Collective Bargaining


Description of Collective Bargaining. Explanation.

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Definition Collective Bargaining. Description.


Collective Bargaining is normally seen as a negotiation method between representatives of the union and of the employer, to determine wages, hours, and various Employee Benefits through direct negotiations. But it can also be used to mean a sort of negotiation process between the employer and any group of employees for certain sets of objectives where both of them have common interest. The workers derive this power by coming together, that is by being united.


If their viewpoint - demands - are not considered, they have the power of withdrawing their services or adopting other actions which will adversely affect the employer. Thus the collective bargaining draws its power from the strength of being united.


The employer can ill-afford to neglect these actions as the concerted action by the workers can result in low output and monetary loss. The employer thus agrees to negotiate the matter and the bargaining process begins. Since both the employer and workers have areas of common interest, the bargaining is not stretched too far, because, then it will be counter productive.


The underlying force behind the collective action is the assumption - valid enough - that the employees and employer have vital common interests.


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Issues in the Negotiation Process (Manning & Robertson)
"Negotiation should be viewed as a process of compromise, involving parties with different sets of objectives and values, based on their different vested interests.
It is assumed that more effective negotiators, whilst recognising these different objectives, values and interests, work towards achieving win-win in the longer term.
It is further assumed that it is useful to think about negotiation as a process, with various stages, and with key issues running throughout the whole process. These stages and issues are described more fully below. Specific negotiations are typically face-to-face encounters that are themselves episodes in an ongoing, longer-term relationship.

Within the 4 main stages in the process of negotiation of Manning & Robertson, there are a number of issues which run through the whole process of negotiation.
These Issues in the Negotiation Process are (Manning & Robertson, 2003):
1. Clarity of focus. This involves ensuring that: issues are clearly defined; information from variety of sources is used; the supporting case is clear and simple, and is based on the ideal position; the case appeals to both “head” and “heart”; the individual takes time to respond to proposals, avoiding hasty decisions or actions; and monitoring and review procedures are clearly established.
2. Flexibility of strategy. This involves: consideration being given to a wide range of options outcomes and long-term considerations; issue planning and a flexible agenda; no immediate counter-proposals; a willingness to concede and to signal this; the use of adjournments in meetings; and other long-term strategies, e.g. trial periods, meeting again.
3. Win-win – values. This involves: finding out about the other party and what they want; identifying areas of agreement; creating a co-operative and open climate; targeting your case on the other party, on what is in it for them; and giving them time to present their case and respond to yours.
4. Win-win – interactive skills. This involves: showing personal warmth, encouraging co-operation; seeking information, asking questions; the use of open, emotionally expressive, non-defensive, non-aggressive behaviour; and the use of behaviour labelling.
References:
- Fisher, R.; Ury, W. and Patton, B. (1991), Getting to Yes: Negotiating an Agreement Without Giving in; Random House Business Books, Cox & Wyman Ltd, Reading, Berkshire
- Kennedy, G. (1993), Everything is Negotiable: How to Get the Best Deal Every Time, Arrow Books, London
- Manning, T & Robertson, B (2003), “Influencing and negotiating skills: some research and reflections – Part II: influencing styles and negotiating skills”, Industrial and Commercial Training, Vol. 35 Iss: 2, pp.60 - 66
- Rackham, N., Carlisle, J. (1978), "The effective negotiator", Journal of European Industrial Training, Vol. 2
"
Stages in the Negotiation Process (Manning & Robertson)
"Negotiation should be viewed as a process of compromise, involving parties with different sets of objectives and values, based on their different vested interests.
It is assumed that more effective negotiators, whilst recognising these different objectives, values and interests, work towards achieving win-win in the longer term.
It is further assumed that it is useful to think about negotiation as a process, with various stages, and with key issues running throughout the whole process. These stages and issues are described more fully below. Specific negotiations are typically face-to-face encounters that are themselves episodes in an ongoing, longer-term relationship.

The 4 main stages in the process of negotiation are (Manning & Robertson, 2003):
1. Preparation. This involves establishing the issues, getting quality information, preparing the case and preparing for the encounter.
2. The opening phase. This involves creating a positive climate, establishing the issues, stating your case and finding out their case.
3. Getting movement to reach agreement. This involves challenging their case, responding to challenges on your case, trading or linking and moving to reach agreement.
4. Closure. This involves retaining flexibility, summarising and recording agreements, establishing monitoring and review procedures and building for the future.
Thoughout these stages, Manning & Robertson also distinguish a number of Issues in the Negotiation Process.
References:
- Fisher, R.; Ury, W. and Patton, B. (1991), Getting to Yes: Negotiating an Agreement Without Giving in; Random House Business Books, Cox & Wyman Ltd, Reading, Berkshire
- Kennedy, G. (1993), Everything is Negotiable: How to Get the Best Deal Every Time, Arrow Books, London
- Manning, T & Robertson, B (2003), “Influencing and negotiating skills: some research and reflections – Part II: influencing styles and negotiating skills”, Industrial and Commercial Training, Vol. 35 Iss: 2, pp.60 - 66
- Rackham, N., Carlisle, J. (1978), "The effective negotiator", Journal of European Industrial Training, Vol. 2
"
Four Principles for Effective Negotiation
"When you're thinking about managing a conflict, it's useful to also remember the Four Principles for Effective Negotiation of Roger Fisher and William Ury:
1. PEOPLE - Separate the people from the problem
2. INTERESTS - Focus on interests rather than positions
3. OPTIONS - Generate a variety of options before settling on an agreement; and
4. CRITERIA - Insist that the agreement be based on objective criteria.
Source: Getting to Yes: Negotiating Agreement Without Giving In"
Negotiation Intentions of Mastenbroek
"In 1996 Dutch bargaining expert Willem F.G. Mastenbroek developed a bargaining model consisting of four negotiation intentions or negotiation activities:
1. Influence the Content. The main goal is to get the most advantageous compromise. These activities during negotiations get the most attention, because with this the result is tangible. Influencing the content you need to focus on arguments, facts, goals, concessions and conditions.
2. Influence of the Power. The main goal is to strive for balance or overbalance. You can do this by mentioning new or cheap facts to show you have alternatives. Some techniques are: bluffing, pressing or take over initiative.
3. Influence the Relation. To improve your bargaining result, changing the relation is also an option. Hereby you keep contact with an informal and unconstrainted base, and you show interest for personal matters and interdependence.
4. Influence the Proces. Your goal is to increase the flexibility for your benefit. You get this if you search for new information, alternatives or run try outs. Also you can suspend the consultation and informaly ask your opponent for ideas.
If you know the style of your opponent you can analyse them better and recognize their strategy and tricks. You can choose to play their game in your benefit or use it for other opportunities."
Different Negotiating Types / Bargaining Styles
"Soft Bargaining: Very cooperative, conciliatory bargaining that focuses primarily on reaching an agreement and on not making the other side upset.
Hard Bargaining: Adversarial, competitive bargaining that assumes that the opponent is an enemy to be defeated, rather than a partner to be worked with cooperatively.
Principled Negotiation: A way of bargaining that combines the hard/aggressive and the soft/passive bargaining method. The method of principled negotiation is to decide issues on their merits rather than through a haggling process focused on what each side says it will and won’t do. It suggests that you look for win-win wherever possible, and that where your interests conflict, you should insist that the result be based on some fair standards independent of the will of either side."
Collective Bargaining : Role of Chairman?
"What is the role of the chair person in any collective bargaining process?"
Influence of Collective Bargaining in Public Sector
"In what ways could collective bargaining affect a government organization?"


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Compare with: Pressure Group  |  Force Field Analysis  |  Six Change Approaches  |  Core Group Theory  |  Bases of Social Power  |  Coalition  |  Loss Aversion Bias

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End of description Collective Bargaining. An explanation.

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