Collective bargaining

1. Collective bargaining

2. Collective bargaining generally includes negotiations between the two parties (employees’ representatives and employer’s representatives). • Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment.

3. The collective bargaining process comprises of five core steps: • Prepare: • The first thing to be done is to determine whether there is actually any reason to negotiate at all. • This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. • A correct understanding of the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required.

4. Discuss: Here, the parties decide the ground rules that will guide the negotiations. Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. • The exchange of messages takes place and opinion of both the parties is sought.

5. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when ‘what ifs’ and ‘supposes’ are set forth and the drafting of agreements take place.Settlement: Once the parties are through with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue.

6. Objectives of Collective Bargaining • To settle disputes/conflicts relating to wages and working conditions • To protect the interests of workers through collective action • To resolve the difference between workers and management through voluntary negotiations and arrive at a consensus • To avoid third party intervention in matters relating to emloyment

7. Feature of Collective bargaining • Collective: workers and management jointly arrive at an amicable solution through negotiation • Strength: the bargaining strength of both parties is equal. It is industrial democracy at work • Flexible: it is a group action – representative of workers and management. It believes IN give and take policy

8. Feature of Collective bargaining • Voluntary: both workers and management come to table voluntarily and implementation of the agreement reached is also voluntary

9. Feature of Collective bargaining • Power Relationship: workers wants to gain the maximum from management and management wants to extract the maximum from workers by offering as little as possible • Representation: In Collective bargaining the employer does not deal directly with workers. He carries out negotiations with representatives of unions who are authorized to bargain with employer on work-related matters • Bipartite Process: the employer and employee negotiate the issues directly, face to face across the table. There is no third party intervention

10. Types of Bargaining • Conjunctive / distributive bargaining • Each parties try to maximize their gain 2. Cooperative Bargaining • When companies hit by recession 3. Productivity Bargaining • A standard productivity index is finalized through negotiation 4. Composite Bargaining • Bargaining to withstand liberalization, automation, farming out business to outsiders and survive