Question

Explain how management and unions negotiate contracts.

Answer 1

When employees of a company vote for unionization, the process for contract negotiations, also referred to as the collective bargaining process begins. Collective bargaining refers to the negotiation process between the company and union representatives. The goal is for company and the union to reach a contract agreement, which is put into place for a specified time frame; and once this time is up they will negotiate on new contract. It aim to unites workers around mutual targets and enables them to combine their efforts to negotiate for better working conditions, wages, and safety, management rights, and benefits

There are mainly five steps in negotiating contracts:

1) Preparing the objectives by negotiating team: Establishment of objectives for the negotiation and reviewing the old contract are significant components to this step. Before presenting their proposal, the union have to undertake research and consider factors such as the cost of living, the company’s financial capability, and its budget

2) Time limit for negotiations set ground rules: Deciding upon on how the time lines will be set for the negotiations

3) The union and management both present its proposal: The effective proposal is to come for negotiation with a “let’s make this work” attitude

4) Discussion on the proposals: Representatives from the management and union meet and discuss the proposal

5) Negotiations settled and contract written: A new contract is written and the members of union vote on it's acceptance.