Collective Bargaining

Topics to be covered
Collective Bargaining
Evolution Of Collective Bargaining
Types Of Bargaining
Collective Bargaining Process
Collective Bargaining Agreement
Levels At Which Collective Bargaining Is Undertaken
Conditions For Successful Collective Bargaining
Trends In Collective Bargaining
Case Study On Collective Bargaining: The General
Motors United Auto Workers Deal
Perceptions

Collective Bargaining
Collective Bargaining 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.
FLIPPO
Process involving discussions and negotiations

collective group

'bargaining' proposals and counter proposals

to reconcile their conflicting interests

is a flexible approach
Evolution Of Collective Bargaining
Coined by Sydney and Beatrice Webb

Industrial Revolution Great Britain

The Indian Scenario:
Gandhiji - the leader of the Ahmedabad textile workers
Idea gathered interest only after the Second World War
GOI took steps like setting up of machinery for
negotiations, conciliation and arbitration.
Types Of Bargaining

Conjunctive/Distributive
Bargaining - zero-sum game; win
lose


Co-operative Bargaining - more
open to coming down from their
high horses; win win.

Collective Bargaining Process
Prepare

Discuss

Propose

Bargain

Settlement
Collective Bargaining Agreement
Written document regarding working
conditions and terms of employment

Legally, a CBA binds only the parties to
it.

In India, there are three types of
agreements, namely
voluntary agreements,
settlements, and
Consent awards.

procedural agreements or
substantive agreements

Contents of Collective Bargaining
Agreement
The date of commencement of the
agreement

Its duration

A definition of terms

The procedure for settling disputes
regarding interpretation, as well as other
disputes.

The consequences in the event of
breaches of the agreement

As regards wages, exactly how conversion
of employees' wages to the new scales is
to be effected.
Levels At Which Collective Bargaining Is
Undertaken
Enterprise Or Plant Level
Industry-Cum-Region wide Agreements

Sectoral Collective Bargaining At National Level

Conditions For Successful Collective
Bargaining
Trade Union Recognition

Observance of Agreements

Support of Labour Administration
Authorities

Good Faith

Proper Internal Communication

Case Study GM - UAW
PERCEPTIONS ON COLLECTIVE
BARGAINING
CB essentially means negotiations between the labour and
management
CB should just not stop at the negotiations but also go on to be
implemented; otherwise the entire process of CB will be
rendered futile.
It is mostly the formal sector that benefits out of the CB process.
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.
Obviously all the above mentioned conditions are required
successful for CB but the most essential among them is the
good faith
CB agreement is a written format and it is essential
because that acts as a legal framework and as a guide to
their relationships on certain matters for a specified
period of time.
Collective bargaining is not highly practiced in India,
several factors are responsible for this:
Multiple unions
Defective laws
Mediation by political leaders
Organisations understand the importance of human
resources hence they take care of the workers well enough
so that collective bargaining is not highly required. It is
also because most MNCs are setting up their plants in
India, because of which compensation levels have gone up
so also the terms of employment has become favourable in
most parts of the country.
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. Also, if CB is used as a temporary
solution, it would infact create an environment of distrust.