Collective Bargaining is a process in which the representatives of a labour organization & the representatives of business organization meet and attempt to negotiate a contract (MOU) or agreement, which specifies the nature of employees-employer union relationship”. Process involving discussions and negotiations ‘collective’ – group bargaining – proposals and counter proposals to reconcile their conflicting interests is a flexible approach
is a collective process in which representatives of both the management and employees participate. is a continuous process which aims at establishing stable relationships between the parties involved. attempts in achieving discipline in the industry is a flexible approach, as the parties involved have to adopt a flexible attitude towards negotiations.
Wages and wage revisions Allowances and other perks Working hours, working conditions etc. Grievances Safety and health aspects Welfare measures and social security aspects Trade Union Recognition Performance evaluation / Job evaluation Bonus / incentives Retirement Benefits, pension etc. Maintenance of discipline and panel actions.
Collective bargaining increases the morale and productivity of employees Effective collective bargaining machinery strengthens the trade unions movement 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.
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 labour turnover to management. Collective bargaining plays a vital role in settling and preventing industrial disputes
Collective bargaining leads to industrial peace in the country The discrimination and exploitation of workers is constantly being checked. It provides a method or the regulation of the conditions of employment of those who are directly concerned about them
Existence of a strong Trade Union Existence of enlightened management Open minded approach from both sides Analytical and objective assessment of situation / dispute Availability of proper records Give and take approach from both sides.