Collective Bargaining Method of Negotiations - Essay Example

Case study report Contents Introduction 3 Literature review 3 Whether disciplinary action might be taken by the company 5 Whether any grievances might be lodged by employees 6 What should be done in order to protect company’s position 6 Alternative strategies that the company might 7 Conclusion 8 References 9 Introduction During the start of industrial revolutions all that the industrialists focused on was to produce more. The conditions of the workers were getting increasingly neglected. The only focus of the management was to focus on increasing the production of the goods. At that point of time marketing was also not given much importance nor were the image of the company major cause of concern. The lives of the workers and their working conditions were deplorable. Their rights were never looked after and the only job of the workers was to produce more. The few employees who ever went to ask for their demands and for better working conditions were rebuked. It is at this time that the people started forming groups and placing their demands together. That is when the concept of union took birth and the people started getting unionized. The union started placing demand in the form of collective bargaining. There were other methods of negotiations too that were developed. It is in the following pages that this method of negotiation of conflict is discussed. the process of discussion follows the critical analysis of the success and effectiveness of the collective bargaining method from the view point of different researchers and then going on to study the other methods of negotiation. Literature review According to Aidt and Tzannatos, who studied the effect of collective bargaining on the macroeconomic environment, found that ceteris paribus the countries that have high levels of coordinated collective bargaining are accompanied by low levels of unemployment. It is found that in the countries where there is more coordinated bargaining the quality and the quantity of the job increase (Aidt and Tzannatos, 2002). In another paper the researchers argue that countries where there is high levels of bargaining there is poor performance on the economic front. However the adverse effects of the bargaining coverage can be covered by more coordinated effort towards bargaining. The researchers argue that the process of bargaining efforts is most important in times of economic growth rather than in stable economic conditions (Aidt, and Tzannatos, 2008). According to the researcher individual representation is fast becoming a fact to place ones demands in the private sector for a wide variety of reasons. Thus the author argues that in case of modern private organization the significance of collective bargaining is on the decline (Troy, 2000).according to card the effectiveness of the collective bargaining mechanism or the fact about whether the collective bargaining would be able to produce any result. For the collective bargaining to produce results there should be equal representation to the union throughout the organization (Card, 2001). The unions in the workplace aim to achieve equal wages for equal work through the process of collective bargaining. Through this process the union wants to remove the act of favouritism by the company (Canal Dominguez, and Gutierrez, 2004). Another form of negotiation that can be considered is the process of arbitration. In the process of arbitration a mutually chosen arbitrator helps to preside over the negotiation process and awards a judgment that is binding on the parties. According to Antoine, the main benefit of the process over court hearing is that the people especially the poor employees do not have to pay the legal fees. However due process should be followed in the arbitration process (St Antoine, 2007). According to dickens in order to accommodate the fact that collective bargaining should focus on gender equality it is not enough to add women to the list of agenda for bargaining. Nor is it sufficient to have women as member of union. It is rather argued that radical changes are required (Dickens, 2000). Researchers Antonczyk, Fitzenberger, and Katrin Sommerfeld focus on the evidence that if there is a reduction in the coverage by bargaining then there is an increase in the wage inequality (Antonczyk, Fitzenberger, and Sommerfeld, 2010). According to Hübler, and Jirjahn, a positive impact on the productivity can be generated through the presence of work councils in a covered regime of industrial relations (Hübler, and Jirjahn, 2003). According to Kamakura the European Union is thinking of plan to expand the application of collective bargaining to the companies that are operating throughout the Europe (Kamakura, 2007). Tucker in his research makes a study of the collective bargaining in America and Canada before and post globalization. In the US it is found in particular that the collective bargaining law is racing downward (Tucker, 2004). Whether disciplinary action might be taken by the company The company is not likely to take any disciplinary action for the act of engaging in collective bargaining. This is because the demands of the people are legitimate and the method of demanding or negotiating is also within the law. It is the right of the employees to demand for better working conditions, better pay, and better health benefits and better after retirement benefits. They are guided and guarded by the law to ask for their demand through the representation of registered union. In addition to the above fact the unions have resorted to place their demand through the process of peaceful negotiation and by doing so they are protected by the law as they are the members of a registered trade union. The main factor to be noted here is that the demand that is put forward by the employees through the union is through a peaceful and legitimate process. Being the employees of the company it is the right of the employees to put forward their demands to the company through the process of collective bargaining. The company cannot take any disciplinary action against the employees for taking part in the unions and engaging in collective bargaining to place their demands to the company. Disciplinary action can be initiated only if the demands by the employees suddenly turn violent and they attack members of the senior staff. Whether any grievances might be lodged by employees The employees of the organization may file their grievance against the organization and its management only in case of the fact when the organization does not listen to the grievances of the employees and does not participate in the process of collective bargaining. However before filing a case against the management of the company for not listening to the demands of the employees, the employees should ensure that they have exhausted all the other options and other ways to arrive at the solution to the problem. Lodging of grievances should be the last resort or the option that should be used by the employees and at a time when the employees have a serious evidence of the fact that the management has done something which is against the law. Before lodging any grievances against the company in a court of law the employees should try to sort out the differences through other forms of negotiation other than collective bargaining. Other method that can be used to negotiate any grievances that the employees have with the organization is through the mediation of an arbitrator. The arbitrator will facilitate negotiation within the employees and the management of the organization to facilitate the process of arriving at a solution. The employees can lodge a complaint if they feel that they are not satisfied even with the solution provided by the arbitrator. However, lodging a complaint should be taken as the last step only after it is confirmed that other options are exhausted. What should be done in order to protect company’s position It should be noted that the tribunals should be tried to be avoided by both the parties involved. This is because tribunals do not and cannot give the ultimate solutions to a problem. The management and the employees should try and sort out the differences in the negotiation table. Collective bargaining is far better to solve the problems and the demands of the employees at hand rather than going through the tribunals. However, if it comes to the point of tribunals then the company and its management should try to put forward their point. They should try and justify their position and why aren’t able to solve and meet the demands of the employees. The best way to win a tribunal is to communicate the reason that led the pint of neither being able to take care of the employees nor being able to meet their demands. One of the reasons that the company could point out is the fact that the company was performing poorly in the market. Hence the company became financially weak and so could not meet the criteria and demand for the minimum wages. Another reason that the company can come with is in the matters of variable wages or wage disparity. The company can say in its defence that paying some peoples more in order to increase their productivity and performance. Alternative strategies that the company might Employees are the biggest assets of an organization and it is the duty of the organization to treat the employees as the assets of the organization. If the employees are not happy with the working conditions they are going to resent. They are not going to put their best effort at their job and there is going to be lot of disturbances at the workplace that might result in strikes and lockout. It is therefore quite sensible for the organization and the management to build strategies so that the employees’ welfare is looked after. Some of the alternative strategies that can be used by the organization involve studying the best practices at workplace that are done by the top organizations and emulating the same in their current organization. One of the other strategies would be to engage in discussion with the employee representatives and to jointly work out a solution that can be acceptable to both the parties and employee resentment could be avoided (Bercovitch, and Jackson, 2009). Even if the solution is hard to digest and it is not possible for the management to accept all the proposals that are put forward by the employees of the organization, the organization should try and make the employees of the organization understand about the present condition and why the organization is actually not able to meet the demands of the employees (Pammer, and Killian, 2003). The most important strategy that can be used to better manage the employees in future is to talk to them. It is important to remember that effective communication can help to ease out a lot of problems (Doherty, 2008). Conclusion After going through the research it is found that employee relations is a very important part of an organization. When the employees do not get the best working conditions and all the benefits that they are entitled to get then they engage in collective bargaining with the employers. A coordinated collective bargaining helps them to achieve their demands and increase the performance of the organization coupled with reduction in unemployment rate. There are other methods of negotiations that are available. However the best possible method and process is perhaps the process of collective bargaining. The employees can also take their grievances to the arbitrator who can give an effective judgment as a solution to the dispute that is binding on both the parties. The benefit of the arbitrator over the legal system is that in case of an arbitrator the people are spared from spending money that they have to do in case of the legal system. It is in the best of interest of the company management and the employees to solve the discussion and grievances through negotiation before they move on to court. However, if the decision has to be taken into court then both the parties should ensure that have an effective explanation as to what they should say in their defence. It is also found that the company cannot take disciplinary action as the right to engage in collective bargaining is a fundamental right of the employees of the organization. References Aidt, T. and Tzannatos, Z., 2002. Unions and collective bargaining. Economic Effects in a Global Environment. Washington DC: Weltbank. Aidt, T. S. and Tzannatos, Z., 2008. Trade unions, collective bargaining and macroeconomic performance: a review. Industrial Relations Journal, 39(4). pp. 258-295. Antonczyk, D. Fitzenberger, B. and Sommerfeld, K., 2010. Rising wage inequality, the decline of collective bargaining, and the gender wage gap. Labour Economics. 17(5). pp. 835-847. Bercovitch, J. and Jackson, R., 2009. Conflict Resolution in the Twenty-first Century: Principles, Methods, and Approaches. Michigan: University of Michigan Press. Canal Dominguez, J. F. and Gutierrez, C. R., 2004. Collective Bargaining and Within‐firm Wage Dispersion in Spain. British Journal of Industrial Relations, 42(3). pp.481-506. Card, D., 2001. ‘The effect of unions on wage inequality in the US labor market’. Industrial and Labor Relations Review. 54(1). 296–315. Dickens, L., 2000. Collective bargaining and the promotion of gender equality at work: opportunities and challenges for trade unions. Transfer: European Review of Labour and Research. 6(2). pp. 193-208. Doherty, N., 2008. The Essential Guide to Workplace Mediation and Conflict Resolution: Rebuilding Working Relationships. London: Konan cage. Hübler, O. and Jirjahn, U., 2003. Works councils and collective bargaining in Germany: the impact on productivity and wages. Scottish Journal of Political Economy. 50(4). pp. 471-491. Kamakura, Y., 2007. Recent issues regarding collective bargaining and conditions of work in the chemical industry. ILO. Pammer, W. J. and Killian, J., 2003. Handbook of Conflict Management. NY: CRC Press. St Antoine, T. J., 2007. Mandatory Arbitration: Why Its Better Than It Looks. U. Mich. JL Reform, 41(4), pp.783-812. Troy, L., 2000. Beyond unions and collective bargaining. Working USA. 3(5). pp. 102-134. Tucker, E., 2004. Great Expectations Defeated: The Trajectory of Collective Bargaining Regimes in Canada and the United States Post-NAFTA. Comp. Lab. L. & Poly. J., 26, (97). pp. 97-105. Read More