This document discusses collective bargaining, which is defined as the process where worker wages, benefits, and employment conditions are negotiated between employers and workers, typically represented by a union. Key points covered include: - Collective bargaining involves group negotiations through representatives to reconcile employer and employee interests. - It provides a flexible process for regulating employment terms that gives workers a voice and builds trust between parties. - Important factors for successful collective bargaining are equal bargaining power between parties, mutual confidence, and a cooperative approach.

1. COLLECTIVE
BARGAINING

2. INTRODUCTION

3. CONCEPT
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 f
them.

4. COLLECTIVE BARGAINING =
COLLECTIVE BARGAINING
GROUP ACTION
THROUGH ITS
REPRESENTATIVES
HANDLING OR
NEGOTIATIONS
+

5. • Process involving discussions and negotiations
• ‘collective’ – group
• 'bargaining' – proposals and counter proposals
• to reconcile their conflicting interests
• is a flexible approach

6. DEFINITION
• 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 or
agreement, which specifies the nature of
employee-employer union relationship”.
– FLIPPO

7. EVOLUTION
• Coined by Sydney and Beatrice Webb
• Industrial Revolution – Great Britain
• The Indian Scenario:
– Gandhiji - the leader of the Ahmedabad textile
workers
– Idea gathered interest only after the Second World
War
– GOI took steps like setting up of machinery for
negotiations, conciliation and arbitration.

8. CHARACTERISTICS
 GROUP ACTIVITY
FLEXIBILTY
WIN-WIN SITUATION
BUILDS RELATIONSHIP
AN ART AND A SCIENCE

9. NEED
• Collective Bargaining provides platform for mgmt &
employees which places them at par so far as negotiations
are concerned. Therefore, any outcome of the negotiation
is perceived as mutually beneficial to each other & has
better acceptability among them.
• It is a pragmatic & democrative process for regulating the
terms & conditions of employment in which employees feel
a part of decision making process. This feeling develops
better understanding among them and this increases trust
& mutuality of interests with the organization
•

10. • Collective bargaining provides opportunity
for speedy implementation of decisions
regarding terms of employment as both
parties are involved in decision making
process. A participative decision making ,
particularly on issues of continuous nature,
provides in-built mechanism for
implementation of decisions

11. IMPORTANCE
a) IMPORTANCE TO EMPLOYEES:
 Collective bargaining develops a sense of self respect and
responsibility among the employees
 it increases strength of the workforce, thereby increasing
their bargaining capacity as a group.
 It increases productivity and morale of employees.
 it also discourages unilateral actions by employer.
 It helps in securing a prompt and fair settlement of
grievances.

12.  It provides flexible means for adjustment of wages and
employment conditions of economic and technological
change in industry, as a result of which the chances of conflict
are reduced
IMPORTANCE FOR EMPLOYERS:
 It becomes easier for mgt. to resolve issues at the bargaining
level rather than taking up complaints of individuals.
 Collective bargaining tends to promote a sense of job security
among employees and thereby tends to reduce the cost of
labour turnover to management.
 It opens up the channel of communication between the
workers and the mgt. and increases workers participation in
decision making.

13. ESSENTIAL CONDITIONS FOR SUCCESS
OF COLLECTIVE BARGAINING
 Equal bargaining power
Representative union’
Mutual confidence
Proactive approach
Quick disposal
Desire to settle

14. Desire to settle
Union cooperation
Mutual respect
No unfair practices
Unanimity among workers
Positive attitude
Give and gain
Respect previous agreements
Beyond salaries

15. PROCESS OF COLLECTIVE BARGAINING

16. ENVIRONMENT
PREPARING FOR NEGOTIATIONS
NEGOTIATING
BARGAINING ISSUES
NEGOTIATION
BREAKDOWNS
ADMINSTRATION OF THE
AGREEMENT
RATIFYING THE AGREEMENT
REACHING THE AGREEMENT
OVERCOMING
BREAKDOWNS
YES
NO

17. CAUSES FOR FAILURE OF COLLECTIVE
BARGAINING
 Attitude of management
Political interference
Multiplicity of trade union
Unequal strength of parties
Lack of objectivity in addressing and handling
grievance