Collective BargainingCollective bargaining is process of joint decision making and basically represents ademocratic way of...
Collective Bargaining Cont..Defined collective bargaining as, negotiation about working conditions and terms ofemployment ...
Collective Bargaining Cont..Thus collective bargaining:• Is a collective process in which representatives of both the mana...
Characterstics• It is a group process, wherein one group, representing the employers, and the other,representing the emplo...
Characterstics Cont..• It a bipartite process. This means there are always two parties involved in theprocess of collectiv...
Characterstics Cont..• Collective bargaining takes into account day to day changes, policies, potentialities,capacities an...
Bargaining Forms Distributive bargaining/Conjunctive bargaining Integrative bargaining/Cooperative bargaining Attitudin...
Bargaining Forms Cont..Attitudinal restructuring• Involves shaping and reshaping some attitudes like trust or distrust, fr...
Bargaining Forms Cont..Intra-organizational bargaining• Generally aims at resolving internal conflicts• This is a type of ...
Collective Bargaining ProcessComprises of five core steps1. Prepare This phase involves composition of a negotiation team...
Collective Bargaining Process Cont..2. Discuss Here, the parties decide the ground rules that will guide the negotiations...
Collective Bargaining Process Cont..4. Bargain This stage comprises the time when ‘what ifs’ and ‘supposals’ are set fort...
Collective Bargaining Process Cont..
Levels of Collective BargainingOperates at three levels:1. National level2. Sector or industry level3. Company/enterprise ...
Levels of Collective Bargaining Cont..
Importance of Collective BargainingImportance to employees1. Develops a sense of self respect and responsibility among the...
Importance of Collective Bargaining Cont..Importance to employers1. Becomes easier for the management to resolve issues at...
Importance of Collective Bargaining Cont..Importance to Society Leads to industrial peace in the country Results in esta...
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Collective bargaining

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Collective bargaining

  1. 1. Collective BargainingCollective bargaining is process of joint decision making and basically represents ademocratic way of life in industryIt is the process of negotiation between firm’s and workers’ representatives for thepurpose of establishing mutually agreeable conditions of employmentIt is a technique adopted by two parties to reach an understanding acceptable to boththrough the process of discussion and negotiation
  2. 2. Collective Bargaining Cont..Defined collective bargaining as, negotiation about working conditions and terms ofemployment between an employer and a group of employees or one or more employee,organization with a view to reaching an agreement wherein the terms serve as a code ofdefining the rights and obligations of each party in their employment relations with oneanother (ILO)Involves discussions and negotiations between two groups as to the terms and conditions ofemploymentIt is called ‘collective’ because both the employer and the employee act as a group ratherthan as individuals. It is known as ‘bargaining’ because the method of reaching anagreement involves proposals and counter proposals, offers and counter offers and othernegotiations
  3. 3. Collective Bargaining Cont..Thus collective bargaining:• Is a collective process in which representatives of both the management and employeesparticipate• Is a continuous process which aims at establishing stable relationships between the partiesinvolved• Not only involves the bargaining agreement, but also involves the implementation of such anagreement• Attempts in achieving discipline in the industry• Is a flexible approach, as the parties involved have to adopt a flexible attitude towardsnegotiations
  4. 4. Characterstics• It is a group process, wherein one group, representing the employers, and the other,representing the employees, sit together to negotiate terms of employment• Negotiations form an important aspect of the process of collective bargaining i.e.,there is considerable scope for discussion, compromise or mutual give and take incollective bargaining• Collective bargaining is a formalized process by which employers and independenttrade unions negotiate terms and conditions of employment and the ways in whichcertain employment-related issues are to be regulated at national, organizational andworkplace levels• Collective bargaining is a process in the sense that it consists of a number of steps.It begins with the presentation of the charter of demands and ends with reaching anagreement, which would serve as the basic law governing labor managementrelations over a period of time in an enterprise. Moreover, it is flexible process andnot fixed or static. Mutual trust and understanding serve as the by products ofharmonious relations between the two parties
  5. 5. Characterstics Cont..• It a bipartite process. This means there are always two parties involved in theprocess of collective bargaining. The negotiations generally take place between theemployees and the management. It is a form of participation.• Collective bargaining is a complementary process i.e. each party needs somethingthat the other party has; labor can increase productivity and management can paybetter for their efforts.• Collective bargaining tends to improve the relations between workers and the unionon the one hand and the employer on the other.• Collective Bargaining is continuous process. It enables industrial democracy to beeffective. It uses cooperation and consensus for settling disputes rather than conflictand confrontation.
  6. 6. Characterstics Cont..• Collective bargaining takes into account day to day changes, policies, potentialities,capacities and interests• It is a political activity frequently undertaken by professional negotiators
  7. 7. Bargaining Forms Distributive bargaining/Conjunctive bargaining Integrative bargaining/Cooperative bargaining Attitudinal restructuring Intra-organizational bargainingDistributive bargaining/Conjunctive bargaining• Involves haggling over the distribution of surplus• Under it, the economic issues like wages, salaries and bonus are discussed• In distributive bargaining, one party’s gain is another party’s lossIntegrative bargaining/Cooperative bargaining• Involves negotiation of an issue on which both the parties may gain, or at least neitherparty losesFor example, representatives of employer and employee sides may bargainover the better training programme or a better job evaluation method
  8. 8. Bargaining Forms Cont..Attitudinal restructuring• Involves shaping and reshaping some attitudes like trust or distrust, friendliness orhostility between labor and management• When there is a backlog of bitterness between both the parties, attitudinalrestructuringis required to maintain smooth and harmonious industrial relations• Helps to develop a bargaining environment and creates trust and cooperation amongthe parties
  9. 9. Bargaining Forms Cont..Intra-organizational bargaining• Generally aims at resolving internal conflicts• This is a type of maneuvering to achieve consensus with the workers andmanagement.For example, skilled workers may feel that they are neglected or women workers mayfeel that their interests are not looked after properly
  10. 10. Collective Bargaining ProcessComprises of five core steps1. Prepare This phase involves composition of a negotiation team(The negotiation team should consist of representatives of both the parties withadequate knowledge and skills for negotiation) In this phase both the employer’s representatives and the union examine their ownsituation in order to develop the issues that they believe will be most important The first thing to be done is to determine whether there is actually any reason tonegotiate at all
  11. 11. Collective Bargaining Process Cont..2. Discuss Here, the parties decide the ground rules that will guide the negotiations An environment of mutual trust and understanding is also created so that thecollective bargaining agreement would be reached3. Propose This phase involves the initial opening statements and the possible options that existto resolve them. In a word, this phase could be described as ‘brainstorming’ The exchange of messages takes place and opinion of both the parties is sought
  12. 12. Collective Bargaining Process Cont..4. Bargain This stage comprises the time when ‘what ifs’ and ‘supposals’ are set forth and thedrafting of agreements take place5. Settlement Once the parties are through with the bargaining process, a consensual agreement isreached upon wherein both the parties agree to a common decision regarding theproblem or the issue This stage is described as consisting of effective joint implementation of theagreement through shared visions, strategic planning and negotiated change
  13. 13. Collective Bargaining Process Cont..
  14. 14. Levels of Collective BargainingOperates at three levels:1. National level2. Sector or industry level3. Company/enterprise levelNational (Economy-wide) bargainingIt is a bipartite or tripartite form of negotiation between union confederations, central employerassociations and government agenciesIt aims at providing a floor for lower-level bargaining on the terms of employment, often takinginto account macroeconomic goalsSectoral bargainingAims at the standardization of the terms of employment in one industry, includes a range ofbargaining patternsCompany/enterprise levelHere bargaining level involves the company and/or establishment
  15. 15. Levels of Collective Bargaining Cont..
  16. 16. Importance of Collective BargainingImportance to employees1. Develops a sense of self respect and responsibility among the employees2. Increases the strength of the workforce, thereby, increasing their bargainingcapacity as a group3. Increases the morale and productivity of employees4. Restricts management’s freedom for arbitrary/ unilateral action against theemployees5. Effective collective bargaining machinery strengthens the trade unions movement6. The workers feel motivated as they can approach the management on variousmatters and bargain for higher benefits7. Helps in securing a prompt and fair settlement of grievances8. Provides a flexible means for the adjustment of wages and employment conditionsto economic and technological changes in the industry, as a result of which thechances for conflicts are reduced
  17. 17. Importance of Collective Bargaining Cont..Importance to employers1. Becomes easier for the management to resolve issues at the bargaining levelrather than taking up complaints of individual workers2. Tends to promote a sense of job security among employees and thereby tends toreduce the cost of labor turnover to management3. Opens up the channel of communication between the workers and themanagement and increases worker participation in decision making4. Plays a vital role in settling and preventing industrial disputes
  18. 18. Importance of Collective Bargaining Cont..Importance to Society Leads to industrial peace in the country Results in establishment of a harmonious industrial climate which supportswhich helps the pace of a nation’s efforts towards economic and socialdevelopment since the obstacles to such a development can be reducedconsiderably Discrimination and exploitation of workers is constantly being checked. Provides a method or the regulation of the conditions of employment of thosewho are directly concerned about them

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