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Collective Bargaining

Chandan raj

Iiebm,Pune



Meaning of CollectiveBargaining

Collective Bargaining is a system and a technique of

resolving an industrial dispute through negotiations

between employers and the representatives of

employees without any help of an arbitrator. Collective bargaining is that arrangement whereby the

wages components of remuneration and conditions of

employment of workman are settled through a bargain

between the employer and the workman collectivelywhether represented through their union or by some of

them on behalf of all of them.



It means bargaining between an employer or group of employers and a bona fide Labour Union.

Collective bargaining is made of 2 words

Collective : which implies group action through itsrepresentatives

Bargaining : which suggests negotiating

Thus it implies, “collective negotiation of a contract

between the management’s representatives on one side andthose of the workers on the other.”



Definitions

Collective bargaining is a mode of fixing the terms of employment by means of bargaining between an organized

body of employees and an employer or an association of employers usually acting through organized agents.

R.F.Hoxie

The resolution of industrial problems between therepresentatives of employers and the freely designated

representatives of employees acting collectively with aminimum of government dictation.

Cox



Collective Bargaining is a process in which therepresentatives of a labour organization and therepresentatives of the business organization meet andattempt to negotiate a contract or agreement which specifies

the nature of the employee-employer union relationshipEdwin B.Flippo

Collective bargaining is a process of discussion andnegotiation between two parties, one or both of whom is agroup of persons acting in consent. The resulting bargain isan understanding as to the terms and conditions under which a continuing service is to be performed. Morespecifically, collective bargaining is a procedure by whichemployers and a group of employees agree upon theconditions of work. Encyclopedia of Social Sciences



Characteristics

1. It is a group action as opposed to individual actionand is initiated through the representatives of workers.

2. It is flexible and mobile, and not fixed or static.

3. It is a two-party process.4. It is a continuous process.

5. It is dynamic and not static.

6. It is industrial democracy at work.

7. Collective bargaining is not a competitive process butis essentially a complementary process.

8. It is an art, an advanced form of human relations.



Need of Collective Bargaining

It helps in solving the industrial disputes. Secure a prompt and fair redressal of grievances. Establish uniform conditions of employment with a

view to avoid industrial disputes and maintainingstable peace in the industry.

Helps redress worker grievances promptly and fairly. Avoid interruptions in work which follow strikes, go-

slow tactics and similar coercive activities. Lay down fair rates of wages and norms of working

conditions.

Achieve an efficient operation of the plant and Promote the stability and prosperity of the industry.



Importance

From the management’s point of view

1. Collective bargaining helps in reducing labourproblems to the minimum and in maintaining cordialrelations between labour and management.

2. Collective bargaining opens up the channel of communication between the workers andmanagement thus increasing worker participation indecision making.

3. Collective bargaining helps to create a sense of job

security among employees.4. Collective bargaining makes simpler for the

management to resolve issues at the bargaining levelrather than taking up complaints of individualworkers.



From the Employee’s point of view

1. Collective Bargaining helps to develop a sense of responsibility and accountability among theemployees.

2. Collective Bargaining increases the morale andproductivity of employees.

3. It helps in securing a prompt and fair settlement of grievances.

4. Effective Collective Bargaining machinery strengthens

and gives value to the trade unions movement.5. The discrimination and exploitation of workers, if any,

is constantly monitored and addressed.



From the society’s point of view

Collective bargaining leads to

industrial peace in the country whichin turn helps to increase the pace of anation’s efforts towards economic andsocial development.

It helps in implementation of labourlegislation.



Essential Conditions for Success of Collective Bargaining

There must be a change in the attitude of employers andemployees. It is an approach which indicates that the two

parties are determined to resolve their differences in their respective claims in a peaceful manner.

The employers and employees should enter uponnegotiations on points of difference or on demands witha view to reaching an agreement.

To ensure that collective bargaining functions properly,

unfair labour practices should be avoided and abandoned by both sides.

When negotiations result in an agreement, the terms of thecontract should be put down in writing and embodied in adocument.



Collective bargaining should be based on facts andfigures.

Once an agreement is reached, it must be honouredand fairly implemented.

Both parties need to have an open mind and apositive attitude. They should listen to and try tounderstand the other persons view point andlimitations.

A provision for arbitration should be incorporated in

the agreements, which should become operative whenthere is any disagreement on the interpretation of its terms and conditions.



Causes for Failure of CollectiveBargaining

Unfair or corrupt labour practices.

Non availability of factual data.

Failure on the part of management to

recognize the trade union. Politicization of issues.

Multiplicity of trade unions.

Unequal strength of parties participating in

the collective bargaining process. Lack of objectivity in addressing and

handling a grievance.



Process of Collective Bargaining

Union Claim ManagementProposal

Negotiations

Third Party

Referral

Collective Bargaining



Process of Collective Bargaining

Following steps are involved in the process of Collective Bargaining

1. Preparation

Reason for negotiating

Union leaders have to be in touch with the rank andfile members to get an idea of their views and needs.

Both the parties must have the comparative dataregarding terms of practice and percentage wageincrease in other firms

The management needs to settle internal policyissues, regarding what concessions to make, wagesto pay and changes that they are willing to make.



The union team also needs to cometogether to decide on their strategyand priorities.

Putting together of a negotiationteam.

The negotiation team should consist

of representatives of both the partieswith adequate knowledge and skillsfor negotiation.



2. Discussion : parties decide the groundrules that will guide the negotiations. Theprincipal negotiator is from the

management team and he leads thecommittee.

3. Proposal : Chief negotiator then puts forththe initial opening statements and the

possible options that exist to resolve them.Both parties then put forward theirarguments and counter arguments.



4. Bargain : here the bargaining processstarts in this stage what ‘if’ and ‘suppose’ are set forth and the drafting of

agreements take place.5. Settlement : a consensual agreement is

reached upon wherein both the partiesagree to a common decision regarding the

problem. This stage consist of effective joint implementation of the agreementthrough share vision, strategic planningand negotiated change.



The result of Collective Bargainingprocedure is called the collective bargainingagreement (CBA). It may be in the form of procedural agreements or substantiveagreements.

Procedural agreements : This includesprocedures in respect of individualgrievances, disputes and discipline.

Substantive agreements : deals with issuessuch as basic pay, overtime premiums,bonus arrangements, holiday entitlements,hours of works, etc.



Alternatives to CollectiveBargaining

Alternative Dispute Resolution (ADR)is a term for describing the process of resolving disputes in place of litigation. It includes arbitration,mediation, conciliation, expertdetermination and early neutral

evaluation by a third person.

Date post:	14-Apr-2018
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