Collective Bargaining

1. Collective Bargaining

2. Green (1994): Collective bargaining is a process through which an employer or group of employers negotiate the terms and conditions of employment of their employees with the representatives of one or several worker organizations and reaching agreement on these issues. Important functions: (Cole) -emphasis on collective not individual action • concerned with rule making , settlement of employment conditions • voluntary in nature - aims to reach agreement

3. Functions Collective bargaining is said to serve a number of functions, these include: 1. decision-making: - allows for workers through their representatives to speak and take actions jointly on policies which guide and rule their working lives. - the grievance procedure is a key part of the joint decision making process - It is a formal memorandum of decisions that have been reached and it constrains management’s freedom and discretion to take actions without consulting the workers’ representatives.

4. 2. Economic • The cost of labour can be clearly determined and predictable over a period of time. In other words, what are the terms on which labour will be supplied to the business in the present or the future. • The collective agreement is a formal contract and the grievance procedure is a non-legal means for ensuring that the employer complies with its terms.

5. 3. governmental: • in this context each party can veto the actions of the other, • the collective agreement is a body of law that is negotiated by management and union, • the grievance procedure as a primary legislative process, covers the interpretation and application of the terms and conditions of the agreement, and as a supplementary process, to agree on issues not covered in the agreement. (N.B. most collective agreements may contain elements of all three views.

6. Legal enforceability of collective agreement Green (1994): a collective agreements (CA) is the end result of collective bargaining. Both parties sign the written document. It is sssentially binding in honour, nota legally binding contract, i.e. if either party does not keep its side of the bargain there can be no legal proceeding by the injured party. . Agreements are compose largely of ‘best expectations’ which present practical problems of enforcement. The environment in which the agreement is reached is against a background of opinion that is adverse to enforceability. Collective agreements are not worded in legal language, which make them difficult to apply strictly. (N.B. parties can opt to include legally binding clause, making agreement a contract). While the agreement is not binding on the parties, the terms and conditions contained in it are binding on the individual contract of employment of the employees covered by the agreement. Salamon (2000): It is argued that legal enforcement of CA would put pressure on unions officials to ensure that members complied with the terms of the agreement thereby inhibiting unofficial strikes and providing management with greater security to plan and organize its activities. However, a number of problems exist : (a) what constitutes a collective agreement; (b) what is the purpose of establishing the agreement itself as a legal contract; and (c) what effect it will have on strike activity.

7. (a) Most collective agreement are expressed in formal documents. But many operational details are worked out at workgroup level, may not be written out and depend on ‘verbal understandings’. Such practices are outside the scope of the law and would be difficult to decide through legal interpretation. • (b) One the main purposes of the agreement is to hold the trade union liable to damages should it seek to change the agreement during its ‘lifetime. However, the need may arise for interpretation, clarification or redefinition, if and when circumstances change ,thus terms of the agreement may subject to re-negotiation. A legal requirement to maintain the original terms would constrain the union in this regard. • (c) To make the agreement legally enforceable is no guarantee that there will be fewer days lost to industrial actions. If legally enforceable, the result may be more prolonged industrial disputes, especially strikes during period of negotiating the agreement (the American experience attest to this).

8. Content of Collective Bargaining • There are three broad areas of content: • Substantive terms and conditions of employment are concerned with matters of right employees consider themselves entitled to: pay (basic rates, allowances for special working conditions, shift work or working in abnormal conditions; hours of work; paid annual holidays; fringe benefits (pension, sick pay, company car, cheap loans, private medical facilities) • Procedural rules are concerned with the rules and procedures to be used by both sides. These are procedures for disputes, discipline, recruitment, redundancies, consultation, for conducting negotiations, technology, etc. Salamon(2000): procedural agreements introduce a degree of certainty into the organizational relationship. The define what issues are to be subject to joint regulation, how they are to be handled and the roles of the parties.

9. Working arrangements explain the nature of the work and how it is to be carried out and is associated with the development of organizational-level bargaining. It is an important feature of productivity, new technology and flexibility arrangements, which deal with the introduction of new work arrangements and often contain provisions relating to manning levels, inter-job flexibility time flexibility, use of contractors, etc. The aim of working arrangements is to increase work flexibility. However, there can be problems as employees may use them as justification for not carrying out work required by management. Relevant legislation: (Antigua and Barbuda) The Trade Union Act 1943 – gives trade unions legal status, provides compulsory recognition in respect of union membership. The Antigua and Barbuda Labour Code 1975 – brings together all legislation applicable to employment, employment standards and industrial relations. The Industrial Court Act 1976 – under which coverage unsettled disputes can be arbitrated and remedial awards delivered by appointed judges. N.B. Invariably, legislations are patterned off standards set by the International Labour Organization (ILO).

10. Collective Bargaining Process • The collective bargaining process begins with negotiations. This is the process of discussing a matter with a view to reaching an agreement. • Each party has a set of power resources, the use of which depends on: • degree of dependence on each other • amount of trust in the relationship • existence of rules of behaviour • skill of negotiators • availability of sanctions (union - strikes, work to rule, boycott ; management – lay-offs, redundancy, strict enforcement of rules, closure, etc). N.B. See notes, “Negotiating Skills….” by Barry Fawcett for the steps in the process.