Collective Bargaining: A Process in Which Representatives of Labor & Mgmt Negotiate the Terms & Conditions of Employment

Collective Bargaining: a process in which representatives of Labor & Mgmt negotiate the terms & conditions of employment.

Structure:

Single Employer Bargaining: a single employer involved w/ a single union (can also bargain w/ more than 1 unit). Boutique is a specialized Taylor agreement b/w employer & unit (usually seen in oligopolistic type market)

Pattern Bargaining: Pick a target firm & then form an agreement (Pay, benefits, etc.) called a pattern (i.e. 6% over 2 years). Ex: The Caterpillar Company Ð'- United Automobiles Union (DEER) the Union wanted a pattern, company did not so they went on strike, ended up going back to work w/ no agreement, and then went on strike again. They ended up accepting less than the pattern. Bridgestone & United rubber are another example. They stroke because company would not allow Ð''em to pattern bargain. Union did not survive strike, now combined w/ steel workers unions.

Multi-Employer Bargaining: Employer meets w/ all units & comes up w/ the same agreement (i.e. all athletes, all grocery workers, etc.) They form an employers association & the representative of that negotiates.

Book: a behavior theory of Labor Negotiations Ð'- Richard Walton & Robert McKenzie. It revolutionized thinking about negotiations. This book was done in both perspectives instead of just one side.

There are 4 aspects of negotiation:

1. Distributive Bargaining: involves $ typically & how $ distributed. Fixed sum is usually how $ is distributed. Union wants a bigger piece of the pie & company wants to hold onto that piece of that pie. Labor & Mgmt view each other as adversaries. Union asks for everything & a lot of it. Mgmt says take away, loss of privileges a little more subtle approach.

2. Integrative Bargaining: The 2 groups get together & problem solve on ways to make the pie bigger. They get along w/ each other & must be creative. Their view is productivity can never be high enough. In the 1980's Chrysler Corp. had a lot of problems & were setting records for losing $. They only had big cars that were gas-guzzlers (headed for bankruptcy). Chief Executive, Iakoka wanted to buy a little time so that they would be ok. Company wanted Gov. to bail Ð''em out w/ working capital to get the company going again. Gov. did not lend the $, but offered loan variability. The bank would lend the $, but the Gov. would back the company & the loan. The deal was the company had to cut labor cost, which it did quickly.

3. Attitudinal Structuring: Highly important. Attitudes good then agreements are easier. Some are power operations. Cooperation comes out ahead of uncooperation. It's a give & take process.

4. Intraoraganizational Bargaining: Labor bargains w/ labor & mgmt bargains w/ mgmt to solve problems b4 bargaining begins.

Power in Bargaining:

1. Induce other person to agree w/ u by positive incentives. Negative Fashion: Union = strike, picket, etc. Mgmt = lockouts, threats relocation, and negative media. Negative tends to dominate in Business (manufacturing)

2. Positive make work place safer, healthier. You catch more bees w/ honey then u do w/ vinegar.

3. Exploring possibilities for a win/win situation.

Disputes & Dispute Settlements:

1. Impasse Resolution Procedures:

a. Mediation (most common method): involves neutral third party. Many parties don't even know what the argument is about, mediator gets together separately w/ each party and attempt to determine what the problem is, along with where each side stands. Mediators must be trusted, tend to be good listeners. In the end, the mediator can suggest things that can be done.

i. Where do mediators come from?

1. Set up by Taft Hartley Act, most have had careers in Labor & Mgmt. At least half mediators are women. Deal w/ big companies & interstate commerce

2. State of CA mediators & Conciliation Service: smaller companies, plus state & local gov.

3. Private mediators: Fairly uncommon, have to be paid for because they are uniquely qualified or respected.

ii. Not always successful, compromise b/w the mediator & parties

iii. Works about 70% of the time.

b. Voluntary Interest Arbitration: People voluntary submit the issue to arbitration. It isn't used very often Ð'- Stronger party will not want to

go to arbitration because they want to keep upper hand. Arbitration is not the best idea, not easy for someone to come in & make the best decision.

c. Complusory Interest Arbitration: used primarily for the firefighter or police disputes (law requires). It is a substitute for a strike. 27 states have compulsory arbitration statues.

i. Conventional Method: 3 ways to approach this: Split the difference, chilling effect Ð'- parties move farther apart than staying close together, dependence /narcotic effect.

ii. Final Offer Method: Arbitrator must choose one offer or another offer

1. Package Arrangement: Arbitrator chooses the whole package of union side or the employer side.

2. Issue by issue: instead of the whole package, they pick each one

Grievance: Any work related dispute or issue Ð'- those matters which involve company policy, or collective bargaining agreement.

As company gets bigger you get departmentalization. The easy way to deal w/ it is to have a grievance procedure w/o interrupting productivity

a. it is a bottom to top upward flow of communication

b. a way to keep unions out.

In collective bargaining agreement, this is the way that grievances should be done

1. the informal step employee & supervisor (most problems solved here)

2. Put into writing Ð'- 1st level supervisor involved

3. Chief & 2nd level supervisor

4. Union President & Plant office mgr.

5. Arbitration

Typically grievances are 3-5 steps.