LABOR RELATION AND NEGOTIATION Strategies in Collective Bargaining

TOPIC 1 Management goals

COLLECTIVE BARGAINING and ADMINISTRATION of  to come to an agreement with the union at

AGREEMENT reasonable and affordable cost to the company
without risking a strike, slowdown or other
concertive activities.
Collective Bargaining (CB)  the ultimate goal is to sign a collective
bargaining agreement (CBA) with the union
 The negotiation, administration, and
interpretation of a written agreement between
two parties, at least one of which represents a
group that is acting collectively, that covers a
specific period of time.
 involves workers organizing together to meet,
discuss, and negotiate upon the work conditions
with their employers
 results in a written contract setting forth the
wages, hours, and other conditions which the The Preparation Stage
parties agree on for a stipulated period  The outcome of CB can have profound effect on
 is a better way to resolve disputes rather than labor cost and productivity, and consequently,
through violent means. It has the potential to on the company's ability to maintain its
reduce economic losses caused by strikes and competitiveness
contributes to economic stability  Successful bargaining comes from a carefully
 its end product is the collective bargaining prepared plan, faithfully executed
agreement (CBA)  this plan must indicate hazards along the way

Collective Bargaining and Negotiation Factors to be Considered in the Preparation

 In collective bargainig, the union has always the
collective interest since the negotiations are for
the benefit of several employees 1. Aligning CBA with company's business objectives
 Negotiations can take place in grievances and the HR deparment must meet with the other functional
discipline situations relating to a single units and set contract goals that will allow each unit to
employee meet its objectives
 management and the union or prone to different
interpretations.
2. Choice and training of the management panel
This hinders the productivity or flexibility in managing
the bargaining team needs to be organized to take
the business
into account the various interest and objectives of the
company

 it’s important to know their proposal 6. Preparing and analyzing data

 Training well organized unions supported by big federations or

national unions are well informed of vital data collated
by their research departments. As you will be
3. Estimate negotiation timetable arguing facts against facts, the management team must
not be caught flatfooted/unprepared
fix your timetable in the negotiations in relation to the
business season
Important to know

4. Gathering information on issues, parties (union)  labor cost in relation to total operating cost
and the environment
 productivity of competitors
a. Issues
 data on employee demographics
 economic issues such as wage increase and
 age bracket
benefits improvement
 seniority
 non-economic issues such as union security,  wage group classification
worker's rights, code of discipline, grievance
procedure
7. Anticipating union demands

forecasting likely demands is important in order to

b. Parties
develop your potential counterproposal
 members of the management panel
 based on previous engagement with the union
 officers and the members of the union panel
 key officers and members of the  feedback from the grapevine
negotiating panel
 CBA grants from competitors
 who is the decision maker
 does the decision rest on one man or
on the panel as a collegial body
8. Establishing the possible cost of labor

c. Environment - consists of the economic  wage increase has influence not only over direct
conditions prevailing at the time cost of labor but also the indirect cost

 competition  the increase on the first year has a cumulative

 government stand in case of an effect on the second and third year of the
impending strike contract

9. Preparing the economic package

5. Reviewing the present expiring contract Critical issues in formulating the economic package:
This step focuses on some provisions of the current  CBA wage survey or the industry/community
contract that are sources of friction between wage practice
  business goals of the company  management may or may not submit its
 compensation policy counterproposals but must acknowledge receipt
 capacity of the company to pay of the union's proposals and set a date for the
 start of the contact negotiations

10. Establishing parameters of authority  agree on the ground rules at the first meeting to
promote orderly and purposeful bargaining
 the limit of authority given to the management
panel must be clear and precise

 the limits of authority of the panel to grant Collective Bargaining Rules

wage increase and other benefits must be
1. Size and composition of the negotiating panels.
clearly established beyond which it should
consult top management As a compromise, you may limit the negotiating panel to
four (4) or five (5) with two (2) others on a rotation
basis.
11. Preparation of a strike contingency plan
2. Frequency of meeting
 it is a plan designed to prevent, if not to
3. Length of each meeting
minimize the damage in case of a strike
4. Venue of meeting
 used more as a counter threat to serve notice to
the union that, when forced down the wall, it is 5. Time spent by union during the negotiations on
willing to face a strike company time (with pay or without pay?)
 sample of strike contingency plan will be 6. Postponement of meetings
provided
7. Record keeping - what and who will record?

8. Spokesperson from each panel

Pre-Negotiation Communications Strategy
9. Proper decorum at meetings
If the data gathered appeared that the company
is above the average as benchmarked with the best
practices of competing companies, this fact must be THE NEGOTIATION STAGE CONTINUATION . . . . .
communicated to the employees by way of factual
information through the company newsletter, bulletin  Having agreed with the ground rules, the parties
boards, and other communications media. may start with the negotiations or set it to
another date
Long before the submission of union's proposal,  Management may test the strength of the stand
a series of information update can be done so the of the union on some issues by asking probing
employees will know that the company has given fairly or clarificatory questions.
good and competitive wages and benefits  Management should try to obtain an agreement
at each stage of the process

The Negotiation Stage

Bargaining goes through the various stages Middle stages

 invite the union officers to an informal party to  each side must make some substantial
“break the ice” before the start of the session concessions to prove sincerity in bargaining

 usually, it is the union that submits its proposals  following questions may arise:
to management and request for a meeting  how important is this issue to the other
side?
  would an impasse on a particular issue there could still be disputes as to its
likely result in a strike? meaning and application
 if there is doubt, human resource and labor
 when and to what extent should
relations specialist should be consulted
management signal its willingness to
compromise on which issue?
 since no contract is perfect, conflicts can always
Final stages arise which could lead to a grievance. That is
why our law requires that a CBA must provide
 pressure for an agreement mounts as talks of for a grievance procedure; otherwise, a CBA will
hardening of positions and imminent deadlock be denied registration by the DOLE
 public negotiations may continue but back
channel or one on one meeting with chief
negotiators from both side or small group
meetings may occur
 National Conciliation and Mediation Board
(NCMB) without any petition from either side Advantages of Collective Bargaining
may offer its mediation offices for
1. collective bargaining has the advantage of settlement
“preventive mediation”
through dialogue and consensus rather than through
conflict and confrontation.

CBA Administration 2. collective bargaining is a form of participation.

CBA  Both parties participate in decisions.

 codifies the various conditions of employment  it involves sharing of rule-making power

mutually agreed upon by the union and the between employers and unions in areas which
management in earlier times were regarded as management
prerogatives
 is a binding document on both parties for the
duration of the agreement 3. collective bargaining is an essential feature in the
concept of social partnership towards which labour
relations should strive
Contract Administration
4. collective bargaining has valuable by-products
 is a daily function and could be the most relevant to the relationship between the two parties.
important responsibility of supervisors and line (leads to the generation of trust)
managers.
5. in societies where there is a multiplicity of unions and
 it’s their interpretation and application that can shifting union loyalties, CB and consequent agreements
be the cause of conflicts tend to stabilize union membership.

 the union and its members keep a keen eye to 6. most important of all - collective bargaining usually
assure that the agreement is complied with has the effect of improving industrial relations. This
improvement can be at different levels.
 it is therefore critical that supervisors and line
 The continuing dialogue tends to improve
managers must read and be trained on the
relations at the workplace level between
proper application of the contract
workers and the union on the one hand and
the employer on the other.
 CBA administration and interpretation can be a
challenging task.  It also establishes a productive relationship
 supervisors and line managers can between the union and the employers'
memorize every word of the contract but organization ‘
 6. PREPARING AND ANALYZING DATA

- it is an advantage transforming data into actionable

insights that will solidify the org.

7. ANTICIPATING UNION DEMANDS

- important to develop potential counter potential can

GROUP REPORTS
be based on previous cba grounds. Essential to consider
Preparation stage (GROUPS 1 and 2) specific demand (working condition) by analyzing this
company can make informed decision that is align to
- plan must indicate hazard along the way business objectives.
- research

- meticulous planning 8. ESTABLISHING POSSIBLE COST OF LABOR

Factors to be considered: - includes salary and wage. Administration, supervision,
accounting, security. To determine direct labor cost is
calculated as interpretive rate then this rate is then
1. ALIGNING CBA WITH COMPANY’S BUSINESS GOAL applied directly
allows to understand each unit the objectives

2. CHOICE AND TRAINING OF MANAGMENT PANEL 9. PREPARING ECONOMIC PACKAGE

organizing team is important because panel - use to assess wage level and disruption. To determine
management involves recruiting participants, appropriate wage. Key consideration adequate wage to
distributing surveys and rewarding panelist ensure pair and competitive wage distribution

3. ESTIMATE NEGOTIATION TIMETABLE 10. ESTABLISHING PARAMETERS OF AUTHORITY

involves discussing the time it will take to complete the - first prevent the panel to make compromise beyond
project. factors such as project complexity, resources their control for efficient negotiations. Outlining the
and potential obstacle can affect the negotiation. panel authority about wage and benefit increase to
ensure budgetary requirements. Clear authority is
essential for ensuring efficient, focus and responsible
4. GATHERING INFO on ISSUE, PARTIES (UNION) and negotiation.
the environment

- annual impact of solidarity

11. PREPARATION OF A STRIKE CONTINGENCY PLAN
- international trade union
- detailed roadmap for a company to follow if there is
strike. cover before, during and after the strike to keep
things running smoothly. Plan involves Figuring out risk,
5. REVIEWING THE PRESENT EXPIRING CONTRACT
deciding how to communicate, allocating resources and
eliminate any potential interpretation that can hinder have security plan for labor disputes. To lessen the
flexibility. We can unlock tremendous values with the impact of strike to ensure everyone stays ok
help of advance contract system, we can streamline
processes and enhance collaboration and drive success
PRE-NEGOTIATION COMMUNICATION STRATEGY and expressing gratitude this principle contributes for
(GROUP 3) long lasting relationship and better solution.

NEGOTIATION STAGE:

CBA - agreement or a legal contract that addresses 5. CARRY OUT- steps about making things happen after
employment term and condition such as pay. For CBA agreeing, it's not just about making things happen it’s
to me establish the two parties should come up with also about making things better, adjusting to changes
terms that should comply. Where disagreement happen and making relationship stronger it’s also about showing
Grievances occur that can be reported to grievance that you are reliable. Best negotiating practices (BNP)
machinery. help when things change when you are working on
something.

STEPS IN NEGOTIATION
STAGES IN NEGOTIATION
1. GET READY - determine your perspective, identify
interest and priorities, figure out what you want,
identify what you want such as pay, collect facts that
1. PRE- NEGOTIATION - accomplish during the parties
supports that support your negotiation points.
before they enter full negotiation. Here plans are made,
underscore that significance of understanding your
meetings are set and everyone agrees on what they
goals and gathering support information.
want. It is also the stage where they will decide the list
they will accept in CBA. This will step the stage for what
do they want and what is not, it’s not like the starting
2. VALIDATION AND INFORMATION EXCHANGE
point.
- there are 2 thing - first understanding needs, identify
what the parties want not just what they want. Build
trust and relationship. Next is moving beyond demands 2. NEGOTIATION STAGE where 2 or more parties engage
discuss understanding needs look for solution that in discussion to reach an agreement and resolve. Labor
works for the both sides. knowing what’s truly relation
important for both sides, identify what they need not
just what they ask for.
3. POST NEGOTIATION STAGE- implementation stage of
the agreement and monitoring its operation includes
3. AGREEMENT - producing and sharing values thru grievance measure, violation. Continue relationship.
open communication about interest it highlights the
necessity of making accommodation. the underlying
principle is that sustainable success when both parties CONCLUSION - the CBA process is crucial it unionize
contribute. workplaces involving cooperative negotiation between
employers and employees to establish a collective
bargaining agreement the initiation of negotiation key
4. DRAW A CONCLUSION addressing subjects categorizes : mandatory permissive
or illegal hence negotiation follows a structured
- Negotiation terms align for both parties. Verifying
framework comprising stages, preparation , information
commitments and documenting shared interest to
exchange, agreement and implementation and
support and verify the agreement, additionally, the text
successful negotiation requires communication and
express should have gratitude. acknowledging the
empathy, adaptability and strategic thinking involving
willingness to negotiate shows positive relationship
steps such as readiness, validation, information
throughout the negotiation process. Involves creating
exchange agreement and execution. And the
value, verifying commitments, verifying shared interest
negotiation process involves pre negotiation,
negotiation and post negotiation considering factors
such as power dynamics, cultural nuances and external
influences. Additionally, the presence of grievances is
acknowledged. Employers establish grievance
procedure. Successful Bargaining also foster
relationship, trust building.