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8/8/2019 Collective Bargaining & Trade Union
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Collective bargaining & trade
Union
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Introduction & concepts
Collective bargaining is the process whereby
workers organize collectedly and bargain with
the employers regarding the workplace.
In a broadsense,it is coming together of
workers to negotiate their employment.
These approach was used by workers &
employees of the organization with the help
of various types of trade union.
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Collective bargaining allows both workers &
managers to discuss specific terms that can,depending on national law.
Determining the rules that govern their
relationship.
Determine wages.
Deal with other matters of mutual interests.
Such as hiring practice,promotion,job
function, working condition,hours,workdiscipline & work safety etc.
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Definition
Collective bargaining is the term used todescribe a situation in which the essentialconditions of employment are determined bybargaining process undertaken by representativesof a group of workers on the one hand and of oneor more employers on the other. - Dale Yoder.
Collective bargaining is a process in which therepresentatives of a labour organization and the
representatives of business organization meetand attempt to negotiate a contract oragreement, which specifies the nature of employee-employer-union relationship. - Flippo
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The I.L.O. defines collective bargaining:
"As negotiations about working conditions and
terms of employment between an employer, ora group of employers, or one or moreemployers' organizations, on the one hand,and one or more representative workers'
organization on the other with a view toreaching agreement."
This definition confines the term collectivebargaining as a means of improving conditionsof employment. But in fact, collectivebargaining serves something more.
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Who are perspective user of collective
bargaining?
Anyone who has a paid jobs or who
employs other people in paid work.
Employers, Employees and unions
negotiating benefits such as wages,
working condition and related issues.
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Negotiation and Collective Bargaining
Collective bargaining is specifically an
industrial relations mechanism or tool, and is
an aspect of negotiation, applicable to the
employment relationship.
negotiations are relevant to collective
bargaining as well.
However, some differences need to be noted
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Differences between collective bargaining &
negotiation
In collective bargaining the union always has acollective interest since the negotiations arefor the benefit of several employees.
collective bargaining is not for one employer
but for several, collective interests become afeature for both parties to the bargainingprocess. In
negotiations in non-employment situations,collective interests are less, or non-existent,except when states negotiate with each other.
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Governments intervene when necessary incollective bargaining because the negotiations
are of interest to those beyond the partiesthemselves.
In collective bargaining certain essentialconditions need to be satisfied, such as the
existence of the freedom of association and alabour law system. Further, since thebeneficiaries of collective bargaining are in dailycontact with each other, negotiations take placein the background of a continuing relationship
which ultimately motivates the parties toresolve the
specific issues.
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The nature of the relationship between the
parties in collective bargaining distinguishes
the negotiations from normal commercial
negotiations in which the buyer may be in a
stronger position as he could take his
business elsewhere. In the employmentrelationship the employer is, in a sense, a
buyer of services and the employee the
seller, and the latter may have the more
potent sanction in the form of trade union
action.
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Features of Collective Bargaining :
It is a collective process. The representatives of both
workers and management participate in bargaining.
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.
It is a flexible and dynamic process. The parties have
to adopt a flexible attitude through the process of
bargaining. It is a method of partnership of workers in
management
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Importance of Collective Bargaining :
Importance to employee:
Collective bargaining develops a sense of selfrespect and responsibility among the employees.
It increases the strength of the workforce,thereby, increasing their bargaining capacity as agroup.
Collective bargaining increases the morale and
productivity of employees. It restricts managements freedom for arbitrary
action against the employees.
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Moreover, unilateral actions by the employerare also discouraged.
Effective collective bargaining machinerystrengthens the trade unions movement.
The workers feel motivated as they canapproach 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 toeconomic and technological changes in theindustry, as a result of which the chances forconflicts are reduced.
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Importance to employer:
It becomes easier for the management to
resolve issues at the bargaining level rather thantaking up complaints of individual workers.
Collective bargaining tends to promote a senseof job security among employees and thereby
tends to reduce the cost of labor turnover tomanagement.
Collective bargaining opens up the channel ofcommunication between the workers and themanagement and increases worker participationin decision making.
Collective bargaining plays a vital role in settlingand preventing industrial disputes.
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Importance to society:
Collective bargaining leads to industrial peace in
the country It results in establishment of aharmonious industrial climate which supportswhich helps the pace of a nations effortstowards economic and social development sincethe obstacles to such a development can be
reduced considerably. The discrimination and exploitation of workers is
constantly being checked. It provides a methodor the regulation of the conditions of
employment of those who are directlyconcerned about them.
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Level & Units of collective bargaining
Plant or establishment level: bargaining between one employer/company on the
one side.
One or more unions established at theplant,locality,region,national level, or a group ofworker ,on the other.
Local level: Bargaining between employer & group of wmplyes or
more employers association at one side, One or more unions established at the
plant,locality,region,national level, or a group ofworker ,on the other.
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Regional/Area level:
Bargaining between employer /companies & group
of employees or more employers association at theregion, industry or national level on the one side.
One or more unions established at the
plant,locality,region,national level or industry, on
the other.
Industry Level: Bargaining between one or more employer /companies /
corporations& group of employees or more employers
association at the region, industry or national level on theone side.
One or more unions established at the industry,nation,region
plant level.
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National level:
Bargaining between one or more employer /companies /
corporations& group of employees or more employers
association at the region, industry or national level on the oneside.
One or more unions established at the nation, industry,region
plant level.
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Factors influencing bargaining units &
levels
Structure of trade union organization: Industrial union at all plant level where single union
may bargain for all the workers in the plant.
Level of bargaining is plant and the unit is confined tothe representatives of the employers & workers in theplant.
When union formed at industry level, industry levelbargain may become more frequent and the unit ofbargaining becomes wider.
If craft union at plant or industry levels, the no . Ofbargaining units either at the plant or industry level ismore
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Nature of ownership of industrial enterprises:
Ownership of industrial enterprises is confined to
an employer or company at the local level and
there is preponderance of plant level industrial
unions ,at the level of bargaining will be low an
units simple.
W
hen single employer own larger no. ofestablishment in different areas, then bargaining
take place at each establishment separately
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Nature of industrial relations laws andgovernment policy:
Both the levels & units of collective bargaining are
influenced by the contents of industrial relationslaws and governmental policies.
In many countries these laws regulate theselection of bargaining agent, recognition of
representatives unions, representation ofbargaining units, unfair labour practices,recognition of representative union etc
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Promotion of lasting industrial peace. The employers and workers are in a better position
to understand and appreciate the problems anddifficulties of each other.
Collective bargain enables the parties to settletheir differences or disputes based on facts &realities of the situation.
Conducive to managerial efficiency: There are difficult situations when the
management has to face a hostile trade union,opposed to managerial measures.
Under such situation, collective bargaining
provides an opportunities to the management totake the trade union in confidence and seek itscooperation in tackling the problems.
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Development ofIndustrial rules: Collective agreements lead to the establishment of
rules or standards to be observed by both the parties. Collective agreements are legally enforceable
documents.
These rules may relate to numerous subjectsconcerning the terms & condition of employment such
as wages,allowancea,personnel matters, workingconditions, economic security and welfare amenitiesand others.
Significance for society & economy: Collective bargaining is in developed is in developed
stage ,it has been exercising a potent influence on thegovernmental policies and programmes,socialinstitution, standards of living, distribution of nationalincome and economic and social development.
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Collective agreements
Collective agreements in the country are
contracted at the plant level, but during more
recent years, collective agreements have also
taken place at industry,regional,company andcorporate levels.
The enforcement of the industrial dispute
Act,1947 is the responsibility both of the central& state governments in respect of the industries
or disputes under their respective jurisdiction
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In collective agrrements,state government
take place at the plant or other lower level.
In collective agrrements,central governmentdispute at the industry or national level or
involving two or more states.
Collective bargaining in India may be classified
in the following main categories
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formation of Central federations(AITUC,INTUC
etc)
Formation of industrial committees Policy statement (Five year plan)
Code of discipline
Central wage boards Economic & industrial reforms (policie-
1956,1977,1991 etc..)
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Classification of Collective agreements:
Direct negotiation between parties
Agreements which combine the elements ofvoluntariness and compulsion.
Agreement which acquire legal
status(tribunal/courts) Conclusive arrived at the tripartite forums (ILC &
SLC)
Standing order jointly worked out before
submission to the certifying officer forcertification under the Industrial employment(Standing orders) act ,1946
B.D.singh_ page no.226
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Hurdles to collective bargaining
Voluntariness In recognition of unions
Ineffective procedure for the determination of
representative union
Outside leadership in trade unions
Provision of elaborate adjudication
machineries
B.D.Singh-page no_228-230
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Assignment
Concepts & introduction of collective
bargaining
Features of collective bargaining. Principles of collective bargaining.
Importance of collective bargaining.
Process of collective bargaining
Recent trends in collective bargaining