It is a process of solving industrial conflicts between management and employees.

1. Prof. (Dr.) Ritu Gandhi Arora, DAV Institute of
Management, Faridabad 1

2. Technique that has been adopted by union and
management to reconcile their conflicting interests.
It is called collective because the employees, as a
group, select representatives to meet and discuss
differences with the employer.
The negotiations for collective bargaining require joint
sessions of the representatives of labour and
management.
Prof. (Dr.) Ritu Gandhi Arora, DAV Institute of
Management, Faridabad 2

3. Cont…
 “ It is a process of accommodation between two
institutions which have both common and
conflicting interests.”
Harrison
 “Collective bargaining takes place when a number of
work people enter into a negotiation as a bargaining
unit with an employer or group of employers with
the object of reaching an agreement on the
conditions of the employment of the work people.”
Richardson
Prof. (Dr.) Ritu Gandhi Arora, DAV Institute of
Management, Faridabad 3

4. Characteristics
 Two way process
 Agreement & Mutual
 Continuous process
 Group Action
 Flexible
 Fluidity & ample scope for a compromise for a mutual give & take before
the final agreement is reached
 Dynamic & Static
 Not a Competitive process but a Complementary process
 It is an art, an advanced form of human relations.
 It is a device and a procedure used by wage earners to safeguard their
interests.
 Industrial democracy at work- joint formulation of company policy on all
matters which directly affects the workers
Prof. (Dr.) Ritu Gandhi Arora, DAV Institute of
Management, Faridabad 4

5. Objectives & Significance
 It is a technique that has been adopted by unions &
management for compromising their conflicting interests.
 It plays a significant role in improving the labour-
management relations and in ensuring industrial harmony.
 It helps in easing out many minor differences and there are
many instances in which even some major disputes are set to
be settled without any work stoppage or outside intervention.
 It provides a climate for smooth progress.
 It ensure that managements do not take any unilateral
decision.
 It develops a sense of responsibility and of self respect among
the workers and is a guarantee towards wage protection etc.
Prof. (Dr.) Ritu Gandhi Arora, DAV Institute of
Management, Faridabad 5

6. Advantages of Collective Bargaining
 To workers:
 Economic goals: Wages , Hours of work, Working
conditions, Fringe benefits
 Non-Economic goals: Worker’s satisfaction with his job,
Protection of the Union as a growing institute(right to
union)
 To Management:
 Control of the organisation,
 Maintaining its ability to manage with a high degree of
flexibility and efficiency of operation
 Control of hiring, promotion, discharge, lay off
 Personnel techniques of management
Prof. (Dr.) Ritu Gandhi Arora, DAV Institute of
Management, Faridabad 6

7.  Lay down fair rates of wages and norms of
working conditions.
 Achieve an efficient operation of the plant.
 Promote the stability and prosperity of
industry.
 Bring social change through acceptable
solutions.
Prof. (Dr.) Ritu Gandhi Arora, DAV Institute of
Management, Faridabad 7
Advantages To Both The Parties

8. The Process Of Collective Bargaining
 Composition of the Negotiating Team:
Representatives of employers and employees;
 Make a good bargaining;
 Maximum continuity of talks;
 Develop a problem solving attitude;
 Encourage Leadership;
 Bring in other managers
Prof. (Dr.) Ritu Gandhi Arora, DAV Institute of
Management, Faridabad 8

9. Tactics Of Bargaining
Arnold Campo suggests that the following procedure
should be adopted in negotiation
A-For Union & Management-
 Be friendly in negotiation. Introduce everybody.
 Be willing to listen. There would be time enough for
you to worry about things and say “no”, after you
have heard all the facts.
 Give everyone an opportunity to state his position
and point of view.
 Know something about the personal history of the
other party’s representatives.
Prof. (Dr.) Ritu Gandhi Arora, DAV Institute of
Management, Faridabad 9

10.  Always bear in mind the fact that you to do what is
right and fair.
 Both parties should strive to maintain an objective
approach to a problem or grievance.
 Do not attempt to guide the discussion along a
straight line which goes straight to the solution of
the problems.
 Define each issue clearly and unambiguously or
detail in the contract to ensure greater flexibility.
 Avoid Sharp practices.
Prof. (Dr.) Ritu Gandhi Arora, DAV Institute of
Management, Faridabad 10

11. B-For the management-
 The management must, at the outset, make sure
that the labour it is going to negotiate with, are
really the representatives of the workers.
 Don’t use lawyers as negotiators unless they
intimate knowledge of industry relations.
 Don’t limit contracts with the union to
controversial subjects, but consider such matters
as are of common interest to both.
Prof. (Dr.) Ritu Gandhi Arora, DAV Institute of
Management, Faridabad 11

12. 3-Follow-up Action- The collective bargaining should
be printed and circulated among the employees they
can know the reality about it. What has been agreed
upon between management and represent of union
meetings of supervisors should be called with
effectively.
A-Contract Management
When the process of a negotiation has been completed, it
is the time to sign the contract, the terms and
conditions, which must be observed by both the
parties. Once an agreement is signed, both the
management and trade unions are required to honor it
in letter and sprit, Smith has rightly observed “ An
agreement is merely the frame work for everybody
relationships…. The bargaining is carried on daily.”
Prof. (Dr.) Ritu Gandhi Arora, DAV Institute of
Management, Faridabad 12

13. For Management-
 The management should be available for open
discussion/ conferences with worker’s
representatives so that it may acquire first hand
knowledge of the changing attitude and problems of
its employees.
 Give credit to the trade union for anything worth
while achieved by it.
 The management should avoid paternalism and
strive to treat the trade union representatives and its
employees as equals.
 Many restrictive practices, and what appear to be
unreasonable demands of the workers or their
representatives, will disappear if the management
strives to give regular employment to its workers.
Prof. (Dr.) Ritu Gandhi Arora, DAV Institute of
Management, Faridabad 13

14. For Trade Unions-
 That is the responsibility of the trade unions
that their members understand terms of the
agreement, it has reached with the
management.
 The union representatives should make
themselves available for a conference whenever
they are required to do so by the management.
Prof. (Dr.) Ritu Gandhi Arora, DAV Institute of
Management, Faridabad 14