Collective bargaining

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Collective Bargaining
Collective bargaining is process of joint decision making and basically represents a democratic way of life in industry.

Bargaining Form And Tactics

A collective bargaining process generally consists of four types of activities- distributive bargaining, integrative bargaining, attitudinal restructuring and intra-organizational bargaining.

Distributive bargaining: It involves haggling over the distribution of surplus. Under it, the economic issues like wages, salaries and bonus are discussed. In distributive bargaining, one partys gain is another partys loss.

Integrative bargaining: This involves negotiation of an issue on which both the parties may gain, or at least neither party loses. For example, representatives of employer and employee sides may bargain over the better training programme or a better job evaluation method.

Attitudinal restructuring: This involves shaping and reshaping some attitudes like trust or distrust, friendliness or hostility between labor and management. When there is a backlog of bitterness between both the parties, attitudinal restructuring is required to maintain smooth and harmonious industrial relations. It develops a bargaining environment and creates trust and cooperation among the parties.

Intra-organizational bargaining: It generally aims at resolving internal conflicts. This is a type of maneuvering to achieve consensus with the workers and management. Even within the union, there may be differences between groups. For example, skilled workers may feel that they are neglected or women workers may feel that their interests are not looked after properly. Within the management also, there may be differences. Trade unions maneuver to achieve consensus among the conflicting groups.

Characteristics Of Collective Bargaining

· It is a group process, wherein one group, representing the employers, and the other, representing the employees, sit together to negotiate terms of employment.
· Negotiations form an important aspect of the process of collective bargaining i.e., there is considerable scope for discussion, compromise or mutual give and take in collective bargaining.
· Collective bargaining is a formalized process by which employers and independent trade unions negotiate terms and conditions of employment and the ways in which certain employment-related issues are to be regulated at national, organizational and workplace levels.

Collective Bargaining Process
Collective bargaining generally includes negotiations between the two parties (employees representatives and employers representatives). Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment.
The collective bargaining process comprises of five core steps:
1. Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. In this phase both the employers representatives and the union examine their own situation in order to develop the issues that they believe will be most important. The first thing to be done is to determine whether there is actually any reason to negotiate at all. A correct understanding of the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required.
2. Discuss:Here, the parties decide the ground rules that will guide the negotiations. A process well begun is half done and this is no less true in case of collective bargaining. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached.
3. Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. In a word, this phase could be described as brainstorming. The exchange of messages takes place and opinion of both the parties is sought.
4. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when what ifs and supposals are set forth and the drafting of agreements take place.
5. Settlement:Once the parties are through with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.

Importance Of Collective Bargaining
Collective bargainingis, essentially, a recognized way of creating a system of industrial jurisprudence. It acts as a method of introducing civil rights in the industry, that is, the management should be conducted by rules rather than arbitrary decision making. It establishes rules which define and restrict the traditional authority exercised by the management.

Importance to employees

# Collective bargaining develops a sense of self respect and responsibility among the employees.
· It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group.
· Collective bargaining increases the morale and productivity of employees.
· It restricts managements freedom for arbitrary action against the employees. Moreover, unilateral actions by the employer are also discouraged.
· Effective collective bargaining machinery strengthens the trade unions movement.
· The workers feel motivated as they can approach the management on various matters and bargain for higher benefits.
· It helps in securing a prompt and fair settlement of grievances.
· It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced.

IMPORTANT

The Collective Bargaining ProcessBoth external and internal environmental factors can influence the process. The first step in the collective bargaining process is preparing for negotiations. This step is often extensive and ongoing for both union and management. After the issues to be negotiated have been determined, the two sides confer to reach a mutually acceptable contract. Although breakdowns in negotiations can occur, both labor and management have at their disposal tools and arguments that can be used to convince the other side to accept their views. Eventually, however, management and the union usually reach an agreement that defines the rules of the game for the duration of the contract. The next step is for the union membership to ratify the agreement. There is a feedback loop from Administration of the Agreement to Preparing for Negotiation. Collective bargaining is a continuous and dynamic process, and preparing for the next round of negotiations often begins the moment a contract is ratified.

Union Security The objective of union security provisions is to ensure that the union continues to exist and to perform its function.
1. Closed Shop: An arrangement whereby union membership is a prerequisite to employment.
2. Union Shop: An arrangement that requires that all employees become members of the union after a specified period of employment (the legal minimum is 30 days) or after a union shop provision has been negotiated.
3. Maintenance of Membership: Employees who are members of the union at the time the labor agreement is signed or who later voluntarily joins must continue their memberships until the termination of the agreement, as a condition of employment. This form of recognition is also prohibited in most states that have right-to-work laws.
4. Agency Shop: Does not require employees to join the union; however, the labor agreement requires, as a condition of employment, that each nonunion member of the bargaining unit pay the union the equivalent of membership dues as a kind of tax, or service charge, in return for the union acting as the bargaining agent. The agency shop is outlawed in most states that have right-to-work laws.
5. Exclusive Bargaining Shop: The company is bound legally to deal with the union that has achieved recognition, but employees are not obligated to join or maintain membership in the union or to financially contribute to it.
6. Open Shop: Employment that has equal terms for union members and nonmembers alike.
7. Dues Checkoff: The Company agrees to withhold union dues from members checks and to forward the money directly to the union.

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