PRATIK DATTANISHRIYA RATHOD

MBASEC – (C)

ROLL NO- 44-45TOPIC- COLLECTIVE BARGAINING

1

COLLECTIVEBARGAINING

CB is the process of discussion and negotiation between two parties, may be trade unionists, labor unionists, industrialists, employers.

Its one type of agreement upon a work between them.

SIDNEY & BEATRICE WEBB were the first to use the term COLLECTIVE BARGAINING in 1891

Meaning : According to Encyclopedia of Social

Science, “Collective Bargaining is a process of discussion and negotiation between two parties one or both of them is a group of persons acting in concert.”

ILO considers Collective Bargaining as a “Negotiations about working condition and terms of employment between an employer and a group of employees or one or more employees.”

1-Collective: all the workers collectively bargain for their common interest and benefits.

2-Strength: both the parties bargain from a position of equal strength.

3-Flexible: It has sufficient flexibly since no party can afford to be inflexible and rigid in such situation.

4-Voluntary: Both the parties come to negotiating table voluntarily in order to have meaningful dialogue on various troubling issues.

5-Continuous: It is a continuous process.6-Dynamic: dynamic process because the way agreements are

arrived at the way they are implemented and the mental make up of parties involved keeps changing.

7-Power relationship: workers want to gain maximum from mgt , and mgt wants to extract the maximum from workers by offering as little as possible.

Improvement in the condition of workers

Check on the autocracy in the industry.

Promotion of lasting industrial peace.

Conducive to Managerial Efficiency: contribute towards improving managerial efficiency.

Development of the Industrial Rules

Significance for society and Economy

Brings parties closer Develops better understanding, industrial

peace and democracy Resolve conflict and differences Develop self respect Bring social change through acceptable

solutions Guarantees the right and responsibilities at the

workers Formulate terms and conditions under both

parties will work together.

1. Conjunctive/ Distributive Bargaining2. Co-operative Bargaining3. Productivity Bargaining4. Composite Bargaining

They try to settle economic issues such as wages, benefits, bonus etc. though a zero sum game.

Where my gain is your loss and your gain is my loss.

In recession. When both parties realizes the

importance of condition and comes to a mutual understanding where workers are ready to cut down wages and management brings new technology to improve condition and invest more on marketing efforts in a phased manner.

Here wages and benefit are linked up with productivity.

A standard productivity index is finalized

And through negotiation it is finalized.

Here labor bargains for wages as usual but goes a step further demanding equity in matters relating to work norms, employment levels, environment hazards

Plant or establishment level: A collective agreement at plant level is reached only for the plant for which it has been drafted and its scope and extent are limited only to that particular unit or undertaking.

Local level: one employer or a group of employers or more employer’s association on one side and one or more unions established at the plant, locality, region ,industry, national level

Region/area level: between industry & one or more union established at plant, region , national level on the other

Industry level :Several units in the same industry band together and form association, which negotiate with union having similar status.

National level: representative of union and employer

Preparing for negotiation

Bargaining Issues

Negotiating

Negotiation breakdown

Reaching the agreement

Ratifying the agreement

Administration of the agreement

Overcoming Breakdown