1

OF
INDUSTRIAL RELATIONS AND LABOUR LAW

ON
Collective Bargaining Process in India A Critical Analysis Under the guidance of Mr. U.S.Wahie A Project Report Submitted in partial fulfillment of the requirements for the award of the degree of

Master of Business Administration (Industry Integrated) TO RAI BISINESS SCHOOL, NEW DELHI BY Mukesh Kumar Enrollment No: - PGPPE\08A\169 MBA-4th II

CERTIFICATE
This is to certify to that Project at Collective Bargaining Process in India A Critical Analysis Submitted in partial Fulfillment of the requirement for the award of the degree of

Master of Business Administration (Industry Integrated) TO RAI BISINESS SCHOOL, NEW DELHI
Is a record the bonafide trading carried out by Mukesh Kumar Under my supervision & guidance and that no part of this report has beer. Submitted for the award of my other degree/ Diploma or similar titles or prizes.

FACULTY GUIDE:

Name: Mr. U.S.Wahie

Signature

ACKNOWLEDGEMENT

I would like to acknowledge and thank from the deepest portion of my heart to all the people who were help me to complete this Project. To start with I would like to thank my institute, Rai Business School for providing me this opportunity. I would like to thank my mentor here Mr. U.S.Wahie who gave me his valuable inputs so that I could start my interns from the right direction. Last but not the least; I would like to thank my parents and teachers for supporting me to achieve this level.

I would like to thank all those people who have given their precious time for this Project.

Mukesh Kumar Enrollment No: PGPPE\08A\169 MBA-4th II

DECLARATION

I hereby declare that project conducted at Collective Bargaining Process in India A Critical Analysis Under the guidance of Mr. U.S.Wahie Submitted in Partial fulfillment of the requirements for the degree of

MASTER OF BUSINESS ADMINISTRATION (Industry Integrated)

TO
RAI BISINESS SCHOOL, NEW DELHI
Is my original work and the same has not been Submitted for the award of any other Degree/ Diploma or other similar titles or prizes.

Place: New Delhi Date:

Mukesh Kumar Enrollment No: - PGPPE\08A\169

COLLECTIVE BARGAINING IN INDIA

INTRODUCTION: The conflict between the management and the employee is inherent in an industrial society. One argues for more investment and profits while the other argues for better standard of living. These two conflicting interests can be adjusted temporarily through the principle of "give and take"The principle of give and take has been infused in the principle of collective bargaining. The phrase "collective bargaining" was coined by British labor reformers Sidney and Beatrice Webb of Great Britain which was the home of collective bargaining in the 1890s The idea of collective bargaining emerged as a result of industrial conflict and growth of trade union movement and was first given currency in the United States by Samuel Crompers. In India the first collective bargaining agreement was conducted in 1920 at the instance of Mahatma Gandhi to regulate labour management relation between a group of employers and their workers in the textile industry in Ahmadabad. Advocates of collective bargaining in the early decades of the twentieth century thought it essential for three reasons. First and foremost, a system of peaceful and routine bargaining would eliminate industrial strife and violence. Second, collective bargaining stood for "industrial democracy," and finally, collective bargaining promised to make capitalism work. In any industrial establishment the friction between employer and the workmen is inevitable. There are demands by the workmen and if those demands are resisted by the employer, industrial dispute arises resulting in industrial tension and disturbing the peace and harmony in the industry. Collective Bargaining is one of the methods wherein the employer and the employees can settle their disputes. There was always a need of a legislation which could ensure industrial justice pre-empt the industrial tensions and provide the mechanics of dispute resolution. When Industrial Disputes Act, 1947 was passed in India, it was passed to provide machinery and form for the investigation of industrial disputes and for the settlement thereof and for the purposes analogous and incidental thereto. As is evident from the Act itself that it is piece of legislation which mainly provides for investigation and settlement of Industrial disputes. In the words of Justice Desai the emergence of the concept of welfare state implies an end to exploitation of workmen and as a corollary to that collective bargaining came into its own and lest the conflicting interests of the workmen and the employer disturb the industrial peace and harmony, a machinery for adjustment of such conflicting interests became the need of the time. The Act therefore was enacted to provide machinery and Forum for adjustment of such conflicting and seemingly irreconcilable interests without disturbing the peace and harmony in the industry assuring the industrial growth which was the prerequisite of for a welfare state.

6 Collective bargaining is one of the methods wherein the employer and the employees can settle their disputes. This method of settling disputes was adopted with the emergence and stabilization of the trade union Government. Before the adoption of the collective bargaining the labour was at a great disadvantage in obtaining reasonable terms for contract of service from its employer. With the development of the trade unions in the country and the collective bargaining becoming the rule it was equally found by the employers that instead of dealing with individual workmen it is convenient and necessary to deal with the representatives of the workmen not only for the making or modification contracts but also in the matter of taking disciplinary action against the workmen and regarding other disputes. So, collective bargaining has come to stay having regard to modern conditions of the society where capital and labour have organized themselves into groups for the purpose of fighting and settling their disputes. RESEARCH METHODOLOGY: Aims and objective: The aim of this project is to analyze the process of Collective Bargaining and the objective has been to understand the impact of Collective Bargaining in India. Scope and limitation: The researcher has limited the scope of the project paper to the concept of collective bargaining and its impact in India. Method of analysis: The researcher has endeavored to use a combination of critical and descriptive styles of writing throughout this project and has cited various cases to critically analyze the theory of collective bargaining. Research questions: Following are some the basic questions the researcher has tried to answer in this paper; What is the concept of collective bargaining? Whether strike and lockouts are established means of weapons of collective bargaining? What is the impact of collective bargaining in India? What are the problems related to the collective bargaining process in India? How can collective Bargaining be strengthened as a mode of settling industrial disputes? Sources of data etc. The main sources have been Statutes, books, articles on Collective Bargaining, obtained from the library of NALSAR, Hyderabad and from the library of NLSIU, Bangalore. Besides these, the researcher has also done extensive research on the internet and referred to various websites and e-articles related to the Project topic.

7 DEFENITIONS OF COLLECTIVE BARGANING: There is no precise definition of Collective bargaining. In fact keeping in view the change in the society with its fast changing social norms the scope and content of collective also varies from country to country. Nevertheless, Collective bargaining has been defined by different experts in different ways. It is treated as a method by which problem of wages and conditions of employment are resolved peacefully and voluntarily between labour and management. This chapter deals with the various definitions of collective bargaining which will be helpful in understanding the concept of collective bargaining, its ambit and scope as has been coined by various writers. According to K. Alexander Collective bargaining is a process of bargaining between the employers and their workers by which they settle their disputes among themselves relating to employment or non-employment or terms of employment or conditions of labour of the workmen, on the strength of the sanctions available to each side. Occasionally such bargaining results in amicable settlement arrived at voluntarily and peaceful between the parties. But quite often the workers and the employers have to apply sanctions by resorting to the weapons of strikes and lock-outs to pressurize one another which makes both the sides aware of the strength of one another and that finally forces each to arrive at a settlement in the mutual interests. It is thus the strength of the parties which determines the issues rather than the wordy duals which are largely put on for show as any element of strength in one party is by the same token an element of weakness in another. Convention 154 of International Labour Organization (ILO) under Article 2 says: For the purpose of this Convention the term collective bargaining extends to all negotiations which take place between an employer, a group of employers or one or more employers' organizations, on the one hand, and one or more workers' organizations, on the other, for determining working conditions and terms of employment; and/or regulating relations between employers and workers; and/or regulating relations between employers or their organizations and a workers' organization ILO has defined collective bargaining as, negotiation about working conditions and terms of employment between an employer and a group of employees or one or more employees organizations with a view to reaching an agreement wherein the terms serve as a code of defining the rights and obligations of each party in their employment/industrial relations with one another. This definition however confines the term collective bargaining as a means of improving conditions of employment. But in fact, collective bargaining serves something more. Perlman aptly stated,

8 "Collective bargaining is not just a means of raising wages and improving conditions of employment. Nor is it merely democratic government in industry. It is above all technique. Collective bargaining as a technique of the rise of a new class is quite different, from the desire to displace or "abolish" the "old ruling class", to gain equal rights as a class, to acquire an exclusive jurisdiction in that sphere where the most immediate interests, both material and spiritual, are determined. And a shared jurisdiction with the older class or classes in all other spheres." The best justification for collective bargaining is that it is a system based on bipartite agreements, as such superior to any agreement involving third party intervention in matters which essentially concern employers and workers. ANALYSIS OF THE CONCEPT OF COLLECTIVE BARGANING Collective bargaining is concerned with the relations between employers acting through management and organized labour. It is concerned not only with the negotiation of a formal labour agreement but also with the day-to-day dealings between management and the union. Collective bargaining is a voluntary process under which the representatives of both employers and labour enter into an agreement. The process does not stop as soon as a bargain is reached at between the employer and the trade union. It is a continuous process because the contract is only the beginning of collective bargaining. Bargaining requires an efficient and permanent arrangement for negotiations. No temporary or one-time arrangements can make the bargaining process successful. Features of Collective Bargaining The features of collective bargaining are as under: It is a group process, wherein one group, representing the employers, and the other, representing the employees, sit together to negotiate terms of employment; 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 collective bargaining; Collective bargaining is a formalized process by which employers and independent trade unions negotiate terms and conditions of employment and the ways in which certain employment-related issues are to be regulated at national, organizational and workplace levels; Collective bargaining is a process in the sense that it consists of a number of steps. It begins with the presentation of the charter of demands and ends with reaching an agreement, which would serve as the basic law governing labor management relations over a period of time in an enterprise. Moreover, it is flexible process and not fixed or static. Mutual trust and understanding serve as the byproducts of harmonious relations between the two parties;

9 It a bipartite process. This means there are always two parties involved in the process of collective bargaining. The negotiations generally take place between the employees and the management. It is a form of participation; Collective bargaining is a complementary process i.e. each party needs something that the other party has; labor can increase productivity and management can pay better for their efforts; Collective bargaining tends to improve the relations between workers and the union on the one hand and the employer on the other; Collective Bargaining is continuous process. It enables industrial democracy to be effective. It uses cooperation and consensus for settling disputes rather than conflict and confrontation; Collective bargaining takes into account day to day changes, policies, potentialities, capacities and interests; It is a political activity frequently undertaken by professional negotiators.

Significance of Collective Bargaining:

In an Industrial Establishment to solve the problems arising at the plant or industry level the need of the collective bargaining is eagerly felt. Through negotiations the solution to the common problems can be directly found out between the management and workers and here the collective bargaining plays significant role and its scope is very great. In so far the determination of terms and conditions of employment are concerned, one important consequence of collective bargaining has been that it has enabled trade unions to participate in the decision making process regarding hours of work, wages, working conditions etc. Earlier the employer used to decide these issues unilaterally, but now they have become subjects of bilateral negotiations with the advent of collective bargaining. Thus an element of industrial democracy has been introduced by collective bargaining in the field of industrial and labour management. Collective bargaining is really useful from the stand point of management, trade unions and workers. Among workers it develops a sense of responsibility and self respect if it works well and thus contributes to a great extent to employees morale and productivity. It opens up channels of communication between top and bottom of an undertaking which is difficult otherwise. Further the managements freedom of action is restricted because the establishment loses its unilateral discretion regarding bargainable issues even when managements security is intact and thereby learns a new code of behavior by conceiving of the union as a method of dealing with the employees not an obstacle to such dealing. The significance of collective bargaining from the national stand point is that it helps in creating peaceful industrial climate if properly conducted, thereby increases the pace of the countrys efforts towards social and economic development. Collective bargaining as an instrument of industrial peace has no parallel. It extends the democratic principle from the political to the industrial field and is an important aspect so far as the labour and management relations are concerned.

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Functions of Collective Bargaining:

The functions of the collective bargaining are as under: 1. Adjustment and balance of power between the management and union when they are in conflict with each other. This function of the system of collective bargaining is one of the methods of effecting social change. 2. When two parties are in a state of continuous conflict, it helps in bringing about compromise, truce or agreement for establishing peace between the parties. Industrial truce results when two parties to a dispute arrive at a compromise or agreement without resorting to strike or lock-out. Such truce may be stable or temporary. It depends upon the parties as to what extent one party is willing to sacrifice and the other party is willing to accept the demands, or terms. Both the parties are morally bound to implement the agreement once it is signed. 3. For establishing industrial jurisprudence it analyses the rights and duties of conflicting parties. 4. It also adjusts labour management disputes apart from performing functions like negotiation, administration and enforcement of agreements by which union management relationship is governed.

Subject-matter of Collective Bargaining:

Collective bargaining has two pronged concerns: 1. Chalking out a broad contract of employment relationship between employers and workers, and 2. The administration of the contract. In fact, it has been recognised as a method of determining the wage rates and other terms and conditions of employment and of regulating the relations between the management and organized labour. Collective bargaining includes provisions with respect to hiring, lay-offs, promotions, transfers, work scheduling, work assignment, wages, welfare programmes, retirement benefits, discipline, etc.

Pre-requisites for collective bargaining:

Effective negotiations and enforcement requires a systematic preparation of the base or ground for bargaining which involves the following steps: 1. Recognition of the Bargaining Agent: The management should give recognition to the trade union for participating in the collective bargaining process. In case there is more than one union, selection could be done through verification of membership by a government agency giving representation to all the major unions through joint consultations. Thus, the bargaining agent of the workers should be properly identified before initiating any action.

11 2. Deciding the Level of Bargaining: Whether the dealings are confined to enterprise level, industry level, regional or national level should be decided as the contents, scope and enforcement agencies differ in each case. 3. Determining the Scope and Coverage of Bargaining: It would be better to have a clear understanding of what are the issues to be covered under bargaining. Many a time, bargaining is restricted to wage and working conditions related issues but it would be advantageous for both the management and union to cover as many issues as possible to prevent further friction and disputes. Therefore, all the important and interrelated issues are to be taken for consideration. 4. Spirit of Give and Take: When there is a spirit of give and take between the management and union, collective bargaining can be an effective technique of settling industrial disputes. 5. Good Faith and Mutual Agreement: The parties to collective bargaining should act in good faith and do the things on the basis of mutual agreement as there is no legal sanction behind the terms and conditions agreed upon by the parties.

Importance of Collective Bargaining:

Collective bargaining is an important method of regulating relations between employers and employees. It involves negotiation, administration and enforcement of the written contracts between the employees and the employers. It also includes the process of resolving labourmanagement conflicts. Healthy collective bargaining generates a spirit of self-confidence and self-reliance among the workers. It is based on a give and take policy on both sides. Collective bargaining leads to increased goodwill and understanding between labour and management. This in turn helps to create peaceful and comfortable atmosphere in industrial relations.

Importance to employees:
Collective bargaining develops a sense of self respect and responsibility among the employees It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group Collective bargaining increases the morale and productivity of employees; It restricts managements freedom for arbitrary action against the employees. Moreover, unilateral actions by the employer are also discouraged; Effective collective bargaining machinery strengthens the trade unions movement; 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 of grievances. It provides a flexible means for the adjustment of wages and employment conditions to economic and

12 technological changes in the industry, as a result of which the chances for conflicts are reduced; It helps in securing a prompt and fair settlement of grievances. 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 for conflicts are reduced.

Importance to employers:
It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers. Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management. Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making. Collective bargaining plays a vital role in settling and preventing industrial dispute

Importance to society:
Collective bargaining leads to industrial peace in the country; It results in establishment of a harmonious industrial climate 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 of workers is constantly being checked; It provides a method or the regulation of the conditions of employment of those who are directly concerned about them.

Principles of Collective Bargaining:

As mentioned before that the collective bargaining has succeeded in introducing industrial democracy in industrial and labour managements. Industrial democracy implies that the majority union should have the right to sole representation i.e. the right to speak and act for all workers and to enter into agreements with the employer. There are certain principles which have to be followed by both the management and workers for collective bargaining. These principles are as follows: 1. There should be a realization on the part of both unions and managements that for taking wiser an more expedient decisions, collective bargaining is a proper method. 2. An opportunity should be provided to trade union leaders for putting their complaints, demands, needs, etc. before the managements and the management should explain to them the circumstances and make efforts to redress the grievances/complaints of the workers.

13 3. The presence of genuine spirit of mutual trust, goodwill and bargaining should be there on the part of both the parties; 4. Competence for bargaining with mutual respect and implementation of the agreement arrive at should be possessed by both the parties. 5. The parties to collective bargaining should be honest and the agreement should be conducted by these honest, competent and reasonable leaders; 6. Keeping in view the changing circumstances, it is desirable that the management should change their policies and should keep in view the dignity of the workers. Appropriate labour policy should be adopted by the management and this policy to be followed by all employees. Necessary precautions must be taken. 7. If there are more than one union the management should enter into negotiation with union having majority representation. 8. It is equally desirable on the part of the union to raise reasonable demands. They should not put up such demands as are beyond the paying capacity of the establishment or may be against the national policies.

Scope of Collective Bargaining:

The growth of collective bargaining is associated with the recognition of trade unionism. With the growth of trade unions and industrialization the scope of collective bargaining is expanding. Initially collective bargaining was used for determining hours of work, wages and terms of employment, but now within its purview are included the issues like leave with pay, regulation of forced leave, pension, seniority promotions, sickness and maternity benefits, etc. Since in the field of bargaining collective action is now common, collective bargaining has assumed an institutional form. In the words of C.W. Randle: The subject matter of collective bargaining had broadened until it has virtually eliminated the field of the management prerogatives. The area pattern of bargaining has moved from simple style plant bargaining to region-wise and finally to dynamic nature of the scope of collective bargaining. At the same time, they show how important negotiation has become as an institution. And the future holds promise of an even greater role for collective.

Advantages and Disadvantages of Collective Bargaining:

Advantages of Collective Bargaining: According to National Commission Report on labour collective bargaining has been preferred over compulsory adjudication system for several reasons: (a) It is a system based on bipartite agreements, and as such, superior to any arrangement involving third party intervention in matters which essentially concern employees and workers;

14 (b) It is quick and efficient method of settlement of industrial disputes; and (c) It is democratic method of settlement of industrial disputes;

Disadvantages of Collective Bargaining:

Two vital defects in collective bargaining have been pointed out by Willcox. These defects are: (a) There are situations in which a serious strike and prolonged strike simply cannot be tolerated. (b) The second great flaw in collective bargaining as a solvent for labour disputes is the lack of representation of the public interest at the bargaining table. Whether prices can be raised without strangling and ability to sell goods or services, unions and companies are in a position to agree on wage increase that will cause higher prices, then the consumer must shoulder the full burden of their agreement. COLLECTIVE BARGAINING PROCESS The collective bargaining process begins when the majority of workers of an organization vote to be represented by a specific union. The National Labor Relations Board (see Labor Unions) then certifies the union. At this point, the management of the organization must recognize the union as the collective bargaining agent for all the employees of that organization. Once this part of the process is completed, collective bargaining can begin. Bargaining always takes place between labor and management, but negotiations can include more than one group of workers and more than one employer. Single-plant, single-employer agreements are the most common. However, if an employer has more than one plant or work site, multiplant, single-employer agreements can be bargained. Several different union groups representing the workers of the same employer can use coalition bargaining. Industry wide bargaining involves one national union bargaining with several employers of a specific industry. Many different negotiation styles can be used when union and labor representatives sit down at the bargaining table. The two basic modes of bargaining are traditional bargaining and partnership bargaining, though there are many variations of each style. The traditional style of bargaining has been used since collective bargaining began between management and the early labor unions. It is an adversarial style of negotiating, putting one side

15 against the other with little or no understanding of, or education about, the other on the part of either party. Each side places its demands and proposals on the table, and the other side responds to them with counterproposals. The process is negative and involves a struggle of give-and-take on most issues. Even with its negative connotations, however, the traditional style of negotiating is still used effectively in bargaining many union contracts. The partnership style of bargaining is the more modern approach to negotiations. It strives for mutual understanding and common education on the part of both labor and management, and it focuses on goals and concerns common to both parties. Because of its emphasis on each side's being aware of the issues concerning the other side, partnership-style bargaining is also known as interest-based bargaining. In this process, labor and management each list and explain their needs, and the ensuing discussion revolves around ways to meet those needs that will be not only acceptable but also beneficial to both parties. This style of bargaining is very positive and imparts a much more congenial atmosphere to the negotiating process. Many modern unionmanagement contracts are bargained very successfully using the partnership style. A blending of the traditional and partnership styles is widely used in labor-management negotiations. The combination approach is used for many reasons, including the fact that many union and management leaders are more familiar with the traditional style. However, with today's more participatory relationship between labor and management in the workplace, the partnership style is becoming more accepted and is being used more frequently. The negotiating process may also include both styles of bargaining because of the variety of issues being negotiated. The partnership style may be used to negotiate certain issues, while the traditional style may be invoked when bargaining other terms.

Collective Bargaining Issues:

Labor unions were formed to help workers achieve common goals in the areas of wages, hours, working conditions, and job security. These issues still are the focus of the collective bargaining process, though some new concepts have become the subjects of negotiations. The Settlement Process:

16 Union contracts are usually bargained to remain in effect for two to three years but may cover longer or shorter periods of time. The process of negotiating a union contract, however, may take an extended period of time. Once the management and union members of the negotiating team come to agreement on the terms of the contract, the union members must accept or reject the agreement by a majority vote. If the agreement is accepted, the contract is ratified and becomes a legally binding agreement remaining in effect for the specified period of time. If the union membership rejects the terms of the agreement, the negotiating teams from labor and management return to the bargaining table and continue to negotiate. This cycle can be repeated several times. If no agreement can be reached between the two teams, negotiations are said to have "broken down," and several options become available. Mediation is usually the first alternative when negotiations are at a stalemate. The two parties agree voluntarily to have an impartial third party listen to the proposals of both sides. It is the mediator's job to get the two sides to agree to a settlement. Once the mediator understands where each side stands, he or she makes recommendations for settling their differences. The mediator merely makes suggestions, gives advice, and tries to get labor and management to compromise on a solution. Agreement is still voluntary at this point. The mediator has no power to force either of the parties to settle the contract, though often labor and management do come to agreement by using mediation. If mediation fails to bring about a settlement, the next step can be arbitration, which can be either compulsory or voluntary. Compulsory arbitration is not often used in labor-management negotiations in the United States. Occasionally, however, the federal government requires union and management to submit to compulsory arbitration. In voluntary arbitration, both sides agree to use the arbitration process and agree that it will be binding. As in mediation, an impartial third party serves in the arbitration process. The arbitrator acts as a judge, listening to both sides and then making a decision on the terms of the settlement, which becomes legally binding on labor and management. Ninety percent of all union contracts use arbitration if the union and management can't come to agreement (Boone and Kurtz, 1999).

Sources of Power:
If the collective bargaining process is not working as a way to settle the differences between labor and management, both sides have weapons they can use to bolster their positions. One of the most effective union tactics is the strike or lockout. While on strike, employees do not report to work and, of course, are not paid. Strikes usually shut down operations, thus pressuring management to give in to the union's demands. Some employees, even though allowed to belong to unions, are not allowed to strike. Federal employees fall into this category. The law also prohibits some state and municipal employees from striking. During a strike, workers often picket at the entrance to their place of employment. This involves marching, carrying signs, and talking to the media about their demands. The right to picket is protected by the U.S. Constitution as long as it does not involve violence or intimidation.

17 Problems sometimes arise during strikes and picketing when management hires replacement workers, called scabs or strikebreakers, who need to cross the picket line in order to do the jobs of the striking workers. The boycott is another union strategy to put pressure on management to give in to the union's demands. During a primary boycott, not only union members but also members of the general public are encouraged to refuse to conduct business with the firm in dispute with the union. Though it is rarely done, management may use the lockout as a tactic to obtain its bargaining objectives. In this situation, management closes down the business, thus keeping union members away from working. This puts pressure on the union to settle the contract so employees can get back to their jobs and receive their wages. Management sometimes uses the injunction as a strategy to put pressure on the union to give in to its demands. An injunction is a court order prohibiting something from being done, such as picketing, or requiring something to be done, such as workers being ordered to return to work.

Grievance Procedures:
Once a collective bargaining agreement is settled and a union contract is signed, it is binding on both the union and management. However, disagreements with contract implementation can arise and violations of the contract terms can occur. In these cases, a grievance, or complaint, can be filed. The differences that must be resolved are usually handled through a step-by-step process that is outlined in the collective bargaining agreement. The grievance procedure begins with a complaint to the worker's immediate supervisor and, if unresolved at that level, moves upward, step by step, to higher levels of management. If no resolution is found at any of these levels, the two parties can agree to have the grievance submitted to an impartial outside arbitrator for a decision binding to the union and management. Collective bargaining is a successful way for workers to reach their goals concerning acceptable wages, hours, and working conditions. It allows workers to bargain as a team to satisfy their needs. Collective bargaining also allows management to negotiate efficiently with workers by bargaining with them as a group instead of each one individually. Though traditional bargaining can be negative and adversarial, it does produce collective bargaining agreements between labor and management. Partnership bargaining can lead to increased understanding and trust between labor and management. It is a positive, cooperative approach to collective bargaining that also culminates in contracts between labor and management.

Levels of Collective Bargaining:

Collective bargaining operates at three levels: 1. National level 2. Sector or industry level

18 3. Company/enterprise level Economy-wide (national) bargaining is a bipartite or tripartite form of negotiation between union confederations, central employer associations and government agencies. It aims at providing a floor for lower-level bargaining on the terms of employment, often taking into account macroeconomic goals Sectoral bargaining, which aims at the standardization of the terms of employment in one industry, includes a range of bargaining patterns. Bargaining may be either broadly or narrowly defined in terms of the industrial activities covered and may be either split up according to territorial subunits or conducted nationally. Company/enterprise level, this bargaining level involves the company and/or establishment. As a supplementary type of bargaining, it emphasizes the point that bargaining levels need not be mutually exclusive.