COLLECTIVE BARGAINING

INTRODUCTION

CONCEPT

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 collectively whether represented through their union or by some of them on behalf f them.

COLLECTIVE BARGAINING =

COLLECTIVE BARGAINING

GROUP ACTION THROUGH ITS

REPRESENTATIVES

HANDLING OR NEGOTIATIONS

+

• Process involving discussions and negotiations

• ‘collective’ – group

• 'bargaining' – proposals and counter proposals

• to reconcile their conflicting interests

• is a flexible approach

DEFINITION

• 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”.

– FLIPPO

EVOLUTION

• 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.

CHARACTERISTICS

GROUP ACTIVITY FLEXIBILTY WIN-WIN SITUATION BUILDS RELATIONSHIP AN ART AND A SCIENCE

NEED

• Collective Bargaining provides platform for mgmt & employees which places them at par so far as negotiations are concerned. Therefore, any outcome of the negotiation is perceived as mutually beneficial to each other & has better acceptability among them.

• It is a pragmatic & democrative process for regulating the terms & conditions of employment in which employees feel a part of decision making process. This feeling develops better understanding among them and this increases trust & mutuality of interests with the organization

•

• Collective bargaining provides opportunity for speedy implementation of decisions regarding terms of employment as both parties are involved in decision making process. A participative decision making , particularly on issues of continuous nature, provides in-built mechanism for implementation of decisions

IMPORTANCE

a) IMPORTANCE TO EMPLOYEES: Collective bargaining develops a sense of self respect and

responsibility among the employees it increases strength of the workforce, thereby increasing

their bargaining capacity as a group. It increases productivity and morale of employees. it also discourages unilateral actions by employer. It helps in securing a prompt and fair settlement of

grievances.

It provides flexible means for adjustment of wages and employment conditions of economic and technological change in industry, as a result of which the chances of conflict are reduced

IMPORTANCE FOR EMPLOYERS: It becomes easier for mgt. to resolve issues at the bargaining

level rather than taking up complaints of individuals. Collective bargaining tends to promote a sense of job security

among employees and thereby tends to reduce the cost of labour turnover to management.

It opens up the channel of communication between the workers and the mgt. and increases workers participation in decision making.

ESSENTIAL CONDITIONS FOR SUCCESS OF COLLECTIVE BARGAINING

Equal bargaining powerRepresentative union’Mutual confidence Proactive approachQuick disposal Desire to settle

Desire to settle Union cooperation Mutual respect No unfair practices Unanimity among workers Positive attitudeGive and gain Respect previous agreements Beyond salaries

PROCESS OF COLLECTIVE BARGAINING

ENVIRONMENT

PREPARING FOR NEGOTIATIONS

NEGOTIATING

BARGAINING ISSUES

NEGOTIATION BREAKDOWNS

ADMINSTRATION OF THE AGREEMENT

RATIFYING THE AGREEMENT

REACHING THE AGREEMENT

OVERCOMING BREAKDOWNS

YES

NO

CAUSES FOR FAILURE OF COLLECTIVE BARGAINING

Attitude of management Political interferenceMultiplicity of trade union Unequal strength of parties Lack of objectivity in addressing and handling

grievance