COLLECTIVE BARGAINING

A K BASU
 WHAT IT IS
• A PROCESS – HAS A NUMBER OF
STEPS
• GROUP ACTIVITY
• PROCESS TO RESOLVE DIFFERENCES
• COULD BE FORMAL WITH DEFINED
PARAMETERS
• COULD BE INFORMAL
 WHAT IT IS NOT
• NOT INDIVIDUAL – TO – INDIVIDUAL
INTERACTION
• CANNOT RESOLVE ALL WORKPLACE
ISSUES
- INDIVIDUAL PROBLEMS
- DISCIPLINE
- PERSONAL CONFLICTS
• HOWEVER, UNIONS TRY TO CONVERT ALL
ISSUES TO BARGAINING
 DEFINITION
• Collective bargaining is a process of 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.
ILO: Collective Bargaining – A Worker’s
Education Manual [1973]
 PROCESS
• COMMENCES WITH CHARTER OF
DEMANDS FROM THE UNION[S]
• MANAGEMENT MAY ALSO SUBMIT A
COUNTER CHARTER
• CHARTER OF DEMANDS USUALLY
SUBMITTED WHEN AN AGREEMENT
IS TO EXPIRE OR A NEW UNION IS
FORMED
 CHARTER OF DEMANDS
• UNION CHARTER CONTAINS :
- DEMAND FOR WAGE INCREASE
- BENEFITS/FACILITIES
- RE – CLASSIFICATION OF JOBS
- EMPLOYMENT OF RELATIVES
- EFFECTIVE DATE OF THE AGREE –
MENT
 CHARTER [ CONTD ]
• MANAGEMENT CHARTER CONTAIN :
- RATIONALISATION OF WORK
PROCESSES / MANPOWER
- INCREASE IN WORK NORMS
- REMOVAL OF SUBSIDIES
- REMOVAL OF RESTRICTIVE
PRACTICES
 POST – CHARTER
ACTIVITIES
• MANAGEMENT FORMS TEAM FOR
MAIN NEGOTIATIONS
• DEPARTMENTAL TEAMS FOR
PRODUCTIVITY/MANPOWER
DISCUSSIONS
• CONSENSUS ARRIVED ON STRATEGY
 UNION INNER DYNAMICS
• CONFLICTING INTERESTS SORTED OUT
BETWEEN OLD AND YOUNG WORKERS
• NOT ALWAYS SUCCESSFULLY
• INTER – UNION RIVALRIES SURFACE – A
MAJOR ISSUE IN MULTI – UNION SITUATIONS
• VARIOUS CONFLICTING INTERESTS SURFACE
• UNION[S] HAVE A MORE DIFFICULT JOB
• UNION[S] HAVE TO PRIORITISE IN THEIR
STRATEGY
 BARGAINING PROCESS
[CONTD]
• AFTER CHARTERS SUBMITTED, THEN
• PERIOD OF STUDY AND FORMING
STRATEGIES
• MANAGEMENT LOOKS AT :
- REGION-CUM-INDUSTRY WAGE
- CAPACITY TO PAY
- COST OF AGREEMENT IS ESTIMATED
- PAST INCREASES
 BARGAINING PROCESS
[CONTD]
• NEGOTIATION COMMENCES
• MANAGEMENT MAY INSIST THAT ITS
CHARTER TO BE TAKEN UP FIRST
• FORMAL PROCESS :
- DEFINED PLACE
- DEFINED NUMBERS ON BOTH SIDE
- SPECIFIC TIME IS INFORMED
NB: RELEASE FROM WORK
 NEGOTIATIONS
• MNGT. SEEKS CLARIFICATION ON
EACH DEMAND
• GIVES INITIAL RESPONSE BASED ON
STRATEGY WORKED OUT
• MNGT. GIVES DETAILS ON ITS
CHARTER
• INITIALLY, TOUGH POSITIONS ON
BOTH SIDES ARE TAKEN
 TYPES OF BARGAINING
• INTRA – ORGANIZATIONAL BARGAINING:
DISCUSSION WITHIN TEAMS TO ARRIVE
AT CONSENSUS AND STRATEGIES
• ATTITUDINAL STRUCTURING: PSY –
CHOLOGICAL ORIENTATION TO
BUILD ON – GOING, LONG – TERM
RELATIONSHIP INSTEAD OF PIECEMEAL,
AD HOC SETTLEMENTS
 TYPES OF
BARGAINING[CONTD]
• DISTRIBUTIVE BARGAINING : PROCESS WHERE
ONE PARTY GAINS, THE OTHER LOSES.ZERO SUM
GAME
• INTEGRATIVE BARGAINING : THE MOST
DESIRABLE.PRODUCTIVITY GAINS EXPANDS THE
CAKE WHICH IS SHARED
A WIN – WIN GAME
“A Behavioural Theory of Labour Negotiations”
R E Watton & R B McKersie [1965]
THIRD PARTY INTERVENTION
• IF COLLECTIVE BARGAINING GETS
STALLED AT BIPARTITE LEVEL,
THEN
- REFER THE MATTER FOR CON –
CILIATION TO CONCERNED
LABOUR DEPARTMENT, OR
- WAIT FOR UNION TO MAKE THE
FIRST MOVE
 SECTION 18 OF I.D.ACT
• SEC 18[1] : BIPARTITE AGREEMENT
• FEATURES :
- VALID BETWEEN THE SIGNA –
TORIES ONLY
- MINORITY UNION, IF NON–SIGNA –
TORY, MAY CREATE DISRUPTION
- NEW EMPLOYEES NOT COVERED
 SECTION 18 [ CONTD ]
• SEC 18[3] : TRIPARTITE SETTLEMENT
• FEATURES :
- GOVERNMENT LABOUR DEPTT IS
A PARTY
- COVERS ALL PARTY INVOLVED
IN THE DISPUTE
- COVERS FUTURE EMPLOYEES