COLLECTIVE BARGAINING

AND NEGOTIATION
LECTURE 9
DEFINITION
• Collective bargaining is a process whereby
trade unions or other workers’
representatives, and employers through their
representatives, negotiate with a view to the
conclusion of a collective agreement or
renewal thereof or the resolution of disputes.
 ILO’S DEFINITION (ILO, 1996, p. 656)
All agreements in writing regarding working
conditions & terms of employment concluded
between an employer, a group of employers or
one or more employers’ organisations, on the
one hand, and one or more representative
workers’ organisations, or, in the absence of such
organisations, the representatives of the workers
duly elected & authorised by them in
accordance with national laws and regulations,
COLLECTIVE BARGAINING (CONT)
•It is a technique adopted by two parties to
reach an understanding acceptable to both
through the process of discussion and
negotiation.
•In Malawian context, collective bargaining
is regulated by the Labour Relations Act
(1996).
 COLLECTIVE BARGAINING
• Collective agreements should bind the
signatories thereto and those on whose
behalf the agreement is concluded and that
stipulations in such contracts of employment
which are contrary to a collective agreement
should be regarded as null and void and
automatically replaced by the corresponding
stipulations of the collective agreement.
 COLLECTIVE BARGAINING
PROCESS
1. Can be initiated by either employee or employer
representatives. In Malawian context, collective
bargaining can be utilised at the following levels
• Enterprise
• Sectorial
• National
2. All collective bargaining processes are regulated by
the Labour Relations Act. Collective bargaining
culminates into a collective agreement which binds
both parties involved.
 SOURCES OF CONFLICT
Some examples of sources of conflict.
• Style of management
• Nature of physical environment of the work place
• Orientation or social consciousness of workers
• Other conditions of service
• Conflicting goals & interest between capital & labour
• Limited resources.
• Conflicting pressures
 CONFLICT RESOLUTION KEYS
TERMS
1. Arbitration
The parties put the issue to an independent third party for
determination. The parties agree in advance to accept the
arbitrator’s decision as a means of finally resolving the
matter
2. Conciliation
An attempt through informal discussions to help parties in a
dispute to reach their own agreement. The third party does
not recommend or decide on a settlement
3. Mediation
Formal but non-binding recommendations or proposals are
 CONFLICT RESOLUTION
• Conflict is seen as a natural part of the employment
relationship. As such there are occasions when such
conflict may arise necessitating resolution mechanisms.
• A dispute is difference between an employer or
employers’ organization & employees or a trade union,
as to the employment or non-employment, or the
terms of employment, or the conditions of labour or
the work done, of any person, or generally regarding
the social or economic interests of employees (Labour
Relations Act of 1996)
 CONFLICT RESOLUTION
• Conflicts can be resolved at the organizational
level between management and employees.
• Should they fail to resolve the differences, the
matter can be taken to Labour Ministry (in
Malawi). If unresolved it can then be taken to
Industrial Relations Courts for determination.
• Failure to resolve conflict might result in strike or
lock out action by either party.
 STRIKE ACTION
1. WILDCAT STRIKE
This form of strike is in violation of contract and not
authorized by the union because no reason or notice is given
to employer before embarking on it.
2. SIT-DOWN/SIT-IN:
This is type of strike involve workers being present at work
but literally not working.
3. CONSTITUTIONAL
This refers to actions that conform to the due procedure of
the collective agreement. The agreement usually specifies the
time and the procedure for conducting a strike by the workers.
 STRIKE ACTION
1. UNCONSTITUTIONAL
• This is a strike action that does not conform to the provisions
of the collective agreements or the relevant public policies.
2. UNOFFICIAL
• This type of strike is usually unauthorized by the union
leadership. This happens because the memberships have lost
confidence in the leaders and are therefore willing to exert
direct pressure on the employer without theauthorization of
leaders.
3. OFFICIAL
• These are strikes that are usually authorized by the leadership
of the union.
 DISCIPLINE & GRIEVANCE PROCEDURES
• Disciplinary & grievance procedures are frameworks which
provide clear and transparent structures for dealing with
difficulties which may arise as part of the working relationship
from either the employer’s or employee’s perspective.
• They are necessary to ensure that everybody is treated in the
same way in similar circumstances, to ensure issues are dealt
with fairly and reasonably, and that employers are compliant
with current legislation for handling disciplinary and grievance
issues.
DISCIPLINE & GRIEVANCE
• Similarities and/or differences
 DISCIPLINE
• The employer may set code of conduct/conditions of
employment which outline the ethical principles and
standards of professional conduct that guide employee
behaviour in their employment towards the employer or
fellow employees.
• Employee misconduct could range from continued
lateness, failure to follow a reasonable management
instruction, abuse of the organisation’s resources, bullying
behaviour or creating a hostile work environment, theft,
fighting to committing criminal offences. The more grave
offences may constitute gross misconduct.
 WHY DISCIPLINE PROCEDURES
• Let employees know what is expected of them
in terms of standards of performance or
conduct (& the likely consequences of
continued failure to meet these standards).
• Enable employers & employees agree suitable
goals and timescales for improvement in an
individual's performance or conduct.
 WHY DISCIPLINE PROCEDURES
(CONT)
• Identify obstacles to individuals achieving the
required standards (for example training needs,
lack of clarity of job requirements, additional
support needed) & to enable employers to take
appropriate action.
• Act as a point of reference for an employment
tribunal should someone make a complaint about
the way they have been dismissed.
• Try to resolve matters without recourse to an
employment tribunal.
 STAGES OF THE DISCIPLINE PROCESS
• If disciplinary action is to be taken, it should
usually have three main stages:
• Letter
• Meeting
• Appeal.
• There must always be a full & fair investigation
to determine the facts and to decide if further
action is necessary.
 POTENTIAL OUTCOMES
• No action
After the meeting, the employer may decide that no
action is necessary
• Warnings
Alternatively, the employer may decide to give the
employee a warning. An organisation’s policy should
outline exactly what warnings will be given, usually in the
order; verbal, written (first and second) and final.
• Demotion/Suspension
• Dismissal
 GRIEVANCE
• Accords an employee the opportunity to seek for
redress if their rights or privileges as an
employee have been violated either by a
decision/or indecision or the process of decision
making.
• Grievances generally involve the alleged violation
of a right to fair procedures and due process or
the alleged violation of a policy/legislation that
deprives the employee of a right or privilege.
 WHY GRIEVANCE PROCEDURES
• Provide individuals with a course of action if
they have a complaint (which they are unable
to resolve through regular communication with
their line manager).
• Provide points of contact and timescales to
resolve issues of concern.
• Try to resolve matters without recourse to an
employment tribunal.
 GRIEVANCE POLICY & PRACTICE
• Handling grievances informally
Individuals should be encouraged to discuss
ordinary, day-to-day issues informally with their
line manager. This helps concerns to be heard and
responded to as soon as possible.
• Handling grievances formally
Employees should also be aware of the formal
route open to them as provided for in procedures.