Negotiation Process In Employment: Strategies, Conditions, And Collective Bargaining

1. Research the strategies that unions and employers use during a contract negotiation. What conditions are needed for the strategy to be successful or not.

2. Write an 8- to 10-page academic paper that synthesizing your research and includes the items listed. Use headers in your paper. Include at least five references.

a. Strategies that unions use during a contract negotiation.

b. Conditions needed for each of the strategies to be successful or not.

c. Strategies that employers use during a contract negotiation.

d. Conditions needed for each of the strategies to be successful or not.

e. If you were on the management team for the bargaining session conducted in Week 5, provide your assessment of the final cost impact of the agreement on the company.
f. Add references at the end of each paragraph.

The Importance of a Fair Negotiation Process

Negotiation is a process by which any dispute or any new proposal on an employment can be discussed in between the employers and the workers. Certain proposals are positioned by joint agreement of employers and the workers. In any employment, where any difference has been taken into place, the most appreciated terms are negotiation. The relation between the employer and the employees are based on the employment contract. A contract is a legal document, where certain terms and conditions are included. After the parties put their signature on the document, all the terms and the conditions imposed on the parties mandatorily (Macaulay, 2018). However, the terms and conditions will be applied on the parties after they have been negotiated and agreed by the parties. The consents of the parties will be free and the parties take certain strategies in this negotiation process. The parties adopt various give and take policies in this case where the parties to the negotiation process have incurred certain mutual rights and responsibilities. However, certain conditions are required to make every strategy justifiable (Tomlinson & Lewicki, 2015). The strategies help to balance the risks. In this report, the workers and the employers to settle down the dispute regarding the pay scale policies have adopted certain strategies discussed briefly.

Contract negotiation:

According to the general formation rule of a contract, one party has made certain offers and other party accepts the terms of the offer. The process of acceptance should be free and no coercion or duress should be taken into place. In case, the terms of the contract are disputed, negotiation should be done between the parties to come into a reasonable conclusion. The main purpose of the negotiation is to balance the risks generated in between the parties by way of mutual settlement. In case of contract negotiation, each party has the liability to negotiate certain things and need to compromise certain facts regarding the same. The base of the negotiation should be fair and the real interest of the parties is required to be established. There are many risk factors present in case of employment negotiation, of which two main factors are risks and revenue (Zhang et al., 2016). Contract negotiations are called as collective bargaining process to certain extent where each parties of the employment make certain offers and counter-offers. Concessions are also suggested in union contract. Proper steadfastness is required from the aspects of the union and the management to come into a fruitful solution (Filippini, Koller & Masiero, 2015). According to National Labour Relations Act 1935, the process of collective bargaining should be exercised on good faith and a common goal regarding the same should be fixed. No artificial barriers regarding the negotiating subject should be taken into place. The tentative stage of the contract negotiation could be ended after getting the approval regarding the final contract. A memorandum of understanding has been prepared by the parties to flush out the details of the negotiation.

The Role of Trade Unions in the Negotiation Process

Strategies taken by the union:

In all the unionised employments, new proposals are resolved through negotiation process in between the employers and the unions and the nature of the negotiation is collective bargaining process. Both sides who will take part in the process nominate certain representatives to deal with the matter. The main purpose of such negotiation is to maintain the workplace standard. In every employment, certain strategies are to be adopted by the unions to establish their demands and in this case, they are taken certain strategies such as striking, collective bargaining, and confrontation (Cascio, 2018).

One of the most effective strategies is the collective bargaining where certain working benefits such as salaries, pay scale and conditions are discussed and the rights of the workers are established in this process. The process of collective bargaining works as labour contract in between the parties and the employers. The process has been termed as one of the fundamentals of human right in Article 23 of Universal Declaration of Human Rights. In this current case, a dispute regarding the pay scale of the employees has been cropped up and certain proposals for negotiation have been generated. Collective bargain could be appropriate in this case. In this process, the unions take certain proposals and the employers and votes are casted on the same. All the negotiated terms are imposed mandatorily on the parties.

Conditions for the strategies:

There are certain conditions engraved in the collective bargaining process that makes it effective such as political and social climate, trade unions, attitude regarding problem solving, available information and unremitting discourse. The process of collective bargaining has been positioned in highest rank to resolve the industrial disputes and the role of favourable political and social atmosphere is significant in this case. A political conflict could arise in the presence of various working union and political satire will raise this conflict. It is necessary to come into a clear concept (Frandsen & Webb, 2017). The main condition of the process should secure the interest of the employees and the attempts of the union will establish this fact through effective collective bargaining. The next condition regarding the same should be the problem-solving attitude of the unions. Both the parties should have common intention to solve the dispute and the economic implication of the acts and the proposals are required to be identified by the union. Further, freedom of the association is necessary in this case and effective collective bargaining process could not be possible in the absence if this freedom. It helps to protect the interest of the workers. There should be certain required degree of organisation and there should be certain amount of stability; else, the process of collective bargaining could not be possible. Recognition of trade union is also necessary to this effect. If proper recognition regarding the same could not be achieved, the process of collective bargaining could not be fulfilled.         

The Necessity of a Favourable Political and Social Atmosphere in Collective Bargaining

Strategies taken by the employer:

In case of any employment contract negotiation, employers are playing a significant role. The negotiation process has been made in between union and employer where certain new or existing proposals are discussed regarding the employment. A contract negotiation is a give and take policy and therefore, certain mutual settlements have been made in this negotiation process. In this given case study, it has been observed that certain pay roll issues have been cropped up. The employers have found out certain issues regarding the enrolment in retirement plans of the employees and wage increment plan for fifth and sixth plans. According to the management team, certain measurements taken by the union regarding the contractual negotiation are not correct, as strikes could be proved harmful for the society and for the company (Cooper & Mishel, 2015). Therefore, in this case, the management group wants to negotiate with the union in certain timely and amicable manner so that possible ultimatum could be made in this case. It is the main duty of the management team to consider all the issues so that no contradictory statement could ever be tabled or unreasonable demands made by the union. There should be certain limitations of the discussion and both the parties will consider certain things. Considering the subject matter of the case, it can be stated that main three issues are increase in pay, expansion of time off and flexible schedule (Chan & Hui, 2014). The employers are to certain extent wants to come into a clear conclusion. Collective bargaining is an effective process in these cases. The employers in case of effective collective bargaining take certain strategies. The employers are not debate on any issue unjustifiably and the bargaining teams are expected to have authority to enter into tentative agreements on contract proposals. The employer’s team should not include a majority of the members of the Board so that a Board commitment to an issue cannot be immediately made at the table. If a majority of the Board is present, the union will put intense pressure on the members who are present to commit to a position. There should be certain ground rules regarding the strategic methods (Visser, Hayter & Gammarano, 2015). The employers are required to make certain structure to resolve the dispute systematically and in this regard, they will think about time limitation of the meeting and invocation of the mediation process. The mentality of the employer should be to resolve all the disputes and they should not make any proposal regarding take it or leave it basis. Further, the employers should not take any kind of proposals made by the employees or by the unions. The employers are suggested package proposals during the negotiation process where they have proposed for certain changes and in case of any adverse situation, they have to take certain assertive role to get out of the contradiction and resolve the issue for securing the interest of the company and the employees (Flavin & Hartney, 2015).

The Responsibilities of Employers in the Negotiation Process

Conditions for the strategies:

There are certain conditions that the employers must follow. It is the duty of the employer is to show certain diligence to the organisation and in this case, they will provide all the assistance to the worker’s union. In case of weaker working class, a mediation process should be organised by the workers. The success of the collective bargaining process depends on the stability of the working class. One of the essential elements of the collective bargaining process is the freedom of the association. The term freedom of association denotes the rights of the employees will be protected from any kinds of inconvenience (Christofides & Oswald, 2012). A give and take policy must exist in the organisation. In case of any contradictory situation, the dispute could be resolved through amicable settlement between the parties. Neither side should be too rigid on its demand. Both the employers and the trade unions resort to sometimes-unfair labour practices. These will restrict the development of collective bargaining. Both the sides should avoid unfair labour practices, as this will create an atmosphere of goodwill (Antonczyk, Fitzenberger & Sommerfeld, 2010). If collective bargaining has to be fully effective, a favourable political climate must exist. The government and the public opinion must be convinced that collective bargaining is the best method of regulating employment conditions. The government should remove all legislative restrictions that hamper collective bargaining. One of the main conditions regarding the effective collective bargaining strategy is to have certain willingness to resolve the dispute arises. In addition, all the process should be based on fair practice and any unfair labour practices should be avoided. In case of any kind of proposal, the employers are required to serve notice to the employees so that they could get reasonable chances to discuss on the matter (Davey, 2013).

Impact of final cost:

Considering various cost settlement, it has been observed that the employers for the betterment of the employees have taken certain initiatives and impacts of all these things are quite attractive. Certain unemployment benefits have been pointed out and the automatic retirement plan will help the senior employees a lot. Further, the health care benefits also create great impact on the employees.

Conclusion

To conclude, it can be stated that in case of any issue raised regarding the pay scale or shift time of the employees, the issues are to be resolved by both the parties through certain negotiation. In case of employment negotiation, both the parties have certain duties to each other and in this case, both of them are maintaining certain strategies to come into an effective conclusion. Considering the case study, it can be stated that the process of collective bargaining will be regarded as most effective strategy for the union and the employers. In this report, certain conditions have also been discussed that are necessary for all the strategies and the contents of all the conditions are required to be followed by both the parties and both the parties are liable to maintain the fair process. The main aim of the contractual negotiation is to resolve all the disputes regarding an employment and issues like pay scale or shifting time is an essential part of the employment. Therefore, it can be stated that both the parties are obliged to take certain methods so that the interest of both the parties could be secured and proper collective bargaining process is an ideal option for the parties.

References:

Antonczyk, D., Fitzenberger, B., & Sommerfeld, K. (2010). Rising wage inequality, the decline of collective bargaining, and the gender wage gap. Labour economics, 17(5), 835-847.

Cascio, W. (2018). Managing human resources. McGraw-Hill Education.

Chan, C. K. C., & Hui, E. S. I. (2014). The development of collective bargaining in China: From “collective bargaining by riot” to “party state-led wage bargaining”. The China Quarterly, 217, 221-242.

Christofides, L. N., & Oswald, A. J. (2012). Real wage determination and rent-sharing in collective bargaining agreements. The Quarterly Journal of Economics, 107(3), 985-1002.

Cooper, D., & Mishel, L. (2015). The erosion of collective bargaining has widened the gap between productivity and pay. Economic Policy Institute, Washington, DC. www. epi. org/publication/collective-bargainings-erosion-expanded-the-productivity-pay-gap/. Accessed, 10.

Davey, H. W. (2013). Contemporary collective bargaining. Prentice Hall.

Filippini, M., Koller, M., & Masiero, G. (2015). Competitive tendering versus performance-based negotiation in Swiss public transport. Transportation Research Part A: Policy and Practice, 82, 158-168.

Flavin, P., & Hartney, M. T. (2015). When government subsidizes its own: Collective bargaining laws as agents of political mobilization. American Journal of Political Science, 59(4), 896-911.

Frandsen, B. R., & Webb, M. (2017). Public employee pensions and collective bargaining rights: Evidence from state and local government finances. Hutchins Center Working Papers.

Macaulay, S. (2018). Non-contractual relations in business: A preliminary study. In The Law and Society Canon (pp. 155-167). Routledge.

Tomlinson, E. C., & Lewicki, R. J. (2015). The negotiation of contractual agreements. Journal of Strategic Contracting and Negotiation, 1(1), 85-98.

Visser, J., Hayter, S., & Gammarano, R. (2015). Trends in Collective Bargaining Coverage: Stability, Erosion Or Decline?: Labour Relations and Collective Bargaining. ILO.

Zhang, S. B., Fu, Y. F., Gao, Y., & Zheng, X. D. (2016). Influence of trust and contract on dispute negotiation behavioral strategy in construction subcontracting. Journal of Management in Engineering, 32(4), 04016001