Collective bargaining

Meaning of collective bargaining =collective bargaining is

the process which working people , through their union negotiate
contracts with their employs to determine their terms of
emppoyeement ,including pay ,hours ,leave ,job and more .

Types of collective bargaining

1. Conjective or distributive bargaining = In this form of
collective bargaining both employee and the employer in the
company try to maximize their profit. It is based on the
principal that my profit is your loss and your profit is my loss.
2. Co-operative or integrative bargaining = in this form
the employee and employer together try to resolve the
problems of their common interest and reach to a salutation.
example = the workers may agree for the low wages or the
management may agree to adopt the modernized methods.
3. Productivity bargaining = in this type management give
bonus to their workers for the increased productivity. the
workers get encouraged and work very hard to gain the
additional benefits.
4. Composite bargaining = In this type the workers express
their concern over the working conditions ,environmental
issue,pricing policies and etc.with the intention to safeguard
their interest and protect the dilution of their power.
 Process of collective bargaining

1.Negotiating team =there is two types of team one is from

management side and other from worker side are essential for
bargaining the issues because the interest of both sides are
involved. It is not necessary that the number of representative
from both the side be equal.

2.preparation of demand = the charter of demand presented

to management prepared by the members of in consultation with
other employee of the organization . if necessary the involvement of
an outside expert is permitted.

3.negotiating procedure = in this two type process may be

adopted 1.piecemealnegotiation – in this process the issues taken
one by one , 2.total approach – in this process all the issues are
negotiated considering total effect.

4.bargaining strategy = there is no specific strategy for

negotiating the issues .it depends upon situation , time, strength and
other market conditions.

5.preparation of agreement = the outcome of collective

bargaining process is the preparation of an agreement .when the
bargaining issues are solved then it is put on a paper .legal
terminology should be avoided as much as possible. the agreement
should be signed by both the parties and communicated to all
concerned.

6.Administration of agreement = the administration of

agreement is concerned to both management and workers because
under section 29 of the industrial disputes act 1947 any person who
commits a breach of any term of the settlement is punishable with
imprisonment for the term which may extend to six month ,or with
fine ,or with both .

Problems and objectives of collective bargaining

• Innovation in goods and services often leads to
changes in productive activities ,and to the
emergence of new activities that replace the
previous once in a partial and misleading way.
• The new productive context include the
emergence of new forms of business organization
and new relationship between companies-for
example, work is often affected by different
companies jointly or interdependently.
• Sometimes, negotiations can be extended for an
excessive period of time.

Essentials of effective collective bargaining

1. Favourable political and social climate = collective
bargaining has made headways in settling industrial disputes in
the countries where it has been duly supported by the
government and favoured by the public.
2. Trade unions = in democratic country employees should
have fundamental rights to form trade unions for protecting
their interests . more the stronger the trade union lie effective
collective bargaining and vice versa.
3. Problem solving attitude = both the parties while
negotiating should adopt a problem solving or say
 compromising attitude to reach an agreement .neither party
should adopt an adamant or fighting aide. The negotiating
team should follow give and take approach.
4. Availability of data = data and information serve as inputs
for decision-making .hence the availability of required data
serves as a pre-requisite for successful collective bargaining.

Continuous dialogue = collective bargaining sometimes may

not reach to an agreement .in-stead , there may be deadlock, or say
bargaining impasse. In such case , dialogue must not end but
continue with problem solving approach.

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