According to an ILO Manual, 1960, the
Collective Bargaining has been defined as:
“Negotiations about working conditions
and terms of employment between an
employer, a group of employees or one or
more employees’ organization (Trade
Union), with a view to reaching an
agreement.”
“Collective Bargaining is a process in which
the representatives of a labor organization &
the representatives of business organization
meet and attempt to negotiate a contract
or agreement, which specifies the nature of
employee-employer union relationship”. –
FLIPPO
“It involves the process of union organization
of employees, negotiations, administration
and interpretation of collective agreements
concerning wages, hours of work and
other conditions of employees arguing in
concerted economic actions dispute
settlement procedures”.- BEACH
• Collective Bargaining is to arrive at an agreement
on wages and other conditions of employment
about which the parties start with divergent
viewpoints but ultimately attempts to make a
compromise
• Joint Consultation means joint councils relates to
the sharing of information & suggestion with
regard to the issues of common interest including
health, safety, welfare and productive efficiency
This only includes recommendations the
ultimate decisions rests with the
management
It is a collective process
It is a continuous process
It is a flexible and dynamic process
It is a method of partnership of workers in management
It is based on give and take approach and not take
or leave approach
It is an attempt in achieving and maintaining discipline
in industry
It is an effective step in promoting industrial
jurisprudence
It involves not only the negotiation of the contract, but
also the administration or application of the contract
In Collective Bargaining, each party tries
to outguess the other, to hide its own
motives, to play up the concessions it
grants to its opponent, and to play down
those it receives. The process is
reasonably well characterized by the
metaphor of “playing one’s cards
close to the chest”
Genuine cooperation, on the other hand,
occurs only when the “cards are face
up on the table”
• Negotiations
• Administration
• Enforcement of the written contract
• Process of resolving labour-management
conflicts
• Promotion of cooperation and mutual
understanding
• Prevention of strikes and lock-outs
• Bipartite / tripartite machinery
• Provide solutions to the problems of Industrial
Relations
• Important to employers, employees in
particular and society at large
• It is legally and socially sanctioned way of
regulating in the public interest the forces of
power and influence inherent in organized labour
• Employment
• Relationship between the workers and the management
• Recognition of union
• Wages and allowances, hours of work
• Leave and festival holidays
• Bonus & profit sharing schemes
• Seniority and rationalism
• Fixation of work loads
• Standard of labour force
• Programs of planning and development, influencing workforce
• Issue related to retrenchment and lay offs
• Victimization of trade union activities
• PF, gratuity and other retirement benefit schemes
• Incentive schemes
• Housing & transport facilities
• Issues related to discipline and stop rules
• Grievance proceedings
• Working conditions
• Safety, accident prevention & occupational diseases
• Employment benefits such as canteens, medical & health services
and crèches
• Administration of welfare funds
• Cooperative thrift and credit societies
• Educational, recreational and training schemes
• It is an institutionalized representative
process
• It is a graceful retreat and compromise
• It involves:-
a) Psychology b) Politics c) Poker
• It is a tough-minded economic calculus and
horse-trading
• Bargaining sessions almost are unavoidably
contain certain stress and strains
• Labour-management tensions are recurrent in
nature, since contacts are regularly re-negotiated
• Multiple unions
• Non-recognition of trade unions
• Political orientation
• Defective laws
• Mediation by political leaders
a) Strong and stable union
b) Recognition of trade union
c) Permanent bargaining machinery
d) Mutual accommodation
e) Political climate
f) Bargainers authority
Negotiation is a process in which two or
more parties who have common and
conflicting interests come together and
talk with a view to reach an agreement
Negotiationis concerned with
purposeful persuasion and
constructive compromise
It involves five key activities
Best possible results [WIN-WIN]
Influencing the balance of power
Promoting a constructive climate
Influencing the constituency of the
trade union
Developing options
1. Collecting information
2. Setting objectives
3. Establishing priorities
4. Assessing the other party & its case
5. Noting details
No hidden agenda
Not a place to ventilate personal ill
feelings
Stick to the agenda
Should be based on facts and data
Equal opportunity to all the parties
Only discussion; not decisions
Ifone takes a position; one limits the
options
Parties
must be willing to make
compromises
Discuss issues not emotions
Focus on problems rather than on
persons
Define the scope of the agreement
[Applicability]
Define the time-frame of the agreement
[Duration]
Write down only what has been agreed
Specify the consequences of non-
compliance
Procedure for dealing with problems of
interpretation
Sign the agreement
Circulate the copies of agreement
1. Knowledge, Awareness & Skills
2. Centralization vs decentralization
3. Language, patience, courtesy and
decorum
4. Backseat pedaling
5. Openness and transparency in
information sharing
They must have right attitudes
They must possess skill to analyze
problems
They must have an intimate knowledge of
operations, working conditions, production
norms and other relevant factors
They must be good in adopting tactics
They must have credibility
Achieving WIN-WIN agreements requires
the following:
1. Focus on their interests; not take
positions
2. Focus on the problem; not on the person
3. Invent multiple solutions
4. Be creative
5. Expand the pie
6. Non-monitory compensation
7. Log-rolling
8. Bridge the gap in perceptions through
reformulation of the issue
