Question

Question from - Human Resources Management - Chapter 9 " Collective Bargaining and Labour Relations"

A. Explain the three levels of decisions that are involved with labour relations.

B. Assume that management and a union are negotiating a collective agreement. During the negotiation process, the two parties are unfortunately unable to reach a contract. Identify and explain three neutral third-party actions that could be used to resolve the conflict.  

C. From the actions identified above, which is the most formal and produces a binding decision?

Please answer briefly .

Answer 1

A. The three levels of decisions that are involved with labour relations are:

1. Level One - Union Organizing: In this phase, a group of employees within an organization form a union and organize other workers into a local labour union and target an employer to negotiate their concerns with.
2. Level Two - Negotiating Labor Agreement: This phase constitutes collective bargaining and involves the process of the employer and employees negotiating towards an agreement that is mutually acceptable to both the union and management.
3. Level Three - Administering the Agreement: During this phase, the mutually accepted agreement is implemented and administered according to the labour agreement.

B. If the management and union are unable to reach a mutually agreeable contract during collective bargaining, then involving a neutral third party can sometimes prove to be successful.

Neutral third-party actions that could be used to resolve the conflict in such a situation are:

1. Mediation: The main objective of mediation is for a neutral third party to help and aid the disputants to come to a unanimous agreement. Mediation can help identify and implement a resolution that is sustainable, voluntary, and nonbinding.
2. Arbitration: In arbitration, the neutral third party acts as a judge who is made responsible for solving the dispute between both the parties. The decisions of the arbitrators cannot be appealed.
3. Litigation: It is civil litigation that involves taking the matter to court where a defendant faces off against a plaintiff in the presence of a judge or jury. This is the most common and effective way of dispute resolution.

C. From the dispute resolution actions identified above, the process of 'Litigation' is the most formal and produces a binding decision. This is because the judge or the jury weighs evidence before making a ruling and conveys the information in hearings. The trials are set on the public record. Thus, the decisions so made from Litigation are legally binding and enforceable by the law.