RAI BUSINESS SCHOOL

ASSIGNMENT

Subject: Collective Bargaining and Wage

Payment
Program: PGPPE

Semester: 3

Faculty: Ms. Ruchika Gupta

Section: Regular

Type : Group

Submitted by: Sonika

Tanu Kumari
Bindiya Kumari

Description of the Assignment:

Collective bargaining: concept, historical introduction ,

meaning and purpose.
Concept of Collective Bargaining:-

The prime objective of the industrial relations is to regulate the power of

management and organized labor and to provide a mechanism is
reconcile thereto. It presupposes equal status before law of labor and
management and acts as countervailing force to reduce the inherent in
equality in the collective power of the two parties. in the world of
industry and commerce a process has been evolving in the past century for
the regulation between management and workers of terms and conditions of
service and the establishment of peaceful , orderly relations at the place of
work through mutual settlement of differences and cooperation of all those
engaged in the enterprises. The process is collective bargaining.

Historical Introduction of collective bargaining:-

Initially , individual workers negotiated directly with their employer on

the wages they would receive for the period of service with the growth of
population and rapid industrialization , large number of able body people
entered the labor market . this led to number of changes individual
employers and workers did not find it convenient any more to negotiated
individually on the terms of employment , wages etc. owning to the pressure
of time variance in remuneration for the service rendered and ability to
push for more as a group on the workers part . Employers also find it
more convenient to the deal with a group rather than
individual .this led to the emergence of collective bargaining.

The term ‘collective bargaining ‘ originated in the writings of Sidney and

Beatrice webb, the famous historians of the British labor movement ,
towards the end of the nineteenth century that is in 1891. But it originated
in India during post- First World War period. An instance making the
introduction of the process in the Indian industrial field was the
workers’ demand for an increase in wages in the Ahmedabad Textile
industry towards the end of 1917. This laid down the foundation
for collective bargaining. It has developed to some more extent in
India since Independence. The inspiration of peaceful
settlement of differences between management and labor came
from Gandhi ji. In the past, collective bargaining was necessary in India
because the production methods before industrial revolution
differed so much from those of modern industry. But now men are working
towards new techniques by which agreement, rather than coercion, can
become the core of needed regulation. Now a distinct feature of the
modern industrial era is collective bargaining. it is the technique
for voluntary regulation of the industrial relations. Further with
development of the process of collective bargaining employees
began to assert their collective will. Agreements, based on such
negotiations, were reached on the terms and conditions of
employment, workers organizations tried to substitute collective
bargaining for individual bargaining.

Meaning of collective bargaining:-

The word “collective bargaining “ is made up of two words “collective “

which implies group action through its representives and bargaing
process the process is by representatives and “bargaining” which suggests
negotiation. In other words, the collective bargaining process is, the process
is ‘collective ‘ because issues relating to terms and conditions of
employment are solved by representatives of workers and employees in
groups rather than confirmation. Thus the basic objectives of collective
bargaining is to arrive at an agreement on wages and other conditions
of employment . Further the underlying idea of collective bargaining
is that the employer and worker relations must not be decided unilaterally
or with the intervention of any third party .Collective bargaining is
bipartite nature.

Purpose of collective bargaining:-

(1) To settle disputes/ conflicts relating to wages and working conditions.

(2) To protect the interests of workers through collective action.

(3) To resolve the differences between workers and management through

voluntary negotiations and arrive at a consensus.

(4) To avoid third party intervention and restrict the bipartite

negotiations in matters relating to conditions employment.

THANK YOU

 CB essentially means negotiations between the labour and

management

 CB should just not stop at the negotiations but also go on to be

implemented; otherwise the entire process of CB will be rendered
futile.

 It is mostly the formal sector that benefits out of the CB process.

 The parties have to adopt a flexible attitude throughout the process

of bargaining

 It is based on give and take approach and take or leave approach.

 Once both the parties know what they want, negotiations become
easier and better.

 Obviously all the above mentioned conditions are required

successful for CB but the most essential among them is the “good
faith”

 CB agreement is a written format and it is essential because that

acts as a legal framework and as a guide to their relationships on
certain matters for a specified period of time.

 Collective bargaining is not highly practiced in India, several

factors are responsible for this:
• Multiple unions
• Defective laws
• Mediation by political leaders

 Organisations understand the importance of human resources

hence they take care of the workers well enough so that collective
bargaining is not highly required. It is also because most MNC’s
are setting up their plants in India, because of which compensation
levels have gone up so also the terms of employment has become
favourable in most parts of the country.

 It is necessary to create a win – win situation for both the parties, if

this is not done, the process of CB just acts as a temporary solution.
Also, if CB is used as a temporary solution, it would infact create an
environment of distrust.


 Issue Brief: About the Study and Our
Sample
 Work-Family Flexibility for Middle Class Workers
in Unionized Organizations: Results from a
National Study
 What is Work-Family Flexibility
 Flexibility policies and practices include flexibility to control the
scheduling and hours at work as well as basic safety net
flexibility such as paid personal and family sick leave, extended
leave, the ability to take paid time off from work. Such policies and
practices have become increasingly important as more women have
entered the workforce and more men are part of dual career and
single parent families.
 In this study, which was funded by the Alfred P. Sloan Foundation,
we focus on the access and use of three main types of flexibility:
 Basic Leaves or Time off from work
 Short-term and long-term leaves
 Vacation, personal days, sick days, education leave, family leave
 Flexible Work schedules.
 Flex-time, compressed work weeks, compensatory time, part-time
 Telecommuting, gradual return to work
 Working Time Hours
 Hours per week, full time weekly working hours
 Overtime demands
 Flexibility to shorter hours or part time if desired without losing job
rights