Collective Bargaining & Negotiation Skills PDF

Collective Bargaining & Negotiation Skills Dr. N. Y. Oppong  Lecture 2 Collective Bargaining  Collective Bargaining ‘negotiations concerning pay & conditions of employment between trade unions on the one hand, and an employer or employers’ association on the other’...

Collective Bargaining & Negotiation Skills Dr. N. Y. Oppong  Lecture 2 Collective Bargaining  Collective Bargaining ‘negotiations concerning pay & conditions of employment between trade unions on the one hand, and an employer or employers’ association on the other’ (Webb, 1898) ‘the negotiation, administration and interpretation of written agreement between two parties that covers a specific period of time’ (DeCenzo & Robbins, 2010)  Collective Bargaining The traditional ‘pluralist’ approach The resultant agreement or contract spells out specific terms and conditions of employment i.e. what is expected of employees and any limits to management’s authority The employment policies & procedures based on collective agreements are ‘jointly determined employment rules’ and therefore binding on both parties Objectives & scope of collective bargaining Objective is to agree on a contract acceptable to management, union representative and union membership Scope – final agreement will reflect issues of the particular workplace and industry in which the contract is negotiated Though may vary, 4 topics appear consistently - 3 mandatory issues: wages, hours and conditions of employment. These must be negotiated in good faith - 4th grievance and disciplinary procedures  Collective bargaining participants Employer representatives and union representatives Composition of each side may vary depending on size of organisation and emphasis on ER Management representatives may include: – Full-time IR/ER experts – Senior managers for IR/ER – Corporate executives – Company lawyers  Collective bargaining participants Employees may be represented by – Officials of local union – Local shop stewards – Some representatives from national union May be flexible as long running of negotiation may require representatives from both sides being substituted May be a 3rd party – say the government – but only when there is impasse and needs to help resolve this  Collective bargaining process The process is grouped under 3 broad headings: – Preparation – Negotiation at the bargaining table – Contract administration and interpretation Note that before collective bargaining can take place the union should be certified as a bargaining unit. We assume here that this is already achieved.  The preparation Preparation could involve 3 main activities: – Fact gathering – Goal setting – Strategy development 1. Fact Gathering Internal sources: eg. – Employee performance reports – Overtime figures – Transfers, turnovers & absenteeism – Grievance and accident reports  The preparation External sources: Eg – Data on current economy – Economic forecasts – Copies of recently negotiated contracts by unions to determine important issues – Data on communities in which company operates – costs of living and changing trends – Data on labour market – Industry labour statistics – what terms other organisations employing similar types of personnel/similar operations are negotiating  The preparation 2. Goal Setting Labour’s goals: eg – Meeting expectations of wages, benefits, safety conditions, employee satisfaction Management’s goals: eg – Reduced labour cost – Productivity – Profit – Product quality – Increased degree of managerial control – Reduced labour turnover and employee motivation (all aimed at profit/staying competitive)  The preparation 3. Strategy Development Management’s strategy (this shapes IR/ER) – E.g. to associate with union over long-term or be less committed to non-unionised operations? Labour’s strategy – E.g. to maintain distanced and adversarial approach in negotiations or take interest in cooperation and flexibility? Both parties’ strategies for negotiations assess the other side’s power and specific tactics  The preparation: general guidelines Bargaining process does not begin at the table but is shaped by the preparation efforts put in by both union and management Form your team who should have adequate knowledge and skills for negotiation, usually members who are familiar with the operations Look for sample contracts/CBAs that will help determine contract clauses that union will want Present the with suggested date and location for bargaining Appoint chief negotiator who should do the talking unless other members permitted to discuss certain matters by prearranged agreement. This could prevent skilled union negotiators from exploiting differences among management members  The preparation: general guidelines Be familiar with the existing wages, benefits, and working conditions in industry so that you can compare them with union’s proposals Determine the ‘mandatory’ subjects and how you are going to approach them Decide on the subjects you want to bargain about. Like the union, management also have the right to make lawful bargaining demands, eg strong management clause to – Protect your right to discipline – Contract out work – Grant merit increases – Make reasonable job adjustments  The preparation: general guidelines (cont) Caution: once you lose any of your rights to the union, you will have difficulty recovering them in future negotiation with the union Decide length of contract before the negotiation but avoid termination date during your busy season (if applicable) due to: – Man-hour lose during negotiations – Likely strike action by union members Try to take the initiative to bargain – get the union to negotiate on the basis of your proposals  Negotiating at the bargaining table 4. Presentations of proposals Customarily, negotiations begin with presentations of proposals by both parties – Union tries to present long and (usually inflated) demands to satisfy needs of most members – Employers could present sets of proposals to counteract the union’s demands – These exchanges could continue till appreciable level of satisfaction is achieved for the actual negotiations  Negotiating at the bargaining table 5. The main negotiating stage This is the actual round-the-table, face-to- face exchanges To develop an estimate of the relative priorities other sides attach to outstanding issues To estimate the likelihood that agreement can be reached without a strike  Negotiating at the bargaining table To signal to other side those issues that might be the subject of compromise at a later stage Actual negotiating procedure may be agreed by both parties. However, only one of the documents may be used as this has gone through proposals and counterproposals prior to the negotiations Both parties representatives may publicly accentuate their differences but the real negotiations (of pertinent issues?) typically go on behind closed doors  Good faith in bargaining Both management and labour are required to enter negotiations with open mind and willingness to reach an agreement – known as good faith in bargaining Section 97 of the Labour Law 2003 (Act 651) states the duty to negotiate in good faith as follows: – 97(1) : All parties to the negotiation of a collective agreement shall negotiate in good faith and make every reasonable effort to reach an agreement – 97(2) : For the purpose of subsection (1), either party to the negotiation shall make available to the other party to the negotiation relevant to the subject matter of the negotiation  Good faith in bargaining (cont.) – 97(3): when any information disclosed for the purpose of the negotiation of collective agreement is not made public the information shall be treated as confidential by the party receiving the information and shall not be disclosed to the third party without the prior written consent of the party providing the information – 97(4): the parties to the negotiation of a collective agreement shall not make false or fraudulent misrepresentation as regards matters relevant to the negotiation. If this is not done, especially by management, union may file unfair labour practice charge against management In deciding whether you meet your bargaining obligations, the NLC will review your entire conduct during the bargaining process, including: Good faith in bargaining (cont.) – Your attitude towards the union – Your willingness to meet with the union – Your changing or unchanging position during bargaining – Any other matter that could suggest that you did or did not meet your duty to bargain  Negotiating at the bargaining table: general guidelines At the first meeting listen to the union’s proposal and understand what it wants. Don’t start the actual negotiations here Confer with senior management to make tentative decisions on union’s proposals Discuss with the union the order in which you would like to tackle these bargaining issues - which of the two documents to use? Avoid making commitments you don’t intend to keep Don’t be alarmed by table-pounding – a common tactic of some union negotiators to scare management. Keep calm  Negotiating at the bargaining table: general guidelines (cont.) Avoid flat rejections of union proposals – you are required to consider lawful union demands Don’t accept any form of contract presented by the union, provided your refusal is made in good faith Be careful to argue that you are unable to pay unless you are ready to produce your books as the union may demand these Raise any lawful issues you want to bargain about, such as management right clause, and union work rules Avoid marathon sessions. Bargain at each session only as long as progress seems likely  Negotiating at the bargaining table: general guidelines (cont.) If you agree to arbitrate disputes arising under the contract, get a no-strike clause in return Be calm and patient – union negotiator may ‘get off’ on long-winded spiel, wait till he is ready to get back to the issue Avoid misunderstandings. Use clear and understandable language in the contract Both management and union should initial the contract Make final agreement on each provision contingent upon agreement on the complete contract Avoid profanity, abusive language, or heated argument. Take off break, if necessary, to cool off. Sign the contract in good faith  Negotiating at the bargaining table 6. The agreement or contract The oral agreement is eventually converted into a written contract. – Rank and fie of union must agree (ratify or approve) to conclude the negotiations – collective bargaining agreement (CBA) is produced – Much does not depend on management at this stage as they offered what they wish to offer – If members of the union vote against the contract, the negotiations must resume  Contract administration and interpretation 7. Administering the contract Once contract agreed and ratified it must be administered This includes rolling out the document to both union and management – each side ensuring members get the agreement information Providing agreement information to parties to understand relevant changes – E.g. new contract language used explained; new pay rates captured by payroll; new items included (if not 1st CBA) are communicated Contract administration and interpretation – Depending on organisation/union preference meeting could be used to do this – Copies of CBA to be given to members as guiding document – Ensures that all communicated changes are effected – Both sides comply with contract terms – Recognise management’s rights as management is guaranteed many rights in the contract. Eg. Right to organisational resources in most efficient manner Right to create reasonable rules Right to determine work methods and assign work  Contract administration and interpretation Right to create, eliminate and classify work Right to hire, promote, transfer, and dismiss employees Right to close and relocate facilities Right to institute technological change However, whether the contract requires it or not, it would be wise for management to notify the union on major decisions that affect its members.  Contract administration and interpretation 8. Interpreting the contract Interpreting the contract and grievance (and disciplinary) process is probably the most important element of the contract administration (DeCenzo & Robbins, 2010) – Almost all CBAs contain formal procedures for resolving employee grievance and disciplining employees – Procedures for resolving employee grievance; schedule of offences and disciplinary process should be spelt out in the CBA and should be applied fairly, equitably and consistently  Contract administration and interpretation Monitoring activities during the contract period allows both union and management gather data on the effectiveness or otherwise of the contract – Eg. on productivity, employee turnover and number grievances Also offers valuable resource for next collective bargaining exercise.  References CIPD (2005) What is employee relations? London CIPD Foot, M., Hook, C. (2005) Introducing Human Resource Management (4th Ed) Harlow, Essex, Pearson Education Ltd. Office for National Statistics (2010) trade Union Membership [Internet] Available from http://www.bis.gov.uk/assets/biscore/employ ment-matters/docs/t/11-p77-trade-union-mem bership-2010.pdf [Accessed 6 November 2011] Webb, Sidney; Webb, Beatrice (1898). History of Trade Unionism. Printed by the authors especially for the Amalgamated Society of Engineers