Employee Relation Collective Bargaining

8/3/2019 Employee Relation Collective Bargaining

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It is the relationship between the management & theemployees of an industry.

It facilitates harmonious relationships in an organization bysetting a framework for the management and the

employees. It is based on mutual compromise & adjustment. The state & legal system also have a role to play in the

maintenance of a conflict-free industrial environment.


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Employeeso Pillars on which the organizations are built.o They contribute to the organizational objectives & are

organizations most valuable resource.o To maintain harmonious industrial relations, employees have to be

satisfied with the organizational policies and procedures.o It is managements responsibility to employ workers who suit the

organizational culture & job requirements and invest in providingthe benefits and incentives necessary to develop and retain them

in the organization.


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Trade unionso It constitute the employee representative bodies in an

organization.o It negotiate with the management, in the interests of the

employees, at the organizational or industry level.

o Trade unions enjoy power and status based on the supportof the employees.

o In India, there are number of central labor organizations likeIndian National Trade Union Congress (INTUC), All India

Trade Union Congress (AITUC), National LaborOrganization (NLO), and Centre of Indian Trade Union(CITU).


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The Managemento Management policies can help in maintaining high

employee morale and in preventing industrial conflictsand disputes.

o The role of the management has undergone a bigchange from an explorative authoritative style to a moreparticipative style. The exploitative authoritative style

In initial years of industrialization, the management was authoritative

& workers were paid low wages. The working conditions were pathetic, with the absence of even

basic amenities like water. This led to the growth of the revolutionary trade unions.


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The Managemento The benevolent authoritative style

With the advent of the human relation era, themanagement was kind, but strict towards the workers.

Welfare amenities & other benefits were provided for theirwellbeing.o Consultative management style

The trade unions strengths increased and theydemanded a say in management-related issues.

Management was forced to introduce a two-waycommunication channel with the employees. However,final word was of the management.


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To safeguard the interests of the labor and themanagement.

To develop & secure mutual understanding and good

relationships among all. To maintain industrial peace and harmony by preventingindustrial conflicts.

To improve the standard of living of the average workerby providing basic and standard amenities.

To ensure discipline in the organization and in theindustry.

To improve the bargaining capacity of the workers.


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The term was coined by Sydney Webb &Beatrice Webb.

It takes place when a number of work people

enter into a negotiation as a bargaining unit withan employer or group of employers with theobject of reaching an agreement on theconditions of the employment of the work people.


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Conditions favoring collective bargainingo There should be a single union, or in case of multiple

unions, a common agreement among them.o Management should be open to the requests of the

trade unions and should identify the unionrepresentatives.

o Organizational culture should foster the right focollective bargaining.

o The role of third party should be minimizedo All the parties involved should aim at a win-win

situation & not a win-lose situation.


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Group activityo The parties involved in the bargaining process

represents different groups- the employees and

the management. Activity in levels

o Starts with bipartite level- management &employees.

o Can proceed to industry/national levelo Govt. intervention through arbitration or

adjudication is the lat level


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Flexibilityo Aims at mutually agreeable & favorable solution to

the problemo Flexibility in ideas & opinions, demands &

requests, and decisions & agreement is the chiefcharacteristics of the collective bargainingprocess.

Win-win Situation Builds Relationships


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To provide opportunity to the workers, to voice theirproblems.

To facilitate reaching a mutually acceptable solution. To resolve all conflicts/disputes in a mutually agreeablemanner. To prevent any conflicts/disputes in the future through

mutually signed contracts. To provide stabile and peaceful industrial relations in the

organization. To enhance the productivity of the organization by

preventing strikes, lock-outs, etc.


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Step1- Preparation for Negotiationo Both the parties should have a clear understanding of the

problem at hand.o They should understand & interpret the existing contract to

identify the loopholes or problem, if any.o They should be in possession of all he facts and figures

required for making a strong case.o This case should be built in a strategic manner, after

indentifying the needs of the opposing party and intelligentlypredicting their arguments; thus making the case veryforceful.


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Step2- Negotiationo Submission of the demands of the trade union to

the management. The demands are usually athigher side.

o The management also do the same- by offeringsomething less than what is has in mind.

o Both starts at different levels, negotiate and reacha mutually acceptable agreement.

o The union representative lower their demandsand the management increases its offer.


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Step2- Negotiation (contd.)o After verbal agreement a mutually acceptable

written agreement is entered into.o If this fails third party (conciliator or an arbitrator) is

introduced.o If the third party fails it leads to industrial dispute.o Then finally, Govt. intervenes to resolve the dispute

and both the parties are bound to abide by the

judgment passed at the adjudication stage.


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Step3- Contract Administrationo Contract is drafted as per the negotiations result.o Both the parties have to abide by the contract.o The terms and the agreement of the contract must

be widely circulated among all the employees.


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Administrative Participationo At this level, the workers council is given certain alternatives

from which it can select the one it wants to implement.

Decisive Participationo

At this level, decisions are taken jointly on matters relating toproduction and welfare and both the parties have to abide bythem.

Worker participation in management aids two-way communicationwhich results in better flow of ideas and opinions. This helps the

management design & implement employee-friendly policies withminimum resistance.


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The industrial dispute act 1949 provided for setting up ofworkers committee.

It comprises both the management & the workers. In accordance of the act, work committees were set up in

organizations employing 100 or more workers. The basic objective of setting committees was o promotemeasures for maintaining harmonious relations in theworkplace.

These committees have a president, a vice president, a

secretary and a joint secretary The president is nominated by the employer and the vice-

president is a representative of the workers.


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The 2nd five year plan (1957-61) recommended thesetting up of joint councils of management consisting ofrepresentatives of workers and the management.

The Indian Labor Conference (ILC) accepted, in

principle, the idea of setting up joint managementcouncils in India.

The basic objectives were identified as:o Promoting cordial industrial relations.o

Enhancing the operational efficiency of workers.

o Providing welfare facilities to workers.o Educating workers to contribute effectively to such schemes.

Documents

Employee Relation Collective Bargaining