18-06-2014, 12:40 PM
Collective Bargaining
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Meaning of Collective Bargaining
Collective Bargaining is a system and a technique of resolving an industrial dispute through negotiations between employers and the representatives of employees without any help of an arbitrator.
Collective bargaining is that arrangement whereby the wages components of remuneration and conditions of employment of workman are settled through a bargain between the employer and the workman collectively whether represented through their union or by some of them on behalf of all of them.
Definitions
Collective bargaining is a mode of fixing the terms of employment by means of bargaining between an organized body of employees and an employer or an association of employers usually acting through organized agents.
R.F.Hoxie
The resolution of industrial problems between the representatives of employers and the freely designated representatives of employees acting collectively with a minimum of government dictation
Characteristics
It is a group action as opposed to individual action and is initiated through the representatives of workers.
It is flexible and mobile, and not fixed or static.
It is a two-party process.
It is a continuous process.
It is dynamic and not static.
It is industrial democracy at work.
Collective bargaining is not a competitive process but is essentially a complementary process.
It is an art, an advanced form of human relations.
Need of Collective Bargaining
It helps in solving the industrial disputes.
Secure a prompt and fair redressal of grievances.
Establish uniform conditions of employment with a view to avoid industrial disputes and maintaining stable peace in the industry.
Helps redress worker grievances promptly and fairly.
Avoid interruptions in work which follow strikes, go-slow tactics and similar coercive activities.
Lay down fair rates of wages and norms of working conditions.
Achieve an efficient operation of the plant and
Promote the stability and prosperity of the industry
Importance
From the management’s point of view
1. Collective bargaining helps in reducing labour problems to the minimum and in maintaining cordial relations between labour and management.
2. Collective bargaining opens up the channel of communication between the workers and management thus increasing worker participation in decision making.
3. Collective bargaining helps to create a sense of job security among employees.
4. Collective bargaining makes simpler for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers.
Essential Conditions for Success of Collective Bargaining
There must be a change in the attitude of employers and employees. It is an approach which indicates that the two parties are determined to resolve their differences in their respective claims in a peaceful manner.
The employers and employees should enter upon negotiations on points of difference or on demands with a view to reaching an agreement.
To ensure that collective bargaining functions properly, unfair labour practices should be avoided and abandoned by both sides.
When negotiations result in an agreement, the terms of the contract should be put down in writing and embodied in a document.
Process of Collective Bargaining
Preparation
Reason for negotiating
Union leaders have to be in touch with the rank and file members to get an idea of their views and needs.
Both the parties must have the comparative data regarding terms of practice and percentage wage increase in other firms
The management needs to settle internal policy issues, regarding what concessions to make, wages to pay and changes that they are willing to make.
Discussion
parties decide the ground rules that will guide the negotiations. The principal negotiator is from the management team and he leads the committee.
3. Proposal : Chief negotiator then puts forth the initial opening statements and the possible options that exist to resolve them. Both parties then put forward their arguments and counter arguments
Alternatives to Collective Bargaining
Alternative Dispute Resolution (ADR) is a term for describing the process of resolving disputes in place of litigation. It includes arbitration, mediation, conciliation, expert determination and early neutral evaluation by a third person.