Collective bargaining

Presented By Ramkrishna Rajput
Roll No.Dlp 059

• Collective bargaining is process of joint decision
making and basically represents a democratic
way of life in industry
• It is the process of negotiation between firm’s and
workers’ representatives for the purpose of
establishing mutually agreeable conditions of
employment
• It is a technique adopted by two parties to reach
an understanding acceptable to both through the
process of discussion and negotiation

• Defined collective bargaining as, negotiation about working conditions
and terms of employment between an employer and a group of employees
or one or more employee, organization with a view to reaching an
agreement wherein the terms serve as a code of defining the rights and
obligations of each party in their employment relations with one another
(ILO)
• Involves discussions and negotiations between two groups as to the terms
and conditions of employment
• It is called ‘collective’ because both the employer and the employee act as
a group rather than as individuals. It is known as ‘bargaining’ because the
method of reaching an agreement involves proposals and counter
proposals, offers and counter offers and other negotiations

• To settle disputes/conflicts relating to wages
and working conditions.
• To protect the interest of workers through
collective team.
• To resolve the differences between workers and
management through voluntary negotiations
and arrive at a consensus.
• To avoid third party intervention in matters
relating to payment

• Trade Union Recognition
• Knowledge , awareness and skills of workers
• Support of Labour Administration Authorities
• Good Faith : transparency
• Proper Internal Communication

Importance to Employee:-
1. Develops a sense of self respect and responsibility among the employees
2. Increases the strength of the workforce, thereby, increasing their bargaining
capacity as a group
3. Increases the morale and productivity of employees
4. Restricts management’s freedom for arbitrary/ unilateral action against th
employees
5. Effective collective bargaining machinery strengthens the trade unions
movement
6. The workers feel motivated as they can approach the management on
various matters and bargain for higher benefits
7. Helps in securing a prompt and fair settlement of grievances
8. 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

1.Becomes easier for the management to resolve issues at the
bargaining level rather than taking up complaints of individual workers
2.Tends to promote a sense of job security among employees and
thereby tends to reduce the cost of labor turnover to management
3.Opens up the channel of communication between the workers and the
management and increases worker participation in decision making
4.Plays a vital role in settling and preventing industrial disputes

 Leads to industrial peace in the country
 Results in establishment of a harmonious industrial climate which
supports which helps the pace of a nation’s efforts towards
economic and social development since the obstacles to such a
development can be reduced considerably
 Discrimination and exploitation of workers is constantly being
checked.
 Provides a method or the regulation of the conditions of
employment of those who are directly concerned about them

• Conjunctive/Distributive Bargaining
• Co-operative Bargaining
• Productivity Bargaining
• Composite Bargaining

Conjunctive/Distributive Bargaining :-
• zero-sum game; win – lose
• It is the process of dividing the cake which
represents the whole produced by joint efforts
of management & labour
• If one party wins something, the other party
has relatively smaller size of the cake

Co-operative /Integrative Bargaining:-
– more open to coming down from their high horses;
– win – win.
– Both parties win, each contributing something for
the benefit of the other party
– Such a process develops common objectives, a
better understanding of each other’s need, better
respect, well being & growth of the enterprise as a
whole

Enterprise Or Plant Level
Industry-Cum-Region wide Agreements
Sectoral Collective Bargaining At National Level

• Prepare
• Discuss
• Propose
• Bargain
• Settlement

Collective bargaining

Related slideshows

More Related Content

Collective bargaining