Lecturer:K.

Nhlovu Mutasa

Subject:Employee Relations

COLLECTIVE BARGAINING IN THE WORKPLACE

The essence of any collective organization of employees is that an individual employee is

literally powerless relative to the employer. Hence through membership to collective
organizations such as trade unions, an employee is able to compel an employer towards a
desired\or required status quo in regards to conditions of employment. This can effectively be
achieved through internal channels of negotiations such as collective bargaining.

Definition
Collective bargaining refers to a process of negotiation between employers and employees(both
parties being represented)in regards to conditions of employment.This is a collective
arrangement under which wages and conditions of employment are generally decided by
agreement negotiated between employers and employees.

Michael Salamon(1992:309)defines collective bargaining as: ‘the method of determining terms

and conditions of employment which utilizes the process of negotiation and agreement between
representatives of management and employees’.

The confines within which such agreements are made internally is referred to as the bargaining
unit.
The collective agreement on the other hand is the final written agreement that both parties agree
to upon negotiations

Nature of collective bargaining

The essential characteristic of collective bargaining is that employees do not negotiate

individually, and on their own behalf, but do so collectively through representative organizations
such as a trade union organization, Furthermore ,it is a negotiation process whose success and
resolve depends on the bargaining strengths of the negotiating parties to it.Strengths in this case
depends on the bargaining strategies that either party may adopt or employ
This process provides a formal channel through which the differing interests of management and
employees may be resolved on a collective basis. This process can only be effective and
functional if:

The collective bargaining process is a conflict resolving mechanism that attempts to secure
industrial harmony in times of collective disputes between employers and employees. It is
however important to note that, there are a number of factors involved and among these include:
 Contextual factors such as economy that would result in increase in living costs-
negotiation in this point revolves around movement in retail prices as it has a direct
bearing on wage purchasing power.

 Prosperity of industry such as an organizations financial position.

 Comparative norms-were the type of work carried out in one different industry is similar
to the wage rate which one is given

 Procedural matters and other work related issues.

The function of collective Bargaining

The Major functions are listed as follows

I. The Market or Economic function

II. The Political or Government function

III. The Decision Making function

The market or Economic Function of Collective Bargaining

 This function is referred to as economics or market in the sense that through the process of
collective bargaining, the labor market value at which labour shall be engaged is determined.
This process furthermore economically empowers the labour force in case of wage or enforced
bargained substantive agreements. For example, if employees through a relevant representative
body such as a trade union, demand for a 20% salary increment and it are subsequently granted
in their favor after the bargaining process, then this function has served to economically
empower its membership with a 20%monetary value of their previous salaries. Hence the market
value of their labor is increased by 20% of the initial value.
The Decision Making Function
This function reflects the fact that collective bargaining is one form of employee participation. It
provides an employee through relevant representations and consequent negotiation or bargaining
processes to participate and influence managerial decisions that affect their work lives. Such
decisions will border around the scope and content of the bargaining process: the content in this
case being:
(a)Substantive Issues: covering matters surrounding monetary /financial aspects of the
employment relationship.Eg wages and salaries. Allowances, etc. These tend to be very central
in todays employment relations.
(b)Work arrangements: these issues border all non monetary aspects of onesjob, either
physical or non physical and these will include among other things:Health&Safetystandards.
General physical work environment, matters of ergonomics as well as workloads.
©Procedural issues: these issues cover matters relating to workplace procedures that an
employee is subjected to as an obligatory and consensual arrangements. Procedures guarantee
consistency in administering or undertaking sensitive or complicated work based
activity.However,procedural focus in this case include, procedures patterning to the
following:Discipline,Grivances and any applicable employment concerns requiring consistent
protocol.
NOTE:Hence,if any of the aforementioned are in fact or perceived to be inadequate, then
they fertilize ground for work place grievances which if not adequately and timely
addressed, will lead to industrial disputes or dis harmony

The political or Government Function

Like in government chambers when legislators debate and enact legislation,the bargaining
process equally serves the same functions in that the bargaining unit which comprises of
representatives of either parties(,i.e,Management for employers and trade union officials on the
other),who engage in active debate and negotiation, and there after come up with an agreement
whose contents are consequently binding to either party and their representatives(or
constituencies).This agreement likened to law is called the Collective Agreement(representing
law within the organization)

Collective agreements according to Zambian legislation(The industrial and labor relations

act CAP 269 of the laws of Zambia)
Upon reaching an agreement(i.e. in the light of conflict) the two parties will sign a written
document as a correct record of what has been agreed. This is signed by the representatives of
the parties and this document is known as a collective agreement -collective in that the
decision was made with the concern of all parties.
The act provides that the date on which the agreement comes into effect be clearly outlined as
well as stating the methods, procedures, amendments, replacements or terminations of the
collective agreement ref:section 68-Part III.

Section 69 specifically outlines the obligations of the bargaining unit. It is legal requirement that
the parties to a collective agreement should lodge five copies of the C.A.with the commissioner
within fourteen days of signing. The commissioner is to submit the document to the minister of
labor and social security for approval. Once approved the minister will direct the CA to be
registered. The approved CA becomes effective on the date of approval or on the date specified
on the document. The collective agreement remains enforced for a specified period and is
binding to both parties to it. (.ref:section 70 and 71).
A collective agreement negotiated and concluded by an joint council should be notified in the
gazette .Furthermore, a collective agreement of this nature shall bind every employer and
employee engaged in the industry concerned except for non members and those who were not
party to it.

In situations where the bargaining unit requires to extend the period during which the existing
agreement is to remain in force ,an application should be made to the minister not less than thirty
days and not more than sixty days before the expiration of the existing
collective agreement .ref :section 73.An approved extension of a joint council CA shall be
notified in the gazette.

A recognition agreement on the other hand is a document that serves to establish legal
recognition of the aforementioned parties constituting the bargaining unit :(in this case the
employer and employee representatives).The bargaining unit is the forum constituting
representative parties to the bargaining/negotiation process at the level of the undertaking or
organization(Eg.Evelynhone college management and their union opponents)

THE OUTCOME/CONTENT OF COLLECTIVE BARGAINING

This refers to the issues being bargained for. The content represents what comes out of the bargaining
process. In this case, threeoutcome are expected and these are issues that comfortably cover all aspects of
the employment relationship. These are:
 1. Substantive issues

2. Procedural issues

3. Work arrangements

SUBSTANTIVE ISSUES

Substantive issues refer to all matters bordering around financial or monetary issues in the employment
relationship. The economic nature of this relationship is primary focus. Employees provide a service in
form of all compensable attributes such as skills, knowledge, experience, education etc. to the employer
for their use(i.e. The employer) to achieve their goals. This is in return exchanged for a monetary value in
form of a wage, salary, allowance, commission or any other deserving monetary reward.Therefore,labor
is provided by the employee in exchange for an agreed financial reward or benefit(an agreed
entitlement).If these entitlements and financial obligations are in any way encroached by either party
thereby leading to a dispute ,then the parties shall bargain substantially specifically addressing financial
matters. For instance, Such encroachment would include, inadequate pay, delayed salaries, allowances
etc.

PROCEDURAL ISSUES

This content of bargaining primarily focuses on matters relating to work place procedures and guidelines
that comprise and cover the employment relationship. If any of these procedures may be a source of
grievance for either party ,then the bargaining process is the vehicle through which such procedural
matters can be resolved. Common workplace procedures are those that affect ones work life and among
these include, grievance procedure, disciplinary procedure as well as procedures patterning to
redundancy.

WORK ARRANGEMENTS

Work arrangements cover all work related attributes that affect an employee’s ability to perform and
execute their duties. This content normally seek to address task related attributes including physical work
conditions(eg.hygiene,safety,etc),workloads. Job design, as well as equipment .This ensures that the job
holder is secured against job related exploits that may cause worker dissatisfaction or grievances. Such
are the causes of non-monetary grievances.

GRIEVANCES AND DISPUTES IN THE WORKPLACE(K.Mutasa)

A grievance is a formal expression of individual or collective dissatisfaction primarily but not
exclusively in respect of the application or non application of collective agreements, managerial
policies and actions or custom and practice.

The terms grievance and dispute are used to denote a range of situations resulting from employee
dissatisfaction and it is rather difficult to draw a precise boundary between grievances and
disputes.

A grievance may be seen as a formal complaint by an employee which alleges that some aspect
of the collective agreement has been violated. Where the organization has cause to complain
about the behaviour of an employee, the disciplinary procedure is used. Where the employee has
cause to complain about the organization the grievance and dispute procedures are used.

Causes of grievances

Causes of grievances center around two major issues, monetary issues and work issues. These
causes are mainly found in the manner in which management implements operational decisions.
They can be divided into the following:

 Application or non application of the collective agreement, e.g. violation of the agreement,
disputes over the meaning of an agreement, etc.

 Changes in the work situation - most work situations are likely to involve some degree of
change and adaptation which may create a sense of insecurity and instability.

 Grievances may arise due to management’s prerogative to make decisions unilaterally, i.e.
without consulting the workers. The raising of a formal grievance or dispute implies that the
issue is considered by the employees to be subject to negotiation.

 The nature of the social technical system where dissatisfaction can arise from structural
factors associated with the relationship of the employees to their work and management. The
system may lead employees to feel that they have little direct control over the physical work
processes they are required to operate and they may seek to balance this loss by gaining more
formal control over the managerial decisions which determine the day to day work situations,
e.g. changes in work speed, quality of production, etc.

 Most employees have a general need to achieve some form of satisfaction from their work
situation such as financial rewards, status, self development or the intrinsic quality of the
work they perform. The removal of this satisfaction by management may give rise to
grievances and disputes.

The importance of the Grievance Procedure

  All employee complaints and dissatisfaction are in actual practice not satisfactorily
settled by the supervisor.

 It brings employees problems to the attention of higher management.

 A grievance handling system serves as an outlet for employee frustrations and discontent.

 The existence of an effective grievance procedure reduces the likelihood of arbitrary

action by supervisors because they know that the employees have a right to protest
against such behaviour and make it heard by management.

 The very fact that employees have a right to be heard and are actually heard helps to
improve their morale.

The Essential Features of a Grievance Procedure

 It should be in writing
 It should specify to whom the employees may take a grievance in the first instance
 It should state where in the event of the grievance remaining unsolved the employee
should then address his complaint.
 It should specify the time limit within which the aggrieved employee can appeal.
 All meetings to discuss the grievance must be properly minuted and a record of
proceedings sent to all parties.

Handling grievances

The grievance procedure is structured and tailor made to provide a fair hearing for employees at
progressively higher levels of management. It comprises the following steps:

 An employee who believes that his rights have been violated contacts his shop steward
and together they discuss the problem with the supervisor.

 If an agreement cannot be reached at the level of the supervisor, or if the employee is not
satisfied the complaint is taken to step 3.

 This is where middle management and the union committee meet

 If the employee is not satisfied it is referred to top management and top union leadership.

 If this step fails then outside arbitration is sought.