Presented By Sumi SasiKumar S2,MBA GKMCCMT COLLECTIVE BARGAINING
Collective bargaining takes place when representatives of a labour union meet management representatives to determine employees’ wages and benefits and to solve other issues…
Definition of Collective bargaining
“ Collective bargaining is a process in which the representatives of business organization meet and attempt to negotiate a contract or agreement which specifies the nature of the Employee-Employer union relationship”
Characteristics of collective bargaining
It’s a group action as opposed to individual action.
It is flexible & mobile and not fixed.
It is a two-party process.
It is a continuous process.
it is dynamic and not static.
It is a democratic function.
Collective bargaining is not a competitive process but a complementary process.
“ Its an art, an advanced form of human relations.”
Importance of collective bargaining
It helps to increase economic strength of both parties.
It helps to establish uniform conditions of employment.
Secure a prompt and fair redressal of grievances.
Avoid strikes, & coercive activities.
Lay down fair rates of wages& norms.
Achieve an efficient operation of the plant.
It ensure old age pension benefits and other fringe benefits..
Collective bargaining Process
Identification of problem
Preparing for negotiations
Negotiations of agreement
The union see that the contract had been understood and take steps to implement it.
Conditions for the success of collective bargaining
Strong consultation between the trade union and the management is possible only when the bargaining power of two parties is relatively equal.
Both the parties must accept the principle of ‘free consultation’ & ‘free enterprise’.
Must have mutual confidence, good faith& desire to make collective bargaining a success
The willing acceptance by the management to recognize representative union for this purpose.
Should not await the union raise problems but should make every reasonable effort to prevent them.
The process of bargaining should be free from unfair practices.
Limited success of Collective bargaining in India
Problems with Unions
Problems with government
Recommendations of the NCL
Government intervention in industrial relations, particularly in the settlement of industrial disputes should be reduced gradually to the minimum possible extent. Compulsory adjudication of disputes should be used only as a last resort.
Trade unions should be strengthened both organizationally and financially by amending the Trade Union ACT of 1926:
Make registration of unions compulsory.
Enhance the union membership fee.
Reduce the presence of outsiders in the union executive & among the office bearers
Legal provision may be made either by amending an existing enactment for:
Compulsory recognition of trade unions and certification of unions as bargaining agents.
Prohibition and penalisation of unfair labour trade practices.
Bargaining in good faith by both employers and unions
Approaches to collective bargaining
As a PROCESS OF SOCIAL CHANGE.
As a PEACE TREATY between the conflicting parties.
As a system of INDUSTRIAL JURISPRUDENCE.
Views of Collective bargaining
From the MANAEMENT point of View:
To earn higher profits at lower costs
Maximum utilization of workers.
From LABOUR point of View:
Strengthening the Trade union movement because Trade unions are the bargaining agents of the workers.
From the GOVERNMENT point of views:
Industrial peace is maintained through collective bargaining process..
TYPES OF BARGAINING
It deals with issues or an issue in which two or more parties have conflicting or advisory interests
It is a process where both the parties can win, each contributing something for the benefits of other party.