Description
This is a presentation explaining on Collective Bargaining and Industrial Relations.
COLLECTIVE BARGAINING AND INDUSTRIAL RELATION
Definition
? “Collective Bargaining is a process in which the
representatives of a labour organization & the representatives of business organization meet and attempt to negotiate a contract or agreement, which specifies the nature of employee-employer union relationship”.
Why collective bargaining ?
? 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
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
Types of collective bargaining
1. Conjunctive/Distributive Bargaining - zero-sum game; win – lose
2. Co-operative Bargaining - more open to coming down from their high horses; win – win.
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 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
Sources Of Conflict
? Scarcity of resources: ?
?
?
? ?
availability of money Incompatibility of goals, needs and interests Different attitudes to work Ambiguity in responsibilities and roles Poor organizational structure Poor communication
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
Sources Of Conflict
? 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
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 ? 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
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
? 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
Establishing a bargaining relationship:
? Employment contract, whereby employer and
employee agree on wages and conditions of employment ? Unions then demand recognition from management. This formalizes management union relationship ? A bargaining relationship is established when management and union formally agree to enter into negotiations
Collective Bargaining Process
Prepare Discuss Propose
Bargain Settlement
Nature Of Collective Bargaining
? A rational process where conflicting
interests are reconciled ? A forum where unions go to “collect” and Management goes to “bargain”
Bargaining Styles
1. Distributive bargaining 2. Integrative bargaining
Distributive bargaining
? this is the most common type ? Management and unions are in opposing positions and gain for ?
? ? ? ?
one is a loss for another These would be around wages and conditions of employment In distributive bargaining power is used as part of the strategy and tactics on both side Each party strives towards an outcome that is favorable to its own side Both parties are thus assessing strengths and weaknesses on both sides Both parties are looking to how much they can push the other party Each party assesses its ability to withstand being pushed
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 minimized
? Matters dealt with include: job security, procedures, promotions,
benefits and institutional security ? Problems like promotions are dealt with jointly and one party does not impose its view on the other party ? Both parties identify and recognize the problem and search for solutions through exploring alternatives
Four 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
? 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
Outcome Of Collective Bargaining
? The outcome of a collective bargaining process is an ? ?
?
?
agreement Agreement can stipulate a time factor to the agreement, for e.g. wage increase for one year only or for a number of years 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.
Industrial Relations
INDUSTRIAL RELATIONS
? The term „industrial relations? refers to relationships
between management and labour or among employees and their organizations that characterize or grow out of employment. There are two parties in „employment? relationship-labour & management. Both parties need to work in a spirit of cooperation, adjustment & accommodation.
Major Influences
Objectives of Industrial Relations
? To enhance the economic status of the workers. ? To regulate the production by minimizing industrial
conflicts through state controls. ? To socialize industries by making government an employer. ? To provide an opportunity to the workers to have a say in management & decision making. ? To encourage & develop trade unions in order to improve the workers? collective strength. ? To avoid indusial conflicts & their consequences. ? To extend & maintain industrial democracy.
Approaches to Industrial Relations
?Psychological approach: The problems of industrial
relations are attributable to the differences in the perceptions of labour and management.
? Sociological approach: A number of sociological
factors such as the value system, customs, and traditions-affect the relations between labour and management.
Approaches to Industrial Relations
?Giri approach: Collective Bargaining and Joint
Negotiations be used to settle disputes between labour and management. ?Outside interference must be avoided
? Gandhian approach: Gandhiji accepted the worker?s
right to strike ? This right be exercised in just cause and in a peaceful, non-violent fashion. ? The trusteeship theory -wealth belongs to society and not to the owners of an enterprise.
Approaches to Industrial Relations
? Human relations approach: Human behavior is
influenced by a variety of social and psychological factors, not just earnings. ? To reduce friction and conflict in the workplace, managers need to possess effective social skills. ? Every attempt must be made to integrate the individual objectives with overall organizational objectives
HRD Approach to Industrial Relations
Human Resource Development involves ?ways to better adjust the individual to his job & environment. ?the deepest involvement of an employee in various aspects of his work. ?the greatest concern for enhancing the capabilities of the individuals.
Employer
? An employer can be defined from different
perspectives as:? A person or business that pays a wage or fixed payment to other person(s) in exchange for the services of such persons. ? A person who directly engages a worker/employee in employment.
Employee
? Employee is a person
who is hired by another person or business for a wage or fixed payment in exchange for personal services and who does not provide the services as part of an independent business. ? An employee is any individual employed by an employer.
The Labour Market
? The market in which workers compete for jobs and
employers compete for workers.
Essential Conditions for Sound Industrial Relations
? Existence of strong, well organized and democratic
employees? unions.
? Existence of sound and organized employers? unions. ? Spirit of collective bargaining and willingness to
resort to voluntary negotiations.
? Maintenance of industrial peace.
doc_689748046.pptx
This is a presentation explaining on Collective Bargaining and Industrial Relations.
COLLECTIVE BARGAINING AND INDUSTRIAL RELATION
Definition
? “Collective Bargaining is a process in which the
representatives of a labour organization & the representatives of business organization meet and attempt to negotiate a contract or agreement, which specifies the nature of employee-employer union relationship”.
Why collective bargaining ?
? 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
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
Types of collective bargaining
1. Conjunctive/Distributive Bargaining - zero-sum game; win – lose
2. Co-operative Bargaining - more open to coming down from their high horses; win – win.
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 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
Sources Of Conflict
? Scarcity of resources: ?
?
?
? ?
availability of money Incompatibility of goals, needs and interests Different attitudes to work Ambiguity in responsibilities and roles Poor organizational structure Poor communication
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
Sources Of Conflict
? 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
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 ? 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
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
? 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
Establishing a bargaining relationship:
? Employment contract, whereby employer and
employee agree on wages and conditions of employment ? Unions then demand recognition from management. This formalizes management union relationship ? A bargaining relationship is established when management and union formally agree to enter into negotiations
Collective Bargaining Process
Prepare Discuss Propose
Bargain Settlement
Nature Of Collective Bargaining
? A rational process where conflicting
interests are reconciled ? A forum where unions go to “collect” and Management goes to “bargain”
Bargaining Styles
1. Distributive bargaining 2. Integrative bargaining
Distributive bargaining
? this is the most common type ? Management and unions are in opposing positions and gain for ?
? ? ? ?
one is a loss for another These would be around wages and conditions of employment In distributive bargaining power is used as part of the strategy and tactics on both side Each party strives towards an outcome that is favorable to its own side Both parties are thus assessing strengths and weaknesses on both sides Both parties are looking to how much they can push the other party Each party assesses its ability to withstand being pushed
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 minimized
? Matters dealt with include: job security, procedures, promotions,
benefits and institutional security ? Problems like promotions are dealt with jointly and one party does not impose its view on the other party ? Both parties identify and recognize the problem and search for solutions through exploring alternatives
Four 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
? 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
Outcome Of Collective Bargaining
? The outcome of a collective bargaining process is an ? ?
?
?
agreement Agreement can stipulate a time factor to the agreement, for e.g. wage increase for one year only or for a number of years 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.
Industrial Relations
INDUSTRIAL RELATIONS
? The term „industrial relations? refers to relationships
between management and labour or among employees and their organizations that characterize or grow out of employment. There are two parties in „employment? relationship-labour & management. Both parties need to work in a spirit of cooperation, adjustment & accommodation.
Major Influences
Objectives of Industrial Relations
? To enhance the economic status of the workers. ? To regulate the production by minimizing industrial
conflicts through state controls. ? To socialize industries by making government an employer. ? To provide an opportunity to the workers to have a say in management & decision making. ? To encourage & develop trade unions in order to improve the workers? collective strength. ? To avoid indusial conflicts & their consequences. ? To extend & maintain industrial democracy.
Approaches to Industrial Relations
?Psychological approach: The problems of industrial
relations are attributable to the differences in the perceptions of labour and management.
? Sociological approach: A number of sociological
factors such as the value system, customs, and traditions-affect the relations between labour and management.
Approaches to Industrial Relations
?Giri approach: Collective Bargaining and Joint
Negotiations be used to settle disputes between labour and management. ?Outside interference must be avoided
? Gandhian approach: Gandhiji accepted the worker?s
right to strike ? This right be exercised in just cause and in a peaceful, non-violent fashion. ? The trusteeship theory -wealth belongs to society and not to the owners of an enterprise.
Approaches to Industrial Relations
? Human relations approach: Human behavior is
influenced by a variety of social and psychological factors, not just earnings. ? To reduce friction and conflict in the workplace, managers need to possess effective social skills. ? Every attempt must be made to integrate the individual objectives with overall organizational objectives
HRD Approach to Industrial Relations
Human Resource Development involves ?ways to better adjust the individual to his job & environment. ?the deepest involvement of an employee in various aspects of his work. ?the greatest concern for enhancing the capabilities of the individuals.
Employer
? An employer can be defined from different
perspectives as:? A person or business that pays a wage or fixed payment to other person(s) in exchange for the services of such persons. ? A person who directly engages a worker/employee in employment.
Employee
? Employee is a person
who is hired by another person or business for a wage or fixed payment in exchange for personal services and who does not provide the services as part of an independent business. ? An employee is any individual employed by an employer.
The Labour Market
? The market in which workers compete for jobs and
employers compete for workers.
Essential Conditions for Sound Industrial Relations
? Existence of strong, well organized and democratic
employees? unions.
? Existence of sound and organized employers? unions. ? Spirit of collective bargaining and willingness to
resort to voluntary negotiations.
? Maintenance of industrial peace.
doc_689748046.pptx