negotiation and collective bargaining

1. Tourism and Hospitality Management School
Leadership In Hotel Magt. & Human Recourse
THM602
Ass. Prof. Dr.Ismet Esenyel
2016/2017

2. Presentation Section
Negotiating And Collective
Bargaining
Presented by
Omar Taha

3. Collective bargaining is a process of negotiation between
employees and a group of employers aimed at agreements to
regulate terms of employment.

4. Collective bargaining is a complex process that can be best
understood through actual experience.
Some simulation exercises can approach real-life situations
that managers face in bargaining.

5. bargaining
issues
IllegalvoluntaryMandatory

6. Mandatory Issues
Mandatory bargaining issues include issues that relate
directly to the relationship between employer and
employee.
Wages
 hours of work
Incentive pay
Overtime
Seniority
Safety
Benefits
Grievance procedures

7. Voluntary issues
voluntary bargaining issues can discussed if both sides
want to do so. These issues are sometimes called
permissive bargaining issues.
 Supervisory compensation
 Supervisory discipline
 Performance bonds for union or management
 Contract ratification process
 Company price or product issues.

8. Illegal issues
During the process of collective bargaining, both sides are
restricted from bringing illegal, or prohibited, issues to
the bargaining table.
Any practice that violates Equal Employment opportunity
laws (discriminatory hiring or promotion practices, for
instance)
Closed-shop agreements
Featherbedding
Union or agency shop clauses in states with right-to-work
laws.

9. Economic
• Wages
• Pay ranges for different jobs
• Management discretion in pay
ranges (Wage adjustments due
to inflation).
• Profit sharing
• Bonus plans
• Pensions
• Insurance coverage and
benefits
• Holidays, vacations, personal
days, or sick pay.
Reasons Behind Bargaining
Non-Economic reasons
• Quality of work-life issues
(workplace safety, training, benefit
packages, educational opportunities,
and child care)
• Union security
• Work rules
• Size of work crew
• Types of work that can and
cannot be done by various
employee groups
• Grievance and arbitration

10. Preparing for Negotiation

11. - Audit and analysis of grievances filed under the existing
contract.
- Compare the contract to other contracts in the industry and
review union demands in previous negotiations.
- Analyze the wages and benefits paid by others in the industry
and community.
- Identify management objectives and approve the negotiation
plan.
steps of negotiation

12. - Analyze the compensation packages paid by its own operation
Designate a bargaining team.
- Designate a coordinating committee to develop bargaining
guidelines.
- Establish communication with other employers in the industry or
with employees in related industries to identify any necessary
replacement workers Develop a contingency plan for a possible
impasse in negotiations.
- Develop a communications plan to inform workers of the progress
of contract negotiations.

13. - Refine the bargaining strategy.
-Analyze the contract to determine issues to discuss and identify
issues for the union to present for discussion.
- Analyze the contract to determine issues to discuss and identify
issues for the union to present for discussion.
- Brief directors on the entire preparation plan.
- Finalize the plan in writing.
- Establish bargaining guidelines for top management approval.

14. The union negotiation team
usually consists of:
- lead negotiator.
- the business agent.
- some employees and stewards.
- an officer of the local union.
The management negotiation
team
- lead negotiator.
- the head of the human resources
department.
- Lawyer (often a consultant trained in
collective bargaining negotiations).
- experts skilled in written and
oral communications, labor and
benefit cost analysis, and
estimating.
The chief negotiator has the final
authority during negotiations.
Confidentiality is important during
collective bargaining negotiations.
the size of the team becomes an
issue; it should be small enough to
protect confidentiality.

15. Negotiation Strategies

16. -Distributive bargaining (win-lose, zero-sum issues)
Often, each side presents a proposal in which one side "wins"
and one side "loses."
Distributive bargaining occurs when management and the
union are in conflict over a major issue such as wage.
If the union is granted $10 more in wages, then the company
must, by definition, lose $10.

17. -Integrative Bargaining (win-win)
Integrative bargaining occurs when the two sides are not in
direct conflict over an issue such as quality of work.
Issues of this type call for more collaborative bargaining.

19. - Attitudinal Structuring.
attitudinal structuring is the degree of trust the sides feel
toward each other During negotiations.
Such a bargaining involves shaping and reshaping of attitudes
to positive and cooperative. (from hostile to friendly, from
non-cooperative to cooperative, from un-trust to trust, and so
on).

20. - Intra-organisational Bargaining
there may be differences even within the management.
While personnel manager may support increase in wages, the
finance manager may oppose him.
Given such situation, intra-organisational consensus is
required for the smooth acceptance of the agreements arrived
at collective bargaining.

22. Mediation and Arbitration
Mediation and arbitration use third parties to help unions and
management reach agreement during collective bargaining
negotiations.

23. Mediation
A mediator is a third party who attempts to help both sides
reach an agreement.
Mediators can make recommendations, but they cannot
force agreement.

24. Arbitration
Unlike mediators, arbitrators have the power to force
agreements on both sides during negotiation.
unions and management can often reach agreement without
the use of an arbitrator.

25. Mediation and Arbitration
In some cases, unions and management agree to use the
services of a mediator arbitrator. This person first mediates to
bring the two sides closer together, then arbitrates or forces a
decision.

26. Strikes

27. Before agreeing to strike, union members and Management must
carefully consider the effect of strikes or lockouts.
employees
- loss of wages.
- depletion of the union's strike
fund
- possible loss of their jobs.
employer
- great economic losses.
- reduced profits.
- reduced employee morale.
- the development of harsh
feelings on both sides.
- break down lines of
communication and teamwork
that sometimes take years to
develop.
A new tactic used by unions today is to use social media outlets to publicize their
strikes and the issues surrounding them.

28. Types of Strikes
The differences relate to the legality of the strike and the
amount of protection afforded union members during the
strike.
Economic Strikes (Primary - Secondary - Partial)
Economic strikes can result when sides reach an "impasse"
during the negotiation of such mandatory issues as wages or
working conditions.

29. Unfair Labor Practice Strike
Purpose is to force the employer to cease committing what the
union believes to be unfair labor practices. It may or may not
occur during negotiations.
Sit-down strike
Employees show up to their place of employment, but they
refuse to work. They also refuse to leave, which makes it very
difficult for anyone to defy the union and take the workers'
places.

30. Wildcat Strikes
Conducted by groups of workers without the authority
and consent of the union.
A secondary strike
a strike in which the strikers have no direct grievance against
their own employer but attempt to support or aid usually
another group of workers on strike.

31. Management Approaches During Strikes
Management must be careful not to engage in unfair labor
practices during strikes. Such practices include:
- Offering extras to strikers who return to work.
- Threatening strikers with loss of jobs or other
discipline.
- Promising nonstrikers benefits to remain on the job.
- Discharging employees who take part in legal strikes

32. Strikes in the United States and Around the World
The number of strikes in the U.S. and around the world has
declined steadily since World War II.
In 2009 there were only five major strikes in the United
States.

33. Grievances

34. Grievance procedure.
Stage 1 Employee complains to a frontline supervisor about an issue. No
written report is required. About 75 percent of grievances are resolved at
this stage.
Stage 2 Employee complains to department head or personnel office with
the aid of steward or other union official. Generally, the employee is
required to submit the grievance in writing.
Stage 3 Union official presents the written grievance to company
president.
Stage 4 Written grievance is presented for arbitration.

35. Sources of Grievances
- Security. Job security is a critical union issue.
- Compensation Practices.
- Working Conditions.
- Ambiguous Terms. Many grievances arise simply because of
unclear language in the contract.
- Employee Disregard for Company Rules. The largest single
grievance area involves how management exercises its right to
discipline employees when they disregard company rules.

36. Preventing Grievances
Many grievances can be prevented if management follows a
policy of fair and consistent management practice and selects,
and employees properly in the first place.
Documenting Incidents.
The most critical step in winning a grievance is clear
complete, and accurate documentation of facts.
include dates and times of the event, names of the people
involved, names of any witnesses, and any other pertinent
facts.

37. Progressive Discipline.
Most progressive discipline policies have a minimum of four
steps:
- Oral warning
- Written warning
- Suspension ( final warning )
- Discharge

38. Union Rights During Investigatory Interviews.
These are interviews during which management examines
facts surrounding an event, not interviews in which
disciplinary action is taken.

39. OMARTAHA1983@YAHOO.COM

40. CASE STUDY