Process of Collective Bargaining

 

What is Collective Bargaining in the Workplaces?

An agreement between workmen or trade union(s) and employer(s), on terms and conditions of employment and the manner of settlement of industrial disputes are known as collective agreements. It has become a successful result of collective bargaining between workmen and employers. The factors which are recognized as necessary for collective bargaining are:

·       The right to organize, i: e: The right to form and join trade unions of one’s choice and collective bargaining.

·       Freedom of peaceful assembly

·       Freedom of speech and expression

The cornerstone of any employer employee relations is the letter of appointment. The provision of a collective agreement supersedes the provisions of the letter of employment.

Main features of Collective Bargaining:

1) Establishment and administration of the agreement

·       Bargaining unit and plant supplements

·       Contract duration and reopening and renegotiations provisions

·       Union security and the check-off

·       Special bargaining committees

·       Grievance procedures

·       Arbitration and mediation

·       Strikes and lockouts

·       Contract enforcement

2) Functions, rights and responsibilities

·       Management rights clauses

·       Plant removal

·       Subcontracting

·       Union activities on company time and premises

·       Union-management co-operation

·       Regulation of technological change

·       Advance notice and consultation

3) Wage determination and administration

·       General Provisions

·       Rate structure and wage differentials

·       Allowances

·       Incentive systems and production bonus plan Production standards and time studies

·       Job classification and job evaluation

·       Individual wage adjustments

·       General wage adjustment during the contract period

There are more parts cover under the collective bargaining agreements between the employer and the employees such as plant operations, paid and un-paid leaves, job or income security, employee benefit plans etc.

Types of Collective Bargaining:

·       Distributive Bargaining.

Distributive bargaining is defined as a negotiation process by which one party benefits at the others expense. This usually refers to the redistribution of income in the form of higher wages, higher bonuses, or higher financial benefits.

·       Integrative Bargaining.

Integrative bargaining is whereby both sides aim to benefit in what is seen as ‘win-win’ bargaining. Both parties may bring together a list of demands by which an agreement is reached that benefits both parties.

·       Productivity Bargaining.

Productivity bargaining involves both parties negotiating around productivity and pay. So unions may suggest that higher salaries would boost productivity. However, this is unknown to the business. So target-orientated bonuses may be suggested, or new ways of improving the process.

·       Composite Bargaining.

Composite bargaining refers to a negotiation that focuses on a number of elements that are not related to pay. They are generally related to employee welfare and job security.

·       Concessionary Bargaining

Concessionary bargaining is based on unions giving back previous benefits to the employer. For instance, trade unions may agree to lower wages in return for job security. This may come during an economic decline whereby job security is more important to the unions than higher wages.

Advantages & disadvantages of collective bargaining:

Advantages

Disadvantages

·       Settlement through dialogue and consensus rather than conflict and confrontation ·       Often institutionalizes settlement through dialogue ·       A forum of participation: Sharing of rulemaking power ·       Often expressly renounces or limits settlement of disputes through Trade Union action ·       Concept of social partnership demanded to maintain confrontational processes in settlements of dispute. ·       Valuable By products generate trust & contribute to mutual understanding by establishing continuing relationship. ·       Stabilize Union Membership ·       Standardize business competition in regard to cost of labour. ·       A source of equity ·       Improves Industrial Relation

·       An obstacle to wage or income policy ·       Unrealistic to certain organizations ·       Creations of unrealistic wage levels ·       Union taking undue advantage

 

Conclusion:

Concluding collective bargaining, the ongoing process of negotiation between representatives of workers and employers to establish the conditions of employment. The collectively determined agreement may cover not only wages but hiring practices, layoffs, promotions, job functions, working conditions and hours, worker discipline and termination, and benefit programs. And briefly in this blog, it has discussed main features, types of collective bargaining and its advantages & disadvantages as well.

 

References:

De Silva, S. (2009). The transformation of labour law and relations. Stamford Lake. Egalahewa, S. (2018). A General Guide to Sri Lanka Labour Law.

Employers' Federation of Ceylon, (2006). Workplace relations, Sri Lankan case studies. Employers' Federation of Ceylon