INTRODUCTION TO CB
CB is the process of discussion and negotiation between
two parties, may be trade unionists, labor unionists,
Its one type of agreement upon a work between them.
SIDNEY & BEATRICE WEBB were the first to use the term
COLLECTIVE BARGAINING in 1891
According to Encyclopedia of Social
Science, “Collective Bargaining is a process of
discussion and negotiation between two parties
one or both of them is a group of persons acting in
ILO considers Collective Bargaining as a
“Negotiations about working condition and terms of
employment between an employer and a group of
employees or one or more employees.”
1-Collective: all the workers collectively bargain for their common
interest and benefits.
2-Strength: both the parties bargain from a position of equal
3-Flexible: It has sufficient flexibly since no party can afford to be
inflexible and rigid in such situation.
4-Voluntary: Both the parties come to negotiating table voluntarily
in order to have meaningful dialogue on various troubling
5-Continuous: It is a continuous process.
6-Dynamic: dynamic process because the way agreements are
arrived at the way they are implemented and the mental make
up of parties involved keeps changing.
7-Power relationship: workers want to gain maximum from mgt ,
and mgt wants to extract the maximum from workers by
offering as little as possible.
Improvement in the condition of workers
Check on the autocracy in the industry.
Promotion of lasting industrial peace.
Conducive to Managerial Efficiency:
contribute towards improving managerial
Development of the Industrial Rules
Significance for society and Economy
PURPOSE OF COLLECTIVE BARGANING
Brings parties closer
Develops better understanding, industrial peace
Resolve conflict and differences
Develop self respect
Bring social change through acceptable solutions
Guarantees the right and responsibilities at the
Formulate terms and conditions under both parties
will work together.
1. CONJUNCTIVE/ DISTRIBUTIVE BARGAINING
They try to settle economic issues such as
wages, benefits, bonus etc. though a zero
Where my gain is your loss and your gain is
2. CO-OPERATIVE BARGAINING
When both parties realizes the importance of
condition and comes to a mutual
understanding where workers are ready to
cut down wages and management brings
new technology to improve condition and
invest more on marketing efforts in a phased
3. PRODUCTIVITY BARGAINING
Here wages and benefit are linked up with
A standard productivity index is finalized
And through negotiation it is finalized.
4. COMPOSITE BARGAINING
Here labor bargains for wages as usual but
goes a step further demanding equity in
matters relating to work norms, employment
levels, environment hazards
UNITS & LEVELS OF COLLECTIVE BARGAINING
Plant or establishment level: A collective agreement at plant level
is reached only for the plant for which it has been drafted and its
scope and extent are limited only to that particular unit or
Local level: one employer or a group of employers or more
employer’s association on one side and one or more unions
established at the plant, locality, region ,industry, national level
Region/area level: between industry & one or more union
established at plant, region , national level on the other
Industry level :Several units in the same industry band together
and form association, which negotiate with union having similar
National level: representative of union and employer
COLLECTIVE BARGAINING PROCESS
Preparing for negotiation
Reaching the agreement
Ratifying the agreement
Administration of the agreement