What are the preparations needed for a successful wage agreement negotiations?
From India, Bangalore
3From India, Bangalore
Hi,
I am advising you considering you have got charter of demand from your union.
Before going for negotiations with union follow following steps.
1. Read the demands made by the union clearly and discuss with top management.
2. For each demand set a counter demand from management.
3. Go-through/refer with wage agreement made by same nature of industries around your company.
4. Make a financial calculation which will affect after agreement, & keep at least three financial options which are suitable, from management point of view & start negotiations from first.
5. Prepare production norms & general terms & conditions related to
1) Leave 2) Holidays 3) Welfare 4) Strike 5) Discipline and so on
6. Quickly accept demand which are related to general conditions & permitted by management to accept, This will give positive start to negotiation & can help in counterstrike for management on points related with finance.
7) Take an advice of Lawyer on terms & conditions mentioned in the management demand.
No agreement can take place unless & until both parties keep free space for negotiation.
I have not covered all aspects only highlighted points I have tried to cover.
Arun J
From India, Hyderabad
I am advising you considering you have got charter of demand from your union.
Before going for negotiations with union follow following steps.
1. Read the demands made by the union clearly and discuss with top management.
2. For each demand set a counter demand from management.
3. Go-through/refer with wage agreement made by same nature of industries around your company.
4. Make a financial calculation which will affect after agreement, & keep at least three financial options which are suitable, from management point of view & start negotiations from first.
5. Prepare production norms & general terms & conditions related to
1) Leave 2) Holidays 3) Welfare 4) Strike 5) Discipline and so on
6. Quickly accept demand which are related to general conditions & permitted by management to accept, This will give positive start to negotiation & can help in counterstrike for management on points related with finance.
7) Take an advice of Lawyer on terms & conditions mentioned in the management demand.
No agreement can take place unless & until both parties keep free space for negotiation.
I have not covered all aspects only highlighted points I have tried to cover.
Arun J
From India, Hyderabad
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
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
Dear Nravimsr,
I don't feel that Arun and Aditya has left anything for anybody to add. Still I would like to say that while negotiating use the formula of "give & take".
Arun has mentioned about production norms. Mind well, productivity is most important than norms to sustain in competition.
From India, Mumbai
I don't feel that Arun and Aditya has left anything for anybody to add. Still I would like to say that while negotiating use the formula of "give & take".
Arun has mentioned about production norms. Mind well, productivity is most important than norms to sustain in competition.
From India, Mumbai
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
From India, Madras
Hi,
You have lot many 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 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 Forecast of Order position, Competitors data etc.
4) You should be ready with Wage Data of similar neighbouring 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. Prductivity, Discipline, Innovations, Incentive if any.
6) Negotiations Teams should be of equal no, which includes Production, Safety, Finance, Quality, Warehouse etc.ofcourse HR should lead it.
7) Opening meeting should be a person who can explain Company's Financial Position, Competition, Future of Company etc
If it is under Conciliation, you will have to take lot of precautions as Consiliation officer normally get the final figure from you and ty to close it +- to that level, which is normally more than your final figure and for Union that will become base figure. So be careful.
Thanks and best wishes.
Ravindra Chaubal
Sr. Manager - HR
From India, Delhi
You have lot many 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 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 Forecast of Order position, Competitors data etc.
4) You should be ready with Wage Data of similar neighbouring 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. Prductivity, Discipline, Innovations, Incentive if any.
6) Negotiations Teams should be of equal no, which includes Production, Safety, Finance, Quality, Warehouse etc.ofcourse HR should lead it.
7) Opening meeting should be a person who can explain Company's Financial Position, Competition, Future of Company etc
If it is under Conciliation, you will have to take lot of precautions as Consiliation officer normally get the final figure from you and ty to close it +- to that level, which is normally more than your final figure and for Union that will become base figure. So be careful.
Thanks and best wishes.
Ravindra Chaubal
Sr. Manager - HR
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Draft wage agreement.pdf
Vehicle Agreement Employees.jpg
Confidentiality Agreement for Employees.doc