Process of Collective Bargaining
The following steps are included in the collective bargaining procedure:
1. Identification of the problem
The nature of the difficulty influences whole process. Whether the difficulty is very significant that is to be discussed instantly or it can be postponed for some other convenient time, whether the difficulty is a minor one so that it might be solved with the other party's approval on its presentation and does not have to involve long procedure of collective bargaining procedure, etc. It also influences, their size, period of negotiations, selection of representatives and period of agreement that is attained ultimately. As such it is significant for both the parties to be apparent regarding the problem before entering into the negotiations.
2. Collection of data
Labour and management both initially spend considerable time collecting relevant data associating to, disciplinary actions, grievances, transfers and promotions, overtime, lay-offs ,former agreements covering wages, working conditions (internal sources) , benefits and present economic forecasts, cost of living trends, wage rates in a region across several occupations, competitive terms offered by rivals in the field etc.
3. Selection of negotiators
The success of collective bargaining based on the skills & knowledge of the negotiators. Therefore considerable time should be devoted to the chosen of negotiators with requisite qualifications. Generally, effective negotiators should contain a working knowledge of trade unions principles, economics, operations, psychology, and labour laws. They should be nice judges of human nature and be capable to get along with people easily. They have to know when to listen, when to speak, while to stand their ground, when to horse-trade, while to concede, and when to make counter proposals. Timing is vital. Effective speaking and debating skills are necessary.
4. Climate of negotiations
Both of parties must decide suitable time and set a correct climate for initial negotiations. At this stage the parties have to determine whether the tone of the negotiations is going to be one of mutual trust along 'nothing up our sleeves', one of suspicion with a number distortion and misrepresentation, or one of hostility with a number of name calling and accusations.
5. Bargaining strategy and tactics
The strategy is the plan and the policies that shall be pursued at the bargaining table. Tactics are the particular action plans taken in the bargaining sessions. It is significant to spell out the strategy and tactics in white and black, broadly covering the following aspects:
- Likely union proposals & management responses to them.
- A listing of management demands, restrictions of concessions and anticipated union responses.
- Growth of a database to support proposals advanced by management & to counteract union demands.
- A contingency operating schema if things do not move on track.
Box 1: Popular Bargaining Tactics (Sloane and Whitney)
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A. Armed truce: Each of party views the other as an adversary. Although they are adversaries, it is predictable that an agreement have to work out under the guidelines specified by the law. Actually, the law is followed to the letter to attain agreement.
B. Conflict-based: Each of party uncompromising, takes a hard line, and resists any overtures for agreement or compromise. In general, what happens is that one party mirrors the other party's actions.
C. Accommodation: Both of parties adjust to each other. Positive compromises, tolerance and flexibility are used, instead of emotion and raw power. It is claimed that most of managers and union leaders have engaged in accommodation for the bulk of union-management bargaining issues.
D. Conflict-based: Each of party uncompromising, takes a hard line, and resists any overtures for agreement or compromise. Normally, what happens is that one party mirrors the other party's actions.
E. Cooperation: Each of side accepts the other as a full partner. It means that management and the union work jointly not only on daily matters but in such difficult areas as technological change, development is quality of work life, & business decision making.
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Generally speaking each side tries to seek how far the other side is eager to go in terms of concessions, and the minimum levels each is eager to accept. "Take it or leave it" type of extreme positions would spoil the show and therefore parties should ignore taking such inflexible and rigid stand initially. Winning negotiations, after all, are contingent upon each of side remaining flexible. Each of party should be willing to concede up to a definite extent based on one's own compulsions and pressures, having a view to win over the other party. This is generally known as "bargaining zone" which is the area enclosed by the restrictions within which the union and workers are eager to concede. If neither party is ready to concede a little bit, negotiations attain a deadlock or impasse, which eventually may result in a strike on the part of or a lockout or union on the part of management.
Box 2: Bargaining Limits
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Reed Richardson has the advice for bargainers as following :
A. Be sure to set apparent objectives for every bargaining item, and be sure you understand the cause for each.
B. When in doubt, caucus with your associates.
C. Do not hurry.
D. Always strive to keep some flexibility in your position.
E. Be prepared well with firm data supporting your position.
F. Don't concern yourself just with what the other party says and does; search why.
G. Be alert to the real intentions of the other party- for goals and for priorities.
H. Build a reputation for being fair but firm.
I. Be a good listener.
J. Learn to control your emotions and utilize them as a tool.
K. Respect the significance for face saving for the other party.
L. Measure each of moves against your objectives.
M. As you make each bargaining move, make sure you know its relationship to all of other moves.
N. Remember that collective bargaining is a compromise procedure; There is no such thing as having all of the pie.
O. Pay close attention to the wording of every clause negotiated; they are frequently a source of grievances.
P. Try to understand people & their personalities.
Q. Consider the impact of present negotiations on those in future years. Reed Richardson
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Impasse, therefore, is a collective bargaining situation while the parties are not able to overcome their differences, typically because one of party is demanding more than the other will offer. One way to ignore impasse is to postponement of hard issues to afterwards stage and take up simpler ones first with a view to contain initially smoother passage. Another way to ignore breakdowns is for each of side to be prepared to offer propositions & to accept substitute solutions to some more controversial issues. Skilled negotiators as declared by Richardson, take charge of the issue through logical presentations, good manners & cool behaviour.
Formalising the agreement: While a solution comes through what is widely known as 'good faith bargaining' (Both of parties are making every reasonable attempt to arrive at agreement, proposals are being matched along counter proposals), a formal document have be prepared expressing everything in a simple, apparent and concise form. After this, both of parties have to sign the agreement and abide by its terms & conditions during the whole term of the contract.
Box 3: Content of a Labour Agreement
Enforcing the agreement: Collective bargaining does not come to an end along the signing of the agreement. For the agreement to be effective and meaningful, both of parties have to adhere to the conditions agreed upon and implement all of scrupulously.