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What is
Collective
Bargaining?
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Collective Bargaining
Concept was first given by Sidney and Beatrice Webb and alsoby Gompers in the USA
The ILO Workers Manual defines Collective Bargaining as:
Negotiation about working conditions and terms of employmentbetween an employer, a group of employers or one or more
employers organizations, on the one hand,
and one or more representative workers
organizations on the other with a view to
reaching agreement.
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Salient FeaturesIt is a group process
It contains a number of steps
Negotiations form animportant aspect in the process
It is a bipartite process
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Importance to society Collective bargaining leads to industrialpeace in the country. It results in establishment of aharmonious industrial climate which
supports, which helps the pace of a
nations efforts towards economic and
social development since the obstacles to
such a development can be reduced
considerably.
The discrimination and exploitation ofworkers is constantly being checked. It provides a method or the regulation ofthe conditions of employment of those
who are directly concerned about them.
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Importance to employers It becomes easier for the management to resolveissues at the bargaining level rather than taking
up complaints of individual workers.
Collective bargaining tends to promote a senseof job security among employees and therebytends to reduce the cost of labor turnover to
management. Collective bargaining opens up the channel ofcommunication between the workers and themanagement and increases worker participation
in decision making.
Collective bargaining plays a vital role in
preventionindustrial disputes.
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Importance to employees It increases the strength of the workforce, thereby, increasing
their bargaining capacity as a group.
Collective bargaining increases the morale and productivityof employees. It restricts managements freedom for arbitrary action against
the employees.. The workers feel motivated as they can approach the
management on various matters and bargain for higher
benefits.
It helps in securing a prompt and fair settlement ofgrievances.
It provides a flexible means for the adjustment of wages and
employment conditions to economic and technological
changes in the industry, as a result of which the chances forconflicts are reduced.8/20/2013 8
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Collective Bargaining Process
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Prepare This phase involves composition of a negotiation team.
The negotiation team should consist of representatives ofboth the parties with adequate knowledge and skills fornegotiation.
In this phase both the employers representatives and the
union examine their own situationin order to develop the issues that
they believe will be most important.
Both management and union go
through several intraorganisationalbargains.
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Discuss The parties decide the ground rules
that will guide the negotiations.
An environment of mutual trust and
understanding is also created so that
the collective bargaining agreementwould be reached.
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At the Bargaining table Item by item various demands are taken up, each side
presenting its case to the best of its ability. Some alternatives that initial rounds of clarifications and
explanations can provide are given below:
a) Total rejections of all demands as unreasonable, and
therefore a deadlock.
b) Rejection of some and offer to consider some others.
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c)Management to work out cost and other
implication of demands and restart negotiations.
d) While agreeing to consider union demands,
management puts forth counter demands of itsown.
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Variations of collective bargaining
Intraorga-nisationalBargaining
DistributiveBargaining
AttitudinalStructuring
IntegrativeBargaining
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Levels of Collective Bargaining
Plant Level
Industry Level
National Level
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Prerequisites of Collective Bargaining
Careful thought and selection of negotiation team
is imperative.
It is necessary for the management to recognize
the union and to bargain in more good faith in
unionized situation.
It is necessary to have open minds to listen
appreciate other concerns.
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Trade union should encourage internal union
democracy.
Strikes and lockouts should be restored to in
the ultimate analysis.
There is a need to do homework on the
demands proposed.
Both parties should be able to identify
grievances, safety and hygiene problems on a
routine basis and take appropriate remedialsteps.
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Problems of Collective Bargaining Due to the dominance of outsiders in trade unionism in the country,
there is multiplicity of unions which are weak and unstable, and do notrepresent majority of the employees. Moreover, there are inter-unionrivalries, which further hinder the process of collective bargainingbetween the labor and the management.
Trade unions are having political affiliations, they continue to bedominated by politicians, who use the unions and their members to
meet their political ends.
There is a lack of definite procedure to determine which union is tobe recognized to serve as a bargaining agent on behalf of the workers
There has been very close association between the trade unions and
political parties. As a result, trade union movement has leaned towardspolitical orientations rather than collective bargaining
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