Meaning ,characteristics, types, process of collective bargaining

1. PRESENTED BY:-
AMIT KUMAR
GOVIND KUMAR

2. MEANING OF COLLECTIVE BARGAINING
Collective bargaining is the process of negotiating the terms
of employment between an employer and a group of workers.
The terms of employment are likely to include items such as:-
conditions of employment, working conditions and other
workplace rules, base pay, overtime pay, work hours, shift
length, work holidays, sick leave, vacation time, retirement
benefits and health care benefits etc.

4. CHARACTERISTICS OF COLLECTIVE BARGAINING
 it is a group action as opposed to individual action:- it is collective in two ways. One is
that all the workers collectively bargain for their common interests and benefits and on
the management sides are its delegates at the bargaining table. They jointly arrive at an
amicable solutions through negotiations.
 it is flexible :- It is the group action where representatives of workers and
management expend energies in order to arrive at a consensus. It has sufficient flexibility
since no party can afford to be inflexible and rigid in such situation.
It is a bipartile process :- It is a mutual give and take rather than a take- it or leave-it
method of arriving at a settlement of a dispute. Both parties are involved in it . The
employers and the employees negotiate the issues directly, face to face across the table.
There is no third party intervention.
It is a continuous process :- Collective bargaining is a continuous process. it does not
commence with negotiation and end with an agreement. The agreement is only
beginning of collective bargaining. IT is a continuous process which includes
implementation of the agreement and further negotiation later whenever required.

5. OBJECTIVES OF COLLECTIVE BARGAINING
• To maintain cordial relationship between employer and the
employees by settling disputes/conflicts.
•To protect the interest of workers through collective action and by
preventing unilateral action on the part of the employer.
•To resolve the differences between employers and employees
through voluntary negotiations.
•To avoid the need for government intervention in matters relating
to employment.
•To ensure the participation of trade unions in industry.
•To promote industrial democracy.

6. BARGAINABLE ISSUES
Any issue that has relevance to management and workers becomes the subject
matter of bargaining. Traditionally wages and working conditions have been the
primary focus areas of collective bargaining. However , in recent times, the process
of collective bargaining has extended to almost any area that comes under the
employer-employees relations.
A list covering some of the issues that come under collective bargaining is given
below:-
• Wages and working conditions
• Rules and regulations pertaining to work.
• Incentive payments
• Job security
• Changes in technology and its impact on employees
• Transfer and promotions
• Grievances and grievances handling procedures
• Management Rights
• Recognitions of employees’ unions
• Employee benefits etc..

7. TYPES OF COLLECTIVE BARGAINING
Conjunctive Bargaining :- In this type of bargaining , the employers
and employees try to maximize their respective gains, Issues like
wages, bonus, etc are negotiated under conjunctive bargaining. The
principle “My gain is your loss and your gain is my loss” is practiced in
conjunctive bargaining. The parties want to yield as little as possible
while getting as much as possible from the other party. Conjunctive
bargaining is also called as Distributive bargaining.
Co-operative Bargaining :- In co-operative bargaining , both parties
realize the importance of surviving in difficult times and are willing to
negotiate the terms of employment in flexible way. Labour may accept
wage cuts and management may agree to modernise and make
additional investment.

8. Productivity Bargaining :- In productivity bargaining, Worker’s
wages and benefits are linked to productivity. If they are able
to exceed the standard productivity norms, workers will get
substantial benefits. Standard productivity is finalised through
negotiations. Productivity bargaining agreements are
important for survival and growth of the organization.
Composite Bargaining :- In composite bargaining, labour
bargains for wages as usual but goes a step further
demanding equity in matters relating to work norms,
employment levels, manning standards etc. Through
composite bargaining unions are able to prevent the dilution
of their powers and ensure justice to workers by putting
certain limits on the freedom of employers. For the employers
this is lesser evil when compared to strikes and lockouts.

9. PROCESS OF COLLECTIVE BARGAINING
The collective bargaining process involves five core steps:
• Preparation – Choosing a negotiation team and representatives of both
the union and employer. Both parties should be skilled in negotiation and
labor laws, and both examine available information to determine whether
they have a strong standing for negotiation.
• Discussion – Both parties meet to set ground rules for the collective
bargaining negotiation process.
• Proposal – Both representatives make opening statements, outlining
options and possible solutions to the issue at hand.
• Bargaining – Following proposals, the parties discuss potential
compromises, bargaining to create an agreement that is acceptable to
both parties. This becomes a “draft” agreement, which is not legally
binding, but a stepping stone to coming to a final collective bargaining
agreement.
• Final Agreement – Once an agreement is made between the parties, it
must be put in writing, signed by the parties, and put into effect.