COLLECTIVE BARGAINING

Dr. Aditya Tomer, atomer@amity.edu, 9716864550, 9411903012

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Collective bargaining takes place when representatives of a labour union meet management representatives to determine employees wages and benefits and to solve other issues

Definition of Collective bargaining

Collective bargaining is a process in which the representatives of business organization meet and attempt to negotiate a contract or agreement which specifies the nature of the EmployeeEmployer union relationship -Edwin B.Flippo

Characteristics of collective bargaining

Its a group action as opposed to individual action. It is flexible & mobile and not fixed. It is a two-party process. It is a continuous process. it is dynamic and not static.

It is a democratic function. Collective bargaining is not a competitive process but a complementary process. Its an art, an advanced form of human relations.

Importance of collective bargaining

It helps to increase economic strength of both

parties. It helps to establish uniform conditions of employment. Secure a prompt and fair redressal of grievances. Avoid strikes, & coercive activities.

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Lay down fair rates of wages& norms.

Achieve an efficient operation of the plant.

It ensure old age pension benefits and other

fringe benefits..

Bargaining Topics
WAGES Basic pay rates Over time pay rates Retirement benefits Travel pay Pay incentives HOURS Over time Holidays Vacation Shifts Flex time Parental leave EMPLOYMENT CONDITIONS Job descriptions Layoff Promotions Seniority provisions Work rules Safety rules Grievance procedure

Collective bargaining Process

Negotiation
A. Identification of

Contract Administration

problem B. Preparing for negotiations C. Negotiations of agreement

The union see that the contract had been understood and take steps to implement it.

Conditions for the success of collective bargaining

Strong consultation between the trade union and the

management is possible only when the bargaining power of two parties is relatively equal. Both the parties must accept the principle of free consultation & free enterprise. Must have mutual confidence, good faith& desire to make collective bargaining a success

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The willing acceptance by the management to

recognize representative union for this purpose. Should not await the union raise problems but should make every reasonable effort to prevent them. The process of bargaining should be free from unfair practices.

Limited success of Collective bargaining in India

Problems with Unions II. Problems with government III. Legal problems IV. Political Interference V. Attitude management
I.

Recommendations of the NCL

Government intervention in industrial relations,

particularly in the settlement of industrial disputes should be reduced gradually to the minimum possible extent. Compulsory adjudication of disputes should be used only as a last resort.

Recommendations..
Trade unions should be strengthened both

organizationally and financially by amending the Trade Union ACT of 1926: Make registration of unions compulsory. Enhance the union membership fee. Reduce the presence of outsiders in the union executive & among the office bearers

Recommendations..
Legal provision may be made either by amending an

existing enactment for: Compulsory recognition of trade unions and certification of unions as bargaining agents. Prohibition and penalisation of unfair labour trade practices. Bargaining in good faith by both employers and unions

Approaches to collective bargaining

As a PROCESS OF SOCIAL CHANGE.

As a PEACE TREATY between the conflicting

parties. As a system of INDUSTRIAL JURISPRUDENCE.

Views of Collective bargaining

From the MANAEMENT point of View:

a) To earn higher profits at lower costs

b) Maximum utilization of workers. From LABOUR point of View: Strengthening the Trade union movement

because Trade unions are the bargaining agents of the workers.

VIEWS.
From the GOVERNMENT point of views:

Industrial peace is maintained through collective

bargaining process..

TYPES OF BARGAINING
DISTRIBUTIVE BARGAINING
It deals with issues or

INTEGRATIVE BARAINING
It is a process where

an issue in which two or more parties have conflicting or advisory interests WIN-LOSS

both the parties can win, each contributing something for the benefits of other party. WIN-WIN