PRESENTATION

ON
COLLECTIVE
BARGAINING

PRESENTER
Ms. Shelley Khosla
 INTRODUCTION OF COLLECTIVE
BARGAINING

The concept of collective bargaining was introduced very late in

India as trade unions were found only in 20th century. The concept of
collective bargaining attained significance only after 1962. The
phrase collective bargaining is said to be coined by Sydney and
Beatrice Webb and Great Britain. It is made up from two words
collective which means “group” and bargaining which means
“proposals and counter proposals”. So it is a process in which the
representatives of a labour organization & the representatives of
business organization meet and attempt to negotiate a contract or
agreement, which specifies the nature of employee-employer union
relationship.
 DEFINITION
“COLLECTIVE BARGAINING IS AN
AGREEMENT BETWEEN A SINGLE
EMPLOYER OR AN ASSOCIATION OF
EMPLOYERS ON THE ONE HAND AND A
LABOUR UNION ON THE OTHER, WHICH
REGULATES THE TERMS AND
CONDITIONS OF EMPLOYMENT”
TUDWIG TELLER
 DEFINITION

“COLLECTIVE BARGAINING IS A PROCESS OF

DISCUSSION AND NEGOTIATION BETWEEN TWO
PARTIES, ONE OR BOTH OF WHOM IS A GROUP OF
PERSONS ACTING IN CONTEST…. MORE
SPECIFICALLY IT IS THE PROCEDURE BY WHICH AN
EMPLOYER OR EMPLOYERS AND A GROUP OF
EMPLOYEES AGREE UPON THE CONDITIONS OF
WORK”

(THE ENCYCLOPEDIA OF SOCIAL SCIENCE)

HISTORY OF COLLECTIVE

BARGAINING
 OBJECTIVES OF COLLECTIVE
BARGAINING

 Resolve differences over knotty

issues.
 Protect the interests of workers
through collective action.
 Carry out negotiations voluntarily,
without interference from a third
party.
 Arrive at an amicable agreement
through a process of give and take.
 To arrive at an agreement on wages
and other conditions of employment.
 To have peaceful co-existence for
the mutual benefits and progress.
 To maintain employee-employer
relation bilaterally.
 CHARACTERISTICS
• Collective: Collective bargaining is a two way group process where the employers
representative and employees representatives sit together to negotiate terms of
employment.

• Strength: Both the parties in collective bargaining are strong and equal.

• Voluntary: Both parties come to the negotiation table voluntarily in order to go in

particular negotiation. It is based on discussion, mutual trust and understanding.

• Formal: It is a formal process in which certain employment related issues are to be

regulated at National, organization and workplace levels.

• Flexible: It is a flexible and continuous process and not fixed or static.

• Improvement: It is a method to improve the employer-employees relation in

organization and resolve management and employees conflicts.
 CONTD…
• Representation: Collective bargaining is between the representatives
of employees and management. The management does not directly
deal with employees. It carries negotiations with the
representatives/executives of unions and association.

• Dynamic: Collective bargaining is dynamic, that go on changing over

a period and grows and expand the way of agreement, the way of
implementation and way of discussion.

• Continuous: Collective bargaining is continuous and begins with

agreement, the implementation of agreement and further negotiations.

• Bipartite Process: Because the employee and employers

representatives negotiate directly face to face across the table.
 Prerequisites for collective bargaining
1. The parties must attain a sufficient degree of
organisation: If the workers’ organisation is weak,
employers can say that it does not represent the
workers and will refuse to negotiate with it. Unless
the workers are able to form strong and stable
unions, collective bargaining will not be successful.

2. Freedom of association is essential for collective

bargaining: Freedom of association implies that the
workers as well as the employers will have the right
to form an organisation of their own to protect their
interests.
 Prerequisites for collective bargaining
3. There should be mutual recognition between both the
groups: Collective bargaining cannot begin if the
employers do not recognise the workers’ organisation.
The conflict of interests makes the two groups hostile to
each other. 

4.  There must exist a favourable political climate,

essential for successful collective bargaining: If the
government encourages collective bargaining as the
best method of regulating conditions of employment, it
will be successful.
 Prerequisites for collective bargaining
5. Agreement must be observed by those to whom they
apply: The workers’ organisation must be strong enough
to exercise its authority over its members. If the trade
union has no power over its members, collective
bargaining will not be effectively implemented.

6. A give and take policy must prevail in the organisation:

The difference between two parties can be adjusted
only by compromise so that an agreement can be
reached. Neither side should be too rigid on its demand.
 Prerequisites for collective bargaining

7. Unfair labour practices should be avoided by both

the sides, as this will create an atmosphere of
goodwill.
8. Recognition of the Bargaining Agent
9. Deciding the Level of Bargaining
10. Determining the Scope and Coverage of
Bargaining
 PRINCIPLES OF COLLECTIVE BARGAINING

For Unions and Management For the Management

• honest attempt at solving a • Management must develop and
problem rather than at a consistently follow a realistic
compromise. labour policy.
• respect of each other. • Management must grant
• There must be mutual recognition to it.
confidence, desire & good faith • Management should periodically
• There should be an honest, able examine the rules and
and responsible leadership regulations.
• The two parties should • Management should place
meticulously observe and abide greater emphasis on social
by all the national and state considerations
laws which are applicable to
collective bargaining.
 PRINCIPLES OF COLLECTIVE BARGAINING
For the Trade Union   

• The Trade union members have an obligation to assist the

management in the elimination of waste and in improving the quality
and quantity of production, in addition to their demands.

• Trade union leaders should appreciate the economic implications of

collective bargaining, for their demands are generally met from the
income and resources of the organization in which their members are
employed.

• Trade union leaders should think of society’s interest also.

• Trade unions should resort to strikes only when all other methods of
the settlement of a dispute have failed
 TYPES OF BARGAINING
CONJUNCTIVE OR DISTRIBUTIVE BARGAINING: Conjunctive
bargaining is the most common type of bargaining & involves zero-sum negotiations,
in other words, one side wins and the other loses. Both parties try to maximize their
respective gains. They try to settle economic issues such as wages, benefits, bonus,
etc. For Example, Unions negotiate for maximum wages & the management wants to
yield as little as possible – while getting things done through workers.

COOPERATIVE /INTEGRATIVE 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 the employer & the union try to
resolve the conflict to the benefit of both parties. Both sides share information about
their interests and concerns and they create a list of possible solutions to best meet
everyone’s needs.
 CONTD…

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. Productivity bargaining has
been described as "an agreement in which advantages of one kind or another, such as higher
wages or increased leisure, are given to workers in return for agreement on their part to accept
changes in working practices or in methods or in organization of work which will lead to more
efficient working.

COMPOSITE BARGAINING: Workers believed that productivity bargaining agreements

increased their workloads. Rationalization, introduction of new technology, tight productivity
norms have added to this burden and made the life of a worker some what uneasy. As an
answer to such problems, labor has come in favor of composite bargaining. In this method,
labor bargains for wages as usual, but goes a step further demanding equity in matters relating
to work norms, employment levels, manning standards and enviornmental hazards etc.
 Issues of collective
bargaining
1. Wages and working conditions
2. Work norms
3. Incentive payments
4. Job security
5. Changes in technology
6. Work tools, techniques and practices
7. Staff transfers and promotions
8. Grievances
9. Disciplinary matters
10. Health and safety
11. Insurance and benefits
12. Union recognition
13. Union activities/responsibilities
14. Management rights
COLLECTIVE BARGAINING
PROCEDURE
PROCESS OF COLLECTIVE BARGAINING
Collective Bargaining Process
• Prepare

• Discuss

• Propose

• Bargain

• Settlement
PROCESS OF COLLECTIVE BARGAINING

The collective bargaining process involve five steps:

Prepare: This phase involves composition of a

negotiation team.

Discuss : Both parties decide the rules that will

guide the negotiations.

Propose : It involves the initial opening statements

and the possible options that exist to resolve them.
 CONTD…
• Bargain: Negotiations are easy if a problem
solving attitude is adopted. This stage comprises
the time when ‘what ifs’ and ‘supposals’ are set
forth and the drafting of agreements take place.

• Settlement: This stage is described as consisting

of effective joint implementation of the
agreement through shared visions, strategic
planning and negotiated change.
 OBSTACLES
o Registered nurses who
participate in organizing
drives could be summarily
fired.

o Hospital could refuse to

recognize and bargain with
nursing organizations.

o The associations spend

years softening up the turf.
 ADVANTAGES
•Participation in decision making process.

•Step to gain control of practice.

•Improve professional relationships.

•Professionalism can be promoted.

•Protect patients from inadequate and unsafe care.

• Give economic security.

• Ensure to have fair pay, good benefits and safe working conditions.

• Provide power.

•Establish effective channels of communication with decision-makers.

DISADVANTAGES
Reduced individuality.

 Other union members

may outvote one’s
decisions.

 Disputes are not handled

with individual and
management only.

 Must pay union dues

even if one does not
support unionization.
 Conditions For Successful Collective Bargaining
• Trade Union Recognition
• Strong Trade Union
• Mutual Accommodation
• Compulsory Recognition of Trade Unions
• Observance of Agreements
• Support of Labour Administration Authorities
• Good Faith
• Political Climate
• Emphasis on Problem-solving Attitude
• Proper Internal Communication
• Efficient Bargaining Mechanism (There are three aspects)
(a) Availability of full information
(b) Selection of proper representatives
(c) Recognition of natural temperament of each other.
PERCEPTIONS ON COLLECTIVE BARGAINING
• CB essentially means negotiations between the labour and
management
• The parties have to adopt a flexible attitude throughout the
process of bargaining
• It is based on give and take approach and take or leave
approach.
• Once both the parties know what they want, negotiations
become easier and better.
• “good faith” in both the parties.
• CB agreement is a written format.
• It is necessary to create a win – win situation for both the
parties, if this is not done, the process of CB just acts as a
temporary solution.
THANK YOU

ANY QUERY