What is

What is
Collective
Collective
Bargaining?
Bargaining?
 Definition
• Collective bargaining is a type of negotiation used by employees to
work with their employers.
• During a collective bargaining period, workers' representatives
approach the employer and attempt to negotiate a contract which
both sides can agree with.
• Typical issues covered in a labor contract are hours, wages,
benefits, working conditions, and the rules of the workplace.
• Once both sides have reached a contract that they find agreeable,
it is signed and kept in place for a set period of time, most
commonly three years.
• The final contract is called a collective
bargaining agreement, to reflect the fact
that it is the result of a collective
bargaining effort.
• The parties often refer to the result of
negotiation as a Collective Bargaining
Agreement (CBA) / as a Collective
Employment Agreement (CEA).
 Features:
Features:
Itisisaacollective
It collectiveprocess.
process.
Therepresentatives
The representativesof ofboth
bothworkers
workersand
and
managementparticipate
management participateininbargaining.
bargaining.
II.It
II. Itisisaacontinuous
continuousprocess.
process.It Itestablishes
establishes
regularand
regular andstable
stablerelationship
relationshipbetween
betweenthethe
partiesinvolved.
parties involved.It Itinvolves
involvesnot
notonly
onlythe
the
negotiationof
negotiation ofthe
thecontract,
contract,butbutalso
alsothe
the
administrationof
administration ofthe
thecontract.
contract.
III.It
III. Itisisaaflexible
flexibleand
anddynamic
dynamicprocess.
process.The
The
partieshave
parties haveto toadopt
adoptaaflexible
flexibleattitude
attitude
throughthe
through theprocess
processof ofbargaining.
bargaining.
IV.It
IV. Itisisaamethod
methodof ofpartnership
partnershipof ofworkers
workersinin
management
management
 Importanceto
Importance tosociety
society
Collectivebargaining
Collective bargainingleads
leadsto toindustrial
industrial
peaceininthe
peace thecountry.
country.
Itresults
It resultsininestablishment
establishmentof ofaa
harmoniousindustrial
harmonious industrialclimate
climatewhich
which
supports,which
supports, whichhelps
helpsthethepace
paceof
ofaa
nation’sefforts
nation’s effortstowards
towardseconomic
economicandand
socialdevelopment
social developmentsince sincethe
the
obstaclesto
obstacles tosuch
suchaadevelopment
developmentcan can
bereduced
be reducedconsiderably.
considerably.
Thediscrimination
The discriminationandandexploitation
exploitationofof
workersisisconstantly
workers constantlybeing
beingchecked.
checked.
Itprovides
It providesaamethod
methodor orthe
theregulation
regulation
ofthe
of theconditions
conditionsof ofemployment
employmentof of
thosewho
those whoarearedirectly
directlyconcerned
concerned
aboutthem.
about them.
 Importance to
Importance to employers
employers
Itbecomes
It becomeseasier
easierforforthethemanagement
managementto toresolve
resolve
issuesat
issues atthe
thebargaining
bargaininglevel levelrather
ratherthan
thantaking
taking
upcomplaints
up complaintsof ofindividual
individualworkers.
workers.
Collectivebargaining
Collective bargainingtendstendsto topromote
promoteaasensesenseofof
jobsecurity
job securityamong
amongemployees
employeesand andthereby
therebytends
tends
toreduce
to reducethethecost
costof oflabor
laborturnover
turnoverto to
management.
management.
Collectivebargaining
Collective bargainingopens opensup upthe
thechannel
channelof of
communicationbetween
communication betweenthe theworkers
workersand andthe
the
managementand
management andincreases
increasesworkerworkerparticipation
participation
inindecision
decisionmaking.
making.
Collectivebargaining
Collective bargainingplaysplaysaavital
vitalrole
roleininsettling
settling
andpreventing
and preventingindustrial
industrialdisputes.
disputes.
 Importance to
Importance to employees
employees
Collective bargaining
Collective bargaining develops
develops aa sense
sense of of self
self respect
respect Impass
and responsibility
and responsibility among
among the the employees.
employees.
It increases
It increases the the strength
strength ofof the
the workforce,
workforce, thereby,
thereby, e
increasing their
increasing their bargaining
bargaining capacity
capacity as as aa group.
group.
Collective bargaining
Collective bargaining increases
increases the the morale
morale andand
productivity of
productivity of employees.
employees.
It restricts
It restricts management’s
management’s freedom
freedom for for arbitrary
arbitrary
action against
action against the
the employees..
employees..
The workers
The workers feelfeel motivated
motivated as as they
they can
can approach
approach thethe
management on
management on various
various matters
matters and and bargain
bargain for
for
higher benefits.
higher benefits.
It helps
It helps inin securing
securing aa prompt
prompt andand fair
fair settlement
settlement of of
grievances.
grievances.
It provides
It provides aa flexible
flexible means
means forfor the
the adjustment
adjustment of of
wages and
wages and employment
employment conditions
conditions to to economic
economic andand
technological changes
technological changes inin the
the industry,
industry, as as aa result
result
of which
of which thethe chances
chances for
for conflicts
conflicts areare reduced.
reduced.
 Collective Bargaining
Process
• In many companies, agreements have a fixed
time scale and a collective bargaining process
will review the procedural agreement when
negotiations take place on pay and conditions
of employment.
 (1) Prepare
• This phase involves composition of a negotiation team.
• The negotiation team should consist of representatives
of both the parties with adequate knowledge and skills
for negotiation.
• In this phase both the employer’s representatives and
the union examine their own situation in order to
develop the issues that they believe will be most
important.
• A correct understanding of the main
issues to be covered and intimate
knowledge of operations, working
conditions production norms and
other relevant conditions is
required.
 (2) Discuss
• The parties decide the
ground rules that will guide
the negotiations.
• An environment of mutual
trust and understanding is
also created so that the
collective bargaining
agreement would be
reached.
 (3) Propose
• It involves the initial opening
statements and the possible options
that exist to resolve them. In a word,
this phase could be described as
‘brainstorming’. The exchange of
messages takes place and opinion of
both the parties is sought.
 (4) Bargain
• Negotiations are easy if a problem
solving attitude is adopted.
• This stage comprises the time when
‘what ifs’ and ‘supposals’ are set forth
and the drafting of agreements take
place.
 (5)Settlement
• Once the parties are through with the
bargaining process, a consensual
agreement is reached upon wherein both
the parties agree to a common decision
regarding the problem or the issue.
• This stage is described as consisting of
effective joint implementation of the
agreement through shared visions,
strategic planning and negotiated
change.
Levels of collective
bargaining
 Economy-wide (national)
• Bargaining is a bipartite or
tripartite form of negotiation
between union confederations,
central employer associations
and government agencies.
• It aims at providing a floor
for lower-level bargaining on
the terms of employment,
often taking into account
macroeconomic goals.
 (b) Sectoral bargaining:
• It aims at the standardization of the terms of
employment in one industry, includes a range of
bargaining patterns.
• Bargaining may be either broadly or narrowly defined
in terms of the industrial activities covered and may
be either split up according to territorial subunits or
conducted nationally.

• (c) Enterprise Level:

• It involves the company and/or
establishment.
• It emphasizes the point that bargaining
levels need not be mutually exclusive.
 Problems of
Problems of Collective
Collective Bargaining
Bargaining
I.I. Dueto
Due tothe
thedominance
dominanceof ofoutsiders
outsidersinintrade
tradeunionism
unionisminin
thecountry,
the country,there
thereisismultiplicity
multiplicityofofunions
unionswhich
whichareare
weakand
weak andunstable,
unstable,andanddodonot
notrepresent
representmajority
majorityof of
theemployees.
the employees.Moreover,
Moreover,therethereareareinter-union
inter-union
rivalries,which
rivalries, whichfurther
furtherhinder
hinderthetheprocess
processof of
collectivebargaining
collective bargainingbetween
betweenthe thelabor
laborand
andthe
the
management.
management.
II. Trade
II. Tradeunions
unionsare
arehaving
havingpolitical
politicalaffiliations,
affiliations,they
they
continueto
continue tobe
bedominated
dominatedby bypoliticians,
politicians,whowhouse
usethethe
unionsand
unions andtheir
theirmembers
membersto tomeet
meettheir
theirpolitical
politicalends.
ends.
III. There
III. Thereisisaalack
lackofofdefinite
definiteprocedure
procedureto todetermine
determine
whichunion
which unionisisto
tobe
berecognized
recognizedto toserve
serveas asaa
bargainingagent
bargaining agentononbehalf
behalfofofthe
theworkers
workers
IV. There
IV. Therehashasbeen
beenvery
veryclose
closeassociation
associationbetween
betweenthe the
tradeunions
trade unionsand
andpolitical
politicalparties.
parties.AsAsaaresult,
result,trade
trade
unionmovement
union movementhas hasleaned
leanedtowards
towardspolitical
political
orientationsrather
orientations ratherthan
thancollective
collectivebargaining.
bargaining.