COLLECTIVE BARGAINING

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COLLECTIVE BARGAINING
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COLLECTIVE
GROUP ACTION
BARGAIN
NEGOTIATION
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It is a group process, wherein one group,
representing the employers, and the other,
representing the employees, sit together to
negotiate terms of employment. ILO has defined
Collective Bargaining as, Negotiation about
working conditions and terms of employment
between an employer and a group of employees or
one or more employee, organisation with a view
to reaching an agreement wherein the terms serve
as a code of defining the rights and obligations
of each party in their employment relations with
one another.
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• Negotiations form an important aspect of the
  process
• of collective bargaining i.e., there is
  considerable
• scope for discussion, compromise or mutual give
  and
• take in collective bargaining.
• Collective bargaining is a formalized process by
• which employers and independent trade unions
• negotiate terms and conditions of employment and
• the ways in which certain employment-related
  issues
• are to be regulated at national, organizational
  and
• workplace levels

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Features of Collective Bargaining

• GROUP COLLECTIVE ACTION
• EQUAL STRENGTH
• BOTH PARTIES SHOULD BE FLEXIBLE
• CONTINIOUS PROCESS
• VOLUNTARY
• POWER RELATIONSHIP
• BIPARTITE PROCESS

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TYPES OF COLLECTIVE BARGAIN

• DISTRIBUTIVE BARGAIN
• CO-OPERATIVE BARGAIN
• PRODUCTIVITY BARGAIN
• COMPOSITE BARGAIN

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PRE REQUISITES FOR COLLECTIVE BARGAIN

• There should be freedom of association between
• Mgt. and workers.
• Select good negotiation team.
• Before going negotiation both parties should have
• knowledge with the issues.
• It is necessary for the mgt. to recognise the
  union
• and bargain.
• The collective bargain is in the form of
• Give and Take procedure.
• Both parties should bonafide with their agreement
• after their negotiation.

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Collective Bargaining Process

• Prepare
• Discuss
• Propose
• Bargain
• Settlement

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IMPORTANCE OF COLLECTIVE BARGAINING

• Collective bargaining develops a sense of self
  respect
• and responsibility among the employees.
• It increases the strength of the workforce,
  thereby,
• increasing their bargaining capacity as a group.
• Collective bargaining increases the morale and
• productivity of employees.
• It restricts managements freedom for arbitrary
  action
• against the employees.
• Unilateral actions by the employer are also
• discouraged.

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• It helps in securing a prompt and fair settlement
  of
• grievances.
• Effective collective bargaining machinery
  strengthens
• the trade unions movement.
• The workers feel motivated as they can approach
• the management on various matters and bargain
  for
• higher benefits.
• It provides a flexible means for the adjustment
  of
• wages and employment conditions to economic
• and technological changes in the industry, as a
  result
• of which the chances for conflicts are reduced.
  

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Importance to employers

• It becomes easier for the management to resolve
  issues
• at the bargaining level rather than taking up
  complaints
• of individual workers.
• Collective bargaining tends to promote a sense of
  
• job security among employees and reduce the
  cost of
• labour turnover to management.
• Collective bargaining opens up the channel of
• communication between the workers and the
• management and increases worker participation
  in
• decision making.
• Collective bargaining plays a vital role in
  settling
• and preventing industrial disputes.

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Importance to society

• Collective bargaining leads to industrial peace
  in the
• Country.
• It results in establishment of a harmonious
  industrial
• climate which helps the development of economic
• and social.
• The discrimination and exploitation of workers is
  
• constantly being checked.
• It provides a method or the regulation of the
  conditions
• of employment of those who are directly concerned
  
• about them.

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Collective bargaining operates at three levels
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Collective bargaining operates at three levels
NATIONAL LEVEL
INDUSTRY LEVEL
ENTERPRISE/PLANT LEVEL
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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, as well as other disputes.
• The consequences in the event of breach of the
  agreement
• As regards wages, exactly how conversion of
  employees' wages to the new scales is to be
  effected.