STRATEGIC COLLECTIVE BARGAINING - International Labour Organization
INTERNATIONAL ORGANISATION OF EMPLOYERSSTRATEGICCOLLECTIVEBARGAININGAN INTRODUCTIONFOR EMPLOYERS
CONTENTSMODULE 1 - INTRODUCTION . 11.1 Overview . 11.2 What is Collective Bargaining? . 21.3 Why Enter into Collective Bargaining . 61.4 The Risks of Collective Bargaining . 81.5 The Aim of Collective Bargaining For Employers . 91.6 Options for Bargaining . 101.7 The Pros and Cons of Multi-Employer Collective Bargaining. 111.8 What is Strategic Collective Bargaining? . 161.9 The Collective Bargaining Process / This Guide . 171.10 Key Lessons . 18MODULE 2 – STRATEGIC COLLECTIVE BARGAINING . 212.1 Introduction . 212.2 Preparing for Collective Bargaining . 242.3 Collective Bargaining Strategy . 282.4 Have Your Own Claims . 312.5 Performance or Incentive Based Pay. 332.6 Be Pragmatic and Realistic . 372.7 Longer Term Strategy . 392.8 Obstacles to Successful Collective Bargaining . 402.9 Partnership With Your Employers’ Association . 412.10 Key Lessons . 42MODULE 3 - THE LAW. 433.1 Introduction . 433.2 Navigating the Law of Collective Bargaining . 463.3 Industrial Action . 473.4 Freedom of Association . 503.5 The ILO . 523.6 Key Lessons . 52
MODULE 4 - NEGOTIATION . 554.1 Introduction . 554.2 Negotiation Planning. 564.3 Negotiation Phases. 654.4 The Approach To Negotiation . 714.5 Negotiation Tactics . 774.6 Negotiation Psychology . 864.7 Employer Negotiating Behaviour . 894.8 Key Lessons . 91MODULE 5 – WRITTEN COLLECTIVE AGREEMENT . 935.1 Introduction . 935.2 Why Use a Written Agreement . 945.3 What Makes a Good Written Agreement. 975.4 Agreement Approval / Voting . 1025.5 Communicating With Your Employees . 1085.6 Dealing with Disputes During the Life of the Agreement . 1105.7 Enforcement . 1165.8 Checklist of Important Matters for any Collective Agreement . 1175.9 Key Lessons . 118MODULE 6 – IMPLEMENTATION, EVALUATION & RENEGOTIATION . 1196.1 Introduction . 1196.2 Implementation . 1206.3 Monitoring and Continuous Improvement . 1236.4 Communication . 1266.5 Renegotiation . 1266.6 Length of Agreement / Expiry Date. 1316.7 Dispute Settlement. 1366.8 Political Dimension . 1366.9 Key Lessons . 139ATTACHMENT A - GLOSSARY OF TERMS . 141ATTACHMENT B - LABOUR MANAGEMENT PLAN . 145
MODULE 1 - INTRODUCTIONMODULE1-INTRODUCTION1.1 OVERVIEW1.1This Guide provides a basic introduction to Collective Bargaining. It seeks toprovide practical advice and ideas to employers either bargaining for the firsttime, or seeking to get more out of the collective bargaining process.1.2It has been prepared for employers, by employers. This is a joint project of theInternational Labour Organisation’s Bureau for Employers’ Activities(ACTEMP) and the International Organisation of Employers (IOE).1.3The Guide aims to give employers critical tools to get the most out ofcollective bargaining and use this process to their best commercial andoperational advantage. It contains a number of practical ideas and approaches,reflecting best practice and experience across a number of collectivenegotiations and a number of national systems.1.4The Guide supports the Strategic Collective Bargaining Training Program beingdelivered in the Asian region during September 2009. The Guide and TrainingMaterials have been designed to work together as an integrated package. TheGuide provides more information on the ideas and concepts introduced in thetraining program for employers to take back to their workplaces.1.5Both the Guide and the Training Program have been organised intosix (6) Modules:a.Module 1: IntroductionThis introduces the collective bargaining concept, the benefits of collectivebargaining and what employers should be seeking to get out of this process. Italso introduces various key options for enterprise bargaining, and theimportance of approaching bargaining strategically to get the most out of it asan employer.b.Module 2: Strategic Collective BargainingThis outlines a strategic model to ensure employers can get the most out of thecollective bargaining process for their business. There is an emphasis on toolsto improve your productivity, efficiency and competitiveness. There is also anemphasis on effective planning and preparation.1
MODULE 1 - INTRODUCTION1.6c.Module 3: The LawComplying with the law is critical for successful collective bargaining and alsooffers the prospect of improving commercial outcomes for employers in manycases. Module 3 outlines an approach for ensuring legal compliance andharnessing what assistance your national legal system may offer.d.Module 4: NegotiationNegotiations lie at the heart of collective bargaining. Getting the most outnegotiations is critical to getting the best possible outcomes for your business.Module 4 outlines some practical negotiation skills and tactics to equipemployers to enter negotiations effectively and strategically. It identifies bothgood practices and mistakes to avoid in the negotiation process.e.Module 5: Written Collective AgreementCreating an effective and enforceable written agreement from your collectivenegotiations (the collective agreement) is critical. This is the key finishedproduct of the collective bargaining process, most clearly visible to you andyour employees. Module 5 outlines what makes an effective written collectiveagreement and provides some practical ideas to ensure you get the most out ofthis stage of the process.f.Module 6: Implementation, Evaluation and RenegotiationFinally, collective bargaining is an ongoing process. The concluding moduleoutlines considerations for the implementation, evaluation and renegotiation ofyour collective agreement to ensure collective bargaining continues to make thebest possible contribution to your commercial operations.The Guide is generic in nature and deals generally with collective bargainingacross a wide range of national systems. Advice may need to be sought at thenational level on the application of some of the concepts and options includedin the Guide in your national system.1.2 WHAT IS COLLECTIVE BARGAINING?Collective bargaining is a process of determining the terms and conditions ofemployment in your workplace by agreement with your employees.2
MODULE 1 - INTRODUCTION1.71.8The key elements of collective bargaining are:a.Collective bargaining is a process. Employers should understand thisprocess, understand the opportunities it presents and use itstrategically. National laws will generally regulate this process, and it isimportant to know what the law does and does not allow (Module 3).b.Collective bargaining is about the terms and conditions of employment.This means negotiations on wages, bonuses and allowances, terms andconditions of employment, hours of work, rosters etc.c.Collective bargaining is a tool to regulate conditions of employment. Itis a means to achieve outcomes beneficial to your business. Just like anyother commercial activity, you as an employer need to use it to yourbenefit.d.The outcome of collective bargaining should be an agreement betweenthe employer and employees on the terms and conditions ofemployment (the Collective Agreement). Not all negotiations willresult in an agreement, but generally successful collective bargaining isfinalised by the making of a written collective agreement (this isrequired practice for good collective bargaining and protecting yourinterests as an employer).At all times, collective bargaining must be viewed as a tool.a.Employers: It is a tool which employers use to set the terms andconditions of work. It is a tool which employers can use to pursue theirstrategic and commercial goals, and to implement strategic plans suchas the Labour Management Plan in Attachment B. Collective bargainingand collective agreements can also be useful in standardising theadministration of employment, and simplifying how you manage andemploy your staff.b.Employees: It is a tool which employees use to set terms and conditionsof employment which become the legal obligation of the employer.Collective bargaining is a tool that employees use to address theirpriorities, increase benefits, and pursue job security.c.Governments: It is a tool which governments use to ensure thatworking conditions are fair, enjoy the support of employers andemployees, and can be negotiated with a minimum of disruption tosociety and to the economy.3
MODULE 1 - INTRODUCTION1.9Collective bargaining is one tool amongst many potentially available to yourbusiness. Depending on your national system and national legislation,employers may have a range of options for how work is organised andregulated. In partnership with your employers’ organisation, you can adaptthe lessons in this guide to suit the needs of your business.1.10Regardless of how big your business is, how many staff you employ, andwhether you have previously participated in collective bargaining, this Guidewill offer useful ideas and checklists for you to consider, and practical adviceon approaching the collective bargaining process and getting the most out ofit.Collective bargaining developed as an alternative to ad hoc employee claims andindustrial instability.(Done well) it is a process which allows employees to secure additional rights andbenefits, and also allows employers to manage this process, ensure their operationsremain commercially viable, and to plan and budget employment costs into thefuture.It offers scope for substantial mutual gains for employers and employees, and analternative to either industrial chaos or stalled workplace relationships.This is why employers throughout the world support collective bargaining as onetool to manage terms and conditions of employment in the workplace. This isreflected in the importance of collective bargaining within the International LabourOrganisation’s body of international labour standards.1.2.1 Collective Bargaining must be by Agreement1.11Collective bargaining is a process of negotiation leading to mutual agreementon terms and conditions of employment. Employees setting the rules underwhich they work is not collective bargaining, nor is an employer setting therules of work on their own.1.12Only where outcomes are agreed by both parties is there genuine collectivebargaining. This does not mean that employers or employees will be happywith the way each and every issue is dealt with in a collective agreement, buton balance they will be able to agree to the package of terms and conditions ofemployment (expanded on in Module 2 and Module 4).4
MODULE 1 - INTRODUCTION1.131.14For example:a.An agreement may provide for a 5% annual wage increase per year.The employer may not support any wage increase, but has calculatedthat the 5% can be accommodated taking into account some of the othersavings in the agreement.b.The same agreement may also provide that shifts can be worked latereach day, providing the employer with greater productive capacityduring times of peak demand. On its own, the employees may notagree to this, but in exchange for a 5% pay increase they are willing todo so.c.No party will be happy with every part of the agreement. But, onbalance and when viewed as a whole, they can agree to it, and to workunder it as the best possible negotiated outcome.The need for pragmatism and realism is a key part of taking a strategicapproach to collective bargaining (see Module 2 and Module 4).1.2.2 The Collective Agreement1.15The outcome or product of collective bargaining is the collective agreement.This is a written agreement between the employer and the employees (or withthe involvement of an employee representative) which reflects the mattersagreed during the negotiations.1.16Collective bargaining leads to the written Collective Agreement:1.17The written agreement may change the organisation of work, or it may putexisting arrangements in writing. Module 5 provides information on turningcollective bargaining negotiations into an effective collective agreement.5
MODULE 1 - INTRODUCTION1.3 WHY ENTER INTO COLLECTIVE BARGAINING1.181.19There are a number of reasons why an employer might participate incollective bargaining.a.To make an agreement with their employees, and to have the securityand predictability that a written collective agreement can deliver.b.To agree terms and conditions for the life of an agreement, and haveemployees agree not to pursue any further claims for the period of theagreement, perhaps for 2 or 3 years (see 5.6).c.The employer may want to improve the current organisation of work tobetter meet the needs of their business. In many cases, this can only beachieved by entering into a collective agreement.d.The employer may want to introduce one general set of employmentconditions (the collective agreement) which also allows for a degree ofvariation between individuals (using a specific term of the agreementallowing variation by individual agreement).e.This may be part of wider strategic and operational planning, includingusing bargaining as part of a Labour Management Plan (Attachment B).f.The employer may be responding to employee demands. Employeesmay approach the employer seeking a collective agreement. Anemployees’ organisation may serve a log of claims on the employer, andinitiate the collective bargaining process.g.In some cases, major clients (perhaps multinationals placing very largeorders) may encourage or even require a company supplying them tohave some form of collectively negotiated agreement with theiremployees.h.Collective bargaining is also actively promoted at an international anddomestic level by a number of organisations, including the ILO.Alternatively, an employer may examine collective bargaining and concludethat it is not the strategic direction they wish to head in at that time.Throughout this guide we emphasise the importance of obtaining strategic6
MODULE 1 - INTRODUCTIONadvice from your employers’ organisation. This may include advice onwhether to enter into collective bargaining or not at a given point in time.1.20Entering into the collective bargaining process does not compel an employerto agree to a particular collective agreement. There are a number of situationsin which employers may participate in discussions and even enter intonegotiations, but conclude at some point that the collective agreement processis not appropriate for them at that time.11.21Regardless of why you enter into the collective bargaining process, you areentitled to expect to get the most out of it for your business. All employers canlegitimately expect to have the collective bargaining process deliver on thefundamental aim set out below (see 1.5).1.22This guide provides useful background information for any employerconsidering whether or not to enter into collective bargaining. Employers needto consider, for example:1Note:a.Their options to use collective bargaining in pursuing their widercommercial, operational and employment strategies. The LabourManagement Plan (Attachment B) is an example of such planning.b.The benefits to the operation of their business of setting terms andconditions of employment for some predicable period. A two yearagreement for example will allow an employer to factor in predictableemployment costs across two years and to enter into longer termcommercial contracts on the basis of these labour costs.c.The benefits to the operation of their business of not having anyindustrial action or extra claims for the period of an agreement. Thiscan be very useful where the country or industry an employer operatesin has a reputation for industrial unrest or unreliability.d.Whether there is such a level of support for collective bargainingamongst employees that the employer will need to enter into some formof collective bargaining at some point in the future. In other words, iscollective bargaining inevitable for your workplace?Some national systems require processes of compulsory conciliation and arbitration. Depending on the national system andthe circumstances, employers may be compelled to accept the outcome of such processes.7
MODULE 1 - INTRODUCTIONe.Whether employees and their representatives have formulated specificclaims they wish to have the employer bargain upon (for example awages claim, a claim for an additional allowance, or claims aboutleave).1.4 THE RISKS OF COLLECTIVE BARGAINING1.23Employers also need to consider the possible risks of entering into collectivebargaining. These risks might include:a.Entering into collective bargaining may encourage employees to makeclaims for increased terms and conditions – potentially creatingdisputation and increasing the costs of employment.b.Entering into collective bargaining may encourage the creation andpopularity of employee representative organisations.c.Entering into collective bargaining may disrupt working relations, andlead to industrial disputes which can harm the profitability andreputation of the company.d.A fear that you may no longer control the organisation andperformance of work, and cede control to employees or to argumentseach time with an increasingly organised set of employees.1.24One of the key lessons in this guide is that a strategic approach to bargainingcan minimise and control these risks, and allow employers to make informeddecisions on whether or not to enter into a collective bargaining process.1.25These risks also need to be considered critically:a.If there is employee support for a representative organisation, thatorganisation will form and will become the representative voice ofemployees. An employer cannot avoid employees forming their ownrepresentative groupings, and indeed trying to do so can often onlystrengthen the organisation and drive more employees to join it.b.If you fear the collective bargaining will unleash employee claims forincreased wages and benefits, then these tensions will already bepresent and these claims will be inevitable anyway. Pursuing collectivebargaining does not cause employee claims, and it may offer scope foremployers to deal with them on their terms and according to theirtimetable.8
MODULE 1 - INTRODUCTIONc.1.26Collective bargaining does not necessarily lead to more contested andless peaceful working relations. The negotiation process can actuallyimprove relationships with employees, and can create ongoingopportunities for communication which can benefit production andquality well beyond the terms of the agreement.The guide can assist employers in viewing perceived risks realistically andpragmatically and making an informed decision about how to navigate them.Sometimes it may be better for an employer to control when a collectiveagreement is entered into, and to ensure the timing of collective bargaining ison their terms rather than that of employees and their representatives.A strategic approach may often see the employer initiate the collectivebargaining process, and encourage the making of the first collectiveagreement. This can have significant longer term benefits.1.5 THE AIM OF COLLECTIVE BARGAINING FOR EMPLOYERS1.27Regardless of why an employer has entered into the collective bargainingprocess (and regardless of whether bargaining has been instigated by theemployer, employees or an employee representative) there is one key aim allemployers should be looking for from collective bargaining:The aim of collective bargaining for any employer should be to ensure theperformance of work properly contributes to productive, stable and sustainablecommercial operations.1.28Performance of work: Collective bargaining is a process to establish the termsand conditions of employment. Collective bargaining concerns work, workingrelations, relations between employers and employees, how work isorganised, the times at which work is undertaken, shift and rosterarrangements, pay and conditions of work, leave arrangements etc.1.29Productive: Collective bargaining should make enterprises more productiveor at least maintain productivity. Collective bargaining is not operatingcorrectly where it ultimately makes a business less productive or less viable.Where an employer wants to make changes to work and its organisation, thecollective bargaining and collective agreement process should provide amechanism to deliver this. Module 2, Section 5 introduces some specific ideason how to encourage greater productivity using pay.9
MODULE 1 - INTRODUCTION1.30Stable: Successful collective bargaining must offer extended periods of strikefree, disagreement free, stable operations. One of the benefits of collectivebargaining for an employer can and should be securing a period (e.g. 2 or 3years) free of disputation, free of industrial action and free of any additionalclaims. During the period of the agreement, the employer should also be ableto accurately budget their labour costs, and know how much a given level ofproduction or service will cost.a.Enforcement is critical. Such arrangements should only be entered intoif they will be complied with in practice, across the life of youragreement.b.Your employers’ organisation can advise of the utility of sucharrangements in your national system and practical issues to beaddressed.1.31Sustainable: The outcomes of collective bargaining for employers have to besustainable. Any collective bargaining system has to be properly balanced toensure that the outcomes of collective bargaining are consistent with creatingcollective agreements that contribute to sustainable enterprises.1.32Commercial: At all times employers are running commercial businesses inhighly competitive markets. The performance of work and how work isorganised needs to contribute to these commercial operations. Done well,collective agreements properly balance employee and employer needs andpriorities, and lead to more commercially sustainable businesses.1.33This Aim is also an expectation. Employers are entitled to expect that theirnational system for collective bargaining will allow them to negotiate effectiveand strategic collective agreements which contribute to their commercialoperations, and to become more competitive, more productive and moreefficient.1.6 OPTIONS FOR BARGAINING1.342This guide is about collective bargaining. However, the ideas and conceptsoutlined in this guide apply regardless of the particular approach tobargaining that is right for your particular workplace. Options for bargainingwith your employees might include2:Depending on your national system.10
MODULE 1 - INTRODUCTIONa.Individual agreements with your employees. This
strategic and commercial goals, and to implement strategic plans such as the Labour Management Plan in Attachment B. Collective bargaining and collective agreements can also be useful in standardising the administration of employment, and simplifying how you manage and employ your staff. b.
determine the terms and conditions of the Collective Agreement. This Collective Agreement then sets the rules for the workplace until the next bargaining round. The best way to learn about collective bargaining is to do it! We will be using a collective bargaining simulation designed by Dr. Kelly Williams-Whitt of the University of Lethbridge, AB.
Box 8.3 Strategic collective bargaining: An introduction for employers 81 Box 8.4 Trade union manual on export processing zones (EPZs) 83 Box 8.5 Training labour inspectors to promote and protect freedom of association and collective bargaining rights in the rural sector 84 Box 8.6 Promoting collective bargaining in Rwanda 84
the purposes of collective bargaining as defined in Chapter 4117 of the Ohio Revised Code for the bargaining unit defined in Section 2.02A. 2.02 Bargaining Unit A. The bargaining unit shall include all classified employees currently employed or to
Georgia is the only state that singles out teachers in legislation in order to prevent them from bargaining collectively (Ga. Code Ann. § 20-2-989.10).3 In Tennessee, case law has ruled public-sector collective bargaining to be illegal, but the state legislature passed a law that specifically permits collective bargaining for teachers.
Agreement, the University's Polices, Rules, Regulations and Procedures, as currently written or as amended, will apply to all Employees. 1.9 Collective Bargaining. Where required by law, and where there has been no waiver of bargaining required, the University will satisfy its collective bargaining obligation before DRAFT
whether or not to offer the terms of any existing collective bargaining to school employees. North Carolina No Ohio For start-up schools, teachers may work independently or form a collective bargaining unit. Conversion schools are subject to a school district's collective bargaining agreement, unless a majority
B. This Agreement supersedes and replaces any and all previous agreements, understandings (whether written or oral) and supplements between the Parties made under the auspice of a previous collective bargaining agreement (CBA) to include midterm bargaining, memoranda of understanding/agreement based on such bargaining, etc. 1.
Introduction to Description Logic Szymon Klarman (part of the content based on the tutorial by Stefan Schlobach) szymon.klarman@gmail.com VU University Amsterdam, 2009-2012. AR@AI Introduction to Description Logic Plan for today Tableau algorithm for ALCwith empty TBoxes Soundness, completeness, termination Reasoning w.r.t. non-empty TBoxes Szymon Klarman 1 / 1. AR@AI Introduction to .
