COLLECTIVE BARGAINING

Collective Bargaining- Meaning

It is a technique that has been adopted by union and management to reconcile

their conflicting interests. It is called collective because the employees, as a group, select representatives to meet and discuss differences with the employer. The negotiations for collective bargaining require joint sessions of the representatives of labour and management.

Collective Bargaining- Definitions

In the words of Harrinon, is a process of accommodation between two institutions which have both common and conflicting interests. Randle, Collective bargaining has different meanings for different individuals or groups. Trade Unions, Managements and the public have divergent views on this process because each is differently affected by it. Richardson, Collective bargaining takes place when a number of work people enter into a negotiation as a bargaining unit with an employer or group of employers with the object of reaching an agreement on the conditions of the employment of the work people. Encyclopedia of Social Sciences, Collective bargaining is a process of discussion and negotiation between two parties one or both of whom is a group of persons acting in concert. The resulting bargain is an understanding as to the terms and conditions under which a continuing service is to be performed. More specifically, collective bargaining is a procedure by which employers and a group of employees agree upon the conditions of work.

Collective Bargaining- Characteristics

Two way process Agreement & Mutually settling it Continuous process Group Action Flexible Fluidity & ample scope for a compromise for a mutual give & take before the final agreement is reached Dynamic & Static Not a Competitive process but a Complementary process It is an art, an advanced form of human relations. It is a device and a procedure used by wage earners to safeguard their interests.

Collective Bargaining- Meaning

It is a technique that has been adopted by union and management to reconcile their conflicting interests. It is called collective because the employees, as a group, select representatives to meet and discuss differences with the employer. The negotiations for collective bargaining require joint sessions of the representatives of labour and management.

Collective Bargaining- Definitions

In the words of Harrinon, is a process of accommodation between two institutions which have both common and conflicting interests. Randle, Collective bargaining has different meanings for different individuals or groups. Trade Unions, Managements and the public have divergent views on this process because each is differently affected by it. Richardson, Collective bargaining takes place when a number of work people enter into a negotiation as a bargaining unit with an employer or group of employers with the object of reaching an agreement on the conditions of the employment of the work people. Encyclopedia of Social Sciences, Collective bargaining is a process of discussion and negotiation between two parties one or both of whom is a group of persons acting in concert. The resulting bargain is an understanding as to the terms and conditions under which a continuing service is to be performed. More specifically, collective bargaining is a procedure by which employers and a group of employees agree upon the conditions of work.

Collective Bargaining- Characteristics

Two way process Agreement & Mutually settling it Continuous process Group Action Flexible Fluidity & ample scope for a compromise for a mutual give & take before the final agreement is reached Dynamic & Static Not a Competitive process but a Complementary process It is an art, an advanced form of human relations. It is a device and a procedure used by wage earners to safeguard their interests. Industrial democracy at work- joint formulation of company policy on all matters which directly affects the workers

Objectives & Significance

It is a technique that has been adopted by unions & management for compromising their conflicting interests. It plays a significant role in improving the labour- management relations and in ensuring industrial harmony. It helps in easing out many minor differences and there are many instances in which even some major disputes are set to be settled without any work stoppage or outside intervention. It provides a climate for smooth progress. It ensures that managements do not take any unilateral decision. It develops a sense of responsibility and of self-respect among the workers and is a guarantee towards wage protection etc.

On the basis of the experience of advanced countries, where collective bargaining is said to have made considerable advances, some indicators of C.B practice are: A high degree at collective bargaining as measured in terms of the proportion of workers covered by collective agreements; Qualitative conduct of the parties to collective bargaining both before a situation warranting negotiations develops and the methods followed at the time of arriving at agreements; The right priorities assigned to different methods in the agreements and their changing pattern overtime; A structure of bargaining with emphasis on central bargaining which is purported to give some order & stability to labour- management relations.

GOALS TO BE ACHIEVED BY WORKERS THROUGH C.B.

Economic goals: Wages, Hours of work, The working conditions, Fringe benefits Non-Economic goals: Workers satisfaction with his job, protection of the Union as a growing institute (right to union)

GOALS TO BE ACHIEVED BY MANAGEMENT THROUGH C.B.

Control of the organization, Maintaining its ability to manage with a high degree of flexibility and efficiency of operation Control of hiring, promotion, discharge, lay off Personnel techniques of management Lay down fair rates of wages and norms of working conditions. Achieve an efficient operation of the plant.

Promote an efficient operation of the plant. Promote the stability and prosperity of industry. Bring social change through acceptable solutions.

Prof.. Butter has viewed the functions of collective bargaining under three heads:Collective bargaining as a process of social change. Collective bargaining acts as a technique of long run social change, bringing rearrangements in the power hierarchy of competing groups. Collective bargaining has served as a peace treaty between two parties in continued conflict. The compromise is a temporary truce with neither side being completely satisfied with the results. Each would like to modify it at the earliest opportunity. Since the contract is almost always of short duration, each begins to prepare a new list of demands. Collective bargaining create system of industrial jurisprudence. It is a method of introducing civil rights into industry, that is, of requiring that management be conducted by rule rather than by arbitrary decision. It is a rule making or legislative process in the sense that it formulates terms and conditions under which labour and management will cooperate and work together over a certain stated period.

This agreement is important for a number of reasons:

It provides a method for the regulation of the conditions of employment of those who are directly concerned about them. It provides a solution to the problem of sickness in industry and ensures old age pension benefits and other fringe benefits. It creates new and varied procedures for the solution of the problems as and when arise-problem which vex industrial relations and its form can be adjusted, conditions incorporated in the agreement by those who are engaged in a similar industry. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced. As a vehicle of industrial peace, collective bargaining has no equal. It is the most important and significant aspect of labour-management relations and extends the democratic principle from the political to the industrial field. It builds up a system of industrial jurisprudence by introducing civil rights in industry. In other words,. It ensures that management is conducted by rules rather than by arbitrary decisions.

Prof. Dunlop is of the opinion that collective bargaining is :-

A system which establishes, services and administers many of the rules which govern the workers place of work. A procedure which determines the quantum of compensation which employees should receive and which influences the distribution of economic ills. A method of settling disputes during the pendency of an agreement and of determining whether a dispute should be reopened and whether a strike or lockout should be resorted to or not.

Scope of Collective Bargaining

Scope of collective bargaining is based on the following guide lines(in India) A preamble stating why the parties had met together, usually making reference to the unions charter of demands which formed the starting point for discussions. A statement of principles such as rights and responsibilities of both parties. Recognition of union by management and acceptance of the unions right to organize the workers and to carry out all the normal activities of a trade union. A section dealing with remuneration, including basic pay scales, grades and job classification, dearness allowance and other allowances, incentives schemes and annual bonus. A section on working conditions such as hours of work, overtime, recruitment, transfer, promotion, etc. A section on service benefits and amenities such as leave, public holidays, medical benefits, sick pay, retirement age, pension or gratuity scheme, provident fund etc. Clauses relating to special joint machinery may be included. These include joint production committees, joint labour relations, job evaluation, discipline, safety and welfare committees as well as workers committees. Grievance procedure of two kinds may be incorporated in an agreement. First the procedure for dealing with individual grievances as they arise day to day within the establishment. This may follow to a lesser or greater degree the model drawn up by the Indian labour conference. Second is the method of settling any dispute over interpretation of any part of agreement. This procedure includes voluntary arbitration.

These are the following important facts pertaining to collective bargaining nature: It is carried out on a collective as distinct from an individual basis. The
collective bargaining is bargaining by groups of people. In the bargaining process, the main actors are employers and their association. The object of collective bargaining is rule making i.e. reaching an agreement specifying the rules pertaining to employment relationship.

The main focus of these rules is on the terms and conditions of employment. Collective bargaining is a Collective bipartite confrontation between workers and management with a view to arrive at an agreement , for the objective not, welfare but compromise. It is both a device and a procedure used by wage earners to safeguard interests; it is an institution or instrument of an industrial organisation, discussion and negotiations between the two parties. It is however, a technique by which an attempt is made to reconcile the needs, objectives of workers and employers and is, therefore, an integral part of industrial society. The essence of collective bargaining lies in the readiness of the two parties of dispute to reach an agreement or mutually satisfying settlement. It is concerned about the emotions of the people involved in it as well as with the logic of interests.

Collective Bargaining Vs. Joint Consultation

There is a lot of differences between the two processes. Collective bargaining The object is to arrive at an agreement on wages and other conditions of employment about which the parties start with divergent viewpoints but ultimately attempt to make compromise. As soon as the bargain is made, the terms of the agreement are put into action. Joint consultation such as joint councils refers to the sharing of information and suggestions with regard to issues of common interest including health, safety, welfare and productive efficiency. Although the results differ, course of activities may be in the form of recommendations, the ultimate decisions lies with the management.

Practice of Collective Bargaining

The consultative machinery for now practices in India at almost every level i.e. At the level of undertaking: Works Committee & Joint committees At the industrial level: Wage Boards & Industrial Committees At the state level: Labour Advisory Board At the national level: Indian Labour Conference & Standing Labour Committee It is also called bipartite and tripartite bodies. .The bipartite consultative machinery :Two important constituents viz., the works committee and the joint management councils. Tripartite bodies

The Indian labour conference

Standing labour committee Committee on conventions Industrial committee And other bodies of tripartite nature deal with various aspects of labour program. Work committee Joint management councils

THE PROCESS OF COLLECTIVE BARGAINING Prenegotiation Phase The selection of Negotiators The Strategy of Bargaining The Tactics of Bargaining, and The Contract While Memoria C.B. has described two stages in collective bargaining i.e.
1-The negotiation stage and 2-The stage of contract administration

PROCESS OF NEGOTIATION BARGAINING

1-Preparation for Negotiation- Negotiation may commence at the instance of either party-of labour or of management. A- Some managements bids the time till trade unions put proposals for trade unions B- Positive Bargaining: Managements submit their own proposals for consideration by labour representatives

Importance of Pre-Negotiation Phase

1- Highly Vital for both management and employees. 2-Important to study the status of the labour organization (Union) 3-Previous negotiations, back ground and personality of the particular union negotiators to be studied.

Approval from top management must be obtained on

1-The specific proposals of the company including the objectives of the negotiations 2-The appraisals of the cost of implementing the proposals 3-An approval in principle of the demands over which bargaining to be made (Demands to be accepted and not to be accepted)

2-Negotiation Technique and procedure

Undertaken by a representative of each party or committee or by line or staff personnel. The negotiation committee may be composed of three to six members. A committee should be small,otherwise Committees become unwary; They are more difficult to assemble, more likely to disorderly; They are more inclined to concentrate on a discussion of in grievances or problems of interest to one group rather than to the union as a whole.

A-Strategy of Bargaining- Strategy is concerned with mapping out plan and

basic policies to be in the bargaining process. Tactics are the particular action that are taken with bargaining table. Avoid mutual agreement clauses which would prevent management action. Management should retain the right to manage the firm subject to challenge by the union under the contract. Keep ones eyes on the entire package. A work-procedure concession may eventually cost more than a substantial pay increase. Keep company personal informed of the progress of bargaining sessions.

Develop agreement s where the union leader can always maintain that they won union leaders have to for selection on their record and management can more frequently afford the appearance of having lost. Determine the point at which the company is willing for the union to go on strike. The union is fully aware of the fact that the strike is its most potent bargaining weapon.

TACTICS OF BARGAINING
Arnold Campo suggests that the following procedure should be adopted in negotiation

A-For Union & Management Be friendly in negotiation. Introduce everybody. Be willing to listen. There would be time enough for you to worry about
things and say no, after you have heard all the facts. Give everyone an opportunity to state his position and point of view.

Know something about the personal history of the other partys representatives. Always bear in mind the fact that you to do what is right and fair. Both parties should strive to maintain an objective approach to a problem or grievance. Do not attempt to guide the discussion along a straight line which goes straight to the solution of the problems. Define each issue clearly and unambiguously or detail in the contract to ensure greater flexibility. Avoid Sharp practices.

B-For the management The management must, at the outset, make sure that the labour it is going
negotiate with, are really the representatives of the workers. Dont use lawyers as negotiators unless they intimate knowledge of industry relations. Dont limit contracts with the union to controversial subjects, but consider such matters as are of common interest to both. 3-FOLLOW-UP ACTION- The collective bargaining should be printed and circulated among the employees they can know the reality about it. What has been agreed upon between management and represent of union meetings of supervisors should be called with effectively.

A-CONTACT MANAGEMENT
When the process of a negotiation has been completed, it is the time to sign the contract, the terms and conditions, which must be observed by both the parties. Once an agreement is signed, both the management and trade unions are required to honor it in letter and sprit, Smith has rightly observed An agreement is merely the frame work for everybody relationships. The bargaining is carried on daily.

For Management The management should be available for open discussion/ conferences with
works representatives so that it may acquire first hand knowledge of the changing attitude and problems of its employees. Give credit to the trade union for anything work while achieved by it. The management should avoid paternalism and strive to treat the trade union representatives and its employees as equals.

Many restrictive practices, and what appear to be unseasonable demands on the workers or their representatives, will disappear if the management strives give regular employment to its workers.

For Trade Unions That is the responsibility of the trade unions that their members understand
terms of the agreement, it has reached with the management. The union representatives should make themselves available for a conference whenever they are required to do so by the management.