Negotiation in industrial relations involve representatives of management and workers bargaining over items such as wages, penalty rates, hours of work and conditions of employment. It is fundamental to union-management relations and a key activity for HR managers. An important characteristic of collective bargaining, that of the ongoing employer-employee relationship has a significant impact on the importance of trade unions in the organisation. According to Cohen, outside consultants reduces the status of the HR manager in the eyes of the employees, union officials and company management. Because HR managers does not accept direct responsibility for the conduct of negotiation, the HR function is perceived as weak and the HR manager as not having the ability, authority or confidence of top management. Interestingly in Japan, where the HR function is very powerful, outside influence in industrial relations is not tolerated. Indeed, when negotiaitions with unions are viewed as a strategic activity within the organisation and not merely a defensive response to union demands, line managers become much more active in the negotiation process.( Raymond, J. Stone, pg 614)…
