The Process Of Collective Bargaining

The collective bargaining process contains a number of stages. However, over time each union and management situation develops slight modifications that are necessary for effective bargaining to occur.

1.    Preparation

    Both labour and management representatives spend extensive time preparing for the negotiations to follow. Data on wages, working conditions, management and union rights, benefits productivity and absentism is gathered and analysed. Each party outlines its priorities and tactics to use to get what it wants.

2.    Initial Demands

    These are expectations of either party presented during the negotiations.

3.    Continuing Negotiations

    Here each party attempts to determine what the other side values highly and to reach the best bargain possible, e.g. the union may offer to give up dental benefits (as dental cases have not been very numerous for higher wages). The management on its side determines what the union values highly and how to make it give up some of it.

4.    Bargaining Impasse

    Regardless of the structure of the bargaining process, labour and management do not reach an agreement always on all issues. In such cases deadlock cases may result in strikes by the union or a lock-out by management.

5.    Settlement and Contract

    After initial agreement on the issue being negotiated on has been made, the two parties, i.e. union and management representatives usually return to their constituencies to determine if what they have formally agreed on is acceptable. The crucial stage thereafter negotiations are ratification or getting a vote of acceptance. After ratification of the agreement, then the agreement is formalised with a contract.

6.    Bargaining Behaviour

    It is worthwhile just to mention that collective bargaining is not just a logical and rational process. The behaviour of the negotiators plays a critical role. Walton and McKinsey have identified four types of behaviour sub-processes present in collective bargaining.

(a)Distributive Bargaining

    This occurs when there is conflict over an issue and one party must win and the other lose.

(b)Integrative Bargaining

occurs when both the management and union face a common problem and must work together for a solution. For instance when the union and management are concerned with employee absenteeism and discipline and alcoholism, under-integrative bargaining. The parties might negotiate a joint program that identifies how alcoholism—caused discipline problems are to be handled.

(c)Attitudinal Structuring

occurs when each side attempts to affect the climate of the negotiations. The climate created and the attitude of the other party often result in the six bargaining strategies i.e. from conflict to collusion.
 
(d)Intra-organizational bargaining

This occurs when disagreements exist within labour or management. For instance, union members favour dental insurance while others favour higher retirements. This would be a conflict in itself.