Collective Bargaining

Topics to be coveredCollective BargainingEvolution Of Collective BargainingTypes Of BargainingCollective Bargaining ProcessCollective Bargaining Agreement Levels At Which Collective Bargaining Is

UndertakenConditions For Successful Collective BargainingTrends In Collective BargainingCase Study On Collective Bargaining: The

General Motors – United Auto Workers DealPerceptions

Collective Bargaining“Collective Bargaining is a process in which the

representatives of a labour organization & the representatives of business organization meet and attempt to negotiate a contract or agreement, which specifies the nature of employee-employer union relationship”.

– FLIPPOProcess involving discussions and negotiations

‘collective’ – group

'bargaining' – proposals and counter proposals

to reconcile their conflicting interests

is a flexible approach

Evolution Of Collective Bargaining

Coined by Sydney and Beatrice Webb

Industrial Revolution – Great Britain

The Indian Scenario: Gandhiji - the leader of the Ahmedabad textile

workers Idea gathered interest only after the Second World

War GOI took steps like setting up of machinery for

negotiations, conciliation and arbitration.

Types Of Bargaining

Conjunctive/Distributive Bargaining - zero-sum game; win – lose

Co-operative Bargaining - more open to coming down from their high horses; win – win.

Collective Bargaining ProcessPrepare

Discuss

Propose

Bargain

Settlement

Collective Bargaining AgreementWritten document regarding

working conditions and terms of employment

Legally, a CBA binds only the parties to it.

In India, there are three types of agreements, namely voluntary agreements,settlements, andConsent awards.

procedural agreements or substantive agreements

Contents of Collective Bargaining Agreement

The date of commencement of the agreement

Its duration

A definition of terms

The procedure for settling disputes regarding interpretation, as well as other disputes.

The consequences in the event of breaches of the agreement

As regards wages, exactly how conversion of employees' wages to the new scales is to be effected.

Levels At Which Collective Bargaining Is Undertaken

Enterprise Or Plant Level

Industry-Cum-Region wide Agreements

Sectoral Collective Bargaining At National Level

Conditions For Successful Collective Bargaining

Trade Union Recognition

Observance of Agreements

Support of Labour Administration Authorities

Good Faith

Proper Internal Communication

PERCEPTIONS ON COLLECTIVE BARGAINING

CB essentially means negotiations between the labour and management

CB should just not stop at the negotiations but also go on to be implemented; otherwise the entire process of CB will be rendered futile.

It is mostly the formal sector that benefits out of the CB process.

The parties have to adopt a flexible attitude throughout the process of bargaining

It is based on give and take approach and take or leave approach.

Once both the parties know what they want, negotiations become easier and better.

Obviously all the above mentioned conditions are required successful for CB but the most essential among them is the “good faith”

CB agreement is a written format and it is essential because that acts as a legal framework and as a guide to their relationships on certain matters for a specified period of time.

Collective bargaining is not highly practiced in India, several factors are responsible for this:• Multiple unions• Defective laws• Mediation by political leaders

Organisations understand the importance of human resources hence they take care of the workers well enough so that collective bargaining is not highly required. It is also because most MNC’s are setting up their plants in India, because of which compensation levels have gone up so also the terms of employment has become favourable in most parts of the country.

It is necessary to create a win – win situation for both the parties, if this is not done, the process of CB just acts as a temporary solution. Also, if CB is used as a temporary solution, it would infact create an environment of distrust.