Thursday, January 3, 2013

Unit 3 - Collective bargaining

Collective bargaining

There is little doubt that the balance of power in collective bargaining in recent years, has swung in the favour of management. Managers have a choice as to what approach they take to employee involvement, but frequently that choice will depend on the nature of the product and labour markets in which they operate, as well as company history, culture, and structure, and whether their workforce is unionised.
Data from the Workplace Employment Relations Survey (Kersley et al., 2006) show that where collective bargaining does occur, traditional topics still dominate the bargaining agenda: pay, hours, holidays, pensions, disciplinary and grievance procedures and performance appraisal schemes. A small minority of firms also bargain over the core ‘HR bundle’ of training, HR planning, recruitment and selection

There are three elements:
·         Bargaining levels
·         units and agents of bargaining
·         Scope of bargaining.
There are different levels at which bargaining takes place. Bargaining may involve many employers (multi-employer bargaining), be at company level or at the level of the establishment if there are different sites where the company is located. The bargaining unit refers to the group of employees covered by a particular agreement. For example, there may be one agreement for skilled workers, clerical workers, or supervisors. The bargaining agent refers to the employee representative body which is conducting the bargaining on the employees’ behalf.

Where only one union is recognised by the employer there will be a single bargaining agent within each unit. In multi-union organisations there will be many different bargaining agents. The scope of collective bargaining refers to the subject matter of the collective agreement. This will vary between different organisations. While pay rates are common items covered by negotiation, others include hours of work, staffing levels, physical working conditions, new technology and redundancy. Trade unions aim to extend the scope of collective bargaining, while management may wish to limit it, depending on its approach to managing the employment relationship.
A further trend has been to move away from industry-level bargaining to agreements made at the level of the employer: in other words, agreements have become decentralised, away from the industry or national level. Of particular importance is the renewed ability of employers to focus bargaining on operational issues concerning cost. Pay policies are now much more closely tailored to organisational performance and the achievement of business objectives. Therefore, while business decisions over production, marketing and budgets have been decentralised, it is likely that pay negotiations and setting pay levels will stay at the level of the business unit.
In sum, there are a number of identifiable trends:
       Limited continuation of multi-employer bargaining and an increase in decentralised bargaining.
       Simplifying bargaining through single-table bargaining, bringing the issues under discussion closer to operational arrangements. Single-table bargaining occurs where all issues to be negotiated take place within a single forum, limiting multi-union involvement.
        New style collective agreements. These are also known as ‘no strike’ or ‘single union’ agreements and emerged in the 1980s. Sole bargaining rights are granted to one trade union, strikes are banned, manual and non-manual employees have single status so all terms and conditions except pay are common to all staff, a works council or other comprehensive communication system is established and traditional demarcation between jobs is abolished.
 


Figure 14.1 Movements in management style in employee relations (Source Storey and Sisson, 1993, p. 10)
The diagram shows how both individualism and collectivism take different forms and the combination of both results in different ‘ideal-typical’ approaches to managing the employment relationship.

Individualism can take three different forms:
        employee development – where employees are viewed as a valuable resource, to be trained and developed accordingly, and can move around on an internal labour market
        paternalism – where a welfare-based approach is designed to win the loyalty of employees
        cost minimisation – where employees have commodity status and are bought in from the labour market when they are required.
Collectivism can also take three different forms:
        none – at its lowest point, no unionism is allowed, and employees are actively discouraged from forming consultative groups
        adversarial – bargaining takes place but bargaining positions are polarised and compromise is commonplace
        cooperative – this relationship implies a partnership between management and unions where joint, formal and informal approaches are taken to resolve problems.
Combining these two dimensions in a matrix results in a set of different identifiable ‘management styles’. Characteristics of the different ideal types can be summarised as follows:
      Traditional: A fire-fighting approach. Employee relations not important until there is trouble. Low pay. Hostility to trade unions. Authoritarian. Typical in smaller, owner-managed businesses.
        Paternalist and modern paternalist: Unions regarded as unnecessary because of employers coverage of the same issues. High pay. Concentration on encouraging employee to identify with business objectives. Modern paternalists also formally consult with the workforce.
        Sophisticated consultative: Union participation encouraged through recognition. Problem-solving, informal approach to employee relations. Emphasis on two-way communications.
        Bargained constitutional: Similar to sophisticated consultative, but emphasis on formal agreements to regulate relationship between two powerful protagonists.
        Sophisticated human relations: Similar to paternalist approaches, but instead of focusing on employee welfare, a conscious effort is made to invest in and develop the human resource, and promote internal labour markets.

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