Collective Bargaining

1.URVI JOSHIPURA
2.SUNITA FATWANI
3.ISHA MEHTA
4.NILESH SHAHJI
5.JAY PATEL
 Meaning
• The term ‘Collective bargaining’ has been
used by scholars since 1891.
• The President of American Federation of
Labor in USA considered ‘collective
bargaining’ as the most important for
determining the terms and conditions of
employment.
• Scholars in this field have defined this term in
different ways.
• According to Encyclopedia of Social Sciences,
“Collective Bargaining is a process of discussion
and negotiation between two parties, one or both of
whom is a group of persons acting in concert. The
resulting bargain is an understanding as to terms and
conditions under which a continuing service is to be
performed”.
• In short, collective bargaining is a procedure by
which employers and a group of employees agree
upon the conditions of the work.
 Features of Collective Bargaining
• It is a process in which the terms and conditions of
employment are determined jointly by the employer and
workers.
• The term ‘collective’ generally represents the worker’s
side, who bargain either in combination or through their
trade unions.
• The employer-employee relationship is a pre-condition
for collective bargaining.
• The main object of CB is the determination of terms and
conditions of employment through negotiation and
process of give-and-take. In the event of failure of
negotiations, the parties take to strikes, lockouts and
other coercive measures.
Contd..
• In regulating various aspects of CB, the state also
plays a notable role such as- selection of a
bargaining agent, determining the enforceability of
collective agreements etc.
• The nature of CB is changeable and dynamic. The
pattern of CB in different countries is not the same,
nor is CB at the same stage of development
everywhere.
 Steps involved in Collective Bargaining

1. Presentation in a collective manner to the employer

their demands by the employees.
2. Discussion and negotiation on the basis of mutual
give-and-take for fulfillment of demands.
3. Signing of formal agreement and arriving at a
mutual understanding.
4. If in case of failure, a likely resort to strike or
lockout to force the parties to come to terms.
 Importance of Collective Bargaining

1. Improvement in the condition of the workers

2. Check on autocracy in Industry
3. Promotion of Lasting Industrial Peace
4. Conducive to Managerial Efficiency
5. Development of Industrial Rules
6. Significant for Society and Economy
 UNITS AND LEVELS OF COLLECTIVE BARGAINING

• The term “bargaining unit” refers to the parties, that is,

employers and workers trade unions represented in
negotiations, and to whom the resulting collective
agreement applies.
• The “level of bargaining” is a broad term denoting the
nature of ownership of undertakings, the geographical
area, the industry, the jurisdictions of employers and trade
unions, or the layer where collective bargaining takes
place.
• Some of the possible situations considered from the point
of the levels and units of collective bargaining are cited
ahead:
1. Plant or Establishment level:
Bargaining between one employer/company on the one side, and
one or more unions established at the plant, locality, region,
industry, national level, or a group of workers, on the other.
2. Local Level:
Bargaining between one employer or a group of employers or one
more employer’s associations on the one side, and one or more
unions established at the plant, locality, region, industry, nation
level, or a group of workers, on the other.
3. Region/Area Level:
Bargaining between one or more employers/companies or one or
more employer’s associations at the region, industry or nation-
level on the one side, and one or more unions established at the
plant, region/area, industry or nation level, on the other.
4. Industry Level:
Bargaining between one or more employers/companies or one
more employer’s associations on the one side, and one or more
unions established at the industry, nation, region/area or plant level,
on the other.
5. National level:
Bargaining between one or more employers/companies
/corporations or one or more employer’s associations on one side,
and one or more unions established at the national, industry,
region/area or plant level, on the other.
 FACTORS INFLUENCING BARGAINING UNITS AND
LEVELS
1. Structure of trade union organization:
Where industrial unions at the plant level are predominant, a
single union may bargain for all the workers in the plant. In such
cases, the level of bargaining is plant and the unit is confined to the
representatives of the employer and workers in the plant. When
such unions are formed at the industry level, industry level
bargaining may become more frequent and the unit of bargaining
becomes wider. Many of national unions like BMS,INTUC and
AITUC bargain with national level employer’s organizations,
leading to the enlargement of the level as well as unit of
bargaining.
2. Nature of Ownership of Industrial Enterprise:
Where the ownership of industrial enterprises is confined to an
employer or company at the local level and there is preponderance
of plant-level industrial unions, the level of bargaining will be low
and units simple. When a single employer owns a large number of
establishments spread in different areas, bargaining may take
place at each of the establishments separately or a single
agreement applicable to all the plants may be contracted.
3. Nature of industrial relations laws and governmental
policy:
Both the levels and units of collective bargaining are profoundly
influenced by the contents of industrial relation laws and
governmental policies. In many countries these laws regulate the
selection of bargaining agent, recognition of representative
unions, disposal of representation cases, determination of
bargaining units, registration of collective agreements, unfair
labour practices and other procedural aspects of collective
bargaining
4. Other factors:
Some other factors influencing the pattern of bargaining units
and levels are: patterns set by reputed employers, extent of
trade union rivalry, nature of trade union leadership, proximity
influence, nature and extent of benefits available under labour
laws and industrial awards and the type of industry or
business.
 HURDLES TO COLLECTIVE BARGAINING IN INDIA:
1. Voluntariness in recognition of Unions:
The recognition of trade unions for the purpose of bargaining has
continued to be voluntary. There is no statutory compulsion for the
employers to recognize representative unions. They are only under moral
obligation to do so under the “Code of Discipline”.
2. Ineffective Procedure Of The Determination Of
Representative Union:
Even where the employers are willing to recognize the representative
unions, the determination of the representative character of unions often
becomes a very difficult task. For this purpose the procedure of
verification of membership has been widely used. The procedure of
“secret ballot”, as is widely followed in western countries is seldom used
in India. The problem has become more acute on account of fierce
rivalries and factionalism engulfing a large number of trade unions in the
country.
3. Outside Leadership In Trade Unions: f
A large number of trade unions are dominated by outside leaders who are also
active workers of one political party or the other. The rivalry and factionalism
of the political parties are also reflected in the trade unions. Experience has
also shown that a number of outside leaders do not have any interest in the
affairs of the union, or in the aspirations of the workers whom they represent
in bargaining. Thus there is a need to build up strong internal leadership.
4. Provision Of Elaborate Adjudication Machineries:
A network of adjudication machineries established under the Industrial
Disputes Act, 1947 and some state. Acts in the form of Labour Courts,
Tribunals, National tribunals and Industrial Courts, have been in operation for
more than half a century. Under these laws the government is empowered to
refer industrial disputes to these authorities, whether the parties like it or not.
The working of adjudication machineries has revealed many deficiencies from
various aspects. A large no. of disputes are referred to these authorities every
year and, during their pendency, it is very difficult for the parties to enter into
negotiations, although they can jointly request the adjudication authorities to
give consent awards.
4. Restrictions on strikes and lock-outs:
In collective bargaining, right to strike and lock-out is considered essential as
the last weapon in the armoury of workers and employers, respectively.
Collective bargaining without this right has little significance.
5. Comprehensive coverage of labour laws:
A number of protective, social security and welfare laws have been in operation
in the country. On many occasions, the trade unions in India have pressurized
the government to enact pro-labour laws. Only a few trade unions have
succeeded in improving upon the minimum standards laid down under labour
laws. Had the coverage of labour laws been narrow, the trade unions would
have relied more on collective bargaining than on other methods.
6. Inadequate Unionisation:
In India, only a small percentage of workers has been organized on a regular
basis. Available figures show that less than 15 per cent workers in India are
organized . He average size of trade unions is very small. When compared to
the average size of unions in USA, Great Britain, France and many other
European countries. The financial condition of the Indian trade unions is also
poor. Moreover, organization of worker at the industry or regional level, are
confined only to few industries. These features are not congenial for the growth
of collective bargaining of in the country
• Other factors
Some other factors inhibiting the growth of
collective bargaining in India have been
inadequacy of education among worker,
unwillingness on the part of many employers
to part with their freedom and to sit along with
their workers on the bargaining table, poverty
of the workers and masses, and inadequate
capacity of the industry to pay.
THANK YOU…………….