COLLECTIVE

BARGAINING
•Amitabha Gupta

•Swami Vivekananda
University
 Objective
Meaning & &
Topics To Definition Importanc
e

Be
Process of
Effective
Covered Collective
Bargain
Condition
Meaning &
Definition
A process of negotiations
between employers and a
group of employees (a
union) aimed at reaching
agreements that regulate
working conditions.
Collective Bargaining:
Redefi ned

“ Col le c ti ve b ar g a ini ng is t he t e r m u se d
t o d e sc r ib e a s i tua t i on i n w hi ch t he
e ss e nt ia l c ond it i ons of em pl oym ent a r e
d et e rm i ned b y ba r g ai ni ng pr oc e ss
und er t a ke n b y r ep r es en ta t ive s of a
g ro up of w or ke r s on t he one h a nd and
of o ne or m or e e mp loye r s on t he othe r.
Features of Collective
Bargaining

It is a collective process. The representatives of both workers

and management participate in bargaining.

• It is a continuous process. It establishes regular and stable

relationship between the parties involved. It involves not
only the negotiation of the contract, but also the
administration of the contract.

• I t i s a fl e x i b l e a n d d y n a m i c p r o c e s s . T h e p a r t i e s h a v e t o
a d o p t a fl e x i b l e a t t i t u d e t h r o u g h t h e p r o c e s s o f b a r g a i n i n g .

• It is a method of partnership of workers in management

Importance of Collective Bargaining

Importance to employees

• Collective bargaining develops a sense of self respect and responsibility

among the employees.

• I t i n c r e a s e s t h e s t r e n g t h o f t h e w o r k f o r c e , t h e r e b y, i n c r e a s i n g t h e i r
bargaining capacity as a group.

• Collective bargaining increases the morale and productivity of employees.

• I t r e s t r i c t s m a n a g e m e n t ’s f r e e d o m f o r a r b i t r a r y a c t i o n a g a i n s t t h e
e m p l o y e e s . M o r e o v e r, u n i l a t e r a l a c t i o n s b y t h e e m p l o y e r a r e a l s o d i s c o u r a g e d .

• E ff e c t i v e c o l l e c t i v e b a r g a i n i n g m a c h i n e r y s t r e n g t h e n s t h e t r a d e u n i o n s
movement.
 Importance to employers

• It becomes easier for the management to resolve issues at the

Importance
bargaining level rather than taking up complaints of individual
workers.

of
• Collective bargaining tends to promote a sense of job security
among employees and thereby tends to reduce the cost of labor
turnover to management.

Collective • Collective bargaining opens up the channel of communication

between the workers and the management and increases worker
participation in decision making.

Bargaining • Collective bargaining plays a vital role in settling and preventing

industrial disputes.
 Distributive bargaining: Under it, the economic issues like wages, salaries and bonus
are discussed. In distributive bargaining, one party’s gain is another party’s loss.

• Integrative bargaining :This involves negotiation of an issue on which both the

parties may gain, or at least neither party loses.

Types Of
Bargaining • Attitudinal restructuring :This involves shaping and reshaping some attitudes like
trust or distrust, friendliness or hostility between labor and management.

• Intra-organizational bargaining: It generally aims at resolving internal conflicts.

This is a type of maneuvering to achieve consensus with the workers and
management. Even within the union, there may be differences between groups.
 Recognition of the Bargaining Agent . The
management should give recognition to the
trade union for par ticipating in the collective
bargaining process.
Effective
Deciding the Level of Bargaining . Whether

Conditions or the dealings are confi ned to enterprise level,

industr y level, regional or national level

Prerequisite should be decided as the contents, scope and

enforcement agencies diff er in each case.

for Collective Determining the Scope and Coverage of

Bargaining . It would be better to have a

Bargaining clear understanding of what are the issues

to be covered under bargaining.
Effective Trade Union Recognition

Conditions or • Observance of Agreements

• Support of Labour Administration

Prerequisite Authorities

for Collective • Good Faith

• Proper Internal Communication

Bargaining
QUESTIONS &
ANSWERS