Collective Bargaining

.a process by which the representatives of labour

organization and the representatives of business organization
meet and attempt to negotiate a contract or agreement which
specifies the nature of the employee-union relationship.
.a process by which employers on the one hand and
representatives of employees on the other, attempt to arrive at
agreements covering the conditions under which employees
will contribute and be compensated for their services.
In depth
CB is a legislative process in the sense that it
formulates terms and condition under which labour
and management may cooperate and work together
over a certain period it is a judicial process as in
every collective agreement there is a provision
regarding the interpretation of the agreement and
how any difference of opinion about the intention or
scope of a particular clause is to be resolved..it is
also an executive process as both management and
union undertake to implement the agreement
signed.




Cont
In other words, it is the process to protect the
interests of the employers and employees to
determine the employment condition ,to fix
the wage and salary and achieve the
objectives of the organization as a whole.
Process ofCB
six major steps are involved in the process of
collective bargaining..It works as follows
Preparation for
negotiation

Identifying
bargaining issues
Reaching the
agreement
Ratifying the
agreement
negotiation
Administration of
the agreement
1
2
3
4
5
6
Cont..
Step 3Negotiation is an art which begins with
each side presenting its initial demands .it goes
on for days until a final agreement is reached.
One of the model proposed by Walton & Mckersie
Basically they distinguish the following four systems of
activity or sub-processes in labour negotiations, each
having its own function:
A) Distributive Bargaining- This is a straight art
haggling over the distribution of the amount.
Cont..
Therefore under this type of bargaining, economic
issues like wages, salaries, bonus etc. are discussed.
B) Integrative bargaining- in this, issues where no party
losses are discussed. Such issues may be a better
training programme ,a better job evaluation system
etc.
C) Attitudinal Structuring- under this the attitude of
both parties are shaped and reshaped. For e.g. trust,
friendliness or hostility between labour and
management are discussed.
D) Intra organizational Bargaining in this bitterness
is sort out within same horizontal level.
Points to be remembered in Negotiation
Process
Composition of the negotiating Team
Ready availability of relevant material
Good beginning
Continuity of talks
Problem Solving attitude
****************
Importance of collective bargaining In
Management
From a Management point of view- The main object of the
org is to get the work done by the employees at minimum
cost and thus earn a high rate of profits. Maximum utilization
of workers is a must for the effective mgt. For this purpose
cooperation is required from the side of the employees and
collective bargaining is a device to get and promote
cooperation. It is regarded as the best remedial measure for
maintain the cordial relationship.
From Labour point of view- Labours has a poor bargaining
power as a result , employer succeed in exploiting the labour.
Through the process of collective bargaining certain
restriction are imposed on the employers, which upholds
them in exploiting the labour class.
Cont..
From trade union point of view- TU are the bargaining
agents for the workers. The main function of the trade
union is to protect the interests of workers through
constructive programmes and CB is one of the devices to
attain that objective through negotiations with the
employers.
From Govt point of view- Govt is also concern
with the process of CB. Govt passes and
implements several labour legislation and desires
it to be implemented in its true sense. if any
persons violates the laws, govt enforces it by
force. CB prevents the govt from using any force
CONT.
because an amicable agreement can be
reached b/w employer and employees for
implementing the legislative provision .Labour
problem shall be minimized through CB and
industrial peace shall be promoted without
any force.
Pre-requisites of CB
Mutual Recognition
Mutual accommodation
Single strong union
Efficient and permanent bargaining machinery
Bargainers must have authority
Political climate should be favorable.

Structure of CB
It includes..
Wage rate, shift or overtime ,method, period and
payment of wage rate,
Allowances ,holiday pay, leave with pay
Hours of work, holidays ,vacation, leave rules etc
Lay-off of workers,
demotion,discharge,promotion,transfer,
Grievance procedures including steps, time
limitations and provision for arbritations.


Cont.
Safety and health facility
Setting up of standards for production, methods and
procedures
Recognition of trade union and its authority
Maintaining discipline ,provision for indiscipline,
Provision for retirement benefits such as pension,
gratuity, Provident fund etc,
Bonus, labour welfare ,social securities measures,
arbitration clause..etc.
*************