COLLECTIVE BARGAINING

Collective Bargaining Process of Negotiation Between EmployERS and a group of EmployEES Aimed at Reaching Agreements To regulate Working Conditions The interests of the employees are commonly presented by representatives of a trade union to which the employees belong.

Pre- Requisites of CB Mutual Recognition – The parties must be ready to enter agreements. - They must recognize each other and realize that adjustment and understanding is essential for the achievement of organisational goals. The parties must attain a sufficient degree of organisation - If the workers’ organisation is weak, employers can say that it does not represent the workers and will refuse to negotiate with it. Unless the workers are able to form strong and stable unions, collective bargaining will not be successful.

Pre- Requisites of CB Agreement must be observed by those to whom they apply. - The workers’ organisation must be strong enough to exercise its authority over its members. If the trade union has no power over its members, collective bargaining will not be effectively implemented. There must exist a favorable political climate, essential for successful collective bargaining.- If the government encourages collective bargaining as the best method of regulating conditions of employment, it will be successful. Where the governments restrict trade union activities, there can be no collective bargaining.

Pre- Requisites of CB A give and take policy must prevail in the organisation. The difference between two parties can be adjusted only by compromise so that an agreement can be reached. Neither side should be too rigid on its demand. Freedom of association is essential for collective bargaining. Where there is no freedom of association, there can be no collective bargaining. Freedom of association implies that the workers as well as the employers will have the right to form an organisation of their own to protect their interests.

Pre- Requisites of CB Negotiation is successful only when the parties rely ON FACTS & FIGURES to support their points of view Unfair practices should be avoided from both the parties The terms of agreement should be clearly & precisely written down in detail It is best conducted at plant level Agreement reached should be honoured and fairly implemented A provision of arbitration should be incorporated in the agreement

Pre- Requisites of CB Both the parties must have an understanding about the needs, aspirations, objectives and problems of other parties Both the parties should maturity in leadership. Both should have negotiation skills. The trade union participating in the collective bargaining process must be strong & democratic.

Characteristics Of CB The various parties of CB are employees, employers & trade unions The group action is initiated through representatives of workers It is INDUSTRIAL DEMOCRACY at WORK Complementary process and & not a competitive process Complex Process – Psychological, Power, Politics, Tough

TYPES/ FORMS of Collective Bargaining Simple Plant Bargaining – Trade union bargaining with the management. Multiple Plant Bargaining – Single factory having several plants Multiple Employer Bargaining – Bargaining between ALL TRADE UNIONS in the SAME INDUSTRY and the EMPLOYER Association of employers in the industry with SINGLE UNION in a region

Type of CB Agreements Voluntary Agreement : Direct Negotiation between the parties Settlements : Combination of Voluntary & COMPULSION. Negotiated by the OFFICERS Consent Awards: Agreement reached between the parties when the MATTER is UNDER INDUSTRIAL COURT

Collective Bargaining Process - 6 STEPS Preparing for Negotiation Identifying bargaining issues Negotiation Reaching the agreement Ratifying the agreement Administration of the agreement

Step 1- Preparation for Negotiations From EMPLOYER SIDE Prepare specific proposals for change in the contact Determine the economic package that company can offer Prepare Supportive data/ Statistical Data Bargaining Book – Points to be discussed, order of discussion From EMPLOYEE SIDE Financial position of the company & ability to pay Mgmt’s attitude towards various issues in past Attitude and Desires of Employees

Step 2- Identifying bargaining issues Wage Related Issues Supplementary Economic Benefits Institutional Issues Administrative Isssues

STEP 3 - NEGOTIATION Each side presents its INITIAL DEMAND Goes for days till FINAL agreement is reached Battle of WITS/ PLAYING OF WORDS/ THREATS OF LOCK OUTS & STRIKES

STEP 4 & 5 – Settlement & Contract Agreement After initial agreement, both the parties return to their constituencies and discuss if they have taken the right steps. Ratification – Union Negotiation team explains & puts the agreement to the union members for a VOTE Once voting is done, it formalizes as a CONTRACT

STEP 6 – Administration of the agreement Signing the agreement Implementation of the agreement ( day to day adherence)