Collective Bargaining and Trade Unions

- Collective Bargaining
- Trade Union
- Why Employees Join Trade Union
- Factors Leading to Employee Unionization
- Collective Bargaining
- Process of Collective Bargaining

1. CollectiveBargaining
TradeUnions
A Presentation by AtulChanodkar

2. Trade Union
Aunionisanorganizationofworkers,actingcollectively,seekingtopromote
andprotectitsmutualintereststhroughcollectivebargaining.However,
beforewecanexaminetheactivitiessurroundingthecollectivebargaining
process,itisimportanttounderstandthelawsthatgovernthelabor–
managementprocess,whatunionsare,andhowemployeesunionize.
Aunionisaformalassociationofworkersthatpromotestheinterestsofits
membersthroughcollectiveaction.Theveryexistenceofunionsdepends
uponlawsandlegalaction

3. Why Employees Join Unions
HigherWagesandBenefits
Thepowerandstrengthofnumberssometimeshelpunionsobtainhigher
wagesandbenefitpackagesfortheirmembersthanemployeescannegotiate
individually.Oneortwoemployeeswalkingoffthejoboverawagedisputeis
unlikelytosignificantlyaffectmostbusinesses,buthundredsofworkersgoing
outonstrikecantemporarilydisruptorevenclosedownacompany.
Additionally,professionalbargainersemployedbytheunionmaynegotiate
moreskillfullythananyindividualcouldonhisorherownbehalf.
GreaterJobSecurity
Unionsprovidetheirmembers withasenseofindependencefrom
management’spowertoarbitrarilyhire,promote,orfire.Thecollective-
bargainingcontractwillstipulaterulesthatapplytoallmembers,thus
providingfairerandmoreuniformtreatment.

4. Why Employees Join Unions
InfluenceOverWorkRules
Whereaunionexists,workerscanhelpdeterminetheconditionsunderwhich
theyworkandhaveaneffectivechannelthroughwhichtheycanprotest
conditionstheybelieveareunfair.Therefore,aunionnotonlyrepresentsthe
workerbutalsoprovidesrulesthatdefinechannelsinwhichworkercomplaints
andconcernscanberegistered.Grievanceproceduresandrightstothird-party
arbitrationofdisputesareexamplesofpracticestypicallydefinedandregulated
asaresultofunionefforts.
CompulsoryMembership
Manylaboragreementscontainstatementscommonlyreferredtoasunion
securityarrangements.Whenoneconsiderstheimportanceofsecurity
arrangementstounions—importancerelatedtonumbersandguaranteed
income—itisnowonderthatsuchemphasisisplacedonachievingaunion
securityarrangementthatbestsuitstheirgoals.Sucharrangementsrangefrom
compulsoryunionmembershiptogivingemployeesthefreedominchoosingto
jointheunion.

5. Factors Leading to Employee Unionization

6. Collective Bargaining
Collectivebargainingtypicallyreferstothenegotiation,administration,and
interpretationofawrittenagreementbetweentwopartiesthatcoversaspecific
periodoftime.Thisagreement,orcontract,laysoutinspecifictermsthe
conditionsofemployment-thatis,whatisexpectedofemployeesandanylimits
tomanagement’sauthority.Inthefollowingdiscussion,wetakeasomewhat
largerperspectiveandalsoconsidertheorganizing,certification,andpreparation
effortsthatprecedeactualnegotiation.
Collectivebargainingisdescribedasanactivitythattakesplacebetweentwo
parties.Inthiscontext,thetwopartiesarelaborandmanagement.

7. Collective Bargaining
Collectivebargainingistheestablishmentbynegotiationanddiscussion
ofagreementonmattersofmutualconcerntoemployersandunions
coveringtheemploymentrelationshipandtermsandconditionsof
employment.Itthereforeprovidesaframeworkwithinwhichtheviewsof
managementandunionsaboutdisputedmattersthatcouldleadto
industrialdisordercanbeconsidered,withtheaimofeliminatingthe
causesofthedisorder.
Collectivebargainingisajointregulatingprocess,dealingwiththe
regulationofmanagementinitsrelationshipswithworkpeopleaswellas
theregulationofconditionsofemployment.Ithasapoliticalaswellas
aneconomicbasis–bothsidesareinterestedinthedistributionofpower
betweenthemaswellasthedistributionofincome.

8. Collective Bargaining
Collectivebargainingcanberegardedasanexchangerelationshipinwhichwage–
workbargainstakeplacebetweenemployersandemployeesthroughtheagency
ofatradeunion.Traditionally,theroleoftradeunionsasbargainingagentshas
beenperceivedasbeingtooffsettheinequalitiesofindividualbargainingpower
betweenemployersandemployeesinthelabourmarket.
Collectivebargainingcanalsobeseenasapoliticalrelationshipinwhichtrade
unions,asChamberlainandKuhn(1965)noted,shareindustrialsovereigntyor
poweroverthosewhoaregoverned,theemployees.Thesovereigntyisheldjointly
bymanagementandunioninthecollectivebargainingprocess.
Aboveall,collectivebargainingisapowerrelationshipthattakestheformofa
measureofpower-sharingbetweenmanagementandtradeunions(although
recentlythebalanceofpowerhasshiftedmarkedlyinthedirectionof
management).

9. Collective Bargaining
Collectivebargaininginvolvesthefollowingmainfeatures:
Parties–atleasttwosides;
Anagreedprocedurewherebythepartiesrelatetoeachother–andthe
negotiationofframeworkagreementsandconsultation;
Outcomes–acollectiveagreement;
Theexistenceofsanctionsdesignedtochangetheattitudeorpositionof
theotherparty.

10. Collective Bargaining
Management’srepresentationincollective-bargainingtalkstendstodependon
thesizeoftheorganization.Inasmallfirm,forinstance,bargainingisprobably
donebythepresident.FewsmallfirmshaveaspecialistwhodealsonlywithHRM
issues;thepresidentofthecompanyoftenhandlesthistask.Largerorganizations
usuallyhaveanHRMdepartmentwithfull-timeindustrialrelationsexperts.In
suchcases,wecanexpectmanagementtoberepresentedbytheseniormanager
forindustrialrelations,corporateexecutives,andcompanylawyers—withsupport
providedbylegalandeconomicspecialistsinwageandsalaryadministration,
laborlaw,benefits,andsoforth.
Ontheunionside,wetypicallyexpecttoseeabargainingteamcomposedofan
officerofthelocalunion,localshopstewards,andsomerepresentationfromthe
international/nationalunion.Again,aswithmanagement,representationis
modifiedtoreflectthesizeofthebargainingunit.

11. Process of Collective Bargaining

12. CollectiveBargaining
TradeUnions
A Presentation by AtulChanodkar