CHAPTER 10

Collective Bargaining 1
Nature-Scope-Types & Functions
 Meaning & Definition
Collective Bargaining is a process of negotiating between management
and workers represented by their representatives for determining mutually
agreed terms and conditions of work which protect the interest of both
management and workers.
Collective Bargaining is a technique adopted by the organisations of
workers and employers to solve their differences with or without the assistance
of a third party.
“ Collective Bargaining is a process in which the representatives of
labour organisations and the representatives of business organisation meet and
attempt to negotiate a contract or agreement which specifies the nature of
employee-employer-union relationship”- Edwin B Flippo
 Features of Collective Bargaining
• Collective bargaining is a group action : The representatives of the employers
and the employees sit together at negotiating table and try to reach an
agreement acceptable to both parties.
• Collective bargaining has become an art : It is highly sensitive, tactful and
organised efforts from both sides to solve all types of problems and issues.
• Collective bargaining is a complementary and not a competitive process : Labor
and management do not feel jealous of each other rather they play the role of
complementary to each other.
• It is a continuous process : When one issue is settled, negotiations start for
another issue and it keeps on going for all 365 days of the year.
• It is a logical process :First of all the Union presents their charter of demand
then negotiation takes place and finally there reaching of an agreem or a
contract which would become the employment terms and conditions.
• Its is a practical way of establishing industrial democracy at work
• Its is a bipartite(two party) process of employer and employee
Features of Collective Bargaining as per
Exeardz T.Cheyfitz
• Collective process of representatives
• Flexible and dynamic process
• It is continuous process
• Bipartite process
• Practical way to establish Industrial democracy
• Good method of promoting Industrial jurisprudence
• Inter disciplinary system
• Includes efforts from preliminary preparation to the
presentation of conflicting views.
 Scope of collective bargaining
Mainly two types of issues can be
included in CB :-
• Economic provisions
• Political provisions
Types of issues also includes:-
• a)Allowances & leave rules
• b)Wage & salary structures
• Overtime & shift wage rates
• Lay-off & Retrenchment of workers
• Demotion,promotion & transfer
• Grievance procedures
• Safety & Health facilities
• WPM
• Schemes of bonus,profit sharing &
co-partnership
• Labour welfare schemes
• Schemes of social security
• Medical & compensation schemes
• System of performance appraisal
• Maintaining of discipline & how to
take disciplinary action
• Provision of retirement benefits such
as pension,gratuity and provident
fund
DIFFERENT ASPECTS OF COLLECTIVE BARGAINING.
1.Parties to Collective bargaining.
2.Subject-matter of Collective bargaining.
3.Objectives of Collective bargaining.
4.Duration of Collective bargaining.

1.Parties to Collective bargaining:

It involves two parties-management or employers association or federation of
employers on one hand and workers represented by trade union or workers
federation on the other hand.
2. Subject-matter of collective bargaining:
a)Setting out standards of employment- It includes determination of
wages,fixing working hours,termination of contract etc.
b)Regulating the relations-Items like methods of settling of industrial
disputes,duration of agreement,procedure of negotiation etc are included
 3.Objectives of collective bargaining
❏ Enter into an agreement between management and union
❏ Maintain cordial relation between management and workers
❏ Ensure the participation of trade union in industry
❏ Settle disputes relating to wages and working conditions
❏ Avoid the need of government interference
❏ Resolve the issues through voluntary negotiation
❏ Introduce effective grievance handling machinery

4. Duration and issues involved in collective bargaining

It refers to the time period of collective bargaining agreement,management
prefers to have agreements of longer periods but unions like to have agreemnts of short
duration.
 Types of Collective
Bargaining
1. Distributive Bargaining-
- Economic issues like
wages,salaries,bonus are discussed,one
parties gain is another parties loss
2. Attitudinal Bargaining-
- Its to change the thinking,approach and
attitude of both the parties
3. Integrative Bargaining-
-Under this both parties are being
benefited.Gain of one party may not
lead to loss of other
4. Intra-organisational Bargaining
-Under this both the parties prefix
their own strategy for negotiation
Collective Bargaining in India
1)Agreement which are negotiated by
officers during conciliation
2)Agreement negotiated by parties (labor
& management) voluntarily
3)Agreements negotiated by parties
voluntarily & submitted to
tribunal/court/labour arbitrator
4) Agreement concluded by parties
themselves without referring to board of
conciliation
 Functions of Collective Bargaining
1. Establishes uniform conditions of employment.
2. Promotes the stability & prosperity of the enterprise
3. Increases the economic strength of the Employees & the management.
4. Lays down fair rates of wages & other amenities for the workers.
5. Secures a prompt & fair redressal of grievance
6. Avoids interruption in work
7. Provides a solution to the problems of sickness in the industry.
8. Provides new methods for the regulations of the conditions of
employment
9. Ensures that management is to be conducted by rules
10. Provides flexible means of adjustment.
 Functions of Collective Bargaining
According to Arthur D. Butler, collective bargaining performs three important
functions
(i) As a process of social change
collective bargaining is not confined only to the economic relations between employers and
employees; rather it is a technique of long run social change, bringing about rearrangements
in the power hierarchy of competing groups

(ii) As a process of Peace treaty between two parties in continual conflict

Collective bargaining is a sort of peace treaty between two parties in continual conflict. This
conflict is smoothened by the compromises. Compromise represents a state to which each
side is prepared to descend from the original stand (with neither party fully satisfied).

(iii) As a system of Industrial Jurisprudence

It is a method of introducing civil rights into industry, that is, of requiring that management
be conducted by rules rather than arbitrary decisions. It establishes rules which define and
restrict the traditional authority exercised by employers over their employees placing a part
of authority under the joint control of union and management.