Chapter 4 ▯ Negotiating a Collective Agreement
1. Economic Model
a. Supply and demand will determine the price of labour in terms of wages
and benefits and the quantity of workers required.
b. Union will not be able to raise wages without creating economic
inefficiencies and putting the employer out of business unless the union is
able to cut back the supple of workers or increase the demand for a
i. Restrict entry of new workers
ii. Artificial limit on the speed at which work is done
2. Contract Zone Model
a. Settlement in the range between the unions strike point and the
management strike point.
b. If they will take a strike rather than being within a rage of each other, there
is not contract zone.
3. Bargaining Power Model
a. If a settlement will fall closer to the unions or the managements side of the
contract zone will depend on the parties perceptions of their bargaining
power and the willingness of the party with greater bargaining power to
use its advantage.
i. Union ▯make it hard for management to say NO
2. Picket lines
3. Strike pay out
4. Getting money from other unions
ii. Unio ▯make it easier for management to say YES
1. Extending demands across industry to they don’t loose
2. Lowering demands in response to managements offers
iii. Employe ▯harder for a union to say NO
1. Stockpiling its products before a strike
2. Continuing production during strike
3. Hiring replacement workers
4. Transferring production to other plants
iv. Employer ▯easier for union to say YES
1. Improving its offer in response to unions demands
4. Behavioural Models
a. Emphasizes that negotiations take place between people and focuses on
the human aspect of interaction
i. DISTRIBUTIVE BARGAINING
1. One party attempts to get the other party to agree to its
demands or a least a portion closer to its demands
ii. INTEGRATIVE BARGAINING
1. Both parties benefit from the result of the negotiated
iii. INTRAORGANIZATIONAL BARGAINING 1. Occurs within the management and union structure
iv. ATTITUDINAL STRUCTURING
1. Looks at the relationship between the parties and make
positive relationships to benefit both parties in bargaining.
5. Prescriptive Models
a. Provide a method or remedy to improve the process and results of
b. Less conflict and still provide potential benefits
i. Separate the people from the problem
ii. Focus on interests, not positions
iii. Invent opportunities for mutual gain
iv. Insist on objective criteria
6. Strategic Models
a. Understanding the strategic trends in labour negotiations, not a
prescription got the conduct of the parties.
i. Fostering change ▯promote cooperation
ii. Forcing change ▯ enhancing bargaining power
iii. Escaping unionized work environment ▯make unionization
Notice to Bargain
• If the union fails to do so within 60 days, it is sleeping on its rights, unless both
parties agree to extend the deadline.
• Parties may agree that if neither party gives notice to bargain, the contract will be
o If they don’t agree on this, employer may apply to terminate the unions
Structure of Negotiations
• Pattern Bargaining: The union uses negotiations with a particular employer as a
template for negotiations with other employees.
• Demand the same agreement
• Works best when all industry competitors are unionized and the imposition of a
pattern does not create competitive disadvantages
o Master agreement ▯responsibilities, hours, promotions, leaves
o Local agreements ▯job classification, seniority, overtime
Bargaining Committees: Composition and Selection
• Special election
• Executive of the union may negotiate
• Certain number of the members on a union committee must come from a
particular geographical area
• Certain number from a particular job classification
• Professional negotiator • Labour lawyer
• CEO must NOT be on the committee
• Professional negotiator
• Person who understands financials
• Human resources professional
• Shopfloor supervisors
Demands (Proposals) ▯ union will have a demandsetting meeting where demands are
debated and voted on by the members.
3 Main Sources of Data
1. Settlement Information
a. Negotiations update
b. Selected settlements
c. Wage settlements by industry
d. Monthly settlements
2. Contract Clauses
3. Inflation Statistics
Costing of Proposals
• Approximate costing to determine if it can afford to agree to union’s demands.
• Be careful not to omit impacted costs
• Be aware of different impacts of percentage increases versus constantdollar
Caucus Meetings ▯ within 15 days after the notice to bargain. Spend considerably more
time in caucus than in facetoface negotiations.
• Union outlines demands and give rationale ▯ “tabling the demands”
• Separate into monetary and non monetary
• Include the name of an arbitrator who will hear disputes during the term of
• Management may not care if a union puts it all into a wage increase or divides it
between wages and benefits as long as total doesn’t exceed a set limit.
• Proposal that is off the record or “without prejudice”
• Negotiations will go right to the last minute so neither party doesn’t think the
other didn’t try hard enough. • If employers thinks that the union negotiating team is not reflecting the workers
which it rejects employers offer, employer has the right to force a finaloffer vote
on the employers final offer.
o Only available if there is a right to strike.
• “Acceptance to their principles”
• Ratification vote must be held on the tentative agreement
• More than 50% of those voting indicate that they are in favour of the tentative
Good Faith and Bad Faith Bargaining
• Concessions consists of reductions in or limitations on the provisions in the
collective agreement negotiated by the union in prior rounds of negotiation.
• HARD bargaining is NOT bad faith bargaining
• Bad Faith
o Refusing to meet
o Refusing to recognize union
Attempts to bargain directly with employees
o Not giving the negotiating team power to bargain
o Surface bargaining
A delaying tactic
Bargain without the intention of concluding
Must act with the intent of concluding, revising or renewing an
o Concealing important information
The employer is not required to disclose private financial
information or trade secrets
Misrepresentation for an employer not to reveal a decision it has
already made which may have significant impact, such as a plant
o Deliberate provocation
Tabling positions intended to provoke a breakdown in negotiations.
• EG a proposal making the unions give up right to grieve.
o Refusing to justify a position (unjustifiable changes in position)
Once you table a proposal, it is hard to increase without looking
like bad faith, unless you are responding to the other party.
A change in bargaining motivated by a change in the law is
o Refusing to make every reasonable effort to enter into a collective
agreement ThirdParty Assistance
• Before they can do strikes or lockouts
• Can be involved before, during or after strike or lockout
a. Assist them in an agreement
b. Has 14 days