The document outlines the process of collective bargaining between employers and employee representatives. It begins with preparation, where both parties research and develop their negotiating positions. They then discuss issues like wages, benefits, and working conditions. Each party proposes their initial demands and a bargaining process begins where they try to reach an agreement. The final stage is settlement, where both sign a mutual agreement resolving the issues discussed. Following these steps systematically and allowing open discussion helps settle disputes through collective bargaining.

1. DISCOVER . LEARN . EMPOWER
University School of
Business
Bachelor of Business
Administration
Industrial Relations and
Labor Laws
20BAT 375
Process of Collective
Bargaining

2. 2
CO
Number
Title Level
CO1 Understanding of the concept of
industrial relations, functioning of trade
unions and legal Machinery for handling
industrial disputes.
Rememb
er
CO2 Knowledge of protective and social
security laws of India and their
application.
Understa
nd
CO3 Understanding of the role of ILO in
regulating industrial relations, importance
of collective bargaining and workers’
participation.
Apply
Course Outcome
Will be covered in this
lecture
http://hrmpractice.com/coll
ective-bargaining/
Process of
Collective
Bargaining

3. Introduction
• The Collective Bargaining is a technique to reach a mutual agreement
between the employer and the employee. Here the representatives of both
the parties viz. The union and the employer meet and discuss the
economic issues such as wage, bonus, number of working hours and other
employment terms.

4. Process
https://businessjargons.com/process-of-collective-
bargaining.html#:~:text=Definition%3A%20The%20Collective%20Bargaining%20is,hours%20and%20other%20employment%20terms
.

5. 1.Preparation: At the very first step, both the representatives of
each party prepares the negotiations to be carried out during
the meeting. Each member should be well versed with the
issues to be raised at the meeting and should have adequate
knowledge of the labor laws.The management should be well
prepared with the proposals of change required in the
employment terms and be ready with the statistical figures to
justify its stand. On the other hand, the union must gather
adequate information regarding the financial position of the
business along with its ability to pay and prepare a detailed
report on the issues and the desires of the workers.

6. 2. Discuss: Here, both the parties decide the ground rules that
will guide the negotiations and the prime negotiator is from the
management team who will lead the discussion. Also, the issues
for which the meeting is held, are identified at this stage.The
issues could be related to the wages, supplementary economic
benefits (pension plans, health insurance, paid holidays,
etc.), Institutional issues(rights and duties, ESOP
plan), Administrative issues (health and safety, technological
changes, job security, working conditions).

7. 3. Propose: At this stage, the chief negotiator begins the
conversation with an opening statement and then both the
parties put forth their initial demands. This session can be called
as a brainstorming, where each party gives their opinion that
leads to arguments and counter arguments.

8. 4. Bargain: The negotiation begins at this stage, where each
party tries to win over the other. The negotiation can go for days
until a final agreement is reached. Sometimes, both the parties
reach an amicable solution soon, but at times to settle down the
dispute the third party intervenes into the negotiation in the form
of arbitration or adjudication.

9. 5. Settlement: This is the final stage of the collective bargaining
process, where both the parties agree on a common solution to
the problem discussed so far. Hence, a mutual agreement is
formed between the employee and the employer which is to be
signed by each party to give the decision a universal acceptance.

10. Summary
• To get the dispute settled the management must follow these steps
systematically and give equal chance to the workers to speak out their
minds.

11. Assessment Pattern
11

12. Applications
• HR Budgeting
• Manpower allocation
• Performance management
12
• Industrial peace
• Conflict management
• Negotiations

13. REFERENCES
• Reference Books- Mamoria &Mamoria, Dynamic of Industrial Relations
in India, Himalaya Publishing House, New Delhi
• Reference Journal for advance study-Journal of Collective Bargaining in
the Academy(JCBA)
• Reference Website -
 https://businessjargons.com/process-of-collective-
bargaining.html#:~:text=Definition%3A%20The%20Collective%2
0Bargaining%20is,hours%20and%20other%20employment%20ter
ms.
 https://www.wallstreetmojo.com/collective-bargaining/
13
Journal of Industrial Relations,Sage Journals

14. THANK YOU
For queries
Email: amrit.usb@cumail.in
Jaspreet.mba@cumail.in