Collective Bargaining PDF
Collective Bargaining PDF
Collective Bargaining
Determination of terms & conditions of employment and resolution of
disputes related to these issues through negotiation between the
representatives of employer(s) & employees.
A sign of industrial democracy
A preferred mode of dispute resolution
No 3rd party intervention
Collective Bargaining
• Collective Bargaining as a Method of Settlement of Disputes
o A rule-making or legislative process, in the sense that it formulates the
terms and conditions under which labour and management will cooperate
and work together over a certain stated period
o An executive process; both management (foreman and supervisory
officials) and trade union officials share the responsibility of enforcing the
rules
o A judicial process, for in every collective agreement there is a grievance
procedure to settle any dispute concerning the application of the agreement
Contd.
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Collective Bargaining
• Approaches to Collective Bargaining:
o Process of Social Change
o Peace Treaty
o Industrial Jurisprudence
• Importance of Collective Bargaining:
o Helps increase economic strength of both the parties at the same time protecting
their interests
o Helps establish uniform conditions of employment with a view to avoid
occurrence of industrial disputes
o Helps resolve disputes when they occur
o Lays down rules and norms for dealing with labour
o Helps usher in democratic principles into the industrial world
Contd.
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Collective Bargaining
• Strategic Choices
o Managers must decide when to open the negotiations
o Managers must examine the possibility of a strike and decide on the ways
of handling it, should it occur
o Mangers to understand which issues to raise first and which to wait for
o Managers must decide upon the individuals who would represent their side
at the negotiating table
o Managers need to decide how closely they will follow the agreement, once
it is signed
Contd.
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Process of Collective Bargaining
Contd.
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Processo Identifying
of Collective
Bargaining Issues
Bargaining
▪ Wage-Related Issues
▪ Supplementary Economic Benefits
▪ Institutional Issues
▪ Administrative Issues
o Negotiating: In order to get negotiations moving again, there are several
measures that may be used:
▪ Through third party intervention such as arbitration, and adjudication
▪ Unions tactics like strikes and boycotts
▪ Management strategies such as lockouts, splitting the union, bribing
union leaders, and using political influence
Contd.
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Process of Collective Bargaining
o Settlement and Contract Agreement
▪ A particularly crucial stage is ratification
▪ It is important that the contract must be clear and precise; any ambiguity
leads to grievances or other problems
o Administration of the Agreement
▪ The agreement must be implemented according to the letter and spirit of
the provisions of the agreement
▪ Flaws are allowed to continue till the expiry of the agreement period
▪ Faulty implementation or violation of any provision leads to disputes
Contd.
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