Collective Bargaining

1. MODULE 2
• Collective Bargaining in India: Definition, Essential conditions for the success of
collective bargaining, functions of collective bargaining, collective bargaining process.
• Negotiations - Types of Negotiations, Techniques of negotiation, negotiation process,
essential skills for negotiation.
• Grievance procedure and Discipline management: Grievance, meaning and forms,
model grievance procedure.

2. Meaning of Collective Bargaining
It is a technique that has been adopted by union and management to reconcile (to restore to friendship or
harmony) their conflicting interests. It is called collective because the employees, as a group, select
representatives to meet and discuss differences with the employer. The negotiations for collective bargaining
require joint sessions of the representatives of labour and management.
The phrase collective bargaining is said to be coined by Sydney and Beatrice Webb and Great Britain. It is made
up from two words collective which means “group” and bargaining which means “proposals and counter
proposals”.
Collective bargaining is a process of negotiations between employers and the representatives of a unit of
employees aimed at reaching agreements that regulate working conditions. The term 'collective bargaining' was
invented by Beatrice Webb, British Economist.

3. Collective bargaining is a group process of negotiating work-related issues with the
anticipation of coming to an agreement. It was introduced in India for the first time in
1952.
Beatrice Webb, British Economist describes the process of agreeing terms and conditions of
employment through representatives of employers possibly their associations, probably
managers and representatives of the employees probably their unions.

4. Collective agreements usually set out
◦ Wage scales
◦ Working hours
◦ Training
◦ Health and Safety
◦ Overtime
◦ Grievance mechanisms
◦ Rights to participate in workplace or company affairs.

5. Definition
Reed Richardson (US) – “Collective bargaining takes place when a number of work people enter
into a negotiation as a bargaining unit with an employer or group of employers with the object of
reaching an agreement on the conditions of the employment of the work people.”
Prof. Allan Flanders (British academic, author, and founding member of the Oxford School of
Industrial Relations)
“Collective Bargaining is primarily a political rather than an economic process. He describes
collective bargaining as a power relationship between a trade union organization and the
management organization.”

6. Definition of Collective Bargaining
According to Encyclopedia Britannica, “Collective bargaining is negotiation between an employer or
group of employers and a group of work people to reach an agreement on working conditions.”
According to David A. DeCenzo, and Stephen P. Robbins, “ The term collective bargaining typically
refers to the negotiation, administration and interpretation of a written agreement between two
parties that covers a specific period of time.”

8. Note: Bipartite: involving or made by two separate parties.

9. Importance to employees
Collective bargaining develops a sense of self respect and responsibility among the employees.
It increases the strength of the workforce, thereby, increasing their bargaining capacity as a
group.
Collective bargaining increases the morale and productivity of employees.
Effective collective bargaining machinery strengthens the trade unions movement.
The workers feel motivated as they can approach the management on various matters and
bargain for higher benefits.
It helps in securing a prompt and fair settlement of grievances.
Importance to employers
Collective bargaining tends to promote a sense of job security among employees and thereby
tends to reduce the cost of labor turnover to management.
Collective bargaining opens up the channel of communication between the workers and the
management and increases worker participation in decision making.
Collective bargaining plays a vital role in settling and preventing industrial disputes.

10. Importance to society
◦ Collective bargaining leads to industrial peace in the country.
◦ It results in establishment of a harmonious industrial climate which
supports which helps the pace of a nation’s efforts towards economic and
social development since the obstacles to such a development can be
reduced considerably.
◦ The discrimination and exploitation of workers is constantly being checked.
◦ It provides a method or the regulation of the conditions of employment of
those who are directly concerned about them.

11. Essential conditions for the success of collective bargaining

14. Functions of Collective Bargaining
Collective Bargaining has now been known as process of decision making and mechanism for
belonging the power between the employers and the employees on a case-by-case basis. It is based
on the golden principle of – Working together, Sharing together, deciding and earning together and
on jobing together. It not only include negotiation, administration, and enforcement of written
contracts between employees and management but also the process of resolving labour-management
conflicts. It helps to promote co-operation and mutual understanding between the workers and
management.
1. Decision-making:
- allows for workers through their representatives to speak and take actions jointly on policies which
guide and rule their working lives.
- the grievance procedure is a key part of the joint decision making process
- It is a formal memorandum of decisions that have been reached and it constrains management’s
freedom and discretion to take actions without consulting the workers’ representatives.

15. 2. Economic -The cost of labour can be clearly determined and predictable over a period of time. In other words, what are the terms
on which labour will be supplied to the business in the present or the future. -The collective agreement is a formal contract and the
grievance procedure is a non-legal means for ensuring that the employer complies with its terms.
3. Governmental: in this context each party can veto ( right to refuse to accept) the actions of the other
-the collective agreement is a body of law that is negotiated by management and union,
-the grievance procedure as a primary legislative process, covers the interpretation and application of the terms and conditions of
the agreement, and as a supplementary process, to agree on issues not covered in the agreement.
4. Uniformity: The functions of collective bargaining bring in uniform rules. The workers can discuss the same before
implementing. It sets standards for payments and working conditions. These codes also have safety rules. These parties
have to follow all rules from the collective bargaining agreement. It helps bring uniformity to the industry and the
company.
5. Stability
The company gets stability with the functions of collective bargaining. It ensures set standards. The workers won't have to
fight for the same. Also, there will be an increased peace among them. It will make the company stable as employees will
feel more satisfied. They will understand the company management listens to their needs. It thus creates a peaceful
environment which focuses on company growth.