Negotiation Process and Recent

Trends
 Essentials of Successful Negotiation
• 1. Strong and stable Union: The employers can easily ignore a week
union on the plea that it hardly represents the workers, hence a strong union
must be their

• 2. Recognition of Trade Union: The recognition by the management of

the representative trade union as a bargaining agent is of paramount
significance. A trade union may be strong and stable, but until it is given
recognition, it will hardly have any impact

• 3. Permanent Bargaining Machinery: Among other things, for

bargaining sessions to be successful, the bargaining machinery must be
efficient and permanent.

• 4. Mutual Accommodation: There has to be a greater emphasis on mutual

accommodation rather than conflict or uncompromising attitude.
 Collective Bargaining & Negotiation in
India
• Now a days the trade union submit their list of
demands, management also push forward their charter
of demands as counter –demands.

• The use of coercive tactics such as restrictive practices

and intimidation by the trade unions, particularly when
they are militants, has become common.

• There are some industry wise bipartite committees,

which negotiates long-term agreements covering wages
and other terms of employment.
 Collective Bargaining
• In collective bargaining a union negotiates on
behalf of its members with management
representatives to arrive at a contract defining:
– Recognition
– Management Rights
– Union Security
– Compensation and Benefits
– Grievance Procedure
– Employee Security
 Bargaining Over New Contracts

Distributive Bargaining

Integrative Bargaining

Attitudinal Bargaining

Intraorganizational Bargaining
Negotiation Process
 When Bargaining Breaks Down
• Strike: a collective Alternative to strikes:
decision by union • Mediation
members not to work • Fact Finder
until certain demands
or conditions are met. • Arbitration
 Alternative to strikes:

Mediation Fact Finder Arbitration

• Conflict resolution • Third party to • Conflict resolution
procedure in which collective procedure in which
a mediator hears bargaining who an arbitrator or
the views of both reports the reasons arbitration board
sides and facilitates for a dispute, the determines a
the negotiation views and binding settlement.
process but has no arguments of both
formal authority to sides, and possibly
dictate a a recommended
resolution. settlement, which
the parties may
decline.
 Bargaining Team Selection
• Management
– Usually top HR or IR staff, w/ line experts or officials
– Lawyers commonly used by smaller firms
– Top-down, clear chain of command simplifies
• Union
– Political nature of unions greatly complicates team selection; may be
elected rather than appointed
– Team members may represent various conflicting factions; some may want
to use negotiations to launch their further ascent
– International Rep (from HQ) often assists in local talks, may lead
• Both sides need good negotiators
– “Scout” qualities: Honesty, courage, integrity, cool-headedness, etc.
– Self-control, good listeners, observant, strong constitution(?)
– Able to appreciate others’ views (“perspective-taking ability”)
 Other Pre- and Early Stage Issues
• Negotiation sites:
– Neutral sites preferred
– Comfort (this could take a while!)
– Access to resources (phones, fax, computers, caucus rooms, etc.)
• Opening stages
– Formality, “photo-ops,” rituals common
– “High-balling” common, expected
– Offers and their manner of presentation sets tone

• “Game plans” are useful (i.e., strategies)

• Starting with easier issues can build momentum, set tone,
help to make the tougher issues easier later
Labor-Management Cooperation
Employee involvement in decision
making

Self-managing employee teams

Labor-management problem-solving
teams
Broadly defined jobs

Sharing of financial gains and business

information with employees
Obstacles to collective bargaining &
negotiation in India

Multiple
Unions

Mediation
Non-
by Political
Recognition
Leaders

Defective Political
Laws Orientations
“Nothing is settled until it is settled right”
Louis D.Brandeis