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bargaining generally includes negotiations between the two parties (employees representatives and employers representatives). Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment.

Prepare: The first thing to be done is to determine whether there is actually any reason to negotiate at all. This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. A correct understanding of the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required.


Here, the parties decide the ground rules that will guide the negotiations.

Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. The exchange of messages takes place and opinion of both the parties is sought.


negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when what ifs and supposes are set forth and the drafting of agreements take place.

Settlement: Once the parties are through with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue.

To settle disputes/conflicts relating to wages and working conditions To protect the interests of workers through collective action To resolve the difference between workers and management through voluntary negotiations and arrive at a consensus To avoid third party intervention in matters relating to employment

Collective: workers and management jointly arrive at an amicable solution through negotiation Strength: the bargaining strength of both parties is equal. It is industrial democracy at work Flexible: it is a group action representative of workers and management. It believes IN give and take policy


both workers and management come to table voluntarily and implementation of the agreement reached is also voluntary

Power Relationship: workers wants to gain the maximum from management and management wants to extract the maximum from workers by offering as little as possible Representation: In Collective bargaining the employer does not deal directly with workers. He carries out negotiations with representatives of unions who are authorized to bargain with employer on work-related matters Bipartite Process: the employer and employee negotiate the issues directly, face to face across the table. There is no third party intervention

Conjunctive / distributive bargaining Each parties try to maximize their gain 2. Cooperative Bargaining When companies hit by recession 3. Productivity Bargaining A standard productivity index is finalized through negotiation 4. Composite Bargaining Bargaining to withstand liberalization, automation, farming out business to outsiders and survive