Origin of collective bargaining

The term collective bargaining was coined in 1891 by Beatrice Webb in her movement for cooperative labor in industries.

The term of employment according to it can be determined unilaterally by the state, unilaterally by the employees, unilaterally by the workers and by the combined efforts of employers and their bodies, workers and their bodies and representatives of the state.

The text of the CIB study (1982:258) noted that since the 1960s there have been certain developments in the collective bargaining system. He explains that bargaining agreements have been introduced in many organizations at the local or plant level, that is, in “household” bargaining. For example, a union may negotiate minimum wages at the national or company level and then separate negotiations at the plant level may relate to additional payments for special arrangements, such as a plant productivity agreement.

Before the advent of collective bargaining, employees negotiated individually, through interview, that is, individual contract.

Therefore, collective bargaining is collective in the sense of multi-party participation in the form of decision-making on a wide range of issues affecting all parts of the industry.

Contrary to Webb’s definition of collective bargaining as a collective equivalent and an alternative to individual bargaining. Alan Flanders (1975: 253) says that collective bargaining is primarily a political institution because it is a rule-making process, involving power relations between organizations or organized interest groups.

Dunlop (1958:302) drew attention to the dynamics of collective bargaining processes, he observed that the main activities of collective bargaining involve the determination of priorities within each side in the bargaining process, that is, there are disagreements within each side. Constant arguments, disagreement and compromise and it exists from time to time in these processes.

Collective bargaining is an important technique or mechanism in labor relations aimed at resolving conflicts of purpose. It is a joint activity where each party recognizes the right of the other to be present on equal terms. In other words, when you talk about collective bargaining, it is a forum where employers and workers must be present. The employer does not tell the employees to leave the bargaining table, both have fifty-fifty shots.

Employees and employers through their representative reach an agreement on salary and employment conditions. The bargaining process is often referred to as COLLECTIVE BARGAINING.

The development of Collective Bargaining

The text of the CIB study (1988: 355) observed that before the advent of collective bargaining, employers negotiated individually through the interview, that is, individual contract.

It is also noted that since the 1960s there have been certain developments in the collective bargaining system. Some of them are:

The bargaining arrangement has been introduced in many organizations at the level or at the plant level, that is, in “household” bargaining.

Another is that more issues are now brought within the sphere of the collective bargaining agreement because bargaining could now cover not only salary and conditions of service or employment, but also promotion, training, agreement, job demarcation, etc.

Finally, collective bargaining has been extended to more groups of employees.

Factors influencing collective bargaining

Based on NUT (1992: 68) study circle materials, the following are some of the factors that influence collective bargaining:

(i) The ability to pay

(ii) The mandate of the employers’ representative

(iii) The relative strength of the union and management

(iv) The sensitive nature of the work and the importance given to it by society.

(v) Strategies adopted by union leaders

(vi) The quality of work.

(vii) Influence of the international financial institution, for example, MFI

(viii) Statistics, which are generally of an economic, collective nature, collated and interpreted by union leaders.

However, the text of the CIB study (1988: 355) pointed out that one last point to note is that there is a complex of factors inside and outside the organization that affect the bargaining relationship and that although there is an agreement to go through complaint or dispute procedures (constitutionally), most conflicts in this country are unconstitutional, that is, they violate the procedure.

Negotiation procedure

Standoher (1982: 217) defined Negotiation as the act of discussing, consulting to reach an agreement, settled by discussion. He also defined bargaining as putting a condition or giving up something in exchange for something else.

However, Yoder (1982: 471) wrote that negotiation procedures essentially consist of putting forward proposals, discussing them, receiving counter-proposals, and resolving differences. He asserted that it may involve training elements, since the concessions are granted by each of the parties.

Furthermore, he stated that bargaining procedures are determined in part by law, states, and decisions of administrative boards and courts regulate the particular issues that bargaining can decide. The law further requires that the parties negotiate their contract in good faith.

Formal negotiation according to Yoder (1982: 471) creates collective agreements. In formal negotiation, the parties met at predetermined times and places to exchange proposals, agreements, and rejections. Informal negotiation, he said, is an ongoing process that grows out of daily interoperation and enforcement of the formal agreement. The representatives of the parties exchange ideas and reach an agreement regarding the meaning of the various clauses and the appropriate programming for their implementation.

He also noted that informal negotiation can be considered part of the total contract administration process. It is very important in the relationship that collective bargaining establishes: the degree to which informal bargaining develops and how the parties adapt to the resulting changes may well be a measure of their maturity and effectiveness as collective bargainers.

Yoder noted that the formal negotiation process begins in several ways. If the parties are negotiating for the first time, the sessions may follow union recognition by management or certification by federal or state agencies. If the parties have already negotiated one or more agreements, the timing of the negotiation process may be prescribed by the existing agreement. May require a formal announcement in advance from either party if changes to a new agreement are sought. The process can start with an exchange of letters between the parties. Or a part can advertise to become news. Negotiation continues until differences are resolved or until the parties discover that they cannot reach a satisfactory agreement without help. Conciliation and mediation services can help resolve your differences. Certain unresolved issues may be submitted to arbitration. If an agreement is not reached in the bargain, the employees may go on strike, in which case, the solution of the strike involves further bargaining.

They can, on the other hand, continue to work without an agreement while the negotiation continues.

Negotiation Preparation

Yoder (1982: 472) observed that although the degree of previous preparation of managers and unions differs, many of them spending months preparing for the negotiation, the unions study the experience with the existing agreements to investigate the financial situation of the employers. Union members may be polled to determine their preferences.

He pointed out that many managements undertake a similar preparation for the negotiation process. They seek information about the nature of arrangements made by other employers in the same or related industries. They study the operation of this agreement to discover the section in which they want changes.

In addition, he assured that they provide financial perspectives and ensure information on the labor markets in which they must make their purchases. They try to anticipate union demands and have an argument that they can use in opposition to demands that they consider unreasonable.

Experience is reviewed to provide a basis for future negotiations.

Both management and the union need facts, as well as philosophy and politics to guide them in actual bargaining. Representatives know the basic policies of the organization they represent. They should be well informed about current practice in the industry and locality and about recent changes in practice. Both parties may require extensive statistical and other information regarding your experience and that of other companies and unions.

Yoder finally noted that an important goal in preparing for negotiations is to determine the cost of changes to the contract provision.

strategy and tactics

According to Yoder (1982: 471), strategy refers to the general plan of how to proceed at the negotiating table to achieve objectives. Examples would be taking a “hard time” or being cooperative, tactics include the individual method a party uses to implement its strategy. An example would be rounding up, bragging, or making concessions. Walton and Mckersie’s behavioral approach, outlined, lends itself to analysis of strategy and tactics. Strategically, most managers and union leaders view bargaining as a “smart player wins” contest.

This is consistent with the fact that since most negotiations are distributive in nature, parties compete in a “win-lose” situation on individual bargaining items. Therefore, negotiation is seen primarily as an adversarial relationship.

Yoder (1982: 495) stressed that when applying tactics to distributive issues, both sides often take extreme positions. Unions present a “laundry list” that calls for the “sun, moon, and stars,” with management typically offering very little at first. Furthermore, he stated that both sides recognize the need to bluff.

They can make a terrible threat without giving serious thought to carrying it out. Negotiators sometimes felt the need to impress their constituents that they fought hard and avoided catastrophe.

Bragging can help create this impression.

However, Standoher noted that an effective position for management may be to make its own demands in the bargain. Behind this is the adage that “the best defense is a good offense.” In recent years, management has sought to ease restrictive work rules, and has even proposed reducing or eliminating benefits that existed under the previous contract.

Strikes and trade disputes

The text of the CIB study (1988: 380) defined a strike as the temporary stoppage of work in compliance with a grievance or demand. He explains that strikes are the most common form of labor dispute and that there are a wide variety of issues that can lead to strikes and misunderstandings in an organization.

The Labor Disputes Law, Article 37, defines a labor dispute as “any dispute between employers and workers or between workers and workers that is related to the employment or lack of employment or the duration of employment and the physical conditions of work of any person.

Leave a Reply

Your email address will not be published. Required fields are marked *