Collective Bargaining & Trade Union

8/8/2019 Collective Bargaining & Trade Union

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Collective bargaining & trade

Union


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Introduction & concepts

Collective bargaining is the process whereby

workers organize collectedly and bargain with

the employers regarding the workplace.

In a broadsense,it is coming together of

workers to negotiate their employment.

These approach was used by workers &

employees of the organization with the help

of various types of trade union.


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Collective bargaining allows both workers &

managers to discuss specific terms that can,depending on national law.

Determining the rules that govern their

relationship.

Determine wages.

Deal with other matters of mutual interests.

Such as hiring practice,promotion,job

function, working condition,hours,workdiscipline & work safety etc.


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Definition

Collective bargaining is the term used todescribe a situation in which the essentialconditions of employment are determined bybargaining process undertaken by representativesof a group of workers on the one hand and of oneor more employers on the other. - Dale Yoder.

Collective bargaining is a process in which therepresentatives of a labour organization and the

representatives of business organization meetand attempt to negotiate a contract oragreement, which specifies the nature of employee-employer-union relationship. - Flippo


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The I.L.O. defines collective bargaining:

"As negotiations about working conditions and

terms of employment between an employer, ora group of employers, or one or moreemployers' organizations, on the one hand,and one or more representative workers'

organization on the other with a view toreaching agreement."

This definition confines the term collectivebargaining as a means of improving conditionsof employment. But in fact, collectivebargaining serves something more.


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Who are perspective user of collective

bargaining?

Anyone who has a paid jobs or who

employs other people in paid work.

Employers, Employees and unions

negotiating benefits such as wages,

working condition and related issues.


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Negotiation and Collective Bargaining

Collective bargaining is specifically an

industrial relations mechanism or tool, and is

an aspect of negotiation, applicable to the

employment relationship.

negotiations are relevant to collective

bargaining as well.

However, some differences need to be noted


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Differences between collective bargaining &

negotiation

In collective bargaining the union always has acollective interest since the negotiations arefor the benefit of several employees.

collective bargaining is not for one employer

but for several, collective interests become afeature for both parties to the bargainingprocess. In

negotiations in non-employment situations,collective interests are less, or non-existent,except when states negotiate with each other.


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Governments intervene when necessary incollective bargaining because the negotiations

are of interest to those beyond the partiesthemselves.

In collective bargaining certain essentialconditions need to be satisfied, such as the

existence of the freedom of association and alabour law system. Further, since thebeneficiaries of collective bargaining are in dailycontact with each other, negotiations take placein the background of a continuing relationship

which ultimately motivates the parties toresolve the

specific issues.


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The nature of the relationship between the

parties in collective bargaining distinguishes

the negotiations from normal commercial

negotiations in which the buyer may be in a

stronger position as he could take his

business elsewhere. In the employmentrelationship the employer is, in a sense, a

buyer of services and the employee the

seller, and the latter may have the more

potent sanction in the form of trade union

action.


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Features of Collective Bargaining :

It is a collective process. The representatives of both

workers and management participate in bargaining.

It is a continuous process. It establishes regular and

stable relationship between the parties involved. It

involves not only the negotiation of the contract, but

also the administration of the contract.

It is a flexible and dynamic process. The parties have

to adopt a flexible attitude through the process of

bargaining. It is a method of partnership of workers in

management


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Importance of Collective Bargaining :

Importance to employee:

Collective bargaining develops a sense of selfrespect and responsibility among the employees.

It increases the strength of the workforce,thereby, increasing their bargaining capacity as agroup.

Collective bargaining increases the morale and

productivity of employees. It restricts managements freedom for arbitrary

action against the employees.


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Moreover, unilateral actions by the employerare also discouraged.

Effective collective bargaining machinerystrengthens the trade unions movement.

The workers feel motivated as they canapproach the management on various matters

and bargain for higher benefits. It helps in securing a prompt and fair

settlement of grievances.

It provides a flexible means for the adjustment

of wages and employment conditions toeconomic and technological changes in theindustry, as a result of which the chances forconflicts are reduced.


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Importance to employer:

It becomes easier for the management to

resolve issues at the bargaining level rather thantaking up complaints of individual workers.

Collective bargaining tends to promote a senseof job security among employees and thereby

tends to reduce the cost of labor turnover tomanagement.

Collective bargaining opens up the channel ofcommunication between the workers and themanagement and increases worker participationin decision making.

Collective bargaining plays a vital role in settlingand preventing industrial disputes.


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Importance to society:

Collective bargaining leads to industrial peace in

the country It results in establishment of aharmonious industrial climate which supportswhich helps the pace of a nations effortstowards economic and social development sincethe obstacles to such a development can be

reduced considerably. The discrimination and exploitation of workers is

constantly being checked. It provides a methodor the regulation of the conditions of

employment of those who are directlyconcerned about them.


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Level & Units of collective bargaining

Plant or establishment level: bargaining between one employer/company on the

one side.

One or more unions established at theplant,locality,region,national level, or a group ofworker ,on the other.

Local level: Bargaining between employer & group of wmplyes or

more employers association at one side, One or more unions established at the

plant,locality,region,national level, or a group ofworker ,on the other.


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Regional/Area level:

Bargaining between employer /companies & group

of employees or more employers association at theregion, industry or national level on the one side.

One or more unions established at the

plant,locality,region,national level or industry, on

the other.

Industry Level: Bargaining between one or more employer /companies /

corporations& group of employees or more employers

association at the region, industry or national level on theone side.

One or more unions established at the industry,nation,region

plant level.


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National level:

Bargaining between one or more employer /companies /

corporations& group of employees or more employers

association at the region, industry or national level on the oneside.

One or more unions established at the nation, industry,region

plant level.


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Factors influencing bargaining units &

levels

Structure of trade union organization: Industrial union at all plant level where single union

may bargain for all the workers in the plant.

Level of bargaining is plant and the unit is confined tothe representatives of the employers & workers in theplant.

When union formed at industry level, industry levelbargain may become more frequent and the unit ofbargaining becomes wider.

If craft union at plant or industry levels, the no . Ofbargaining units either at the plant or industry level ismore


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Nature of ownership of industrial enterprises:

Ownership of industrial enterprises is confined to

an employer or company at the local level and

there is preponderance of plant level industrial

unions ,at the level of bargaining will be low an

units simple.

W

hen single employer own larger no. ofestablishment in different areas, then bargaining

take place at each establishment separately


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Nature of industrial relations laws andgovernment policy:

Both the levels & units of collective bargaining are

influenced by the contents of industrial relationslaws and governmental policies.

In many countries these laws regulate theselection of bargaining agent, recognition of

representatives unions, representation ofbargaining units, unfair labour practices,recognition of representative union etc


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Promotion of lasting industrial peace. The employers and workers are in a better position

to understand and appreciate the problems anddifficulties of each other.

Collective bargain enables the parties to settletheir differences or disputes based on facts &realities of the situation.

Conducive to managerial efficiency: There are difficult situations when the

management has to face a hostile trade union,opposed to managerial measures.

Under such situation, collective bargaining

provides an opportunities to the management totake the trade union in confidence and seek itscooperation in tackling the problems.


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Development ofIndustrial rules: Collective agreements lead to the establishment of

rules or standards to be observed by both the parties. Collective agreements are legally enforceable

documents.

These rules may relate to numerous subjectsconcerning the terms & condition of employment such

as wages,allowancea,personnel matters, workingconditions, economic security and welfare amenitiesand others.

Significance for society & economy: Collective bargaining is in developed is in developed

stage ,it has been exercising a potent influence on thegovernmental policies and programmes,socialinstitution, standards of living, distribution of nationalincome and economic and social development.


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Collective agreements

Collective agreements in the country are

contracted at the plant level, but during more

recent years, collective agreements have also

taken place at industry,regional,company andcorporate levels.

The enforcement of the industrial dispute

Act,1947 is the responsibility both of the central& state governments in respect of the industries

or disputes under their respective jurisdiction


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In collective agrrements,state government

take place at the plant or other lower level.

In collective agrrements,central governmentdispute at the industry or national level or

involving two or more states.

Collective bargaining in India may be classified

in the following main categories


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formation of Central federations(AITUC,INTUC

etc)

Formation of industrial committees Policy statement (Five year plan)

Code of discipline

Central wage boards Economic & industrial reforms (policie-

1956,1977,1991 etc..)


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Classification of Collective agreements:

Direct negotiation between parties

Agreements which combine the elements ofvoluntariness and compulsion.

Agreement which acquire legal

status(tribunal/courts) Conclusive arrived at the tripartite forums (ILC &

SLC)

Standing order jointly worked out before

submission to the certifying officer forcertification under the Industrial employment(Standing orders) act ,1946

B.D.singh_ page no.226


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Hurdles to collective bargaining

Voluntariness In recognition of unions

Ineffective procedure for the determination of

representative union

Outside leadership in trade unions

Provision of elaborate adjudication

machineries

B.D.Singh-page no_228-230


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Assignment

Concepts & introduction of collective

bargaining

Features of collective bargaining. Principles of collective bargaining.

Importance of collective bargaining.

Process of collective bargaining

Recent trends in collective bargaining

Documents

Collective Bargaining & Trade Union