HICKSIAN MODEL OF COLLECTIVE BARGAINING
LARM 311
5/13/2014
PULE K.M.M 23038675
TABLE OF CONTENT
INTRODUCTION…………………………………………………………………………….2
THE PROCESS OF COLLECTIVE BARGAINING………...................................................2
THE ADVANTAGES OF COLLECTIVE BARAGINING …………………………………2
THE DISADVANTAGES OF COLLECTIVE BARGAINING……………………………...3
CONCLUTION………………………………………………………………………………..3
Introduction
In this assignment Hicksian’s model of collective bargaining is critically discussed. The process of collective bargaining, the advantages and disadvantages are also discussed. The advantages and disadvantages are compered, the aim of compering the advantages and disadvantages is to see if collective bargaining is a good or bad thing and whether or not it should be abolished or continue.
Collective bargaining is a process where employees try to resolve their conflict by negotiating the terms of employment between an employer and a group of employees. The terms of employment include items such as conditions of employment, working conditions, workplace rules, pay, overtime pay, working hours, shift length, and work on holidays, sick leave, vacation time, retirement benefits and health care benefits. The results of a collective bargaining is called a collective bargaining agreement. The collective bargaining process may involve labour strikes or employee lockouts if the employer and employees are having trouble reaching an agreement (Bendix 2006).
According to Swanepoel & Slabbert (2012) There are six steps involved in the collective bargaining process:
The negotiating team is organized to represent the union,
The mutual trust is gained between the employees,
Agreements are discussed between th...
... middle of paper ...
...is the only way fairness can be met (Du Toit, Bosch,Woolfrey, Godfrey, Cooper, Giles, …2008)
Reference List
Bendix,S.(2006) The Basics of Labour Relations.South Africa:Juta and co.LTD
Bendix,S.(2010) Industrial Relations in South Africa(5th ed.).South Africa:Juta and co.LTD
Du Plessis,J.V., & Fouche,M.A.(2012) A Practical Guide to Labour Law(7th ed.).United Kingdom:LexisNexis.
Du Toit,D., Bosch.D.,Woolfrey.D., Godfrey.S., Cooper.C., Giles.G.S., …(2008) Labour Relations Law(5th ed.). London:Lexis NEXIS Butterworths.
Gresse,A.(2005) Labour Relations N6(2nd ed.). CLS Uitgewers
Swanepoel,B.J., & Slabbert,J.A.(2012) Introducing Labour Relations Management in South Africa.South Africa:LexisNexis
Venter,R., Levy,A., Holtzhausen,M., Conradie,M., Bendeman,H., & Dworzanowski-Venter,B.(2012) Labour Relations in South Africa(4th ed.).South Africa:Oxford University press.
To conclude this analysis on the basis of the labor’s extensive history, Sloane & Witney (2010) propose, “it is entirely possible that labor’s remarkable staying power has been because of the simple fact that to many workers, from the nineteenth century to the present, there really has been no acceptable substitute for collective bargaining as a means of maintaining and improving employment conditions” (p.80). In the end, it is important to anticipate unions and employers presently work together to find solutions that will enhance collective bargaining strategies and practices to serve the interest of both parties.
David Brody argues that the rise of contractual or collective bargaining relationships during the post WWII era formalized the relationship between employers and unions, but simultaneously began to put a break on shop floor activism. Explain Brody’s argument and, where relevant, incorporate Weber’s theory of bureaucracy.
Factories were known for their ill treatment of their employees, long hours and dirty and unsafe conditions. In 1866, unions started to form to improve working conditions for the workers. A fundamental problem faced by democratic societies is as long as people live their lives individually and go their separate ways and be selfish individuals, they are unlikely to meet collectively to resolve issues. There needs to be meaningful unity among people to alleviate this problem to get people obliged to one another, so there is a willingness to sacrifice for shared goals. Bonding of its citizens creates a democracy. Unions seemed to offer the middle class a chance to become a crucial part of fostering institutions of constitutional democracy. The unions have went through several transitions, but have always worked for the working force. I will discuss the history of the various unions, their wins and losses, and the struggle of the employee to achieve democracy in the workplace.
A question that has frequently been ask over the years is, " Why should we care about collective bargaining? ". The thing that has been missing from the collective bargaining discussion is a real explanation and understanding of the concept. Collective bargaining has been described as a process when employees and their representatives form a united front, known as a union, to negotiate with their employers. These negotiations are usually over things like pay rates and salary amounts, benefits, and conditions at the workplace , among other issues. The principles of collective bargaining and unions come from the idea that employees as a group have far more bargaining power than individual employees trying to negotiate with their employer. Since collective bargaining has a basis in collaboration it is considered a very democratic process. The members of the employee union choose the issues to be bargained over and vote on if the agree to the contract proposed by their representatives and management.
The process of collective bargaining is where the labor union and the organization’s management negotiate their workplace differences in order to promote a positive working relationship ( Holley, Wolters & Ross, 2012). Both side have to go into the negotiations with the goal of having a positive and productive outcome of the bargaining process. If this is always goals then when future issues come up that have to be decided both side have a positive attitude and not on the defensive if there is a new labor dispute. The NLRA makes it a requirement for an employee to participate in the collective bargaining process with the labor union (McManemin, 1962). Both parties in the negotiation process have a duty negotiate employee salaries, work hours
The disadvantages of union membership are viewed from the employee and employer perspective. Through the employee lens, the disadvantages manifest in the form of fees, loss of autonomy, and less collaborative work environment. As part of the union, you surrender many of your individual rights in exchange for the organized results that can potentially manifest through the collective bargaining process. Therefore, there isn’t any assurance that your individual concern will even be addressed.
This means that a group of workers can unite to gain more power and leverage in bargaining. The bargaining process may include many aspects but usually consists of wages, benefits, terms and conditions of employment. The notion of union came about in the 1700's. In the beginning, as it is today, workers united to "defend the autonomy and dignity of the craftsman against the growing power of the company" (Montgomery). These early unions had many names including societies, social societies and guilds.
Despite attempting to predict the eventual outcome of the negotiation, I did not anticipate the confrontations between Local H-56 and the management of Hotel Zinnia. Although they initially agreed to engage in integrative bargaining, the union and management subsequently entered an intense negotiation. When Local H-56 presented its proposal of wage increases and health insurance, management immediately responded with a counterproposal that surprised the union. Both the union and management eventually behaved confrontationally, accusing each other of bargaining unreasonably and focusing on the trivial aspects of the negotiation. Moreover, as the union and management felt increasingly frustrated, they suffered from a lack of unity in their teams. The union could not fulfill its objectives because its lead negotiator prevented other team members from contributing to the negotiation. On the other hand, several team members of management struggled to assert their authority as the lead negotiator. After observing these issues, I ultimately believe that the union and management failed to achieve their individual objectives. Moreover, by approaching the negotiation with a zero-sum strategy, I assert that the union and management failed to reach a mutually beneficial contract. At the same time, both sides of the bargaining table lacked cohesive teams and therefore struggled under the pressure of the negotiation.
In this essay I’ll write about union membership, membership trends, the two types and levels, and the importance of unions. I’ll also discuss some of the negative sides of unionization in corporate America today.
Throughout American history, labor unions have served to facilitate mediation between workers and employers. Workers seek to negotiate with employers for more control over their labor and its fruits. “A labor union can best be defined as an organization that exists for the purpose of representing its members to their employers regarding wages and terms and conditions of employment” (Hunter). Labor unions’ principal objectives are to increase wages, shorten work days, achieve greater benefits, and improve working conditions. Despite these goals, the early years of union formation were characterized by difficulties (Hunter).
The labor union movement over the years has shaped the way individuals work and live for both the nicest and unpleasant. Some would think the unions influence has created a power struggle between management and union leaders. In today’s time, some citizens insist the existence of unions are a must to aid in employee freedom, while others view the labor unions as just another problem in the line of progress. The purpose of labor unions was for employed workers to come together and collectively agree on fundamental workplace objectives. The rise of the union came about after the Civil War- responding to the industrial economy. Surprisingly at the least unions became popular within the 1930-50’s and began to slowly decrease, starting in the 1960’s on to today. Although, the popularity of labor unions has decreased, its importance remains to be evident with politics, journalism, auto, and the public education industries. The objective of this paper is to shine light upon labor unions, taking a closer look at the disputed issues of union ethics, concerns of union diversity, and the opposing viewpoints of labor unions.
Negotiation is an important strategy and plays an indispensable role for people to solve the problem in our lives. It is a good way to make both parties find acceptable solution by each parties use tactics to persuade another party to approve his or her viewpoint. The application of the advanced negotiation skills definitely not only brings success in our daily life but also improve people’s work ability. This essay will show my natural preferences for different types of influence tactics which have been utilized in in-class, the understanding of the negotiation and analyze how to use proper tactics at different situations which are based on the role-play activity in tutorial.
A collective bargaining agreement collectively sets the terms on which an employer offers individual work contracts to each of its employees in the bargaining unit. A bargaining agreement, also herein referred to as a labour agreement, is a legally enforceable written commitment, which states the rights and duties of all parties involved. The labour agreement should be made in good faith and is intended to be observed and not violated. The National Labour Relations Act obligates employers and unions to bargain in good faith concerning terms and conditions of employment, including hours and wages. Like any normal contract, competent parties must enter into a labour agreement. However, a labour agreement is unique from other legal contracts in that there is no consideration involved and nothing tangible is exchanged. Many, but not all, unions require formal ratification of a new labour contract by a majority membership acceptance, which is determined through vote by the members. Until majority approval of those voting in a ratification election is received, the proposed labour contract is not final. While each labour agreement is unique to the needs of an organization and its employees, most agreements include five issues: (1) Management Rights, (2) Union Security, (3) Wages and Benefits, (4) Individual Security (Seniority) Rights, and (5) Dispute Resolution. Management Rights “Management” is the process of working with people and resources to accomplish organizational goals by making the best possible use of money, time, materials and people. The management process, when properly executed, involves a wide variety of activities including planning, organizing, directing and controlling. It is management’s role to perform all of these functions in order to maximize results.
Traditional literature in the field of labor relations has focused immensely on its benefit towards the employer and in the process equating it to working rules. This has been so despite the field being expected to cover the process of, labor management, union formation, and collective bargain; all which are anticipated to create a positive employer-employee relationship. This relationship is said to be positive if there exist a balance between employment functions and the rights of the laborer. Also important to note, is that this relation is equally important to the public sector as it is to the private one. Therefore, to ensure a mutually conducive labor environment exists, effective labor management process and inclusive negotiation program should be adopted (Mulve 2006; Walton, 2008).
Collective bargaining may happen in several kinds of fields, ranging politics to sports. It allows appropriate settlement of disputes and issues that benefit both parties involved, producing a result that is not one-sided. Collective bargaining is “the negotiation of wages and other conditions of employment by an organized body of employees” (Beal, Wickersham, & Kienast 5). Four issues that are probable components of a collective bargaining agreement are: