Collective Bargaining Chap 1

8/6/2019 Collective Bargaining Chap 1

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Definition

Webb defined CB as the collective equivalent to individualbargaining , whose primary aim was achieving economic advantage critical viewpoint

Richardson CB takes place when a number of work people enterinto a negotiation as a bargaining unit with an employer or group of

employers with the object of reaching an agreement on theconditions of the employment of the work people.

ILO defines CB as negotiation about working conditions and termsof employment between an employer and a group of employees orone or more employees organizations with a view to reaching anagreement wherein the terms serve as a code of defining the rightsand obligations of each party in their employment/industrial relations

with one another.


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Perlman aptly stated,

"Collective bargaining is not just a means of raisingwages and improving conditions of employment. Nor is itmerely democratic government in industry. It is above alltechnique. Collective bargaining as a technique of therise of a new class is quite different, from the desire todisplace or "abolish" the "old ruling class", to gain equalrights as a class, to acquire an exclusive jurisdiction inthat sphere where the most immediate interests, both

material and spiritual, are determined. And a sharedjurisdiction with the older class or classes in all otherspheres."5


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In the words of John T Dunlop, Collective Bargaining is:

(1) a system which establishes, revises and administers many of therules which govern the workers place of work;

(2) a procedure which determines the quantum of compensationwhich employees should receive and which influences thedistribution of economic ills;

(3) a method of settling disputes during the pendency of agreementand of determining, after its expiry, whether a dispute should be re-opened or whether a strike or a lock-out should be resorted or not.


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Concept

Collective bargaining is a type of negotiation used by employees to work with

their employers.

During a collective bargaining period, workers' representatives approach the

employer and attempt to negotiate a contract which both sides can agree with.

Typical issues covered in a labor contract are hours, wages, benefits, working

conditions, and the rules of the workplace.

Once both sides have reached a contract that they find agreeable, it is signed and

kept in place for a set period of time, most commonly three years.


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The final contract is called a collective bargainingagreement, to reflect the fact that it is the result of acollective bargaining effort.

The parties often refer to the result of negotiation as aCollective Bargaining Agreement(CBA) / as a Collective

Employment Agreement(CEA).


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Features:

It is a collective process.

The representatives of both workers and management participate inbargaining.

It is a continuous process. It establishes regular and stablerelationship between the parties involved. It involves not only thenegotiation of the contract, but also the administration of thecontract.

It is a flexible and dynamic process. The parties have to adopt a

flexible attitude through the process of bargaining.

It is a method of partnership of workers in management


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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 isconsiderable 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- relatedissues 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 withthe presentation of the charter of demands and ends with reaching an agreement, which wouldserve as the basic law governing labor management relations over a period of time in anenterprise. Moreover, it is flexible process and not fixed or static. Mutual trust and understandingserve as the by products of harmonious relations between the two parties;

It a bipartite process. This means there are always two parties involved in the process of collectivebargaining. The negotiations generally take place between the employees and the management. Itis 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


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Collective bargaining is a complementary process i.e. each party needssomething that the other party has; labor can increase productivity andmanagement can pay better for their efforts

Collective bargaining tends to improve the relations between workers andthe union on the one hand and the employer on the other

Collective Bargaining is continuous process. It enables industrial democracyto be effective. It uses cooperation and consensus for settling disputesrather 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


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Importance to society

Collective bargaining leads to industrial peace in thecountry.

It results in establishment of a harmonious industrialclimate which supports, which helps the pace of a

nations efforts towards economic and socialdevelopment since the obstacles to such a developmentcan be reduced considerably.

The discrimination and exploitation of workers isconstantly being checked.

It provides a method or the regulation of the conditionsof employment of those who are directly concernedabout them.


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Importance to employers

It becomes easier for the management to resolve issuesat the bargaining level rather than taking up complaintsof individual workers.

Collective bargaining tends to promote a sense of job

security among employees and thereby tends to reducethe cost of labor turnover to management.

Collective bargaining opens up the channel ofcommunication between the workers and themanagement and increases worker participation indecision making.

Collective bargaining plays a vital role in settling andpreventing industrial disputes.


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Collective bargaining is really useful from the stand point of management,trade unions and workers. Among workers it develops a sense ofresponsibility and self respect if it works well and thus contributes to a greatextent to employees morale and productivity. It opens up channels ofcommunication between top and bottom of an undertaking which is difficultotherwise. Further the managements freedom of action is restricted

because the establishment loses its unilateral discretion regardingbargainable issues even when managements security is intact and therebylearns a new code of behavior by conceiving of the union as a method ofdealing with the employees not an obstacle to such dealing.

The significance of collective bargaining from the national stand point is thatit helps in creating peaceful industrial climate if properly conducted, therebyincreases the pace of the countrys efforts towards social and economicdevelopment. Collective bargaining as an instrument of industrial peace hasno parallel. It extends the democratic principle from the political to theindustrial field and is an important aspect so far as the labour andmanagement relations are concerned.


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Historical View Of CB

Initially restricted to Individual Bargaining

With the entry of able workforce in the job mkt,the concept of collectivism replacedindividualism

CB first introduced by Webb, historians of BritishLabour Movement, towards the end of the 19th

century ie, 1891

In India, it originated during post 1st World War

period Introduced 1st in the Ahmedabad Textile Industry

in 1917 for the demand in inc in wages


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Importance to employees

Collective bargaining develops a sense of self respect andresponsibility among the employees.

It increases the strength of the workforce, thereby, increasing theirbargaining capacity as a group.

Collective bargaining increases the morale and productivity ofemployees.

It restricts managements freedom for arbitrary action against theemployees..

The workers feel motivated as they can approach the management onvarious matters and bargain for higher benefits.

It helps in securing a prompt and fair settlement of grievances.

It provides a flexible means for the adjustment of wages and

employment conditions to economic and technological changes in theindustry, as a result of which the chances for conflicts are reduced.


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Significance of CB

In an Industrial Establishment to solve the problems arising at theplant or industry level the need of the collective bargaining is eagerlyfelt. Through negotiations the solution to the common problems canbe directly found out between the management and workers andhere the collective bargaining plays significant role and its scope isvery great. As far as the determination of terms and conditions ofemployment are concerned, one important consequence ofcollective bargaining has been that it has enabled trade unions toparticipate in the decision making process regarding hours of work,wages, working conditions etc. Earlier the employer used to decidethese issues unilaterally, but now they have become subjects ofbilateral negotiations with the advent of collective bargaining. Thus

an element of industrial democracy has been introduced bycollective bargaining in the field of industrial and labourmanagement.


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Functions of CB

Adjustment and balance of power between the management and union when they arein conflict with each other. This function of the system of collective bargaining is oneof the methods of effecting social change.

When two parties are in a state of continuous conflict, it helps in bringing aboutcompromise, truce or agreement for establishing peace between the parties.Industrial truce results when two parties to a dispute arrive at a compromise oragreement without resorting to strike or lock-out. Such truce may be stable ortemporary. It depends upon the parties as to what extent one party is willing tosacrifice and the other party is willing to accept the demands, or terms. Both theparties are morally bound to implement the agreement once it is signed.

For establishing industrial jurisprudence it analyses the rights and duties of conflictingparties.

It also adjusts labour management disputes apart from performing functions likenegotiation, administration and enforcement of agreements by which unionmanagement relationship is governed.


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Pre - requisites

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 givingrepresentation to all the major unions through joint consultations. Thus, the bargaining agent of theworkers should be properly identified before initiating any action.

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 andenforcement agencies differ in each case.

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 isrestricted to wage and working conditions related issues but it would be advantageous for both themanagement and union to cover as many issues as possible to prevent further friction anddisputes. Therefore, all the important and interrelated issues are to be taken for consideration.

Spirit of Give and Take: When there is a spirit of give and take between the management and

union, collective bargaining can be an effective technique of settling industrial disputes.

Good Faith and Mutual Agreement: The parties to collective bargaining should act in good

faith and do the things on the basis of mutual agreement as there is no legal sanction behind the

terms and conditions agreed upon by the parties


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Principles of CB

There should be a realization on the part of both unions andmanagements that for taking wiser an more expedient decisions,collective bargaining is a proper method.

An opportunity should be provided to trade union leaders for putting

their complaints, demands, needs, etc. before the managementsand the management should explain to them the circumstances andmake efforts to redress the grievances/complaints of the workers.

The presence of genuine spirit of mutual trust, goodwill andbargaining should be there on the part of both the parties;

Competence for bargaining with mutual respect and implementationof the agreement arrive at should be possessed by both the parties.


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The parties to collective bargaining should be honest and the agreementshould be conducted by these honest, competent and reasonable leaders;

Keeping in view the changing circumstances, it is desirable that themanagement should change their policies and should keep in view thedignity of the workers. Appropriate labour policy should be adopted by the

management and this policy to be followed by all employees. Necessaryprecautions must be taken.

If there are more than one union the management should enter intonegotiation with union having majority representation.

It is equally desirable on the part of the union to raise reasonable demands.They should not put up such demands as are beyond the paying capacity ofthe establishment or may be against the national policies.


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Subject matter of collective

bargaining Union recognition and scope of bargaining unit

Management rights

Union security

Strikes and lockouts

Union activities and responsibility Wages

Working hours and working conditions

Job rights and security

Discipline, suspension and discharge Grievance handling and arbitration

Insurance and benefit programs

Health and safety


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Objectives of CB

To settle disputes/conflicts relating to wages andworking conditions

To protect the interest of workers through

collective action To resolve the differences between workers and

management through voluntary negotiations andarrive at consensus

To avoid third party intervention and restrict tobipartite negotiations in matters relating toemployment conditions


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Envt of CB

Technological and physical conditions of theindustrial community

The labour mkt condition in which managementhires labour services and product marketcondition in which goods are sold

The external setting of the parties including therelationship of the mgmt, to other mgmts and ofunion to other unions

The philosophies and ideologies of thecommunity and industry in which the groupsbargain

Collective Bargaining Chap 1

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