 Collective : group action through its representatives

 Bargaining: negotiating

“collective bargaining is a process of

discussion and negotiation between two
parties, one or both of whom is a group
of persons acting in concern. The
resulting bargain is an understanding as
to the terms and conditions under which
a continuing service is to be performed”
“Negotiation about working conditions and terms
of employment between an employer and a
group of employees or one or more employee,
organization with a view to reaching an
agreement wherein the terms serve as a code of
defining the rights and obligations of each party
in their employment/industrial relations with
one another.”
 CB rose and grew with the trade union movement.

 Roots of CB lie in Great Britain where it

developed in response to the conditions created by
the Industrial Revolution.

 Along with trade unions, the idea of bargaining

collectively gained strength in the early part of the
18th Century.
 Initially, the negotiations were carried out at plant level.

 By early 1900, industry and national level agreements

became quite common.

 The idea spread across to France, Germany, and USA.

 And today, through the process of CB, organizations

have learnt to cope with industrial conflict.
Coined by Sydney and Beatrice Web

There are three concepts of collective bargaining

with different emphasis and stress:
I. Marketing concept
II. Governmental concept
III. Industrial relations or Managerial concept
Unilateral approach
Billateral approach
Tripartite approach
 It is a group action as opposed to individual
action and is initiated through the
representatives of workers: On management
side are its delegates at the bargaining table; on
the side of the workers is their trade union.

 It is flexible and mobile: It has fluidity, and

ample scope for compromise, for a mutual give
and take before the final agreement is reached
 It
is a two party process: It is a mutual give and
take rather than take it or leave it method of
arriving at the settlement of the dispute. As two
parties are involved in it.

 It
is a continuous process: It provides a
mechanism for continuing and organized
relationships between management and trade
union.
 Collectivebargaining is not competitive process
but is essentially a complementary process: Each
party needs something that the other party has,
namely, labor can make a greater productive
effort and management has the capacity to pay for
that effort and to organize and guide it for
achieving the objectives.

 It
is dynamic and not static: It is a new concept,
relatively growing, expanding and changing.
 In India, trade unions gained prominence much
later only after 1900.

 In 1918, Gandhiji - as the leader of the

Ahmedabad textile workers – advocated the
resolution of conflict through CB agreements.

 But the idea gathered interest only after the

Second World War.
 The Government of that time took steps like setting up
of machinery for negotiations, conciliation and
arbitration.

 The trade union movement and also CB agreements

became popular after Indian independence.

 Moving from agreements at the plant level, such

agreements spread to industries such as chemicals,
petroleum, tea, coal, oil and aluminum.

 In ports and docks, banking and insurance, collective

agreements were arrived at, right at the national level.
 Problems with unions.

 Problems from government.

 Legal problems.

 Political interference.

 Attitude of management.
 Change in attitude of both- employer employees.

 Collective bargaining is best conducted at plant

level.

 Negotiations will be successful, based on facts and

figures to support their point of view.

 Unfair labour practices should be avoided and

abandoned by both sides.
 The terms of contract should be put in writing and
documented.

 Once an agreement is reached, it must be

honoured and fairly implemented.

 A provision for arbitration should be

incorporated in the agreement.
 Constructive consultation between trade union and
management is possible only when the bargaining power
is relatively equal.

 One of the principles for establishing and promoting CB

is to give voluntary recognition to trade unions as one of
the contracting parties.It may also have the positive
benefit of improving industrial relations,production and
productivity.
 The willing acceptance by the management to recognize
representative unions.
 Both the parties must have mutual confidence, good faith, and
the desire to make collective bargaining effective.
 Management should not await the union to raise problems but
should make every reasonable effort to prevent them.
 An emphasis upon problem solving with de-emphasis upon
excessive legalism.
 Dispose of the issues in the same meeting and minimize of
the pending of the items
 Unions must realize that union demands must be met
from the income and resources of the organization.
 The process of bargaining must be free from unfair
practices.
 Representatives of the workers must be able to represent
the opinion or demands of majority of the workers.
 The parties should not confine for mere monetary benefits
 The collective agreement signed between the
TISCO and the Tata Workers Union in1956
embodies a provision for greviance
procedures
 The agreement between the Ahmedabad

Millowner’s Association and the Ahmedabad

Textile Labour Association,which were signed
on 27th June 1955,laid down the procedure to
be followed for the grant of bonus and the
voluntary settlement of Industrial disputes
THANK YOU