A brief introduction about collective bargaining

1. Presented by
Md Rajik Hussen
MSW(HR) || Year
Pondicherry
University

2. There are numerous causes of Industrial Disputes
and each of them is harmful to all stakeholders ,
employers, employees, management and even to
the society
• For management side disputes lead to loss of
production , interior quality, increasing costs,
increasing strikes, loss of revenue and profit and
sickness of the plant
• The employees are also suffered due to disputes
in the terms of loss of wages, loss of jobs,
lockouts etc.
• Industrial disputes are barriers to national
progress therefore they must be settled at any

3. “collective Bargaining is a process in which the
representatives of a labour organization and the
representatives of business organization meet and
attempt to negotiate a contract or agreement ,
which specifies the nature of employee –employer
union relationship” _ PLIPPO.
“collective Bargaining is an agreement between a
single employer or an association of employers on
the one hand and a labour union on the other,
which regulates the terms and condition of
employment” _ TUDWIG TELLER.

4. • The concept of collective bargaining was introduced very late
in India as Trade Unions were found only in 20th century.
• Attained significance only after 1962.
• Coined by Sydney and Beatrice Webb and Great Britain.
• Made up from two words Collective which means “groups’’
and bargaining which means “ proposals and counter
proposals”.
• Which specifies the nature of employee employer union
relationship.

5. 1.Resolve differences over knotty issues
2. Protect the interests of workers through
collective action
3. To maintain harmonious relationships between
the employer and the employees
4. Carry out negotiations voluntarily without
interference from a third party
5. To promote a wave of industrial democracy
6. Arrive at an amicable agreement through a
process of give and take
7. To arrive at an agreement on wages and other
conditions of employment

6. Broadly two type of issues involves in collective Bargaining
1.Economic provision:- Includes those provision which affects the
economic, financial and professional aspect of workers(working
conditions, rules and regulations)
2.Political provisions or issues:- relates to the general administration
such as division of authority and responsibility workers participation in
management and power to challenge the decision taken by management
• Other items are-
 allowance and leave rules
 wage and salary structure
 lay off and retrenchment of workers
 demotion , promotion transfer
 grievances procedure
 safety and health facilities
 maintenance of discipline

7. Issues of collective bargaining
1. Wages and working conditions
2. Work norms
3. Incentive payments
4. Job security
5. Changes in technology
6. Work tools, techniques and practices
7. Staff transfers and promotions
8. Grievances
9. Disciplinary matters
10. Health and safety
11. Insurance and benefits
12. Union recognition
13. Union activities/responsibilities
14. Management rights

8. Types Of Bargaining
 Distributive bargaining: Under it, the economic issues like
wages,
salaries and bonus are discussed. In distributive bargaining, one
party’s gain is another party’s loss.
Integrative bargaining : This involves negotiation of an issue on
which both the parties may gain, or at least neither party loses.
 Attitudinal restructuring : This involves shaping and reshaping
some attitudes like trust or distrust, friendliness or hostility
between labor and management.
 Intra-organizational bargaining: It generally aims at resolving
internal conflicts. This is a type of maneuvering to achieve
consensus with the workers and management. Even within the
union, there may be differences between groups.

9. PROCESS OF COLLECTIVE BARGAINING
PREPARE:
This phase involves composition of a negotiation team. The
negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
The first thing to be done is to determine whether there is actually
any reason to negotiate at all.
DISCUSS:
Here the parties decide the ground rules that will guide the
negotiations.
A process well begun is half done and this is no less true in case of
collective bargaining.

10. PURPOSE:
This phase involves the initial opening statements and the
possible options that exist to resolve them.
In a word, this phase could be described as brainstorming.
The exchange of messages takes place and opinion of both the
parties is sought.
BARGAIN:
Negotiations are easy if a problem solving attitude is adopted
This stage comprises the time when ‘what ifs’ and ‘supposals’ are
set forth and the drafting of agreements take place
SETTLEMENT:
This stage is described as consisting of effective joint
implementation of the agreement through shared visions ,
strategic planning and negotiated change.

11. Importance of Collective Bargaining
1. Importance to employees
• 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 management’s freedom for arbitrary action against
the employees. Moreover, unilateral actions by the employer
are also discouraged.
• Effective collective bargaining machinery strengthens the
trade unions movement.

12. Importance of Collective Bargaining
2.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 thereby tends to reduce
the cost of labor 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.

13. • Importance of Collective Bargaining
3.Importance to society
• Collective bargaining leads to industrial peace in the
country
• It results in establishment of a harmonious industrial
climate which supports which helps the pace of a nation’s
efforts towards economic and social development since
the obstacles to such a development can be reduced
considerably.
• 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.

14. Conditions for successful Collective Bargaining
Trade Union Recognition
Observance of Agreements
Support of Labour Administration Authorities
Good Faith
Proper Internal Communication

15. Atlast it may conclude that collective Bargaining is a mutual
understanding between two parties which leads them towards
development and fulfil their needs

16. Thank you