Chapter 6
Negotiating a collective Bargaining Agreement
Bargaining Process
Bargaining Process:
It begins before the parties meet across the bargaining table, knowing that the
selection of bargaining agent or union is lengthy process necessary in determining the
parties to a collective bargaining relationship.
Union Representatives:
For local unions (chief steward, grievance committee member, employees from
deferent departments and classifications).
For industrial / international unions (professionals)
Management Representatives:
HRM
Financial officer
Operation manager
Labor relation advisor
Negotiation Skills
Communication skills
Reporting skills
Ability to avoid and face personal attacks
Patience and talent
Stage 1: Preparation Stage
Steps for preparing a negotiation in a collective bargaining agreement:
Bargaining Items
Mandatory Items: are items that must be bargained in good faith such as:
wages ( hourly pay rates, over time rates, shift differential, piece rates,
incentive plans, paid holidays and vocations, profit sharing plans, merit
pay incentives, etc.)
conditions of employment (employment security, job performance,
union security, and management-union relationship)
Permissive Items: if an issue is permissive and the other party doesn’t voluntary
agree to it, then it must be withdrawn from the discussion. Such items are:
Performance or indemnity bonds
Illegal Items: are items that must not be proposed for discussion, even if it is
agreed by both parties to be discussed, such items are:
Violation of public policy
Discrimination against nonunion members
Racial separation of employees
Sources of Bargaining Issues
Internal sources: where in general it is the union the introduces most of
the issues to be discussed and the management reacts to such proposals
and sometimes it initiates some of the related issues.
External sources: from the economy and the industry
Stage 1: Planning Stage
Planning is the most critical element in successful negotiation, where
negotiators generally plan effectively in the following ways:
1.Anticipation
2.Realistic Objectives
3.Strategy
4.Agenda
Bargaining Stage 2
Stage 3: Impasse (Pressure Bargaining : Possible Picketing and
Strikes )
Last settlement usually is affected by the bargaining power of
each party. The ultimate test of strength in negotiation process is
the union’s and management’s ability to strike, so before even
thinking and planning for such an action both sides estimate
external factors that may influence the balance of power.
Resolution Stage: Beyond Impasse
There are two ways to resolve an impasse:
The best common way is deciding early before the contact expiration
date, to seek a facilitator or mediator to assist the parties into negotiation
process, the thing that could relieve labor dispute and pressure.
Another way is using of join labor-management study committee before
and during the contract negotiations.
Picketing
Is a line or processing union members or
supporters staging a public protest outside an
employer concerning a labor dispute often
due to failed contract talks.
The aim of picketing is to inform the others
that a strike is in progress.
Lockout
Where the employer may withhold employment
to resist union demands or actually to force
concessions from the union.
Lockouts could be defensive action, if the
employer is threatened by strike to cause
economic loss or operational difficulties.
Lockout could be also an offensive action, if an
impasse has been occurred during collective
bargaining or if it is used to pressure employees
to end a labor dispute.
Strikes
Is a work stoppage by a number of employees
caused by a disagreement with management over
certain issues such as contract negotiations,
grievances, or unfair labor practices.
Strike usually is needed to vent number
frustration over an inevitable but
unsatisfactory contract agreement.
But strikes are less than before because
management response -------
Why strikes occur?
Mediation
Is a voluntary process by both parties to assist them in
moving beyond impasse to a settlement, where the
mediator is a neutral 3rd party, experienced and
trained in dispute resolution techniques.
The mediator relies on his personal power of
persuasion, tenacity, and experience in labor relations
disputes to suggest solutions on unresolved issues
Mediator practices:
Create a positive atmosphere
Maintain neutrality
Absorb conflict
Provide reality checks
No conscience
Arbitration
Is a process used to resolve an impasse negotiations,
where the parties submit the unresolved items to a
neutral 3rd party to render a binding decision.
The arbitrator has an authority to make a final binding
decision on the unresolved issues in a stalled contract
negotiation.
Despite the advantages of arbitration, still it suffers
from several disadvantages:
Doesn’t offer confidentiality
It has a narcotic effect on negotiation
Splitting the differences that make the parties to take only
extreme positions
Fact – Finding
It is a semi-judicial method of dispute resolution which is used in
public sector to assemble and make the fact public through the media.
Fact- Finding panel can only recommends how an impasse may be
resolved as a way to delay strike by bringing the strike to the public
attention.
Bargaining in the Public
Bargaining in public sector has the following Sector
characteristics:
The nature of public sector employment as
providing essential service with no real
competition.
The source of funding coming from tax
payers and not from customers.
Managers in public sector mostly are elected
and therefore are responsible in front of the
citizens.
Bargaining in public sector is referred as
multilateral bargaining: where a 3rd party such
as a city council must approve the tentative
agreement negotiated by the management.
Fact-finding and arbitration are used in more
successfully in public sector than in private one.
Press interest
In private sector:
There is a press coverage of a strike threat or even actual strikes, but during
negotiation/ bargaining there is a large confidentiality.
In public sector:
The bargaining makes a break news even there is no crisis, the thing that
could harm the bargaining process.
When there is no right to strike?
In public Sector: When legislation allows collective bargaining but
prohibits strikes.
In private sector: When the mediator uses acquired skills to bring the
parties back together and reach an agreement.
