myz-vgb.ru A Business Encyclopedia

Process of Collective Bargaining

Definition: The Collective Bargaining is a technique to reach a mutual agreement between the employer and the employee. Here the representatives of both the parties viz. The union and the employer meet and discuss the economic issues such as wage, bonus, number of working hours and other employment terms.

The process of collective bargaining comprises of five steps that are followed by both the employee and the employer to reach an amicable solution.

Process of Collective Bargaining

process of collective bargaining

  1. Preparation: At the very first step, both the representatives of each party prepares the negotiations to be carried out during the meeting. Each member should be well versed with the issues to be raised at the meeting and should have adequate knowledge of the labor laws.

    The management should be well prepared with the proposals of change required in the employment terms and be ready with the statistical figures to justify its stand.

    On the other hand, the union must gather adequate information regarding the financial position of the business along with its ability to pay and prepare a detailed report on the issues and the desires of the workers.

  2. Discuss: Here, both the parties decide the ground rules that will guide the negotiations and the prime negotiator is from the management team who will lead the discussion. Also, the issues for which the meeting is held, are identified at this stage.

    The issues could be related to the wages, supplementary economic benefits (pension plans, health insurance, paid holidays, etc.), Institutional issues(rights and duties, ESOP plan), Administrative issues (health and safety, technological changes, job security, working conditions).

  3. Propose: At this stage, the chief negotiator begins the conversation with an opening statement and then both the parties put forth their initial demands. This session can be called as a brainstorming, where each party gives their opinion that leads to arguments and counter arguments.
  4. Bargain: The negotiation begins at this stage, where each party tries to win over the other. The negotiation can go for days until a final agreement is reached. Sometimes, both the parties reach an amicable solution soon, but at times to settle down the dispute the third party intervenes into the negotiation in the form of arbitration or adjudication.
  5. Settlement: This is the final stage of the collective bargaining process, where both the parties agree on a common solution to the problem discussed so far. Hence, a mutual agreement is formed between the employee and the employer which is to be signed by each party to give the decision a universal acceptance.

Thus, to get the dispute settled the management must follow these steps systematically and give equal chance to the workers to speak out their minds.

1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Shares

Related pages


whats is entrepreneurshipdefine laissez faire leaderlife positions in transactional analysismeaning of monetisationdefine carrotmeaning of demand loanppf meansmeaning of subsidiary in hindiethnocentric theorydefine retained earningsdefine monetary policy in economicsgoing rate pricing strategycurrency exposure definitiondiminishing marginal utility exampleunity of command principle of managementmonopolistic competition market structurecash reserve ratio calculationpsychoanalytic theory of personality definitionelastic and inelastic demand definitionwhat is the definition of poachingdefinition of segmentingwhat is micro environmental factorselastic demand in economicswhat are the different types of dividend policieslpp problemsexplain the theories of entrepreneurshippfrda new pension scheme npsdividend theories in financial managementfayol's principles of managementgeocentric attitude definitionhicksianwhat is an oligopoly marketsources of internal and external financesuasiondefine liquidatehedging meaning in hindifayol unity of commandtypes of non banking financial institutionsfixed asset turnover ratemethods of job evaluation in hrmscaling techniques in marketing researchabsolute purchasing power parity theoryepf schememeaning of semi variable costforex meanswhat does frictional unemployment meanwhat is the meaning of neft transactionjargons in communicationfeatures of perfect competition and monopolyintrapreneurship definitiong2g meaningthe explicit cost of production is also calledbackward integration strategy examplesdefinition of deontologicalkinds of price elasticity of demandcamel rating system for banksgrowth strategy ansoff matrixregiocentric examplegolden parachutesexpectancy theory by vroom7cs of effective communication with exampleswhat is psychoanalytic theory definitionworking capital turnover formulalikert scale meaninginflation definition by economistscapital turnover formulaspearman correlation coefficientdettol definitiondownsizing meaning in hindiresembles meaning in teluguautocratic meaningselloffsporter's five forces definitiontraining techniques in hrmcardinalist and ordinalist approachexplain cobb douglas production function