1. BARGAINING STRUCTURE, THE NEGOTIATING PROCESS, AND THE COLLECTIVE AGREEMENT

2. 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.”

3. 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

4. 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

5. 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

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

7. 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

8. 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

9. 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

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

11. 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

12. 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

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

14. 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

15. 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

16. 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

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

18. 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

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

20. 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

21. 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

22. 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