Like any negotiation or problem solving process, collective bargaining starts with defining the problem. In order to solve a problem, it has to be understood at first. Stating what is lacking in the conditions of employment is not merely enough. Instead, try to find what causes the problem, and the more specific you can get, the better.


Guide questions for defining the problem:
- What seems to be the cause of the problem?
- Where is it happening? Is it prevalent only on one department or to the whole company in general?
- How does the problem happen?
- When does the problem happen?
- Who are the people affected by these problem? Is it confined to employees or to executives as well?
- Why do you think it continues to be a problem?


Source:
McNamara, 2007 (see bibliography)


2. Do Internal / external research


After understanding what the problem is, the next step would be to find out more about the problem. A best practice in negotiation, or in any form of formal communication for that matter, is to come prepared. Research starts with looking for information within the company, and then finding out more from external entities.


Internal Research


Researching within the company entails looking into the nature, and the industry of the company.


Nature:
- The nature of the company includes mission, vision and core value statements.
- Try to look and see if there is a connection or discrepancy between these and the problem.


Industry:
- Understanding the industry gives a general idea of why and how the business works
- Knowing the specific industrial standards for the problem (e.g. salary range) is very important in the collective bargaining process. This not only gives some referable data, but could also be a good tool for negotiation if there is a significant difference between the standard and the actual.
- Make sure you compare apples to apples. For example, in terms of hourly wages, there is a significant difference between the hourly rate of an in-house technician and a field technician. Hence, comparison of hourly rates in this case would be irrelevant.


. External Research


- Researching labor laws and existing collective bargaining agreements would only prove beneficial in collective bargaining.
- For example, in Canada, it is important to note that collective bargaining is now constitutionally protected.
- Find out about current inflation rates. This is because wage requests should always be kept within these rates.
- Understand the economic impact of future requests to the company, and if possible, try to make a comparative study of demands among companies of the same industry.


Source
De Silva, 1996 (see Bibliography)


3. Educate Peers


Collective bargaining is a group effort. As such, it is important to educate all those who are affected, the members and even the non-members of the collective, as they have the potential of joining the cause in light of the research that has been done. All members need to know all aspects of the research, so a consensus can be made on the demands and leadership of the negotiation process.


4. Create a negotiating team


In order to ensure efficiency in the bargaining process, a negotiating team is required. This is to guarantee proper representation for the collective. Also, the respective roles of the negotiating team members should be determined before the start of negotiations.


Source
De Silva, 1996 (see Bibliography)


5. Set objectives


�A party wishing to arrive at a satisfactory conclusion or arrangement through collective bargaining should first identify the objectives of the exercise� (De Silva, 1996)


Objectives are an integral part of collective bargaining. Setting objectives not only gives the bargaining process a direction, but it also sets up priorities for the several demands. Key things to note in setting objectives include:


i. Make sure that the affected employer is not rendered uncompetitive
ii. Wage increase demands should be kept within the rate of inflation
iii. A guarantee of industrial peace during the negotiation process


Source
De Silva, 1996 (see Bibliography)


6. Develop proposals / alternate proposal


The proposal is basically a tentative and tangible plan on how to attain the objectives. In this step, it is important to note priorities stated in the objectives, and make sure that proper emphasis are placed on these specific demands. To make sure that positive results are achieved at the end of the collective bargaining process, alternative proposals should also be prepared. These alternative proposals serve as a back-up if the company is not willing to fulfill the initial demands of the group. The purpose of this is simply to help cushion the negative impact of the problem in question, a compromise of sorts. For example, if the company does not agree on increasing salaries, they might be more amicable to increase benefits like a dental plan.


Source
De Silva, 1996 (see Bibliography)


7. Select a strategy


The collective bargaining team should have a strategy before negotiating with the employer. Listed below are some strategies that can be adopted:


- Na�ve model
In this model, the union begins with a tough demand while the firm starts with a low offer. If your original demand is rejected, reduce your demand. The firm will increase its offer, thus continue to do so until your demands correspond with the company�s offer.


- War of attrition
This model implies no compromise


- Signaling model
Make your initial offer. Either the company will accept or reject it. As time passes, the company will make their offer. This time that passes signalizes how badly the firm wants to reach a settlement. If they make an offer right away it signalizes that the demand is high, while a longer time span before their offer signalizes the demand is low.


- Screening model
This strategy involves making a sequence of offers with fixed time intervals. The time in between each offer is constant.


Source
De Silva, 1996 (see Bibliography)


8. Negotiate


As the title implies, this step suggests that the negotiating team approach the employer and talk about their objectives and demands. In this step, it is very important to keep all members of the collective group, and not only the negotiating team, updated on the discussions with the employer.


9. Sign an Agreement


When the negotiating party and the employer have agreed on certain terms, two courses may be adopted:


- Write a letter to collective group describing the details of the agreement and, on confirmation, prepare a draft agreement
- Alternatively prepare a draft agreement for the collective group. This is recommended because there is less room for error since the negotiating party itself is writing down the details of the agreement. This therefore prevents further negotiations between the preparation of the draft agreement and the approval.


After creating a draft agreement, make sure that both parties have proper interpretation of the clauses. If there are misinterpretations, rewrite the clause so that proper interpretation is achieved. Do all of these before signing the agreement.


The contents of the agreement depend on what is agreed upon, but the ones listed below are examples of general application:
- The date the agreement starts
- The duration of the agreement � when it will terminate, how it may be terminated
- A definition of terms to prevent ambiguity
- The procedure for settling disputes such as interpretation, etc.
- Consequences for breach of contract
- Regarding wage increases: a conversion formula or scale for the agreed wage increase


Source
De Silva, 1996 (see Bibliography)


10. Enforce the Agreement


Enforcing the terms of agreement does not only lie within the employer, but to the employees as well. Proper education on the terms of agreement should be adopted for all those who are affected, as any deviation or misinterpretation of any of its clauses may lead to severe consequences for both parties.