Collective Bargaining

Collective Bargaining
Collective Bargaining is a process in which the representatives of a

labour organization & the representatives of business organization meet and attempt to negotiate a contract or agreement, which specifies the nature of employee-employer union relationship.

Process involving discussions and negotiations collective group 'bargaining' proposals and counter proposals to reconcile their conflicting interests is a flexible approach

Collective Bargaining
Commonality of interest as a basis for bargaining:
Bargaining would not take place if there was no common interest

to bargaining Parties work together to produce goods and services Together they work for the long term future of the of the company Both parties recognise each others right to exist

Collective Bargaining
Sources of conflict
Most important over: wages and salaries Management has to see to shareholder profits and

workers want more money Productivity needs may force the firm to operate flexible work practices and the unions might resist this Companies might want to dismiss inefficient workers and the union would resist this, demanding job security

Collective Bargaining
Employees might demand shorter working hours,

longer vacation leave and more time off for training Employees might insist on stricter health and safety controls which would be expensive for the company Employers demand loyalty to the firm whereas employees see it as the individual right to change jobs when the opportunity arises

Types Of Bargaining
Conjunctive/Distributive

Bargaining - zero-sum game; win lose

Co-operative /Integrative

Bargaining - win win.

Levels At Which Collective Bargaining Is Undertaken

Enterprise Or Plant Level

Industry-Cum-Region wide Agreements

Sectoral Collective Bargaining At National Level

1. National Level Agreement Bargaining between one or more employers/companies/corporations or one or more employers association on one side and one or more unions established at national ,industry,nation,region or plant level on the other.
E.g. Indian Banks Association : negotiate long term

settlement with bank employees

2. Industry cum region wide Agreements Bargaining between one or more employers/companies/corporations or one or more employers association on one side and one or more unions established at industry,region or plant level on the other.
3. Firm/plant level agreement
With unions established at plant,locality level

Collective Bargaining Process

Prepare (Collecting info, setting objectives, Establishing priorities ,
Assessing other party and its case, noting details)

Negotiate (Willingness of parties to compromise , focus on problem

rather than person)

Propose (The solution) Bargain (Whether or not to implement the solution and to what
extent)

Agreement

Legal Framework of Collective Bargaining

Freedom of Association: Article 19(c)
1. Determination of Collective Bargaining Agent i. Secret Ballot

ii. Check off system iii. Membership verification

 Agreement : Collective agreement is binding on

workers who have signed and not on other unions

Settlement : written agreement between employer

and workers arrived during Conciliation proceeding is applicable to all the present and future workers.
Award : when Agreement and settlement fail.

Award(final determination of industrial dispute ) given by Arbitration and adjudication-binding on parties

 Bipartite agreements which are totally voluntary for the purpose of implementation
Bipartite settlements negotiated and settled primarily by the parties but registered before a conciliator Consent awards-when the parties have a dispute pending before a tribunal, but yet negotiate a contract, which is recorded by the tribunal, the contracts so negotiated acquire legal status

 2. Unorganized Sector :
CB is rare ,low wages, benefits 3. Unfair labor practices i. refusal by the employer to bargain collectively in good faith with
recognized trade union
ii. Refusal by a recognized trade union to bargain collectively in good faith with the employer iii. Workers and trade unions of workers indulging in coercive activities against certification of bargaining representative.

Collective Bargaining Agreement

Written document regarding working

conditions and terms of employment

Legally, a CBA binds only the parties

associated with it.

In India, there are three types of

agreements, namely
voluntary agreements, settlements, and Consent awards.

Procedural ( interpretation and

implementation of agreements &resolving conflicts) agreements or substantive (substance of agreement) agreements

Contents of Collective Bargaining Agreement

The date of commencement of the

agreement Its duration A definition of terms The procedure for settling disputes regarding interpretation, as well as other disputes. The consequences in the event of breaches of the agreement As regards wages, exactly how conversion of employees' wages to the new scales is to be effected.

Conditions For Successful Collective Bargaining

Trade Union Recognition
Knowledge , awareness and skills of workers

Support of Labour Administration

Authorities
Good Faith : transparency
Proper Internal Communication