Refer Books, Elaborate The Points

COLLECTIVE BARGAINING
A good number of employees are working in different organizations. The problems of the
employees are not uniform in nature. Different employees have different problems in different
organization .The problems may be relating to salary , wages , bonus , medical facility , working
environment , safety and health problems , education facility to their children etc. All these
problems need to be solved with negotiation. Collective bargaining is a process of negotiating
between management and the representative of workers for determining mutually agree terms
and conditions of work which protect the interest of both workers and management.

DEFINITION:-

1) Collective bargaining can be defined as a process of a situation in which the essential condition
of employment can be determined by a bargaining process undertaken by representatives of a
group of workers on one hand and one or more employers on the other.

2) Collective bargaining refers to the negotiations administration and interpretation of a written

agreement between the representatives of the employees and the employers of the management
related to conditions of employment.

FEATURES OF COLLECTIVE BARGAINING

 It is essentially a group action and is initiated by the representatives of workers.

 Flexible process as it provides both the parties a scope for compromise and facilitates a
settlement environment.
 It is a two party process where both strive to arive at an agreement for settling disputes.
 Build a sustainable relationship between the management and trade union with a common
objective of resolving employees grivance and organisational problem.
 It reflacts implementation of industrial democracy.
 Workers are provided with oppertunity for self governance.

IMPORTANCE OF COLLECTIVE BARGAINING:-

 Establish uniform conditions of employment

 secure a prompt and fair redressal of grivances.
 Avoid interruptions in work and increase productivity.
 Promotes Industrial peace.
 Lay down fair rates of compensation and norms of working condition.
 Employees can not be exploited.
 Promotes industrial jurisprudence
 Achieve an efficient operation of organisation.
 Minimise arbitrary action by the management.
 Promote stability and prospority of the industry.
 Provides methods for regulation of the conditions of employment.
 Develope inter personal relationship.

PRINCIPLES OF COLLECTIVE BARGAINING

 The process should provide scope for union leaders to educate the management about the
desire and grivances of employees.
 In contrast it should also provides a scope to the management to explain economic constraints
in not accepting the proposal of union.
 Both union leader and management should approach collective bargaining with a view to find
the best possible solutions.
 Both the parties should have respect for each other and should also have the power to enforce
the term of agreement mutually agreed upon.
 Both the parties should have the spirit to abide by the laws applicable for collective bargaining.

COLLECTIVE BARGAIN PROCESS:-

The bargaining continues through a process which consists certain stages. Generally a
bargain process consists the following steps .
1) PRENEGOTIATION:- This is the primary stage of bargain process. It is the stage for
preparation of bargain. The negotiation process begins from this step. Both the parties
for negotiation i.e the management and the union make preparation for bargaining. The
management people will decide the strength and weakness of the union leaders and
the impact of the bargain to the organization in the future. The union leaders collect
data from other industries and the leaders regarding the negotiations and the
expectations of the employees in the organization.
2) NEGOTIATORS :- In this step the person in charge of negotiation will be decided. It is
one of the important step in bargain process. The negotiator considers to be an
important person from both the parties. The management side negotiator may be the
industrial relation officer , the personal manager the head of the particular department
connected to the negotiation. The negotiation from the union side may be the secretary,
vice-president or the president of the workers union. The negotiators should be
competent persons who can put forth the sentiment of both the parties involved in
bargaining process.
3) NEGOTIATION:- After completion of the first two steps , the third step is come to the
negotiating table. Both the negotiators gather in a mutually convenient time and place
to continue bargain process. Generally the union side put forth the demand of the
employees and the management side took a note of the demand. It is generally a give
and take formula and the negotiation can be termed as fruitful when both the parties
 agree on the conditions and if fail another date and time will be prepared for
negotiation.
4) AGREEMENT:- In this stage a written contract between the two parties consisting of the
terms and conditions of the agreement the date from which it comes into effect, the
duration for which it will remain in operation and the persons who will put their
signature in the agreement. The agreement can be declared as official document after
ratification. Both the management and union leaders should sign the agreement.
5) IMPLEMENTATION:- This is the last step in collective bargaining process. After the
agreement is approved it should be implemented in terms of its letter and spirit by both
the parties. The date of its implementation should be as per the agreement . It is the
responsibility of Human Resource Department to ensure the proper and full
implementation of all provisions in the agreement .

ESSENTIAL CONDITIONS FOR EFEECTIVE COLLECTIVE BARGAIN

 Equal Bargaining Power
 Representable and cooperative trade union
 Mutual confidence
 Proactive and problem solving approach
 Quick disposal
 Positive attitude of the parties to settle
 Mutual respect
 No unfair practices
 Give and gain
 Clarity of implications
 Continuous Dialogue
 Favourable political and social climate

FUNCTIONS OF COLLECTIVE BARGAINING

 Increase Economic Strength
 Establish uniformity in conditions of employment.
 Fair redressal of grievances
 Lay down norms of working condition and fair wages
 Achieve efficient functioning of organisation
 Stimulate the stability and prosperity of the organisation.
 Provides methods of regulation of working condition.
 It provides solution to problems.
 Provides flexibility to adopt changes
 Develop new procedure to cater the need of ever changing environment.
 Works as a vehicle of industrial peace and extend democratic principle.
 Builds up a system of industrial Jurisprudence
CAUSES FOR THE LIMITED SUCCESS OF COLLECTIVE BARGAINING IN INDIA
 Problems with Unions
 Problems from Government
 Legal Problems
 Political interference
 Attitude of Management

SUGGESTIONS FOR THE EFFECTIVE FUNCTIONING OF COLLECTIVE BARGAINING

 Change in attitude of two parties
 Efficient at plant level
 Concentrate on differences
 Rely on facts
 Avoid unfair labour practices
 Written agreement
 Honour the agreement
 Provision of arbitration