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Collective bargaining& WPM


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  • 1. Definition• CB is a process of negotiations between employersand a group of employees aimed at reachingagreements• Typical issues covered in a labor contract are hours,wages, benefits, working conditions, and the rules of theworkplace.• Once both sides have reached a contract that they findagreeable, it is signed and kept in place for a set periodof time, most commonly three years.• The parties involved in negotiations referthe result as a Collective BargainingAgreement (CBA) / CollectiveEmployment Agreement (CEA).
  • 2. Features:1.It is a collective process.The representatives of both workers and managementparticipate in bargaining.2. It is a continuous process. It establishes regular and stablerelationship between the parties involved.3. It is a flexible and dynamic process. The parties have toadopt a flexible attitude through the process of bargaining.4. It is a method of partnership of workers in management5.Plays a vital role in settling and preventing industrialdisputes.
  • 3. Collective Bargaining Process• In many companies, agreements have a fixed timescale and a collective bargaining process will reviewthe procedural agreement when negotiations takeplace on pay and conditions of employment.
  • 4. Collective bargaining process comprises of five coresteps:• Prepare: This phase involves composition of a negotiationteam. The negotiation team should consist of representativesof both the parties with adequate knowledge and skills fornegotiation.• Discuss: The parties decide the ground rules that will guidethe negotiations.
  • 5. • Propose: This phase could be described as brainstorming‘. Theexchange of messages takes place and opinion of both the partiesis sought.• Bargain: This stage comprises the time when what ifs‘ andsupposals are set forth and the drafting of agreements take place.• Settlement : This stage is described as consisting of effectivejoint implementation of the agreement through shared visions,strategic planning and negotiated change.
  • 6. Problems of Collective BargainingI. Trade unions are having political affiliations, theycontinue to be dominated by politicians, who use theunions and their members to meet their political ends.II. There is a lack of definite procedure to determine whichunion is to be recognized to serve as a bargaining agenton behalf of the workersIII. There has been very close association between thetrade unions and political parties. As a result, tradeunion movement has leaned towards politicalorientations rather than collective bargaining
  • 7. Meaning of WPMWPM is a system of communication andconsultation, either formal or informal, by whichemployees of an organization are kept informedabout the affairs of an undertaking and throughwhich they express their opinion and contribute tomgt decisions.WORKER’S PARTICIPATION INMANAGEMENT
  • 8. WORKER’S PARTICIPATIONParticipation may be defined as taking part in sharing ofpower and status between the managers and the workers.Workers’ participation in management seeks to bridge this gapauthorizing workers to take part in the managerial process.Thus, workers’ participation in management means givingscope for workers to influence the managerial decisionmaking process at different levels by various forms in theorganisation.
  • 9. Objectives of WPM• Increasing productivity for the general benefit ofthe enterprise, the employees and thecommunity;• Giving employees a better understanding of theirrole in the working of the industry & of theproduction process; and• Satisfying the worker’s for self-expression, thusleading to industrial peace, better relations andincreased co-operation.
  • 10. Three groups of managerial decisions affect the workersof any industrial establishment and hence the workersmust have a say in it.•Economic decisions – methods of manufacturing,automation, shutdown, lay-offs, mergers.•Personnel decisions – recruitment and selection,promotions, demotions, transfers, grievance settlement,work distribution.•Social decisions – hours of work, welfare measures,questions affecting work rules and conduct of individualworker’s safety, health, sanitation and noise control.
  • 11. Forms of WPM• Informative & associative participation• Consultative participation• Administrative participation• Decision participation
  • 12. Ways of participation•Board level participation•Ownership participation•Complete control•Staff or work councils•Joint councils and committees•Collective Bargaining•Job enlargement and enrichment•Suggestion schemes•Quality circles•Empowered teams•TQM (Total Quality Management)•Financial participation
  • 13. Participative forums in India• Works committees;• Joint mgt. Councils;• Joint councils;• Unit councils;• Plant councils;• Shop councils;• Workers’ representative on the board of mgt;and• Workers’ participation in share capital.
  • 14. WPM in indian industries• Workers representatives have been appointedon boards of managements of few publicundertakings on a trial basis.• Hindustan antibiotics limited• Hindustan organic chemicals limited• National coal mines developmentcorporation.etc
  • 15. Reasons for failure of WPM• Ideological differences between the employer and theemployees regarding the degree of participation.• Failure to imbibe the spirit of participation by the parties• Multiplicity of participative forums• Lack of strong trade unionism• Illiteracy of workers• Non co-operative attitude of the working class• Delays in the implementation of the decisions of theparticipative bodies