EMPLOYMENT AND

LABOUR RELATIONS
Collective Bargaining
 Collective Bargaining

OUTLINE
Definition of Collective Bargaining;
Rationale for Collective Bargaining;
Prerequisites for Collective Bargaining;
The right to engage in Collective Bargaining;
Nature and Basis of Collective Bargaining;
Essential Features of Collective Bargaining;
ILO and Collective Bargaining;
Parties to Collective Bargaining
 Collective Bargaining

Introduction
It is a process by which an employer or
employers and a representative of one or
more Trade unions enter into discussion on
matters of employment interests;
Collective Bargaining is the very essence of
Industrial Relations;
It is a representative process where
representatives of capital reach agreements
with representative of labour
 Collective Bargaining

Collective Bargaining has the potential of

reducing conflict through the resolution of
labour disputes;
Collective Bargaining can ensure industrial
democracy, protection of employees rights;
In a nutshell, Collective Bargaining is a
means of regulating relations between
management and employees and for
settling disputes between them (Fumane,
2001).
 Collective Bargaining

Definition
Sydney & Beatrice (1897Process of
accomodation between two institutions which
have both common and conflicting interests
(Harbison, 1960);
Negotiations about working conditions and
terms of employment between an employer, a
group of employers, one or more employers
organizations, on the one hand, and one or
more representative organization of workers,
with a view to reaching agreement (ILO, 1960)
 Collective Bargaining

Tripath in Milulu (2016) define Collective

Bargaining as a process in which
conditions of employment are determined
by agreement between representatives of
the union on the one hand, and those of
the employee, on the other.
It is called collective because both the
employer and employees act as a group
rather than individuals.
 Collective Bargaining

It is called bargaining because the methods

of reaching agreement involve proposals and
counter proposals, offers and counter offers;
Collective Bargaining is resorted to in respects
of interest issues where some new interests
are to be created or existing rights to be
expanded or modified (ibid.).
Process of discussion and negotiation between
two parties, one of whom is a group of persons
acting in concert (Encyclopedia of Social
Sciences, 1951).
 Collective Bargaining

Collective Bargaining takes place in all

negotiations which take place between an
employer, a group of employers, one or
more employers organizations on the one
hand, and one or more workers
organizations on the other, for:
Determining working conditions snd terms
of employment;
Regulating relations btn employers and
workers
 Collective Bargaining

Regulating relations between employer or

their organizations and a workers
organization or workers organizations
(ILO , Convention, 1996).
Collective Bargaining may be voluntary
where neither the employers nor
employees are legally bound to engage in
the same.
It may be compulsory where it is required
by law
 Collective Bargaining
As received from English Labour laws, CB
was voluntary ;
Employees wishing to engage in collective
Bargaining by an unwilling employer, had to
compel him/her through industrial action;
From 1947 CB became compulsory in
Tanzania;
The tradition has continued so in
Employment and Labour Relations Act, No 6
2004.
 Collective Bargaining

Collective Bargaining raises five key issues:

(i) The parties who have the right to engage in
collective bargaining;
(ii) The requirements for Trade Union
recognition;
(iii) The duty that the parties have to bargain
in good faith;
(iv) Their access to information; and
(v) The binding nature of their collective
agreement
 Collective Bargaining

The ELRA provides for all these

issues:
1. The Right
- The rights to engage in collective
bargaining are enjoyed by
employers and their organizations
on the one hand, and Employees
organizations (first level trade
unions, federations and
confederations, on the other;
 Collective Bargaining

- Only in the absence of these organizations can

elected employee representatives concerned
conclude collective agreement (ELRA).
- ELRA 2(1) This section applies to all employees
including those in the in the public service;
- This constitutes a departure from the previous
provision where civil servants were excluded
from forming trade unions by 2 (2) Trade union
Act No 10, 1998.
- This extended to the employees in the services
of the army, police, prisons and National service.
 Collective Bargaining

2.0 Bargaining Process

2.1 Agents and Rights
- First procedural step for CB to take place was
for the parties to recognize each other;
- The ELRA imposes on the employer to recognize
the qualifying Trade Union;
- Section 67 (1) of ELRA provides that a
registered Trade union that represents the
majority of the employees shall be recognized
as exclusive bargaining agent of the
employees of that unit.
 Collective Bargaining

Failure to meet the two qualifications an

employer may decline to recognize a trade
union as an exclusive bargaining agent of any
trade union;
However, recognition is not automatic the
registered trad union is required by s. 67 (3)
and rule 51 (1) of the Code of Good Practice,
to notify the employer in the prescribed Form
Form (CMA F 2), attaching proof of its
representivity and other documents.
 Collective Bargaining

2.2 Bargaining Topics

- It may be on any matter related to labour
as provided for by the law;
- It may involve employment standards,
rights, wages, salaries, benefits, terms
and conditions of employment, hours of
work, leave, allowances, training, dispute
procedure, grievance, disciplinary issues
and termination, among others.
 Collective Bargaining

2.3 Bargaining Levels

- Collective bargaining may take place
at one work place, may involve one
employer, a number of employers or
an employers association;
- Implies that it may take place at any
level as agreed by the parties in the
collective bargaining Rule 49 (7) of
Code of Good Practice.
 Collective Bargaining

2.4 Bargaining Conduct

- CB can only function effectively if conducted
in good faith;
ELRA 67 (1) provides that:
An employer or employers Association shall
bargain in good faith with a registered Trade
Union;
- Similarly, a recognized Trade Union shall
bargain in good faith, with employer or
employers association.
 Collective Bargaining

The principle of good faith requires

that:
Conducting genuine and
constructive negotiations;
Avoiding unjustified delays;
Making an effort to reach agreement;
Complying with concluded
agreements; and
Applying them in good faith
(Rutinwa, 2011).
 Collective Bargaining

Rule 54 (1) of Code of Good Practice describes

bargaining in good faith as implying:
Requiring the parties to explore issues with
open mind and with the intention of reaching
agreement;
Sub rule 54 (2) describes it as respecting the
representatives of the parties, thorough
preparations, consistent representation,
attending meetings timeously, considering
proposals made by each party and giving
reasons if not accepted (op.cit.).
 Collective Bargaining

Parties, may not be compelled to reach

agreement;
By that inference, the party that has no
genuine desire to reach agreement may
constitute bargaining in bad faith;
Examples are provided by rule 54 (3) i.e,
making grossly unreasonable demands,
refusing without good reason, refusing
to disclose information (Rutinwa, 2011).
 Collective Bargaining

3.0 Disclosure of Information;

- No effective bargaining without
sufficient and correct information;
- ELRA imposes on e union employers
the obligation to disclose relevant
information to the trade union;
- S.70 An employer who has recognized
a trafe union shall allow the union to
engage effectively in CB;
 Collective Bargaining

Rule 56 (1) describes relevant

information as reasonably required
information to allow the union to
represent its members.
Further, rule 56 (5) describes
relevant information as issues
related to remuneration, benefits,
condition of service, performance
and labour force issues.
 Collective Bargaining
S 70 (2) exempts employers from the
obligation to disclose information that:
Is legally privileged (e.g. consultation
between lawyer and client);
Employer can not disclose without
contravening a law or order of the court;
Is confidential and if disclosed may cause
substantial harm to an employee or employer;
Is private personal information (medical
report)
 Collective Bargaining
4.0 Collective Agreement
- Defined as written agreement
concluded by a registered trade
union and an employer or a
employers association on any labour
matter
- Under the Industrial Court Act 1967,
a Collective Agreement became once
registred, an award of the industrial
court and was binding on the
 Collective Bargaining
Under section 71 0f the ELRA, a
collective agreement is legally
binding on:
Parties to the agreement;
any member of the parties to the
agreement;
Any employees who are not
members of a union party to the
agreement; if the trade union is
recognized as an exclusive