Industrial Management and Labor Relations

1. Gollis UNIVERSITY
Faculty: Social Science
Department: Human Resource Management
Course:. Industrial Management and Labor Relations
CH04
Collective Bargaining
Bashir M. Abdillahi
BBA, MBA

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Unite Content
o Definition and Mean
o Features of Collective Bargaining
o Factors affecting Bargaining
o Importance of Collective Bargaining
o Cons of Collective Bargaining
o Factors Preventing Collective Bargaining
o Levels of Collective Bargaining

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DEFINITION AND MEAN
Collective bargaining is the term used to describe a
situation in which the essential conditions of
employment are determined by bargaining process
undertaken by representatives of a group of workers
on the one hand and of one or more employers on
the other.”
Meaning of Collective Bargaining is a system and a
technique of resolving an industrial dispute through
negotiations between employers and the
representatives of employees without any help of a
mediator

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Cont..
Collective bargaining is a process in which the
representatives of a labor organization and the
representatives of organizational owners meet
and attempt to negotiate a contract or
agreement, which specifies the nature of
employee-employer relationship

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Cont..
The process of negotiating the terms of employment
between an employer and a group of workers. The
terms of employment are likely to include items such as
conditions of employment, working conditions and other
workplace rules, base pay, overtime pay, work hours,
shift length, work holidays, sick leave, vacation time,
retirement benefits and health care benefits

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Features of Collective Bargaining
 It is a collective process. The representatives
of both workers and management participate
in bargaining
 It is a continuous process. It establishes
regular and stable relationship between the
parties involved. It involves not only the
negotiation of the contract, but also the
administration of the contract.
 It is a flexible process. The parties have to
adopt a flexible attitude through the process of
bargaining.

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Subject Matter of collective bargaining
 Rights and responsibilities of the management
and of the trade union
 Wages, bonus, leave, retirement benefits, and
terms and conditions of service
 Grievance re-address procedure
 Methods and machinery for the settlement of
possible future disputes.

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Economy
Labor market
Governmenta
l
Policy
Competitors
Organization
al resource
Commitment
Trade Union
Factors affecting Bargaining

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Importance of Collective Bargaining
A. Importance to employees
 Collective bargaining develops a sense of
self respect and responsibility among the
employees
 It increases the strength of the workforce,
so, increasing their bargaining capacity as
a group
 Collective bargaining increases the
morale and productivity of employees.

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Cont...
 It restricts management’s freedom for
arbitrary action against the employees
 Increases collective bargaining and
strengthens the trade unions movement.
 The workers feel motivated as they can
approach the management on various
matters and bargain for higher benefits.
 It provides a flexible means for the
adjustment of wages and employment
conditions

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Cont..
B. Importance to employers
 It becomes easier for the management to
resolve issues at the bargaining level
rather than taking up grievances of
individual workers.
 It is promote a sense of job security among
employees and to reduce the cost of labor
turnover to management
 Collective bargaining plays a vital role in
settling and preventing industrial disputes.
 opens up the channel of communication
between the workers and the management

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Cont..
C. Importance to society
 Collective bargaining leads to industrial
peace in the country
 It results in establishment of a harmonious
industrial climate which supports which
helps the peace of a nation’s efforts towards
economic and social goals
 The discrimination and exploitation of
workers is constantly being checked.
 It provides a method or the regulation of the
conditions of employment of those who are
directly concerned about them.

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Cons of Collective Bargaining
 Management’s authority and freedom are
much more restricted by negotiated rules
 Creates separation between employees and
managers
i. It increases poor communication
ii. Demotivation
iii. Feeling humiliating

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Cont..
 Increases and requires longer time needed
for decision making
 More difficult for employees at smaller
campuses to have their voices heard.
 Restricts management’s ability to deal
directly with individual employees.

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Cont.…
 Increased dependence on the private sector
for certain services, particularly those
requiring technological competence, may be
compromised.

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Importance of Works Participate Management
 It gives great psychological value
 Peace and harmony between workers and
management.
 Participation makes them more responsible
 They become more willing to take initiative
and come out with cost-saving suggestions
and growth-oriented ideas
 They view the decisions as their own and
are more enthusiastic in their
implementation.

17. Factors Preventing Collective Bargaining

Employer’s Reluctance

Non-Recognition

Weak Unions

Political Interference

Poor justice institutions.

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Levels of Collective Bargaining
Bargaining levels are the various levels or
hierarchies at which collective bargaining is
done to resolve the dispute between the
employer and trade union. the hierarchical
levels at which the bargaining takes place,
the bargaining levels are explained below

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Cont..
 Organization level
 Regional level
 National level.