Presentation on

COLLECTIVE BARGAINING
Present By : Bhumika Vaishnav Rucha Patel Unnati Desai

INTRODUCTION
Collective Bargaining is a process of joint decision-making and basically represent democratic way of life in industry. It establish a culture of bipartism and joint consultation in industry and a flexible method of adjustment to economic and

technical changes in an industry.

It helps in establishing industrial peace without disrupting either the existing arrangements or the production activities.

MEANING & DEFINITION

Meaning : Collective bargaining is the technique that has been adopted by

unions and management to reconcile their conflicting interests.

The phrase collective bargaining is made up of two words collective and bargaining. The process is collective because issues relating to terms & conditions of employment are solved by representatives of employees & employers in groups. The

term bargaining refers to evolving an agreement using methods

like negotiations, discussion, exchange of facts & ideas.

Definition :

HARRINON -

is a process of accommodation between two

institutions which have both common and conflicting interests.

RICHARDSON - Collective bargaining takes place when a

number of work people enter into a negotiation as a bargaining unit with an employer or group of employers with the object of reaching

an agreement on the conditions of the employment of the work

people.

OBJECTIVES
The main objectives of collective bargaining are: To settle disputes/conflicts relating to wages & working conditions. To protect the interests of workers through collective action. To resolve the differences between the workers & management through voluntary negotiation and arrive at a consensus. To avoid third party intervention in matters relating to employment.

CHARACTERISTICS / FEATUERS
Collective : It is collective in two ways. Equal Bargaining strength Flexible

Voluntary
Continuous : CB is a continuous process. Dynamic

 Power relationship : Workers want to gain the maximum from management & management wants to extract the maximum from workers. Representation Bipartite process : no third party intervention. Rule making

PROCESS OF COLLECTIVE BARGAINING

Identification of the problem Preparing for negotiations Negotiation of agreement Implementation of contract

IDENTIFICATION OF THE PROBLEM

The nature of the problem influences the whole process. Whether the problem is very important that it Is to be discussed immediately or it can be postponed for some other

convenient time & whether the problem is a minor one so that

it can be solved with out involved long process of collective bargaining.

PREPARING FOR NEGOTIATIONS

When it becomes necessary to solve the problem through the collective bargaining process, both the parties prepare themselves for negotiations. The preparation starts with selection of representatives . Such representatives should be selected who can carry negotiation with patience & who can present their views effectively.

NEGOTIATION OF AGREEMENT
During negotiations , the representatives should be attentive so

as to find out what the other party is arguing for. The

representatives tend to think about what counter arguments they can present and how to say no effectively, while the other party is presenting its own views. By understanding their problems sometime a better solution may be reached which is more acceptable to both the parties. When a solution is reached , both the parties concerned sign the agreement which becomes a binding contract for both the parties.

IMPLEMENTATION OF CONTRACT
The Agreement can be made on a temporary basis. In such case, before its expiry both parties consult each other and can terminate or renew the agreement depending upon the circumstances.

TYPES OF COLLECTIVE BARGAINING

i. Conjunctive / distributive Bargaining : The parties try to maximize their respective gains. They try to settle economic issues such as wages, benefits,

bonus, etc.
Unions negotiate for maximum wages . Management wants to yield as little as possible while getting things done

through workers.

ii. Co-operative / Integrative Bargaining : This type of bargaining often takes the form of joint problemsolving, in which management & union come together and try to

resolve a problem to the benefit of both side.

iii. Productivity Bargaining : In this method workers wages and benefits are linked to productivity. A standard productivity index is finalized through negotiations

initially.
If workers are able to exceed the standard productivity norms they will get substantial benefits.

iv. Composite Bargaining :

In this method labor bargains for wages as usual but goes a step further demanding equity in matters relating to work norms, employment levels , etc. Through Composite Bargaining unions are able to prevent the

dilution of their powers and ensure justice to workers by

putting certain limits on the freedom of employers. v. Intra-organizational Bargaining :

It generally aims at resolving internal conflicts.

IMPORTANCE OF COLLECTIVE BARGAINING

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 managements freedom for arbitrary action against

the employees.

 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.

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. Importance to society Collective bargaining leads to industrial peace in the country It provides a method or the regulation of the conditions of employment of those who are directly concerned about them.

 It results in establishment of a harmonious industrial climate which supports which helps the pace of a nations 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.

PRE-REQUISIES OF A SUCCESSFUL COLLECTIVE BARGAINIGN

Strong , Independent and well organized unions.
Recognition of the union as bargaining agents. Willingness to adopt a Give-and-Take approach . Favourable political climate. Mutual trust and good faith

 Absence of unfair labour practices A problem solving approach rather than a fire-fighting approach

The success of CB is directly linked with the strength of the

parties. The strength of the parties depend on the power to strike or declare lock-outs, financial position and Market situation and other imperatives

NEED OF COLLECTIVE BARGAINING

Providing Platform for management and employees : Because of CB any outcome of the negotiation is perceived as mutually beneficial to each other and has better acceptability among them. Regulating the Terms & Conditions of Employment : It is a process for regulating the terms & conditions of

employment in which employees feel a part of decisionmaking process.

 Developing Better Understanding between Employees and Management : Because of development of better understanding between Employees and Management , CB may be used to adopt a more flexible approach towards employment conditions in

dynamic environment.
Speedy Implementation of Decisions : CB provides opportunity for speedy implementation of decisions regarding terms of employment as both the parties are involved in decision making process.

FACTORS OBSTRUCTING COLLECTIVE BARGAINING

i. Multiplicity of unions :

There is a problem of multiplicity of unions in most of the

industrial establishments.

No union enjoys the support of the majority of workers in the plant.

ii.

Non-recognition : There is a lack of definite procedure to determine which union is to be recognized to serve as a bargaining agent on behalf of the

workers.

iii. Political Interference in Trade Unions :

There has been a very close association between the trade unions and political parties.

As a result, trade union movement has not encouraged collective

bargaining.

iv.

Defective Laws :

The law provides easy access to adjudication.

Under the industrial dispute Act , the parties to the dispute may request the government to refer the matter to adjudication which

government agrees.
thus, faith in bargaining process is reduced.

COLLECTIVE BARGAINING IN INDIA

Collective Bargaining in India grew at par with the growth of Trade Unionism. CB arrangements for the first time were made at Ahmedabad

Cotton Textile industry. The main purpose of the arrangements

was regulations of management and labor relationship. Only after Independence there was considerable growth in Collective Bargaining.

CAUSES OF LIMITED SUCCESS OF COLLECTIVE BARGAINING IN INDIA

i. Problems with Unions : CB mainly depends on the strength of unions. Weak trade unions cannot initiate strong arguments during

negotiations.
ii. not many strong unions in India. Problems from Government. The Government has not been making any strong efforts for the development of collective bargaining.

iii. Political Interference :

Interference of political leaders in all aspects of union matters

has increased over the years.

Almost all unions are associating themselves with some political party or other.

iv. Legal problems.

Now that adjudication is easily accessible, the collective

bargaining process is losing its importance.

v.

Management Attitude : In India, management have a negative attitude towards unions. They do not appreciate their workers joining unions.

SUGGESTION FOR BETTER FUNCTIONING OF COLLECTIVE BARGAINING

Union should be made strong by creating awareness among
workers.

Interference of Political leaders should be avoided. The

unions should separate themselves from politics. Government should make efforts for the growth of collective bargaining. adjudication should be used only as a last resort.

 Management should develop a positive attitude towards unions.

A fact-finding approach and a willingness to use new tools

should be adopted for the solution of industrial problems. When there are several units of company , there should be a delegation of authority to the local management.

CONCLUSION
Collective Bargaining is, therefore, not only an instrument of settling wages and benefits but of ordering workplace relation as well. It is a dynamic concept, and the various types of collective bargaining have been successfully used by both labour and management to respond effectively to the changing demands

of workplace functioning and market pressures.

THANK YOU