Page 217 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes from contracts in force elsewhere in the country, from pronouncements of employers, from
public surveys and from studies and reports brought out by employers' associations.
The personnel department sets the objective which are proposed to be achieved through
negotiation and which have to be necessarily related to anticipated trade union demands. Before,
however, negotiations commence, the top management's approval must be obtained on:

(1) The specific proposals of the company, including the objectives of the negotiations;
(2) An appraisal of the cost of implementing the proposals if they are accepted by the two
parties; and

(3) An approval in principle of the demands of the trade union over which bargaining has to
be made, the demands which are acceptable to the company and the demands which
cannot be accepted by it.
8.7.2 Principles of Negotiation

An interesting statement of principles and policies to be followed in negotiation has been
provided by Arnold F. Campo. He describes some rules for guidance of both union and
management, as follows:
(1) Be friendly in negotiation, introduce everybody.
(2) Be willing to listen.

(3) Give every one an opportunity to state his position.
(4) Always keep in mind the right and fair thing to do.
(5) Don't try to guide the discussion along a straight line directed to solving problems.
(6) Define each issue clearly and discussing in the light of all available facts.
(7) At all times search only for correct and real solution.

(8) Avoid short precise.
(9) Consideration should be given to fatigue and mental attitude in determining the length of
session.

(10) Both parties should respect the rights of public at all times.

8.7.3 Procedure and Tactics of Negotiation

The Negotiations may be undertaken by a representative of each party of by a committee or by
line or staff personnel. The negotiation committee may be composed of from three to four
members. As far as possible, a committee should be small, for "large committees become
disorderly; and they are more inclined to concentrate on a discussion of industrial grievances or
problems of interest to one group rather than to the union as a whole". The management
committee, which has a chief spokesman or principal negotiator, works as a team; the committee
plans the negotiations, while the chief negotiator evolves a strategy of action and of the tactics
to be adopted during the negotiations.
Generally speaking, negotiations are best done if both the parties do their homework well; that
is, they should come to the bargaining table equipped with adequate information, as also a
willingness to make a quid pro quo approach.

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