conditions of employment of workmen are Collective bargaining is that arrangement whereby, the wa, components of remuneration ellie even the employer and their union or by some of them on behalf oft! between an employer or group of employes Poem eeepe Bagning Gees | jn the bargaining process, the main actors are employees, i se ‘employers and their associations ‘he object of collective bargaining i€ rule-making ie, rea sie rules pertaining to employment relat ae i» reaching an agreement by specifying in focus of th Tbe Meu ese rules iS on the\terms and conditions of employment? collective bargaining is a{ “civitis. or bipartite _confrontation”) bi a artite_con etween the we ih a View ©-aving at an agreement forte eee a ts eee, 28 jris both a device and a procedure used by wage-earners to safe ‘an institution or instrument of an industrial organisation for discuss between the two patties. cd their interests; it is, sion and negotiations It is, moreover, a technique by which an_attempt is made to reconcile the needs and objectives of workers and employers and is, therefore, an integral part of an industrial society. The essence of collective bargaining lies in the readiness of the two parties to a dispute to reach an agreement or mutually satisfying settlement. It is concerned at of the people involved in it as well as with the logic of their interests. ‘Te concept of collective bargaining is the offshoot of Trade Union activity. It is a historical ‘ut that before the advent of collective bargaining era in the labour market, labour was at a great disadvantage in obtaining reasonable terms of contract of service from his employer. With the vergence of Unions in the country, the collective bargaining became a rule and the employer found revesary and convenient to deal with the representatives of workers, instead individual workmen, toaly for the making or modification of the contracts but also in taking disciplinary actions against ee of more workmen. The earlier history of collective bargaining shows that it was met with gps from employers due to the fear of encroachment upon prerogative of management and the emuneration and ‘bility of management to hear the long-range costs, But with the growth of Unionism and ployer and the |) siousness of the work class, the trade agreements on collective basis have become a rule rather on behalf of all Mf & exception f employers and Z : bargaining is @ Main’ re sple to reach an Nye o be negotiation Randle observes: “A tree is known by its fruit. Collective bargaining may best be known by ployers. ‘turcteristics.”! The main characteristics of collective bargaining are: n by a body of — (itis a group action as opposed to individual action and is initiated through the represen ot emplenmet, WP nso waren. On the manage ide ae delegates at he baraning able: on he i of monise labout workers is theit trade union, which may Tepresent the local plant, the industry membership or walaeeee IS somentip ip. wy ne ic, It has fluidity and ample scope fora Peni core ne i fees js reached or the final settlement “atived at, Bakke and Kerr observe: “Essentially, a successful collective bargaining is an exsrise "ceful retreat—retreat without seeming to retreat. The p 2 ginal peste ‘eb to eadsition, Before retreating : dng wit eee: tha ible. This : it ‘Reng repo ies aieosing one's vn ultimate concession In this sens, al negotiations oloratory until the agreement is consummated." #Dynamics of Industri ate, ‘iis a two-party process. Itis 4 smitual give ther than a take-it-or-leave-it ‘v0-party P { mutual giv and-ake)at oi Ae Fi fe re involved in it. In this connectic i eis toe meat ofa dispute. As two partes are invO) ion, aoa es: «Collective bargaining can work only with He ‘acceptance by labour and man; Cla err s: “Collective labour and a rat esponsilies. 1tcan succeed only when both labour and management vey to succeed" in a mechanism for continuing and organised relay ~ 7 Is conta proces. roves 8 Mee Te Senne the ae plant problems.” It does not end with negotiation and ends wit iting of a contract. Actually, it is oq, ‘on Tot 365 days of the year... The most important pay from day to day under the rules establishy but a Glen Garin pus ee ginning of collective barga or eitetve bargaining i the bargaining that goes on bees ee atively new concept, and 4) It is dynamic and not static. Because it is a relatively n and is growing {scientifc, factual_and systematic. Its coverage and style have changed. In this connect TM. Clark observes: “Collective bargaining has become, with surprising swiftness, one of the grates, Forces in our society. In anything like its present scale and power, it is a new thing. It is a proces ‘which transforms pleading into negotiation, ... which permits employees” dignity as they participate in the formulation of their terms and conditions of employment...which embraces the democratic ide. and applies it comectly and effectively at the place of work.”* (vi Its industrial democracy at work. Industrial democracy is the government of labour with the consent of the governed—the workers. The principle of arbitrary unilateralism has given way o that of self-government in industry. Collective bargaining is not a mere signing of an granting seniority, vacations and wage inereases. It is not a mere sitting around a table, discussing srievances. Basically, itis democrat Ste Joint formulation of company policy on all matters wich directly affect the workers in a plant. It is self-government in action, It is the projection of a « management policy which gives the workers the right to be heard. It is the establishment of factor Taw based on common interes a Gil) Collective bargaining is not a competitive process but is essentially a complementay process. Each party needs something that the other party has, namely, labour can make a greatet Productive effort and management has the capacity to pay for that effort and to organise and guide it Tor achieving its objectives; The behavioural scientists have made a distinction between “distributive bargaining” and Ciniegrative bargaining” The former, is the process of dividing the ‘cake” which Joint efforts of management and labour. In this process, if oss arty, t0 continue the metaphor of the cake, has a relatively smulle distributive bargaining deals = ve interests. Integrative both parties can win, each contributing noe Psst dives common fops common objectives, bette ier les, a better respect fo other, anid a great Shetek oo of human relations. To substantiate this, one need oa) (iil) It is an art, an advanced fo witness the bluffing, the oratory dramatien, ations ise a bargaining seston ns” 204 COVMESS mixed in an inexplicable fashion which 181nts Sea als variably ase 8 a ec indicators are: (a) a high degree at collective bargaining covered by collective agreements; pattern over time; and maintaining stable peace in the industry; (iv) Avoid interruptions in work which follow activities; (0. Achieve an efficient operation of the plant; (vii) Promote the stability and prosperity of the ‘n the power hierarchy of competing groups. It is, in ions characterised by a greater depree of order (n the bass ofthe experience of advanced countries, ae comsiaerble adVANES, We identify some indicators (6) qualitative conduct of the parties to collective ba negotiations develops and the methods followe (@) the right priorities assigned to different methods in the agreements and their chan b and stability iated with some measurable aspects of collective ‘where collective bargaining is said to have of mature collective bargaining practices. 8 measured in terms of the proportion of workers gaining both before a situation warranting dat the time of arriving at agreements; (@ « structure of bargaining with emphasis on central bargaining which is purported to give some order and stability to labour-management relations. ‘To sum up collective bargaining enables both the parties to: (i) Increase their economic strength for mutual benefit; (i Establish uniform conditions of employment with a view to avoid industrial disputes and (ii) Secure a prompt and fair redressal of grievances; strikes, go-slow tactics and similar coercive (») Lay down fair rates of wages and norms of working conditions; and industry. tof ol i ED EL Collective bargaining is a technique of long-run social change, bringing about rearrangements its broader aspects, not confined solely to the ‘:onomic relations between employers and employees. Perlman says: “It is a technique whereby, an i in the social ‘efi social class or group exerts a never-slackening pressure for a bigger share in i ‘Sovereignty as well as more welfare, security and liberty for individual members. Collective bargaining oa i ing soci and nother areas of decision-making, Collective bargaining adapts itself to the changing social, legal ‘onomic environment. It is a source of stability in & ‘hanced their social and economic position—in absol changing environment, The wage-earners have Jute terms and in relation to other groups—and the same time, the has retained a large measure of power and dignity. These grinsCollective bargaining freates a sytem of ‘indus rsmenc Dynaics of Intel ay, (2) Peace Treaty Coleive bargaining isa srt of peace treaty between two partie i conaual contig However te setement between the vo partis is compromise, The extent 10 which each aie Wiling t accept less than its original bargaining demands depends, in part Cong it ise Sours cpponen, "The ompromise i a temporary truce with neither sie being completly sate, ‘Tah thereat Each woul ike to modify it atthe earliest opportunity. Since the contract is alg Seay of short duration, each begins immediately to prepare a new list of demands, ink a ee any desuodh and Yo bull up Hs taresing strength i ancpation of the peg rower sknmish” But ina majority of cases, collective bargaining agreements are signed bei ite ‘opponent fires a shot. (3) Industrial Jurisprudence Collective bargaining creates a system of “industrial jurisprudence.” It is “a method of introducing civil rights into industry, that is, of requiring that management be conducted by rule rather than by arbitrary decisions.” It establishes rules which define and restrict the traditioral authority exereised by employers over their employees, placing a part of the authority under the joie control of union end management. — It is a rule-making or legislative process, in the sense that it formulates the terms and under which labour and management will cooperate and work together over a certain stated period. condition — Itis an executive process, for both management (foremen and supervisory officials) and trade union officials share the responsibility of enforcing the rules. — It is a judicial process, for in every collective agreement, there is a clause/provsion Tegarding the interpretation of the agreement. Through the grievance procedure, lifference dispute concerning the application of the agreement to particular cases is seed ‘Where the agreement does not specifically cover the dispute, it may be settled according to the unwritten shop practices. The decisions in these cases act as precedents in a managet similar to the common laws and interpretation of legislation by the court, Generally the objectives and basic phos ‘agreement itself. In this context, for instance, phy of collective bargaining are well expressed inte the Article 1 of the Indian Aluminium Agreement, radsrvisory officials) and is a clause/provision ince procedure, any cular cases is settled. be settled according sedents in a manager well expressed in the im Agreement, reads relations, to secure king conditions, # to prevent strikes ant, and to promote pooaina ay Union and Management: |, colletive bargaining should be made jp collet ‘an educational as well as a bargais ess. It I" gould offer to trade union leaders an opportunity to present tothe imegenent ie wou, te desies, the grievances and the aftudes ofits employees, and make it posible fe de jmnagement to explain to union leaders and, throu mores yaaa igh them, t0 its employecs, the economie Tie management and the trade union must look upon collective bargaining as a means " soiing he bes posible solion, and not asa means ef acqunng eee conceding the minimum. There must bean honest attempt at solving a problem rather than (a Both the parties to a dispute should command the respect of each other and should have «sough bargaining power to enforce the terms of the agreement that may be arrived ee {) Tete must be mutual confidence, good faith, and a desire to make collective bargaining effective in practice, aes > (i) There should be an honest, able ani responsible leadership? for only this kind of leadership sod meaning (i The two pats should meticulously serve and abide by alte natin and sats laws which are applicable to collective bargaining. i (si) Both the parties must bear in mind the fact that collective bargaining is, in a sense, a form of price fixation and that any successful collective bargaining depends, inthe last analysis, ‘on whether, the management and the trade union do a good job of ensuring thatthe price of labour is properly adjusted to other prices. For the Management: (The management must develop and consistently follow a realistic labour policy, which should be accepted and implemented by all its representatives. (In order to ensure that the trade union feels that its postion in the organisation or factory 's secure, the management must grant recognition to it without any reservations and accept iv as a constructive foree in the organisation and the industry. (ii) The management should not assume that employee goodwill will always be there for it It should peri ‘examine the rules and regulations by which its labour force is governed. Tne Det Sa BEABTETodetemnne he atiues of employees, once icon, ond goin thet () The management should act upon the assumption that, in order to make the trade union a responsible “conservative body, it is essential that it should be fairly treated. It should, ‘moreover, establish such @ tip with the trade union a Pe, ‘atves that the later will-not lightly do anything that is capable of jeopardising rel lationship. E ; oi ©) The ot wait forthe trade union to bring employee geass O6 notice but should rather create the conditions in which the Petit tien Should settle the grievances of the employees even before the trade union brings them the notice of the management. : ‘) The management should deal wi ‘rade union in tion. If two trade ‘mions seek ‘no negotiations should be undertaken tll one of them establishes recognition, i = at the fact of having a ity of the ‘of the employees in its organisation, x (Wile weighing the esomonie cnsequnes of cllectivebagsning, tke mangement Should place greater emphasis on social considerations.For the Trade Union: labour, itis essential that trade Or tet agnd cat ramomae precios wien i ova ping rs si that their only function is 10 Secure higher (0 Te tbomnbers aod sre bso wrk and Bter working codons fr Bae 3 and their menbers have an obligation fo assist the management in the elimination of ye and in improving the quality and quantity of production. 73 ion should ay te the economic implications of collective bargs (de nes el rns spent ct which their members are employed. (jv) ‘Trade union leaders should assist in the removal of such restrictive rules and regulations ace likely 0 ineease costs and prices, reduce the amount that can be paid out as waps and tend to make for low employment and in the long run lower the standard of living ot all sections of society. (¥) Trade unions should resort to strikes only when all other methods of settling a dispute hie failed to bring about satisfactory results. ts and Coverage of a Collective Bargaining There is no standard specification of what should be included in a contract and what sould we be included, although, certain issues are often sought tobe excluded from collective bargaining sat retained for discussion and disposal by the management. Taylor observes: “The esserce of ie collective bargaining is thatthe scope of the relationship, the procedures for negotiation ad joa a Fa er a eee af well as onthe nature of agreements in other ean ea ccoents, controls and regulations, and a varity of related subjec, instance of either pry c mation bn these items is Folletd Tio their spocitis 2d oa Heys cavemen ind by surveys, conducted by their esearch staff. At he se seen eietael dotnet the company examines and analyses the public statements of txt tnign Jeers, tie proceedings of union conventions and conferences. and the collective bat “ends WH hve developed al ver the county The wade unions, however, ener the data thy sp yoda a Sash Fy sal aa {ere ckewhere i ie cBUHiy, fom pronomeenents of employers, from public surveys and stain and reports brought out by employers associations The pasoasel department sels the objective which are proposed to be achieved thoweh segotiton and which ave fo be nese ssaied to anjipated trade wmion demu, Bef however, negation comics, thoy anagenet's agg ast be obned oe (0) he sie opus ofthe company, including the {Bjectves of the negotiations (0) An spraisalof impenating the proposals if they are accepted by tee sas aie Proposals if they are ace by (©) An approval in principle of te demands ofthe trade union over which bargaining has ae >ade the dens Which arg ae a be scceted by eal (W Negotition Technique or Procedure: O° tenga Sta 8 oe al pene, Te pester sehr poate As fr as posible, a commie should be al “ae sn hoy we ae So el eel tase te hey eee eh concentrate ob dsc a ele Ea ee peat © Smeana OE industrial rievances or robles eee ee The management commits, sich BS se i team; the comite plan the nego Aud of the tactics to be adopted uring ble to the company and the demands which cam ‘The Negotiations may be undertaken by reps |Paraiso Init 2 ELI, he mo te instance oF ther pany ‘an rope g 2 peyote thon ther party proposing een ‘nd extent of ruc ca ‘spat for nepoaon or vars si sien vsins ado meas of work and other pert, ‘arenent in cae varey of nad ae Sir sociaons and cour, Touch st Artie ¢ publi atnents of ae we collec Sct anher hed te Waa ab i pblicsuveye 4 to be achieved through 4: union demands. Bef, be obtained on: of the negotiations; "are acepted by the two hich bargaining ha to be te demands which canst undertaken by repre) ‘egotiation cc ittee may ould aad 2y to become dont: ‘rans of pels it committee, winich hs plans the negotiations: to be adopted during the ir Homework) well; tht mao wali dr impatinto are often deputed by 2 couse of cit as tual sox don ich my sa dan wih any Bein: “The negotiators must consider the entig < nt whenever, they ate dice gain a atte obo ri see g ait ss Inve ben pry dann ea le rae! etn Wal ether cer an! tp ee ‘old Campo suggests that the folk ving procedure should be adopted in negotiation: For Union and Management (9 Been in negotiation. lode everybody, Relieve the existing tion (Be wiling to Hse. There woul be tine enomgh i you to way shot ings ad sey “No,” after you have heard all the facts, ne 5 ‘ (© Gar everyone. an opportunity o stat his postion and pont of vew. kn ths way, you wll cover ihe person Who is really insistent about a paicular problem or grievance acd new how to deal with him. (41 Koow something about the personal history of the other party's representatives (9 Always bear in mind the fact that you ave todo what is right and fi: 1 att rates should tive to maintain an objective aproach to problem or aricvance. They should think rather than fel their way through a problem. (2) Don't atempt to guide the discussion along a straight line which goes straight tothe solution ofthe problems. Let it wander at times; don’t hry it (iy Don't lt the negotiations reach the tage of stalemate. Help to define the problem and ‘uggs a solution, Ulimatums are out of place at the negotiation table () If fats disclose that there is a need for doing more than just solving the immediate problem, ‘0 far as justified in the circumstances, 1) Define each issue clearly and unambiguously, and discus it in the light of all the availble © sido ist Crs me ga 0 Sunt i ( Keep the membership of the conference 35 small 4 possible. Small groups facilitate Scat pga ns Sees © i i a (The length of a session should be dtrined by the tie, pico mental tpn “meng the members at the conference table. ©) Have a ey the negotiations, for this would be highly ag ea as gaged 4 aaa ‘and the parties should sign @ ‘shoul jut down in writing 1 si «a eee ae Pe an nae aeParanda | (o)Asbieaton soul ot be resorted o except in case in which Negaons hil aay ates are unable arrive at any agreement () Both the paris should, at al times, respect the i For the Management: S (9) Toe managment ms the ote ak ett te abo ender ing with are realy the representatives ofthe wor (0) Don't use lawyers as negotiators unles they have intimate knowledge of indus a, (c) Dox’ limit contacts with the union to controversial subjects, but consider Suc mai axe of common interest 0 both ‘ shouldbe printed ad circulated among ll the + Gy Followup Action: Togs shouldbe printed and among lhe xe, so tt they know eoaely wha as Bee agreed pon between the management and thes ees taives. Mesings of spervisors shoud be called wih view to apprising them of the conten Agyeament 20 tha, they may inplement it effectively. (©) Contract Administration ‘Wiss the process of negotiation bas bean completed itis time tsign the contact be tey ‘of which must be sineerely observed by both the parties. Prof. Smith has righly obsened “i, agreement is merely the framework for everday relatioships..the bargaining is carried on diy= Jn ote words, bargaining is continuing process. twill continue as long as there isa tie wen, _and enplyer snd plan. In this connection, Carpenter observes: "Within the iti ER asrangeret, the ptiesbepn defining ter relationship more precisely by means af el tere ins, eriwnee setlement, avbitation wards and the ike" 4 ft aination of te conc, Willamson and Haris reed tht,“ amen ‘Fer important to india relations than the contract te, tis the administration of he ca: The prowess in cllstive Barzuning is not measured by the mere signing of an agement Rist itis mens Th we : feemient. The negotiation of cont =) have suspense drama of a sort See The negation of jets of the public. igement is guided by that contract. Campo b* the personel enrused with the resp ‘made union and a management? Ths