UNIT 3

COLLECTIVE
BARGAINING
 Forms Collective Bargaining
Conjunctive Or Distributive Bargaining
This kind of collective bargaining is concerned with the employee and the employer who negotiate with each other
but for their own gain only. It is zero-sum negotiation in which one party have to suffer loss and the other party will
gain. If the employee is gaining then the employer has to suffer loss. It happens when the employee wants a hike in
the salary/wages and the employer wants to increase the workload and reduce the salary/wages.

Co-Operative Or Integrative Bargaining

In this kind of collective bargaining the employer and the employee both has to agree on a common solution in
similar interest of both the parties. The employee has to work according to the employer and the employer has to put
efforts of making better working conditions and high-end technology for increasing the production.

Productivity Bargaining
This type of collective bargaining is done by the employer to increase the productivity of the organization. The
workers are encouraged to work more for which they will get benefits like incentives or bonus. Workers work very
hard to reach beyond the standard level of productivity to gain the additional benefits in form of bonus. This type of
bargaining is a gain for both the employer and the employee as they both get benefits. Employer gets increase in
productivity and employee get benefit of bonus or incentives.
Composite Bargaining
In this type of collective bargaining the employees are not only concerned with the hike in wages/salary
but also concerned with the working conditions, recruitment of the new employees, training policies of
the organization etc. The employees are concerned about these things to safeguard their interest and
dilution of their powers

.
Concessionary Bargaining
In this type of collective bargaining the employees surrender or give back the previously gained
improvements in pay and conditions in exchange of the job security of the employees. The employees
have to give back the benefits they previously get from the employer to secure their jobs.
Worker's Participation
Methods/Ways of Workers Participation In
Management
1. Participation at the Board level:
2. Participation through ownership:
3 . Participation through complete control:
4. Participation through Staff and Works Councils :
5. Participation through Joint Councils and Committees :
6. Participation through Collective Bargaining :
7. Participation through Suggestion Schemes:
8. Participation through Quality Circles:
9. Empowered Teams:
10.Total Quality Management :
11. Financial Participation:
1. Participation at the Board level:
• This would be the highest form of industrial democracy.
The workers’ representative on the Board can play a useful
role in safeguarding the interests of workers. He or she can
serve as a guide and a control element.
• He or she can prevail upon top management not to take
measures that would be unpopular with the employees.
• He or she can guide the Board members on matters of
investment in employee benefit schemes like housing, and
so forth.
• The Government of India took the initiative and appointed
workers’ representatives on the Board of Hindustan
Antibiotics (Pune), HMT (Bangalore), and even nationalized
banks. The Tatas, DCM, and a few others have adopted this
practice.
2. Participation through ownership:
• This involves making the workers’ shareholders of the
company by inducing them to buy equity shares.
• In many cases, advances and financial assistance in the
form of easy repayment options are extended to
enable employees to buy equity shares. Examples of
this method are available in the manufacturing as well
as the service sector.
• Advantage: Makes the workers committed to the job
and to the organization.
• Drawback: Effect on participation is limited because
ownership and management are two different things.
•
3 . Participation through complete control:
• Workers acquire complete control of the management
through elected boards. The system of self-management in
Yugoslavia is based on this concept. Self-management gives
complete control to workers to manage directly all aspects
of industries through their representatives.
• Advantages:
• Ensures identification of the workers with their
organization.
• Industrial disputes disappear when workers develop loyalty
to the organization.
• Trade unions welcome this type of participation.
• Conclusion: Complete control by workers is not an answer
to the problem of participation because the workers do not
evince interest in management decisions.
 4. Participation through Staff
and Works Councils :
• Staff councils or works councils are bodies on which
the representation is entirely of the employees. There
may be one council for the entire organization or a
hierarchy of councils. The employees of the respective
sections elect the members of the councils. Such
councils play a varied role.
• Their role ranges from seeking information on the
management’s intentions to a full share in decision-
making.
• Such councils have not enjoyed too much of success
because trade union leaders fear the erosion of their
power and prestige if such workers’ bodies were to
prevail.
5. Participation through Joint Councils
and Committees :
• Joint councils are bodies comprising representatives of
employers and employees. This method sees a very loose
form of participation, as these councils are mostly
consultative bodies.
• Work committees are a legal requirement in industrial
establishments employing 100 or more workers. Such
committees discuss a wide range of topics connected to
labour welfare.
• Examples of such committees are welfare
committee, safety committee, etc. Such committees have
not proven to be too effective in promoting industrial
democracy, increasing productivity and reducing labour
unrest.
•
6. Participation through Collective
Bargaining :
• Through the process of CB, management and workers may
reach collective agreement regarding rules for the
formulation and termination of the contract of
employment, as well as conditions of service in an
establishment. Even though these agreements are not
legally binding, they do have some force. For CB to
work, the workers’ and the employers’ representatives
need to bargain in the right spirit. But in practice, while
bargaining, each party tries to take advantage of the other.
This process of CB cannot be called WPM in its strongest
sense as in reality; CB is based on the crude concept of
exercising power for the benefit of one party. WPM, on the
other hand, brings both the parties together and develops
appropriate mutual understanding and brings about a
mature responsible relationship.
 7. Participation through Suggestion
Schemes:
• Employees’ views are invited and reward is given for the best suggestion. With
this scheme, the employees’ interest in the problems of the organization is
aroused and maintained. Progressive managements increasingly use the
suggestion schemes. Suggestions can come

from various levels. The ideas range

changes in inspection
could from
changes, process simplification, paper-work to
procedures reduction
and the like. Out of various suggestions, those
design
accepted could provide marginal to substantial benefits
to the company. The rewards given to the employees
are in line with the benefits derived from the
suggestions.
8. Participation through Quality Circles:

• Concept originated in Japan in the early 1960s and has now spread all over the
world. A QC consists of seven to ten people from the same work area who meet
regularly to define, analyze, and solve quality and related problems in their area.
These circles require a lot of time and commitment on the part of members for
regular meetings, analysis, brainstorming, etc. Most QCs have a definite life cycle –
one to three years. Few circles survive beyond this limit either because they loose
steam or they face simple problems. QCs can be an excellent bridge between
participative and non-participative approaches. For QCs to succeed in the long
run, the management needs to show its commitment by implementing some of
the suggestions of the groups and providing feedback on the disposition of all
suggestions.
• Training in problem-solving techniques is provided to the members. QCs are said
to provide quick, concrete, and impressive results when correctly implemented.
• Advantages:
• Employees become involved in decision-making, acquire communication and
analytical skills and improve efficiency of the work place.
• Organization gets to enjoy higher savings-to-cost ratios.
• Chances of QC members to get promotions are enhanced.
•
 9.Empowered Teams:
• Empowerment occurs when authority and
responsibility are passed on to the employees who
then experience a sense of ownership and control over
their jobs. Employees may feel more responsible, may
take initiative in their work, may get more work
done, and may enjoy the work more.
• Features of empowered or self-directed teams:
• Empowered to share various management and
leadership functions.
• Plan, control and improve their work.
• Often create their schedules and review their
performance as a group.
• May prepare their own budgets and co-ordinate their
work with other departments.
 10. Total Quality Management
• : to the deep commitment, almost obsession, of an
TQM refers
organization to quality. Every step in company’s processes is
subjected to intense and regular scrutiny for ways to improve it.
• Some traditional beliefs are discarded.
• High quality costs more.
• Quality can be improved by inspection.
• Defects cannot be completely eliminated.
• Quality in the job of the QC personnel.
• New principles of TQM are:
• Meet the customer’s requirement on time, the first time, and 100%
of the time.
• Strive to do error-free work.
• Manage by prevention, not correction.
• Measure the cost of quality.
• TQM is called participative because it is a formal programme
involving every employee in the organization; making each one
responsible for improving quality everyday.
 11. Financial
Participation:
• This method involves less consultations or even joint
decisions. Performance of the organization is linked
to the performance of the employee. The logic
behind this is that if an employee has a financial
stake in the organization, he/she is likely to be more
positively motivated and involved.
• Some schemes of financial participation:
• Profit-linked pay
• Profit sharing and Employees’ Stock Option
schemes.
• Pension-fund participation.
END