SUBMITTED TO:- SUBMITTED BY:-

PROF. SHASHI SHARMA LOVELEEN KAUR

M.COM 2ND
ROLL NO. 6335
 Meaning
 Definition
 Objectives
 Features
 Components
 Importance
 Types of collective bargaining
 Levels of collective bargaining
 Principles of collective bargaining
 Advantages and disadvantages of collective
bargaining
 Conclusion
 Collective bargaining
Collective bargaining has benefits not only for
present, but also for future. The objectives of
collective bargaining are:
 To provide an opportunity to workers, to voice
their problem on issue related to employment.
 To resolve all dispute and conflicts.
 To provide peaceful and stable industrial
relations.
 To enhance the productivity of organization by
preventing strikes and lockouts.
 It is a collective process in which representatives of
both the management and employees participate.
 It is a continuous process which aims at establishing
stable relationship between the parties involved.
 Attempts in achieving discipline in industry.
 It is a methods, that include efforts from preliminary
preparations to the presentation of conflicting view
points, collection of necessary facts, understanding
of view point and taking correct actions.
Parties to collective
Subject- matter
bargaining

components

objectives durations
 Collective bargaining is a bipartite agreement
it involves two parties

 management or employers association

 Employees represent by trade union .

Both the parties are directly involved in the

process of collective bargaining.
International labour organization(ILO) divides the
collective bargaining into two categories:
 Setting out standard of employment: this
include determination of wage, fixing working
hours .
 Regulating the relations: as per ILO following
items are included in it
 Provisions for enforcements of collective
bargaining.
 Methods of settling disputes
 Duration of agreement
Following objectives of the union in collective
bargaining are:
 to raise workers standard of living And win a
better share in company’s profits.
 To settle dispute which may arise in day-to-
day life of comnpany
 It refers to the time period for which the
collective bargaining remain effective. There
is general tendency on the part of the unions,
to have agreements of short duration but the
management prefers to have agreements of
longer periods.
 In U.S.A time period of 1-3 years with option
of renew.
 In Scandinavian countries ,one year contract
with renewal clause.
To employees:
 It increases the strengths of the workforce.
 The workers feel motivated as they can
approach to management on various matters
and bargain for higher benefits.
 It increases the morale and productivity of
employees.
To employers:
 It becomes easier for the management to resolve
issues at the bargaining level rather than taking
up complaints of individual workers.
 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 and increases worker
participation in in workers and the management
In decision making.
 Collective bargaining plays a vital role in
settling and preventing industrial disputes.

To Societies
 It leads to industrial peace
 The discrimination and exploitation of
workers is constantly being checked.
 Conjunctive/ Cooperative/
integrative
distributing bargaining bargaining

Productivity Composite
bargaining bargaining

Concessionary
bargaining
 Distributing bargaining
is the most common
type of bargaining in
this one side win other
side loses. Both parties
try to maximize their
respective gains.
 In this issue related to
wages, benefits, bonus
are settled.
 In this both parties trying to
reach mutually beneficial
alternative, i.e. a win-win
situation.
 Both the employer and the
union try to resolve conflict
to the benefit of both the
parties.
 In this both the parties
must develop a
productivity linked
scheme. The issues that
are discussed in it:-
 Understanding the
difference between the
productivity and work
intensity
 Deciding skill and
knowledge required for
productivity settlement.
 Wages with equity

 Employees feel
due to productivity
bargaining their
workload increase
but their wages
remain same so
employees are
come in favour of
composite
bargaining.
 Quite opposite to other
forms of where the
unions demand from the
employers, in
concessionary
bargaining, the objective
is to giving back to
management some of
what it has gain in
previous bargaining.
 Plant level

Industry level

National level
 These are the bargaining agreements between
one employers/ company on the one side or
more unions established at the plant on other
side.
 It contain provisions for a quick and easy
solutions to those issues which require
immediate and direct negotiation between the
two parties.
 Bargaining between one or more
employers one side and one or
more trade union at other side
on industrial level. It is the
bargaining between all the trade
unions of workers in the same
industry through there federal
organizations.
 It is finalized at
conferences of labour and
managements held by the
government of India.
 Management should adopt an
appropriate labour policy and
implement it in true spirit.
 Management should periodically
review the rules and regulations.
 Management should make
efforts to redress the grievances
and complaints of workers
before they are forward to them
and take the form of dispute.
 The union should not only concentrate
on hike in wages, better working
conditions and lesser working hours; but
should also pat attention to raise
productivity, improve quality and
eliminate wastage.
 Union leader should be available for
discussion whenever needed by the
management.
 The unions should use strike as last
weapon. It should be used as an
exception not as a routine.
 It prevents employees from going on strikes.
 It gives protection to all employees right by
collective bargaining agreement.
 The employees have their right to bargain for
wages and other work practices.
 The employees are allowed to take part in the
decision-making process of the management.
 More difficult for employees at smaller
campuses to have their voice heard.
 Managements authority and freedom are much
more restricted by negotiation rules.
 Higher management cost associated with
negotiating and making the agreement of
bargaining.
 To manage changes the skill set required of
managers and supervisors.
 Collective bargaining can be suggested to be
one of the most influential approaches to
improvement of labour rights and employment
conditions. Collective bargaining is an
approach which has been practiced through
trade unions who aim at negotiating
and bargaining for providing better working
conditions and wages to the employees.
Online mode:- Offline mode:-
 www.slideshare.net  Book
 https://study.com Industrial relations
 www.google.com Punam agarwal
(kalyani publishers)