Collective Bargaining in indian context

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What is

Collective

Bargaining?

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Collective Bargaining

Concept was first given by Sidney and Beatrice Webb and alsoby Gompers in the USA

The ILO Workers Manual defines Collective Bargaining as:

Negotiation about working conditions and terms of employmentbetween an employer, a group of employers or one or more

employers organizations, on the one hand,

and one or more representative workers

organizations on the other with a view to

reaching agreement.

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Salient FeaturesIt is a group process

It contains a number of steps

Negotiations form animportant aspect in the process

It is a bipartite process

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Importance to society Collective bargaining leads to industrialpeace in the country. It results in establishment of aharmonious 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 ofworkers is constantly being checked. It provides a method or the regulation ofthe conditions of employment of those

who are directly concerned about them.

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Importance to employers It becomes easier for the management to resolveissues at the bargaining level rather than taking

up complaints of individual workers.

Collective bargaining tends to promote a senseof job security among employees and therebytends to reduce the cost of labor turnover to

management. Collective bargaining opens up the channel ofcommunication between the workers and themanagement and increases worker participation

in decision making.

Collective bargaining plays a vital role in

preventionindustrial disputes.

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Importance to employees It increases the strength of the workforce, thereby, increasing

their bargaining capacity as a group.

Collective bargaining increases the morale and productivityof employees. It restricts managements freedom for arbitrary action against

the employees.. The workers feel motivated as they can approach the

management on various matters and bargain for higher

benefits.

It helps in securing a prompt and fair settlement ofgrievances.

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 forconflicts are reduced.8/20/2013 8


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Collective Bargaining Process

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Prepare This phase involves composition of a negotiation team.

The negotiation team should consist of representatives ofboth the parties with adequate knowledge and skills fornegotiation.

In this phase both the employers representatives and the

union examine their own situationin order to develop the issues that

they believe will be most important.

Both management and union go

through several intraorganisationalbargains.

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Discuss The parties decide the ground rules

that will guide the negotiations.

An environment of mutual trust and

understanding is also created so that

the collective bargaining agreementwould be reached.

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At the Bargaining table Item by item various demands are taken up, each side

presenting its case to the best of its ability. Some alternatives that initial rounds of clarifications and

explanations can provide are given below:

a) Total rejections of all demands as unreasonable, and

therefore a deadlock.

b) Rejection of some and offer to consider some others.

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c)Management to work out cost and other

implication of demands and restart negotiations.

d) While agreeing to consider union demands,

management puts forth counter demands of itsown.

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Variations of collective bargaining

Intraorga-nisationalBargaining

DistributiveBargaining

AttitudinalStructuring

IntegrativeBargaining

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Levels of Collective Bargaining

Plant Level

Industry Level

National Level

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Prerequisites of Collective Bargaining

Careful thought and selection of negotiation team

is imperative.

It is necessary for the management to recognize

the union and to bargain in more good faith in

unionized situation.

It is necessary to have open minds to listen

appreciate other concerns.

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Trade union should encourage internal union

democracy.

Strikes and lockouts should be restored to in

the ultimate analysis.

There is a need to do homework on the

demands proposed.

Both parties should be able to identify

grievances, safety and hygiene problems on a

routine basis and take appropriate remedialsteps.

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Problems of Collective Bargaining Due to the dominance of outsiders in trade unionism in the country,

there is multiplicity of unions which are weak and unstable, and do notrepresent majority of the employees. Moreover, there are inter-unionrivalries, which further hinder the process of collective bargainingbetween the labor and the management.

Trade unions are having political affiliations, they continue to bedominated by politicians, who use the unions and their members to

meet their political ends.

There is a lack of definite procedure to determine which union is tobe recognized to serve as a bargaining agent on behalf of the workers

There has been very close association between the trade unions and

political parties. As a result, trade union movement has leaned towardspolitical orientations rather than collective bargaining

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Collective Bargaining in indian context