8/01/2012 1

Personnel Admin
Session 13
Collective Bargaining
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Introduction
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The Concept
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Discussions / Exchange of facts n ideas
No Confrontation
Salient Features
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Group Process
sit together
negotiate terms
Process with no. of steps
presentation of demands
reaching an agreement
binding on both parties
Negotiations an important aspect
discussion / compromise
rather than confrontation
Collective Bargaining Process
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Before Negotiations
Before Negotiations
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Settle a set of internal policies
concessions they would make
wages they would pay
changes they would like
Balance reconciliation
viability / profits / costs
Before Negotiations
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Competing interests to contend with
shareholders / employees /
consumers
Before Negotiations
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Stance management
tough / accommodating /
conceding
Some more aspects
cost implications
price escalations
Before Negotiations
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Gathering comparative data
in region / industry
practices adopted
percentage wage increases
Unified stand @ the negotiating
table
Before Negotiations
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Political exercise
strategies / priorities
Gathering comparative data
in region / industry
practices adopted
percentage wage increases
Before Negotiations
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Various groups / categories
skilled / semi-skilled / unskilled
maintain / further wage
differentials between them
Work out quantum of
wage increases
welfare measures
Before Negotiations
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Other problem areas identified
promotion policy
selection norms & processes
Onus on union executive
keep in touch with rank and file
members
ascertain their views and needs
At the Negotiating Table
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Management
prognosis on
state of the industry
the environment
capacity to pay
constraints
At the Negotiating Table
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Union
demanding wage increases
to meet increased cost of living
expectation of workers
increases agreed by others
At the Negotiating Table
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Alternatives
at the end of initial round
total rejection
unreasonable
partial rejection
reject some / consider some
management to comeback
workout costs / implications
agree to union demands
put forth counter demands
At the Negotiating Table
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Sequential actions follow
as per strategy adopted
total rejection
leads to deadlock
no further thawing
industrial action to follow
force into settlement
attempts to compromise
partial rejection
significant demands not met
At the Negotiating Table
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Sequential actions follow
as per strategy adopted
management to comeback
agree to union demands
communications open
collective bargaining
catch the hidden agenda
read between the lines
fathom the sticking point
agreement ratification
At the Negotiating Table
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Categorisation
intra-organisational bargaining
each side discuss n plan
fix demands / strategies
arrive @ consensus of approach
attitudinal structuring
implies orientation to collective
bargaining
ongoing relationship
rather than as a piecemeal
At the Negotiating Table
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Categorisation
distributive bargaining
zero sum game
one wins other loses
grab as many concessions /
demands possible
no concern - enterprise interests

At the Negotiating Table
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Categorisation
integrative bargaining
productivity aspects considered
mutual problem solving
concern for viability
non zero sum game
At the Negotiating Table
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Bargaining power
concept of sticking point
management upper limit
union lower limit
factors determining it
tastes / goals / motives of parties
skills in persuasion / coercion
dependent on cost benefit ratio
in recession inventory build-up
in good times product launch
Collective Bargaining
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Generally structured
conducted at three levels
Collective Bargaining
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Method of Wage Fixation
union not involved in setting up wage
rates
fixed by management
criteria involved in wage negotiations
measures of equity/need/contribution
comparable wages
cost of living
the living wage
the ability to pay
productivity & purchasing power
Collective Bargaining
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Productivity Bargaining
advantages given
higher wages
increased leisure time
for accepting challenges
new work practices
reducing wastes
more effective working
labour only one factor of input
technical improvements
management efficiency
Collective Bargaining
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Types of Contracts
Bipartite agreements
totally voluntary
for purpose of implementation
Bipartite settlements
negotiated / settled by parties
registered before a conciliator
Bipartite consent awards
dispute pending
yet negotiate a contract
recorded by tribunal
Collective Bargaining
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Prerequisites
Team Selection (Management)
mixed composition
production / finance / IR experts
headed by IR specialist
Management to
recognise the union
bargain in good faith
Unions to
keep workers interest foremost
formulate plans & demands
Collective Bargaining
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Prerequisites
Atmosphere of mutual confidence
strong unions
progressive management
Necessity of having open minds
appreciate concerns
flexibility in making adjustments
Need to study adequately
gather data
do homework
on similar industry / region
Collective Bargaining
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Prerequisites
Both parties to identify
grievances
safety & hygiene problems
take remedial steps
Trade Unions to
encourage internal union democracy
periodic consultations with members
have concern for quantity / quality
leading to viability of firm / products
Strikes / Lockouts LAST OPTION
Session 14
Groups 4 / 5 / 6
Presentations on Case Study - BHEL
Ref : Pg 110, Personnel Management by
Monappa & Saiyadain
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Case Study Summary
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Takeover viewed differently
management
workers
unions
Mysore Ceramics
Ltd
thank you
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