Collective bargaining new

TOPIC
ON
“ COLLECTIVE BARGAINING”
Presented by:
Mr. Manjunath. Beth
Associate professor
&
HOD OF MSN DEPARTMENT

COLLECTIVE BARGAINING
Presented By : Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

MEANING
• An individual is free to bargain for himself and safeguard
his own interest.
• The phrase collective bargaining is between management
representatives on one side and those of the workers on the
other.
Collective = Group Action
Bargaining = Negotiation

The object of collective bargaining is
1. To harmonize labour relations and
2. To promote industrial / enterprise peace by creating
equality of bargaining power between the labour &
the management.
• This collective bargaining is that arrangement
whereby the wages [fixed salary] and conditions of
the employment of workmen are settled through a
bargain between the employer and the workmen
collectively whether represent behalf of all of them.

DEFINITION’s
• “Collective bargaining is a process of discussion &
negotiation between two parties, one or both of whom is a
group of persons acting in concert more specifically it is the
procedure by which an employer / employers and group of
employees agree upon the conditions of work”.
- The encyclopaedia of social sciences
• “Collective bargaining is an agreement between a single
employer or an association of employers on the one hand
and a labour union on the other, which regulates the terms
and conditions of employment”.
- Ludwig teller

• “The process of collective bargaining is a method by which
management and labour may explore each other’s problem
and view points and develop a frame work of employment
relations within which both may carry on their daily
association in a spirit of co-operative good will and for their
daily association in a spirit of co-operative good will and for
their mutual benefit”
- National association of manufactures
• “Collective bargaining is the process by which organized
employers participate with their employers in decisions
about their rates of pay, hours of work & other terms and
conditions of employment”.
- Linda Roussel

• “Collective bargaining is the negotiation about working
conditions and terms of employment between an employer
and a group of employers or one/or/more employees
organisations with a view to reaching agreement where in
the terms serve as a code of defining the rights and
obligations of each party in their employment relations with
one another, fix a large number of detailed conditions of
employment and derivatives, validity none of matters it
deals with, can in normal circumstances be given as a
ground for a dispute concerning an industrial worker”.
- ILO

IMPORTANT FEATURES OF COLLECTIVE
BARGAINING
 Collective
 Strength
 Flexible
 Voluntary
 Continuous
Dynamic
 Power relationship
 Representation [image for future]
 Bipartite process
[involving of 2 separate parties]
 complex

OBJECTIVES OF COLLECTIVE BARGAINING
 Resolve differences over knotty issues
[extremely complex problems]
 Protect the interests of workers through
collective action
 Carry out negotiations voluntarily, without
interference from a third party
 Arrive at an amicable agreement through a
process of give and take

SUBSTANCE OF COLLECTIVE BARGAINING
1. Wages and working
conditions
2. Work norms [standards]
3. Incentive payments
4. Job security
5. Changes in technology
6. Work tools, techniques
and practices
7. Staff transfers and
promotions
8. Grievances
[a cause for complaint]
9. Disciplinary matters
10.Health and safety
11.Insurance and benefits
12.Union recognition
13.Union
activities/responsibilities
14.Management rights

TYPES OF COLLECTIVE BARGAINING
1. Conjunctive or distributive bargaining
2. Co-operative bargaining
3. Productivity bargaining
4. Composite bargaining

STEPS IN COLLECTIVE BARGAINING
The collective bargaining process comprises
of five core steps:
1. PREPARE
2. DISCUSS
3. PROPOSE
4. BARGAIN
5. SETTLEMENT

1. PREPARE:
• This phase involves composition of a negotiation team.
• The negotiation team should consist of representatives of
both the parties with adequate knowledge and skills for
negotiation.
• In this phase both the employer’s representatives and the
union examine their own situation in order to develop the
issues that they believe will be most important.
• The first thing to be done is to determine whether there is
actually any reason to negotiate at all.
• A correct understanding of the main issues to be covered
and intimate knowledge of operations, working
conditions, production norms and other relevant
conditions is required.

2. DISCUSS:
• Here, the parties decide the ground rules that will guide the
negotiations.
• A process well begun is half done and this is no less true in
case of collective bargaining.
• An environment of mutual trust and understanding is also
created so that the collective bargaining agreement would be
reached.
3. PROPOSE:
• This phase involves the initial opening statements and the
possible options that exist to resolve them.
• In a word, this phase could be described as ‘brainstorming’.
• The exchange of messages takes place and opinion of both the
parties is sought.

4. BARGAIN:
• negotiations are easy if a problem solving attitude is
adopted.
• This stage comprises the time when ‘what ifs’ and
‘supposals’ are set forth and the drafting of agreements
take place.
5. SETTLEMENT:
• Once the parties are through with the bargaining process, a
consensual agreement is reached upon wherein both the
parties agree to a common decision regarding the problem
or the issue.
• This stage is described as consisting of effective joint
implementation of the agreement through shared visions,
strategic planning and negotiated change.

PROCESS OF COLLECTIVE BARGAINING
1. Identification of the problem
2. Collection of data
3. Selection of negotiators
4. Climate of negotiations
5. Bargaining strategy and tactics
 Conflict based [serious disagreement]
 Armed truce (Agreement between 2 parties to stop fighting)
 Power bargaining
 Accommodation / settlement
 Co-operation
6. Formalizing the agreement
7. Enforcing the agreement

PRE-REQUISITES OF COLLECTIVE BARGAINING
I. Existence of a truly representative and strong trade union
II. Existence of a progressive management
III. Absence of any external pressure either on the employers
or on the worker to come to the kind of agreement
desired by the authority exerting the pressure.
IV. Existence of a measure of parties of strength or
bargaining power between the trade union &
management.
V. Delegation of authority to an officer involved in
negotiation
VI. Acceptance of a fact finding approach by the
management as well as the union.

CHARACERISTICS OF COLLECTIVE BARGAINING
It is a group action as opposed to individual action and
is initiated through the representatives of workers.
It is flexible and mobile and not fixed or static.
It has fluidity and ample scope for compromise for a
mutual give and take, before the final agreement is
reached or the final settlement is arrived at
It is a two party process. It is mutual give and takes
rather than a take it or leave-it method of arriving at the
settlement of a dispute both parties are involved in it.

It is a continuous process which provides a mechanism
for continuing and organised relationship between
management and trade unions/ associations.
It is a dynamic and not static because it is a relatively
new concept and it growing, expanding and changing.
In the past, it used to be emotional, turbulent and
sentimental, but now it is scientific, factual and
systematic.
It is an industrial democracy at work; the government of
labour with the consent of the governed the worker.

PRINCIPLES
OF COLLECTIVE
BARGAINING

PRINCIPLES FOR THE MANGEMENT
1. The management must develop and consistently follow a
realistic labour policy, which should be accepted and
carried out by its representatives.
2. The management must grant reorganisation to the trade
union / associations without any reservations and accept it
as a constructive force in the organisation.
3. The management should not assure the employer good will
always exist.
4. It should periodically examine the rules and regulations to
determine the attitudes and degree of comfort of its
employees and gain their goodwill and co-operation.

5. The management should extend fair (amusement for public
entertainment) treatment to the trade union in order to
make it a responsible and conservative body.
6. The management should not wait for the trade union to
bring employee grievances to its notice but should rather
create the conditions in which employees can approach the
management themselves, without involving the trade union
/ association.
7. The management should deal only with the one trade
union/ association in the organisation.
8. While weighing economic consequences of collective
bargaining the management should place greater emphasis
on social considerations.

PRINCIPLES FOR THE TRADE UNION
Meaning of trade & union
1. In views of the rights granted to organised labour, the trade
union should eliminate racketeering (Dishonest) & other
undemocratic practices within their own organisation.
2. Trade union leaders should appreciate the economic
implications of collective bargaining for their demands are
generally meet form the income and resources of the
organisations in which their members are employed.
Trade buy & sell goods and services.
Union a club, society, or association formed by a
people with a common interest.

3. Trade union leaders should not imagine that their only
function is to secure higher wages, shorter hours of work
& better working conditions for their members.
4. They and their members have an obligation to assist the
management in the elimination of waste and in improving
the quality and quantity of production.
5. Trade union leaders should assist in the removal of such
restrictive rules & regulations that are likely to increase
costs & prices and reduce the amount that can be paid out
as wages.
6. Trade unions leaders should resort (adopt strategic course
of action) to strike only when all other methods of the
settlement of a dispute have failed.

PRINCIPLES FOR BOTH THE MANGEMENT AND TRADE UNION
1. Collective bargaining should be made an education as well
as bargaining process.
2. It should offer to trade union leaders an opportunity to
present to the management the wants, desires, grievances
and attitudes of its employees and make it possible for the
management to explain to union leaders and through them,
to its employees the economic problems which it is
confronted with.
3. The management & trade union must look upon collective
bargaining as a means of finding the best possible
solutions & not as a means of acquiring as much as one
can while conceding the minimum. There must be an
honest attempt at solving problems.

4. Both parties to a dispute should command the respect of
each other & should have enough collective bargaining
power to enforce the terms of agreement that they may
arrive at.
5. There must be mutual confidence and good faith and a
desire to make collective bargaining effective in practice.
6. There should be an honest, able & responsible leadership
for only this kind of leadership will make collective
bargaining effective & meaningful.
7. The two parties should meticulously observe & abide
(accept rules & regulations) by all the national & state laws
which are applicable to collective bargaining.

8. Both parties must bear in mind the fact that collective
bargaining is in a sense a form of price fixation and that
the success of any collective bargaining dependents, in
the final analysis on whether the management & the
trade union do a good job of ensuring that the price of
labour is properly adjusted to other prices.

LIMITS OF COLLECTIVE BARGAINING
1.Be sure to set clear objectives for every bargaining item,
and be sure you understand the reason for each.
2. Do not hurry.
3. When in doubt, caucus with your associates.
4. Be well prepared with firm data supporting your position.
5. Always strive to keep some flexibility in your position.
6. Don't concern yourself just with what the other party says
and does; find out why.
7. Respect the importance for face saving for the other party.
8. Be alert to the real intentions of the other party-not only for
goals, but also for priorities.

9. Be a good listener.
10.Build a reputation for being fair but firm.
11.Learn to control your emotions and use them as a tool.
12.As you make each bargaining move, be sure you know its
relationship to all other moves.
13.Measure each move against your objectives.
14.Pay close attention to the wording of every clause
negotiated; they are often a source of grievances.
15.Remember that collective bargaining is a compromise
process; There is no such thing as having all the pie.
16.Try to understand people and their personalities.
17.Consider the impact of present negotiations on those in
future years.

CONTENT OF A LABOUR AGREEMENT
• Purpose and intent of the parties
• Vacations / holidays
• Scope of the agreement
• Seniority
• Management
• Safety and health
• Responsibilities of the parties
• Military service
• Union membership and check off
• Severance allowance

• Adjustment of grievance
• Savings and vacation plan
• Arbitration (arguments)
• Supplemental benefits program
• Suspension and discharge cases
• Prior agreements
• Rates of pay
• Termination date
• Hours of work
• Overtime and holidays

CONDITIONS ESSENTIAL FOR COLLECTIVE BARGAINING
 Unanimity among workers
 Strength of both parties
 positive attitude
 willing to make some sacrifices
 prepared to implement previously agreed things strictly
 Representative authority
 Representatives must understand the problems of both
parties
 Willing to discuss everything and not necessarily
something related to wages and monetary benefits
 Parties having respect toward each other
 Carry out negotiations free from unfair practices

RECOMMENDATINS OF NATIONAL COMMISSION ON
LABOUR, 1969
 Minimum intervention from government
 Strengthening the trade unions
 Appropriate legal provisions governing
 Compulsory recognition of unions
 Prohibition and penalization of unfair labour practices
 Bargaining in good faith by both parties
 Conferring legal validity and legitimacy on collective
agreements
 Intensification of workers' education
 One union for one plant being popularized
 Encouraging bipartite consultations and negotiations

CONCLUSION

Collective bargaining new

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