Collective Bargaining

Collective Bargaining
Collective Bargaining is a process in which the representatives of a

labour organization & the representatives of business organization meet and attempt to negotiate a contract or agreement, which specifies the nature of employee-employer union relationship.

FLIPPO
Process involving discussions and negotiations collective group 'bargaining' proposals and counter proposals to reconcile their conflicting interests is a flexible approach

 Bargaining is collective

Chosen representative of employees

Acts as bargaining agent negotiations and dealings with

management. Parties professional managers represent interests of stockholders and board of directors with the union leaders. Approaches Process of social change exert pressure on powerful group for bigger share in political, economic, social power better welfare, liberty and security of members. Peace treaty continual conflict. Industrial jurisprudence method of introducing civil rights into the industry management rules by labour rules and not by arbitrary decisions.

 Infuses democratic principles.

Participative management workers participate in decisions that

affect their work and work life. Importance : Helps to increase economic strength of both parties Helps to establish uniform conditions of employment to avoid occurrence of industrial disputes. Helps to resolve disputes when they occur. Lays down rules and norms for dealing with labor. Strategic Choices: Managers - Open negotiations before or after wage agreement expires. Issues to be prioritized and that to wait for.

Representative at the negotiating table. Decide how closely to follow once signed.

Collective Bargaining Process

Prepare for negotiations

Identifying bargaining issues

Negotiation Reaching the agreement

Ratifying the agreement

Administration of agreement

 Four types of structures: One company dealing with single

union. Several companies dealing with single union. Several unions dealing with single company. Several companies dealing with several unions. Type of relationships affects Co-operative spirit facilitates Non-cooperative impedes the process.

Preparing for Negotiations

Advance preparations complexity of

issues & broad range of topics to be discussed. Presentation of factual and orderly case to each side. Much more skilled and sophisticated than earlier times. Management sidePreparation of specific proposals for changes in the contract language. Determine general size of economic package the company proposes to offer. Bargaining book for company negotiations on issues and analysis of the effect of each case, its use in other companies and other facts.

 Employees side : Financial position of the company and its ability to pay. Attitude of management towards various issues, as

reflected in past negotiations. Attitudes and desires of employees

Identifying bargaining issues:-

Wage related issues

Supplementary economic benefits Institutional issues

Administrative issues seniority, employee discipline,

employee health & safety, technological changes, work rules, job security, training.

negotiating
Presentation of initial demands Duration uncertain until demands are agreed upon. Battle of wits, playing on words, threats of strikes &

lockouts. Big relief both parties once agreement is signed. Success skills & abilities of negotiators. Settlement & contract agreement Two parties return to their Constituencies. Ratification Union-negotiating team puts a Vote and Voted agreement is formalized Into contract.

Case Study GM - UAW

PERCEPTIONS ON COLLECTIVE BARGAINING

CB essentially means negotiations between the labour and

management CB should just not stop at the negotiations but also go on to be implemented; otherwise the entire process of CB will be rendered futile. It is mostly the formal sector that benefits out of the CB process. The parties have to adopt a flexible attitude throughout the process of bargaining It is based on give and take approach and take or leave approach. Once both the parties know what they want, negotiations become easier and better. Obviously all the above mentioned conditions are required successful for CB but the most essential among them is the good faith

 CB agreement is a written format and it is essential

because that acts as a legal framework and as a guide to their relationships on certain matters for a specified period of time. Collective bargaining is not highly practiced in India, several factors are responsible for this: Multiple unions Defective laws Mediation by political leaders Organisations understand the importance of human resources hence they take care of the workers well enough so that collective bargaining is not highly required. It is also because most MNCs are setting up their plants in India, because of which compensation levels have gone up so also the terms of employment has become favourable in most parts of the country. It is necessary to create a win win situation for both the parties, if this is not done, the process of CB just acts as a temporary solution. Also, if CB is used as a temporary solution, it would infact create an environment of distrust.