LR N6 Module 3 Collective bargaining

Labour Relations N6 Module 3: Collective bargaining Downloaded from hlayiso.com

Collective bargaining Collective bargaining is an important element of labour relations. This is an initiative of a trade union to ensure that a solution is found to both substantive and procedural issues. Downloaded from hlayiso.com

Definition of collective bargaining • Is a voluntary process of talking to each other (negotiation) • Is trade union-initiated • Involves a two-way process of pressure and counter pressure • Is a method of reconciling conflicting interests of management and labour • Is a tool that is used with the objective of reaching an agreement • Is a mechanism to improve wages and working conditions Downloaded from hlayiso.com

Functions and objectives of collective bargaining • Establishing workplace rules • Determining compensation • Standardising compensation • Determining priorities for attention • Ongoing reconsideration of bargaining arrangements Downloaded from hlayiso.com

External environment influencing collective bargaining • Economic forces • Government and public policy • Political influences • The legal environment Political influences • Social influences Environmental influences • Technological influences Social influences Technological influences Downloaded from hlayiso.com

Types of bargaining  Distributive bargaining – results in a win-lose situation  Integrative bargaining – results in a win-win situation  Intra-organisational bargaining – undertaken by members of the same institution to strengthen the vision of the enterprise  Attitudinal structuring – tries to change hostility to friendliness BEFORE negotiations take place Downloaded from hlayiso.com

Difference between centralised and decentralised Centralised bargaining bargaining Decentralised bargaining Takes place on central level Takes place on shop floor level Known as formal bargaining Known as informal bargaining Agreement reached binds the whole Decision reached binds only industry management of that specific plant Bargaining council involved – To bargain on a decentralised level, consists of equal number of the trade union must at least be employers (employers’ recognised organisations) and trade unions. Trade unions must be registered Dispute handled by the Commission Dispute handled by the bargaining council for Conciliation, Mediation and Downloaded fromArbitration hlayiso.com (CCMA)

Recognition of a trade union • Before management will be willing to bargain collectively with a trade union, the trade union must first be recognised • Factors to be taken into account: Numbers? Sufficiently represented? Registered? Influence? Downloaded from hlayiso.com

Results of collective bargaining • Agreements to be reached on: Substantive issues, for example, wages Procedural issues, for example, grievance and disciplinary procedures Downloaded from hlayiso.com

Enforcement of collective bargaining agreement • Enforced by the common law • Rules as applicable to any contract • Only binds the parties that signed the collective agreement • Breach of contract if not adhered to Downloaded from hlayiso.com

Bargaining council Downloaded from hlayiso.com

Activity • Define collective bargaining. 6×1 (6) • Discuss the objectives of collective bargaining. 5×3 (15) • Brief detail, separate centralized and decentralized bargaining. 5×2 (10) • Advise the employer on what factors to take into consideration in order to recognize a trade union as a bargaining partner. 4×1 (4) • Explain how a collective agreement can be enforceable. 4×1 (4) • Name a type of an agreement and two examples thereof. 3×1 (3) • Determine the extension of agreements to non-parties. 4×2 (8) [50] Downloaded from hlayiso.com