Collective bargaining is a process of negotiation between employee representatives, usually a trade union, and employers over terms of employment such as wages, working hours, and safety conditions. It aims to reach a collective agreement to regulate these terms. Successful collective bargaining requires certain prerequisites like sufficient organization of workers, freedom of association, and mutual recognition between employers and unions. The process involves single-party or multi-party negotiations initiated through written notice to reach a written collective bargaining agreement signed by both sides. Mediators can assist parties if negotiations become stalled.

1. Question: Define collective bargaining.Discuss the pre-
requisites of successful collective bargaining.
Describe the process of collective bargaining.
Answer:
Collective bargaining is a process of negotiation
between employers and a group of employeesaimedat
reaching agreements to regulate working conditions.
The interests of the employeesare commonly
presented by representatives of a trade union to which
the employees belong.The collective agreements
reached by these negotiations usually set out wage
scales, working hours, training, health and safety,
overtime, grievance mechanisms,and rights to
participate in workplace or company affairs.[1]The
union may negotiate with a single employer (who is
typically representing a company's shareholders)or
may negotiate with a group of businesses,depending
on the country, to reach an industry wide agreement.A
collective agreementfunctions as a labor contract
between an employer and one or more unions.
Collective bargaining consists of the process of
negotiationbetween representatives of a union and

2. employers (generally representedby management, or,
in some countries such as Austria, Sweden and the
Netherlands,by an employers'organization)in respect
of the terms and conditions of employmentof
employees,such as wages,hours of work, working
conditions, grievance procedures,and about the rights
and responsibilitiesof trade unions. The parties often
refer to the result of the negotiationas a collective
bargaining agreement(CBA) or as a collective
employmentagreement(CEA).
Pre-requisites of successful collective bargaining:
7
Important Prerequisites for a Successful Collective
Bargaining By Smriti Chand Business Management
Advertisements :Important Prerequisitesfor a
Successful Collective Bargaining are listed below:(1) The
parties must attain a sufficientdegree of organization.If
the workers’organizationis weak, employers can say

3. that it does not representthe workers and will refuse to
negotiate with it. Unless the workers are able to form
strong and stable unions, collective bargaining will not
be successful.(2) Freedomof associationis essential for
collective bargaining.Where there is no freedomof
association,there can be no collective bargaining.
Freedom of associationimplies that the workers as well
as the employerswill have the right to forman
organizationof their own to protect their interests.(3)
There should be mutual recognitionbetweenboth the
groups. Collective bargaining cannot begin if the
employers do not recognize the workers’organization.
The conflict of interests makes the two groups hostile to
each other. They must recognize each other and realize
that adjustment and understanding is essential for the
achievementof organizational goals.(4)There must
exist a favourable political climate,essential for
successful collective bargaining. If the government
encourages collective bargaining as the best method of
regulating conditions of employment,it will be
successful.Where the governments restricttrade union
activities,there can be no collective bargaining.(5)
Agreementmust be observedby those to whom they

4. apply. The workers’organizationmust be strong
enough to exercise its authority over its members.If the
trade union has no power over its members,collective
bargaining will not be effectivelyimplemented.(6)A
give and take policy must prevail in the organization.
The difference betweentwo parties can be adjusted
only by compromise so that an agreementcan be
reached. Neither side should be too rigidon its demand.
Their attitudes should be flexible and both sides should
be ready to give up some of its demands. Unions should
not rigidly insist upon unreasonable demands and
should be ready to reduce its demands to come to an
agreement.(7)Sometimes unfair labour practices are
resortedto by both the employers and the trade
unions. These will restrict the developmentof collective
bargaining. Unfair labour practices should be avoided
by both the sides, as this will create an atmosphere of
goodwill.

5. Process of collective bargaining:
Single-party
bargaining:
Single-party bargaining may generally be
initiated by:*.a union or an employer,within 60 days
before the expiry of an existing collective agreement. To
calculate the 60 days, the union or employer initiating
bargaining needs to lookat the employees whose work
is coveredby the proposedcollective agreement,and
ask:*.Are any of those employees coveredby an
existing collective agreement?*.If so,on what future
date does that existing collective agreementexpire,and
how many days will pass before that date?*.If there is
no existing collective agreement,a union can initiate
bargaining at any time. An employer may only initiate
bargaining if there is, or has previously been, a
collective agreementcovering at least some of the
employees whoseworkis coveredby the proposed
collective agreement.

6. Multi-party bargaining:
Multi-party bargaining may
generally be initiated by:*.a union or unions, provided
that:*.at least one of the existing collective agreements
will expire within 60 days, and*.all the other collective
employmentagreements will expire within 120
days.*.an employer or employersprovidedthat:*.at
least one of the existing collective agreements will
expire within 60 days, and*.all the other collective
employmentagreements will expire within 120 days
.Calculating the 60 day or 120 day period.A union or
employer which is initiating bargaining needs to:*.look
at those employees whose workis coveredby the
proposedcollective agreementand*.ask whether any of
those employees are coveredby the collective
agreement.If any employeesare coveredthe union or
employer needs to find out:*.when the existing
collective agreementwill expire and*.how many days
will pass before that date. Where there is no existing
collective agreement.A union can initiate bargaining at
any time. An employer can initiate bargaining but only
if:*.there is, or has previously been,a collective

7. agreementand*.it covers some employeeswhose work
is coveredby the proposedcollective agreement.
Employer opt out. An employer can opt out of
bargaining for a multi-employercollectiveagreement
(MECA). They can opt out where:*.a new MECA is
proposed,*.a current MECA is being renegotiated
or*.where employersare cited to join an existing MECA.
However the ability to opt out of bargaining only
applies at the time bargaining is initiated. An employer
must give written notice to all other parties within 10
days of getting notice of initiation. Where an employer
opts out, the employer or the union can then initiate
bargaining for a single employer collective agreement.
Even if an employer opts out, they can still be cited as a
party to any future multi-party bargaining. Other
requirements for collective bargaining.There are a
number of other requirements that must be met by
unions and employers when initiating collective
bargaining.*.Unions must, if initiating multi-party
bargaining, ballot their members prior to initiating
bargaining. If an employer or employers initiate multi-
party bargaining, unions may decide to ballot their
members.*.Bargaining must be initiated by written

8. notice identifying the intended employer and union
parties and the intended coverage (i.e.type of work) of
the collective bargaining.*.Where only one employer is
identifiedas an intended party to the bargaining, the
employer must, within 10 days (or sooner if possible)of
initiating bargaining or receiving notice,advise union
and non-union employeeswhose work comes within
the intended coverage.*.Where two or more employers
are identifiedas intended parties to the bargaining, the
employers must,within 15 days (or sooner if possible)
of initiating bargaining or receiving notice,advise union
and non-union employeeswhose work comes within
the intended coverage.*.Employers have the right to
request consolidationof bargaining when facing
separate notices fromtwo or more unions relating to
similar coverage.Employersmust do so within 40 days
of receiving the firstnotice.*.At the commencementof
bargaining, a union must state what membership
ratificationprocess it will followprior to signing any
resulting collective agreement. What must be in a
collective agreement? A collective agreementmust be
in writing and be signed by each union and employer.It
must contain:*.a coverage clause*.in most cases, a

9. provisionsetting out how the employer will protect
employees ina sale,transfer,or contracting out of their
business (see restructuring section for further
information)*.aplain-language explanation of services
available to help sort out employmentrelations
problems*.aclause stating how the agreementcan be
varied*.the expiry date (or the event that will trigger
expiry)*.a provisionthat complies with the Holidays Act
requirementfor employees to be paid at least time and
a half for work on public holidays.Mediators can assist
Mediators from MBIE are available to help parties
during differentphases of collective bargaining.Their
services are free of charge. Mediators can provide
assistance:*.when bargaining is being set up by the
parties*.when the bargaining process arrangementis
being negotiated*.when negotiations are
stalled*.during the final settlementphase. Mediators
can also:*.provide the parties with relevant
information*.helpwith bargaining*.suggestoptions or
provide recommendations for resolving any issues the
parties disagree on. For assistance froma mediator,
contact the MediationService directly.Resolving a
collective bargaining dispute Here is a flowchart of the

10. key steps involvedin resolving a collective bargaining
dispute. Bargaining fee arrangements In some
circumstances, the parties to collective bargaining can
agree to a bargaining fee arrangement. Employment
Relations Authority can assist in certain circumstances
Where collective bargaining runs into difficulties,one or
more of the bargaining parties can ask the Employment
Relations Authority to assist them resolvetheir
differences ("facilitation").The Authority can only
facilitate bargaining in certain circumstances. These
circumstances are where:*.there has been a serious and
sustained breach of good faith that has undermined the
collective bargaining*.the bargaining has been unduly
protracted and extensive efforts to resolvethe parties'
differences have failed*.there has been a protracted or
acrimonious strike or lockoutaction, or*.a strike or
lockout has been proposed that would substantially
affect the public interest. If the Authority agrees to
assist the parties, the Authority member providing the
facilitationwill decide what process will be used to
assist bargaining. The facilitation will be conducted in
private. Bargaining continues during facilitation,and
employers and employees are not prevented fromusing

11. strikes and lockouts.At the end of the facilitation
process,the authority can make recommendations
about one or both of the following:*.The process the
parties should use to reach agreement.*.The terms and
conditions of the collective agreement. The parties do
not have to followthe Authority's recommendations,
but they must consider the recommendations in good
faith and cannot reject the recommendations without
firstconsidering them. The Authority may choose to
make their recommendations public in the interests of
encouraging a settlement.Remedy for serious and
sustained breach of good faith A party to the bargaining
may apply to the Employment Relations Authority to fix
the provisions of a collective agreement.The Authority
may, however,only fix the provisions of a collective
agreementwhere:*.there has been a serious and
sustained breach of good faith in relationto the
bargaining*.other alternatives have been exhausted
and*.fixing the provisions of the collective agreementis
the only effective remedy available.
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