Employee relations processes consist of the approaches, methods and staff and their unions, developing a cooperative and constructive employee relations. Individualization of the Employment Relationship and the Implications for Trade Unions. Author(s). Nicolas Bacon (Loughborough University Business School. Industrial relations and. collective bargaining in China. Chang Hee Lee. Industrial and Employment. Relations Department. International Labour Office • Geneva.
Such a markup is typically 5 to 10 percent in industrial countries. This act makes it illegal for employers to discriminate, spy on, harass, or terminate the employment of workers because of their union membership or to retaliate against them for engaging in organizing campaigns or other "concerted activities," to form company unionsor to refuse to engage in collective bargaining with the union that represents their employees.
It is also illegal to require any employee to join a union as a condition of employment.
Collective Bargaining Gives Employees a Voice
At a workplace where a majority of workers have voted for union representation, a committee of employees and union representatives negotiate a contract with the management regarding wages, hours, benefits, and other terms and conditions of employment, such as protection from termination of employment without just cause.
Individual negotiation is prohibited. Once the workers' committee and management have agreed on a contract, it is then put to a vote of all workers at the workplace. If approved, the contract is usually in force for a fixed term of years, and when that term is up, it is then renegotiated between employees and management.
Sometimes there are disputes over the union contract; this particularly occurs in cases of workers fired without just cause in a union workplace. There are three specific elements of collective bargaining which characterise the functionality and importance of this phenomenon, such as: Bargaining arrangements refer to the way unions and employers are organised to engage in discussions and negotiations.
The occurrence of this trend was not only resulted by the decreased multi-unionism but the desire of simplified methods of bargaining. Bargaining coverage is another component of collective bargaining and it defines the percentage of workers whose pay is determined by unions and employers bargaining negotiations. There are findings which indicate a significant decline in the collective bargaining coverage in unionised work environments since Carrell and Hearvin, This trends has been particularly observed in the private sector and has been resulted by the emergence of many unionised work environments with no or low collective bargaining.
Another reason for this trend could be proposed to be the declining union density. There are other suggestions which outline that the declining union coverage may have been even resulted by the decreased support of employees Carrel and Hearvin, Finally, the bargaining levels can be described as the pay bargaining which occurs at different workplace levels which is part of a multi-site organisation.
However, one factor to cause possible changes in the bargaining system and procedures can be identified to be multi-national corporations MNCs operating in the UK. Although there is little evidence on innovative changes in the bargaining procedures and change, recent information suggests that one of the most distinctive features would be the promotion equality and diversity practices Blanpain, a.
In this respect, it can be suggested that the growing popularity of MNCs has resulted in an increase of corporate strength in comparison to union memberships. Trade Unions A trade union or also known as labour union can be defined as an organisation of employees who have joined together to negotiate and achieve a common goals which is usually related to working conditions, such as: It is an organisation which emerged in many countries during the Industrial Revolution when the bargaining power was in possession of employers because employees had comparatively lower skills and thus were often mistreated Kearney and Carnevale, This is the reason why, the importance of trade unions has been recognised to be significant as it is the body which bargains with employers on behalf of its members and thus is responsible primarily for the development of labour contracts.
However, trade unions are organisations which not only do gather current workers as members but also unemployed and past workers can participate in this structure.
It does not matter the current employment condition of the individual but the primary purpose is for the trade union to improve labour conditions through the development of multi-beneficial labour contracts Rees, In this respect, trade unions are recognised to provide employees with a wide range of benefits, such as: From the above outlined functions which trade unions have, collective bargaining can be proposed to be one of the most common and influential.
As already explained in the previous section, collective bargaining is the process of negotiating better employment standards for union members. However, trade unions have attracted some criticism over the years of their existence.
The primary criticism is associated with the concerns of their benefiting primarily workers who have secure jobs and isolating those who are unemployed and looking for career prospects that cannot achieve or those who are at risk of unemployment. On the other hand, a macroeconomic perspective of the impact of trade unions suggest that they tend to increase wages and working standards for particular industries but the expense of fewer jobs available.
In other words, unionised industries tend to grow in better work standards, whereas the wages in non-unionised industries tend to decline, which implies that the work of trade unions is predisposing to a zero sum game condition Blanpain, Collective bargaining is a source of solving the problems of employees in the work situation collectively.
It provides a good climate for discussing the problems of workers with their employers. The employees put their demands before the employers and the employers also give certain concession to them.
Thus it ensures that the management cannot take unilateral decision concerning the work ignoring the workers. It also helps the workers to achieve responsible wages, working conditions, working hours, fringe benefits etc. It provides them a collective strength to bargain with employer. It also provides the employers some control over the employees.
The process of collective bargaining is bipartite in nature, i. Thus collective bargaining serves to bridge the emotional and physiological gulf between the workers and employers though direct discussions. The HR Labor Relations Manager directs the organization's labor relations agreement in accordance with executive level instruction and endorsement.
They supervise labor relations support staff and serve as the management representative in labor negotiation, bargaining, or interpretive meetings.
Collective bargaining and labour relations (Collective bargaining and labour relations)
Thus collective bargaining is defined as a process of negotiation between the employer and the organized workers represented by their union in order to determine the terms and conditions of employment. Collective Bargaining is primarily a political rather than an economic process. He describes collective bargaining as a power relationship between a trade union organization and the management organization.
The agreement arrived at is a compromise settlement of power conflicts. Encyclopedia Britannica defined collective bargaining as a process of discussion and negotiation between an employer or group of employees and a group of work-people to reach agreement on working conditions.
If negotiations are between an employer and a group of his work-people, the dependence of the work-people on the employer for their job weakens their bargaining power, and therefore, collective bargaining is more usually understood to be negotiation between one or more trade unions and the employer or group or association of employers".
It may be broadly defined as an agreement between a single employer or an association of employers at the one hand and a labour union on the other, which regulates the terms and conditions of employment. Article 19 1 c of the Constitution of India guaranteed to all citizens the right to form association or unions.
National Industrial Tribunal, it was argued that Article 19 1 c guarantees, as a concomitant to its right to form associations or unions, a right to effective collective bargaining and a right to strike. But the Supreme Court rejected the argument and said that even a very liberal interpretation of sub-clause c of clause 1 of Art.
The collective bargaining as a policy has been in vogue in the United Kingdom, the United States of America, Australia, New Zealand and other countries. However in India the trade unions have more to learn from these countries to tackle the industrial problems.
The Govt, of India, through its Five Year Plans has endeavoured to encourage the practice of collective bargaining.
Collective Bargaining gives employees a voice
Obviously this can best be achieved by the parties themselves A collective bargaining process generally consists of four types of activities Distributive bargaining: It involves haggling over the distribution of surplus. Under it, the economic issues like wages, salaries and bonus are discussed. This is most commonly explained in terms of a pie. Disputants can work together to make the pie bigger, so there is enough for both of them to have as much as they want, or they can focus on cutting the pie up, trying to get as much as they can for themselves.
In general, distributive bargaining tends to be more competitive. This type of bargaining is also known as conjunctive bargaining.