COLLECTIVE BARGAINING

Collective bargaining has been defined as the technique by which dispute as to

conditions of employment is resolved amicably by agreement rather than coercion. It
is a process of discussion and negotiation between employer and workers regarding
terms of employment and working conditions. Workers are generally represented by
trade unions with respect to expressing their grievance concerning service conditions
and wages before the employer and the management. Refusing to bargain collectively
in good faith with the employer is considered to be an unfair labour practice as per the
provisions of the Industrial Disputes Act, 1947.
Features of Collective Bargaining:
The features of collective bargaining are as under:
It is a collective process. The representatives of both workers and management
participate in bargaining;
It is a continuous process. It establishes regular and stable relationship between
the parties involved. It involves not only the negotiation of the contract, but
also the administration of the contract;
It is a flexible and dynamic process. The parties have to adopt a flexible
attitude through the process of bargaining;
It is a method of partnership of workers in management.
Pre-requisites for Collective Bargaining:
Recognition of the Bargaining Agent: The management should give
recognition to the trade union for participating in the collective bargaining
process. In case there is more than one union, selection could be done through
verification of membership by a government agency giving representation to all
the major unions through joint consultations. Thus, the bargaining agent of the
workers should be properly identified before initiating any action.
Deciding the Level of Bargaining: Whether the dealings are confined to
enterprise level, industry level, regional or national level should be decided as
the contents, scope and enforcement agencies differ in each case.
Determining the Scope and Coverage of Bargaining. It would be better to
have a clear understanding of what are the issues to be covered under
bargaining. Many a time, bargaining is restricted to wage and working
conditions related issues but it would be advantageous for both the
management and union to cover as many issues as possible to prevent further
friction and disputes. Therefore, all the important and interrelated issues are to
be taken for consideration.
Spirit of Give and Take
Good faith and mutual agreement
Aims and Objectives:

 Balances the Legitimate Expectations - Collective Bargaining balance the

conflicting interest of employer and employee through the process of
negotiation.
Maintains Equality Collective Bargaining is a means to maintain equality
between the worker and the workmen as the latter is at least advantageous
position from the outset.
Promote Industrial Democracy Trade Union seeks to promote industrial
democracy. The International Confederation of Free Trade Union stated that the
objects of the collective bargaining is to express in practical terms the workers
desire to be treated with due respect and to achieve democratic participation in
decision affecting their working conditions.
Rule-making Function Collective bargaining performs rule-making
function. Collective Agreements govern employment relationships in the
bargaining unit and thereby create generally applied standards. Collective
bargaining helps in establishment and maintenance of the mutual relations of
the workers and the management. Consequently, it strengthens the union as an
organization. Further, it makes enterprise more responsive to human needs.