Overview

Definition of collective bargaining Basis of collective bargaining Conflict and collective bargaining Power and collective bargaining Establishing a bargaining relationship Bargaining styles & Bargaining Structures

Introduction
Collective bargaining occurs when employee representatives and

employers formally discuss terms of employment such as working conditions, salaries, and fringe benefits.

The Missouri Constitution states, Employees shall have the right to

organize and to bargain collectively through representatives of their own choosing. Mo. Const. art. I 29.

Purpose of Collective Bargaining?

To improve working conditions, pay, etc. Matters dealt with include: job security, procedures,

promotions, benefits and institutional security

Problems like retrenchment and 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

IMPORTANCE

Importance to employers

Importance to employees

Importance to society

PREQUISITES OF COLLECTIVE BARGAINING

Recognition of the Bargaining Agent

Deciding the Level of Bargaining

Determining the Scope and Coverage of Bargaining

COLLECTIVE BARGAINING PROCESS

Five core steps
Prepare Discuss Propose Bargain Settlement

What are the most common issues negotiated?

Hiring, Discipline, Evaluation, Transfers, Discharge, Leaves, Working

Conditions, Seniority, Dress Code, Planning Time AND Salary

Collective Bargaining
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

Collective Bargaining
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

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Collective Bargaining
Sources of conflict are:
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
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Collective Bargaining
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 flexible work

practices and the unions might resist this

Companies might want to dismiss inefficient workers and the union

would resist this, demanding job security

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Collective Bargaining
These are the issues that are brought to the bargaining table Both parties realize the need to handle conflict effectively

These include the day to day activities of the organizations

Conflict is thus not confined to the bargaining table

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Role of Power in collective bargaining

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 in

south Africa
Its only in the 1980s onwards that this power has been challenged by

unions

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 Power:
Management's sources of power is their ownership and/or control

over the firm

Workers power comes from their ability to withhold labor

collectively - strikes
On an individual level workers hold very little power and its only in

trade unions that they have power

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Establishing a bargaining relationship

A bargaining relationship is established when management and

union formally agree to enter into negotiations

Unions then demand recognition from management. This

formalizes management union relationship

Employment contract, whereby employer and employee agree on

wages and conditions of employment

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Bargaining Relationship
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 labor during strike action can give

employers power

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Bargaining styles:
Distributive bargaining: this is the most common type Management and unions are in opposing positions and

gain for one is a loss for another

Antagonism dominates the bargaining items These would be around wages and conditions of

employment
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Bargaining styles:
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

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Bargaining styles:
Bargaining styles:
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

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Collective Bargaining
Bargaining Structure:
Refers to bargaining units and bargaining levels Bargaining unit is the employees that will be covered by the

agreement
Bargaining level refers to whether bargaining will take place on a

decentralised or a more centralised level

Bargaining structure determines which employees are covered by an

agreement

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Bargaining structures :
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

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Collective Bargaining Outcomes:

The outcome of a collective bargaining process is an agreement There is usually an agreement to bargain regularly over wages and

other conditions of employment

Agreement can stipulate a time factor to the agreement, for e.g.

wage increase for one year only or for a number of years

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Outcomes

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.

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