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Transcript of 1 Critical Skills in Collective Bargaining A Workshop Presentation By Grayson Koyi Institute of...
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Critical Skills in Collective Bargaining
A Workshop Presentation
By Grayson KoyiInstitute of Economic and social research
University of Zambia+260 977 783425
Structure of Presentation
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IntroductionConceptual definition: collective
bargaining Pre-negotiations preparationsKey issues for negotiationsPractical hints for actual negotiationsChecklist for key CBA elementsConcluding remark
IntroductionA recent study on collective bargaining in Zambia made the
following observation regarding how trade unions treat collective bargaining in Zambia:
“ Unions treat collective bargaining (CB) as an event and often go into it without adequate technical preparation…they treat it as something that comes once a year or after two or three years. When that time comes, there is a great buzz of activity as negotiators rush and panic to gather information and elicit technical assistance for bargaining. Once negotiations are completed, collective bargaining is put down until the next year or next time around.” (Collective Bargaining Indicators, 2010 Report)
Best practice, however, suggest that for collective bargaining to be effective, it has to be approached as a process rather than an event.
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In this module, we deal with the following key questions:What is collective bargaining and what are its essential
features and key objectives?What do we need to do first in our approach to
collective bargaining?Here we provide some pointers for pre-negotiations
preparations .What are we negotiating about?
Here we sample and discuss some key issues of concern for union members in collective bargaining.
What strategies can we use to ensure our negotiations are successful?Here we discuss and provide some guidelines for
conducting actual negotiations and undertaking investigative negotiations.
What should we be looking out for when about to sign CBA?
Here we provide a checklist of basic elements that form the content of a Collective Bargaining Agreement(CBA).
Overall, we provide a justification for our contention that an effective approach to collective bargaining has to rest on:
Good preparation and a good analysis of the needs of the members, and how these can be prioritized;
The resources [financial and technical] available for negotiations from within the ranks of the unions as well as from supportive research institutions and other like-minded organizations, and;
How these can be mobilized; and the past experiences, and what lessons can be learned from them.
What does the term collective bargaining mean?
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The right to organize and collective bargaining Convention(No.98), of 1949 describes CB as:“voluntary negotiations between employers or
employers’ organizations and workers’ organizations, with a view to the regulation of terms and conditions of employment by collective agreements”
Thus, collective bargaining(CB) can be defined as:“Negotiations relating to terms of employment
and conditions of work between an employer, a group of employers or an employers’ organization on one hand, and representative workers’ organization on the other, with a view to reaching an agreement”.
What are the essential features of CB?
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There are several features of CB, all of which cannot be reflected in a single definition or description of the process:It is not equivalent to CBA because CB refers
to the process or means, and CBA to the possible result, of bargainingNote that CB may not always lead to CBA
It is a method used by trade unions to improve the terms and conditions of employment of their members
It seeks to restore the unequal bargaining position between employer and employee
Features of CB contd
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Where it leads to an agreement, it modifies, rather than replaces, the individual contract of employment, because it does not create the employer-employee relationship
The process is bipartite, but in some cases the state plays a role in the form of conciliator where disagreements, or where collective bargaining impinges on government policy.
What are the objectives of Collective Bargaining?
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The overall objective of CB is the negotiation of an agreed set of rules to govern the substantive and procedural terms of the employment relationship, as well as the relationship between bargaining parties themselves.
The specific objectives of CB include:To facilitate the formal interaction and regulation of
the employer-employee relationshipTo establish and regulate a mutually acceptable
system of work related claims and obligationsTo ensure worker participation in decision making
and in setting the terms under which they are to work
To apply the widely held notions of equity and social justice to the industrial setting or the labor market
To provide the means of resolving conflict [conventional view]
Discussion point/group activity
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i) Why is collective bargaining important in labour- management relations?
ii) How does collective bargaining impact positively and negatively on a country’s economy?
iii) Explain the importance of these statements in the conduct of collective bargaining
a) Collective bargaining is a democratic practice
b) Collective bargaining as participation in decision making
c) Collective bargaining as a regulation process
Pre-negotiations preparations: What do we need to do first?
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Objectives: Be clear about your objectives in entering the negotiations and come up with a tentative plan to achieve these objectives. Use an existing CBA as a useful starting point.Analyze how it has worked, its unsatisfactory features
and determine necessary changes. At the centre of your CB should be members’ needs
How for instance are you taking care of the needs of women and youths? How are you balancing the interests of different work categories and skills profiles?
The complexion of the workforce is changing. Hence, need to configure claims and demands to reflect changing nature of workforce.
Negotiating team: determine a negotiating team, and the respective roles of the members before negotiations.
Training in negotiation techniques: ensure that negotiators are trained in negotiation techniques and procedures
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Research: do an in-depth research to justify your submissions e.g. analysis of: economic factors, cost of living factors and basic needs
basket comparative study of wages in similar industriesEmployer’s ability to pay / company performance analysis
Core demands: Identify crucial demands the union should formulate clear strategy on e.g. the possibility of trading some of the other demands in return for achieving objectives on these crucial demands.
Inverting options: prepare to provide alternative options to what the employers’ position might be.
Research Skills, Research Skills, Research Skills…are critical for successful bargaining!
Get your priorities right
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Strategy: formulate a strategy for all stages of the negotiations. Before negotiations start, the strategy should include matters such as:Options as referred aboveHow much to demand while leaving room for
further negotiations if the initial demand failsHow to link unions demands to concessions to
be made
Strategy (plan of action to achieve your goals) is key!
What are we negotiating about?
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Normally, a union should be able to negotiate about the following:Wages
Internal wage structureSize of the wage increaseDistribution of the average wage increase: absolute
amount across the board or equal percentage increase or differentiated percentage increase?
How wages are to be paid: time or piece rate?Adjustments in wage rates during life of CBA: COLA
or periodic increases?Fridge benefits, [ non-wage compensation
negotiated through collective bargaining], e.g.Health insurance, funeral schemes, houseloan,
private pension plan
The conditions of work. e.g.Hours of work, overtime pay, shiftsHealth and safetyAllowances
Grievance [and disciplinary] procedures
Union security provisions, e.g.Union shopUnion due check-offSub-contractingAdaptation to technological change
Other issues such as retirement, HIV/AIDS, gender equity and a wide range of human resource issues such as professional development and training, promotions, confirmations etc.
Always ask yourself this question: are we addressing members’ needs?
What are some strategies for effective conduct of actual negotiations?
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Establish ground rules at the beginning of negotiationsEnsure appropriate dress codeBe well-prepared with facts, figures and argumentsHave a team leader ( or chief negotiator) and speak with
one voiceAssign some members of the negotiating team some
specific roles e.g. to be intimidators and provocateurs of the situation
Employ divide and conquer battle tactics Before reacting to management’s written response, seek
brief recess to consult team membersWhen things get hidden in figures and technical rigor,
constitute a joint technical committee
Negotiation skills , Negotiation Skills, Negotiation Skills…are critical!!!
Checklist of key elements of CBA
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(i) The date of commencement of the agreement.(ii)Its duration(iii)How it can be terminated or altered [statutory clauses](iv)A definition of terms which may otherwise be
ambiguous(v)The procedure for settling disputes regarding
interpretation(vi) The consequences in the event of breaches of the
agreement(vii) As regards wages, exactly how conversion of
employees’ wages to new scales is to be effected.Other considerations: membership numbers and
distributions that can be included in the annex.
Reflection and concluding remarks
Zambia’s legal framework guarantees the right to the formation of trade unions as well as their recognition for collective bargaining.
However, the approach to CB has tended to be fragmentedEvidence of the multiplicity of enterprise-based CBAs
in Zambia is overwhelming even though on average the employer tends to give standard awards across different bargaining units within their industriesThis points to many union voices but limited choices
on the bargaining table.Also attests to the non-systematic approach to CB
by the union collective
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Average wage increases tends to fall short of compensating for inflationary effects.
In a majority of cases, the wages negotiated do not meet the cost of a monthly food basket
While an array of conditions of service exist, much of what is available is not accessible to all categories of the workforce; casual workers and sub-contracted workers are systematically excluded
Partial implementation of signed CBAs emerges as another sticky point
But there is also a narrow focus on limited issues for CBGoing forward, however, building the research and analytical
capacity for improved collective bargaining results becomes of the essence and this urges for improved researcher - trade union practitioner interface.The Institute of Economic and Social Research of the University of
Zambia in partnership with FNV(Netherlands) and LRS ( South Africa) has embarked on a project to support trade unions in collective bargaining Zambia.
We are currently building up a database based on what trade unions are negotiating about and then analysing how the collective bargaining outcomes are being linked to cost of living measures and poverty.
Trade unions are welcome to tap from this resource.
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In conclusion, our contention is that an effective approach to collective bargaining has to rest on good preparation and a good analysis of the needs of the members, and how these can be prioritized; the financial and technical resources available for negotiations from within the ranks of the unions as well as from supportive research institutions and other like-minded organizations, and how these can be mobilized; and the past experiences, and what lessons can be learned from them.
Analytical skills, Research skills, Mobilisation skillsNegotiation skills
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