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Collective bargaining

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Collective bargaining

  1. 1. Collective Bargaining Chandan raj Iiebm,Pune
  2. 2. Meaning of Collective Bargaining <ul><li>Collective Bargaining is a system and a technique of resolving an industrial dispute through negotiations between employers and the representatives of employees without any help of an arbitrator. </li></ul><ul><li>Collective bargaining is that arrangement whereby the wages components of remuneration and conditions of employment of workman are settled through a bargain between the employer and the workman collectively whether represented through their union or by some of them on behalf of all of them. </li></ul>
  3. 3. <ul><li>It means bargaining between an employer or group of employers and a bona fide Labour Union. </li></ul><ul><li>Collective bargaining is made of 2 words </li></ul><ul><li>Collective : which implies group action through its representatives </li></ul><ul><li>Bargaining : which suggests negotiating </li></ul><ul><li>Thus it implies, “collective negotiation of a contract between the management’s representatives on one side and those of the workers on the other.” </li></ul>
  4. 4. Definitions <ul><li>Collective bargaining is a mode of fixing the terms of employment by means of bargaining between an organized body of employees and an employer or an association of employers usually acting through organized agents. </li></ul><ul><li> R.F.Hoxie </li></ul><ul><li>The resolution of industrial problems between the representatives of employers and the freely designated representatives of employees acting collectively with a minimum of government dictation. </li></ul><ul><li> Cox </li></ul>
  5. 5. <ul><li>Collective Bargaining is a process in which the representatives of a labour organization and the representatives of the business organization meet and attempt to negotiate a contract or agreement which specifies the nature of the employee-employer union relationship Edwin B.Flippo </li></ul><ul><li>Collective bargaining is a process of discussion and negotiation between two parties, one or both of whom is a group of persons acting in consent. The resulting bargain is an understanding as to the terms and conditions under which a continuing service is to be performed. More specifically, collective bargaining is a procedure by which employers and a group of employees agree upon the conditions of work. Encyclopedia of Social Sciences </li></ul>
  6. 6. Characteristics <ul><li>It is a group action as opposed to individual action and is initiated through the representatives of workers. </li></ul><ul><li>It is flexible and mobile, and not fixed or static. </li></ul><ul><li>It is a two-party process. </li></ul><ul><li>It is a continuous process. </li></ul><ul><li>It is dynamic and not static. </li></ul><ul><li>It is industrial democracy at work. </li></ul><ul><li>Collective bargaining is not a competitive process but is essentially a complementary process. </li></ul><ul><li>It is an art, an advanced form of human relations. </li></ul>
  7. 7. Need of Collective Bargaining <ul><li>It helps in solving the industrial disputes. </li></ul><ul><li>Secure a prompt and fair redressal of grievances. </li></ul><ul><li>Establish uniform conditions of employment with a view to avoid industrial disputes and maintaining stable peace in the industry. </li></ul><ul><li>Helps redress worker grievances promptly and fairly. </li></ul><ul><li>Avoid interruptions in work which follow strikes, go-slow tactics and similar coercive activities. </li></ul><ul><li>Lay down fair rates of wages and norms of working conditions. </li></ul><ul><li>Achieve an efficient operation of the plant and </li></ul><ul><li>Promote the stability and prosperity of the industry. </li></ul>
  8. 8. Importance <ul><li>From the management’s point of view </li></ul><ul><li>1. Collective bargaining helps in reducing labour problems to the minimum and in maintaining cordial relations between labour and management. </li></ul><ul><li>2. Collective bargaining opens up the channel of communication between the workers and management thus increasing worker participation in decision making. </li></ul><ul><li>3. Collective bargaining helps to create a sense of job security among employees. </li></ul><ul><li>4. Collective bargaining makes simpler for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers. </li></ul>
  9. 9. <ul><li>From the Employee’s point of view </li></ul><ul><li>1. Collective Bargaining helps to develop a sense of responsibility and accountability among the employees. </li></ul><ul><li>2. Collective Bargaining increases the morale and productivity of employees. </li></ul><ul><li>3. It helps in securing a prompt and fair settlement of grievances. </li></ul><ul><li>4. Effective Collective Bargaining machinery strengthens and gives value to the trade unions movement. </li></ul><ul><li>5. The discrimination and exploitation of workers, if any, is constantly monitored and addressed. </li></ul>
  10. 10. <ul><li>From the society’s point of view </li></ul><ul><li>Collective bargaining leads to industrial peace in the country which in turn helps to increase the pace of a nation’s efforts towards economic and social development. </li></ul><ul><li>It helps in implementation of labour legislation. </li></ul>
  11. 11. Essential Conditions for Success of Collective Bargaining <ul><li>There must be a change in the attitude of employers and employees. It is an approach which indicates that the two parties are determined to resolve their differences in their respective claims in a peaceful manner. </li></ul><ul><li>The employers and employees should enter upon negotiations on points of difference or on demands with a view to reaching an agreement. </li></ul><ul><li>To ensure that collective bargaining functions properly , unfair labour practices should be avoided and abandoned by both sides. </li></ul><ul><li>When negotiations result in an agreement, the terms of the contract should be put down in writing and embodied in a document . </li></ul>
  12. 12. <ul><li>Collective bargaining should be based on facts and figures . </li></ul><ul><li>Once an agreement is reached, it must be honoured and fairly implemented . </li></ul><ul><li>Both parties need to have an open mind and a positive attitude . They should listen to and try to understand the other persons view point and limitations. </li></ul><ul><li>A provision for arbitration should be incorporated in the agreements, which should become operative when there is any disagreement on the interpretation of its terms and conditions . </li></ul>
  13. 13. Causes for Failure of Collective Bargaining <ul><li>Unfair or corrupt labour practices. </li></ul><ul><li>Non availability of factual data. </li></ul><ul><li>Failure on the part of management to recognize the trade union. </li></ul><ul><li>Politicization of issues. </li></ul><ul><li>Multiplicity of trade unions. </li></ul><ul><li>Unequal strength of parties participating in the collective bargaining process. </li></ul><ul><li>Lack of objectivity in addressing and handling a grievance. </li></ul>
  14. 14. Process of Collective Bargaining <ul><li>Union Claim Management Proposal </li></ul><ul><li>Negotiations </li></ul><ul><li>Third Party Referral </li></ul><ul><li>Collective Bargaining </li></ul>
  15. 15. Process of Collective Bargaining <ul><li>Following steps are involved in the process of Collective Bargaining </li></ul><ul><li>Preparation </li></ul><ul><li>Reason for negotiating </li></ul><ul><li>Union leaders have to be in touch with the rank and file members to get an idea of their views and needs. </li></ul><ul><li>Both the parties must have the comparative data regarding terms of practice and percentage wage increase in other firms </li></ul><ul><li>The management needs to settle internal policy issues, regarding what concessions to make, wages to pay and changes that they are willing to make. </li></ul>
  16. 16. <ul><li>The union team also needs to come together to decide on their strategy and priorities. </li></ul><ul><li>Putting together of a negotiation team. </li></ul><ul><li>The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. </li></ul>
  17. 17. <ul><li>2. Discussion : parties decide the ground rules that will guide the negotiations. The principal negotiator is from the management team and he leads the committee. </li></ul><ul><li>3. Proposal : Chief negotiator then puts forth the initial opening statements and the possible options that exist to resolve them. Both parties then put forward their arguments and counter arguments. </li></ul>
  18. 18. <ul><li>4. Bargain : here the bargaining process starts in this stage what ‘if’ and ‘suppose’ are set forth and the drafting of agreements take place. </li></ul><ul><li>5. Settlement : a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem. This stage consist of effective joint implementation of the agreement through share vision, strategic planning and negotiated change. </li></ul>
  19. 19. <ul><li>The result of Collective Bargaining procedure is called the collective bargaining agreement (CBA). It may be in the form of procedural agreements or substantive agreements. </li></ul><ul><li>Procedural agreements : This includes procedures in respect of individual grievances, disputes and discipline. </li></ul><ul><li>Substantive agreements : deals with issues such as basic pay, overtime premiums, bonus arrangements, holiday entitlements, hours of works, etc. </li></ul>
  20. 20. Alternatives to Collective Bargaining <ul><li>Alternative Dispute Resolution (ADR) is a term for describing the process of resolving disputes in place of litigation. It includes arbitration, mediation, conciliation, expert determination and early neutral evaluation by a third person. </li></ul>