Collective Bargaining

Harry Tuli
Hersh Vardhan
Kavita Rawat
Surbhi Aggarwal

Contents

What is Collective Bargaining?

History
Theories
Features
Types
Objectives
Parties involved
Process
Conditions for success
Problems
Importance

What is Collective
Bargaining?

Formed of two components Collective

and Bargaining
Collective bargaining is a process of
negotiation between employers and a
group of employees aimed at reaching
agreements to regulate working
conditions.

What is CB? Cotd.

In the words of Flippo, Collective

bargaining is a process in which the
representatives of a labor organization
and the representatives of business
organization meet and attempt to
negotiate a contract or agreement,
which specifies the nature of
employee-employer-union
relationship.

History of Collective
Bargaining

CB first started in Great Britain.

In India trade unions became popular
only after 1900.
Gained more importance after
independence.

Approaches to Collective
Bargaining

Bargaining range theory

Walton and Mc Kersie sub process
theory
Chamberlains determinants model
Hicks Bargaining Model

Features of Collective
Bargaining

Collective process

Continuous process

Flexible and dynamic process

Partnership of workers in
management

Types of Collective
Bargaining

Distributive bargaining: Under it, the economic issues

like wages, salaries and bonus are discussed. In distributive
bargaining, one partys gain is another partys loss.
Integrative bargaining :This involves negotiation of an
issue on which both the parties may gain, or at least neither
party loses.
Attitudinal restructuring :This involves shaping and
reshaping some attitudes like trust or distrust, friendliness
or hostility between labor and management.
Intra-organizational bargaining: It generally aims at
resolving internal conflicts. This is a type of maneuvering to
achieve consensus with the workers and management.
Even within the union, there may be differences between
groups.

Scope of Collective
Bargaining

Very wide scope

Economic provision
Political provisions

Parties involved in
Collective Bargaining

Employer
Employee
Trade unions
Employer representatives

Process of Collective
Bargaining

Conditions for successful

Collective Bargaining

Realization of responsibilities
Give and take for both parties
Existence of trade unions
Maturity in leadership
Right attitudes of the negotiators
Proper training of the negotiators

Problems faced in Collective

Bargaining

Multiplicity of unions
Lack of definite procedure
Political influence

Importance of Collective
Bargaining
Importance
to employees

Collective bargaining develops a sense of self

respect and responsibility among the
employees.

It increases the strength of the workforce,

thereby, increasing their bargaining capacity as
a group.

Collective bargaining increases the morale and

productivity of employees.

Importance of Collective
Bargaining
Importance to employers

It becomes easier for the management to resolve

issues at the bargaining level rather than taking up
complaints of individual workers.

Collective bargaining tends to promote a sense of

job security among employees and thereby tends to
reduce the cost of labor turnover to management.

Collective bargaining plays a vital role in settling

and preventing industrial disputes.

Importance of Collective
Bargaining
Importance to society

Collective bargaining leads to industrial peace in

the country

It results in establishment of a harmonious

industrial climate which supports which helps the
pace of a nations efforts towards economic and
social development since the obstacles to such a
development can be reduced considerably.

The discrimination and exploitation of workers is

constantly being checked.

Conclusion/ Summarization

Concept of Collective Bargaining

Features and Types
Theories
Process
Importance

Thank You
Any Questions??