COLLECTIVE BARGAINING

13-09-2023
• Synopsis

1. Introduction:
2. Meaning and Definition:
3. Objective of collective bargaining
4. Duration of collective bargaining agreement:
5. Essential element to continue collective bargaining method:
6. Independence of trade union
7. Strong, permanent and democratic Trade Union
8. Sprit of Give and Take
9. Recognition of Trade Union
10. Absence of Unfair Labour Practices or victimizations
11. Benefit of Collective Bargaining:
12. Loss of Collective Bargaining:
13. Conclusion:
1. INTRODUCTION:

• Britain is the birth place of Collective Bargaining.

• But the word ‘Collective Bargaining’ was invented by Sydney and Beatrice Webb
in her book Industrial Democracy, 1897.

• The employer is superior in position due to his wealth.

• The Employee is economically weaker than the employer. He is not a position to

bargain with his employer. A group of employees will face this problem.

• A small rope cannot bind an elephant but the combination of rope can bind an
elephant.

• A trade union or a group of the representatives of workers can successfully

bargain with the employer by amicable discussions, but with force of power. It
is called the Collective Bargaining.
• UDHR, 1948

• The right to collectively bargain is recognized through international human

rights conventions. Article 23 of the Universal Declaration of Human Rights
identifies the ability to organize trade unions as a fundamental human right.

• International Labour Organization (1998). Declaration on Fundamental

Principles and Rights at Work. 86th Session: Geneva. Retrieved August 29,
2007.

• Item 2(a) of the International Labour Organization's Declaration on

Fundamental Principles and Rights at Work defines the “freedom of
association and the effective recognition of the right to collective bargaining”
as an essential right of workers.
• "C087 - Freedom of Association and Protection of the Right to Organise
Convention, 1948 (No. 87)". International Labour Organization. Retrieved 24
October 2013.

• The Freedom of Association and Protection of the Right to Organise Convention,

1948 (C087) and several other conventions specifically protect collective
bargaining through the creation of international labour standards that discourage
countries from violating workers' rights to associate and collectively bargain.

• The idea of collective bargaining emerged as a result of industrial conflict and

growth of trade union movement and was first given currency in the United
States by Samuel Crompers. In India the first collective bargaining agreement
was conducted in 1920 at the instance of Mahatma Gandhi to regulate labour
management relation between a group of employers and their workers in the
textile industry in Ahmadabad.
• C154 - Collective Bargaining Convention, 1981 (No. 154)

• The issue of dispute resolution is addressed in the Collective Bargaining Convention, 1981 (No. 154).
While Convention No. 154 focuses on collective bargaining, it does not rule out the use of conciliation
and/or arbitration as part of the bargaining process where such processes are voluntary.

• It also provides that bodies and procedures for the settlement of labour disputes should be designed to
contribute to the promotion of collective bargaining.

• This means they should be framed so as to encourage the two parties to reach agreement between
themselves.

• One objective of dispute resolution is indeed to promote the mutual resolution of differences between
workers and employers and, consequently, to promote collective bargaining and the practice of bipartite
negotiation.
• Article 6 of the Collective Bargaining Convention, 1981 (No. 154).
• Article 5(2)(e) of the Collective Bargaining Convention, 1981 (No. 154).
• Article 8 of the Labour Relations (Public Service) Convention, 1978 (No. 151) concerning settlement of
disputes in the public sector.
• As such, in the ILO’s view, the effective resolution of labour disputes is closely
linked to the promotion of the right to collective bargaining.

• In this context, the structure of dispute settlement systems is designed to promote

collective bargaining, for example, by requiring the parties to exhaust all
possibilities of reaching a negotiated solution or to exhaust the dispute settlement
procedures provided for by their collective agreement before having access to state-
provided procedures.

• In addition, Collective Bargaining Recommendation, 1981 (No. 163) specifies that

measures adapted to national conditions should be taken, if necessary, so that the
procedures for the settlement of labour disputes assist the parties to find a solution
to the dispute themselves, whether such dispute arose during the negotiation of
agreements, or in connection with the interpretation and application of agreements,
or is covered by the Examination of Grievances Recommendation, 1967 (No.130).
2. MEANING AND DEFINITION:
• The meaning of the expression Collective Bargaining has been the subject matter of
controversy and it is defined in a variety of ways.
• Collective Bargain consists two words.
• Collective: means a group action through its representative.
• Bargaining: means an agreement, something bought or sold cheap or at a reasonable
price.

• The International Labour Convention on Collective Agreements held in 1951 defines:

• the term collective agreements means all agreements in writing regarding working
conditions and terms of employment concluded between an employer, a group of
employers or one or more employers' organisations, on the one hand, and one or more
representative workers' organisations, or, in the absence of such organisations, the
representatives of the workers duly elected and authorised by them in accordance with
national laws and regulations, on the other.
• According to Beach, “Collective Bargaining is concerned with the relations between unions reporting
employees and employers (or their representatives).

• Harbision defines; Collective Bargaining is a process of accommodation between two institutions

which have both common and conflicting interests.

• According to manual published by ILO in 1960 Collective Bargaining has defined as:

• “Negotiations about working conditions and terms of employment between an employer, a group of
employees or one or more employers organization on the other, with a view to reaching an
agreement.

• According to Flippo, “Collective Bargaining is a process in which the representatives of a labour

organization and the representatives of business organization meet and attempt to negotiate a
contract or agreement, which specifies the nature of employee-employer union relationship”.

• According to Golden, Collective Bargaining as a measure to distribute equitably the benefits from
industry among all the participants including the employees, the union, the management, the
customers, the suppliers and the public.
3. OBJECTIVE OF COLLECTIVE BARGAINING

• The International Confederation of Free Trade Union called Collective Bargaining ‘A Workers
Bill of Rights’. It enumerates the following objects of the union in Collective Bargaining:

1. To established and build union recognition as an authority in the work place;

2. To raise workers’ standard of living and win a better share in company profits;
3. To express in practical terms the workers’ desire to be treated with due respect and to achieve
democratic participation in decisions affecting their working conditions’
4. To establish orderly practices for sharing in these decisions and to settle dispute which may
arise in day-today life of the company;
5. To achieve broad general objective such as defending and promotion the workers’ interested
throughout the country.

• The primary object of Collective Bargaining is to resolve the differences between the parties in
respect of employment, non-employment, terms of employment and conditions of service of the
members of the union.
• 4. DURATION OF COLLECTIVE BARGAINING AGREEMENT:

• The tendency on the part of the union to have the contract of short duration, but
management on the other hand prefers agreement of long duration.

• 5. ESSENTIAL ELEMENT TO CONTINUE COLLECTIVE BARGAINING

METHOD:

1) Independence of trade union

2) Strong, permanent and democratic Trade Union
3) Sprit of Give and Take
4) Recognition of Trade Union
5) Absence of Unfair Labour Practices or victimizations
6. REASONS FOR GROWTH OF COLLECTIVE BARGAINING IN INDIA

• Preamble
• Article 43
• Article 43-A
7. BENEFIT OF COLLECTIVE BARGAINING:

• Collective Bargaining has been preferred over compulsory adjudication system

for several reasons;

(1)It is a system based on bipartite agreement (द्विपक्षीय समझौता) and such is

superior to any arrangement involving third party intervention in matter
which essentially concern employers and workers.
(2)It is a quick and efficient method of settlement of industrial dispute and avoids
delay and unnecessary litigation;
(3)It is a democratic method of settlement industrial disputes.

(4)CB provide an opportunity to participate in the management of the Industry.

(5)The self-respect of the workers is maintained in collective Barganing.

8. LOSS OF COLLECTIVE BARGAINING:
• A major drawback to using this type of negotiation system is that, even
though everyone gets a say in what happens, ultimately, the majority
rules, with only a few people determining what happens too many.
• This means that a large number of people, particularly in the general
workforce, can be overshadowed and feel like their opinion doesn’t
really matter.
• In the worst case scenario, this can cause severe division and hostility in
the group.
• Secondly, it always requires at least two parties. Even though the system
is supposed to pull both parties together, during the process of trying to
reach an agreement, people can adopt us-versus-them mentality.
• When the negotiations are over, this way of looking at each other can be
hard to set aside, and unity in the company can suffer.
• Collective bargaining can also be costly, both in terms of time and
money.
• Representatives have to discuss everything twice—once at the small
representative meetings, and again when they relay information to
the larger group.
• Paying outside arbitrators or other professionals quickly can run up a
fairly big bill, and when someone else is brought in, things often get
slower and more complex because even more people are involved.
• According to Willcox, it has two vital defects:
• There are situations in which a serious strike and a prolonged strike
(लंबे समय तक हड़ताल की ) simply cannot be tolerated.
• Great flaw in Collective bargaining as a solver of labour dispute is the
lack of representation of the public interest at the bargaining table.
9. CONCLUSION: