Collective Bargaining

and Negotiations
Collective Bargaining -

 Negotiations between the employer, a

group of employers or organisation on one
hand and one or more workers on the
other hand

 It is a joint – making rule

Types of Bargaining -

 Distributive Bargaining
Issues like wages, salaries are discussed

 Attitudinal Bargaining
Efforts are made to change thinking and attitude of
both he parties

 Integrative Bargaining
Equal gain of both the parties is ensured
Contd…..
 Intra – Organisational Bargaining
Both the parties prefix their own strategy by consensus
Purpose of Collective Bargaining -

 Regulates the relations between employer

and workmen
 Determines the working conditions and
terms of employment
PROCESSOFCOLLECTIVEBARGAINING
Collective Bargaining Agreement
 Written document regarding working
conditions and terms of employment

 Legally, a CBA binds only the parties

to it.

 In India, there are three types of

agreements, namely
 voluntary agreements,
 settlements, and
 Consent awards.

 procedural agreements or
substantive agreements
Features of Collective Bargaining -
 Group Action
 Has become an Art
 Complementary, not a competitive process
 Continuous process
 Logical process
 Highly flexible
 Dynamic process
 Bipartite process
Importance of Collective Bargaining

 Develops a sense of respect &

responsibility among employees
 Increases morale & productivity of
employees
 Increases the strength of workforce,
increasing their bargaining capacity as a
group
Contd……
 Opens up channel of communication
 Leads to industrial peace
 Develops harmonious industrial climate
 Plays a vital role in settling and preventing
industrial disputes
 Increases worker participation in decision
making
Functions of Collective Bargaining -
 Establishes uniform conditions of employment

 Promotes stability of the enterprise

 Increases economic strength of the employees

 Lays down fair rates of wages for workers

 Fair redressal of grievances

 Contents of Collective Bargaining Agreement
 The date of commencement of the
agreement

 Its duration

 A definition of terms

 The procedure for settling disputes

regarding interpretation, as well as other
disputes.

 The consequences in the event of

breaches of the agreement

 As regards wages, exactly how conversion

of employees' wages to the new scales is
to be effected.
Levels of Collective Bargaining -

 National Level
 Industry/Sector Level
 Company/Enterprise Level
National Level -
 Is a bipartite or tripartite form of
negotiation between union confederations,
central employer associations and
government agencies. It aims at providing
a floor for lower-level bargaining on the
terms of employment
Industry Level -
 aims at the standardization of the terms of
employment in one industry, includes a
range of bargaining patterns
Company Level -
 industrial activities covered and may be
either split up according to territorial
subunits or conducted nationally.
Three authorities under it are -
 Conciliator
• Board of Conciliation
• Conciliating Officer
 Adjudicator
• Tribunal Court
• Labour Court
• National Court
• Arbitrator
 Arbitrator
• Board of Arbitration
• Arbitrator
Conditions For Successful Collective
Bargaining
 Trade Union Recognition

 Observance of Agreements

 Support of Labour Administration

Authorities

 Good Faith

 Proper Internal Communication

Negotiation -
 Process in which the parties with common
and conflicting interests communicate with
a view to reach an agreement

 Could result in win – lose situation

 Concerned with purposeful persuasion
and constructive compromise
Negotiation Skills -
 Focus on interest, do not take positions
 Focus on problem, not person
 Invent multiple solutions
 Be creative
 Expand the Profit Pipe
 Give parties things valued by them, not by
you
 Build on understanding
Draft -
 Define Scope
 Define Terms
 Define Conditions
 Take parties with confidence
 Sent copies to officers