COLLECTIVE

BARGAINING
By Shallu
MBA 3Rd
Content
■ Meaning and definition of Collective Bargaining
■ Objectives
■ Importance
■ Types of Collective Bargaining
■ Model and methods
 COLLECTIVE BARGAINING
■ Collective bargaining is the process in which working people,
through their unions, negotiate contracts with their employers
to determine their terms of employment, including pay,
benefits, hours, leave, job health and safety policies, ways to
balance work and family, and more.
■ “Discussions between a trade union and an employer about the
pay and working conditions of the union members”
Collective Bargaining Definition

Collective Bargaining refers to the discussion and negotiation

between the employer and the employees on the terms of
employment, including the working environment, conditions of
employment, shift length, work holidays, vacation time, sick
leave, and health care benefits, as well as compensation based
items like basic pay, overtime pay and retirement benefits.
Objectives of Collective Bargaining

■ To foster a pleasant and cordial relationship between employer and

employees.
■ To equally safeguard the interests of both employer and employees.
■ To ensure that the government intervention is maintained at a minimum
level.
■ To encourage the maintenance of a democratic environment at the
workplace.
Importance of Collective Bargaining

■ Collective bargaining develops better understanding between the

employer and negotiations.
■ It promotes industrial democracy.
■ It benefits the both-employer and employees.
■ It facilitates the speedy implementation of decisions arrived at collective
negotiation.
■ Employees are safeguarded from exploitation by employers.
Types of Collective Bargaining
Types
1. Distributive bargaining:
■ In this type of negotiation process, one party benefits at the expense of others.
■ It discusses redistribution of profit sharing to increase wages, bonuses, or
financial benefits.
2. Integrative Bargaining:
■ In this type of bargaining, the agreement is reached so that both the
participating sides tend to benefit – a win-win situation.
■ In other words, both parties consider each other’s needs and concerns.
3. Productivity Bargaining:
■ The negotiations revolve around productivity and pay.
■ The two parties agree to certain changes that promise to boost productivity in
exchange for higher wages.
4. Composite Bargaining:
■ Negotiation emphasizes various factors not directly related to pay but
rather focused on employee welfare and job security.
■ It ensures the long-term relationship between employer and employee
that is mutually beneficial.
5. Concessionary Bargaining:
■ The union sacrifices some benefits to bail out the employer during the
stressed economic situation,
■ which benefits the employees in the long run.
Models and methods