2. COLLECTIVE BARGAINING
It is a process in which the representatives of the
employer and of the employees meet and negotiate
a contract governing the employer and employee
union relationship
Collective - employer and employee act as a group
rather than as individuals.
Bargaining – method of reaching an agreement
through proposals and counter proposals.
3. Definition
“Collective bargaining refers to a process
by which employers on one hand and
representatives of employees on the other,
attempt to arrive at agreements covering
the condition under which employees will
contribute and be compensated for their
services.”- Jucious
4. TYPES OF ACTIVITIES IN COLLECTIVE
BARGAINING
Integrative
Bargaining
Intra
Organisational
Bargaining
Attitudinal
Structuring
Distributive
Bargaining
5. Four types of activities
O Distributive Bargaining: Negotiating over
the distribution of surplus. Wages, salaries
and bonus are discussed. One party’s
gain is another party’s loss.
O Integrative Bargaining: Negotiating over a
better training or a better performance
appraisal system. Both parties may gain
or at least neither party loses.
6. Contd…….
O Attitudinal Structuring: Involves shaping
and reshaping some attitudes like
friendliness or hostility between labour
and management. Maintains smooth and
harmonious industrial relations.
O Intra-Organisational Bargaining: Achieve
consensus with the workers and
management. Trade unions try to achieve
consensus among the conflicting groups.
7. Objectives of Collective
Bargaining
O Maintain cordial relations between the
employer and the employees.
O Protect the interest of workers.
O Ensure participation of trade union.
O To avoid the need for government
intervention, as collective bargaining is a
voluntary process.
O Promote industrial democracy.
8. Pre Requisites for Collective
Bargaining
O Favorable political climate – Best method
of regulating the employment conditions.
O Freedom of association – Trade union
must be stable and strong enough to
honor the agreement.
O Recognition of union – Employers should
be required by law to give recognition to
representative trade unions.
9. Contd……..
O Willingness to give and take – Both the
parties should bargain in a spirit of
compromise and reciprocity.
O Fair labour practices – Avoid unfair labour
practices and create an atmosphere of
mutual recognition and respect.
O Problem solving attitude – The teams
should have an analytical mind, objective
outlook and cool temper.
10. Contd………
O Continuous dialogues – A dead end
should be avoided and talk should
continue, so that agreement can be
possible.
O Availability of data – The employer must
ensure that all the required records are
readily available.
11. Importance of Collective
Bargaining
O Collective bargaining is a pragmatic and
democratic method of regulating the terms
and conditions of employment.
O It is a voluntary process without any third
party intervention.
O Collective bargaining facilitates better
implementation of decisions due to the
direct involvement of both the parties.
12. Contd……..
O Collective bargaining results in better
understanding between employers and
employees.
O It provides a flexible means for adjusting
the conditions of employment, according
to the changing environment.
O Collective bargaining helps in establishing
a code that defines the rights and
obligations of each party.
14. In this phase, following activities are
carried out :
Selection of negotiation team
This phase involves composition of a
negotiation team.
It consist of the representatives of
the both parties.
They should have adequate
knowledge and skills for the
negotiation.
Identification of problem.
Enough supporting data is kept
ready
PREPARATORY
PHASE:-
15. Decide and appropriate time and
set a proper climate for negotiation.
Maintenance of mutual trust and
understanding.
Involve in active listening, asking
questions, observation and
summarizing decision.
DISCUSSION PHASE:-
16. This phase could be described as
brainstorming‘.
The exchange of messages takes
place and opinion of both the
parties.
Initial opening of statement.
Possible alternative/opinion to
resolve the issue by both parties.
PROPOSAL PHASE:-
17. SETTLEMENT PHASE:-
Settlement phase start with:-
This stage is described as
consisting of effective joint
implementation of the agreement
through shared visions, strategic
planning and negotiated change.
Agreement on common
decision.
BARGAINING PHASE:-
Both the parties will involve in the
following activities:-
Problem solving Proposal
