1Q) Characteristics of collective bargaining

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
demands and ends with reaching an agreement, which would serve
the basic law governing labor management relations over a period
time in an enterprise. Moreover, it is flexible process and not fixed
static. Mutual trust and understanding serve as the byproducts
harmonious relations between the two parties.

of
as
of
or
of

It is 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.

2Q) Types of Collective bargaining

A collective bargaining process generally consists of four types of activities1. Distributive bargaining,
2. Integrative bargaining,
3. Attitudinal restructuring
4. Intra-organizational bargaining

Distributive bargaining:

It involves haggling over the distribution of surplus. Under it, the economic
issues like wages, salaries and bonus are discussed. In distributive
bargaining, one partys gain is another partys loss. This is most commonly
explained in terms of a pie. Disputants can work together to make the pie
bigger, so there is enough for both of them to have as much as they want, or
they can focus on cutting the pie up, trying to get as much as they can for
themselves. In general, distributive bargaining tends to be more competitive.
This type of bargaining is also known as conjunctive bargaining.
Integrative bargaining:

This involves negotiation of an issue on which both the parties may gain, or
at least neither party loses. For example, representatives of employer and
employee sides may bargain over the better training program or a better job
evaluation method. Here, both the parties are trying to make more of
something. In general, it tends to be more cooperative than distributive
bargaining. This type of bargaining is also known as cooperative bargaining.
Attitudinal restructuring

This involves shaping and reshaping some attitudes like trust or distrust,
friendliness or hostility between labor and management. When there is a
backlog of bitterness between both the parties, attitudinal restructuring is
required to maintain smooth and harmonious industrial relations. It develops a
bargaining environment and creates trust and cooperation among the
parties.
Intra-organizational bargaining

It generally aims at resolving internal conflicts. This is a type of maneuvering

to achieve consensus with the workers and management. Even within the

union, there may be differences between groups. For example, skilled

workers may feel that they are neglected or women workers may feel that
their interests are not looked after properly. Within the management also,
there may be differences. Trade unions maneuver to achieve consensus
among the conflicting groups.

3Q) Pre-requisites of collective bargaining

The effective negotiations and enforcement requires a systematic
preparation of the base or ground for bargaining which involves the following
three 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.
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.
4Q) Collective Bargaining In India

COLLECTIVE BARGANING in India has been the subject matter of

industrial adjudication since long and has been defined by our Law Courts.
Karnal Leather Karamchari Sanghatan (Regd.) vs. Respondent:Liberty
Footwear Company (Regd.) and Ors[13], the Court laid down that the Act
(Industrial Disputes Act, 1947) seeks to achieve social justice on the basis of
collective bargaining. The voluntary arbitration is a part of infrastructure of
dispensation of justice in the industrial adjudication. The arbitrator thus falls
within the rainbow of statutory tribunals. When a dispute is referred to
arbitration, it is therefore, necessary that the workers must be made aware
of the dispute as well as the arbitrator whose award ultimately would bind
them. They must know what is referred to arbitration, who is their arbitrator
and what is in store for them. They must have an opportunity to share their

views with each other and if necessary to place the same before the
arbitrator. This is the need for collective bargaining and there cannot be
collective bargaining without involving the workers. The Union only helps the
workers in resolving their disputes with management but ultimately it would
be for the workers to take decision and suggest remedies. It seems to us
therefore, that the arbitration agreement must be published before the
arbitrator considers the merits of the dispute. Non-compliance of this
requirement would be fatal to the arbitral award.
5Q) Factors effecting on collective bargaining
A factor which makes collective bargaining interactions relatively
unique entails the many issues that have to be addressed. Many types of
compensation have to be discussed, including hourly wages, piecework
rates, fringe benefits such as pensions and health care, and similar issues.
What hours will the employees have to work, when will breaks and meal
periods be scheduled? Almost any working condition of interest to employees
might also have to be discussed. The expansive number of issues requires
drawn-out negotiations that may go on for weeks or months, as the parties
try to resolve the different topics. On the other hand, many of the bargaining
subjects allows the parties to trade issues in ways that allow them to expand
the overall pie to be divided and maximize the joint return involved.
Corporations should concede issues union leaders value more for topics
management officials prefer. This permits the negotiating parties to seek
win-win results that satisfy the underlying interests of both sides.
There will always be distributive items that both sides value. These
issues generally entail monetary terms. Even in this area, however, if
negotiators are willing to think outside the box and seek innovative solutions,
they may be able to expand the pie and simultaneously enhance their
respective positions. For example, if profits have been decreasing, a
company may offer workers a bonus instead of a pay increase. The
employees get the benefit of the cash payments, but the base pay rates
remain unchanged. Parties dealing with increasing health costs could agree
to larger deductibles and co-payments instead of higher employee
premiums. Employee health care premiums are a difficult subject for union
officials, since all workers see an immediate reduction in their take-home
pay. On the other hand, increased deductibles and co-payments are more
palatable, since workers are only affected by these considerations when they
become ill. They are so relieved to have health coverage that they have less
difficulty accepting the greater deductibles and co-payments.

One factor that makes collective bargaining encounters different

relates to the political nature of union officials. They are elected leaders who
generally hope to be re-elected. Management officials occasionally forget
this critical factor and embarrass their union counterparts publicly. Political
persons who are embarrassed before their constituents will almost always
attempt to punish those who put them in this position. It thus behaves
management negotiators to work to prevent such circumstances. If they
have bad news for labour representatives, they should share it with them
privately. They may take them outside the bargaining room or contact them
on the telephone. The union leaders understand managerial constraints, and
appreciate being given this information away from the eyes of unit members.
They may then put on a show for their constituents at the bargaining table,
but will ultimately yield to firm demands they believe to be necessary.
Corporate agents should allow them continue this role during the public
sessions, recognizing that it will make it easier for them to give in later.
6Q) Need for trade unions
Trade unions help in accelerated pace of economic development in many
ways as follows:

By
By
By
By

helping in the recruitment and selection of workers.

inculcating discipline among the workforce
enabling settlement of industrial disputes in a rational manner
helping social adjustments. Workers have to adjust themselves to

the new working conditions, the new rules and policies. Workers
coming from different backgrounds may become disorganized,
unsatisfied and frustrated. Unions help them in such adjustment.
Trade unions are a part of society and as such, have to take into
consideration the national integration as well. Some important social
responsibilities of trade unions include:
promoting and maintaining national integration by reducing the
number of industrial disputes
incorporating a sense of corporate social responsibility in workers
achieving industrial peace

7Q) Essentials of a Successful Trade Union

To be successful, a trade union should be an enlightened one and it

should be able to guide and direct the trade union movement
effectively.

It should have a sound foundation so that it is strong enough to

achieve success in the realization of the outlined objectives. The
objectives of a trade union should be properly communicated to all the
members of the union and employees outside the union so that outside
employees within the organization may be attracted towards it.
Preferably, the trade union should be led by rank and file workers.

A trade union should have integrity and honestly in dealing with

financial matters. There should not be any room for misappropriation of
funds. A trade union should use its economic power in a careful and
responsible way. It should be aware of the existing realities in terms of
the opportunities it has to bring about an improvement in the leaving
standards of labour. A trade union should be a democratic agent
between workers and management.

A trade union should not be contented with protecting and improving

wages and conditions of work of their members but should be
concerned with the interest of workers, their emotional disturbances,
their martial conflicts, their personal adjustment problems. The trade
unions should assist in progressively raising the standard of living of
workers

and

promote

their

personality

development

through

educational programs.

Most importantly, trade unions should maintain industrial harmony and

peace, and battle fruitfully with the employers and if necessary with
the State at the bargaining table so that the employers do not
victimize the workers. Trade unions should be pluralist in character and

pragmatic in their approach and should concentrate on the welfare of

the members and society.
8Q) Trade Union Movement in India
The entire period of the growth of trade unionism up till now is conveniently
divided into three periods:
First period 1875-1918
Second period 1918-1947
Third period 1947 till date
The first period 1875-1918

The first period of trade unions in India started from 1875 and lasted
up to First World War. During the period the trade union movement was
essentially humanitarian. Some friendly societies were formed to look
in to the welfare of workers. These unions were sporadic in nature. The
first Indian trade union, Bombay Mill Hands Association was formed in
1890, with an immediate aim of agitation for a revision of first Indian
Factories Act 1881

The Amalgamated Society of Railway Servants of India & Burma

registered under the Indian Companies Act of 1882 was created in
1897.
The Printers Union, Calcutta and Bombay postal union were formed in
1905 and 1907 respectively.
The kamgar hit vardhak shbha was setup in 1909.
Active leaders in this period were S.S.Bengali and N.M.Lokhande who
fought for workers.
Panikkar charcterizes this period as the social welfare period of our
early trade union movement.
Second period 1918-1947
This period actually marked the beginning and growth of organized and
continuous trade unions.

 Madras became the nucleolus of organized the labour activity.

B.P.Vadiya founded the Madras Labour Union 1919.
There was significant spread of trade unionism in 1920.
Trade unions like Ahemdabad textile workers union, N.W Railway
employees union , indian colliery employees union the jamshedpur
labour association ,the bombay port trust employees union, and the
E.B. Railway Indian employees association were formed .
By 1924 there were 1671 trade union in India.
The all India trade union congress was formed in 1920.
The period between 1924 and 1935 is characterized as the period of
left wing trade unionism
Third period 1947 till date
The Trade Union movement today is generally divided on political lines. According to
provisional statistics from the Ministry of Labour, trade unions had a combined membership
of 24,601,589 in 2002. As of 2008, there are 11 Central Trade Union Organizations (CTUO)
recognized by the Ministry of Labour.

There are four important central trade union org. namely AITUC, INTUC
Hind Mazdoor Sabha (HMS), United Trade Union Congress (UTUC).

As of today, there are more than 50,000 registered unions and most of
them are affiliated to one are the other central trade unions.

9Q) Trade union movement in USA

Most unions in America are aligned with one of two larger umbrella organizations: the AFLCIO created in 1955, and the Change to Win Federation which split from the AFL-CIO in 2005. Both
advocate policies and legislation on behalf of workers in the United States and Canada, and take an
active role in politics. The AFL-CIO is especially concerned with global trade issues.
In 2010, the percentage of workers belonging to a union in the United States (or total labor union
"density") was 11.4%, compared to 18.3% in Japan, 27.5% in Canada, and 70% in Finland. Union
membership in the private sector has fallen under 7% levels not seen since 1932. Unions allege
that employer-incited opposition has contributed to this decline in membership. The most prominent
unions are among public sector employees such as teachers and police. Members of unions are
disproportionately older, male and residents of the Northeast, the Midwest, and California. Union
workers average 10-30% higher pay than non-union in America after controlling for individual, job,
and labor market characteristics.

10Q) Trade union movement in UK

Trade unionism in the United Kingdom was a major factor in economic crises during the 1960s and
in particular the 1970s, culminating in the Winter of Discontent of late 1978 and early 1979, when a
significant percentage of the nation's public sector workers went on strike. By this stage, some
12,000,000 workers in the United Kingdom were trade union members. However, the election of
the Conservative Party led by Margaret Thatcher at the general election in May 1979, at the expense
of Labors James Callaghan, saw substantial trade union reform which saw the level of strikes fall.
The level of trade union membership also fell sharply in the 1980s, and continued falling for most of
the 1990s. The long decline of most of the industries in which manual trade unions were strong
e.g. steel, coal, printing, and the docks was one of the causes of this loss of trade union members
In 2011 there were 6,135,126 members in TUC-affiliated unions, down from a peak of 12,172,508 in
1980. Trade union density was 14.1% in the private sector and 56.5% in the public sector