Collective Bargaining

Collective Bargaining
According to Dale Yoder, Collective bargaining is the term used to describe a situation in which the essential conditions of employment are determined by bargaining process undertaken by representatives of a group of workers on the one hand and of one or more employers on the other. In the words of Flippo, Collective bargaining is a process in which the representatives of a labour organisation and the representatives of business organisation meet and attempt to negotiate a contract or agreement, which specifies the nature of employee-employer-union relationship.
Features of Collective Bargaining
I. It is a collective process. The representatives of both workers and management participate in bargaining. II. It is a continuous process. It establishes regular and stable relationship between the parties involved. It involves not only the negotiation of the contract, but also the administration of the contract. III. It is a flexible and dynamic process. The parties have to adopt a flexible attitude through the process of bargaining. IV. It is a method of partnership of workers in management
Subject Matter of collective bargaining

The Indian Institute of Personnel Management suggested the following subject matter of collective bargaining:
I. Purpose of agreement, its scope, and the definition of important terms II. Rights and responsibilities of the management and of the trade union
III. Wages, bonus, production norms, leave, retirement benefits, and terms and conditions of service
IV. Grievance redressal procedure V. Methods and machinery for the settlement of possible future disputes VI. Termination clause.
Importance of Collective Bargaining

Importance to employees
Collective bargaining develops a sense of self respect and responsibility among the employees. It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group. Collective bargaining increases the morale and productivity of employees. It restricts managements freedom for arbitrary action against the employees. Moreover, unilateral actions by the employer are also discouraged. Effective collective bargaining machinery strengthens the trade unions movement. The workers feel motivated as they can approach the management on various matters and bargain for higher benefits. It helps in securing a prompt and fair settlement of grievances. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced.

Importance to employers
It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers. Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management.
Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making.
Collective bargaining plays a vital role in settling and preventing industrial disputes.

Importance to society

Collective bargaining leads to industrial peace in the country It results in establishment of a harmonious industrial climate which supports which helps the pace of a nations efforts towards economic and social development since the obstacles to such a development can be reduced considerably. The discrimination and exploitation of workers is constantly being checked. It provides a method or the regulation of the conditions of employment of those who are directly concerned about them.
Pre-requisites for collective bargaining:

effective negotiations and enforcement requires a systematic preparation of the base or ground for bargaining which involves the following three steps:
Recognition of the Bargaining Agent. The management should give recognition to the trade union for participating in the collective bargaining process. In case there is more than one union, selection could be done through verification of membership by a government agency giving representation to all the major unions through joint consultations. Thus, the bargaining agent of the workers should be properly identified before initiating any action. Deciding the Level of Bargaining. Whether the dealings are confined to enterprise level, industry level, regional or national level should be decided as the contents, scope and enforcement agencies differ in each case. Determining the Scope and Coverage of Bargaining. It would be better to have a clear understanding of what are the issues to be covered under bargaining. Many a time, bargaining is restricted to wage and working conditions related issues but it would be advantageous for both the management and union to cover as many issues as possible to prevent further friction and disputes. Therefore, all the important and interrelated issues are to be taken for consideration.
Problems of Collective Bargaining
I. Due to the dominance of outsiders in trade unionism in the country, there is multiplicity of unions which are weak and unstable, and do not represent majority of the employees. Moreover, there are inter-union rivalries, which further hinder the process of collective bargaining between the labour and the management. II. Since most of the trade unions are having political affiliations, they continue to be dominated by politicians, who use the unions and their members to meet their political ends. III. There is a lack of definite procedure to determine which union is to be recognised to serve as a bargaining agent on behalf of the workers IV. In India, the law provides an easy access to adjudication. Under the Industrial Disputes Act, the parties to the dispute may request the Government to refer the matter to adjudication and the Government will constitute the adjudication machinery, i.e., labour court or industrial tribunal. Thus, the faith in the collective bargaining process is discouraged.
V. There has been very close association between the trade unions and political parties. As a result, trade union movement has leaned towards political orientations rather than collective bargaining.
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Collective Bargaining

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Collective Bargaining

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Collective Bargaining

Features of Collective Bargaining

Subject Matter of collective bargaining

Importance of Collective Bargaining

Importance of Collective Bargaining

Importance of Collective Bargaining

Pre-requisites for collective bargaining:

Problems of Collective Bargaining

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