IRLE

COLLECTIVE BARGAINING
• COLLECTIVE BARGAINING

“Collective Bargaining is concerned with the relations

between unions reporting employees and employers
(or their representatives). It involves the process of
union organization of employees, negotiations
administration and interpretation of collective
agreements concerning wages, hours of work and
other conditions of employees arguing in concerted
economic actions dispute settlement procedures”.
¬¬____BEACH
• “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
• “Collective Bargaining is a mode of fixing the
terms of employment by means of bargaining
between organized body of employees and an
employer or association of employees acting
usually through authorized agents. The
essence of Collective Bargaining is bargaining
between interested parties and not from
outside parties”.
• According to an ILO Manual in 1960, the
Collective Bargaining has defined as:

“Negotiations about working conditions and

terms of employment between an employer, a
group of employees or one or more
employers organization on the other, with a
view to reaching an agreement.”
• It is also asserted that “the terms of
agreement serve as a code defining the right
& obligations of each party in their
employment relations with one another, if
fixes large number of detailed conditions of
employees and during its validity none of the
matters it deals with, internal circumstances
give grounds for a dispute counseling and
individual workers”.
• Collective Bargaining involves:
• Negotiations
• Drafting 
• Administration
• Interpretation of documents written by
employers and the union representatives their
employees.
• Able management
• Organizational Trade Unions with open mind.
According to John T Dunlop, Collective
Bargaining is….
•  A system which establishes, services and
administers many of rules which governs the
workers’ place of work
 A procedure which determines the quantum of
compensation which employee should receive
and which influences the distribution of
economic benefits.
 A method of settling disputes during pendency
of agreement and of determining, after its expiry,
whether a dispute should be re-opened or
whether a strike or lock-out should be resorted
to or not.
 Thus categories of Collective
Bargaining are:-
•  Single employer bargaining, 
a) one Company and 
b) either one union or
c) more than one union
(Where there are several unions at different
plants)
 Multi-employer bargaining
• a) Employer’s federation
b) Workers
of an industry representatives by
the federation of all the trade unions
(At local, regional or industry level)
 Collective Bargaining Vs Joint
Consultation
• Collective Bargaining is to arrive at an agreement
• on wages and other conditions of employment
about which the parties start with divergent
viewpoints but ultimately attempts to make a
comprise.
• Joint Consultation means joint councils relates
to the sharing of information & suggestion with
regard to the issues of common interest including
health, safety, welfare and productive efficiency.
This only includes recommendations the ultimate
decisions rests with the management. 
 Features of Collective Bargaining
• • It is a collective process: The representative of
both the management & the employees
participate in it.
• It is a continuous process: It establishes regular
& stable relationship between the parties
involved.
• It involves not only the negotiation of the
contract, but also the administration or
application of the contract also.
• It means that bargaining is a day-to-day process
• Summer Sticher has rightly observed: 
“It would be mistake as to assume that Collective Bargaining begins
and ends with the writing of the contract. Actually, that is only the
beginning of the Collective Bargaining”
• It is a flexible and dynamic process: The parties have to adopt a
flexible attitude throughout the process of bargaining 
• It is a method of partnership of workers in management. It is in
fact a way to establish industrial democracy.
• It is based on give and take approach and take or leave approach.
• It is an attempt in achieving and maintaining discipline in industry
• It is an effective step in promoting industrial jurisprudence.
 Subject matter of Collective
Bargaining:
• • Employment
• Relationship between the workers and the
management.
• Recognition of union
• Wages and allowances, hours of work
• Leave and festival holidays
• Bonus & profit sharing schemes
• Seniority and rationalism
• Fixation of work loads
• Standard of labour force
• Programs of planning and development,
influencing workforce
• Issue related to retrenchment and lay offs
• Victimization of trade union activities 
• PF, gratuity and other retirement benefit
schemes
• Incentive schemes 
• Housing & transport facilities
• Issues related to discipline and stop rules
• Grievance proceedings
• Working conditions
• Issues related to safety and accident
prevention, occupational diseases and protective
clothing.
• Employment benefits such as canteens, medical
& health services and crèches
• Administration of welfare funds
• Cooperative thrift and credit societies
• Educational recreational and training schemes
 The Indian Institute of Personnel
Management
• suggested the following subject matter of
Collective Bargaining.
•, and the definition of important terms
• Rights and responsibilities of the management
and of the trade union
• Wages, bonus, production norms, leave,
retirement benefits and terms & conditions of
service
• Grievance redressal procedure
• Methods and machinery for settlement
• Termination clause.
 Signification of Collective Bargaining
• Negotiations
• Administration
• Enforcement of the written contract between employees
and the employer
• Process of reserving labour-management conflicts
• It is legally and socially sanctioned way of regulating in
the public interest the forces of power and influence
inherent in organized labour management groups
• Labour legislation and machinery for settlement of
disputes
• To promote cooperation and mutual understanding
• To provide strikes and lock-outs
• Bipartite / tripartite machinery
• An important solution to the problem of IRs
• Functions of Collective Bargaining

 Social change 
 Industrial peace -- Peace Treaty or
Temporary Treaty
 Industrial Democracy
 Procedure of Negotiation and
Collective Bargaining
• Discussion between Management/workers/Trade
Unions
• Counter-proposals followed by arguments
come up.
• To iron-up differences in the beginning
• Frank discussions, mutual benefits and
attempts to appreciate the other parties
approach/point of view for fruitful negotiations.
• No legal compulsion on either side to negotiate
of a dispute.
• If both the parties are mutually prepared
results can be achieved.
• When issue is raised by the union, the Industrial
Relations Manager to initiate preliminary work
and have initial discussions and inform the results
to top management.
• Thus minor issues are defused and settled
peacefully.
• A team of senior managers to involve from the
management side for discussions in matter.
• An IRM is to act as a liaison with the union
members and as a bridge. 
 Procedure for CB
• 1. Composition of Negotiating Team:
• Representatives of both workers and the employees 
• Adequate qualify job knowledge and skills for
negotiations.
• To have full authority to speak and make decisions.
• Correct understanding of the main issue and intimate
knowledge of operations, working conditions,
production norms, etc.
• Basic qualities of balanced views even temper,
analytical mind, objective look out.
• Inclusion of functional heads will be more beneficial.
 2. Make a good beginning “Well begun is half
done” is true in the Collective Bargaining
• Steps for mutual cooperation
• Members in the right frame of mind.
• Proper climate for mutual understanding
and a common desire to reach an agreement.
• True spirit of give and take
• Maximum chances of success.
 3. Maintain continuity of Talks
• With good will and understanding
• Occasions for emotional outbursts and
roadblocks likely
• Never to reach the dead end
• Side track blind alleys and keep talks continuing
• Even under the worst situations breaking off
temporarily for scrolling down and rethinking
may be necessary.
• When the main issue get confused the dust and
storm raised, bringing things to fundamentals will
then help.
• Better to leave controversial issues for the time
being and leap over to the next issue.
• As the field of agreement is widened and the
field of disagreement is narrowed down, small
gaps can be bridged over more easily later.
• As long as talks continue, a solution will be
possible.
• To keep the discussion fluid is therefore very
important.
4. Develop a problem-solving attitude
• Appreciation on both the sides
• Better understanding
• Better performance and increased
prosperity for future
• Proper discussion, analyses can fluid a
solution with open mind.
 5. Encourage leadership
• Possibilities of solution of both sides are argued.
• Right of association and fight for justice and a
fair deal.
• United and homogeneous climate on both sides
“Management gets the union it deserves”
• Principle of justice, sympathy and firness
• Growth of healthy and strong trade unionism.
Thus development of the right type of leadership
is only a matter of time.
 6. Bring in the other managers
• Contribution and involvement of other managers 
• Collective agreement covers not just one part, but the entire field
of industrial activity.
• Lack of understanding and proper communication often create
problems and difficulties
• Discipline for management and productivity/job security for
workers is important.
• These are the basic difference and conflict never gets resolved.
• At times conflict grows more serious and a situation becomes
explosives, threatening discipline peace and production gets
disturbed.
• Thus maintaining normal conditions and preserving in spirit of
agreement in such a situation presents a tough challenge to the skill
& ability of the management.
 7. Contract Administration
• Once a contract is agreed upon it must be
diminished
• Contract to specify the procedure for
handling disagreement over the interpretation
of different clause of the agreement.
• Almost all Collective Bargaining agreements
contain formal procedure to be used in
resolving difference over the interpretation
and application of the agreement.
 Essentials of Successful Collective
Bargaining – “Process”
• It is an institutionalized representative
process 
• It is a graceful retreat and to compromise
• It involves:-
a) Psychology
b) Politics
• It is a tough-minded economic calculus
• Bargaining sessions almost are unavoidably
contain certain stress and strains
• Labour-management tensions are recurrent
in nature, since contacts are regularly re-
negotiated.
 Following conditions must be fulfilled to make
Collective Bargaining successful.
• a) Strong and stable union
b) Recognition of trade union
c) Permanent bargaining machinery
d) Mutual accommodation
e) Political climate
f) Bargainers authority
 Obstacles to Collective Bargaining in
India
• Progress of the Collective Bargaining process
is not very encouraging in India. Most of the
unions and management lay emphasis on
adjudication rather sorting out issues
themselves. Several factors are responsible
for this:
• Multiple unions
• Non-recognition
• Political orientation
• Defective laws
• Mediation by political leaders
 Suggestions for effective Collective
Bargaining 
• To create conditions for strong, stable
representative by union
• Recognition by the law of the trade unions 
• Political leadership to be replaced by internal
workers leadership
• No political interference 
• Both management and unions should adopt
peaceful means of settling disputes
• Adjudication to be resorted to as last resort,
when all other remedies have failed.