Bargaining power can change hands

Do you think the individual is always at the receiving end and the "bargaining power" is always shifted in favour of employer?

No, the individuals are not at the receiving end and the “bargaining power” is not always shifted in favour of employer. The bargaining power may shift in the favour of the individual in the following: -

1. The individual possesses certain skills which are not easily available in the market. In this case, individual may realise his important for the employer and can exercise his bargaining power to make sure that he gets what he deserves.

2. Based on my experience in IT industry I can say that, sometimes certain individuals become extremely important for project because of the relationship they have developed with the client over the years. The project will simply not work in the absence of these individuals. They become an extremely critical resource for the project. Such individuals can also exercise there bargaining power.

3. Employer can exercise their bargaining power when the market situation is not good and there are no new opportunities available for employees to switch jobs.

Based on the email, what are your observations on "bargaining power" in the context of individual - organizational relationship?

Darrell Hair used his bargaining power and demanded $500000 from ICC in favour of putting down his papers. He had faced severe criticism from all Asian Test Playing nations but he had great support from Australia, England and New Zealand. In this case ICC was caught in the centre. ICC didn’t know what to do as one side the Asian test playing nations demanded a ban on Darrel Hair and on the other side ICC would have earned the hatred of Australia, England and New Zealand by banning Hair.

In such case, it is very essential to mention the terms and conditions in the contract at the time of framing it. The employment contract between Mr. Hair and ICC was a term contract (Darrell Hair was in contract with ICC till March,08). In such term contracts, it should be clearly mentioned that on what condition the contract can be revoked before its completion date and on what basis the compensation will be decided. Absence of such a clause from might have prompted Umpire Darrell Hair to use his bargaining power.

Would you be able to make similar non-negotiable offer to your employer in any point of time in your career?

Yes, I feel that I will be able to make a non negotiable offer in future. One can make a non negotiable offer to the employer if one processes unique skills that are not easily available in the market or if one is critical resource to the project that cannot be done away with.

Also, if you were to receive a similar one time non-negotiable offer from your employee, how would you handle this issue?

If an employer receives a similar offer he should verify whether the claim made by the employee is a genuine one or not? If the claim is genuine, the employee’s demand should be full filled. Also, if the cost of replacing the employee is more than the claim, then also employee’s demand should be accepted. The employer should learn from such incidences and make necessary changes in the future employment contract like under what conditions the contract can be declared null and void before the contract end date and in that circumstances, on what basis the compensation will be decided.