COLLECTIVE

BARGAINING
SUBMITTED BY-
KAJAL SOOD- 3700
DEEPIKA KAUSHAL-3696
ANKUSH-3696
WHAT IS COLLECTIVE BARGAINING
Collective bargaining involves discussions and negotiations
between two groups as to the terms and conditions of
employment. It is called ‘collective’ because both the
employer and the employee act as a group rather than as
individuals. It is known as ‘bargaining’ because the method of
reaching an agreement involves proposals and counter
proposals, offers and counter offers and other negotiations.
Thus collective bargaining:
 Is a collective process in which representatives of both the
management and employees participate.
 Is a continuous process which aims at establishing stable
relationships between the parties involved.
 Not only involves the bargaining agreement, but also involves the
implementation of such an agreement.
 Attempts in achieving discipline in the industry is a flexible
approach, as the parties involved have to adopt a flexible attitude
towards negotiations
CHARACTERSTICS
 Collective Process: The representatives of both the management and
the employees participate in it. Both the groups sit together at the
negotiating table and reach at some agreement acceptable to both.
 Flexible and Mobile: It has fluidity. It is flexible not fixed and static.
 Bipartite Process : Collective bargaining is a two party process.
Both the parties—employers and employees—collectively take some
action. There is no intervention of any third party. It is mutual give –
and –take rather than a take-it-or-leave it method of arriving at the
settlement of a dispute.
 Dynamic: Collective bargaining is a dynamic process that go on
changing over a period and grows and expand the way of agreement
the way of implimentation and way of discussion.
 Industrial Democracy: It is based on the principle of
industrial democracy where the labor union represents the
workers in negotiations with the employer or employers. It is a
joint formulation of company policy on all matters affecting the
labor.
 It is an Art: Collective bargaining is an art , an advanced form
of human relations.
 Discipline in Industry: Collective bargaining is an attempt in
achieving and maintaining discipline in the industry.
 Types of Bargaining

1. Conjunctive Bargaining:
In this type of bargaining, the employers and employees try to
maximise their respective gains. Issues like wages, bonus etc. are
negotiated under conjunctive bargaining. The principle “my gain is
your loss and your gain is my loss” is practiced in conjunctive
bargaining.
2. Co-operative Bargaining:
In co-operative bargaining, both parties realise the importance of
surviving in difficult times (like recession) and are willing to
negotiate the terms of employment in a flexible way.
3. Productivity Bargaining:
In this method, worker’s wages and benefits are
linked to productivity. If they are able to exceed the
standard productivity norms, workers will get
substantial benefits. Standard productivity is finalised
through negotiations.
4. Composite Bargaining:
In composite bargaining method, labour bargains for
wages as usual but goes a step further demanding equity
in matters relating to work norms, employment levels,
manning standards etc
Steps in the Collective Bargaining
Process
The collective bargaining process involves five core steps:
 Preparation – Choosing a negotiation team and representatives of both the
union and employer. Both parties should be skilled in negotiation and labor
laws, and both examine available information to determine whether they have a
strong standing for negotiation.
 Discussion – Both parties meet to set ground rules for the collective
bargaining negotiation process.
 Proposal – Both representatives make opening statements, outlining options
and possible solutions to the issue at hand.
 Bargaining – Following proposals, the parties discuss potential compromises,
bargaining to create an agreement that is acceptable to both parties. This
becomes a “draft” agreement, which is not legally binding, but a stepping stone
to coming to a final collective bargaining agreement.
 Final Agreement – Once an agreement is made between the parties, it must
be put in writing, signed by the parties, and put into effect.
 PRINCIPLES
 Collective bargaining process should give due consideration to hear the
problems on both sides. This will develop mutual understanding of a problem
which is more important for arriving at the solutions.
 Both the management and union should analyze the alternatives to arrive at the
best solution.
 There must be mutual respect on both the parties. The management should
respect the unions and the unions should recognize the importance of
management.
 Both the union and management must have good faith and confidence in
discussion and arriving at a solution.
 Collective bargaining required effective leadership on both sides, on the union
side and management side to moderate discussions and create confidence.
 In collective bargaining both the union and management should observe the
laws and regulations in practice in arriving at a solution.
 In all negotiations, the labour should be given due consideration – in wage
fixation, in working conditions, bonus etc.
FUNCTIONS OF COLLECTIVE
BARGAINING
Collective bargaining is a technique of social change, some-times
performing its function smoothly and at other times threatening to
blow up. The performance of its function can be viewed under the
following three headings.
 Collective bargaining acts as a technique of long-run social
change, bringing rearrangements in power hierarchy of competing
groups.
 Collective bargaining serves as peace treaty between two
parties in continual conflict.
 Collective bargaining establishes a system of industrial
jurisprudence, defining the rights and duties of the conflicting
parties.
 Long Term Social Change: Collective bargaining, in its
broader aspects, is not confined solely to economic relations
between employers and employees. Selig Perlman has defined it
as a “technique whereby an inferior social class or group carries
on a never slacking pressure for a bigger share in social
sovereignty as well as for more welfare, security, and liberty for
its individual member. Collective bargaining manifests itself
equally in politics, legislation, court litigation, government
administration, religion education and propaganda. When viewed
as a process of social change, collective bargaining encompasses
more than the direct clash between employers and trade unions.
It refers to the rise in political and social power achieved by
workers and their organization.
 Temporary Truce: Collective bargaining may be viewed as a
struggle between two opposing forces with the outcome
depending on their relative strength. The inherent strength of
each side is its ability to withstand a strike. The compromise,
then, is a temporary truce with neither side being completely
satisfied with the results. Each would like to modify it at the
earliest opportunity. Since the contract is always of limited
duration, each begins immediately to prepare a new list of
demands, including previously unsatisfied demands, and to build
up its bargaining strength in anticipation of the next power
skirmish.
 Industrial Jurisprudence: Collective bargaining creates a
system of industrial jurisprudence. It is a method of introducing
civil rights into industry that is of requiring that management be
conducted by rule rather than by arbitrary decisions. It
establishes rules which define and restrict the traditional
authority exercised by employers over their employees, placing
part of the authority under joint control by union and
management. Finally collective bargaining must never stagnate if
it is to serve its role of adapting labor and management
institutions, and their relative power positions, to the changing
socioeconomic environment.
ADVANTAGES
1. Collective bargaining gives workers a larger voice.

2. Collective bargaining can improve a worker’s quality of life.

3. Collective bargaining creates enforcement consistency.

4. Collective bargaining encourages cooperation.

5. Collective bargaining creates a binding result.

6. Collective bargaining creates relationships.

7. Collective bargaining must represent every member of the unit.

DISADVANTAGES
 1. Collective bargaining comes at a cost.
.
 2. Collective bargaining may require a dues payment.

 3. Collective bargaining requires governance duties.

 4. Collective bargaining may require everyone to be bound by the contract.

.
 5. Collective bargaining is not always a process of fair representation.

 6. Collective bargaining highlights personal differences.

 7. Collective bargaining can change the workplace environment.

 8. Collective bargaining doesn’t guarantee a good deal for either party.

THANK YOU