What are the preparations needed for a successful wage agreement negotiations?
From India, Bangalore
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3From India, Bangalore
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Hi,
I am advising you considering you have received a charter of demands from your union.
Before proceeding with negotiations with the union, follow the steps outlined below:
1. Read the demands made by the union clearly and discuss them with top management.
2. For each demand, establish a counter demand from management.
3. Refer to wage agreements in industries similar to yours to gain insights.
4. Conduct a financial analysis to understand the impact post-agreement. Maintain at least three viable financial options from the management perspective and initiate negotiations accordingly.
5. Develop production norms and outline general terms and conditions related to leave, holidays, welfare, strike, discipline, and more.
6. Promptly accept demands concerning general conditions that are approved by management. This approach can facilitate a positive start to negotiations and assist in counterstriking on financial aspects.
7. Seek legal advice on the terms and conditions specified in the management's demands.
Remember, an agreement cannot be reached unless both parties allow room for negotiation.
I have highlighted key points while not covering all aspects comprehensively.
Arun J
From India, Hyderabad
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I am advising you considering you have received a charter of demands from your union.
Before proceeding with negotiations with the union, follow the steps outlined below:
1. Read the demands made by the union clearly and discuss them with top management.
2. For each demand, establish a counter demand from management.
3. Refer to wage agreements in industries similar to yours to gain insights.
4. Conduct a financial analysis to understand the impact post-agreement. Maintain at least three viable financial options from the management perspective and initiate negotiations accordingly.
5. Develop production norms and outline general terms and conditions related to leave, holidays, welfare, strike, discipline, and more.
6. Promptly accept demands concerning general conditions that are approved by management. This approach can facilitate a positive start to negotiations and assist in counterstriking on financial aspects.
7. Seek legal advice on the terms and conditions specified in the management's demands.
Remember, an agreement cannot be reached unless both parties allow room for negotiation.
I have highlighted key points while not covering all aspects comprehensively.
Arun J
From India, Hyderabad
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Hi,
There are five core steps to be follow
1. Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. In this phase both the employer’s representatives and the union examine their own situation in order to develop the issues that they believe will be most important. The first thing to be done is to determine whether there is actually any reason to negotiate at all. A correct understanding of the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required.
2. Discuss: Here, the parties decide the ground rules that will guide the negotiations. A process well begun is half done and this is no less true in case of collective bargaining. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached.
3. Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. In a word, this phase could be described as ‘brainstorming’. The exchange of messages takes place and opinion of both the parties is sought.
4. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when ‘what ifs’ and ‘supposals’ are set forth and the drafting of agreements take place.
5. Settlement: Once the parties are through with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.
From India, Mumbai
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There are five core steps to be follow
1. Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. In this phase both the employer’s representatives and the union examine their own situation in order to develop the issues that they believe will be most important. The first thing to be done is to determine whether there is actually any reason to negotiate at all. A correct understanding of the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required.
2. Discuss: Here, the parties decide the ground rules that will guide the negotiations. A process well begun is half done and this is no less true in case of collective bargaining. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached.
3. Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. In a word, this phase could be described as ‘brainstorming’. The exchange of messages takes place and opinion of both the parties is sought.
4. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when ‘what ifs’ and ‘supposals’ are set forth and the drafting of agreements take place.
5. Settlement: Once the parties are through with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.
From India, Mumbai
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Dear Nravimsr,
I don't feel that Arun and Aditya have left anything for anybody to add. Still, I would like to say that while negotiating, use the formula of "give and take." Arun has mentioned production norms. Keep in mind, productivity is more important than norms to sustain in competition.
Thank you.
From India, Mumbai
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I don't feel that Arun and Aditya have left anything for anybody to add. Still, I would like to say that while negotiating, use the formula of "give and take." Arun has mentioned production norms. Keep in mind, productivity is more important than norms to sustain in competition.
Thank you.
From India, Mumbai
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As Shri Koregaonkar rightly suggested, increased productivity should be the basis for any increase in wages/salary. Productivity should be at least equal to or more than the competitor (in the industry) in order to remain in the highly competitive market.
From India, Madras
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From India, Madras
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Hi,
You have a lot of suggestions, and I would not like to add further confusion. However, I would like to cover the points which are not there.
1) If you have received the Charter of Demands (COD), evaluate the Charter and the Demands made by the Union.
2) You can find out what exactly is demanded in wages and other benefits and their Cost to Company.
3) Your Company's financial position now and 3 years later must be known, and you should keep the paper handy, including the forecast of the Order position, competitors' data, etc.
4) You should be ready with Wage Data of similar neighboring Industries or your Competitors' data of Wages and other benefits.
5) It is always "Give and Take," hence you must be prepared with Management Demands, i.e., Productivity, Discipline, Innovations, Incentive if any.
6) Negotiation Teams should be of equal number, which includes Production, Safety, Finance, Quality, Warehouse, etc. Of course, HR should lead it.
7) The opening meeting should be a person who can explain the Company's Financial Position, Competition, Future of Company, etc.
If it is under Conciliation, you will have to take a lot of precautions as the Conciliation officer normally gets the final figure from you and tries to close it +- to that level, which is normally more than your final figure and for the Union, that will become the base figure. So be careful.
Thanks and best wishes.
Ravindra Chaubal
Sr. Manager - HR
From India, Delhi
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You have a lot of suggestions, and I would not like to add further confusion. However, I would like to cover the points which are not there.
1) If you have received the Charter of Demands (COD), evaluate the Charter and the Demands made by the Union.
2) You can find out what exactly is demanded in wages and other benefits and their Cost to Company.
3) Your Company's financial position now and 3 years later must be known, and you should keep the paper handy, including the forecast of the Order position, competitors' data, etc.
4) You should be ready with Wage Data of similar neighboring Industries or your Competitors' data of Wages and other benefits.
5) It is always "Give and Take," hence you must be prepared with Management Demands, i.e., Productivity, Discipline, Innovations, Incentive if any.
6) Negotiation Teams should be of equal number, which includes Production, Safety, Finance, Quality, Warehouse, etc. Of course, HR should lead it.
7) The opening meeting should be a person who can explain the Company's Financial Position, Competition, Future of Company, etc.
If it is under Conciliation, you will have to take a lot of precautions as the Conciliation officer normally gets the final figure from you and tries to close it +- to that level, which is normally more than your final figure and for the Union, that will become the base figure. So be careful.
Thanks and best wishes.
Ravindra Chaubal
Sr. Manager - HR
From India, Delhi
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Draft wage agreement.pdf