Collective Bargaining

Collective Bargaining
• .Collective bargaining can be viewed as a
process which determines under what terms
industrial will be bought and sold and under
what terms industrial will continue to be
supplied to a particular company.
 Continuing
• The process of collective bargaining involves
negotiations about working conditions and
terms of employment between an employer
and union for the purpose of reaching mutual
agreement.
 Items of Collective Bargaining

• Mandatory Items
• Voluntary Items
• Exclusive Items
 continuing
• Mandatory Items:
These are the items that both management and
unions have accepted to constitute the issues of
negotiation.
• Voluntary Items:
These are the items which neither party in the
dispute can be compelled against its wish to
accept for negotiation.
 Continuing
• Exclusive Items
These are issues which are exclusive prerogative
of the management of the organization which
fall under the procedural agreements. Hence
the unions are not supposed to interfere with
them because they are under the ambit of the
functional responsibility of the management.
 Related Terms in Collective Bargaining

• Bargaining Power
• Cost of Agreeing and Disagreeing
• Union Tactics and Cost of Disagreeing
• Management Tactics and Cost of
Disagreement
• Strength of the Union
 Continuing
• Bargaining Power: The term is the ability to control the
setting of wages, sometimes within given limits.
Bargaining power also refers to the monopoly of wealth as
it is related to the organization’s ability to exploit and
impose costs.
• Cost of Agreeing and Disagreeing: A union’s bargaining
power at any point is the management willingness to
agree to union’s terms, and such management willingness
to agree in turn depends upon the cost of disagreeing
with union terms relative to the cost of agreeing to them
 continuing
• Union Tactics and Cost of Disagreeing
The Trade unions normally use strike to withhold
their industrial until their terms are met.
• Management Tactics and Cost of
Disagreement:
Management has the capacity to increase cost of
disagreement to unions through lockout by
withholding employment
 Continuing
• Strength of the Union:
The strength of the union in negotiation depends on some
factors, which are as highlighted below:
• Persuasive or coercive skills of the union executives.
• The membership strength of the union.
• The prevailing economic condition in the country.
• The purse or financial resources of the union.
• Workers willingness to embark on strike.
• Ability of the union to call members on strike.
• The goals of the bargaining parties
 Critical Factors for Effective Collective Bargaining

• Faith in Collective Bargaining 

• Favorable Political Climate
• Freedom of Association for the Workers
• Stability of Trade Unions
• Willingness to give and take
• Recognition of Trade Union
• Joint Authorship of Agreement
• Avoidance of Unfair Trade Practices
 Methods of Collective Bargaining

• Contractual Method
• Institutional Method
Various forms of industrial disputes
• Economic Disputes
• Legal Disputes
• National Disputes
 The procedures for collective bargaining, which
are necessary for ensuring industrial harmony
• Stage 1: Union Recognition Stage
• Stage 2: Pre-Negotiation Stage
• Stage 3: Selection Stage
• Stage 4: Negotiation Stage
• Stage 5: Contract Stage