Collectiv bargaining

Presented BySumi SasiKumar

S2,MBAGKMCCMT

COLLECTIVE BARGAINING

???.. Collective bargaining takes place when

representatives of a labour union meet management representatives to determine employees’ wages and benefits and to solve

other issues…

Definition of Collective bargaining“Collective bargaining is a process in which

the representatives of business organization meet and attempt to

negotiate a contract or agreement which specifies the nature of the Employee-

Employer union relationship”-Edwin B.Flippo

Characteristics of collective bargaining It’s a group action as opposed to

individual action. It is flexible & mobile and not fixed. It is a two-party process. It is a continuous process. it is dynamic and not static.

……… It is a democratic function. Collective bargaining is not a competitive

process but a complementary process. “Its an art, an advanced form of human

relations.”

Importance of collective bargainingIt helps to increase economic strength of

both parties.It helps to establish uniform conditions of

employment.Secure a prompt and fair redressal of

grievances.Avoid strikes, & coercive activities.

………….Lay down fair rates of wages& norms.Achieve an efficient operation of the plant.It ensure old age pension benefits and

other fringe benefits..

Bargaining Topics

Collective bargaining Process

NegotiationContract Administration

A. Identification of problem

B. Preparing for negotiations

C. Negotiations of agreement

The union see that the contract had been understood and take steps to implement it.

Conditions for the success of collective bargaining

Strong consultation between the trade union and the management is possible only when the bargaining power of two parties is relatively equal.

Both the parties must accept the principle of ‘free consultation’ & ‘free enterprise’.

Must have mutual confidence, good faith& desire to make collective bargaining a success

…….The willing acceptance by the management

to recognize representative union for this purpose.

Should not await the union raise problems but should make every reasonable effort to prevent them.

The process of bargaining should be free from unfair practices.

Limited success of Collective bargaining in IndiaI. Problems with UnionsII. Problems with governmentIII. Legal problemsIV. Political InterferenceV. Attitude management

Recommendations of the NCLGovernment intervention in industrial

relations, particularly in the settlement of industrial disputes should be reduced gradually to the minimum possible extent. Compulsory adjudication of disputes should be used only as a last resort.

Recommendations..Trade unions should be strengthened both

organizationally and financially by amending the Trade Union ACT of 1926:

Make registration of unions compulsory.Enhance the union membership fee.Reduce the presence of outsiders in the

union executive & among the office bearers

Recommendations..Legal provision may be made either by

amending an existing enactment for:Compulsory recognition of trade unions and

certification of unions as bargaining agents.Prohibition and penalisation of unfair labour

trade practices. Bargaining in good faith by both employers

and unions

Approaches to collective bargaining

As a PROCESS OF SOCIAL CHANGE.As a PEACE TREATY between the conflicting

parties.As a system of INDUSTRIAL

JURISPRUDENCE.

Views of Collective bargainingFrom the MANAEMENT point of View:a)To earn higher profits at lower costsb)Maximum utilization of workers.From LABOUR point of View: Strengthening the Trade union movement

because Trade unions are the bargaining agents of the workers.

VIEWS….From the GOVERNMENT point of views: Industrial peace is maintained through

collective bargaining process..

TYPES OF BARGAININGDISTRIBUTIVE BARGAINING

INTEGRATIVE BARAINING

It deals with issues or an issue in which two or more parties have conflicting or advisory interests

“WIN-LOSS”

It is a process where both the parties can win, each contributing something for the benefits of other party.

“WIN-WIN”

CONCLUSION

THANK YOU…..