NTRODUCTION:

The concept of collective

bargaining was introduced very
late in India as trade unions were
found only in 20th century. The
concept of collective bargaining
attained significance only after
1962. The phrase collective
bargaining is said to be coined
by Sydney and Beatrice Webb and
Great Britain. It is made up from
two words collective which means
“group” and
bargaining which means “proposals
and counter proposals”. So, it 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.
DEFINITION:
Collective Bargaining is the
agreement between a single
employer or an association of the
employers on the one hand and
labour union on the other.
Collective Bargaining is the
processes in which the
representative of a labour
organization and the representative
of the
business organization meet and
attempt to negotiates a contracts or
agreement.
(Edwin Flippo)
NTRODUCTION:
The concept of collective
bargaining was introduced very
late in India as trade unions were
found only in 20th century. The
concept of collective bargaining
attained significance only after
1962. The phrase collective
bargaining is said to be coined
by Sydney and Beatrice Webb and
Great Britain. It is made up from
two words collective which means
“group” and
bargaining which means “proposals
and counter proposals”. So, it 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.
DEFINITION:
Collective Bargaining is the
agreement between a single
employer or an association of the
employers on the one hand and
labour union on the other.
Collective Bargaining is the
processes in which the
representative of a labour
organization and the representative
of the
business organization meet and
attempt to negotiates a contracts or
agreement.
(Edwin Flippo)
INTRODUCTION:
The concept of collective
bargaining was introduced very
late in India as trade unions were
found only in 20th century. The
concept of collective bargaining
attained significance only after
1962. The phrase collective
bargaining is said to be coined
by Sydney and Beatrice Webb and
Great Britain. It is made up from
two words collective which means
“group” and
bargaining which means “proposals
and counter proposals”. So, it is a
process in which the
representatives of a labour
organization & the representatives
of business organization m
INTRODUCTION:
The concept of collective
bargaining was introduced very
late in India as trade unions were
found only in 20th century. The
concept of collective bargaining
attained significance only after
1962. The phrase collective
bargaining is said to be coined
by Sydney and Beatrice Webb and
Great Britain. It is made up from
two words collective which means
“group” and
bargaining which means “proposals
and counter proposals”. So, it is a
process in which the
representatives of a labour
organization & the representatives
of business organization m
What Is Collective Bargaining? 
The term collective bargaining refers to the negotiation of employment
terms between an employer and a group of workers. Employees are
normally represented by a labor union during collective bargaining.

The terms negotiated during collective bargaining can include working

conditions, salaries and compensation, working hours, and benefits. The
goal is to come up with a collective bargaining agreement through a
written contract. According to the International Labour Organization,
collective bargaining is a fundamental right for all employees.1

H I S T O R Y O F C O L L E C T I V E B A R G A I N I N G IN INDIA Collective bargaining as a term

came in existence and gained importance in the writings of Beatrice and Sydney. This
movement started in Great Britain and found traces o f its use as early as 1874 among coal
miners. It has been used in different forms and has also undergone major modifications from
time to time. It has acquired different characteristics and patterns in different countries. As
the process of industrialization started late in India the history of collective bargaining also is
not very big compared to its history in developed countries specially Great Britain or USA.
Collective bargaining in India gained ground only after independence, but it started very
much before in the 1920’s in the textile mills o f Ahmedabad with the initiative o f our great
leader Mahatma Gandhi. The importance of collective bargaining came into existence when
the unions realized that settlement of disputes through industrial courts was wasteful in terms
of time, energy and money and also a hinderence to industrial peace and harmony.

International Labour Organization. "Collective bargaining and labour relations ."

How Collective Bargaining Works
As noted above, the International Labour Organization (ILO) states that
collective bargaining is a fundamental right available to all workers. This
means that all employees are entitled to present their grievances to their
employers and to be able to negotiate them. According to the ILO,
collective bargaining helps reduce inequalities in the workplace while
providing workers with labor protection.1

Collective bargaining normally takes place between members of corporate

management and labor union leaders, who are elected by workers to
represent them and their interests. Collective bargaining is initiated when
employee contracts are up for renewal or when employers make changes
to the workplace or contracts. These changes include, but aren't limited to:

 mployment conditions
 Working conditions and other workplace rules
 Base pay, wages, and overtime pay
 Work hours and shift length
 Holidays, sick leave, and vacation time
 Benefits related to issues such as retirement and healthcare23

These issues fall into three different categories, which are referred to as
mandatory subjects, voluntary subjects, and illegal subjects. Mandatory
subjects include anything that the law requires of the employer, such as
salary, overtime, and workplace safety. Voluntary subjects include
negotiable things the law doesn't require like union issues and decisions
about employer board members. Illegal subjects involve anything that
violates laws, such as workplace discrimination.3

The goal of collective bargaining is called a collective bargaining

agreement. This agreement is meant to establish rules of employment for
a set number of years. Union members pay for the cost of this
representation in the form of union dues. The collective bargaining process
may involve antagonistic labor strikes or employee lockouts if the two
sides have trouble reaching an agreement.

Collective Bargaining Steps

Collective bargaining can be an intense process that can be stressful and
difficult for all parties involved. It often involves a lot of back-and-forths,
with offers and counteroffers. But the end goal is to reach an agreement.

The process goes through a number of stages. These steps can be

summed up as follows:
 1. Identifying the issues and preparing the demands: This may
include a list of grievances, such as abusive management practices
or low salaries.
2. Negotiating: The union will hire a team of professional negotiators
to reach an agreement with the employer. The employer will also
hire negotiators, and the two teams will continue to meet until they
find a satisfactory agreement.
3. Coming to a tentative agreement: Once an agreement is reached,
both teams of negotiators will submit the agreement to their
constituents. At this time, any last-minute issues will be raised as the
details are hammered out.
4. Accepting and ratifying the agreement: The agreement will be
submitted to union members, who will have the opportunity to vote
for or against the new contract.
5. Administering the agreement: After an agreement is finalized,
workers and shop stewards will continue monitoring to ensure that
the company is abiding by its obligations. 56

There are instances, though, where the parties involved can't come to an
agreement. If the negotiation period expires without a collective bargaining
agreement in place, union representatives may suggest that workers go on
strike until their demands are met.

Employers, on the other hand, may decide to lock out their employees until
a suitable agreement is reached. If they are locked out, employees have
the right to picket. In most cases, neither party wants to reach these
points, which are considered drastic measures that are used as a last
resort.7

Collective Bargaining Laws

Most industrialized countries have laws that protect the right to engage in
collective bargaining and form unions, although there may be restrictions
on certain industries. In the United States, the National Labor Relations
Act (NLRA) protects the right of most workers to engage in collective
bargaining activities.8

This includes the right to form and join unions, the right to discuss pay and
other grievances, and the right to strike. It also prohibits any employee
from being fired for protected activity. However, certain categories of
workers are specifically excluded from the NLRA; those include federal,
state, and local government employees and agricultural laborers.9

The National Labor Relations Board is the government body that regulates
labor practices and collective bargaining under the NLRA. It is also
responsible for supervising union elections and ensuring that workers are
not pressured to vote one way or the other.

Many states also have laws regarding collective bargaining. In the 2022
midterm elections, Illinois voters approved an amendment that would
enshrine collective bargaining rights in their state's constitution.10 Moving
in the opposite direction, Tennessee voters approved a referendum that
would add a right-to-work law provision to their state constitution,
restricting the power of unions.11

Types of Collective Bargaining

Not all types of collective bargaining are the same. In fact, collective
bargaining can be divided into several categories. We've noted some of
the most common types below.5

Composite Bargaining
Composite bargaining has nothing to do with compensation. Instead, it
focuses on other issues, such as working conditions, job security, and
other corporate policies, These may include hiring and firing practices as
well as workplace discipline. The goal of composite bargaining is to come
up with a suitable agreement leading to a lasting and harmonious
relationship between employers and their employees.

Concessionary Bargaining
As its name implies, concessionary bargaining focuses on union leaders
making concessions in exchange for job security. This is common during
an economic downturn or recession. Union leaders may agree to give up
certain benefits in order to guarantee the survival of the employee pool
and, ultimately, of the business.

Distributive Bargaining
This process is characterized as benefiting one party financially at the
expense of the other. This can come through increased bonuses, salaries,
or any other financial benefits. Distributive bargaining normally favors
workers over employers.

Unions must have a higher degree of power in order for distributive

bargaining to work. Higher membership means more power. If an
employer refuses to accept a union's demands, it can call a strike.

Integrative Bargaining
Each party tries to benefit through integrative bargaining, which is why it's
often referred to as a form of win-win bargaining. Each side tries to
consider the other's position and bring issues to the table that aim to
benefit both parties. As such, employees and employers both stand to lose
and gain with integrative bargaining.

Productivity Bargaining
This type of bargaining revolves around compensation and the productivity
of employees. Labor union leaders often use higher salaries and
compensation as a way to boost employee productivity, which leads to
higher profits and value for the employer. In order for this kind of
bargaining to work, both parties need to agree to financial terms in order to
increase productivity.

Unions represent a variety of workers, including (but not limited to) grocery
store employees, airline employees, professional athletes, teachers, auto
workers, postal workers, actors, farm workers, and steelworkers.

Advantages and Disadvantages of Collective

Bargaining
Advantages
As the name implies, workers have a larger voice through collective
bargaining. Being in a group with the same goal(s) gives employees more
power to negotiate demands with their employers. Companies may be able
to shut out the voices of one or two employees but can't necessarily do the
same with a larger group of unified individuals.

Workplace conditions under collective bargaining can see significant

improvements and guarantee all workers the same protections. This
includes the implementation of health and safety checks as well as
suitable salaries, overtime pay, and vacation time.

Employers and employees are fully aware of their rights and

responsibilities under a collective bargaining agreement. Once
employment terms are negotiated, a contract is drawn up. Both parties
agree to the terms, which are clearly defined.

Disadvantages
As mentioned above, collective bargaining is often a long, drawn-out
process that can take weeks or even months. Employers and labor
union leaders may have to go back and forth with employment terms.
Union leaders are required to update employees and must put the terms to
a vote. If employees vote to reject a contract, the negotiating process
begins again.

Collective bargaining often comes at a high cost. Employees and

employers may have to take time off from work in order to negotiate. This
means less time on the job and, therefore, a drop in productivity. Lengthy
negotiations can affect a company's bottom line.

The process is often considered biased. Because employees are able to

band together under a single union, employers may be forced to negotiate
and accept unfavorable terms in order to keep their businesses running
without much disruption.

Pros and Cons of Collective Bargaining

Pros

 Employees have a larger voice.

 Improves workplace conditions and protects employees

 Establishes rights and responsibilities of employers and employees

Cons

 Lengthy process

 Comes at a high cost

 Employers may be forced to negotiate and accept unfavorable

terms.

rocess of Collective Bargaining

1- Preparation

2- Discuss

3- Propose

4- Bargain

5- Settlement

 The first step is about the preparation of both parties. It is important

for the negotiation team to have the knowledge of the organization as
well as the skills to be an effective negotiator and establish objectives
for the negotiation. An understanding of the working conditions, as
well as dissatisfaction with working conditions, is an important part of
preparation. The team should also prepare and anticipate union
demands.
 The second step involves a discussion between both the parties
that consists of setting ground rules for how the negotiation will
occur.
 In the third step, each party presents proposals that involve initial
opening statements and options to resolve the situations that exist. A
discussion is conducted wherein opinions of both the parties are
sought.
 In the fourth step i.e., Bargaining, negotiations take place until a
final agreement is reached. The key is to negotiate with a problem-
solving attitude.
 The fifth step i.e., Settlement is the final stage of the collective
bargaining process wherein both the parties come to terms on a
common solution the problem already discussed. Therefore, a
mutual agreement is formed which is to be signed by each party to
get the dispute settled.