1. COLLECTIVE BARGAINING

2. 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.

3. 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.

4. 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.

5. 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.

6. 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

7. 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.

9. 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

10. 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

11. 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

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

13. 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

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

15. 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

16. 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

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