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Collective Bargaining

Definition

Collective Bargaining is a process in which the


representatives of a labor organization and
representatives of the business organization
meet and attempt to negotiate a contract or an
agreement which specifies the nature of the
employee-employer-union relationship
..Edwin B Flippo

Collective Bargaining

Section 2(52) of the BLA2006 defines CBA as a


Collective Bargaining Agent in relation to an
establishment or group of establishments,
means the trade union or federation of trade
unions which, under Chapter 13 of BLA 2006, is
the agent of worker in the establishment or, as
the case may be, in the group of establishments
in matter of collective bargaining.

Collective Bargaining
Determination of CBA
Section 202 of BLA 2006 stipulates the 2
ways to determine or election of a CBA
which are as follows:
Determination by operation of law:
according to section 202(1) of BLA 2006,
where there is only one registered TU in an
establishment that TU shall be deemed to
be the CBA for such establishment

Collective Bargaining

Determination by the DL in secret ballot:


Section 202 (2) of the labor act lays down that where
there are more TU than one in an establishment, the
following procedure has to be followed:
a. the existing TUs upon selecting election
commissioner from and among them, shall arrange
election for CBA. or
b. Any such TU/ employer can make application to DL
c. The DL shall hold a secret ballot to determine as to
which one of such TUs shall be CBA for the
establishment or group of establishments

Collective Bargaining
Receipt of Application & Contestant in the Secret Ballot:
Section 202(3) of the BLA 2006 lays down that upon receipt of
an application under Section 202(2), the DL shall, by notice in
writing, call upon every registered TU in the establishment to
which the application relates to indicate, within the time
specified in the notice, which shall not be more than 15 days,
whether it desires to be contestant in the secret ballot to be
held.
If no TU informs the DL anything within the time specified, the
TU applying under Section 202(2), shall be declared to be the
CBA for the establishment, provided it has its members not less
than one-third of the total number of workers employed in the
establishment.

Collective Bargaining
Listing
According to Section 202(6) of the BLA 2006,
every employer shall, on being so required by the
DL, send to the DL a list of all workers employed
in the establishment, excluding those whose
period of employment is less than 3 months or
who are casual or badli workers.

Collective Bargaining
Objection against the Listing
According to Section 202(9) of the BLA 2006, the objection if
any, received by the DL within the specified time shall be
disposed of by him after such enquiry as he deems
necessary.
The DL shall make such amendments or alterations in the
list of workers submitted by the employer as may be
required by any decision given by him under sub-section (9).
After amendment of alterations, if any, the DL shall prepare a
list of workers & send copies thereof, after, certifying,
properly, to the employer & each of the contesting TUs at
least 7 days prior to the date fixed for the poll

Collective Bargaining
Voter List
Section 202(12) of the BLA 2006
enunciates that the list of the workers
prepared & certified under sub section
(11) shall be deemed to be the list of
voters, and every worker who appears in
the list shall be entitled to vote in the poll to
determine the CBA

Collective Bargaining
Provide all necessary facilities for the conduct
of the poll
Section 202(13) of the BLA 2006 lays down that
every employer shall, on being so required by
the DL, provide all necessary facilities for the
conduct of the poll but shall not interfere with or
in anyway, influence the voting

Collective Bargaining
Election Management
According to Section 202(15) of the BLA 2006, the DL shall
take all necessary measures to conduct the election for the
determination of CBA such as fixation of date for the poll,
use of ballot boxes, counting the ballots, & declaration of
CBA.
No TU shall be declared to be the CBA for an establishment
unless the number of votes received by it is not less than
one-third of the total number of workers employed in such
establishment

Collective Bargaining
Duration of Elected CBA
According to Section 202(16) of the BLA 2006,
where a TU is declared as CBA under subsection (15)(e), it shall be the CBA for the
establishment for 2 years from the date of such
declaration. In case of group of establishments
the period of CBA shall be 3 years

Collective Bargaining
10% Vote for Registration
According to Section 202(23) of the BLA 2006, if
any TU SHALL GET LESS THAN 10 % VOTE
OF THE CASTING VOTE , the registration of the
TU shall be void

Collective Bargaining
Powers or Jurisdictions of CBA
a)

b)
c)

According to Section 202(24) of the BLA 2006, the CBA


of an establishment shall be entitled to:
Undertake collective bargaining with the employer on
matters connected with non-employment, the terms of
employment or the conditions of work
Represent all or any of the workers in the proceeding
Give notice of, and declare, a strike in accordance with
the provisions of the Chapter 13, BLA 2006

Collective Bargaining
d)

e)
f)

Nominate representatives of workers on any


welfare establishment or provident fund and
on the Board of Trustees of Participation Fund
established under Chapter 15 of BLA 2006
Conduct cases on behalf of any individual or
group workers
Every owner shall allot office room for elected
CBA at his own establishment.

Collective Bargaining
Section 202A

The owner or CBA may, if thinks


necessary, take assistance from expert
person in case of collective bargaining
process.

Collective Bargaining
Collective Bargaining Process:
Collective Bargaining involves the following steps:
1. Preparing for negotiations
2. Identifying bargaining issues
3. Negotiation
4. Reaching the agreement
5. Ratifying the agreement
6. Administration of the agreement

Collective Bargaining

Critical Success Factors(CSFs) of Collective Bargaining:


The bona fide interaction of two parties
The unions understanding that the interest of the workers
are not superior to that of survival and success of the
organization
Managements must accept and support the rights of TUs
The union at the collective bargaining process must truly
represent a majority of workers
The union representatives must be purposeful but
reasonable
Managements must be progressive and enlightened. They
must not exploit disunity among unions to their advantage
Both the parties must be vigilant enough to prevent political
exploitation of conflict for political ends

Collective Bargaining
Nature of Collective Bargaining

It is a group process

It involves negotiation

It is a bipartite exercise involving representatives of unions & employers

The objective of Collective Bargaining is to reach an agreement

The purpose of the process is to improve the working conditions of the


workers while securing the interests of the employers

It is not merely an economic process, it is a socio-economic process that


involves mutual respect, aspirations, & values
It meticulously follows legislation, rules, regulations, conventions &
customs developed by trade unions, managements, corporations , &
government