How does collective bargaining work?

[luttu]

Explain the process of collective bargaining?

[nbm]

Before the bargaining conference begins, each side fixes the composition of its negotiating team, prepares for the negotiation and works out its strategy and tactics.
(1) Negotiating Team—On the company side the negotiating team may consist of the personnel manager production manager and the company lawyer. It is hot essential for the number of representatives on the employer's side and the workers, side lo equal, as decisions are not taken by majority vote. On the workers' side where there is a single trade union the negotiating team consists of that union. If there are several unions, the management has a problem in deciding whom to accept as the bargaining agent. It may follow any one of the following courses:
(a) Select the representative union by secret ballot;
(b) Select through verification of membership by some government agency,
© Bargain with a joint committee of the major unions;
(d) Bargain with a negotiating committee in which different unions would be represented in proportion of their verified membership;
(e) Bargain with a negotiating committee which consists of representatives of every department of the organisation elected by secret ballet irrespective of their union allegiance.
(2) Bargaining Power—Before the negotiations start, each side in collective bargaining weighs its bargaining power and also determines the maximum concessions which it will give to the other side. This depends mainly on the estimated cost of the work stoppage (strike or lockout) to the party concerned and also on its estimate of the other party's cost arising out of the stoppage. The higher the expected cost of work stoppage to the management, the greater would be the concessions which it would offer to the other party. Some factors which determine the cost of stoppage are as under:
(i) Existing state of the market for its product or service;
(ii) Availability of labour;
(iii) Financial capacity to pay;
(iv) Technology implications;
(v) Reactions of the shareholders and directors;
(vi) Union's strength;
(vii) Government’s laws and altitudes.
(3) Preparation for Negotiations—Both the parties should prepare the list of items which are to be discussed in the conference. The supervisors should record situations which indicate the need for any existing agreement. The supervisor should also study grievance records. Management should prepare a list of resource people in the company. It becomes important for management to plan its strategy prior to entering the conference room. '
(4) Bargining Conference—The bargaining conference usually arranges f6r a chairman to conduct the proceedings. There is opening statement by a leader from each side. This is followed by a general discussion or exchange of views.
(5) Agreement—The usual outcome of collective bargaining is the collective agreement or labour contract. It is the charter on which employers and unions agree.

Points to be remembered in a Negotiation Process
Following are some important points to be remembered in a negotiation process:
(1) Composition of the Negotiating Team—The negotiating team should consist of members who have balanced views, even temper, analytical mind and objective outlook. They must possess the skills of analysing the problems and finding out the relevant parameters. They should have full authority to speak for their sides and make decisions.
(2) Ready availability of relevant material—The personnel manager must see that all necessary data about rates of pay, fringe benefits etc. relating to other units and industry as a whole have been duly collected and tabulated. He should be ready with a complete analysis of all proposals included in the draft agreement.
(3) Good beginning—'Well begun is half done' and this is no less true in the field of collective bargaining. It will be well to stress the need for mutual co-operation and for putting the members in the right frame of mind before the talks start. Tempers must be carefully controlled. Conflict should be localised and not allowed to spread into a mass conflagration. Probing into the cause of conflicts in the past may be necessary to avoid conflicts in future. But an analysis of past conflicts should not prejudice the present views and attitudes or cloud the vision of negotiators. The negotiators from both sides should have credibility and a sense of humour. Credibility is the management's greatest asset, its formidable shield which makes it overcome many a crisis.
(4) Continuity of talks—Collective bargaining is like any other negotiation and, with all the goodwill in the world, there will on occasions be emotional outbursts and road blocks. The important thing is never to reach a dead end but to sidetrack blind alleys and keep talks continuing. It may at time be necessary to leave controversial points alone for the being and leap over to the next issue. As the field of agreement is widened and the field of disagreement is narrowed down, small gaps can be bridged over more easily later. As long as talks continue ultimate solution will be possible. To keep the discussion fluid is, therefore, very important.
(5) Problem-solving attitude—The approach at the bargaining table, as in day-to-day work, is essentially not a fighting but a problem-solving approach. In this, the important factor is to replace opinions and impressions by facts and figures and to assess these facts objectively and analytically. Application of principle and methods of industrial engineering is valuable in solving the problems of wage fixing, promotions, standardisation of work load etc.