THE COLLECTIVE BARGAINING MODEL UNDER ATTACK INTRODUCTION Collective bargaining is said to lie at the heart of any labour relations system and has a long history, dating from as far back as 1891, coined by the British labour-movement pioneer, Beatrice Webb (Godfrey, Maree, du Toit, & Theron, 2014). In South Africa, collective bargaining has been legally recognised since 1924 and is seen as intended means to implement fair labour practices by finding mutually acceptable compromises between parties with conflicting interests (Grogan, 2015). Collective bargaining has always had an economic and political dimension which explains its volatility. It therefore needed a balance of power and some kind of mechanism to regulate the terms and conditions …show more content…
There is thus an implied willingness from each side to not only listen, but also to find common ground. Godfrey et al. (2014) refer to collective bargaining as a confrontational process that involves negotiation between conflicting parties in order to find a mutually acceptable agreement. The LRA acknowledges trade unions and employers’ organisations as representatives of employers and employees by providing them with specific organisational rights as well as methods to create forums in which bargaining can take place (Grogan 2015). Trade unions and management therefore use collective bargaining as a dispute-resolution measure to settle grievances, preserve employee rights, negotiate wages and conditions of employment including benefits, as well as ensuring job safety and safe working conditions (Kadian-Baumeyer, 2015). The institution of collective bargaining distinguishes between rights and freedoms associated with it, namely: the freedom to bargain collectively; the right to use collective power; and a duty to bargain (Grogan, …show more content…
They argued that it allowed for the Minister to extend collective agreements to be binding on third parties within a sector and determine that an employer cannot pay lower wages or fewer benefits than what was agreed in the bargaining council, even if the employer was not part of the bargaining process. The FMF argues that the extension of such agreements create unemployment and uncompetitive conditions in product markets as many companies, especially smaller and more labour intensive firms, cannot afford to pay the set wages and therefore it becomes unprofitable for them to operate (Payne,
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.
In general, “Collective-bargaining refers to the continuous process in which representatives of the employer (government) and employees (the union) meet jointly to establish the terms and conditions of employment for workers in a bargaining unit.” (Kearney 2009, 88) Bothe parties should meet and confer in good faith. To start the collective bargaining process, both parties shall review the previous contract to set an agenda of the important things need to be negotiated, take an initial position and set proposals. (Kearney 2009, 116)
Throughout the history of the United States of America the continuation of misfortunes for the workforce has aggravated people to their apex, eventually leading to the development of labor unions.
After the Civil War, many ideologies developed into the United States of America. Some of these ideologies included the free labor ideology and the producerist ideology. Free labor endorsed the belief that by removing slavery, or any other kind of barrier, everyone had an equal chance to try to get wealth (Farless). The producerist ideology tried to stay to the customary view of society and it stressed the importance of viewing the community instead of an individual (Farless). With these two ideologies, they had an impact on labor. By believing in the producerist ideology, people would be staying with tradition, and that leaves no change for our world. Many laborers wanted change, which led to problems for the laborers.
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
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.
In Australia, industrial relations system has been shaped by diverse legislative Acts and political forces coupled with judicial decisions at both the state and federal level. This evident in the sense that there have been diverse amendments of the 1904 Act in light of increased pressures in the industrial sector. This elicited mixed reactions from the employees and employers, among other stakeholders in the industry. However, due to the disadvantages and/or drawbacks of the centralized system of collective bargaining in comparison to the advantages or positive aspects of the decentralized approach of collective bargaining, employers have favored departure from the centralized wage-fixing. Against this backdrop, it behooves us to explore the reasons as why employers have favored the decentralization of Collective bargaining in Australia.
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.
Labor unions in the late 1800's set out to improve the lives of frequently abused workers. Volatile issues like the eight-hour workday, ridiculously low pay and unfair company town practices were often the fuses that lit explosive conflicts between unions and monopolistic industrialists. Some of the most violent and important conflicts of the time were the Haymarket Affair and the Pullman strike. Each set out to with similar goals and both ended with horrifying consequences.
The beginnings of labor unions travel as far back as the colonial era when craft workers like carpenters and cobblers formed guilds, precursors to modern day labor unions (American Federationist, Miller). But it was not until the 1800’s with the advent of the Industrial Revolution and its lamentable working conditions that unions began to increase in membership and popularity (Miller).
Mandatory subject of bargaining, are the subjects or potential points that are normally specific to all collective bargaining such as wages, benefits, working conditions and length of contract. Based on these very important subjects it is clear why they are considered a “Mandatory Subject” as points of the bargaining unit. In the article, “The Mandatory - Permissive Distinction and Collective Bargaining Outcomes” the author explains how collective bargaining can involve some very essential points to be effective and without these standard subjects to be bargained over the bargaining process will not be effective. “An analysis of the potential impact of the distinction in a controlled setting indicates that unions negotiate less favorable nonwage
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.
The laws and regulations surrounding Industrial Relations since the 1900’s have, at each reform, placed tighter constraints on the amount of power unions are able to exert. The reforms have also radically increased managerial prerogative, through an increased use of individual bargaining, contracts and restrictions imposed on unions (Bray and Waring, 2006). Bray and W...
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 is the process in which employers and unions undergo a series of negotiations that include terms and typical of collective bargaining where both parties concur to conditions of employment. These conditions may include wages, hours, and working conditions (Budd 229).