Tuesday, December 1, 2020

COLLECTIVE BARGAINIG

 


INTRODUCTION TO COLLECTIVE BARGAINING

Collective Bargaining is a technique adopted by unions and management to reconcile their conflicting interests (Jirjahn, 2017).Employees as a group select representatives to meet and discuss differences with the employer. This requires joint sessions of the representatives of labour and management (Campbell & Weststar, 2020).Collective bargaining is also a crucial method of regulating relations between employers and employees.

This involves negotiation, administration, and enforcement of the written contracts between the employees and the employers. Collective bargaining is a joint decision-making process by employers and employees and also includes the process of resolving labor-management conflicts (Benz & Sonnicksen, 2018).Therefore, the success hinge on the attitudes of parties involved and the relevant environment during which negotiation takes place. When these aspects are encouraging, collective bargaining can be a good instrument for averting the arrival of industrial disputes (Gahan, et al., 2018).

 

DEFINITIONS OF COLLECTIVE BARGAINING

Collective bargaining is a method where workers come together and direct representatives to negotiate terms and conditions of employment. And the concept is seen as a collective alternative to individual bargaining (Doellgast & Benassi, 2020 Jun 26).Collective bargaining is the process of negotiating the terms of employment between an employer and a group of workers, such as pay and working conditions (López‐Andreu, 2019).

 

ESSENTIAL FEATURES OF COLLECTIVE BARGAINING

The process or means and collective agreements (Jalette, et al., 2020) to the possible result of bargaining. Collective bargaining may not always lead to a collective agreement. It is a method used by TUs to improve the terms and conditions of employment of their members. And the collective bargaining seeks to restore the unequal bargaining position (Kohler & Schlag, 2019) between employer and employees. When it leads to an agreement, it modifies rather than replacing the individual contract of employment (Hotvedt, 2018) having not created the employer employee relationship.

The process is bilateral and in some developing countries the State plays a role in the form of a conciliator where disagreements occur or where collective bargaining impinges on government policy (Brown & Wright, 2018).


OBJECTIVES AND SIGNIFICANCE

Collective Bargaining plays a significant role in improving the labour-management relations and ensuring industrial harmony. A strong bond between the employers and employees contribute to the successful working of the company (Yusuf-Habeeb & Kazeem, 2017). Further this helps to minimize differences and, in many instances, resolve major disputes without any work stoppage or any other intervention (Doellgast & Benassi, 2020 Jun 26). This also provides a climate for smooth progress ensuring that the management does not take any unilateral decision over the organization (Stadtler & Karakulak, 2020).

Figure 1: CENTRAL & LOCAL SPLIT FOR BARGAINING: Education & Law Journal        (Meguid, 2017)




                                 

PREREQUISITES

The following features are very essential for an effective collective bargaining process;

Freedom of Association (Kang, 2019) and independence of unions while keeping the stability of organizations and favorable political climate where governments are not only be sympathetic but also encourage collective bargaining and agreements (Agarwal, et al., 2020). Mutual trust and respect coupled with willingness of the parties concerned to come to a common ground for resolving is a must for a productive bargaining or negotiation (Černík, et al., 2020).


References

Agarwal, R., Shirke, A. & Panackal, N., 2020. Enablers of the Collective Bargaining in Industrial Relations: A Study of India’s Industrial Policies Through ISM and MICMAC Analysis. The Indian Journal of Labour Economics, 63(3), pp. 781-798.

Benz, A. & Sonnicksen, J., 2018. Advancing backwards: Why institutional reform of German federalism reinforced joint decision-making. The Journal of Federalism, 48(1), pp. 134-159.

Brown, W. & Wright, C. F., 2018. Policies for decent labour standards in Britain. The Political Quarterly, 89(3), pp. 482-489.

Campbell, S. & Weststar, J., 2020. Peering Inside the “Black Box”: The Impact of Management-Side Representatives on the Industrial Relations Climate of Organizations. Labor Studies Journal, 45(3), pp. 250-272.

Černík, O., Valenčík, R. & Wawrosz, P., 2020. Economics Of Productive Consumption And Multipoint Expansion Of Nash Bargaining Problem. Economy & Business Journal , 14(1), pp. 10-25.

Doellgast, V. & Benassi, C., 2020 Jun 26. "Collective bargaining." In Handbook of research on employee voice. Cheltenham Glos: Edward Elgar Publishing.

Gahan, P., Pekarek, A. & Nicholson, D., 2018. Unions and collective bargaining in Australia in 2017. Journal of Industrial Relations, 60(3), pp. 337-357.

Hotvedt, M. J., 2018. The contract-of-employment test renewed: A Scandinavian approach to platform work. Spanish Labour Law and Employment Relations Journal (SLLERJ) , 7(1-2), pp. 56-74.

Jalette, P., Duguay, F. L. & Laroche, M., 2020. Time is on whose side? Determining the duration of collective agreements in a decentralized collective bargaining system. Journal of Industrial Relations, Issue 0022185619890638.

Jirjahn, U., 2017. Works councils and collective bargaining in Germany: A simple theoretical extension to reconcile conflicting empirical findings. Journal of Institutional and Theoretical Economics, 173(2), p. 322.

Kang, Y., 2019. Freedom of Association and Collective Bargaining in Minority Trade Unions: By Youbin Kang, PhD Student, Department of Sociology, University of Wisconsin–Madison, The United States of America. International Labor Rights Case Law, 5(2), pp. 158-163.

Kohler, S. & Schlag, K. H., 2019. Inequality Aversion Causes Equal Or Unequal Division In Alternating‐Offer Bargaining. Bulletin of economic research , 71 (1), pp. 47-57.

López‐Andreu, M., 2019. Employment institutions under liberalization pressures: Analysing the effects of regulatory change on collective bargaining in Spain. British Journal of Industrial Relations, 57(2), pp. 328-349.

Meguid, J., 2017. Determining the Limits of Central Bargaining in the Education Sector. Education & Law Journal, 26(2).

Stadtler, L. & Karakulak, Ö., 2020. Broker Organizations to Facilitate Cross‐Sector Collaboration: At the Crossroad of Strengthening and Weakening Effects. Public Administration Review, 80(3), pp. 360-380.

Yusuf-Habeeb, M. O. & Kazeem, A. O., 2017. Appraisal of conflict management as a tool for achieving industrial harmony. Nile Journal of Business and Economics, 3(7), pp. 28-51.

 







8 comments:

  1. THREE IMPORTANT CONCEPTS OF COLLECTIVE BARGAINING :
    The Marketing Concept: In marketing concept, collective bargaining is a contract of sale of labour which gives assurance of voice on the part of the organized workers in the matter of the sale. Since the union-management relationship is concerned as a commercial one, the same objective rules which apply to the construction of all commercial contracts are invoked. Based on the contract which has been made through the process of collective bargaining, the employees sell their individual labour, and this helps the employees to overcome an unbalanced and disadvantageous situation created by the employer.
    The Government Concept: In this concept, the collective bargaining is outlooked as a constitutional system in the industry, where the union’s sovereignty is shared with the management over the workers, and this power is used in the interest of the workers. A contract is regarded as a Constitution, written by the union, and the management representative mutually in the form of a compromise or trade agreement. The Judicial machinery is provided on the failure of management to comply with the rules by the grievance procedure and arbitration.
    The Industrial Relations Concept: In Industrial relations concept, collective bargaining is outlooked as an industrial governance system. The union representative participates in the managerial role in reaching decisions on matters on which both have a vital interest to arrive at a mutual agreement. The Industrial Disputes Act of 1947 in our country is a good example of the industrial relations concept, which established provisions for union participation in the management(Bardial, 2020).

    ReplyDelete
    Replies
    1. Yes Janaka, becoming more offensive at the bargaining table is an effective method in the table to bargain the best for employees(Reiter, 2003).

      Delete
  2. Webb's definition emphasizes the importance of workers' collective action in concluding and negotiating formal agreements. Collective bargaining is more broadly defined as a process of negotiation, joint decision-making or joint regulation between the employer and groups representing employee interests; And implies the discussion and continued application of an agreed set of rules governing the successful and procedural terms of the employment relationship (Forthcoming, 2014).

    ReplyDelete
    Replies
    1. Agreed Ranga, the latest example, coronavirus-related health and safety standards largely up to the discretion of employers and in turn, that makes collective pressure by workers all the more important for public safety and continuous operations(Ebisui, 2012).

      Delete
  3. Carley (2002) and Traxler and Behrens (2002) show that centralized multi-employer collective bargaining is the most important form of collective wage bargaining in the majority of the unions and the management. Despite the continuing debates about the performance implications of collective bargaining centralization, understanding of the determinants of bargaining structures is still limited. While recent research has largely focused on macro-level factors, the role of micro-level determinants has still not been systematically scrutinized.

    ReplyDelete
    Replies
    1. Yes Chamila, multiple employer bargaining refers to all situations in which two or more independent employers bargain or negotiate jointly, through an agent, committee or association, with one or more labor organizations representing employees of the several employers, with respect to wages and other related isuues of employees. However, this might create a situation to bargain common interests by foregoing specific interests of a particular organization in the same field(Wright, 2000).

      Delete
  4. According to Dessler and Varkkey (2009) various issues can be addressed during the negotiations between the employers and the representatives of the trade unions. The labor law has categorized all these issues into three types, which are mandatory, permissible and illegal.

    ReplyDelete
    Replies
    1. Yes, Malithra, given the scope and complexity of labor issues that can affect the company, even if there is no union present, the organization need to engage experienced counsel with Labor Law expertise to get the better results(Trebilcock, 2015).

      Delete

WINNING THE HEARTS OF THE EMPLOYEES

IDENTIFY THE VALUE OF EMPLOYEES In order for organizations to thrive and achieve the potential, the organization need fully engaged, commi...