Collective Bargaining

Meaning of Collective Bargaining

• Collective bargaining is a process of discussion and

negotiation between two parties, one or both of whom

is a group of persons acting in concert.

• The resulting bargain is an understanding as to the terms

and conditions under which continuing services is to be

performed

Features of Collective Bargaining• Process in which the terms and conditions of employment

are determined jointly by the employer and workers

• The parties to CB include workers who bargain either in combination or through their trade union on one side and employer or group or organization of employers on the other side

• CB emanates from employment relationship

• Main objective is determination of terms and conditions of employment through negotiations and process of give-and-take. If negotiations succeed, there is a 'collective agreement' else parties may take coercise measures

Features of Collective Bargaining• State has also come to play a notable role in regulating

various aspects of CB viz. determining enforceability of collective agreements, obligating employer and trade unions to bargain collectively, etc.

• Nature of CB is changeable and dynamic

• Main steps include– Presentation in collective manner

– Discussions and negotiations on the basis of mutual give-and-take

– Signing of formal agreement or arriving at an information understanding

– In the event of failure, likely resort to strike or lock out to force the opposite party

Importance of Collective Bargaining

• Improvement in the Conditions of Workers: Helped in securing a wide variety of economic benefits for the workers in the form of higher wages, liberal allowances, fringe benefits, economic security, shorter hours of work, better terms and conditions of employment, and physical working conditions.

• Check on Autocracy in Industry

• Conducive to Managerial Efficiency

Importance of Collective Bargaining• Promotion of Lasting Industrial Peace: The employers

and workers are in a better position to understand and appreciate the problems and difficulties of each other. Collective bargaining enables the parties to settle their differences or disputes based on facts and realities of the situation.

• Development of industrial relations : Successful conclusion of collective bargaining and incorporation of the terms in collective agreements lead to the establishment of rules or standards to be observed by both the parties. These rules may relate to numerous subjects concerning terms and conditions of employment such as wages, allowances, personnel matters, working conditions, economic security and welfare amenities, and others.

Units and Levels of Collective Bargaining

• Bargaining Unit

A group of workers who are accepted by an employer, a group of employers or by the government as representing the views and interests of majority of the workers concerned in an establishment or industry, and is able to enter into collective bargaining proceedings with the employer or group of employers.

A group of employers accepted by the organized workers or by the government as an appropriate agency for collective bargaining with workers in particular establishment, industry or area.

Levels of Collective Bargaining

• National-level bargaining : Not possible in India : Large country, diverse industry patterns. No allowance to uniformity and acceptability.

• Industry-level bargaining : Ahmedabad : Textile labour association bargaining with mill owners association of Ahmedabad. Mumbai : Rashtriya Mill Mazdoor Sabha bargains with mill owners.

• Corporate-level bargaining : . It is practiced in most large PSUs – BHEL, HMT, ONGC, IPCL, OIL India

Levels of Collective Bargaining

• Plant-level bargaining : Most of the private sector enterprises practice this type of bargaining.

• Craft level bargaining : Only in Airlines industry – Air India and Indian Airlines – management bargains four types of agreements – one with pilots’ association, one with engineers’ association, one with cabin crew and one with general staff

Types of Collective Bargaining• Conjuctive bargaining : : Characterized by WE v/s THEY feeling.

Loss of one party is equivalent to gain of the other. Also called zero-sum bargaining.

• Cooperative bargaining : Recessionary situation in industry. No option but to cooperate. Both parties realize importance of surviving in difficult times and working and willing to accept cut in wages in return for job security and higher wages when matter improve.

• Productivity bargaining : Aims at improving inefficient working methods by specifying changes in working practices

• Composite bargainining : Unions not only negotiate monetary aspects but also work norms, employment levels, environmental hazards, recruitment patterns, etc

Hurdles to collective bargaining in India

• Voluntariness in recognition of unions

• Ineffective procedure for the determination of representative union

• Outside leadership in trade unions

• Provision of elaborate adjudication machineries

• Comprehensive coverage of labour laws

• Inadequte unionization

• Other factors – inadequate education among workmen, unwillingness

on part of many employers to part with their freedom and sit along with

their workers on the bargaining table, inadequate capacity of industry

to pay, etc.