PRESENTATION collective bargain


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PRESENTATION collective bargain

  1. 1. Presented by : Vijay kamath
  2. 2. Meaning: Collective bargaining is a procedure by which the terms andconditions of workers are regulated by agreements between theirbargaining agents and employers.It is called collective because both, the employer and workers act asgroup rather than as individuals, and describes bargaining because themethod of reaching an agreements involves approach proposal andcounter proposals, offers and counter offers and a give and takeapproch. collective Bargain has been described by Dubin as “tae great socialinvention that has institutionalized industrial conflict” and by Dovancommission as “a right which is or should be the prerogative of everyworker in a democratic society”.
  3. 3. There are three concepts of collective Bargain with different emphasisand stress, namely , Marketing concept :The marking concept are means by whichlabors are bought and sold to the market place. Government concept: This concept on other hand, regards theinstitution as a constitutional system or rule making process. Indusial relations : It views the relation ship between participativedecision making and the employees and employers, on which boththe parties have vital interest.Industrial bargaining has two approaches Unilateral approach: Under this employer only decides theterms and condition of employment. Bilateral approach: In this approach employer and employeenegotiate with each other.Tripartite approach: There third party also intervenes to facilitatesettlement.
  4. 4. Features of collective bargaining• collective Bargain is process in which terms and conditions of employment are determined by both by the employer and employee.• He term collective Bargain is normally on the employees side• collective Bargain emanates from employment• Determines the terms and condition of employment• Mainly based on working condition• It is dynamic and it changes• government intervention
  5. 5. Condition for success of collective Bargain:•The union participating in the collective bargaining process must be strong,democratic and enlightened.•One of he principles for establishing and promoting collective bargaining is ogive voluntary recognition to trade parties .•there should be willingness to give and take by both the parties and intereston both to reach an agreement and to make collective bargain work.•The whole atmosphere of collective Bargain gets vitiated, relation becomebiter aan stained and negotiaions more difficult if one or both the partiesenlarge in un fair trade praises.•Effective collective Bargain is understanding both employer and he worker.• collective Bargain cannot be attained without maturity of leadership at boththe sides of bargaining table.•Difficult to set up the table of authorizes who are authorize to negotiate
  6. 6. Types of collective BargainConjunctive Bargaining:Cooperative Bargaining:Productivity Bargaining:Composite Bargaining:
  7. 7. Theories of collective BargainWalton and McKersie TheoriesWalton and McKersie view collective Bargain as four sub process-distributive bargaining ,integrative bargaining,Attitudinal structuring, and intra organizational bargaining . distributive bargaining applies to situation in which themanagement and union are in conflict.integrative bargaining are refers to bargaining issues that are notnecessarily in conflict with other party.Attitudinal structuring is the mean by which bargaining partiesfriendliness with,rust,respect,and cooperation.intra organizational bargaining focuses interaction betweenmanagement and union. These 4 process helps to shape the final outcome of collectiveBargain negotiations as well as the long term relation ship betweenunion and management.
  8. 8. • Bargaining range theoryBargaining range theory has its root with the late prof A C Pigu’s Theory . Pigus bargaining range theory explains the process by which the labour and management establish upper and lower wage limits within which a final settlement is made. The union upper limit represents the union’s ideal wage. then management will offer a wage that is well bellow the at acceptable to union.. From these two extremes, the union and management term will proceed through a series of proposals and counter praposals.The union will gradually reduce is wage demands while employer will raise the offer. Both sides, have established limits as how far they are willing to concede, and in the process establish a sticking to point. This method gives exact settlement point which depends on he skills and bargaining of management and union.
  9. 9. Chamberlain ModelThis model focus on determinants of bargaining power and theways in which changes in these determinants lead tosettlement in the majority of collective Bargain power as theability to secure your opponents agreement to your terms.thus union bargaining is defined as:
  10. 10. If the management estimates tat it is or costly toagree than disagree ,management will choose todisagree and there by reject the union terms and viseversa. once again if union believes that it is more costly toagree than disagree with managements offerwhenever denominator grater than numrator in eq 2the union will reject the offer.
  11. 11. Hicks bargaining modelHicks bargaining model focuses on the length and costs of workstoppages Hicks proposed that union and management negotiatorsbalance the costs and benefits of work stoppage when makingconcessions at the bargaining table. Each side makes concessions toavoid a work stopage.The central idea is that there is a functionalrelation between he wage that one or the other party will accept andthe length of he stricken hat necessary to establish that wage.Management will fix the wage if union is not exist. The main difference between hicks model and bargaining rangemodel is that the Hicks model pinpoints a precise wage settlementwhile the range theory does not
  12. 12. Importance of collective BargainTo establish union recognition as an authority in the workplace.To raise workers standard of living and a better share incompanies profits.To express in practical terms, the workers desire to be withdue respect, and o achieve democratic participation in decisionaffecting their working conditions.To establish orderly practices for sharing in these decisionsand o settle disputes which may arise in day today life of thecompany.To achieve broad general objectives such as defending andpromoting he workers interests.