Collective Bargaining

It is a process through which the

representatives of management and union
meet to negotiate labour agreement.
It is a process of joint decision making
which basically represents a democratic way
of life in industry.
It is a method by which the management
and labour explore each others problems and
view-points and develop a framework of
employment relations and a spirit of co
operative goodwill for their mutual benefit.
 The employer and workers thus collectively
settle between themselves the terms and
conditions of employment for the mutual benefit
of both parties.
Definition:
:CB is defined as the negotiations about
working conditions and terms of employment
between an employer and a group of
employees or one more employee, organization
with a view to reaching an agreement wherein
the terms serve as a code of defining the rights
and obligations of each party in their
employment relations with one another.”
 Features of Collective Bargaining
 It is a group process, wherein one group
representing the employer and the other
representing the employees sit together to
negotiate terms of employment.
 Negotiations form an important aspect of the
process of CB i.e. there is considerable scope
for discussion, compromise, mutual
understanding.
 It is flexible or mobile and not fixed or static.
 It is a bipartite process.
 Features of Collective Bargaining
 CB is a process in the sense that it consists of
a number of steps. It begins with presentation
of the chapter and ends with reaching of an
agreement which would serve as the basic
law governing labour management relations
over a period of time in the enterprise.
 CB is a complimentary process i.e each party
need something that the other party has,
labour can increase productivity and
management can pay better for their efforts.
 Features of Collective Bargaining
 CB is a continuous process.
 It enables industrial democracy.
 CB takes into account day to day change,
policies, capacities and interests.
 Pre Requisites of Collective
Bargaining.
 Strong unions with constitutional means.
 Strong management.
 Agreement on basic objectives.
 Fact finding approach and willingness to use
new ways to find out solutions.
 Well defined policies by both parties.
 Give and take attitude.
 Specialized training for effective bargaining.
 Process of Collective Bargaining
CB is a continuous, flexible, dynamic and mobile
process which covers negotiations of contracts,
the grievance procedures and the settlement of
disputes as well as economic sanctions.
CB begins with presentation of the chapter and
ends with reaching of an agreement which
would serve as the basic law governing labour
management relations over a period of time in
the enterprise.
There are two important stages in collective
bargaining:
1. The Negotiation Stage.
 Identification of Problem.
 Preparing for Negotiation.
 Negotiations of Agreement.
For Union and Management.
For Management.
2. The Stage of Contract Administration.
 Principles of contract for Union and
Management.
 Principle of contract for Management.
 Principle of contract for Trade unions.
3. Renewal of Agreement.
 Contents of Collective Agreement
The Indian Institute of Personnel Management
Suggested that suggests that the following should
be included in a collective bargaining agreement:
 The purpose of the agreement, its scope and the
definitions of important terms.
 The rights and responsibilities of the management
and of the unions.
 Wages, bonus, production norms, leaves other
benefits and terms and conditions of service.
 Grievance procedure.
 Method of and machinery for settlement of disputes.
 A termination clause.
 Types of Collective Bargaining
CB can be broadly classified under three heads:
A Single Employer or a Single Plant
Bargaining:
Here the employer has only one plant. The
bargaining may take any of the following form:
 The employer may bargain with the industrial
union separately.
 He may bargain with one industrial union only.
 He may bargain with all of them separately.
 He may bargain with a joint negotiation
committee formed by all the unions in that plant.
Single employer, Many plants:
Here the employer has many plants in the
same industry.
 Bargaining can take place independently at
each of the plants and separate plant level
agreements may be arrived at by the
employer.
 The employer may enter into a single
agreement which stands for all plants instead
of one for each.
Many Employers, Many Plants:
In this type there can be some forms of CB:
 Plant level bargaining: in this case it is
presumed that all employers are members of
the same employers association.
 Local level bargaining: usually in this type of
bargaining employers operating in the same
industry in a certain locality negotiate on one
agreement which is applicable to all plants of
that industry in that locality.
 Regional level bargaining: this bargaining is
prevalent in countries.
Industrial level bargaining: here bargaining
takes place between the Industrial Employers
Association on one hand and Industrial
Labour Association on the other.
Economy level bargaining: here bargaining
takes place between employers and trade
unions. Basic agreements with regards to
wages hours of work and related terms are
discussed.
 Importance of Collective Bargaining
 Increases the economic strength of union and
management.
 Establish uniform conditions of employment with
an view to minimize industrial disputes.
 Secure a prompt and fair redressal of grievance.
 Lay down fair rates of wages and norms of
working conditions.
 Achieve an efficient operation of the plant.
 It provides a solution to all other problems in
industry.
 It creates new and varied procedures.