Collective bargaining

Presented By Ramkrishna Rajput

Roll No.Dlp 059

Concept of Collective Bargaining

• Collective bargaining is process of joint decision making and basically represents a democratic way of life in industry

• It is the process of negotiation between firm’s and workers’ representatives for the purpose of establishing mutually agreeable conditions of employment

• It is a technique adopted by two parties to reach an understanding acceptable to both through the process of discussion and negotiation

• Defined collective bargaining as, negotiation about working conditions and terms of employment between an employer and a group of employees or one or more employee, organization with a view to reaching an agreement wherein the terms serve as a code of defining the rights and obligations of each party in their employment relations with one another (ILO)

• Involves discussions and negotiations between two groups as to the terms and conditions of employment

• It is called ‘collective’ because both the employer and the employee act as a group rather than as individuals. It is known as ‘bargaining’ because the method of reaching an agreement involves proposals and counter proposals, offers and counter offers and other negotiations

• To settle disputes/conflicts relating to wages and working conditions.

• To protect the interest of workers through collective team.

• To resolve the differences between workers and management through voluntary negotiations and arrive at a consensus.

• To avoid third party intervention in matters relating to payment

Objectives

Conditions For Successful Collective Bargaining

• Trade Union Recognition

• Knowledge , awareness and skills of workers

• Support of Labour Administration Authorities

• Good Faith : transparency

• Proper Internal Communication

Importance of Collective Bargaining Importance to Employee:-1. Develops a sense of self respect and responsibility among the employees

2. Increases the strength of the workforce, thereby, increasing their bargaining capacity as a group

3. Increases the morale and productivity of employees

4. Restricts management’s freedom for arbitrary/ unilateral action against th employees

5. Effective collective bargaining machinery strengthens the trade unions movement

6. The workers feel motivated as they can approach the management on various matters and bargain for higher benefits

7. Helps in securing a prompt and fair settlement of grievances

8. 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 for conflicts are reduced

Importance to employers

1.Becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers

2.Tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management

3.Opens up the channel of communication between the workers and the management and increases worker participation in decision making

4.Plays a vital role in settling and preventing industrial disputes

Importance to Society

Leads to industrial peace in the country

Results in establishment of a harmonious industrial climate which supports which helps the pace of a nation’s efforts towards economic and social development since the obstacles to such a development can be reduced considerably

Discrimination and exploitation of workers is constantly being checked.

Provides a method or the regulation of the conditions of employment of those who are directly concerned about them

Types of Bargaining

• Conjunctive/Distributive Bargaining• Co-operative Bargaining• Productivity Bargaining• Composite Bargaining

Conjunctive/Distributive Bargaining :-• zero-sum game; win – lose • It is the process of dividing the cake which

represents the whole produced by joint efforts of management & labour

• If one party wins something, the other party has relatively smaller size of the cake

Co-operative /Integrative Bargaining:- – more open to coming down from their high horses; – win – win. – Both parties win, each contributing something for

the benefit of the other party– Such a process develops common objectives, a

better understanding of each other’s need, better respect, well being & growth of the enterprise as a whole

Levels At Which Collective Bargaining Is Undertaken

Enterprise Or Plant Level

Industry-Cum-Region wide Agreements

Sectoral Collective Bargaining At National Level

Collective Bargaining Process

• Prepare

• Discuss

• Propose

• Bargain

• Settlement