The collective bargaining process In Industrial Relations

 

This
is a mutual ‘give and take’ transactional relationship between representatives
of two institutions that is workers on one side and the employing organization
on the other to the mutual benefit of both. 
In the unionized organization, the collective bargaining process can be
thought of as a complex flow of events that occur in the determination of wages
and fringe benefits and other working conditions.  Union bargaining is used in a broad sense to
include those in professional organizations that bargain with employees over
variety of matters that are the most important aspect of the collective
bargaining process.

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The collective bargaining process In Industrial Relations

PURPOSE OF COLLECTIVE
BARGAINING

 1.      To
reduce Industrial conflict as it
provides understanding of each
other;

 2.      It
facilitates flow of commerce and
operations;

 3.      It
increases productivity and motivation;

 4.      It
increases responsibility and loyalty of workers.

ASPECTS OF THE COLLECTIVE
BARGAINING PROCESS

1.      These
include formation of unions;

 1.      Pre-negotiations’
strategies and facts on ages, working hours and conditions of service.

 2.      The
Collective Bargaining process itself;

 3.      Process
administering of the agreement.

TYPES OF BARGAINING RELATIONSHIPS

Selekman’s Categories of bargaining Relationships

1.     1. Counter Aggression (Confrontational)

This
type is characterized by union aggressively trying to extend its voice in the
company’s operations, with management trying hard to keep unions in check.

 2.      Conflict Relationship
(more confrontation)

This
is characterized by employers who accept union and attempt to get rid of the
union at every opportunity.

 3.      Power Relationship

This
type of bargaining is characterized by both parties attempting to gain any
possible advantage from the situation depending on the economic conditions.

 4.      Deal Relationship

This
relationship feature secret relationship and understanding been union leader
and top management with minimum involvement of rank and file workers.

 5.      Collusion Relationship

This
has much less desirable constraints than the deal bargaining relationship and
it involves manoeuvers to gain or maintain mutual advantage over the public or
competitors by controlling the market price or raw materials e.g. Kitwe Council
and Market levies.

 6.      Accommodation
Relationship

This
type is characterized by tolerance
and compromise on the part of both
parties but not forgetting the respective rights of their constituencies.

 7.      Mutual Relationship

This
relationship between the workers and employing organization is characterized by
mutual concern over matters above and beyond ages, hours and working conditions
such as matters of efficiency and technological change.  Both accommodation and mutual relationship
are characterized by an avoidance of extreme display of power.                                                                      

TYPES OF BARGAINING

The
Authors Walton & McKenzie argued
that there are 4 types of bargaining:

a)      Distributive bargaining
refers to the situation in which the goals of the two parties are in conflict
and which is assumed that the total values to be bargained are fixed so that
someone’s gain is another’s loss.

 b)      Integrative bargaining
refers to situations in which goals are not perceived as conflicting but in
which there is a problem of concern to all parties e.g. production, safety and
quality.

 c)      Attitudinal structuring
bargaining which is part of either distributive or
integrative bargaining. It refers to the activities in and surrounding
negotiations that serve to change attitude of relations.

 d)      Intra-organizational
bargain refers to activities that take place
within the union or within company management, to bring the expected principles
into alignment with those of chief negotiators. 
In short, there is a good deal of bargaining that goes on within unions
and company management about the position to be taken by the chief negotiators
of the two sides in actual collective bargaining sessions.

DISTRIBUTIVE
BARGAINING

1.      Pre-negotiation
proposals from members of union and present proposals to management.

 2.      Management
goes through the proposals rejecting some and accepting others.  Management also offers a list of their
demands – counter proposals.

 3.      Initial
discussion takes place;

 4.      Management
presents agreements;

 5.      Parties
proceed to hard bargaining starting with the non-economic demands with
provision,  management concedes to certain items provided the union drops
certain others or provided union agrees to certain management desired contract
changes.

 6.      Negotiating
the costs – items, monetary wages and fringe benefits in particular tedious
with the company’s starting from the position that the wage structure is
already satisfactory and that the union is asking a high increase.  Both sides face the problem the other to move
in the direction of the demand and trying to make the opponent reach the final
position without itself giving away its final position.

 7.      The
procedure continues until the company has revealed the maximum amount it will
grant including both wages and fringe benefits, and the union has essentially
revealed the minimum it will accept if the difference is small the two parties
can split into two and sign the agreement. If the difference is big and no
compromise is in sight the following may take place:

 a)      a
dispute will be raised

b)      you
must agree to have a reconciliatory

c)      if
this is not possible, the union must seek a strike authorization by way of
secret vote from the general membership.

 8.      If
the union resolves to go on a strike, the contest becomes one of economic
pressure and willing to make a sacrifice. 
One or both parties may by this time advertise its position and
supporting arguments.

 9.      When
agreement is finally reached, usually after concurrence by the union members
both parties may switch from belligerent to a more shaking hands, joking and
making statements about the contract being fair and just to employees and
stakeholders.

INTEGRATIVE BARGAINING

This
type is far less prevalent than distributive. 
The integrative bargaining requires a change in attitude on both sides,
i.e. management and union from an offensive-defensive position to genuine
interest in and concern for joint exploration of problems, fact gathering and
problem solving.  It becomes a way of
life for the two parties.

Examples
may be seen through:

a. Quality of work life
(QWL)

Quality
of work life is a systematic effort to create work situations that enhance
employees’ motivation and commitment, the factors that contribute to high
levels of organizational performance. QWL results (benefits) are increased
output, quality products and worker participation.  These improve affecting the organization.

For
QWL to succeed, the work place must be more democratic.  Committees are set up with representatives
from both the workers and management to determine what work has to be done.
This is called worker participation. The QWL programs support highly democratic
treatment of employees at all levels and encourage their participation in
decision-making

 The
process of changing the way jobs are done by rest maturing to make them more
interesting to workers.  This is done in
two ways:-

 i).     Job
enlargement (increasing the jobs). 
Employees have more responsibilities and use broader skills as well as
perform a wide variety of different tasks at the same level.

ii).   Job
enrichment (vertical).  This design of
jobs increases addition of fast employees levels responsibility and control.

 iii). Quality
circles.  These are small groups of
volunteers usually around ten (10) who meet regularly to identify and solve
problems related to the quality of work they perform and the conditions under
which people do their jobs. 
Organizations may have so many quality circles dealing with specific
areas.  These groups are trained in
problem solving.

  Issues
discussed and solved include:-

a)      Reduction
of vandalism or scrap or waste.

b)      How
to create safer working environment, developing employee skills, improving
morale and leadership.

c)      How
to improve product quality.

 Quality circles are good and
effective at bringing short-term improvements in quality of work life but less
effective in creating more permanent changes.

Once the short-term problems are
solved quality circles are disbanded. 
Quality circles have been an innovation of the Japanese industry.

Benefits of Quality Circles

1)      Increased
job satisfaction, organization commitment, and hence reduces turnover among
workforce.

2)      Increased
productivity as a result of reduction in cost and avoid defects.

3)      Increased
organizational effectiveness e.g. profitability and goal attainment.

4)      Opportunities
are provided to develop problem-solving abilities and increase job skills.

5)       Co-operative attitude and a spirit of teamwork
exist between management and employees.

 The
requirement of successful QWL is both management and labour must co-operate in
designing the program.  None of the two
should take the advantage of the other. 
Once agreed by all concerned, programmes must be implemented.  It is the responsibility of all employees
from the highest-ranking management officer to the lowest level of employee to
follow.