Collective Bargaining

Chandan raj Iiebm,Pune

Meaning of Collective Bargaining

Collective Bargaining is a system and a technique of resolving an industrial dispute through negotiations between employers and the representatives of employees without any help of an arbitrator. Collective bargaining is that arrangement whereby the wages components of remuneration and conditions of employment of workman are settled through a bargain between the employer and the workman collectively whether represented through their union or by some of them on behalf of all of them.

 It means bargaining between an employer or group of employers and a bona fide Labour Union. Collective bargaining is made of 2 words Collective : which implies group action through its representatives Bargaining : which suggests negotiating Thus it implies, collective negotiation of a contract between the managements representatives on one side and those of the workers on the other.

Definitions
Collective bargaining is a mode of fixing the terms of employment by means of bargaining between an organized body of employees and an employer or an association of employers usually acting through organized agents.
R.F.Hoxie

The resolution of industrial problems between the representatives of employers and the freely designated representatives of employees acting collectively with a minimum of government dictation.
Cox

 Collective Bargaining is a process in which the representatives of a labour organization and the representatives of the business organization meet and attempt to negotiate a contract or agreement which specifies the nature of the employee-employer union relationship Edwin B.Flippo Collective bargaining is a process of discussion and negotiation between two parties, one or both of whom is a group of persons acting in consent. The resulting bargain is an understanding as to the terms and conditions under which a continuing service is to be performed. More specifically, collective bargaining is a procedure by which employers and a group of employees agree upon the conditions of work. Encyclopedia of Social Sciences

Characteristics
1. 2. 3. 4. 5. 6. 7. 8. It is a group action as opposed to individual action and is initiated through the representatives of workers. It is flexible and mobile, and not fixed or static. It is a two-party process. It is a continuous process. It is dynamic and not static. It is industrial democracy at work. Collective bargaining is not a competitive process but is essentially a complementary process. It is an art, an advanced form of human relations.

Need of Collective Bargaining

It helps in solving the industrial disputes. Secure a prompt and fair redressal of grievances. Establish uniform conditions of employment with a view to avoid industrial disputes and maintaining stable peace in the industry. Helps redress worker grievances promptly and fairly. Avoid interruptions in work which follow strikes, goslow tactics and similar coercive activities. Lay down fair rates of wages and norms of working conditions. Achieve an efficient operation of the plant and Promote the stability and prosperity of the industry.

Importance
From the managements point of view 1. Collective bargaining helps in reducing labour problems to the minimum and in maintaining cordial relations between labour and management. 2. Collective bargaining opens up the channel of communication between the workers and management thus increasing worker participation in decision making. 3. Collective bargaining helps to create a sense of job security among employees. 4. Collective bargaining makes simpler for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers.

 From the Employees point of view 1. Collective Bargaining helps to develop a sense of responsibility and accountability among the employees. 2. Collective Bargaining increases the morale and productivity of employees. 3. It helps in securing a prompt and fair settlement of grievances. 4. Effective Collective Bargaining machinery strengthens and gives value to the trade unions movement. 5. The discrimination and exploitation of workers, if any, is constantly monitored and addressed.

 From the societys point of view Collective bargaining leads to industrial peace in the country which in turn helps to increase the pace of a nations efforts towards economic and social development. It helps in implementation of labour legislation.

Essential Conditions for Success of Collective Bargaining

There must be a change in the attitude of employers and employees. It is an approach which indicates that the two parties are determined to resolve their differences in their respective claims in a peaceful manner. The employers and employees should enter upon negotiations on points of difference or on demands with a view to reaching an agreement. To ensure that collective bargaining functions properly, unfair labour practices should be avoided and abandoned by both sides. When negotiations result in an agreement, the terms of the contract should be put down in writing and embodied in a document.

 Collective bargaining should be based on facts and figures. Once an agreement is reached, it must be honoured and fairly implemented. Both parties need to have an open mind and a positive attitude. They should listen to and try to understand the other persons view point and limitations. A provision for arbitration should be incorporated in the agreements, which should become operative when there is any disagreement on the interpretation of its terms and conditions.

Causes for Failure of Collective Bargaining

Unfair or corrupt labour practices. Non availability of factual data. Failure on the part of management to recognize the trade union. Politicization of issues. Multiplicity of trade unions. Unequal strength of parties participating in the collective bargaining process. Lack of objectivity in addressing and handling a grievance.

Process of Collective Bargaining

Union Claim Management Proposal Negotiations Third Party Referral Collective Bargaining

Process of Collective Bargaining

1. Following steps are involved in the process of Collective Bargaining Preparation Reason for negotiating Union leaders have to be in touch with the rank and file members to get an idea of their views and needs. Both the parties must have the comparative data regarding terms of practice and percentage wage increase in other firms The management needs to settle internal policy issues, regarding what concessions to make, wages to pay and changes that they are willing to make.

The union team also needs to come together to decide on their strategy and priorities. Putting together of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation.

2. Discussion : parties decide the ground rules that will guide the negotiations. The principal negotiator is from the management team and he leads the committee. 3. Proposal : Chief negotiator then puts forth the initial opening statements and the possible options that exist to resolve them. Both parties then put forward their arguments and counter arguments.

4. Bargain : here the bargaining process starts in this stage what if and suppose are set forth and the drafting of agreements take place. 5. Settlement : a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem. This stage consist of effective joint implementation of the agreement through share vision, strategic planning and negotiated change.

The result of Collective Bargaining procedure is called the collective bargaining agreement (CBA). It may be in the form of procedural agreements or substantive agreements. Procedural agreements : This includes procedures in respect of individual grievances, disputes and discipline. Substantive agreements : deals with issues such as basic pay, overtime premiums, bonus arrangements, holiday entitlements, hours of works, etc.

Alternatives to Collective Bargaining

Alternative Dispute Resolution (ADR) is a term for describing the process of resolving disputes in place of litigation. It includes arbitration, mediation, conciliation, expert determination and early neutral evaluation by a third person.