COLLECTIVE

BARGAINING
Submitted by Karandeep Singh 03613202817
DEFINITION

 Collective Bargaining is the agreement between the a

single employer or an association of the employers on the
one hand and labor union on the other
 Collective Bargaining is the processes in which the
representative of a labor organization and the
representative of the business organization meet and
attempt to negotiates a contracts or agreement.
TYPES OF COLLECTIVE BARGAINING

 DISTRIBUTIVE
 INTEGRATIVE
 PRODUCTIVITY
 COMPOSITE
DISTRIBUTIVE OR COLLECTIVE
BARGAINING
 Conjunctive bargaining is the most common type of bargaining &
involves zero-sum negotiations, in other words, one side wins and the
other loses.
 This involves bargaining over the distribution of surplus. in this,
economic issues like salaries , wages and bonuses.
 Economic issues like wages, salaries and bonus are discussed.
 One party’s gain is another party’s loss.
 More competitive.
 e.g. Unions negotiate for maximum wage
INTEGRATIVE OR CORPORATIVE
BARGAINING
 Integrative bargaining is similar to problem
solving sessions in which both sides are trying to
reach a mutually beneficial alternative, i.e. a
win-win situation
 Both parties may gain or neither party losses.
 Both the parties are trying to make more of
something.
PRODUCTIVITY BARGAINING

A form of collective bargaining leading to a

productivity agreement in which
management offers a pay raise in exchange
for alterations to employee working
practices designed to increase productivity.
COMPOSITE BARGAINING

 It is a type of bargaining where employees/unions bargain

to get equity in matters, such as work norms and policies,
salary level, growth opportunities, working conditions,
and health and safety issues.
 For example, when the union, apart from considering
ways to increase productivity, negotiates on working
standards to ensure that the work load of the employees
do not exceed, it is termed as composite bargaining.
PROCESS OF COLLECTIVE BARGAINING

-Preparatory phase
- Discussion phase
- Proposal phase
- Bargaining
- Settlement phase
- Formalizing agreement
- Enforcing agreement
PREPARATORY PHASE

 Selection of negotiation team

 This phase involves composition of a negotiation team.
 It consist of the representatives of the both parties.
 They should have adequate knowledge and skills for the
negotiation.
 Identification of problem.
 Enough supporting data is kept ready
DISCUSSION PHASE

 Decideand appropriate time and set a

proper climate for negotiation.
 Maintenanceof mutual trust and
understanding.
 Involve
in active listening, asking questions,
observation and summarizing decision.
PROPOSAL PHASE

 This phase could be described as brainstorming‘.

The exchange of messages takes place and
opinion of both the parties.
 Initial opening of statement.
 Possible alternative/opinion to resolve the issue
by both parties.
BARGAINING PHASE

 Boththe parties will involve in the

following activities:-
 Problem solving
 Proposal
SETTLEMENT PHASE

 Settlement phase start with:-

 This stage is described as consisting of effective
joint implementation of the agreement through
shared visions, strategic planning and negotiated
change.
 Agreement on common decision.
FORMALIZING AGREEMENT

 Drafting of agreement:-
After good faith bargaining, a formal document must
prepare.
It should be simple, clear and concise.
 Signing the agreement:-
Both parties sign the agreement and abide by its terms and
conditions.
ENFORCING AGREEMENT

 To
have the agreement effective and
meaningful, it should be enforced or
implemented immediately
ADVANCTAGE OF COLLECTIVE
BARGAINING
 1) PROVIDE SECURITY TO WORKERS:- Since collective bargaining contracts are
legally binding agreement the employee can be sure of their work condition.
As longs as all terms are followed the management cannot be go back or
changed of the condition.
 2) PROHIBITS THE STRIKES:- This is the security is provided by the
management. Collective bargaining agreement prevents any employees from
striking or not working try to get different benefits. Strikes can cause huge
problems within company. so this is a big draw for management for collective
bargaining.
 3) GIVE EMPLOYEE A VOICE:- All the employee that the agreement will affects
are allowed to have a say in the condition. All voice are heard, which
promotes a much better moral in workplace. This also ensures that they want
and need of the majority are met.
 4) REDUCED BIAS AND FAVORITISMS:- All too often you heard stories of
someone getting additional benefits simply because with their boss or other
DISADVANTAGE OF COLLECTIVE
BARGAINING
 1) NOT ALL PEOPLE WILL AGREE:- Collective bargaining cater to need
of the many and disagree the few. The terms in the agreement could
negatively affects employee who have special circumstances or simply
do not agree.
 2) A LOSS OF AUTHORITY:- When the employee knows the exactly how
much power management has, and has say in things that they can and
cannot do, their role as the authority figure is greatly diminished
 3) REDUCED MANAGEMENT HAND IN BUSSINESS:- Constructive
development is hindered when the collective bargaining is used. If the
policy or the terms of the agreements truly need to be received or
removed, it is nearly possible to do.
CONCLUSION:

 Negotiation may be competitive or

collaborative, but collaborative negotiation
generally have more positive outcome. A
major goal is to make the other part feel
satisfied with the outcome. The focus
should be creates a win-win situation.
Thank You!