Collective bargaining

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  • 1. Collective Bargaining Chandan raj Iiebm,Pune
  • 2. Meaning of Collective Bargaining
    • Collective Bargaining is a system and a technique of resolving an industrial dispute through negotiations between employers and the representatives of employees without any help of an arbitrator.
    • Collective bargaining is that arrangement whereby the wages components of remuneration and conditions of employment of workman are settled through a bargain between the employer and the workman collectively whether represented through their union or by some of them on behalf of all of them.
  • 3.
    • It means bargaining between an employer or group of employers and a bona fide Labour Union.
    • Collective bargaining is made of 2 words
    • Collective : which implies group action through its representatives
    • Bargaining : which suggests negotiating
    • Thus it implies, “collective negotiation of a contract between the management’s representatives on one side and those of the workers on the other.”
  • 4. Definitions
    • Collective bargaining is a mode of fixing the terms of employment by means of bargaining between an organized body of employees and an employer or an association of employers usually acting through organized agents.
    • R.F.Hoxie
    • The resolution of industrial problems between the representatives of employers and the freely designated representatives of employees acting collectively with a minimum of government dictation.
    • Cox
  • 5.
    • Collective Bargaining is a process in which the representatives of a labour organization and the representatives of the business organization meet and attempt to negotiate a contract or agreement which specifies the nature of the employee-employer union relationship Edwin B.Flippo
    • Collective bargaining is a process of discussion and negotiation between two parties, one or both of whom is a group of persons acting in consent. 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. Encyclopedia of Social Sciences
  • 6. Characteristics
    • It is a group action as opposed to individual action and is initiated through the representatives of workers.
    • It is flexible and mobile, and not fixed or static.
    • It is a two-party process.
    • It is a continuous process.
    • It is dynamic and not static.
    • It is industrial democracy at work.
    • Collective bargaining is not a competitive process but is essentially a complementary process.
    • It is an art, an advanced form of human relations.
  • 7. Need of Collective Bargaining
    • It helps in solving the industrial disputes.
    • Secure a prompt and fair redressal of grievances.
    • Establish uniform conditions of employment with a view to avoid industrial disputes and maintaining stable peace in the industry.
    • Helps redress worker grievances promptly and fairly.
    • Avoid interruptions in work which follow strikes, go-slow tactics and similar coercive activities.
    • Lay down fair rates of wages and norms of working conditions.
    • Achieve an efficient operation of the plant and
    • Promote the stability and prosperity of the industry.
  • 8. Importance
    • From the management’s point of view
    • 1. Collective bargaining helps in reducing labour problems to the minimum and in maintaining cordial relations between labour and management.
    • 2. Collective bargaining opens up the channel of communication between the workers and management thus increasing worker participation in decision making.
    • 3. Collective bargaining helps to create a sense of job security among employees.
    • 4. Collective bargaining makes simpler for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers.
  • 9.
    • From the Employee’s point of view
    • 1. Collective Bargaining helps to develop a sense of responsibility and accountability among the employees.
    • 2. Collective Bargaining increases the morale and productivity of employees.
    • 3. It helps in securing a prompt and fair settlement of grievances.
    • 4. Effective Collective Bargaining machinery strengthens and gives value to the trade unions movement.
    • 5. The discrimination and exploitation of workers, if any, is constantly monitored and addressed.
  • 10.
    • From the society’s point of view
    • Collective bargaining leads to industrial peace in the country which in turn helps to increase the pace of a nation’s efforts towards economic and social development.
    • It helps in implementation of labour legislation.
  • 11. Essential Conditions for Success of Collective Bargaining
    • There must be a change in the attitude of employers and employees. It is an approach which indicates that the two parties are determined to resolve their differences in their respective claims in a peaceful manner.
    • The employers and employees should enter upon negotiations on points of difference or on demands with a view to reaching an agreement.
    • To ensure that collective bargaining functions properly , unfair labour practices should be avoided and abandoned by both sides.
    • When negotiations result in an agreement, the terms of the contract should be put down in writing and embodied in a document .
  • 12.
    • Collective bargaining should be based on facts and figures .
    • Once an agreement is reached, it must be honoured and fairly implemented .
    • Both parties need to have an open mind and a positive attitude . They should listen to and try to understand the other persons view point and limitations.
    • A provision for arbitration should be incorporated in the agreements, which should become operative when there is any disagreement on the interpretation of its terms and conditions .
  • 13. Causes for Failure of Collective Bargaining
    • Unfair or corrupt labour practices.
    • Non availability of factual data.
    • Failure on the part of management to recognize the trade union.
    • Politicization of issues.
    • Multiplicity of trade unions.
    • Unequal strength of parties participating in the collective bargaining process.
    • Lack of objectivity in addressing and handling a grievance.
  • 14. Process of Collective Bargaining
    • Union Claim Management Proposal
    • Negotiations
    • Third Party Referral
    • Collective Bargaining
  • 15. Process of Collective Bargaining
    • Following steps are involved in the process of Collective Bargaining
    • Preparation
    • Reason for negotiating
    • Union leaders have to be in touch with the rank and file members to get an idea of their views and needs.
    • Both the parties must have the comparative data regarding terms of practice and percentage wage increase in other firms
    • The management needs to settle internal policy issues, regarding what concessions to make, wages to pay and changes that they are willing to make.
  • 16.
    • The union team also needs to come together to decide on their strategy and priorities.
    • Putting together of a negotiation team.
    • The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation.
  • 17.
    • 2. Discussion : parties decide the ground rules that will guide the negotiations. The principal negotiator is from the management team and he leads the committee.
    • 3. Proposal : Chief negotiator then puts forth the initial opening statements and the possible options that exist to resolve them. Both parties then put forward their arguments and counter arguments.
  • 18.
    • 4. Bargain : here the bargaining process starts in this stage what ‘if’ and ‘suppose’ are set forth and the drafting of agreements take place.
    • 5. Settlement : a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem. This stage consist of effective joint implementation of the agreement through share vision, strategic planning and negotiated change.
  • 19.
    • The result of Collective Bargaining procedure is called the collective bargaining agreement (CBA). It may be in the form of procedural agreements or substantive agreements.
    • Procedural agreements : This includes procedures in respect of individual grievances, disputes and discipline.
    • Substantive agreements : deals with issues such as basic pay, overtime premiums, bonus arrangements, holiday entitlements, hours of works, etc.
  • 20. Alternatives to Collective Bargaining
    • Alternative Dispute Resolution (ADR) is a term for describing the process of resolving disputes in place of litigation. It includes arbitration, mediation, conciliation, expert determination and early neutral evaluation by a third person.