INDUSTRIAL RELATIONS
Collective Bargaining
Collective Bargaining
• Group process of negotiating work-related issues with the anticipation of
agreeing.
• Bargaining is done between two parties: the employer & the employees.
• Collective:- both the employer & the employee act as a group rather than as
individuals.
• Bargaining:- the method of reaching an agreement involves proposals and
counter proposals, offers & counter offers & other negotiations.
Example
• Collective bargaining is a process in which the representatives of a labor
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
• for example, Bargaining to ensure safe working conditions and job safety.
Features of Collective Bargaining
Group and Collective Action
• Group and Collective action is the main feature of collective Bargaining.
• Group and Collective action is a collective process in two ways.
• First, the workers collectively bargain for their shared interests and benefits.
• Secondly, the workers and management jointly arrive at an amicable solution
through negotiations.
Strength
• both parties bargain from a position of equal power.
• In collective Bargaining, the bargaining power of both parties is equal.
Continuous Process
• collective Bargaining is a constant process.
• collective Bargaining establishes a regular and stable relationship between the
parties involved.
• collective Bargaining involves not only the contract negotiation but also the
contract’s administration or application. The continuous process is the main
feature of Collective Bargaining.
• collective Bargaining means that Bargaining is a day-to-day process consisting of
several steps: organising, recognition, preparation for negotiation, negotiation,
and contract administration.
Flexible
• the parties must adopt a flexible attitude throughout the Bargaining process
since no party can afford to be rigid and inflexible.
• The unique feature of collective Bargaining is that both the parties concerned
start negotiations with entirely different views. But finally, reach a point
acceptable to both parties. It is, therefore, not a one-way street but a give-and-
take process.
Voluntary
• Collective Bargaining is a voluntary process by the management and workers.
• Both the parties come to the Bargaining to have a meaningful dialogue on various
troubling issues.
Dynamic
• Collective Bargaining is a relatively new concept and is growing, expanding, and
changing.
• it is scientific, factual, and systematic.
Power Relationship
• Collective Bargaining involves a power relationship.
• Workers want to gain the maximum from the management, and management
wants to extract the maximum from workers by paying as little as possible.
• Both must retreat from their positions to reach a solution, accept less than what
is asked, and give more than offered.
Scope of Collective Bargaining
The Cooperation & Communication b/w Trade Union Organization and the
Management
• covers matters such as employers’ duties to consult, inform & decide in
cooperation with the union and confidentiality clauses.
• employers support trade union activities by providing them with technical
facilities, etc.
Employment & Working Conditions
• employment contracts & termination of employment; principles of redundancy
policy.
• working time & working time schedules; & holiday & paid leave is included in it.
Wages & Remuneration
• It covers matters such as the wage system & minimum wage tariffs; payment for
working overtime & working on holidays. However, extra payments for difficult &
risky working conditions & night work; & severance payment in the event of
collective redundancies. In this area, the scope of Collective Bargaining is wide.
Occupational Safety & Health
• These matters such as employee duties & cooperation with trade unions on
safety and health issues. Preventive & corrective measures to improve working
conditions & to reduce risk at work. Also, the establishment of trade union Safety
& health delegates in companies.
Human Resource Development & Other Social Issues
• It covers matters such as Training & human resources development activities.
Moreover, the creation & utilization of the Social fund in an enterprise.
Reduction of Conflict between Management & Trade Unions
• It covers the procedures applied in serious disagreements between social
partners.
Functions of Collective Bargaining
1. Economic Strength
• Increase the economic strength of employees & management.
2. Uniformity
• Establish uniform conditions of employment.
3. Fair Redressal
• Secure a prompt & fair redressal of grievances.
4. Norms
• Lay down Fair rates of wages & other norms of working conditions.
5. Efficiency
• Achieve an efficient functioning of the organization. It is the main collective
bargaining function.
6. Stability
• Build the stability & prosperity of the Company.
7. Regulation
• It provides a method of regulating the conditions of employment of those directly
concerned about them. It is the very essential function of Collective Bargaining.
8. Solution
• It solves the problem of sickness in industry and ensures old benefits, age
pension benefits & other fringe benefits.
9. New Procedures
• It creates new & varied procedures for the solution of problems as and when
they arise. The employee is assured that he will be required to work under the
stipulated condition incorporated in the agreement. Also, the employer is
protected from unfair competition by those in similar industries.
10. Flexible Means
• It provides a flexible means for the adjustment of wages & employment
conditions to economic & technological changes in the industry. Flexible means
are the collective bargaining function. As a result of which, the changes in
conflicts are reduced.
11. Democratic Principles
• As a vehicle of industrial peace, Collective Bargaining is an essential & significant
aspect of labor-management relations. Therefore, it extends the democratic
principle from the political to the industrial field.
12. Industrial Jurisprudences
• It builds up a system of industrial jurisprudence by introducing civil rights in the
industry. In other words, it ensures that rules rather than arbitrary decisions
conduct management.
Scope of the Impacts
of
Collective Bargaining Agreements
The scope of collective bargaining includes:
Wages & Remuneration
Occupational Safety & Health
Employment & Working Conditions
Reduction of conflict between Management & trade unions
Human resource development & Other Social issues
functions of the bargaining councils
Bargaining council have all the knowledge of the accounting information for fair
redressal.
Bargaining council has power to solve the industrial disputes and resolve the
conflicts.
Economic strength of the employees increases with the help of collective
bargaining.
THANK Q

INDUSTRIAL RELATIONS Collective Bargaining.pptx

  • 1.
  • 2.
    Collective Bargaining • Groupprocess of negotiating work-related issues with the anticipation of agreeing. • Bargaining is done between two parties: the employer & the employees. • Collective:- both the employer & the employee act as a group rather than as individuals. • Bargaining:- the method of reaching an agreement involves proposals and counter proposals, offers & counter offers & other negotiations.
  • 3.
    Example • Collective bargainingis a process in which the representatives of a labor 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 • for example, Bargaining to ensure safe working conditions and job safety.
  • 4.
    Features of CollectiveBargaining Group and Collective Action • Group and Collective action is the main feature of collective Bargaining. • Group and Collective action is a collective process in two ways. • First, the workers collectively bargain for their shared interests and benefits. • Secondly, the workers and management jointly arrive at an amicable solution through negotiations. Strength • both parties bargain from a position of equal power. • In collective Bargaining, the bargaining power of both parties is equal.
  • 5.
    Continuous Process • collectiveBargaining is a constant process. • collective Bargaining establishes a regular and stable relationship between the parties involved. • collective Bargaining involves not only the contract negotiation but also the contract’s administration or application. The continuous process is the main feature of Collective Bargaining. • collective Bargaining means that Bargaining is a day-to-day process consisting of several steps: organising, recognition, preparation for negotiation, negotiation, and contract administration.
  • 6.
    Flexible • the partiesmust adopt a flexible attitude throughout the Bargaining process since no party can afford to be rigid and inflexible. • The unique feature of collective Bargaining is that both the parties concerned start negotiations with entirely different views. But finally, reach a point acceptable to both parties. It is, therefore, not a one-way street but a give-and- take process. Voluntary • Collective Bargaining is a voluntary process by the management and workers. • Both the parties come to the Bargaining to have a meaningful dialogue on various troubling issues.
  • 7.
    Dynamic • Collective Bargainingis a relatively new concept and is growing, expanding, and changing. • it is scientific, factual, and systematic. Power Relationship • Collective Bargaining involves a power relationship. • Workers want to gain the maximum from the management, and management wants to extract the maximum from workers by paying as little as possible. • Both must retreat from their positions to reach a solution, accept less than what is asked, and give more than offered.
  • 8.
  • 9.
    The Cooperation &Communication b/w Trade Union Organization and the Management • covers matters such as employers’ duties to consult, inform & decide in cooperation with the union and confidentiality clauses. • employers support trade union activities by providing them with technical facilities, etc. Employment & Working Conditions • employment contracts & termination of employment; principles of redundancy policy. • working time & working time schedules; & holiday & paid leave is included in it.
  • 10.
    Wages & Remuneration •It covers matters such as the wage system & minimum wage tariffs; payment for working overtime & working on holidays. However, extra payments for difficult & risky working conditions & night work; & severance payment in the event of collective redundancies. In this area, the scope of Collective Bargaining is wide. Occupational Safety & Health • These matters such as employee duties & cooperation with trade unions on safety and health issues. Preventive & corrective measures to improve working conditions & to reduce risk at work. Also, the establishment of trade union Safety & health delegates in companies.
  • 11.
    Human Resource Development& Other Social Issues • It covers matters such as Training & human resources development activities. Moreover, the creation & utilization of the Social fund in an enterprise. Reduction of Conflict between Management & Trade Unions • It covers the procedures applied in serious disagreements between social partners.
  • 12.
  • 13.
    1. Economic Strength •Increase the economic strength of employees & management. 2. Uniformity • Establish uniform conditions of employment. 3. Fair Redressal • Secure a prompt & fair redressal of grievances. 4. Norms • Lay down Fair rates of wages & other norms of working conditions. 5. Efficiency • Achieve an efficient functioning of the organization. It is the main collective bargaining function. 6. Stability • Build the stability & prosperity of the Company.
  • 14.
    7. Regulation • Itprovides a method of regulating the conditions of employment of those directly concerned about them. It is the very essential function of Collective Bargaining. 8. Solution • It solves the problem of sickness in industry and ensures old benefits, age pension benefits & other fringe benefits. 9. New Procedures • It creates new & varied procedures for the solution of problems as and when they arise. The employee is assured that he will be required to work under the stipulated condition incorporated in the agreement. Also, the employer is protected from unfair competition by those in similar industries.
  • 15.
    10. Flexible Means •It provides a flexible means for the adjustment of wages & employment conditions to economic & technological changes in the industry. Flexible means are the collective bargaining function. As a result of which, the changes in conflicts are reduced. 11. Democratic Principles • As a vehicle of industrial peace, Collective Bargaining is an essential & significant aspect of labor-management relations. Therefore, it extends the democratic principle from the political to the industrial field. 12. Industrial Jurisprudences • It builds up a system of industrial jurisprudence by introducing civil rights in the industry. In other words, it ensures that rules rather than arbitrary decisions conduct management.
  • 16.
    Scope of theImpacts of Collective Bargaining Agreements
  • 17.
    The scope ofcollective bargaining includes: Wages & Remuneration Occupational Safety & Health Employment & Working Conditions Reduction of conflict between Management & trade unions Human resource development & Other Social issues
  • 18.
    functions of thebargaining councils Bargaining council have all the knowledge of the accounting information for fair redressal. Bargaining council has power to solve the industrial disputes and resolve the conflicts. Economic strength of the employees increases with the help of collective bargaining.
  • 19.