Collective Bargaining in Human Resource Management

3/11/2020 Collective Bargaining in Human Resource Management
inexplicable fashion which may

characterise a bargaining session.
In the words of Davey- “Collective

bargaining is a complex process. It
involves psychology, politics and power of
the work group. It is a process of tough-
minded calculus and horse-trading. It is
also a collective manifestation of
individual and group drives for status and
power. It frequently involves a contest
between sovereign institutional entities
whose survival requirements are, in some
instances, related and, in other instances,
independent of, or in conflict with, one
another.”
4. Importance of Collective
Bargaining:
The evolution of mature labour relations

characterised by a greater degree of order
and stability and sound wage structure
are almost invariably associated with
some measurable aspects of collective
bargaining. On the basis of the experience
of advanced countries, where collective
bargaining is said to have made
considerable advances, we identify some
indicators of mature collective bargaining
practices.
These indicators are:

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1. A high degree at collective bargaining as

measured in terms of the proportion of
workers covered by collective agreements;
2. Qualitative conduct of the parties to

collective bargaining both before a
situation warranting negotiations
develops and the methods followed at the
time of arriving at agreements;
3. The right priorities assigned to

different methods in the agreements and
their changing pattern over time; and
4. A structure of bargaining with

emphasis on central bargaining which is
purported to give some order and stability
to labour-management relations.
The necessity of collective bargaining is

most deeply felt when serious problems
have to be solved at the level of an
undertaking or of an industry. For this
purpose, managements and workers’
organisations have to get together. The
labour legislation and enforcement
machinery can only provide the setting in
which an industry may function; the
solution of common problems can only
come from the parties which are directly
concerned with them.
In this context, “collective agreements

provide a climate for smooth progress.
The agreement spells out the working

relationship between employers’ and
workers’ organisations in which a
synthesis between the demands from one
side and concessions from the other can
be given a practical shape.”
(a) The Trade Union’s Point of

View:
From the trade union’s point of view,

collective bargaining agreements ensure
that managements do not take any
unilateral action. This is achieved by
seeing to it that an employer signs a
contract which specifies the conditions of
employment during a particular period of
time, and which establishes the procedure
for the handling of issues and disputes
which arise during that period.
In other words, collective bargaining is an

employer regulating device, a method of
guaranteeing the rights and immunities of
the workers by limiting the employer’s
freedom of action. With the application of
collective bargaining agreements, the
status of individual workers is improved,
not only in terms of their wage, but also in
such non-monetary aspects of their
employment as better working conditions
and greater job security.
A collective bargaining agreement

develops a sense of responsibility and of
self- respect among the workers, and is a
guarantee against wage cuts. Through
collective bargaining, unions attempt to
secure a wide variety of economic and
non-economic goals. The economic goals
include wages, and fringe benefits.
The non-economic goals centre around

hours of work, the working conditions,
workers’ satisfaction with his job and the
protection of the union as a growing
institution.
Within the union, there are many actual

and potential areas of conflict between
different interest groups. The choice of
giving priority to the objectives is a
difficult task. The important factors in
determining which goals to be given
priority are- economic conditions
affecting the industry, the precedents set
by recent agreements, rivalry between
unions and union leaders and the
dominant groups within the union. The
major bargaining tactics are strikes,
boycotts and picketing.
(b) The Management’s Point of

View:
On the other hand, the management’s

collective bargaining goals are- the
control of the enterprise, maintaining its

ability to manage with a high degree of
flexibility and efficiency of operation. The
factors determining management’s
approach to collective bargaining are: its
views on the economic outlook,
conditioned by the size of inventory on
hand, precedents set by recent
agreements, cost structure of the firm and
competitive conditions in the industry.
The bargaining techniques of

management consist of its control of
hiring, promotion, discharge, lay-off and
personnel techniques consisting of
incentive wage systems, special benefits
provided voluntarily by the employer, and
a human relation approach to the
employees.
To sum up, collective bargaining

enables both the parties to:
i. Increase their economic strength for

mutual benefit;
ii. Establish uniform conditions of

employment with a view to avoid
industrial disputes and maintaining stable
peace in the industry;
iii. Secure a prompt and fair redressal of

grievances;
iv. Avoid interruptions in work which

follow strikes, go-slow tactics and similar
coercive activities;
v. Lay down fair rates of wages and norms

of working conditions;
vi. Achieve an efficient operation of the

plant; and
vii. Promote the stability and prosperity of

the industry.
In fact a collective bargaining agreement

brings both labour and management
together to determine the conditions of
employment which, till then, had been
decided exclusively by an outside agency
like Industrial Tribunal, and paves the
way for the closing of the psychological
and emotional gap which divides labour
and management.
5. Collective Bargaining- Principles:
Arnold F. Campo has laid down certain

essential general principles of collective
bargaining.
These are:
1. For Union and Management:

Collective Bargaining in Human Resource Management

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3/11/2020 Collective Bargaining in Human Resource Management

inexplicable fashion which may

In the words of Davey- “Collective

The evolution of mature labour relations

These indicators are:

1. A high degree at collective bargaining as

2. Qualitative conduct of the parties to

3. The right priorities assigned to

4. A structure of bargaining with

The necessity of collective bargaining is

In this context, “collective agreements

The agreement spells out the working

(a) The Trade Union’s Point of

From the trade union’s point of view,

In other words, collective bargaining is an

A collective bargaining agreement

The non-economic goals centre around

Within the union, there are many actual

(b) The Management’s Point of

On the other hand, the management’s

control of the enterprise, maintaining its

The bargaining techniques of

To sum up, collective bargaining

i. Increase their economic strength for

ii. Establish uniform conditions of

iii. Secure a prompt and fair redressal of

iv. Avoid interruptions in work which

v. Lay down fair rates of wages and norms

vi. Achieve an efficient operation of the

vii. Promote the stability and prosperity of

In fact a collective bargaining agreement

5. Collective Bargaining- Principles:

Arnold F. Campo has laid down certain

1. For Union and Management:

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