Collective Bargaining

Introduction
• Collective bargaining means bargaining
between an employer or group of employers
and Labour Union.

• “An Agreement between a single employer or

an association of employer on the one hand
and Labour Union on the other hand which
regulates the terms and conditions of
employment” by Ludwing Teller
Concept:
1. Technique
2. Individual Bargaining
3. Relation
4. Joint Session

Collective Bargaining-Principle:

Give & Take

Objectives:
1. Harmonies labour relation
2. To Promote Industrial peace
3. Reaching an agreement
The main steps usually involved in collective bargaining
include:
(i) Presentation in a collective manner to the
employer their demands by the employees,
(ii) Discussions and negotiations on the basis of
mutual give-and-take for fulfilling the demands,
(iii) Signing of a formal agreement or arriving at an
informal understanding, when negotiations result
in mutual satisfaction and
(iv) In the event of the failure of negotiations, a likely
resort to strike or lock-out to force the opposite
party to come to terms.
 To sum up collective bargaining enables both the parties to:
• Increase their economic strength for mutual benefit
• Establish uniform conditions of employment with a view to avoid
industrial disputes and maintaining stable peace in the industry;
• Secure a prompt and fair redressal of grievances;
• Avoid interruptions in work which follow strikes, go-slow tactics and
similar coercive activities;
• Lay down fair rates of wages and norms of working conditions;
• Achieve an efficient operation of the plant; and
• Promote the stability and prosperity of the Industry.
 Collective bargaining process
Developing a Bargaining Relationship:
The first step in CB is to develop a regular and
systematic procedure for bargaining. This step
consists of three activities, namely:
• Recognition of the Bargaining Agent
• Level of Bargaining
• Scope and coverage of CB
 Recognition of the Bargaining Agent
In organizations in which there is a single trade union, that
union is generally granted recognition to represent the
workers. But where there is more than one union, any of
these criteria may be used for identifying the
representative union, namely:
– selection of the representative union by secret ballot
– selection through verification of membership by some
government agency
– bargaining with a joint committee of all major unions
– bargaining with a negotiation committee in which different
unions would be represented in proportion to their verified
membership; and
– bargaining with a negotiation committee which consists of
elected representatives of every department of the organization
selected by secret ballot, irrespective of their union affiliations.
 Level of Bargaining

Collective bargaining is possible at practically all

levels, namely,
– at the level of the enterprise,
– at the level of the entire industry in the country or
– level of the industry in a particular region
 Scope and Coverage of Collective Bargaining

• Wages and working conditions

• Work norms
• Incentive payments
• Job security
• Changes in technology
• Work tools, techniques and practices
• Staff transfers and promotions
• Grievances
• Disciplinary matters
• Health and safety
• Insurance and benefits
• Union recognition
• Union activities/responsibilities
• Management rights
 Process of Negotiation during Bargaining

There are two stages in CB

• Negotiation Stage
1. Preparation of Negotiation
2. Negotiation Technique or procedure
3. Follow Up action
• The stage of contract administration
Issues
1.Wages- Rs. 50/day
2.Drinking water
3.Work Hours-12
4.Weekly 6 days working
5.Safety Measures
6.Lunch break- 15 min
7.Overtime pay
8.Discrimination(Promotions)