Collective bargaining is a process where worker representatives and management negotiate the terms and conditions of employment. It aims to establish fair wages and working conditions to prevent disputes while allowing organizations to achieve their goals. The key aspects of collective bargaining include voluntary negotiation between unions and management, establishing uniform employment terms, and resolving grievances to maintain stable labor relations. Both parties must approach negotiations with good faith, trust, and a willingness to find solutions that benefit workers and organizations.

1. COLLECTIVE BARGAINING

2. • Collective Bargaining is an important
instrument in the hands of the workers to
improve their conditions of employment.
• It is a technique adopted by the unions &
management to resolve their conflicting
interests.
• CB as an essential component of productive IR
is being increasingly recognized in India.

3. Meaning of CB
• Collective bargaining is a process, a technique,
a device to protect the interest of the
employee & employers to determine the
employment conditions, to fix wage and salary
and achieve the objectives of the organization.

4. Definitions
• According to Michael J. Jucins “Collective
bargaining refers to a process by which
employers on the one hand and
representatives of the employees on the
other, attempt to arrive at agreements
covering the conditions under which
employees will contribute and be
compensated for their service.”

5. • According to Edwin B. Flippo “Collective
bargaining is a process in which the
representatives of labour organization and
representatives of business organization meet
and attempt to negotiate a contract or
agreement, which specifies the nature of the
employee employer union relationship.”

6. Analysis of the definitions
a) A process by which employer and employee
make an attempt for understanding each
other.
b) A technique of reaching agreement or
understanding.

7. c) Decides the terms and conditions under
which they have to work to achieve the goals
of the organization.
d) Such negotiation will result in determining
employment conditions, wages to be paid etc.

8. Characteristics of Collective
Bargaining
(i) It is a group or collective action as opposed to
individual actions and is initiated through the
representatives of employees.
(jj) It is flexible and not static.
(iii) It is a two way process.
(iv) It is a continuous process
(v) It is dynamic but not static as this concept is
growing, expanding and changing in view of
attitudes, opinions and perceptions of both the
parties.

9. (vi) It ensures democracy at work place.
(viii) It is an art as it is an advanced form of
understanding and maintaining human
relations.
(ix) It is a voluntary process. Both workers and
management voluntarily participate in the
negotiations, discuss and arrive at a solution.

10. Importance of Collective Bargaining
• Collective bargaining plays a vital role in setting
and preventing industrial disputes.
(i) Increase the economic strength of unions and
management;
(ii) Establish uniform conditions of employment
with a view to avoiding industrial disputes and
maintaining stable peace in the industry;
(iii) Secure a prompt and fair redressal of
grievances;
(iv) Avoid interruptions in work which follow strikes,
go-slow tactics and similar coercive activities;

11. (v) Lay down fair rates of wages and norms of
working conditions;
(vi) Achieve an efficient operation of the plant;
and
(vii) Promote the stability and prosperity of the
industry;

12. Role of collective bargaining
• From the management point of view
• The main object – to get the work done at
minimum cost.
• Possible only with maximum utilization.
• CB is a device to get & promote co- operation
• A best remedial measure to counter strikes &
go-slow tactics

13. From the labour point of view
• Labour has poor bargaining power.
• A worker has no existence individually.
• If united it is possible to protect their interests
against exploitation.
• CB imposes certain restrictions on the
employer.
• Better conditions of employment & better
rates of wages.

14. Government point of view
• An amicable agreement can be reached
between employer & employee for
implementing the legislative provisions.

15. Principles of Collective Bargaining
• Principles to be followed by both unions &
Management
• TU leaders should be given an opportunity for
putting their demands, needs & complaints.
• Both unions & management should realize
that the CB is a proper method for taking
more wiser decisions.
•

16. • Both parties should have a genuine spirit of
mutual trust, good will and bargaining.
• There should be honest, competent and
responsible leaders for concluding
agreements.

17. Principles to be followed by
management
• Management should adopt an appropriate
labour policy & take necessary precautions for
its being followed by all employees.
• The Trade unions should be accorded
recognition as bargaining unity.

18. • Managements dealing with TU should be good
& responsible
• Management should make efforts to redress
the grievance.
• Management should enter into negotiation
with the union having majority
representation.

19. Principles to be followed by union
• Use of strike as a last resort
• The unions should strive for raising the morale
of their members.
• The union should not put up such demands as
are beyond the paying capacity of the
establishment.

20. Essentials conditions for the success
of collective bargaining
• The willing acceptance by the management to
recognize representative union.
• Both the parties must have mutual confidence,
good faith & a desire to make CB machinery a
success.
• Management should not await the union to raise
problems but should make every reasonable
effort to prevent them from arising.
• Issues should be disposed in the same meeting.

21. • The parties involved in CB should be prepared
to give away something in order to gain
something.

22. The Collective Bargaining process
(Steps)
• I. Identification of the problem
• The nature of the problem influences the
whole process.
• Whether the problem is very important that it
is to be discussed immediately or it can be
postponed to some other convenient time.
• It also involves the selection of
representatives, period of negotiation. Both
parties should be clear about the problem.

23. II. Collection of data
• Collection of data in support of the problem is the second
step in the CB process.
At this step both labour & management should spend
considerable time collecting relevant data concerning-
• Grievances, disciplinary actions, transfers & promotions,
lay-offs, overtime allowances, policies of unions & mgt.,
hours of work etc.
• This information can be collected by the mgt. from their
associations, central organizations, govt., & through
surveys.
• Former agreements covering wages, benefits, working
conditions, cost of living trends, wage rates, competitive
terms offered by the rivals in the field etc.

24. III. Selection of negotiators/
bargaining agent
• The success of CB depends upon the knowledge & skills
of the negotiators.
• Considerable time should be devoted for the selection
of the negotiators with requisite qualifications.
• Effective negotiators should have a working knowledge
of Trade Union principles, operations, economics,
psychology & labour laws.
• They should be good judges of human nature & be able
to get along with people easily. They must know when
to listen, when to speak, when to concede & when to
make counter proposals.

25. • Effective speaking, time management &
debating skills are very much essential for the
negotiators.
• If there is only one union in the organization,
that union is granted recognition to represent
the workers.

26. III. Negotiation
• It may be undertaken by a representative of
each party or by a committee.
• The negotiation committee may comprise
three to six members.
• The committee should be as small as possible
to avoid the difficulties. The chief spokesman
of the management committee shall act as the
chief negotiator.

27. • The success of negotiation depends upon the
extent of home work done by each party.
• They must analyze the information collected
carefully before they come to negotiation
table.
• Further the management should not depute a
low powered person.
• Management should classify & carefully
analyze the union demands.

28. V. Contract administration
• The last step in the collective bargaining
process is Contract administration.
• After the completion of negotiation both the
parties should sign the agreement the terms
of which must be sincerely observed by both
the parties.
• Both should honour the agreement.