Collective bargaining is an indispensable part of the theory of social partnership. This encapsulates the way to which labour relations thrive. Social partnership in this context may be defined as a partnership between organised labour and organised employer organisations.

This is a framework intended to preserve non-confrontational procedures in the settlement of differences which may come up between employees and employers.

Union consultations normally factor the minimum wage as an element in their negotiations. They espouse the underlying dynamics used in the calculation of the minimum wage.

Significantly, the national minimum wage, which is negotiated annually by the National Tripartite Committee, serves as a yardstick to Collective Bargaining Agreement discussions by the Unions.

Presently, the practice of negotiating for the level of minimum wages for the public sector gyrates around the principle of living wage in which the domestic economic inflation element acts as a referent scale.

In this case, efforts are made to increase the existing minimum wage by such an amount that would improve the standard of living which is determined by people’s purchasing power of their incomes.

In fact, in setting the daily minimum wage, the tripartite committee generally deliberates on economic factors such as the projected total wage bill expressed as a percentage of the projected Gross Domestic Product (GDP) in the case of government enterprises and for private businesses, their capability to pay as mirrored in their operational cost structure.

Again, economic indicators such as GDP growth rate estimated for, in the year, and the expected inflation rate for the year are all considered.          

Conditions necessary for Collective Bargaining

Acknowledgement of Trade Unions

The presence of freedom of association does not automatically guarantee the acknowledgement of unions for bargaining drive. The known criteria is to acknowledge the most representative union. However, there is always the norm to find out what conditions are used and by whom, may vary from state to state.

In cultures where there are many trade unions, some already laid down standard guidelines within the industrial relations structure are used to resolve when and how a union should be acknowledged for collective bargaining reasons.

In some structures, the matter would be decided by demanding for the union to have not less than a specified percentage of workers in the organisation or class in its membership.

Multiplicity and freedom of association

It is necessary that conditions exist to enhance labour relations. Definitely a pluralistic society in a political system recognises the existence of pressure groups such as unions, political parties, religious groups and business associations.

These groups have particular interests with which a government can dialogue with the aim of carrying out conciliations by making concessions.

Pluralism denotes a platform or a stratosphere of bargaining between these groups and between one or more of them on one hand and the government on the other. This atmosphere makes it possible to identify these groups as checks and balances that safeguard democracy. 

Thus pluralism according to Silva (1996) as expounded by Clegg (1960) is that “men associate together to further their common interests and desires; their associations exert pressure on each other and on the government; the concessions which follow help to bind society together, thereafter stability is maintained by further concessions and adjustments as new associations emerge and power shifts from one group to another”.

Good Faith

Parties to the collective bargain must negotiate in good faith. Collective bargaining is possible only if the parties bargain in good faith. Otherwise, there will only be the process of bargaining without any tangible result.

In fact, Act 651, section 97 of Ghana’s labour law admonishes the bargaining parties to act in good faith. Good faith is only attainable where certain characteristics are shared among workers and employers, and their organisations.

This comes on the belief and faith on the importance of the cooperation amongst the parties through discourse in the bargaining process, and in the dynamic nature of the negotiation relationship that bargaining entails.

Adherence of Agreements

Trade Unions are expected to observe the arrangements and the agreements reached out in negotiations. Nevertheless, Unions are sometimes not able to maintain observance agreements by members. This is particularly so in developing countries where there are a number of unions.

Wherever a labour law system outlines sanctions for breaches of pacts, the labour administration organisation may be unwilling to enforce sanctions on the workforces. Where there is recurrent non-observance of agreements or understandings reached through the collective bargaining process, the party not in default would lose faith in the process.

Labour Administrative System

Direction by the national labour administration is important for positive collective bargaining. This means that they will have to offer the requisite climate for it. They would be effective in providing conciliation services in the incidence of a collapse in the negotiation process, and even make available the necessary legal framework for it to function where needed.

It also means they will not side with any party that breaks the agreements settled following during the collective bargaining and as far as is possible, guide and protect the observance of collective bargaining agreements.

Appropriate Internal Communication

It is important the agreement reached at the negations be shared amongst all the stakeholders concerned. It is incumbent both the union and management keep their members well informed on agreements tabled down. 

The absence of proper communication channels and accurate information passed unto management and members respectively can sometimes lead to misapprehensions and even to strikes. Sometimes managers and supervisors who are not properly informed may carelessly mislead workers who work under them about the current state of negotiations.

Really, it is essential to involve managers in determining on the objects and resolutions. In fact, management’s involvement is therefore likely to warrant acceptance and hence better execution by them.

Substantial matters – conclusion

Continuous discussions and dialogue lean towards improving relations at the workplace between labour and the union on one hand and the employer on the other. Certainly, the significant matters to consider in collective bargaining agreements, generally have the potency of refining industrial relations.

This development can be at varying degree levels. Nevertheless, it creates a fruitful relationship between the employers’ organis

ation and the union where the former is always part and involved in the negotiation and dialogue processes. 

The writer is the Divisional Assistant Secretary, GRA-PSWU

He is also the author of several books including the Practical Clues for Effective Business and Organisational Management.