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Collective Bargaining

Meaning of Collective Bargaining

Collective bargaining is a process of discussion and
negotiation between two parties, one or both of whom
is a group of persons acting in concert.

The resulting bargain is an understanding as to the terms
and conditions under which continuing services is to be
Features of Collective Bargaining
Process in which the terms and conditions of employment
are determined jointly by the employer and workers
The parties to CB include workers who bargain either in
combination or through their trade union on one side and
employer or group or organization of employers on the
other side
CB emanates from employment relationship
Main objective is determination of terms and conditions of
employment through negotiations and process of give-
and-take. If negotiations succeed, there is a 'collective
agreement' else parties may take coercise measures

Features of Collective Bargaining
State has also come to play a notable role in regulating
various aspects of CB viz. determining enforceability of
collective agreements, obligating employer and trade
unions to bargain collectively, etc.
Nature of CB is changeable and dynamic
Main steps include
Presentation in collective manner
Discussions and negotiations on the basis of mutual give-and-take
Signing of formal agreement or arriving at an information understanding
In the event of failure, likely resort to strike or lock out to force the opposite
Importance of Collective Bargaining
Improvement in the Conditions of Workers: Helped in
securing a wide variety of economic benefits for the workers in the
form of higher wages, liberal allowances, fringe benets, economic
security, shorter hours of work, better terms and conditions of
employment, and physical working conditions.
Check on Autocracy in Industry
Conducive to Managerial Efficiency

Importance of Collective Bargaining
Promotion of Lasting Industrial Peace: The employers
and workers are in a better position to understand and appreciate the
problems and difficulties of each other. Collective bargaining enables
the parties to settle their differences or disputes based on facts and
realities of the situation.

Development of industrial relations : Successful
conclusion of collective bargaining and incorporation of the terms in
collective agreements lead to the establishment of rules or standards
to be observed by both the parties. These rules may relate to
numerous subjects concerning terms and conditions of employment
such as wages, allowances, personnel matters, working conditions,
economic security and welfare amenities, and others.
Units and Levels of Collective Bargaining
Bargaining Unit

A group of workers who are accepted by an employer, a group of
employers or by the government as representing the views and
interests of majority of the workers concerned in an establishment or
industry, and is able to enter into collective bargaining proceedings
with the employer or group of employers.

A group of employers accepted by the organized workers or by the
government as an appropriate agency for collective bargaining with
workers in particular establishment, industry or area.
Levels of Collective Bargaining
National-level bargaining : Not possible in India : Large
country, diverse industry patterns. No allowance to
uniformity and acceptability.

Industry-level bargaining : Ahmedabad : Textile labour
association bargaining with mill owners association of
Ahmedabad. Mumbai : Rashtriya Mill Mazdoor Sabha
bargains with mill owners.

Corporate-level bargaining : . It is practiced in most large

Levels of Collective Bargaining

Plant-level bargaining : Most of the private sector
enterprises practice this type of bargaining.

Craft level bargaining : Only in Airlines industry Air
India and Indian Airlines management bargains four
types of agreements one with pilots association, one
with engineers association, one with cabin crew and one
with general staff

Types of Collective Bargaining
Conjuctive bargaining : : Characterized by WE v/s THEY feeling.
Loss of one party is equivalent to gain of the other. Also called zero-
sum bargaining.
Cooperative bargaining : Recessionary situation in industry. No
option but to cooperate. Both parties realize importance of surviving in
difficult times and working and willing to accept cut in wages in return
for job security and higher wages when matter improve.
Productivity bargaining : Aims at improving inefficient working
methods by specifying changes in working practices
Composite bargainining : Unions not only negotiate monetary
aspects but also work norms, employment levels, environmental
hazards, recruitment patterns, etc
Hurdles to collective bargaining in
Voluntariness in recognition of unions
Ineffective procedure for the determination of representative union
Outside leadership in trade unions
Provision of elaborate adjudication machineries
Comprehensive coverage of labour laws
Inadequte unionization
Other factors inadequate education among workmen, unwillingness
on part of many employers to part with their freedom and sit along with
their workers on the bargaining table, inadequate capacity of industry
to pay, etc.