PRESENTED BY:-AMIT KUMAR

GOVIND KUMAR

MEANING OF COLLECTIVE BARGAINING

Collective bargaining is the process of negotiating the terms of employment between an employer and a group of workers.

The terms of employment are likely to include items such as:- conditions of employment, working conditions and other workplace rules, base pay, overtime pay, work hours, shift length, work holidays, sick leave, vacation time, retirement benefits and health care benefits etc.

CHARACTERISTICS OF COLLECTIVE BARGAINING it is a group action as opposed to individual action:- it is collective in two ways. One is that all the workers collectively bargain for their common interests and benefits and on the management sides are its delegates at the bargaining table. They jointly arrive at an amicable solutions through negotiations.

it is flexible :- It is the group action where representatives of workers and management expend energies in order to arrive at a consensus. It has sufficient flexibility since no party can afford to be inflexible and rigid in such situation.

It is a bipartile process :- It is a mutual give and take rather than a take- it or leave-it method of arriving at a settlement of a dispute. Both parties are involved in it . The employers and the employees negotiate the issues directly, face to face across the table. There is no third party intervention.

It is a continuous process :- Collective bargaining is a continuous process. it does not commence with negotiation and end with an agreement. The agreement is only beginning of collective bargaining. IT is a continuous process which includes implementation of the agreement and further negotiation later whenever required.

OBJECTIVES OF COLLECTIVE BARGAINING

• To maintain cordial relationship between employer and the employees by settling disputes/conflicts.

•To protect the interest of workers through collective action and by preventing unilateral action on the part of the employer.

•To resolve the differences between employers and employees through voluntary negotiations.

•To avoid the need for government intervention in matters relating to employment.

•To ensure the participation of trade unions in industry.

•To promote industrial democracy.

BARGAINABLE ISSUESAny issue that has relevance to management and workers becomes the subject matter of bargaining. Traditionally wages and working conditions have been the primary focus areas of collective bargaining. However , in recent times, the process of collective bargaining has extended to almost any area that comes under the employer-employees relations.

A list covering some of the issues that come under collective bargaining is given below:-

• Wages and working conditions• Rules and regulations pertaining to work.• Incentive payments• Job security• Changes in technology and its impact on employees • Transfer and promotions• Grievances and grievances handling procedures• Management Rights• Recognitions of employees’ unions• Employee benefits etc..

TYPES OF COLLECTIVE BARGAININGConjunctive Bargaining :- In this type of bargaining , the employers and employees try to maximize their respective gains, Issues like wages, bonus, etc are negotiated under conjunctive bargaining. The principle “My gain is your loss and your gain is my loss” is practiced in conjunctive bargaining. The parties want to yield as little as possible while getting as much as possible from the other party. Conjunctive bargaining is also called as Distributive bargaining.

Co-operative Bargaining :- In co-operative bargaining , both parties realize the importance of surviving in difficult times and are willing to negotiate the terms of employment in flexible way. Labour may accept wage cuts and management may agree to modernise and make additional investment.

Productivity Bargaining :- In productivity bargaining, Worker’s wages and benefits are linked to productivity. If they are able to exceed the standard productivity norms, workers will get substantial benefits. Standard productivity is finalised through negotiations. Productivity bargaining agreements are important for survival and growth of the organization.

Composite Bargaining :- In composite bargaining, labour bargains for wages as usual but goes a step further demanding equity in matters relating to work norms, employment levels, manning standards etc. Through composite bargaining unions are able to prevent the dilution of their powers and ensure justice to workers by putting certain limits on the freedom of employers. For the employers this is lesser evil when compared to strikes and lockouts.

PROCESS OF COLLECTIVE BARGAININGThe collective bargaining process involves five core steps:

• Preparation – Choosing a negotiation team and representatives of both the union and employer. Both parties should be skilled in negotiation and labor laws, and both examine available information to determine whether they have a strong standing for negotiation.

• Discussion – Both parties meet to set ground rules for the collective bargaining negotiation process.

• Proposal – Both representatives make opening statements, outlining options and possible solutions to the issue at hand.

• Bargaining – Following proposals, the parties discuss potential compromises, bargaining to create an agreement that is acceptable to both parties. This becomes a “draft” agreement, which is not legally binding, but a stepping stone to coming to a final collective bargaining agreement.

• Final Agreement – Once an agreement is made between the parties, it must be put in writing, signed by the parties, and put into effect.