The document discusses collective bargaining, which is a procedure that determines employee compensation and settles disputes during an agreement. It involves representatives of workers and management negotiating as equals to agree on terms of employment. The goal is to balance the interests of both parties and improve working conditions through an open dialogue process.

1. COLLECTIVE BARGAINING
Presentation
by
Prof.M.S.S.Varadan
Chairman
Om Consultants (India) Pvt. Ltd.
C O N S U L T A N T S
U N L O C K IN G P EO PL E P O T E N T I A L

2. Collective Bargaining is
• A procedure which determines the
quantum of compensation which
employees get
• A method of settling disputes during
the pendency of an agreement
2
C O N S
U N L O C K IN G
U L T A N T S
P EO P L E P O T E N T I A L

3. Nature of Collective Bargaining
• The ILO Convention No. 98 (1949)
Essential features of collective bargaining
 It is not equivalent to collective
agreements
 It is a method used by trade unions to
improve the terms and conditions of
employment of their members
 Restores the unequal bargaining position
as between employer and employee
3
C O N S
U N L O C K IN G
U L T A N T S
P EO P L E P O T E N T I A L

4. Nature of Collective Bargaining (Contd..)
• The ILO Convention No. 98 (1949)
Essential features of collective bargaining
o Where it leads to an agreement it modifies,
rather than replaces, the individual contract of
employment
o The process is bipartite, but in some developing
countries the State plays a role in the form of a
conciliator
o Employers use collective bargaining to improve
competitive edge based on labour costs
o The process is bipartite
4
C O N S
U N L O C K IN G
U L T A N T S
P EO P L E P O T E N T I A L

5. Main features of Collective Bargaining
• It is a group action as opposed to individual
action and is initiated through the
representatives of the workers
• It is flexible and mobile, and not fixed or
static
• It is a two party process
• It is a continuous process
• It is dynamic and not static
• It is industrial democracy at work
5
C O N S
U N L O C K IN G
U L T A N T S
P EO P L E P O T E N T I A L

6. Main features of Collective Bargaining
(Contd..)
• It is not a competitive process, but it is
essentially a complementary process
• It is an art, an advanced form of human
relations
• It is a relation of give and take
• It is a process of retreat without seeming to
retreat
6
C O N S
U N L O C K IN G
U L T A N T S
P EO P L E P O T E N T I A L

7. Main features of Collective Bargaining
(Contd..)
• It is a process of persuasion and reasoning
which may enable parties to arrive at some
amicable settlement or agreement
• It is a power relationship in which
management tries to retain its right to
manage and unions to safeguard their
interests so as to strengthen their hold over
the workers
7
C O N S
U N L O C K IN G
U L T A N T S
P EO P L E P O T E N T I A L

8. Conceptual Framework of Bargaining
Management’s
Bargaining
Characteristics Negotiation
External Process
Goal
Environment Bargaining Bargaining attainment
Structure Outcomes of Parties
and the
Union Admn. of Public
Organisational agreements
Characteristics

9. Issues of Bargaining
• Management rights
• Union Security
• Strikes and Lockouts
• Union Activities and responsibilities
• Wages and Salaries
• Working Hours and Working Conditions
9
C O N S
U N L O C K IN G
U L T A N T S
P EO P L E P O T E N T I A L

10. Issues of Bargaining (Contd..)
• Job rights and seniority
• Discipline, Suspension and discharge
• Grievance Handling and Arbitration
• Health and Safety
• Insurance and Benefit Programmes
10
C O N S
U N L O C K IN G
U L T A N T S
P EO P L E P O T E N T I A L

11. Major concerns of Unions and Management
• Unemployment
• Inflation
• Working Time
• Social Security
• New Technologies
• Flexibility
• Changes in practices
11
C O N S
U N L O C K IN G
U L T A N T S
P EO P L E P O T E N T I A L

12. Support of the Labour Administration for
successful collective bargaining
• Provide the necessary climate for it
• Not support a party in breach of agreements
• Provide for the settlement of disputes
• Bargain in good faith
• Absence of any external pressure
• Progressive & strong management consciousness
• There should be delegation of authority in the
negotiation process
12
C O N S
U N L O C K IN G
U L T A N T S
P EO P L E P O T E N T I A L

13. The Process of Collective Bargaining
Management
Union Claim Proposal
Negotiations
3rd Party
Referral
Collective
Agreement

14. Factors Affecting Bargaining Strength
External Support Economy
– Socio political
Company
Competitiveness
Solidarity / FACTORS
Commitment AFFECTING
BARGAINING Management
STRENGTH Strategy
Union
Organisation
Cost of
Settlement /
Labour Market Dispute