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CollectiveBargaining

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Q.WhatdoyouunderstandbyCollectiveBargaining?Writedownthebargaining
process.Whatareitsbenefits?
CollectiveBargainingisatermadoptedforthenegotiationprocessbetweenworkers,representbyaUnionsuchasaTrade
Union,andtheiremployer,representedbythemanagement,forissuesrelatedtothetermsandconditionsoftheir
employment.suchaswages,workinghours,benefits,andworkload.Anagreementarrivedatbythisnegotiationprocessis
calledasCollectiveBargainingAgreement(CBA)orCollectiveEmploymentAgreement(CEA).
Practically,aworkerandhisemployerarenotonanequalfootingbecauseofthefinancialpoweroftheemployerandas
such,itisextremelydifficult,ifnotimpossible,forasingleworkertopressurehisemployertoprovideequitablebenefitsforhis
work.Historically,thishasproventobethemaincauseofdissatisfactionamongworkers,resultingindecreasedproductivity,
andpoorconditionofworkers.Theobjectiveofcollectivebargainingistomitigatethedisadvantageofeconomicdisparity
betweentheworkerandtheemployerbybargainingwiththeemployercollectivelyinsteadofindividually.

ApproachestoCollectiveBargaining
1.TraditionalorPositionalorAdversarialorDistributionalorWinLoseBargainingInthistypeofbargainingboththe
parties,i.e.theunionandthemanagement,comeoutwiththeirownagendawithlittleornounderstandingofeachothers
problems.Theprocessmostlyinvolvesagiveandtaketypeofnegotiation.Thisisthemostcommontypeofcollective
bargainingandisusedallovertheworld.
2.PrincipledorMutualGainsorIntegrativeorWinWinBargainingInthistypeofbargainingboththepartiesunderstand
theissuesinvolvedandtheyapproachittosolvetheproblemsjointly.Thus,anequitablesolutionwithoutanyacrimonycan
befound.Thisprocessworkswhenthereisnotmuchdisparitybetweentheeducationlevelofboththeparties,suchasinIT
industry.
TheprincipleofcollectivebargainingisrecognizedbyInternationalLaborOrganization(ILO)aswell.

BargainingProcess
1. TheprocessstartswiththeworkersunitingtoformanassociationintheformofaTradeUnion.
InthecaseofWorkersofBandCCovsLabourCommissioner,AIR1964MaditwasheldthataTradeUnioncan
raiseorsponsoratradedisputeandrepresentonbehalfofitsmembersinlegalproceedingsarisingoutofatrade
dispute.
2. TradeUnionofregisteredandgetsthepowertorepresenttheissuesoftheworkers.Thoughitisnotnecessaryfora
TUtoberegistered.Inthesamecasementionedabove,itwasalsoheldthatanunregisteredTradeUnionthathas
thesupportofthemajorityoftheworkershasabetterclaimtonegotiationthanarecognizedtradeunionthatdoesnot
havemajoritysupport.
3. ThemembersofthetradeunionadoptaresolutiontoauthorizetheTradeUniontorepresentthemandputtheir
issuesacrosstothemanagement.
4. EmployerrecognizestheTradeUnionandgetsreadytodiscusstheissueswiththeTradeUnionrepresentatives.
5. Theunionrepresentativesputtheirlistofdemandstothemanagementandthemanagementdiscussesthosewiththe
representatives.
6. Afteragiveandtakeeitheramutuallyagreeablesolutionisfoundorpressurizingtacticssuchasstrikeorlockoutare
adopted.
7. Ifnosolutionisfound,themattercouldbereferredtoarbitration.Ifthesolutionisfound,itisimplementedandthe
processends.
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BargainingProcess

BenefitsofCollectiveBargaining
BenefitsforWorkers
1. Itprovidesuniformityandequalityinconditionsoflaborforalllaborers.
2. Itensuresprogressofworkersandincreasestheirimportanceandrespect.
3. Itpreventsarbitrarinessbyownersregardingworkingconditions.
4. Itpreservespersonalinterestofworkers.
5. Itpromoteswelfareofworkers.
6. Aworkerdoesnotfeelaloneandhelpless,onthecontrary,hefeelspowerful.
7. Itprovidesacheckonemployersandinspectors.
BenefitsforEmployers
1. Itischeaper,easier,andsaferoption.
2. Itsavestimeanditbenefitsallthepartiesequally.
3. Compromisesreachedbythisprocessarenotonlyapplicabletothepartiesbutalsotothosewhoarenotaparty.
4. Uponsuccessofcollectivebargaining,industrialpeaceprevailsandmutualunderstandingandproductionincreases.
5. Compromisesdonethroughcollectivebargainingarebindingonalltheparties.
BenefitsinGeneral
1. Helpsinsatisfactorysolutionofproblemsandallowsoldcustomsandtraditions.
2. Itreducestensioninpartiesandestablishesatraditionofindustrialpeace.
3. Ithasbeenprovedhelpfulinbringingsocialchange.
4. Uponfailureoftheprocess,nopartyisinsultedorhurt.
5. InthecaseofVirundhachalamvsManagement,LotusLtd,LordRolandsaidthatitendsthearbitrarinessof
inspectorsbypreventingthemfrombecominglegalkings.
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