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Discussion on: Forms of Collective Bargaining and Different Collective Agreements

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Angel Paudel

Collective bargaining as the name suggest involves of bargaining as a group. This involves of bargaining for improvement of the work environment, increased wage, and availability of overtime, facilities and things like that with the employer regarding the workplace. The aim of doing a collective bargaining is to have a collective agreement and to resolve any dispute interests (Kochan, 2012).

As per Walton and McKersie there are two forms of collective bargaining which is distributed bargaining and integrative bargaining. Distributed bargaining is a bit complex system as the position of both employer and the union (employee’s representative) is something like “We/I can’t go beyond this point, We/I can’t do more than this percentage”. Here, the interest opposes and both parties wants as much as they can get from the deal. The motivation here is often to create a winning situation for oneself and loosing for the other party. While, the other form of collective bargaining they listed in integrative bargaining is completely different as it tries to create a win-win situation and the interest of both parties are congruent. The goal here is to expand the deal and show flexibility at both end such that both parties can be satisfied. Here the focus is more on asking question on why a certain issue is important and finding common interest point (Walton & MacKersie, 1995).

There’s another form of collective bargaining as well as developed by Chamberlain and Kuhn which is conjunctive bargaining and cooperative bargaining. Conjunctive bargaining is also called as distributive bargaining and is a very common type of bargaining. In this form of negotiation, one side wins and the other side loses as both parties try to tilt the deal more on their favor. Whereas in cooperative bargaining both sides try to reach an agreement which is mutually beneficial alternatives to the demands. This form of bargaining creates a win-win situation as both the employee and employer try to resolve the conflict being flexible and in such a way which is in the interest of both the parties involved (Schwarz, Chamberlain & Kuhn, 1987).

Collective agreement evolves after a successful conclusion of collective bargaining. Collective agreement includes of a legally enforceable written contract which is valid for a certain period agreed and is done between the management and employees through representatives. It doesn’t replace an individual employee contract but rather modify or improve the contract in certain way with regard to changes in wage, working hours, working conditions and benefits, overtime and dispute resolution procedure (Addison, Teixeira, Bryson & Pahnke, 2013). There are various different types of collective agreement, few of which are as listed below:

  • General Collective Agreements: It includes of an agreement between the employee’s representative and the employer with regard to wages and/or other terms of employment like the working conditions, facilities, holidays, insurance, worktime, and alike.
  • Special Collective Agreements: It includes of general collective agreements with additional layer of agreement at a local level by local level unions on different issues such as work shift.
  • Enterprise Agreement: For this an example can be taken with regard to different unions formed by the employees of Government of Nepal. Regardless of them having unions at office level and in a local level as well, there’s one in the nation level. And, in addition to that, there’s a different federation which is formed by the inclusion of all the other union representatives. So, in case of such large organization, the federation negotiates on the behalf of all the other trade unions belonging to different occupations to reach on a general collective agreement which covers all the relevant issues.

References

Addison, J., Teixeira, P., Bryson, A., & Pahnke, A. (2013). Collective Agreement Status and Survivability: Change and Persistence in the German Model. LABOUR , 27 (3), 288-309.

Kochan, T. (2012). Collective bargaining: crisis and its consequences for American society. Industrial Relations Journal , 43 (4), 302-316.

Schwarz, J., Chamberlain, N., & Kuhn, J. (1987). Collective Bargaining. Industrial And Labor Relations Review , 40 (3), 444.

Walton, R., & MacKersie, R. (1995). A behavioral theory of labor negotiations . Ithaca: ILR Press.