This document provides an overview of collective bargaining in the context of an MBA course on human resource management. It defines collective bargaining as a procedure that regulates the terms and conditions of workers through agreements negotiated between worker representatives and employers. The objectives of collective bargaining are to settle disputes around wages and working conditions, protect worker interests, and resolve differences between workers and management through voluntary negotiations. The key aspects of collective bargaining covered include the bargaining process, subjects of negotiation, types of bargaining, and factors that influence effective bargaining.

1. Course: MBA SEM 2
Subject: Human Resource
Management
Unit: 4
Collective Bargaining

2. Introduction
 Before the Industrial Revolution, the employer, more or less, enjoyed
unquestioned powers on matters relating to wages, working
conditions and other matters affecting employees.
 This collective fighting spirit is at the back of collective bargaining.
Collective Bargaining

3. Concept
 Collective bargaining is a procedure by which the terms and
conditions of workers are regulated by agreements between their
bargaining agents and employers.
 The basic objective of collective bargaining is to arrive at an
agreement on wages and other conditions of employment.

4. Features
 Collective
 Strength
 Flexible
 Voluntary
 Complementary
 Continuous
 Dynamic
 Power relationship
 Representation
 Bipartite process
 Complex

5. Objectives
1. To settle disputes/conflicts relating to wages and working conditions.
2. To protect the interests of workers through collective action.
3. To resolve the differences between workers and management
through voluntary negotiations and arrive at a consensus.
4. To avoid third party intervention in matters relating to employment.

6. The Substance of Bargaining
1. Wages and working conditions
2. Work norms
3. Incentive payments
4. Job security
5. Changes in technology
6. Work tools, techniques and practices
7. Staff transfers and promotions
8. Grievances
9. Disciplinary matters
10. Health and safety
11. Insurance and benefits
12. Union recognition
13. Union activities/responsibilities
14. Management rights

7. Types of Bargaining
1. Conjunctive/distributive/bargaining
2. Cooperative bargaining
3. Productivity bargaining
4. Composite bargaining-equity

8. The Process of Collective Bargaining
 Identification of the problem
 Collection of date
 Selection of negotiators
 Climate of negotiations
 Bargaining strategy and tactics
 Formalising the agreement
 Enforcing the agreement

9. Collective Bargaining in India
 The story of collective bargaining is the story of the rise and growth of
trade unionism itself.
 It had its roots in Great Britain and developed in response to conditions
created by the Industrial Revolution.
 In India, trade unions have come to occupy the centre stage only after
1900.
 In 1918, Gandhiji as the leader of the Ahmedabad Textile workers
advocated the resolution of conflict through collective bargaining
agreements.
 After Independence, with the spread of trade unionism, collective
bargaining agreements have become popular.

10. Conditions Essential for Effective Bargaining
Not all the collective bargaining processes are successful and effective.
There are certain prerequisites for an effective collective bargaining process
which are as follows:
1. Unanimity among workers
2. Strength of both the parties

11. Suggestions for Effective Implementation of
Collective Bargaining
1. Unions should be made strong by creating awareness among workers.
2. Interference of political leaders should be avoided.
3. Government should make efforts for the growth of collective bargaining.
4. Management should develop a positive attitude towards unions.

12. Recommendations of National Commission on
Labour
1. Government intervention in industrial relations, particularly in the
settlement of industrial disputes, should be reduced gradually to the
minimum possible extent.
2. Trade unions should be strengthened both organisationally and
financially by amending the Trade Union Act of 1926 to make registration of
unions compulsory.
3. Legal provision may be made either by a separate legislation or by
amending an existing enactment.
4. Intensification of worker’s education for building up internal union
leadership and making workers more knowledgeable and conscious
about their rights and obligations.
5. The idea of one union for one plant or one industry should be
popularised and made a reality.

13. Units and level of Collective
Bargaining
• Plant or Establishment level
• Local level
• Region/Area level
• Industry level
• National level

14. Factors influencing Bargaining
Units
• Structure of trade union organization
• Nature of ownership of Industrial Enterprises
• Nature of Industrial Relations laws

15. Hurdles to collective Bargaining
• Voluntariness in Recognition of Unions
• Ineffective procedure for the determination of
Reprehensive union
• Outside Leadership in Trade Unions
• Provision of Adjudication machineries
• Restriction on strikes and Lockouts
• Comprehensive Coverage of labor laws
• Inadequate unionization

16. Bibliography
• http://www.whatishumanresource.com
• http://www.mbaofficial.com
• Human Resource and Personnel
Management- K. Aswathappa, Tata
McGraw Hill