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Collective Bargaining

Collective Bargaining

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Published by Durga Prasad Dash

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Published by: Durga Prasad Dash on Aug 21, 2009
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01/26/2014

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COLLECTIVE BARGAINING 
Introduction and Meaning of Collective Bargaining
Good relations between the employer and employees are essentialfor the success of an industry.In order to maintain good industrialrelations, it is necessary that industrial disputes are settled quicklyand amicably.One of the efficient means of resolving industrialdisputes and deciding the employment conditions is CollectiveBargaining.
(C.B.)
C.B. is a process in which the representatives of the employer andof the employees meet and attempt to negotiate a contractgoverning the employer-employee union relationship.C.B. involves discussion and negotiation between two groups as tothe terms and conditions of employment.It is called
‘collective ’
 because both the employer and theemployee act as a group rather than as individuals.It is known as
‘bargaining’
 because the method of reaching anagreement involves proposals and counter proposals, offers andcounter offers.C.B. is a rational process which appeals to facts and to logic,reconciles conflicting interests in the light of comman interests of  both parties.It is a bipartite and dynamic process.C.B.plays a significant role in improving labour- managementrelations and in ensuring industrial harmony.The negotiations for C.B. require joint sessions of the representatives of labour andmanagement.These help a lot in promoting a better understandingof each other’s point of view as well as the problems confronting
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them.Through discussions and interactions, each party learns moreabout the other, and misunderstandings are often removed.
Origin
The phrase C.B.is said to have been coined by Sydney andBeatrice Webb of Great Britain which is said to be the ‘home of collective bargaining’.The idea of C.B. emerged as a result of industrial conflict and the growth of the trade union movement.In India, the first collective bargaining agreement was concluded in1920 at the instance of Mahatma Gandhi to regulate labour-management relations between a group of employers and their workers in the textile industry in Ahmedabad.Therefore, C.B. is a process of negotiation by collective action bya body of workers regarding their terms and conditions of servicesuch as wage leave, norms of employment, gratuity, bonus andother benefits.The objective is to harmonise labour relations and to promoteindustrial peace.
Definition of Collective Bargaining
What is Collective Bargaining?There are two parties ------- workers and employer in an industrialestablishment. Both have conflicting interests. Workers alwaysdesire higher wages for the service rendered and also better working conditions at the work-place. On the other hand, employer expects higher and higher productivity in return of the wages paid.There are always some differences between the two groups onvariety of matters. These differences/ disputes need settlement to
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harmonise the industrial relations in the organization.Throughcollective bargaining, differences/ disputes are resolved on anegotiating table.The term collective bargaining has been defined as under :According to
Dale Yoder
, “ Collective Bargaining is the term usedto describe a situation in which the essential conditions of employment are determined by a bargaining process undertaken byrepresentatives of a group of workers on the one hand and one or more employers on the other hand.’’In the words of 
Edwin B.Flippo
, “C.B. is a process in which therepresentatives of 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
John T. Dunlop
, the term collective bargainingdescribes multiple meanings :“C.B. is
(i)
a system which establishes, revises and administersmany of rules which govern the workers’ place of work ;
(ii)
a procedure which determines the quantum of compensation which employees should receive and whichinfluences the distribution of economic benefits ; 
(iii)
a method of settling disputes and of determining, after its expiry, whether a dispute should be reopened or whether a strikeor a lock-out should be resorted to or not.”According to
Michael J. Jucius
, “ C.B. refers to a process bywhich employers on the one hand and representatives of employees on the other, attempt to arrive at agreements coveringthe conditions under which employees will contribute and becompensated for their services.”
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