Collective Bargaining


Collective BargainingCollective Bargaining is negotiation between an employer or group of employers and a group of work people to reach an agreement on working conditions. Representatives of employers and employees negotiate, administer and enforce an agreement.

Negotiation about working conditions and terms of employment between an employer, a group of employers, or one or more employers organizations on the one hand and one or more representative workers organizations on the other with a view to reaching agreement

WHY? To improve working conditions. etc. pay. .

What are the most common issues negotiated? Hiring. Leaves. Discharge. Dress Code. Planning Time AND«« PAY!!!!! . Transfers. Evaluation. Discipline. Seniority. Working Conditions.

wages. security. aspirations. values. Not merely an economic process but socio-economic process (mutual respect to views. freedom.What? Group process Involves negotiations Bipartite exercise involving representatives of union of employees and employers Objective is to reach an agreement Purpose is to improve working conditions of employees viz. etc) . welfare. etc..

Collective Bargaining ³Collective Bargaining is a process in which the representatives of a labour organization & the representatives of business organization meet and attempt to negotiate a contract or agreement. which specifies the nature of employee-employer union relationship´. ± FLIPPO Process involving discussions and negotiations µcollective¶ ± group 'bargaining' ± proposals and counter proposals to reconcile their conflicting interests is a flexible approach .

. win ± lose Co-operative Bargaining more open to coming down from their high horses.Types Of Bargaining Conjunctive/Distributive Bargaining . win ± game.

Collective Bargaining Process Prepare Discuss Propose Bargain Settlement .

Process of Collective Bargaining Phase I : Charter of demands by Bargaining Agent Phase II : Preparation for Negotiation Phase III : Bargaining Phase IV : Collective Agreement Phase V : Contract Administration .


. for and on behalf of employees.Phase I : Steps Registration of Union Recognition of Union Recognition of Bargaining Agent (Union having majority membership) Charter of Demands Present it to management for agreement.

formulate strategy . balancing between viability and labour costs. public support. stand against Union (tough or accommodative).. Preparation by Union : collect data.Phase II : Preparation by Management Data Collection : Internal and External Policy Formulation : wage level .). management¶s capacity to pay. labourers. formulate policy (strike or not. competition Management Strategy : Prioritization of demand. balancing between interests of share holders vs. concessions they could allow. constraints on pricing vs. etc. etc.

Phase III : Criteria for Bargaining Give and take attitude from both sides Keep communication channel open Capacity to read others ³hidden agenda´ (by negotiation or by collection of intelligence data) Identify ³sticking point´ (if offered less will lead to industrial strife) .

Phase III : Strategies for Bargaining (identified by Watton & Mckersie) Intra-organizational bargaining Management and Union prefix strategy Limits up to which they are prepared to go down on their own as well as others demands Attitudinal Structuring Ongoing relationship instead of ad hoc arrangement Involves trust and confidence. Work together as partners .

. Wage rise for labourers is reduction in profit for management) Interactive Bargaining (Best Strategy) Win-Win situation Eg. Workers increase productivity and claim higher compensation. Management assist workers achieve their objective by taking supportive role.Phase III : Strategies for Bargaining Distributive Bargaining One Gain ± Another Lose (eg.

³Union Contract´ or ³Labor-Management Contract´ Written statement of terms and provisions of the agreement .Phase IV : Writing down Collective Agreement Also known as ³Labor Contract´.

equity. transparency of administration and free flow of information.Phase V : Contract Administration Transparency Management has right to manage & involves fairness. Procedure for handling contractual disputes Spell out detailed procedure in implementation of provisions of contract Follow the spirit of agreement .

procedural agreements or substantive agreements . a CBA binds only the parties to it.  settlements. there are three types of agreements.Collective Bargaining Agreement Written document regarding working conditions and terms of employment Legally. namely  voluntary agreements. and  Consent awards. In India.

as well as other disputes. .Contents of Collective Bargaining Agreement The date of commencement of the agreement Its duration A definition of terms The procedure for settling disputes regarding interpretation. exactly how conversion of employees' wages to the new scales is to be effected. The consequences in the event of breaches of the agreement As regards wages.

Levels At Which Collective Bargaining Is Undertaken Enterprise Or Plant Level Industry-Cum-Region wide Agreements Sectoral Collective Bargaining At National Level .

Conditions For Successful Collective Bargaining Trade Union Recognition Observance of Agreements Support of Labour Administration Authorities Good Faith Proper Internal Communication .

Conditions For Successful Collective Bargaining Proper selection of negotiating team Consider Union as a Partner Understand views and interests of other party with open mind Adequate homework Sense of belongingness (on part of union) Strikes and Lockouts are to be the last resorts .

Policies : Collective Bargaining be considered as an educational process Collective Bargaining must be treated as a form of finding out an optimum solution to a given problem Both parties have equal power Have trust and confidence Leadership qualities Follow State laws .

Once both the parties know what they want. otherwise the entire process of CB will be rendered futile.PERCEPTIONS ON COLLECTIVE BARGAINING CB essentially means negotiations between the labour and management CB should just not stop at the negotiations but also go on to be implemented. It is mostly the formal sector that benefits out of the CB process. The parties have to adopt a flexible attitude throughout the process of bargaining It is based on give and take approach and take or leave approach. Obviously all the above mentioned conditions are required successful for CB but the most essential among them is the ³good faith´ . negotiations become easier and better.

Management Obligation . Union Strategy .Frequency / Off Hour / Agenda / Number of Reps from each side / Confidentiality / Minutes 3.Use Model Form of CBA .Bargain in Good Faith 2.Prior to starting main CBA negotiations . Ground Rules .1.

4.Structure of CBA (in general)  union activities  personnel matters  working conditions  industrial accident / safety issues  collective bargaining process  labor disputes . Role Play / Preparation for each Negotiation Session 6. Major Items of Collective Bargaining Agreement . Counter Proposal from the Management Side 5.

Major Issues Membership Eligibility           Union Shop or Open Shop Union Activities during Working Hours Full-time Union Officer Union Office Check . DAC. Personnel matters for Union Executives) Working Conditions (Improvement) Non-Participants of Strike How to Resolve the Dispute .Off Use of Company Facilities Personnel Matters (Dismissal.

new hiring. Picketing  Work-to-rule: Attire Strike. Types of Collective Action  Strike (Full or Partial). Slow down. etc. Collective Refusal of Overtime. No Replacement During Strike Period .Not from outside : outsourcing.Majority Vote on Strike 9. subcontracting prohibited . Legal Process . Collective Use of Monthly or Annual Leave.7.Report of Impasse (10-day mediation period) . 8.Mediation Hearing .

Civil Remedies:  Damage Suit for Compensation  Injunction / Provisional Attachment (over assets) . Measures Available to Management against Union Activities  No Work No Pay Principle  Lockout (defensive measure only) ‡ Against Illegal Union Activities .Internal Disciplinary Sanction : .Criminal Remedies :  Criminal Accusation  Business Interference / Defamation .10.

Classes of Bargaining Items Categories of Bargaining Items Mandatory Items Voluntary Items Illegal Items .

to put pressure on management.  If the impasse is not resolved: a The union may call a work stoppage. or strike. . and Strikes An Impasse  Usually occurs because one party is demanding more than the other will offer.Impasses.  Sometimes an impasse can be resolved through third party²a disinterested person such as a mediator or arbitrator. Management may lock out employees. Mediation.

Strikes Economic Strike Unfair Labor Practice Strike Types of Strikes Wildcat Strike Sympathy Strike .

hours.Grievances Grievance  Any factor involving wages. or conditions of employment that is used as a complaint against the employer. Sources of Grievances  Discipline  Seniority  Job evaluations  Work assignments  Overtime  Vacations  Incentive plans  Holiday pay  Problem employees .


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