Chapter 5- Collective Bargaining

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 Collective Bargaining

 Collective bargaining is voluntary and formal by nature, and involves

of 2 parties negotiating for work, working conditions or terms and
conditions of employment.

 The term ‘collective bargaining’ was first used by the economic

theorist Beatrice Webb in Britain in 1891

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 Characteristics of Collective Bargaining

The underlying objective of collective bargaining is

It is a process. always to resolve the issues between labour and
management through a dialogue.

Negotiations form the basis of collective bargaining. The

It is a bipartite process involving 2 parties. process involves mutual ‘give and take’ between labour
and management through discussions

Cooperation and understanding between management

It is a collective activity. and labour are the basic requirements for the success of
collective bargaining.

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 Importance Of Collective Bargaining

For Employers For Workers For Industry For Nation

Wages in the organized sector in India are decided mostly by collective bargaining.

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 Importance Of Collective Bargaining

For Employers

A chance to
A means to Belief in A means to A mechanism to
understand
resolve issues participative increase improve public
workers’
peacefully management productivity image
perspective

The type of bargaining in which the

workers’ demands are agreed upon in
return for increase in efficiency on their
part is called productivity bargaining.

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 Importance Of Collective Bargaining

For Workers

Strengthening the
Unity/ Solidarity position of trade Improved quality
Equal status Improved facilities
among workers unions as of work-life
bargaining agents

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 Importance Of Collective Bargaining

For Industry

Facilitation of Continuous
Means to industrial
modernisation and production and
peace
restructuring profits

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 Importance Of Collective Bargaining

For Nation

Establishment of
Strengthening of the
Increase of productivity democracy in industrial
economy
relations system

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 Practice Questions

1) The term ‘ Collective Bargaining’ was first used by____________

1. Webb
2. Hoxie
3. Colie
4. Thomson

Ans: Option 1

2) Collective bargaining is a process of mutual settlement involving _____ parties.

1. 2
2. 3
3. 4
4. 5

Ans: Option 1

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THANK YOU

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