TyroCity

Discussion on: Forms of Collective Bargaining and Different Collective Agreements

Collapse
 
dipadhungana profile image
DIPA_DHUNGANA

Collective bargaining is the process of negotiation between employers and a group of employees when certain issues arises aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers’ compensation and rights for workers to secure full time employment. It is a joint regulation process dealing with the regulation of management in its relationship with work place as well as the conditions of employment (Armstrong, 2012).

The different forms of collective bargaining are:

  • Distributive Bargaining: The distributive bargaining involves zero sum negotiation in which one party tries to win over the others. Both the employers and employees try to maximize their respective gains. It focuses on the attainment of one party’s goals when they are in basic conflict with those of the other party (Walton & McKersie, 1965). It involves the economic issues such as wages, bonus and other benefits. It is also known as conjuctive bargaining. For example, the employees negotiate for increased wages and the employer negotiates for increased productivity at lower wage.
  • Integrative Bargaining: The integrative bargaining involves negotiating on mutually agreed terms with respect to working terms. It focuses on gain of either parties or at least tries to make sure that no one loses. It can be compared to problem solving technique where both the parties share information and create possible solutions. It recognizes that each party is interdependent on the other and can achieve its objectives more effectively if it wins support of others (Chamberlian & Kuhn, 1965). It is also referred to as cooperative bargaining. For example, the employees may agree to work on lower wages if the systems are updated.
  • Productivity Bargaining: The productivity bargaining relates incentives with the productivity. Higher the productivity, higher will be the incentive and vice-versa. It will encourage the employees to work harder and push their limits to get additional benefits. Both the parties can enjoy benefits in the terms of increased productivity and increased pay.
  • Composite Bargaining: The composite bargaining tries to reach to mutual agreement with respect to employment terms and enjoy long-term relationship with each other (Business Jargons, n.d.). The workers will still bargain for higher wages but will also pay attention to working conditions and policies.
  • Concessionary Bargaining: Concessionary bargaining is about giving back to the management some of what has been gained in earlier bargaining. A good example is the agreement between General Motors & the International Union of Electric Workers that granted GM around the clock operations, wages and benefits concessions for the new hires and a two-week mass vacation (LinkedIn Learning, 2013).

Collective agreements are the outcome of collective bargaining that regulates the terms and conditions of employees in the workplace. The different collective agreements are:

  • Substantive Agreement: The substantive agreement is legally enforceable agreement that covers the basic terms and conditions of employment like pay, allowances, working hours, overtime, holidays, flexibility arrangements and achievement of single status. It helps in harmonization of terms and conditions between the employer and employees.
  • Procedural Agreement: The procedural agreement aims on regulating the behavior of the parties involved in the agreement and it is not legally enforceable. It includes agreement about the methods to be used and procedures/rules to be followed that can vary widely depending on the nature of the organization.
  • Single-Union Deals: The single union deals argue that there should be a single body to represent all employees. It emphasizes on flexible working practices and harmonization of terms and conditions between manual and non-manual employees.
  • New-Style Agreements: The new style agreements involves provision for single union recognition, single status, labor flexibility, company council and no-strike clause. It advocates that negotiation should be based on mutually accepted rights of the parties.
  • Partnership Agreements: In partnership agreement, both parties agree on achieving co-operative climate and less adversarial industrial relations. It encourages collaboration for mutual advantage.
  • Disruption Resolution: Disruption resolution is the agreement about resolving the differences between management and trade unions. Depending on the nature of disputes, the conciliation, arbitration and mediation methods are used to address the organizational issues.

References

Armstrong, M. (2012). Armstrong’s Handbook of Human Resource Management Practice. London: Kogan Page.

Business Jargons. (n.d.). Types of Collective Bargaining . Retrieved from Types of Collective Bargaining

Chamberlian, N. W., & Kuhn, J. (1965). Collective Bargaining. New York: McGraw Hill.

LinkedIn Learning. (2013, March 16). Types of Collective Bargaining . Retrieved from Types of Collective Bargaining

Walton , R. E., & McKersie, R. B. (1965). Behavioural Theory of Labour Negotiations. New York: McGraw Hill.