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COLLECTIVE BARGAINING

Compiled By:Santosh Ashok V Sem BBM 09SKC18016

Definition
According to Dale Yoder, Collective bargaining is defined as essentially a process in which employees act as a group in seeking to shape conditions and relationships in their employment.

Characteristics
It is a two party process. It is a continuous process. It is dynamic and not static in nature. It is industrial democracy at work. It is flexible and mobile and not fixed. It is essentially a complementary process. The main actors in the process of collective bargaining are employees , employers and their associations. It is a group action as opposed to individual action and is initiated through the representatives of workers. It is an art, an advanced form of human relations.

Pre-requisites
There must be a change in attitude of employees and employers. It is best conducted at plant level. The employers and employees should enter upon negotiations on points of difference or on demands with a view to reach an agreement. Unfair labour practices should be avoided and abondoned by both sides. Negotiations can be successful only when the parties rely on facts and figures to support their points of view. The terms of the agreement should be clearly and precisely written down in detail. The agreement that is reached between the parties must be honoured and fairly implemented.

Approaches
As a process of social change. As a peace treaty between the conflicting parties. As a system of industrial jurisprudence.

Process
Preparing for negotiations. Identifying bargaining issues. Negotiation. Reaching the agreement. Ratifying the agreement. Administration of the agreement.

Principles of collective bargaining for trade union


Trade union should eliminate racketeering and other types of undemocratic practices within their own organisation. Trade unions should not limit themselves to higher wages, shorter hours of work, better working conditions , etc. Trade union should be realistic to their demands, especially the economic implications of their demand. Trade union leaders work for the welfare of the employees, follow ethical practices, assist the management to reduce costs and prices. Trade unions should use strike as a method of last resort. Trade unions should cultivate discipline among their members and inculcate a sense of devotion, duty and sincerity among their employees towards their work and company.

Principles of collective bargaining for management


Management must develop and consistently follow a realistic policy which should be uniformly accepted and implemented by all its officers. Management should not wait for the trade union to bring employees grievances. Management must critically assesses its rules and regulations and must amend it. Management must grant recognitions to the union without any reservations and accept it as a constructive force. The management should deal with only one trade union in the organisation. Management should place greater emphasis on social consideration while weighing the economic consequences. Management must have a positive mindset and must not consider union to be its rival.

Essential conditions for the success of collective bargaining


Freedom of association. A favourable political condition or climate. Stability of workers organisation. Recognition to trade unions. Feeling of mutual benefits among the parties. Fair play and practices.

Importance of collective bargaining


It helps increase in economic strength of both the parties at the same time protecting their interests. It helps in establishing uniform conditions of employment with a view to avoid occurrence of industrial disputes. It helps in resolving disputes when they occur. It lays down rules and norms for dealing with labour. It helps usher in democratic principles into the industrial world.

Conciliation
It is a process by which representatives of both workers and employers are brought together before a third party with a view to persaude them to arrive at a sort of settlement. It is an extension of collective bargaining.

Qualities of a conciliator
A conciliator should be physically and psychologically fit for his task. He/she must have strong and deeply held conviction for the importance and usefulness of conciliation and the person must like or learn to like the work. A conciliator should have a friendly personality, good sense of humour, specially for relieving tensions of joint discussions.

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