Collective Bargaining
BUS251 EMPLOYEE RELATIONS
Week 7 Collective bargaining
Collective bargaining
• Negotiation about wages & conditions of work • Between an employer & representatives of employees (usually a union) • Non union – work directly with MOM • Labour inspectors work with employers on back pay and termination issues • Hearing before Com of Labour if necessary under EA • With the aim of arriving at an agreement
Bilateral
• Usually no third party
• Can have a third party assist bargaining with conciliation, even arbitration
• Right to be represented
• Legal status of agreement (later slide) • Legality of behaviour of negotiating parties
• Bargaining processes & tactics may be regulated
Benefits
1. Provides a method to discuss issues on working conditions
2. Mutual assurance of agreement on issues
3. High labour costs impact consumers
4. Singapore –macro view –key consideration for NWC
Power balance
• Bargaining power tested in CB processes
• Collective action of employees gives power
• Ability of employer to stand down employees gives power • Size of employee group/employer can indicate power
Incidence of CB
• % of employees covered by collective agreements
• Industry prevalence differs
Approaches
1. Behavioral (strength in numbers /same for employers)
2. Economic (collective bargaining depends on labor market supply)
3. Legal – implementing agreements reached by government.
Conditions for CB
• Freedom of association (allowing free representation) • Representation - stability of union (exercise authority over workers, represent them) • Good faith bargaining
• • • • • Respect for other party Timely interactions Appropriate responses to proposals Transparent, honest & full disclosures No capricious behaviours
Legislative restriction
• Scope & coverage of bargaining
• Restrictions on what may be bargained about
• Also on what that are “non-negotiable”
• Recognise legitimate vis a vis non legitimate
Week 7 Collective bargaining
Collective bargaining
• Negotiation about wages & conditions of work • Between an employer & representatives of employees (usually a union) • Non union – work directly with MOM • Labour inspectors work with employers on back pay and termination issues • Hearing before Com of Labour if necessary under EA • With the aim of arriving at an agreement
Bilateral
• Usually no third party
• Can have a third party assist bargaining with conciliation, even arbitration
• Right to be represented
• Legal status of agreement (later slide) • Legality of behaviour of negotiating parties
• Bargaining processes & tactics may be regulated
Benefits
1. Provides a method to discuss issues on working conditions
2. Mutual assurance of agreement on issues
3. High labour costs impact consumers
4. Singapore –macro view –key consideration for NWC
Power balance
• Bargaining power tested in CB processes
• Collective action of employees gives power
• Ability of employer to stand down employees gives power • Size of employee group/employer can indicate power
Incidence of CB
• % of employees covered by collective agreements
• Industry prevalence differs
Approaches
1. Behavioral (strength in numbers /same for employers)
2. Economic (collective bargaining depends on labor market supply)
3. Legal – implementing agreements reached by government.
Conditions for CB
• Freedom of association (allowing free representation) • Representation - stability of union (exercise authority over workers, represent them) • Good faith bargaining
• • • • • Respect for other party Timely interactions Appropriate responses to proposals Transparent, honest & full disclosures No capricious behaviours
Legislative restriction
• Scope & coverage of bargaining
• Restrictions on what may be bargained about
• Also on what that are “non-negotiable”
• Recognise legitimate vis a vis non legitimate