Collective bargaining

Collective bargaining is a process in which the representatives of labour organization n the representatives of business organization meet n attempt to negotiate a contract or agreement which specifies the nature of the employee-employer union relationship

Objectives of collective bargaining

To maintain cordial relations between the

management and the workers To settle the disputes or conflicts To protect the interests of the workers To ensure the participation of trade unions in industry To resolve the differences between workers and management through voluntary negotiations and arrive at consensus To avoid the need for government intervention as it is a voluntary process

Features of collective bargaining

1. 2.
3. 4. 5. 6. 7. 8. 9. 10.

Collective bargaining is a group action Collective bargaining is a complementary n a competitive process It is a continuous process It is highly flexible but not fixed n static It is a dynamic process It is a bipartite process It is a negotiation process It is a step towards industrial democracy at work Collective bargaining is an art It is a logical process

1. Group action
Initiated through the representatives of the employees
On the management side are the delegates at the

bargaining table, on the side of workers is the TU

2. Complementary
CB is not a competitive but a complementary process,

because each party needs something that the other party has.

3. Continuous Process
Provides a mechanism for continuing an organized

relationship between management and trade unions It begins & ends with the writing of a contract

4. Flexible & Mobile

It has fluidity and ample scope for a compromise, for a

mutual give and take before the final agreement

5. Dynamic
Because it is relatively new concept, it is growing,

expanding and changing In the past- emotional, turbulent and sentimental Now- Scientific, factual, systematic Process which converts pleading into negotiation

6. Two way process- Bipartite process

It is a mutual give and take rather than a take-it-or-

leave-it method of arriving at a settlement of a dispute Essence of CB lies in readiness of both the parties to a dispute to reach an agreement

7. Negotiation
CB is a negotiation process and is a device used by

wage- earners to safeguard their interests It is an integral part of industrial security

steps
Includes 3 activities Recognition of the bargaining agent Level of bargaining Scope n coverage 2. Process of negotiation a. Negotiation stage - Preparation for negotiation - Negotiation techniques or procedures - Follow up 3. Contract administration
1. -

Collective bargaining process

1.
2. 3. 4. 5.

6.
7.

Preparation for negotiation To decide the sources for collecting information n data Identification of the issues, problems n objectives to be discussed n decided Identification of negotiating team Deciding the negotiation procedure to be followed Entering the labour-management agreement Follow up

1. Preparation for negotiation

Commence at the instance of either party
Desirable if negotiation is initiated by the

management TUs may compel the management for negotiation Positive and negative collective bargaining Making preparation before negotiation

2. To decide the sources for collecting information n data

Primary n secondary sources

Management- primary source- survey

Management- secondary source-information from

their associations, central organizations n labour departments of state n central govt.

3. Identification of the issues, problems n objectives to be discussed n decided

Approval by the top management
Management may put forward issues TUs may present their grievances n demands on the

negotiation table for discussions

4. Identification of negotiating team

Success depends upon attitude of both the parties
Small team Team size n involvement depends upon issues Complete knowledge Authority to speak

5. Deciding the negotiation procedure to be followed

Charter of demands presented by TUs
Both the parties- understandable Not to take any aggressive step Making of counter proposals Avoidance of rigid stand

6. Entering the labour-management agreement

Conclusions are drawn
Labour contract or agreement Agreement must comply with legal provisions

7. Follow up action
Agreement printed n circulated
Constant appraisal Implementation with full sincerity

Types of collective bargaining

1. Distributive bargaining- economic issues 2. Integrative bargaining no loss of any of the party 3. Attitudinal bargaining to change the attitude of both the parties 4. Intra-organizational bargaining- to achieve the consensus within each of the interacting group

Purpose of collective bargaining

Brings parties closer Develops better understanding, industrial peace n

industrial democracy Resolves conflicts n differences Guarantees the rights n responsibilities of the workers Develops self respect n fosters responsibility on both workers n employers Brings social change through acceptable solutions Formulates terms n conditions under which labour n management will work together

Strategies of collective bargaining

1. 2. 3. 4. 5. 6.
7. 8. 9. 10.

Target n resistance- (what they want to achieve) Commitment Adjournments Timing Patient hearing Guard against revealing position(management should not try to reveal their position) Informal discussions Integrative bargaining(no loss of any of the party) Continuous relationship Differences in negotiating team(attitude)

Approaches to collective bargaining

Industry bargaining- in case of core industries- coal, steel

cement, banks and insurance Enterprise bargaining- giving autonomy to enterprises Concession bargaining-(economic depression) shorter working hours Freeze on fresh recruitment Restriction on overtime Training and retraining of workers Composite bargaining- the contents of bargaining are- mainly wages, allowances, and benefits, conditions of work and employment, change in strategy Shift from conventional to include issues like QWL, PRODUCTIVITY IMPROVEMENT