Chapter 10 Collective bargaining

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Chapter 10 Collective bargaining

• Chapter reviews
• Why parties behave as they do in CB
• Different structures in CB
• How CB proceeds
• There is a potential for 6 bargaining structures,
  see Table 10.1, p.262
• Canadian CB very decentralized
• Jurisdictions split
• Union organizing

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Chapter 10 contd

• Pattern bargaining a situation in which key
  bargaining settlements set the standard for other
  settlements
• E.g. auto industry
• Unions like this strategy as it takes wages out
  of competition
• Why is it becoming more difficult to achieve?

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Chapter 10 contd..

• See Fig. 10.1 p. 266
• Process is depicted as quite linear
• Components
• Un and Er bargaining goals
• How do they determine their goals?
• Target and resistance points
• Book suggests set outcomes for each goal (mandate)

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Chapter 10 contd

• Bargaining goals contd
• Typical goals of the parties
• Want the best each can obtain
• Distributive vs integrative issues
• Parties goals impacted by several factors
• Environmental factors such as rate of inflation,
  state of economy
• Socio-demographic factors
• Age and sex of bargaining unit
• Characteristics of firm/union
• Increase use of technology

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Chapter 10 contd

• Relative Bargaining Power includes the costs
  associated with the disagreement and costs of the
  agreement
• The ability of a party to achieve its
  goals/objectives is reflective of its relative
  bargaining power
• Factors impacting bargaining power
• Environmental factors
• Public support
• Change to legislation
• Potential political changes

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Chapter 10 contd

• Factors contd
• Legal environment
• legislation on labour issues e.g. essential
  employee provisions
• Economic conditions
• State of economy
• Ability to substitute other goods
• Competitive environment
• Ability to utilize non-striking operations
• Un may bargain less for wages and focus on other
  issues

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Chapter 10 contd

• Factors contd
• Socio-demographic
• Composition of the parties, how far will members
  go on a particular issue.
• Organizational characteristics
• Type of product produced
• Technology of production
• Characteristics of Un
• Ability to sustain a strike
• Membership support of Un executive

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Chapter 10 contd

• Defining Potential Zone for Agreement
• Have to be flexible on both sides
• Dont get boxed-in
• See Fig. 10.3
• Cant know before start where settlement zone is,
  or if there is one
• How to get there?

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Chapter 10 contd

• Process to negotiate
• Serve notice, usually a time frame
• Process
• Conciliation
• Get to legal strike/lockout position
• Preserve your relationship
• Innovative approaches
• Greater use of joint committees during term
• Start process earlier

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Chapter 10 contd

• Mutual Gains bargaining IBB
• interests not positions
• Requires degree of trust
• Experienced negotiators
• w/o prejudice process
• Win-win scenario
• Outcomes of CB
• Terms and conditions of employment included in CA
• Compensation, productivity impacts
• Spill-over effect