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CHAPTER EIGHT. COLLECTIVE BARGAINING AND NEGOTIATION. Objectives of this chapter. Outline the definition and function of collective bargaining Explore the context within which collective bargaining takes place Consider the purpose of collective bargaining
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CHAPTER EIGHT COLLECTIVE BARGAINING AND NEGOTIATION
Objectives of this chapter • Outline the definition and function of collective bargaining • Explore the context within which collective bargaining takes place • Consider the purpose of collective bargaining • Outline the differing structures of collective bargaining • Explore the process of negotiation • Analyse why collective bargaining can end in conflict
Collective bargaining Webb and Webb (1902) • One of three methods used by trade unions to preserve and improve benefits for members • Also, mutual insurance and legal enactment
Collective bargaining Flanders (1968) • Cannot draw parallels between individual and collective bargaining • Process that involves the joint making of procedural rules • Political institution
Collective bargaining Chamberlain and Kuhn (1965) • Market or economic function • Governmental function • Decision-making function
Two models • Conjunctive bargaining • Co-operative bargaining
Substantive terms • Pay • Hours of work • Holidays • Pensions • Other benefits
Procedural terms • Redundancies • Other terms – collective • Other terms – individual
Collective agreements • Not legally enforceable • Can be incorporated into contract of employment by express or implied incorporation
Structure of collective bargaining • Scope • Units • Representation • Levels
Levels of bargaining • Multi-employer • Single-employer • Workplace bargaining
Use of collective bargaining • Has declined alongside decline in trade union membership • Most common in public sector • Not the activity most commonly undertaken by trade union representatives
Negotiation • Explicit and deliberate event • Conducted by representatives • Purpose is to reconcile differences • Partly dependent on the perceived balance of power in the relationship between the two parties
Stages of negotiation • Preparation and analysis • Presentation • Searching for and identifying common ground • Concluding the agreement • Writing up the agreement
Aspiration grid Items for negotiation Management Employees Ideal Real Fallback Fallback Real Ideal Basic rate increase of 2.5% X X X O O X Introduction of productivity bonus X X O X X X Increase in holiday entitlement X O O X X X Changes to parental leave X O O O O X Retention of no-strike clause X X X O X X
Why does conflict occur? • Abuse of power • Goal incompatibility • External factors • No clear decision-maker • Unreasonable expectations • Psychological contract breached • Rogue leaders • Management style • Subordinate style