COLLECTIVE BARGAININGCollective Bargaining- Meaning•It is a technique that has been adopted by union and management to reconciletheir conflicting interests.•It is called collective because the employees, as a group, select representatives tomeet and discuss differences with the employer.•The negotiations for collective bargaining require joint sessions of therepresentatives of labour and management.Collective Bargaining- DefinitionsIn the words of• Harrinon, “is a process of accommodation between two institutions which have both common and conflicting interests.”• Randle, “Collective bargaining has different meanings for different individuals or groups. Trade Unions, Managements and the public have divergent views on this process because each is differently affected by it.”• Richardson, “Collective bargaining takes place when a number of work people enter into a negotiation as a bargaining unit with an employer or group of employers with the object of reaching an agreement on the conditions of the employment of the work people.”• Encyclopedia of Social Sciences, “Collective bargaining is a process of discussion and negotiation between two parties one or both of whom is a group of persons acting in concert. The resulting bargain is an understanding as to the terms and conditions under which a continuing service is to be performed. More specifically, collective bargaining is a procedure by which employers and a group of employees agree upon the conditions of work.Collective Bargaining- Characteristics• Two way process• Agreement & Mutually settling it• Continuous process• Group Action• Flexible• Fluidity & ample scope for a compromise for a mutual give & take before the final agreement is reached• Dynamic & Static• Not a Competitive process but a Complementary process• It is an art, an advanced form of human relations.• It is a device and a procedure used by wage earners to safeguard their interests.Collective Bargaining- Meaning
•It is a technique that has been adopted by union and management to reconciletheir conflicting interests.•It is called collective because the employees, as a group, select representatives tomeet and discuss differences with the employer.•The negotiations for collective bargaining require joint sessions of therepresentatives of labour and management.Collective Bargaining- DefinitionsIn the words of•Harrinon, “is a process of accommodation between two institutions which haveboth common and conflicting interests.”•Randle, “Collective bargaining has different meanings for different individualsor groups. Trade Unions, Managements and the public have divergent views onthis process because each is differently affected by it.”•Richardson, “Collective bargaining takes place when a number of work peopleenter into a negotiation as a bargaining unit with an employer or group ofemployers with the object of reaching an agreement on the conditions of theemployment of the work people.”•Encyclopedia of Social Sciences, “Collective bargaining is a process ofdiscussion and negotiation between two parties one or both of whom is a group ofpersons acting in concert. The resulting bargain is an understanding as to the termsand conditions under which a continuing service is to be performed. Morespecifically, collective bargaining is a procedure by which employers and a groupof employees agree upon the conditions of work.Collective Bargaining- Characteristics•Two way process•Agreement & Mutually settling it•Continuous process•Group Action•Flexible•Fluidity & ample scope for a compromise for a mutual give & take before thefinal agreement is reached•Dynamic & Static•Not a Competitive process but a Complementary process•It is an art, an advanced form of human relations.•It is a device and a procedure used by wage earners to safeguard their interests.•Industrial democracy at work- joint formulation of company policy on all matterswhich directly affects the workersObjectives & Significance
•It is a technique that has been adopted by unions & management forcompromising their conflicting interests.•It plays a significant role in improving the labour- management relations and inensuring industrial harmony.•It helps in easing out many minor differences and there are many instances inwhich even some major disputes are set to be settled without any work stoppage oroutside intervention.•It provides a climate for smooth progress.•It ensures that managements do not take any unilateral decision.•It develops a sense of responsibility and of self-respect among the workers and isa guarantee towards wage protection etc.On the basis of the experience of advanced countries, where collectivebargaining is said to have made considerable advances, some indicatorsof C.B practice are: -•A high degree at collective bargaining as measured in terms of the proportion ofworkers covered by collective agreements;•Qualitative conduct of the parties to collective bargaining both before a situationwarranting negotiations develops and the methods followed at the time of arrivingat agreements;•The right priorities assigned to different methods in the agreements and theirchanging pattern overtime;•A structure of bargaining with emphasis on central bargaining which is purportedto give some order & stability to labour- management relations.GOALS TO BE ACHIEVED BY WORKERS THROUGH C.B.•Economic goals: Wages, Hours of work, The working conditions, Fringe benefits•Non-Economic goals: Worker’s satisfaction with his job, protection of the Unionas a growing institute (right to union)GOALS TO BE ACHIEVED BY MANAGEMENT THROUGH C.B.•Control of the organization,•Maintaining its ability to manage with a high degree of flexibility and efficiencyof operation•Control of hiring, promotion, discharge, lay off•Personnel techniques of management•Lay down fair rates of wages and norms of working conditions.•Achieve an efficient operation of the plant.
•Promote an efficient operation of the plant.•Promote the stability and prosperity of industry.•Bring social change through acceptable solutions. Prof.. Butter has viewed the functions of collective bargaining under three heads:-•Collective bargaining as a process of social change. Collective bargaining acts asa technique of long run social change, bringing rearrangements in the powerhierarchy of competing groups.•Collective bargaining has served as a peace treaty between two parties incontinued conflict. The compromise is a temporary truce with neither side beingcompletely satisfied with the results. Each would like to modify it at the earliestopportunity. Since the contract is almost always of short duration, each begins toprepare a new list of demands.•Collective bargaining create system of industrial jurisprudence. It is a methodof introducing civil rights into industry, that is, of requiring that management beconducted by rule rather than by arbitrary decision. It is a rule making orlegislative process in the sense that it formulates terms and conditions under whichlabour and management will cooperate and work together over a certain statedperiod.This agreement is important for a number of reasons:•It provides a method for the regulation of the conditions of employment of thosewho are directly concerned about them.•It provides a solution to the problem of sickness in industry and ensures old agepension benefits and other fringe benefits.•It creates new and varied procedures for the solution of the problems as and whenarise-problem which vex industrial relations and its form can be adjusted,conditions incorporated in the agreement by those who are engaged in a similarindustry.•It provides a flexible means for the adjustment of wages and employmentconditions to economic and technological changes in the industry, as a result ofwhich the chances for conflicts are reduced.•As a vehicle of industrial peace, collective bargaining has no equal. It is the mostimportant and significant aspect of labour-management relations and extends thedemocratic principle from the political to the industrial field.•It builds up a system of industrial jurisprudence by introducing civil rights inindustry. In other words,. It ensures that management is conducted by rules ratherthan by arbitrary decisions.Prof. Dunlop is of the opinion that collective bargaining is :-
•A system which establishes, services and administers many of the rules whichgovern the worker’s place of work.•A procedure which determines the quantum of compensation which employeesshould receive and which influences the distribution of economic ills.•A method of settling disputes during the pendency of an agreement and ofdetermining whether a dispute should be reopened and whether a strike or lockoutshould be resorted to or not.Scope of Collective BargainingScope of collective bargaining is based on the following guide lines(in India)•A preamble stating why the parties had met together, usually making reference tothe union’s charter of demands which formed the starting point for discussions.•A statement of principles such as rights and responsibilities of both parties.•Recognition of union by management and acceptance of the union’s right toorganize the workers and to carry out all the normal activities of a trade union.•A section dealing with remuneration, including basic pay scales, grades and jobclassification, dearness allowance and other allowances, incentives schemes andannual bonus.•A section on working conditions such as hours of work, overtime, recruitment,transfer, promotion, etc.•A section on service benefits and amenities such as leave, public holidays,medical benefits, sick pay, retirement age, pension or gratuity scheme, providentfund etc.•Clauses relating to special joint machinery may be included. These include jointproduction committees, joint labour relations, job evaluation, discipline, safety andwelfare committees as well as workers’ committees.•Grievance procedure of two kinds may be incorporated in an agreement.First the procedure for dealing with individual grievances as they arise day to day within the establishment. This may follow to a lesser or greater degree the model drawn up by the Indian labour conference.Second is the method of settling any dispute over interpretation of any part of agreement. This procedure includes voluntary arbitration.These are the following important facts pertaining to collectivebargaining nature:-•It is carried out on a collective as distinct from an individual basis. The collectivebargaining is bargaining by groups of people.•In the bargaining process, the main actors are employers and their association.•The object of collective bargaining is rule – making i.e. reaching an agreementspecifying the rules pertaining to employment relationship.•The main focus of these rules is on the terms and conditions of employment.
•Collective bargaining is a “Collective bipartite confrontation” between workersand management with a view to arrive at an agreement , for the objective not,‘welfare’ but ‘compromise’.•It is both a device and a procedure used by wage – earners to safeguard interests;it is an institution or instrument of an industrial organisation, discussion andnegotiations between the two parties.•It is however, a technique by which an attempt is made to reconcile the needs,objectives of workers and employers and is, therefore, an integral part of industrialsociety.•The essence of collective bargaining lies in the readiness of the two parties ofdispute to reach an agreement or mutually satisfying settlement.• It is concerned about the emotions of the people involved in it as well as with thelogic of interests.Collective Bargaining Vs. Joint Consultation•There is a lot of differences between the two processes.•Collective bargaining The object is to arrive at an agreement on wages and otherconditions of employment about which the parties start with divergent viewpointsbut ultimately attempt to make compromise. As soon as the bargain is made, theterms of the agreement are put into action.•Joint consultation such as joint councils refers to the sharing of information andsuggestions with regard to issues of common interest including health, safety,welfare and productive efficiency. Although the results differ, course of activitiesmay be in the form of recommendations, the ultimate decisions lies with themanagement.Practice of Collective BargainingThe consultative machinery for now practices in India at almost every level i.e.•At the level of undertaking: Works Committee & Joint committees•At the industrial level: Wage Boards & Industrial Committees•At the state level: Labour Advisory Board•At the national level: Indian Labour Conference & Standing Labour CommitteeIt is also called bipartite and tripartite bodies..The bipartite consultative machinery:Two important constituents viz., the works committee and the joint management councils. Tripartite bodies•The Indian labour conference•Standing labour committee•Committee on conventions•Industrial committee
And other bodies of tripartite nature deal with various aspects of labour program.•Work committee•Joint management councilsTHE PROCESS OF COLLECTIVE BARGAINING•Prenegotiation Phase•The selection of Negotiators•The Strategy of Bargaining•The Tactics of Bargaining, and•The ContractWhile Memoria C.B. has described two stages in collective bargaining i.e.1-The negotiation stage and2-The stage of contract administrationPROCESS OF NEGOTIATION BARGAINING1-Preparation for Negotiation- Negotiation may commence at the instance of either party-of labour or of management.A- Some managements bids the time till trade unions put proposals for trade unionsB- Positive Bargaining: Managements submit their own proposals for consideration by labour representativesImportance of Pre-Negotiation Phase1- Highly Vital for both management and employees.2-Important to study the status of the labour organization (Union)3-Previous negotiations, back ground and personality of the particular union negotiators to be studied.Approval from top management must be obtained on1-The specific proposals of the company including the objectives of the negotiations2-The appraisals of the cost of implementing the proposals
3-An approval in principle of the demands over which bargaining to be made (Demands to be accepted and not to be accepted) 2-Negotiation Technique and procedure-•Undertaken by a representative of each party or committee or by line or staffpersonnel. The negotiation committee may be composed of three to six members.•A committee should be small,otherwise•Committees become unwary;•They are more difficult to assemble, more likely to disorderly;•They are more inclined to concentrate on a discussion of in grievances orproblems of interest to one group rather than to the union as a whole.A-Strategy of Bargaining- Strategy is concerned with mapping out plan and basic policies to be in the bargaining process. Tactics are the particular action that are taken with bargaining table. Avoid mutual agreement clauses which would prevent management action. Management should retain the right to manage the firm subject to challenge by the union under the contract.•Keep one’s eyes on the entire package. A work-procedure concession mayeventually cost more than a substantial pay increase.•Keep company personal informed of the progress of bargaining sessions.•Develop agreement s where the union leader can always maintain that they “won”union leaders have to for selection on their record and management can morefrequently afford the appearance of having “lost”.•Determine the point at which the company is willing for the union to go on strike.The union is fully aware of the fact that the strike is its most potent bargainingweapon.TACTICS OF BARGAININGArnold Campo suggests that the following procedure should be adopted in negotiationA-For Union & Management-•Be friendly in negotiation. Introduce everybody.•Be willing to listen. There would be time enough for you to worry about thingsand say “no”, after you have heard all the facts.•Give everyone an opportunity to state his position and point of view.•Know something about the personal history of the other party’s representatives.•Always bear in mind the fact that you to do what is right and fair.•Both parties should strive to maintain an objective approach to a problem orgrievance.
•Do not attempt to guide the discussion along a straight line which goes straight tothe solution of the problems.•Define each issue clearly and unambiguously or detail in the contract to ensuregreater flexibility.•Avoid Sharp practices.B-For the management-•The management must, at the outset, make sure that the labour it is goingnegotiate with, are really the representatives of the workers.•Don’t use lawyers as negotiators unless they intimate knowledge of industryrelations.•Don’t limit contracts with the union to controversial subjects, but consider suchmatters as are of common interest to both.3-FOLLOW-UP ACTION- The collective bargaining should be printed and circulated among the employees they can know the reality about it. What has been agreed upon between management and represent of union meetings of supervisors should be called with effectively.A-CONTACT MANAGEMENTWhen the process of a negotiation has been completed, it is the time to sign the contract, the terms and conditions, which must be observed by both the parties. Once an agreement is signed, both the management and trade unions are required to honor it in letter and sprit, Smith has rightly observed “ An agreement is merely the frame work for everybody relationships…. The bargaining is carried on daily.”For Management-•The management should be available for open discussion/ conferences withworks representatives so that it may acquire first hand knowledge of the changingattitude and problems of its employees.•Give credit to the trade union for anything work while achieved by it.•The management should avoid paternalism and strive to treat the trade unionrepresentatives and its employees as equals.•Many restrictive practices, and what appear to be unseasonable demands on theworkers or their representatives, will disappear if the management strives giveregular employment to its workers.For Trade Unions-
•That is the responsibility of the trade unions that their members understand termsof the agreement, it has reached with the management.•The union representatives should make themselves available for a conferencewhenever they are required to do so by the management.