2. Meaning of Collective
Bargaining
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 an arbitrator.
Collective bargaining is that arrangement whereby the
wages components of remuneration and conditions of
employment of workman are settled through a bargain
between the employer and the workman collectively
whether represented through their union or by some of
them on behalf of all of them.
3. It means bargaining between an employer and a bona fide
Labour Union.
Collective bargaining is made of 2 words
Collective : which implies group action through its
representatives
Bargaining : which suggests negotiating
Thus it implies, “collective negotiation of a contract
between the management’s representatives on one side and
those of the workers on the other.”
4. Collective Bargaining is a process in which the
representatives of a labour organization and the
representatives of the business organization meet and
attempt to negotiate a contract or agreement which specifies
the nature of the employee-employer union relationship
Edwin B.Flippo
Collective bargaining is a process of discussion and
negotiation between two parties, one or both of whom is a
group of persons acting in consent. The resulting bargain is
an understanding as to the terms and conditions under
which a continuing service is to be performed. More
specifically, collective bargaining is a procedure by which
employers and a group of employees agree upon the
conditions of work. Encyclopedia of Social Sciences
5. Characteristics
1. It is a group action and is initiated through the
representatives of workers. Employer deals with
collective authorized institution
2. It is an institutional mechanism for fixing of prices of
labor services.
3. Establishing a system of Industrial jurisprudence
4. It provides machinery for the representation of
individual & group interests.
5. It is a two-party process.
6. It is a continuous process.
7. It is dynamic and not static.
8. It is industrial democracy at work
9. It is an art, an advanced form of human relations.
6. Need of Collective Bargaining
It helps in solving the industrial disputes.
Secure a prompt and fair redressal of grievances
Avoid interruptions in work which follow strikes, go-
slow tactics and similar coercive activities.
Lay down fair rates of wages and norms of working
conditions.
Achieve an efficient operation of the plant and
Promote the stability and prosperity of the industry.
7. Importance
From the management’s point of view
1. Collective bargaining helps in reducing labour
problems to the minimum and in maintaining cordial
relations between labour and management.
2. Collective bargaining opens up the channel of
communication between the workers and
management thus increasing worker participation in
decision making.
3. Collective bargaining helps to create a sense of job
security among employees.
4. Collective bargaining makes simpler for the
management to resolve issues at the bargaining level
rather than taking up complaints of individual
workers.
8. From the Employee’s point of view
1. Collective Bargaining helps to develop a sense of
responsibility and accountability among the
employees.
2. Collective Bargaining increases the morale and
productivity of employees.
3. It helps in securing a prompt and fair settlement of
grievances.
4. Effective Collective Bargaining machinery strengthens
and gives value to the trade unions movement.
5. The discrimination and exploitation of workers, if any,
is constantly monitored and addressed.
9. From the society’s point of view
Collective bargaining leads to
industrial peace in the country which
in turn helps to increase the pace of a
nation’s efforts towards economic and
social development.
It helps in implementation of labor
legislations.
10. Essential Conditions for Success of
Collective Bargaining
There must be a change in the attitude of employers and
employees. It is an approach which indicates that the two
parties are determined to resolve their differences in their
respective claims in a peaceful manner.
The employers and employees should enter upon
negotiations on points of difference or on demands with
a view to reaching an agreement.
To ensure that collective bargaining functions properly,
unfair labour practices should be avoided and abandoned by
both sides.
When negotiations result in an agreement, the terms of the
contract should be put down in writing and embodied in a
document.
11. Collective bargaining should be based on facts and
figures.
Once an agreement is reached, it must be honoured
and fairly implemented.
Both parties need to have an open mind and a
positive attitude. They should listen to and try to
understand the other persons view point and
limitations.
A provision for arbitration should be incorporated in
the agreements, which should become operative when
there is any disagreement on the interpretation of
its terms and conditions.
12. Causes for Failure of Collective
Bargaining
Unfair or corrupt labour practices.
Non availability of factual data.
Failure on the part of management to
recognize the trade union.
Multiplicity of trade unions.
Unequal strength of parties participating in
the collective bargaining process.
Lack of objectivity in addressing and
handling a grievance.
13. Process of Collective Bargaining
Union Claim Management
Proposal
Negotiations
Third Party
Referral
Collective Bargaining
14. Process of Collective Bargaining
Following steps are involved in the process of
Collective Bargaining
1. Preparation
Reason for negotiating
Union leaders have to be in touch with the rank and
file members to get an idea of their views and needs.
Both the parties must have the comparative data
regarding terms of practice and percentage wage
increase in other firms
The management needs to settle internal policy
issues, regarding what concessions to make, wages
to pay and changes that they are willing to make.
15. The union team also needs to come
together to decide on their strategy
and priorities.
Putting together of a negotiation
team.
The negotiation team should consist
of representatives of both the parties
with adequate knowledge and skills
for negotiation.
16. 2. Discussion : parties decide the ground
rules that will guide the negotiations. The
principal negotiator is from the
management team and he leads the
committee.
3. Proposal : Chief negotiator then puts forth
the initial opening statements and the
possible options that exist to resolve them.
Both parties then put forward their
arguments and counter arguments.
17. 4. Bargain : here the bargaining process
starts in this stage and the drafting of
agreements take place.
5. Settlement : an agreement is reached
upon wherein both the parties agree to a
common decision regarding the problem.
This stage consist of effective joint
implementation of the agreement through
share vision, strategic planning and
negotiated change.
18. The result of Collective Bargaining
procedure is called the collective bargaining
agreement (CBA). It may be in the form of
procedural agreements or substantive
agreements
Procedural agreements : This includes
procedures in respect of individual
grievances, disputes and discipline.
Substantive agreements : deals with issues
such as basic pay, overtime premiums,
bonus arrangements, holiday entitlements,
hours of works, etc.
19. Alternatives to Collective
Bargaining
Alternative Dispute Resolution (ADR)
is a term for describing the process of
resolving disputes in place of
litigation. It includes arbitration,
mediation, conciliation, expert
determination and early neutral
evaluation by a third person.
20. COLLECTIVE BARGAINING AGREEMENTS
AT DIFFERENT LEVELS
In India collective bargaining agreement have been
conducted at three level
At plant level
Industry level
National level
1) At plant level : A collective agreement at
plant is reached only for the plant for which it
has been drafted ,and its scope and extent are
limited only to that particular unit or undertaking
.it contains provision for a quick and easy
solution
21. Agreement between Tata iron and steel
company
The company recognizes the Tata workers union
as the sole bargaining agent of the employees at
Jamshedpur
The union recognized the right of the company to
introduce new improved equipment and methods
of manufacture
The union recognized the right of the company to
hire ,transfer , promote or discipline of employee
The company assures the union that there shall
be no retrenchment of existing employees
The company agrees that the amount dearness
allowance will be included in the wages of
employees at time of the calculation of gratuity
to be paid to them
22. At industry level :
The best example of an industry level agreement is
offered by textile industry of Bombay and Ahmadabad
The agreement between the Ahmadabad millowners
association and the
Ahmadabad textile labour association ,which were signed on
27th June 1955
Laid down the procedure to be followed for the grant of
bonus and voluntary
settlement of industrial disputes
It was agreed between the parties that the bonus would
be payable only out of an “available surplus or profit”
If there was any difference of opinion between the two
association
The second agreement provided that all future industrial
dispute between the member of the two association
would be settle by mutual negotiation
When ever there was an industrial dispute which had
not been settle by mutual would select an umpire out of
the panel or from among outsiders
23. At industry level :
The best example of an industry level agreement is
offered by textile industry of Bombay and Ahmadabad
The agreement between the Ahmadabad millowners
association and the
Ahmadabad textile labour association ,which were signed on
27th June 1955
Laid down the procedure to be followed for the grant of
bonus and voluntary
settlement of industrial disputes
It was agreed between the parties that the bonus would
be payable only out of an “available surplus or profit”
If there was any difference of opinion between the two
association
The second agreement provided that all future industrial
dispute between the member of the two association
would be settle by mutual negotiation
When ever there was an industrial dispute which had
not been settle by mutual would select an umpire out of
the panel or from among outsiders
24. At National level
The agreement at the national level are generally
bipartite agreement and are finalized at
conferences of labour and management convened
by government of India
The Delhi agreement of 7th February 1951 and the
bonus agreement for plantation workers of January
1956 are example of such bipartite agreement
DELHI AGREEMENT WAS CONCLUDED AT A
CONFERENCE OF THE REPRESENTATIVE OF
LABOUR AND MANAGEMENT AND RELEATED TO
RATIONALISATION AND ALLIED MATTERS . IT WAS
AGREED AT THIS CONFERENCE THAT :
25. Standardized work load
No break in their service
Gratuities
Retrenchment
Efficient use of labour
Incentives in the form of higher wages
