Collective bargaining

By Dr.M.Latha Natarajan

Collective bargaining is the technique that has been adopted by the unions and managements to reconcile their conflicting interests.

The negotiations for collective bargaining require joint sessions of the representatives of labour and management.

These help a lot in promoting a better understanding of each other.


It is a group action as opposed to individual action and is initiated through the representatives of workers.

It is flexible and mobile, and not fixed or static. It is two –party process It is continuous process. It is dynamic and not static It is industrial democracy at work Collective bargaining is not competitive process

but is essentially a complementary process “It is an art, an advanced form of human

relations.



FOR THE MANAGEMNT I. The management must develop and consistently

follow a realistic labour policyII. In order to ensure that the trade union feels its

position in the organisation or factory is secureIII.The management should not assume that

employee goodwill.IV.The management should wait for the trade union

to bring employee grievances.V.The management should deal with only one trade

union in the organisation.


FOR THE TRADE UNION In the view of the rights granted to

organised labour. Trade union leaders should not imagine that

their only function is to secure higher wage for their members, and shorter hours of work and better working conditions for them.

Trade union leaders should appreciate the economic implications.

Trade union should resort to strikes only failed to bring about satisfactory results.


Single plant bargaining: Bargaining between management and single trade union.

Multiple plant bargaining : Bargaining may be between a single factory or establishment having several plants and the workers employed in all these plants.

Multiple employer bargaining : Bargaining between all the trade union of workers in the same industry through their federal organisations, and the employers federation.


To decide who or which union is to be recognized as the representative of the workers for bargaining purpose.

To decide what should be the level of bargaining ;and

To decide what should be the scope and coverage of issues under collective bargaining.


There are two stages in collective bargaining:

(A)The negotiation sates; and (B)The stage of contract administration.


At the negotiation stage, involves three steps:

I. Preparation for negotiation:a.The specific proposal of the company ,

including the objectives of the negotiations;b.An appraisal of the cost of implementing

the proposals if they are accepted by two parties; and

c. An approval in principle of demands of the trade union .


II. Negotiation technique or procedure:Negotiation committee be from three to six

membersPROCEDURE FOR NEGOTIATION1.FOR THE UNION MANAGEMENT2.Be friendly in negotiation. Introduce every

body. Relieve the existing tension. Be willing to listen. Give every one an opportunity to state his

position and point of view. Always bear in mind the fact that you have

to do what is right and fair. Both the parties should strive to maintain

an objective approach to a problem or grievance.


Don’t hurry it. Help to define the problem and suggest a

solution. If facts disclose that there is a need for doing

more than just solving the immediate problem, Define each issue clearly and unambiguously. Avoid the insertion of specific regulations. Search for the correct solution at all times. Avoid sharp practices. The terms which are agreed upon should be

put down I writing and the parties should sign the document without any mental reservations.

Both the parties should , at all times, respect the rights of the public.


2. FOR THE MANAGEMENT Make sure that the labour leader it is going

to negotiate with are really the representatives of the workers.

Don’t use lawyers as negotiation unless they have intimate knowledge of industrial relations.

Don’t limit contacts with the union to hot subjects, but consider such matters as are of common interest to both.

III.FOLLOW –UP ACTION :The agreement should be printed and

circulated among all the employees


Once an agreement is signed, both the trade union and the management are required to honour it in letter and spirit.

1.For the union and managementa)Both should make a genuine effort to

establish and strengthen the machinery for collective bargaining and make it function effectively

b)A proper procedure should be adopted for the redressal of grievances.

c)When a conference over the redressal of a grievence reaches an impasse, the grievance should be referred to arbitration.


d) Both parties should see to it that every commitment made by either is scrupulously honoured.

2. For the management: The management should be available for

conferences with workers representatives so that it may

acquire first hand knowledge of the changing attitudes and problems of the employees.

The management should not short-circuit union representatives or undermine the authority of the trade union. The management should always give credit to the trade union for anything worthwhile achieved by it.


The management should always give credit to trade union for anything worthwhile achieved by it.

The management must see to it that foremen supervisors thoroughly conversant.

Many restrictive practices, and what appears to be unreasonable demands on the part of workers and / or the representatives.

The management should see to it that its top executives, and all those who may have anything to do with their implementation.


3.For the Trade Union The trade union should see to its that its

members understand that the terms of the agreement it has reached with the management.

The trade union should assume responsibility and see to it that its members meticulously observe the terms of the agreement.

The union representative should make them selves available for a for conference when ever they are required to do so by the management


Voluntary arbitration to the utmost extend. Voluntary negotiations giri experessed his

views on this point at the Indian labour conference held in 1952.

Collective bargaining was introduced in india for the first time in 1952.

The life insurance corporation (the LIC), fair measures of discussion for the settlements of disputes.


Year No of agreements

Monetary welfare

Issue and health

Personnel

1988 959 225 74 620

1989 961 164 44 733

1990 886 243 104 766

1991 787 205 108 670


Indian trade union over last one decade gradual but definite change.

House rent allowance. Leave travel concession. Educational allowance.
