Katz, Kochan & Colvin, 2008). Through their trade union representatives, the employees communicate their interests to the employers. Negotiations between the parties result in collective employment agreement (CEA) collective bargaining agreement (CBA) thus set out the working hours, wage scale, overtime, health, and safety, right to participate in company or workplace affairs and mechanisms to air grievances. Other terms and condition include employers responsibilities and obligations; union and employees. The trade unions negotiate with certain employers (representing firms’ shareholding) or a group of companies (Katz, Kochan & Colvin, 2008).The negotiations different from country to country and may reach out cover industry-wide collective bargaining. Collective bargaining acts as the labor contract between the unions and the employers. Trade union representatives and company management engage in the negotiation process.

Steps in Bargaining Process

Preparation

The collective bargaining process is not different from day-to-day negotiations between parties. In the beginning, the employees form their grievances and together with their trade union prioritize sets of demand from the employers (Wilkinson, 2015). The union and employer representatives form the bargaining committee. The parties meet in bargaining table where the company considers several factors. Agreeing to employees should not render the firm uncompetitive; the wage increase should be below the level of productivity growth. The employer considers the inflation and the need for peace to allow continuous production.

Proposal

The employers have the tentative plan that will guide them in achieving these objectives. The plan can be modified during negotiation stage. The managers, for instance, may reorganize work to increase production and absorb the wage increase as a result of expected collective bargaining. The management clearly outlines the priorities (Wilkinson, 2015). Existing collective agreement should be used as the reference point. Where the agreements have unsatisfactory features, the management introduces change for better achievement.

Bargaining

The management and the trade unions have their teams in place. The role of each member is clearly outlined before the negations begin (Wilkinson et al. 2014). The employers have its representation from different company departments or expertise in a different discipline. The team should carefully study the demand of the trade unions paying attention to the economic impacts on the from among other factors without the proper success of these demands, and the agreement will lack durability due to inadequate addressing of the key problems.

The employer can formally make a written request to the unions before the commencement of negotiations. The written document should not be an obvious decline to the demands. It is a refusal in a language that considers merits. Negative responses are necessary as it creates greater opportunities where the employers can explain the reason behind the negative answers (Wilkinson, 2015). Rejecting the proposal at the negotiating table implies that the employer made a decision only after long hours of deliberations and not before. The employers try to convince the union why the demands are unacceptable.

The negotiations cannot proceed in the planned way, but it is essential to have alternative options. If wage increment is unacceptable, the employers should have another plan that is appealing to the trade unions. The trade union too as a party to the negotiations should have an alternative to the earlier demands. The later should appeal to the employer but also consider interests of the employees.

Agreement

The parties to the negotiation reaching an agreement should have a draft or a confirmation of the agreement. The agreement should have enough time for parties to re-read and interpret new clauses to avoid problems in future (Kiely et al. 2007). The agreement should be self-explanatory including interpretations, definitions. The agreement content depends on the subject matter but essential aspects such as the date, duration, definition of terms, procedures, consequences in case of breaching the agreement and implementation of the wage increment agreement. The parties can now sign the contract.

Collective Bargaining Strategies

Distributive Bargaining Strategies

The parties bargain the parties view negotiations as a zero-sum game. Similarly, the employers’ loss implies that workers loose and vice versa (Kiely et al. 2007). The negotiation strategy goals are accumulated the resource available. There are finite resources, and each party agrees that compromising results to giving up something to benefit the other party.

Integrative Bargaining Strategy

The strategy is applicable where both sides can win. The parties can win but not at the expense of the other party. Adding up the wins and losses at the negotiating table, the parties have positive gains thus the word positive sum game. For instance, the firm can increase over time to drive productivity leading to increased profit. The employees may demand increased wages, but the employer can consider working for extra hours, both parties gain something positive.

Pros and cons of Collective Bargaining

Pros

Dialogue and consensus are import in collective bargaining where parties agree without confrontations and conflicts. It is different between arbitration where solutions to issues are settled based on a decision negotiated by a third party. The collective bargaining agreement is a result of the compromise between the parties in a negotiation (Mowbray, Wilkinson & Tse, 2015). The outcome of arbitration may displease one party as it involves win/lose situation. Sometimes, the both sides may feel displeased. Dialogue institutionalizes collective bargaining settlement. For example, the collective agreement offers varying methods by which parties can use to settle disputes. Parties in many cases know beforehand the best methods that use to solve the issue at hand.

The collective bargaining allows participation and both parties in a negotiation know the cake to be shared (Wilkinson, 2015). Participation is due to sharing of powers to make rules of engagement between the trade unions and employers. In Malaysia and Singapore, the practical assignments, promotion, retrenchment, and layoffs are not included in the law and are left for collective bargaining agreements. Additionally, the collective bargaining agreement limits or renounces the dispute settlement through trade union action. The agreements save different countries from strikes thus guarantee industrial peace for the period covered by the agreements.

According to Mowbray, Wilkinson & Tse, (2015), collective bargaining essentially features the social partnership concept towards labor relations. The negotiations create a social partnership in this contexts involves employers and organized labor institutions. The parties use non-confrontational settlement of disputes arising between workers and their employers. As a byproduct of the relationship between parties, there is always generation of trust. The Parties acting bona fide have a mutual understanding that may establish a continuous relationship. Consequently, the trusts and mutual understanding provide attitudes of problem tracking as a unit rather than separate persons or groups.

The modern world experience constant changes in union loyalties and multiplicity of unions in different regions. Subsequently, the union memberships get stability due to proper collective bargaining agreements. Where trade unionization exists, the employees are unlikely to change their union affiliation (Wilkinson, 2015). The employers, on the other hand, experience constant changes in union membership and rivalry between unions that result in more disputes instead of solutions. However, collective bargaining plays an integral role in industrial relations improvement.

Cons

The collective bargain agreement reduces the management power in the companies. Therefore, the agreements derail and hinder constructive development from managers. The managers’ hand in business is weak and cannot remove unfavorable term and policies set in collective bargaining agreement. The contract extends to so many years meaning that the companies will wait for decades to implement changes. Additionally, the collective bargaining undergoes a rigid bureaucratic system. Time is taken to during negotiation through implementation result to time wastage and money loss to the companies. Futile talk’s events aggravate the situation instead of mitigating failures.

Conclusion

Collective bargaining is the process where employers and labor union negotiate over employment terms and relationships. Collective bargain agreement is the ultimate goal of collective bargaining. An agreement comprises of employment terms including but not limited to salaries, benefits, wages, working hours and procedures to air grievances. The process of negotiation is tedious but requires the professionalism and compromise of parties. The union and the employer reached an agreement but required to have good faith in their discussions until they find the solution to their stalemate. The Labor Relations Board under the National Labor Relations Act is mandated to enforce the collective bargain agreed by the parties (Bronfenbrenner & Warren, 2011). Not all parties in a negotiation will agree as collective bargaining caters the needs of the majority and disregards the few. The agreements negatively affect employees with exceptional circumstances and in other words, fail to agree. The employees have no say in the workplace.















References

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Katz, H.C., Kochan, T.A., & Colvin, A.J.S. (2008). An Introduction to Collective Bargaining & Industrial Relations (4th ed.) New York: McGrawHill.

Kiely, P., CCH New Zealand Limited., & Kiely Thompson Caisley. (2007). Collective bargaining. Auckland, N.Z: CCH New Zealand.

Mowbray, P. K., Wilkinson, A., & Tse, H. H. M. (July 01, 2015). An Integrative Review of Employee Voice: Identifying a Common Conceptualization and Research Agenda. International Journal of Management Reviews, 17, 3, 382-400.

Wilkinson, A. (2015). Handbook of research on employee voice. Place of publication not identified: Edward Elgar Publishing.