Lecture 7: Collective Bargaining

Topic covered
Conditions of collective bargaining

Benefits of collectible bargaining

Process of collective bargaining

1 Prepared by Rezbin Nahar

Conditions of Collective Bargaining
 A favorable political climate
If collective bargaining is to be fully effective, a favourable political
climate must exist. In particular, the government and public opinion
must be convinced that collective agreements are the best method of
regulating certain conditions of employment
 Freedom of association
Freedom of association is essential for collective bargaining. Where
it is restricted, collective bargaining is also restricted
 Stability of workers’ organization
Workers may have freedom of association but unless they make use
of that right and form and maintain stable unions, collective
bargaining will be ineffective

2 Prepared by Rezbin Nahar

Contd.
 Recognition of trade unions
Even assuming that freedom of association exists and that the workers
have established stable organizations, collective bargaining cannot
begin until employers recognize the organizations for that purpose
 Willingness to give and take
The fact of entering into negotiations implies that the differences
between two parties can be adjusted by compromise and concession in
the expectation that agreement can be reached
 Constructive consultation
Constructive consultation between trade union and management is
possible only when the bargaining power of two parties is relatively
equal

3 Prepared by Rezbin Nahar

Contd.
Contd
 The willing acceptance by management to recognize representative
union for this purpose
 Both the parties must have mutual confidence, good faith and a
desire to make Collective bargaining machinery a success
 The process of bargaining should be free from unfair practices
 Both the parties should represent the rights and responsibilities of
each other
 The attitudes of the parties should be positive

4 Prepared by Rezbin Nahar

Benefits of Collective Bargaining
 It provides a method for the regulation of conditions of employment
by those directly concerned. The employers and workers in an
industry know more about its conditions and problems than any one
else.
 It often leads to better mutual understanding. The employers gain a
greater insight into the problems and aspirations of the workers.
 It provides a flexible means of adjusting wages and conditions of
employment to economic and technological changes in industry.

5 Prepared by Rezbin Nahar

Contd.
 It provides a code defining the rights and obligations of each party
in their employment relations with one another. Basic standards are
fixed and every worker knows that he cannot be required to work
under conditions less favorable than those stipulated in the
agreement.
 It leads to better implementation of decisions because of the direct
involvement of both the parties in reaching them. Parties know that
the decisions are their own and are not imposed.

6 Prepared by Rezbin Nahar

Collective Bargaining Process
 Yoder identifies two major phases of collective bargaining process.
These are as follows:
 Negotiation phase
 Contract administration phase
 Negotiation phase: The negotiation phase involves the bargaining
and establishment of contract terms. Negotiation is a process of
advancing proposals, discussing and criticizing them, explaining and
exploring their meaning and effects, seeking to secure their
acceptance and making counter proposals or modifications for
similar evaluation. Negotiation may be positive or negative. In
positive negotiation the management tends to advance its own
proposals while in the negative procedure it waits to see what the
union will propose
7 Prepared by Rezbin Nahar
Contd.
Contd
 Contract administration phase: Contract administration phase relates
to application and interpretation of contract terms. Contract
administration relates to putting the signed agreement into effect.
 According to Dunlop and Healy collective bargaining process
involves three elements- 
 Bargaining demands
 The deadline or threat of strike or lockout
 Changing positions and reaching agreement
 Workers always try to ensure the fulfillment of their demands. They
have several demands. So collective bargaining agent bargain with
management for solving various demands arising directly out of
employer-employee relationship.

8 Prepared by Rezbin Nahar

 Threat of strike or lockout: Conflicting issues are settled through a
threat of strike or lockout at the last minute.
 Finally , the groups starting at divergent points should change their
positions if they intend to reach an agreement.

9 Prepared by Rezbin Nahar

10 Prepared by Rezbin Nahar