21799324-Collective-Bargaining

8/7/2019 21799324-Collective-Bargaining

1/18


2/18

What isCollective

Bargaining?


3/18

Definition Collective bargaining is a type of negotiation used by employees

to work with their employers. During a collective bargaining period, workers' representatives

approach the employer and attempt to negotiate a contractwhich both sides can agree with.

Typical issues covered in a labor contract are hours, wages,benefits, working conditions, and the rules of the workplace.

Once both sides have reached a contract that they findagreeable, it is signed and kept in place for a set period of time,most commonly three years.

The final contract is called a collectivebargaining agreement, to reflect the factthat it is the result of a collective

bargaining effort. The parties often refer to the result of

negotiation as a Collective BargainingAgreement (CBA) / as a Collective

Employment Agreement (CEA).


4/18

F

eatures:It is a collective process.The representatives of both workers and

management participate in bargaining.

II. It is a continuous process. It establishesregular and stable relationship between the

parties involved. It involves not only thenegotiation of the contract, but also the

administration of the contract.

III. It is a flexible and dynamic process. Theparties have to adopt a flexible attitude

through the process of bargaining.

IV. It is a method of partnership of workers inmanagement


5/18

Importance to societyCollective bargaining leads to industrial

peace in the country.

It results in establishment of aharmonious industrial climate whichsupports, which helps the pace of a

nations efforts towards economic andsocial development since the obstaclesto such a development can be reduced

considerably.

The discrimination and exploitation ofworkers is constantly being checked.

It provides a method or the regulationof the conditions of employment ofthose who are directly concerned

about them.


6/18

Importance to employers

It becomes easier for the management to resolveissues at the bargaining level rather than taking

up complaints of individual workers.

Collective bargaining tends to promote a sense ofjob 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 themanagement and increases worker participation

in decision making.

Collective bargaining plays a vital role in settlingand preventing industrial disputes.


7/18

.

Importance to employees

Collective bargaining develops a sense of self respectand responsibility among the employees.

It increases the strength of the workforce, thereby,increasing their bargaining capacity as a group.

Collective bargaining increases the morale andproductivity of employees.

It restricts managements freedom for arbitraryaction against the employees..

The workers feel motivated as they can approach themanagement on various matters and bargain for

higher benefits.

It helps in securing a prompt and fair settlement ofgrievances.

It provides a flexible means for the adjustment ofwages and employment conditions to economic andtechnological changes in the industry, as a resultof which the chances for conflicts are reduced.

Impasse


8/18

Collective Bargaining

Process In many companies, agreements have a fixedtime scale and a collective bargaining processwill review the procedural agreement when

negotiations take place on pay and conditionsof employment.


9/18

(1) Prepare This phase involves composition of a negotiation

team. The negotiation team should consist of

representatives of both the parties with adequateknowledge and skills for negotiation.

In this phase both the employers representatives

and the union examine their own situation in orderto develop the issues that they believe will be mostimportant.

A correct understanding of the mainissues to be covered and intimate

knowledge of operations, workingconditions production norms andother relevant conditions isrequired.


10/18

(2) Discuss

The parties decide theground rules that will guidethe negotiations.

An environment of mutual

trust and understanding isalso created so that thecollective bargainingagreement would bereached.


11/18

(3) Propose It involves the initial opening

statements and the possible optionsthat exist to resolve them. In a word,

this phase could be described asbrainstorming. The exchange ofmessages takes place and opinion ofboth the parties is sought.


12/18

(4) Bargain

Negotiations are easy if a problemsolving attitude is adopted.

This stage comprises the time whenwhat ifs and supposals are set forthand the drafting of agreements takeplace.


13/18

(5)Settlement Once the parties are through with the

bargaining process, a consensualagreement is reached upon wherein boththe parties agree to a common decisionregarding the problem or the issue.

This stage is described as consisting ofeffective joint implementation of theagreement through shared visions,strategic planning and negotiatedchange.


14/18

Levels of collectivebargaining


15/18

Economy-wide (national)

Bargaining is a bipartite ortripartite form of negotiationbetween union confederations,central employer associations

and government agencies. It aims at providing a floor

for lower-level bargaining onthe terms of employment,often taking into accountmacroeconomic goals.


16/18

(b) Sectoral bargaining:

It aims at the standardization of the terms ofemployment in one industry, includes a range ofbargaining patterns.

Bargaining may be either broadly or narrowlydefined in terms of the industrial activities

covered and may be either split up according toterritorial subunits or conducted nationally.

(c) Enterprise Level: It involves the company and/or

establishment. It emphasizes the point that bargaining

levels need not be mutually exclusive.


17/18

g.

Problems of Collective Bargaining

I. Due to the dominance of outsiders in trade unionism inthe country, there is multiplicity of unions which areweak and unstable, and do not represent majority of

the employees. Moreover, there are inter-unionrivalries, which further hinder the process of

collective bargaining between the labor and themanagement.

II. Trade unions are having political affiliations, theycontinue to be dominated by politicians, who use theunions and their members to meet their political ends.

III. There is a lack of definite procedure to determinewhich union is to be recognized to serve as a bargaining

agent on behalf of the workers

IV. There has been very close association between thetrade unions and political parties. As a result, trade

union movement has leaned towards politicalorientations rather than collective bargaining.


18/18

21799324-Collective-Bargaining

Documents