BARGAINING STRUCTURE, THE NEGOTIATING PROCESS, AND THE COLLECTIVE AGREEMENT

What is Collective Bargaining? A decision-making process Costs of disagreeing Costs of agreeing “You’ve made us terribly happy, we hope you aren’t feeling too stupid.”

OVERVIEW OF COLLECTIVE BARGAINING (continued) Structure (continued) –Effects of different structures Depends on whether economy weak or strong In poor economic times, unions tend to favour centralized bargaining while employers prefer decentralized Decentralized structures lead to greater dispersion between high and low-paid workers Centralized systems associated with lower levels of inflation

OVERVIEW OF COLLECTIVE BARGAINING (continued) Structure (continued) –Effects of different structures (continued) Centralized systems can have smoother negotiations Centralized systems can alienate rank-and-file members

NEGOTIATION PROCESS Negotiations occur in everyday life Negotiating skills critical for everyone Qualities of good negotiator –Ability to develop long-term relationship –Like both people and practice of negotiation –Empathy –Ability to persuade –Persistence

NEGOTIATION PROCESS (continued) Qualities of good negotiator (continued) –Courage –Honesty –Integrity –Willingness to take risks –Excellent speaking and listening skills –Sense of humour

NEGOTIATION PROCESS (continued) Special features of union-management negotiations –Long and complex –Deal with broad range of issues –Strictly regulated by statute –Representatives of others who have ultimate say in outcome –Longer-term relationship

NEGOTIATION PROCESS (continued) Role of bargaining power –For union comes from ability to impose losses on employer Strike Increased grievances Increased absenteeism Vandalism and sabotage –For employer comes from ability to accept losses Continue operation Lockout Lost business

Environmental Determinants of Power Shifts in public support Modifications to the legislative framework –i.e. prohibiting the use of replacement workers Economic conditions –high unemployment - union less willing to strike –boom times - employer unwilling to lose business because of strike Technological change Deregulation and Globalization

Socio-Demographic Determinants of Power Age of workforce Gender Disparate personal preferences = Disparate bargaining preferences  Split on a Strike Vote?

Union-Management Determinants of Power Type of product produced Technology of production Resources available during a strike –Union Strike Fund –Management Product Stockpile Solidarity of union Options for worker substitution Centralized or decentralized structures

NEGOTIATION PROCESS (continued) Stages of negotiation –Stage 1--opponents get to know each other –Stage 2--each side puts forward positions and arguments and learns about other side –Stage 3--settlement zone –Stage 4--conclusion

NEGOTIATION PROCESS (Figure 10.1) POSTIVE SETTLEMENT ZONE NEGATIVE SETTLEMENT ZONE % range acceptable to management % range acceptable to union % range acceptable to management % range acceptable to union Positive zone Negative zone

NEGOTIATION PROCESS (continued) Strategy and tactics –Preparation Management –Objectives –Monitoring worker attitudes –Scan of economic and political environment –Background research –Reviewing company policies –Examining grievances

NEGOTIATION PROCESS (continued) Strategy and tactics (continued) –Preparation (continued) Union –Objectives –Through knowledge of general and specific economic and political environment –Meeting needs of members –Process is more open

NEGOTIATION PROCESS (continued) Strategy and tactics (continued) –Developing bottom line Developed by each side Developed before start of negotiations Issues divided into categories –Issues over which party is prepared for strike –Trading issues –Give-up issues Builds sense of team for negotiations

NEGOTIATION PROCESS (continued) Strategy and tactics (continued) –Specific tactics Opening position Concessions and trade-offs Threats and promises

NEGOTIATION PROCESS (continued) Strategy and tactics (continued) –Desire to settle Assumption that both parties want a conclusion and want agreement Third-party intervention usually results in strike or lockout Both sides need to “want” to settle for settlement to occur

NEGOTIATION PROCESS (continued) Ways to improve process –Early negotiations or prebargaining –Single-team –Principled –Voluntary arbitration –Must have trust between parties

THE COLLECTIVE AGREEMENT Functions –Sets out terms and conditions of employment –May be considered “bible” –May be a nuisance –Mini-constitution –May be infringement on management rights –May be seen as unable to rectify power imbalance

THE COLLECTIVE AGREEMENT (continued) Evolution of collective agreements –Originally covering basic issues such as wages, hours of work, holiday, overtime pay, and job security –Now cover wide range of issues, legalistic, and long Growth of larger and more bureaucratic workplaces Desire to negotiate on technological issues as well as hazardous substances

MAIN TYPES OF COLLECTIVE AGREEMENT PROVISIONS (continued) Union and management rights (continued) –Language recognizing union’s place in enterprise as official bargaining agent –Union security provisions Closed shop Union shop Modified union shop Open shop