Collective Bargaining

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Collective bargaining is a process in which the representatives of a labor organization and
representatives of the business organization meet and attempt to negotiate a contract or
an arrangement, which specifies the nature of the employee-employer-union
relationship. Edwin B. Flippo.
Collective bargaining describes the process in which conditions of employment are
determined by agreement between representatives of an organized group of employees
and one or more employers. Dale Yoder.
Collective bargaining refers to negotiations concerning pay and conditions of employment
between the trade unions on the one hand and either an employer or an employers
association on the other. Sydney Webb & Beatrice.
Collective bargaining is the process of negotiation between representatives of workers
and management to determine the conditions of employment.
Encyclopedia of Britannica.

The New

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Collective bargaining is one kind of industrial democracy and industrial government. In
this process, the management and the union representatives discuss on different issues
regarding employment, job conditions etc. this process has some features as stated
below:-

Collective bargaining is a group process, wherein one group representing the

employers and other representing the employees.

Collective bargaining is an organizational or team process or effort, where

the representatives of both parties are engaged in collective discussion on the
terms of employment.

It is a process in sense that it consists of a number of steps. The starting

point is the presentation of the charter of demands and the last stage is the
reaching of an agreement.

It is a continuous process, because it starts before signing the contract and

ends at the perfect implementation of the contract.

It is a decision-making process, because through collective bargaining, the

management takes decisions regarding labor and workers.

Negotiations form an important aspect of the process of collective bargaining,

i.e. there is considerable scope for discussion, compromise, or mutual give
and take in the collective bargaining deliberations rather than confrontation.
Mohammad Nazmi Newaz. Management Counsellor. BIM. Cell: 01715 366 717. email: nnewaz@gmail.com

Collective Bargaining: Concepts, Features,Types, Objectives, Pre-requisite, Theories, Problems.

Collective Bargaining

Collective bargaining is a bipartite process. The employers and the employees

are the only parties involved in the bargaining process.

It is flexible and dynamic. It adjusts with the changing conditions through

mutual give and take.

Collective bargaining is the best way to resolve industrial disputes.

Collective bargaining is the implication of industrial democracy. It focuses
not only on issues regarding employment, wages etc. but also on the practice
of democracy.

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Collective bargaining can be categorized into

Traditional Collective Bargaining,

Integrative Collective Bargaining.
TTrraaddiittiioonnaall CCoolllleeccttiivvee BBaarrggaaiinniinngg
Collective bargaining, which is followed in resolving industrial disputes, is known
as traditional collective bargaining. In this case, the representatives of the both
parties sign contracts regarding wages; terms of employment & appointment;
dismiss, suspension, & promotion of workers etc. through discussion.
IInntteeggrraattiivvee CCoolllleeccttiivvee BBaarrggaaiinniinngg
In this collective bargaining, one party helps the other, and mutual belief and
understanding are it prerequisites. The participation of the both parties in the
decision-making process is ensured.

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The basic objective of collective bargaining is to preserve the interest of the employers
or management and the unions or workers & employees. Without this, we find several
more objectives of collective bargaining as those are grouped from two different
viewpoints.
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m TThhee M
Maannaaggeem
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To ensure the existence of the industry.

To maintain continuous development of the industry.

To maintain strong and effective control over the industry.

To maintain a stable, regal, and harmonious relationship between the
workers and the management.

To fulfill personal goals and objectives.

Mohammad Nazmi Newaz. Management Counsellor. BIM. Cell: 01715 366 717. email: nnewaz@gmail.com

Collective Bargaining: Concepts, Features,Types, Objectives, Pre-requisite, Theories, Problems.

Collective Bargaining

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m TThhee UUnniioonnss oorr w
woorrkkeerrss VViieew
wppooiinntt

To ensure the existence of the trade union and to increase the strength
of it.

To preserve the economic welfare, financial benefits, promotions,

appointments, security etc. of the members.

To maintain control over the activities of the industry.

To fulfill personal goals and objectives.

To participate in the managements decision-making process.

To cooperate in implementing different principles of the industry.

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There are some prerequisites, which must be satisfied due to fruitful collective
bargaining. These prerequisites can be viewed from two different viewpoints.
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wppooiinnttss
Woorrkkeerrss VViieew

There should be only one and strong trade union in the industry.

Trade unions should be free from external political influences.

Destructive small unions should be run away from the industry.

Should realize the responsibilities of the workers in personal and national
development.

The industrial union members should take the positions of external

political leaders.
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Maannaaggeem
meenntt VViieew
wppooiinnttss

The managers should be humanistic and sympathetic to solve the labor

problems.

Management has to develop one trade union that really works for the
workers.

Workers participation in the management should be encouraged.

Political leaders are to be discouraged in trade unions.

Managers should respect the union leaders.

Industrial disputes should be resolved as soon as possible.

The government should implement acceptable rules and regulation to
develop the employers and workers relationship.
Mohammad Nazmi Newaz. Management Counsellor. BIM. Cell: 01715 366 717. email: nnewaz@gmail.com

Collective Bargaining: Concepts, Features,Types, Objectives, Pre-requisite, Theories, Problems.

Collective Bargaining

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There should be a balance of power of the both parties.

The workers must have right to form or join trade unions in a perfect
democratic environment.

Both parties should respect the contracts.

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Collective bargaining is a very important tool in resolving industrial disputes and for
establishing harmonious industrial relations. There is no scientific guideline for collective
bargaining process. But the following steps are generally followed for an effective
collective bargaining:-

TTHHEE PPRREE--NNEEGGOOTTIIAATTIIOONN PPHHAASSEE
 Identifying Possible Disputes.
 Ensuring The Bargaining Environment.
 Constructive Attitude.

TTHHEE SSEELLEECCTTIIOONN OOFF NNEEGGOOTTIIAATTOORRSS
 Positive Mentality.
 Respect Others Opinions.
 Well-defined Objectives.

TTHHEE SSTTRRAATTEEGGYY FFOORR BBAARRGGAAIINNIINNGG
 Analyze or Prepare Claims.
 Assess Bargaining Power.

TTHHEE TTAACCTTIICCSS OOFF BBAARRGGAAIINNIINNGG
 Total Rejection.
 Rejection of Some and Offer To Consider Some Others.
 While Agreeing To Consider Union Demand, Management Puts
Forth Counter Demands of Its Own.

TTHHEE CCOONNTTRRAACCTT
 Agreed Settlement.
 Settlement Published, implemented, and monitored.
Mohammad Nazmi Newaz. Management Counsellor. BIM. Cell: 01715 366 717. email: nnewaz@gmail.com

Collective Bargaining: Concepts, Features,Types, Objectives, Pre-requisite, Theories, Problems.

Collective Bargaining

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Collective bargaining is am important tactic in industrial democracy. In this era,

collective bargaining is very popular in resolving industrial disputes in industrial
environment. In capitalism society, collective bargaining plays a very crucial role to
balance industrial relations and its development through preserving the interests of the
employers and the workers. So, there is no doubt about the importance of collective
bargaining. Some important contributions of this well famous tactic are stated bellow:-

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MAAIINNTTAAIINN EEM
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ORRKKEERR RREELLAATTIIO
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Harmonious relationship is essential for the establishment of permanent
industrial peace.

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MIINNIIM
MIIZZEE IINNDDU
USSTTRRIIAALL DDIISSPPU
UTTEESS
It minimizes industrial disputes through discussion.

AASSSSIISSTT IINN IINNCCRREEAASSIINNGG PPRROODDUUCCTTIIOONN
When disputes are resolved through discussion, workers become closer to
management. They become more responsible.

FFAAVVOORRAABBLLEE W
WO
ORRKKIINNGG CCO
ONNDDIITTIIO
ONN
Working condition improves through collective bargaining.

BBEETTTTEERR TTHHAANN CCOONNCCIILLIIAATTIIOONN IINN CCOOUURRTT
When disputes are resolved through discussion, workers become closer to
management. For this reason, workers become more obedient.

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MAANNAAG
GEEM
MEENNTT AAU
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OCCRRAACCYY
As the management has to satisfy and answer the union, so management
cannot do what it wants.

EESSTTAABBLLIISSHH IINNDDUUSSTTRRIIAALL DDEEM
MO
OCCRRAACCYY
Through collective bargaining, management is bound to discuss with the union,
and so, workers can express their opinions.

SSOOCCIIOO--EECCOONNOOM
MIICC DDEEVVEELLO
OPPM
MEENNTT
Collective bargaining reduces damages due to industrial disputes, and so, it
contributes in socio-economic development.

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OVVIINNGG SSO
OCCIIAALL SSTTAATTU
USS
When representatives of the workers discuss about the labor problem with
management, their social status improves.

AASSSSIISSTT TTOO BBEE RREESSPPOONNSSIIBBLLEE
Collective bargaining forces both parties to take responsibilities.

AARRRRAANNGGIINNGG W
WEELLFFAARREE SSYYSSTTEEM
MSS
Workers can arrange more welfare systems through discussion with
management.
Mohammad Nazmi Newaz. Management Counsellor. BIM. Cell: 01715 366 717. email: nnewaz@gmail.com

Collective Bargaining: Concepts, Features,Types, Objectives, Pre-requisite, Theories, Problems.

Collective Bargaining

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There are several theories of collective bargaining. Some important theories are
discussed bellow :-

MARKETING THEORY
According to this theory, collective bargaining is the contract of
selling labor. In this process, it is determined that under what
conditions, the workers will work and the employers will appoint
them. Here, the workers are very much weak, n comparing with
their employers. So, in this case, collective bargaining helps the
workers to increase their bargaining power.

GOVERNMENTAL THEORY
According to this theory, collective bargaining is considered as
constitutional procedure in case of industrial matters. In this case,
collective bargaining is a political relation that assists in producing
laws regarding daily activities of the industries.

MANAGERIAL THEORY
According to this theory, collective bargaining is procedure of
business administration. It depends on the relationships of the
schedules. Both parties participate in management due to their
mutual interests.
In preliminary, collective bargaining was the contract of selling of labor. Then it became
governmental theory due to industrial development. Finally, it turns to the managerial
theory, because of trade unions participation in management.

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There are three levels of collective bargaining:-

Plant Level

Industry Level

National Level.

Mohammad Nazmi Newaz. Management Counsellor. BIM. Cell: 01715 366 717. email: nnewaz@gmail.com

Collective Bargaining: Concepts, Features,Types, Objectives, Pre-requisite, Theories, Problems.

Collective Bargaining

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The central point of conflict between management and workers is the collective
bargaining process. In Bangladesh, there are so many problems that are creating
continuous obstacles to the collective bargaining process. Some problems of collective
bargaining in Bangladesh are stated bellow:-

Reluctance of the State in Ensuring Proper Environment.

Absence of Harmonious Relationship between Management and Unions.

Weak Financial Base of Industries.

Less Productivity.

Undemocratic Environment.

International Pressure.

Weakness in Union Leadership.

Wrong Conception.

Difference in Personality.

Lack of Clear Knowledge of Laws.

Political Influence.

Influence of Locality.

Mohammad Nazmi Newaz. Management Counsellor. BIM. Cell: 01715 366 717. email: nnewaz@gmail.com

Collective Bargaining: Concepts, Features,Types, Objectives, Pre-requisite, Theories, Problems.