Download VTU (Visvesvaraya Technological University) MBA 3rd Semester (Third Semester) 16MBAHR301-Industrial Relations and Legislations IR Notes Module 2 Important Lecture Notes (MBA Study Material Notes)
Negotiation
Module 2
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
Definition of Ground Rules
? Where will it take place?
? What time constraints, if any will apply?
? To what issues will negotiations be limited?
? Will there be a specific procedure to follow in an impasse is reached?
? During this phase, the parties will also exchange their initial
proposals or demands.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
Definition of Ground Rules
? Where will it take place?
? What time constraints, if any will apply?
? To what issues will negotiations be limited?
? Will there be a specific procedure to follow in an impasse is reached?
? During this phase, the parties will also exchange their initial
proposals or demands.
Clarification and Justification
? When initial positions have been exchanged both the parties will
explain amplify, clarify, encourage and justify their original demands.
This need not be confrontational.
? This is the point where one party might want to provide the other
party with any documentation that helps support its position.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
Definition of Ground Rules
? Where will it take place?
? What time constraints, if any will apply?
? To what issues will negotiations be limited?
? Will there be a specific procedure to follow in an impasse is reached?
? During this phase, the parties will also exchange their initial
proposals or demands.
Clarification and Justification
? When initial positions have been exchanged both the parties will
explain amplify, clarify, encourage and justify their original demands.
This need not be confrontational.
? This is the point where one party might want to provide the other
party with any documentation that helps support its position.
Bargaining and Problem Solving
? The?essence?of?the?negotiation?process?is?the?actual?give?and?take?in?
trying?to?hash?out?an?agreement,?a?proper bargain.?
? It?is?here?where?concessions?will?undoubtedly?need?to?be?made?by?
both?parties.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
Definition of Ground Rules
? Where will it take place?
? What time constraints, if any will apply?
? To what issues will negotiations be limited?
? Will there be a specific procedure to follow in an impasse is reached?
? During this phase, the parties will also exchange their initial
proposals or demands.
Clarification and Justification
? When initial positions have been exchanged both the parties will
explain amplify, clarify, encourage and justify their original demands.
This need not be confrontational.
? This is the point where one party might want to provide the other
party with any documentation that helps support its position.
Bargaining and Problem Solving
? The?essence?of?the?negotiation?process?is?the?actual?give?and?take?in?
trying?to?hash?out?an?agreement,?a?proper bargain.?
? It?is?here?where?concessions?will?undoubtedly?need?to?be?made?by?
both?parties.
Closure and Implementation
? The final step in the negotiation process is formalization the
agreement that has been worked out and developing and procedures
that are necessary for implementation and monitoring.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
Definition of Ground Rules
? Where will it take place?
? What time constraints, if any will apply?
? To what issues will negotiations be limited?
? Will there be a specific procedure to follow in an impasse is reached?
? During this phase, the parties will also exchange their initial
proposals or demands.
Clarification and Justification
? When initial positions have been exchanged both the parties will
explain amplify, clarify, encourage and justify their original demands.
This need not be confrontational.
? This is the point where one party might want to provide the other
party with any documentation that helps support its position.
Bargaining and Problem Solving
? The?essence?of?the?negotiation?process?is?the?actual?give?and?take?in?
trying?to?hash?out?an?agreement,?a?proper bargain.?
? It?is?here?where?concessions?will?undoubtedly?need?to?be?made?by?
both?parties.
Closure and Implementation
? The final step in the negotiation process is formalization the
agreement that has been worked out and developing and procedures
that are necessary for implementation and monitoring.
Essential Skills of Negotiation
? Problem Analysis
? Preparation
? Active listening
? Emotional control
? Verbal communication
? Problem solving skill
? Decision making-skill
? Interpersonal skill
? Ethics
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
Definition of Ground Rules
? Where will it take place?
? What time constraints, if any will apply?
? To what issues will negotiations be limited?
? Will there be a specific procedure to follow in an impasse is reached?
? During this phase, the parties will also exchange their initial
proposals or demands.
Clarification and Justification
? When initial positions have been exchanged both the parties will
explain amplify, clarify, encourage and justify their original demands.
This need not be confrontational.
? This is the point where one party might want to provide the other
party with any documentation that helps support its position.
Bargaining and Problem Solving
? The?essence?of?the?negotiation?process?is?the?actual?give?and?take?in?
trying?to?hash?out?an?agreement,?a?proper bargain.?
? It?is?here?where?concessions?will?undoubtedly?need?to?be?made?by?
both?parties.
Closure and Implementation
? The final step in the negotiation process is formalization the
agreement that has been worked out and developing and procedures
that are necessary for implementation and monitoring.
Essential Skills of Negotiation
? Problem Analysis
? Preparation
? Active listening
? Emotional control
? Verbal communication
? Problem solving skill
? Decision making-skill
? Interpersonal skill
? Ethics
Techniques of Negotiation
? Stone walling :
? Time pressure
? Delay from other side
? Impulsive change:
? The sudden change of attitude and behaviour of other party
? Gotcha :
? Indicate that you have caught them out in some way, exposing the deception or other bad thing that they
have done, whether deliberately or accidentally.
? Show how they have not followed the rules. Talk about how they have deceived you or others in the past.
Tell them how trust has been betrayed. Point out inconsistencies in what they have said, even small ones.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
Definition of Ground Rules
? Where will it take place?
? What time constraints, if any will apply?
? To what issues will negotiations be limited?
? Will there be a specific procedure to follow in an impasse is reached?
? During this phase, the parties will also exchange their initial
proposals or demands.
Clarification and Justification
? When initial positions have been exchanged both the parties will
explain amplify, clarify, encourage and justify their original demands.
This need not be confrontational.
? This is the point where one party might want to provide the other
party with any documentation that helps support its position.
Bargaining and Problem Solving
? The?essence?of?the?negotiation?process?is?the?actual?give?and?take?in?
trying?to?hash?out?an?agreement,?a?proper bargain.?
? It?is?here?where?concessions?will?undoubtedly?need?to?be?made?by?
both?parties.
Closure and Implementation
? The final step in the negotiation process is formalization the
agreement that has been worked out and developing and procedures
that are necessary for implementation and monitoring.
Essential Skills of Negotiation
? Problem Analysis
? Preparation
? Active listening
? Emotional control
? Verbal communication
? Problem solving skill
? Decision making-skill
? Interpersonal skill
? Ethics
Techniques of Negotiation
? Stone walling :
? Time pressure
? Delay from other side
? Impulsive change:
? The sudden change of attitude and behaviour of other party
? Gotcha :
? Indicate that you have caught them out in some way, exposing the deception or other bad thing that they
have done, whether deliberately or accidentally.
? Show how they have not followed the rules. Talk about how they have deceived you or others in the past.
Tell them how trust has been betrayed. Point out inconsistencies in what they have said, even small ones.
Techniques of Negotiation
? Dodge :
Shift your attention from real Issue to Side Issue
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
Definition of Ground Rules
? Where will it take place?
? What time constraints, if any will apply?
? To what issues will negotiations be limited?
? Will there be a specific procedure to follow in an impasse is reached?
? During this phase, the parties will also exchange their initial
proposals or demands.
Clarification and Justification
? When initial positions have been exchanged both the parties will
explain amplify, clarify, encourage and justify their original demands.
This need not be confrontational.
? This is the point where one party might want to provide the other
party with any documentation that helps support its position.
Bargaining and Problem Solving
? The?essence?of?the?negotiation?process?is?the?actual?give?and?take?in?
trying?to?hash?out?an?agreement,?a?proper bargain.?
? It?is?here?where?concessions?will?undoubtedly?need?to?be?made?by?
both?parties.
Closure and Implementation
? The final step in the negotiation process is formalization the
agreement that has been worked out and developing and procedures
that are necessary for implementation and monitoring.
Essential Skills of Negotiation
? Problem Analysis
? Preparation
? Active listening
? Emotional control
? Verbal communication
? Problem solving skill
? Decision making-skill
? Interpersonal skill
? Ethics
Techniques of Negotiation
? Stone walling :
? Time pressure
? Delay from other side
? Impulsive change:
? The sudden change of attitude and behaviour of other party
? Gotcha :
? Indicate that you have caught them out in some way, exposing the deception or other bad thing that they
have done, whether deliberately or accidentally.
? Show how they have not followed the rules. Talk about how they have deceived you or others in the past.
Tell them how trust has been betrayed. Point out inconsistencies in what they have said, even small ones.
Techniques of Negotiation
? Dodge :
Shift your attention from real Issue to Side Issue
Workers Participation In Management
Workers participation in management includes following.
? Workers participation in management provides a chance to employees in
organisation's decision making process.
? The workers participation may be at the shop level, departmental level or
at the top level.
? The workers participation in the management is that the willingness to
share the responsibility and accept commitment by workers in executing
decisions of management with consultation of workers.
? The workers participation is conducted through the mechanism of forums
which provide for association of workers representatives.
? The idea behind worker's participation in management is to have self
discipline and control among workers and for the smooth running of
management.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
Definition of Ground Rules
? Where will it take place?
? What time constraints, if any will apply?
? To what issues will negotiations be limited?
? Will there be a specific procedure to follow in an impasse is reached?
? During this phase, the parties will also exchange their initial
proposals or demands.
Clarification and Justification
? When initial positions have been exchanged both the parties will
explain amplify, clarify, encourage and justify their original demands.
This need not be confrontational.
? This is the point where one party might want to provide the other
party with any documentation that helps support its position.
Bargaining and Problem Solving
? The?essence?of?the?negotiation?process?is?the?actual?give?and?take?in?
trying?to?hash?out?an?agreement,?a?proper bargain.?
? It?is?here?where?concessions?will?undoubtedly?need?to?be?made?by?
both?parties.
Closure and Implementation
? The final step in the negotiation process is formalization the
agreement that has been worked out and developing and procedures
that are necessary for implementation and monitoring.
Essential Skills of Negotiation
? Problem Analysis
? Preparation
? Active listening
? Emotional control
? Verbal communication
? Problem solving skill
? Decision making-skill
? Interpersonal skill
? Ethics
Techniques of Negotiation
? Stone walling :
? Time pressure
? Delay from other side
? Impulsive change:
? The sudden change of attitude and behaviour of other party
? Gotcha :
? Indicate that you have caught them out in some way, exposing the deception or other bad thing that they
have done, whether deliberately or accidentally.
? Show how they have not followed the rules. Talk about how they have deceived you or others in the past.
Tell them how trust has been betrayed. Point out inconsistencies in what they have said, even small ones.
Techniques of Negotiation
? Dodge :
Shift your attention from real Issue to Side Issue
Workers Participation In Management
Workers participation in management includes following.
? Workers participation in management provides a chance to employees in
organisation's decision making process.
? The workers participation may be at the shop level, departmental level or
at the top level.
? The workers participation in the management is that the willingness to
share the responsibility and accept commitment by workers in executing
decisions of management with consultation of workers.
? The workers participation is conducted through the mechanism of forums
which provide for association of workers representatives.
? The idea behind worker's participation in management is to have self
discipline and control among workers and for the smooth running of
management.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
Definition of Ground Rules
? Where will it take place?
? What time constraints, if any will apply?
? To what issues will negotiations be limited?
? Will there be a specific procedure to follow in an impasse is reached?
? During this phase, the parties will also exchange their initial
proposals or demands.
Clarification and Justification
? When initial positions have been exchanged both the parties will
explain amplify, clarify, encourage and justify their original demands.
This need not be confrontational.
? This is the point where one party might want to provide the other
party with any documentation that helps support its position.
Bargaining and Problem Solving
? The?essence?of?the?negotiation?process?is?the?actual?give?and?take?in?
trying?to?hash?out?an?agreement,?a?proper bargain.?
? It?is?here?where?concessions?will?undoubtedly?need?to?be?made?by?
both?parties.
Closure and Implementation
? The final step in the negotiation process is formalization the
agreement that has been worked out and developing and procedures
that are necessary for implementation and monitoring.
Essential Skills of Negotiation
? Problem Analysis
? Preparation
? Active listening
? Emotional control
? Verbal communication
? Problem solving skill
? Decision making-skill
? Interpersonal skill
? Ethics
Techniques of Negotiation
? Stone walling :
? Time pressure
? Delay from other side
? Impulsive change:
? The sudden change of attitude and behaviour of other party
? Gotcha :
? Indicate that you have caught them out in some way, exposing the deception or other bad thing that they
have done, whether deliberately or accidentally.
? Show how they have not followed the rules. Talk about how they have deceived you or others in the past.
Tell them how trust has been betrayed. Point out inconsistencies in what they have said, even small ones.
Techniques of Negotiation
? Dodge :
Shift your attention from real Issue to Side Issue
Workers Participation In Management
Workers participation in management includes following.
? Workers participation in management provides a chance to employees in
organisation's decision making process.
? The workers participation may be at the shop level, departmental level or
at the top level.
? The workers participation in the management is that the willingness to
share the responsibility and accept commitment by workers in executing
decisions of management with consultation of workers.
? The workers participation is conducted through the mechanism of forums
which provide for association of workers representatives.
? The idea behind worker's participation in management is to have self
discipline and control among workers and for the smooth running of
management.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
Definition of Ground Rules
? Where will it take place?
? What time constraints, if any will apply?
? To what issues will negotiations be limited?
? Will there be a specific procedure to follow in an impasse is reached?
? During this phase, the parties will also exchange their initial
proposals or demands.
Clarification and Justification
? When initial positions have been exchanged both the parties will
explain amplify, clarify, encourage and justify their original demands.
This need not be confrontational.
? This is the point where one party might want to provide the other
party with any documentation that helps support its position.
Bargaining and Problem Solving
? The?essence?of?the?negotiation?process?is?the?actual?give?and?take?in?
trying?to?hash?out?an?agreement,?a?proper bargain.?
? It?is?here?where?concessions?will?undoubtedly?need?to?be?made?by?
both?parties.
Closure and Implementation
? The final step in the negotiation process is formalization the
agreement that has been worked out and developing and procedures
that are necessary for implementation and monitoring.
Essential Skills of Negotiation
? Problem Analysis
? Preparation
? Active listening
? Emotional control
? Verbal communication
? Problem solving skill
? Decision making-skill
? Interpersonal skill
? Ethics
Techniques of Negotiation
? Stone walling :
? Time pressure
? Delay from other side
? Impulsive change:
? The sudden change of attitude and behaviour of other party
? Gotcha :
? Indicate that you have caught them out in some way, exposing the deception or other bad thing that they
have done, whether deliberately or accidentally.
? Show how they have not followed the rules. Talk about how they have deceived you or others in the past.
Tell them how trust has been betrayed. Point out inconsistencies in what they have said, even small ones.
Techniques of Negotiation
? Dodge :
Shift your attention from real Issue to Side Issue
Workers Participation In Management
Workers participation in management includes following.
? Workers participation in management provides a chance to employees in
organisation's decision making process.
? The workers participation may be at the shop level, departmental level or
at the top level.
? The workers participation in the management is that the willingness to
share the responsibility and accept commitment by workers in executing
decisions of management with consultation of workers.
? The workers participation is conducted through the mechanism of forums
which provide for association of workers representatives.
? The idea behind worker's participation in management is to have self
discipline and control among workers and for the smooth running of
management.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
Definition of Ground Rules
? Where will it take place?
? What time constraints, if any will apply?
? To what issues will negotiations be limited?
? Will there be a specific procedure to follow in an impasse is reached?
? During this phase, the parties will also exchange their initial
proposals or demands.
Clarification and Justification
? When initial positions have been exchanged both the parties will
explain amplify, clarify, encourage and justify their original demands.
This need not be confrontational.
? This is the point where one party might want to provide the other
party with any documentation that helps support its position.
Bargaining and Problem Solving
? The?essence?of?the?negotiation?process?is?the?actual?give?and?take?in?
trying?to?hash?out?an?agreement,?a?proper bargain.?
? It?is?here?where?concessions?will?undoubtedly?need?to?be?made?by?
both?parties.
Closure and Implementation
? The final step in the negotiation process is formalization the
agreement that has been worked out and developing and procedures
that are necessary for implementation and monitoring.
Essential Skills of Negotiation
? Problem Analysis
? Preparation
? Active listening
? Emotional control
? Verbal communication
? Problem solving skill
? Decision making-skill
? Interpersonal skill
? Ethics
Techniques of Negotiation
? Stone walling :
? Time pressure
? Delay from other side
? Impulsive change:
? The sudden change of attitude and behaviour of other party
? Gotcha :
? Indicate that you have caught them out in some way, exposing the deception or other bad thing that they
have done, whether deliberately or accidentally.
? Show how they have not followed the rules. Talk about how they have deceived you or others in the past.
Tell them how trust has been betrayed. Point out inconsistencies in what they have said, even small ones.
Techniques of Negotiation
? Dodge :
Shift your attention from real Issue to Side Issue
Workers Participation In Management
Workers participation in management includes following.
? Workers participation in management provides a chance to employees in
organisation's decision making process.
? The workers participation may be at the shop level, departmental level or
at the top level.
? The workers participation in the management is that the willingness to
share the responsibility and accept commitment by workers in executing
decisions of management with consultation of workers.
? The workers participation is conducted through the mechanism of forums
which provide for association of workers representatives.
? The idea behind worker's participation in management is to have self
discipline and control among workers and for the smooth running of
management.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
Definition of Ground Rules
? Where will it take place?
? What time constraints, if any will apply?
? To what issues will negotiations be limited?
? Will there be a specific procedure to follow in an impasse is reached?
? During this phase, the parties will also exchange their initial
proposals or demands.
Clarification and Justification
? When initial positions have been exchanged both the parties will
explain amplify, clarify, encourage and justify their original demands.
This need not be confrontational.
? This is the point where one party might want to provide the other
party with any documentation that helps support its position.
Bargaining and Problem Solving
? The?essence?of?the?negotiation?process?is?the?actual?give?and?take?in?
trying?to?hash?out?an?agreement,?a?proper bargain.?
? It?is?here?where?concessions?will?undoubtedly?need?to?be?made?by?
both?parties.
Closure and Implementation
? The final step in the negotiation process is formalization the
agreement that has been worked out and developing and procedures
that are necessary for implementation and monitoring.
Essential Skills of Negotiation
? Problem Analysis
? Preparation
? Active listening
? Emotional control
? Verbal communication
? Problem solving skill
? Decision making-skill
? Interpersonal skill
? Ethics
Techniques of Negotiation
? Stone walling :
? Time pressure
? Delay from other side
? Impulsive change:
? The sudden change of attitude and behaviour of other party
? Gotcha :
? Indicate that you have caught them out in some way, exposing the deception or other bad thing that they
have done, whether deliberately or accidentally.
? Show how they have not followed the rules. Talk about how they have deceived you or others in the past.
Tell them how trust has been betrayed. Point out inconsistencies in what they have said, even small ones.
Techniques of Negotiation
? Dodge :
Shift your attention from real Issue to Side Issue
Workers Participation In Management
Workers participation in management includes following.
? Workers participation in management provides a chance to employees in
organisation's decision making process.
? The workers participation may be at the shop level, departmental level or
at the top level.
? The workers participation in the management is that the willingness to
share the responsibility and accept commitment by workers in executing
decisions of management with consultation of workers.
? The workers participation is conducted through the mechanism of forums
which provide for association of workers representatives.
? The idea behind worker's participation in management is to have self
discipline and control among workers and for the smooth running of
management.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
Definition of Ground Rules
? Where will it take place?
? What time constraints, if any will apply?
? To what issues will negotiations be limited?
? Will there be a specific procedure to follow in an impasse is reached?
? During this phase, the parties will also exchange their initial
proposals or demands.
Clarification and Justification
? When initial positions have been exchanged both the parties will
explain amplify, clarify, encourage and justify their original demands.
This need not be confrontational.
? This is the point where one party might want to provide the other
party with any documentation that helps support its position.
Bargaining and Problem Solving
? The?essence?of?the?negotiation?process?is?the?actual?give?and?take?in?
trying?to?hash?out?an?agreement,?a?proper bargain.?
? It?is?here?where?concessions?will?undoubtedly?need?to?be?made?by?
both?parties.
Closure and Implementation
? The final step in the negotiation process is formalization the
agreement that has been worked out and developing and procedures
that are necessary for implementation and monitoring.
Essential Skills of Negotiation
? Problem Analysis
? Preparation
? Active listening
? Emotional control
? Verbal communication
? Problem solving skill
? Decision making-skill
? Interpersonal skill
? Ethics
Techniques of Negotiation
? Stone walling :
? Time pressure
? Delay from other side
? Impulsive change:
? The sudden change of attitude and behaviour of other party
? Gotcha :
? Indicate that you have caught them out in some way, exposing the deception or other bad thing that they
have done, whether deliberately or accidentally.
? Show how they have not followed the rules. Talk about how they have deceived you or others in the past.
Tell them how trust has been betrayed. Point out inconsistencies in what they have said, even small ones.
Techniques of Negotiation
? Dodge :
Shift your attention from real Issue to Side Issue
Workers Participation In Management
Workers participation in management includes following.
? Workers participation in management provides a chance to employees in
organisation's decision making process.
? The workers participation may be at the shop level, departmental level or
at the top level.
? The workers participation in the management is that the willingness to
share the responsibility and accept commitment by workers in executing
decisions of management with consultation of workers.
? The workers participation is conducted through the mechanism of forums
which provide for association of workers representatives.
? The idea behind worker's participation in management is to have self
discipline and control among workers and for the smooth running of
management.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
Definition of Ground Rules
? Where will it take place?
? What time constraints, if any will apply?
? To what issues will negotiations be limited?
? Will there be a specific procedure to follow in an impasse is reached?
? During this phase, the parties will also exchange their initial
proposals or demands.
Clarification and Justification
? When initial positions have been exchanged both the parties will
explain amplify, clarify, encourage and justify their original demands.
This need not be confrontational.
? This is the point where one party might want to provide the other
party with any documentation that helps support its position.
Bargaining and Problem Solving
? The?essence?of?the?negotiation?process?is?the?actual?give?and?take?in?
trying?to?hash?out?an?agreement,?a?proper bargain.?
? It?is?here?where?concessions?will?undoubtedly?need?to?be?made?by?
both?parties.
Closure and Implementation
? The final step in the negotiation process is formalization the
agreement that has been worked out and developing and procedures
that are necessary for implementation and monitoring.
Essential Skills of Negotiation
? Problem Analysis
? Preparation
? Active listening
? Emotional control
? Verbal communication
? Problem solving skill
? Decision making-skill
? Interpersonal skill
? Ethics
Techniques of Negotiation
? Stone walling :
? Time pressure
? Delay from other side
? Impulsive change:
? The sudden change of attitude and behaviour of other party
? Gotcha :
? Indicate that you have caught them out in some way, exposing the deception or other bad thing that they
have done, whether deliberately or accidentally.
? Show how they have not followed the rules. Talk about how they have deceived you or others in the past.
Tell them how trust has been betrayed. Point out inconsistencies in what they have said, even small ones.
Techniques of Negotiation
? Dodge :
Shift your attention from real Issue to Side Issue
Workers Participation In Management
Workers participation in management includes following.
? Workers participation in management provides a chance to employees in
organisation's decision making process.
? The workers participation may be at the shop level, departmental level or
at the top level.
? The workers participation in the management is that the willingness to
share the responsibility and accept commitment by workers in executing
decisions of management with consultation of workers.
? The workers participation is conducted through the mechanism of forums
which provide for association of workers representatives.
? The idea behind worker's participation in management is to have self
discipline and control among workers and for the smooth running of
management.
FirstRanker.com - FirstRanker's Choice
Collective Bargaining &
Negotiation
Module 2
? https://www.youtube.com/watch?v=SeuxXg5a-nQ
Meaning
? Collective?bargaining?is?a?process?of?joint?decision?making?in?
work?places.?
? It?is?the?process?of?negotiation?between??firms??and?workers??
representatives? for? the? purpose? of? establishing? mutually?
agreeable? conditions? of? employment? to? enhance? the?
harmonies?working?status?at?the?work?places.?
? It?is?called??collective ?
???because?both?the?employer?and?the?employee?act?as?a?group?rather???????
???than?as?individuals.?
???It?is?known?as??bargaining?
? ?because?the?method?of?reaching?an?agreement?involves?proposals?
and?counter?proposals,?offers?and?counter?offers
Definition
International?Labor?Organization?(ILO)?has?defined?collective?bargaining?
as?
?Negotiation? about? working? conditions? and? terms? of? employment?
between? and? employer? and? a? group? of? employees? or? one? or? more?
employee,? organization? with? a? view? to? reaching? and? agreement?
wherein?the?terms?serve?as?a?code?of?defining?the?rights?and?obligations?
of? each? party? in? their? employment? /industrial? relations? with? one?
another.??
Objective of collective bargaining
1. To foster and maintain cordial and harmonious relations
between the employer/management and the employees.
2. To protect the interests of both the employer and the
employees.
3. To keep the outside, i.e., the government interventions at
bay.
4. To promote industrial democracy.
Following are the essential prerequisites for collective bargaining.
? Strong representative trade union : In collective Bargaining there is
existence of a strong representative trade union in the industry that believes
in constitutional means for settling the disputes.
? Management tries to Integrate various parties:- Existence of a strong
and enlightened management which may integrate the different parties i.e.
employees, owners, government, consumers and society.
? Agreement on Objective :- In collective Bargaining, an agreement is
made on the basic objectives of the organization between the employer and
the employee and on mutual rights and liabilities.
? Method of Negotiation :- There is a democratic methods of
negotiation process. The existence of fact finding approach and
willingness to use new methods and roles for the solution of
industrial problems.
? Necessary Records must be kept :- Proper records for the
problems should be maintained for future reference.
? Shop floor (Plant) level :- Collective bargaining should best be
conducted at shop floor level. If there is more than one plant of the
firm, the local management should be delegated proper authority
to negotiate with the local trade union.
? Unfair practices must be avoided :- In order to make collective
bargaining functions properly unfair labour practices must be
avoided by both the parties.
? Arbitration :- The contract must include arbitration clause in
case there is a dispute. The institution of collective bargaining
represents a fair and democratic attempt at resolving mutual
disputes.
? In? India,? the?first? collective? bargaining? agreement? was? concluded? in?
1920? at? the?instance? of? Mahatma? Gandhi? to? regulate? labour-
management? relations? between? a? group? of? employers? and?
their?workers?in?the?textile?industry?in?Ahmedabad.
Features / Characteristics of Collective
Bargaining
? 1-Collective Process
The? representatives? of? both? the? management? and? the? employees?
participate?in?it.
Employer? is? represented? by? its? delegates? and? ,? on?the? other? side,?
employees?are?represented?by?their?trade?union.?
Both?the?groups?sit?together?at?the?negotiating?table?and?reach?at?some?
agreement?acceptable?to?both.
2-Continuous Process
? It?is?a?continuous?process.?It?does?not?commence?with?negotiations?
and?end?with?an?agreement.
? It?establishes?regular?and?stable?relationship?between?the?parties?
involved.?
? It?involves?not?only?the?negotiation?of?the?contract,?but?also?the?
administration?or?application?of?the?contract?also.?It?is?a?process?that?
goes?on?for?365?days?of?the?year.
3.Flexible and Mobile
? It?has?fluidity.?There?is?no?hard?and?fast?rule?for?reaching?
an?agreement.?
? There?is?ample?scope?for?compromise.?
? A?spirit?of?give-and-take?works?unless?final?agreement?acceptable?to?
both?the?parties?is?reached.
4-Bipartite Process
C.B.?is?a?two?party?process.?
Both? the? parties??employers? and? employees?collectively? take?some?
action.?
There?is?no?intervention?of?any?third?party.?
It? is?mutual? give? ?? and??take? rather? than? a? take-it-or-leave? it? method?
of?arriving?at?the?settlement?of?a?dispute.
5- Dynamic
?C.B.?is?a?dynamic?process?because?the?way?agreements?are?arrived?at,?
the?way?they?are?implemented,?the?mental?make-up?of?parties?involved?
keeps?changing.?
As?a?result,?the?concept?itself?changes,?grows?and?expands?overtime.?
It?is?scientific,?factual?and?systematic.
6-It?is?an?Art
Collective?bargaining?is?an?art?,?an?advanced?form?of?human?relations.
7?Discipline?in?Industry
?C.B.?is?an?attempt?in?achieving?and?maintaining?discipline?in?the?
industry.
8?Industrial?Juris?prudence
?It?is?an?effective?step?in?promoting?industrial?jurisprudence
Functions of Collective Bargaining
?
(1)C.B.?as?a?technique?of?long-?run?social?change.(2)C.B.?as?a?peace?treaty?between?two?parties?in?continualconflict.
(3)
C.B.?as?a?system?of?industrial?jurisprudence.?1-
Long- Run Social Change
:?C.B.?in?its?broader?aspect?is?notconfined?only?to?the?economic?relations?between?employers?andemployees.?Perlman?says,???It?is?a?technique?whereby?an?inferior?social?class?or?group?carries?on?a?never-?slackening?pressure?for?a?bigger?share?in?the?social?soverneignty?as?well?as?for?more?welfare,security?and?liberty?for?
its?individual?msmbers.?C.B.?manifestsitself?equally?in?politics,?legislation,?court?litigation,?governmentadministration,?religion,?education?and?propaganda.?C.B.?acts?as?an?agent?to?bring?about?the?social?change,i.e.,?itcontributes?towards?the?change?in?nteraction?patterns,?values?andnormative?system?of?the?society?at?
large.The?contribution?of?C.B.?towards?the?process?of?social?change?brings?to?light?two?important?implications?:
i.
C.B.?is?not?an?abstract?class?struggle,?but?is?rather?pragmaticand?concrete.?The?inferior?class?s?aim?is?to?acquire?a?largemeasure?of?economic?and?political?control?over?crucialdecisions?in?the?areas?of?its?most?immediate?interest,?and?to?be?recognized?in?other?areas?of?decision-?making.
ii.
C.B.?adapts?itself?to?the?changing?social,?legal?and?economicenvironment.?It?is?a?source?of?stability?in?a?changingenvironment.?The?wage-?earners?have?enhanced?their?socialand?economic?position?---?in?absolute?terms?and?in?relation?toother?groups?---?and?at?the?same?time?,?the?management?hasattained?a?large?measure?of?
power?and?dignity.These?gainswere?not?registered?in?one?great?revolutionary?change,?but
Functions of C.B.
Social?ChangeIndustrial?PeaceIndustrial?Democracy
6
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
(1)?C.B.?as?a?technique?of?long-?run?social?change.
(2)?C.B.?as?a?peace?treaty?between?two?parties?in?continual?conflict.
(3)?C.B.?as?a?system?of?industrial?jurisprudence.?
? 1-Long- Run Social Change
? C.B.?in?its?broader?aspect?is?not?confined?only?to?the?economic?
relations?between?employers?and?employees.
? C.B.?adapts?itself?to?the?changing?social,?legal?and?economic?
environment.?It?is?a?source?of?stability?in?a?changing?environment.
? ?The?wage-?earners?have?enhanced?their?social?and?economic?position?
---?in?absolute?terms?and?in?relation?to?other?groups?---?and?at?the?
same?time?,?the?management?has?attained?a?large?measure?of?power?
and?dignity.
2-Peace Treaty
C.B.?is?a?sort?of?peace?treaty?between?two?parties?in?continual?conflict.?
However,?the?settlement?between?the?two?parties?is?a?compromise.?
The?extent?to?which?each?side?is?willing?to?accept?less?than?its?
original?bargaining?demand?depends,?in?part,?on?how?strong?it?is?vis-?-
vis?its?opponent.
? ?The?compromise?is?a?temporary?truce?with?neither?side?being?
completely?satisfied?with?the?results.?
? Each?would?like?to?modify?it?at?the?earliest?opportunity.?
? Since?the?contract?is?almost?always?of?a?short?duration,?each?begins?
immediately?to?prepare?a?new?list?of?demands,?and?to?build?up?its?
bargaining?strength?in?anticipation?of?the?next?power?skirmish.??
? But?in?a?majority?of?cases,?C.B.?agreements?are?signed?before?either?
opponent?fires?a?shot.
3-Industrial Juris prudence
:?C.B.?creates?a?system?of??industrial?jurisprudence?.
?It?is?a?method?of?introducing?civil?rights?into?industry,?i.e.,?of?requiring?
that?management?be?conducted?by?rules?rather?than?by?arbitrary?
decisions.???
It?establishes?rules?which?define?and?restrict?the?traditional?authority?
exercised?by?employers?over?their?employees,?placing?a?part?of?the?
authority?under?the?joint?control?of?union?and?management.
? It?is?a?rule-?making?or?legislative?process,?in?the?sense?that?it?
formulates?the?terms?and?conditions?under?which?labour?and?
management?will?cooperate?and?work?together?over?a?certain?
stated?period.
? -?It?is?an?executive?process,?for?both?management?and?trade?union?
officials?share?the?responsibility?of?enforcing?the?rules.
? -?It?is?a?judicial?process,?for?in?every?collective?agreement?there?is?a?
clause/?provision?regarding?the?interpretation?of?the?agreement.
Essential Prerequisites of Successful Collective
Bargaining
1.Existence?of?a?strong?representative?trade?union?in?the?industry?that?
believes?in?constitutional?means?for?settling?the?disputes.
2.Existence? of? strong? and?enlightened? management? which? can?
integrate?the?different?parties,?i.e.,?employees,?owners,?consumers?and?
society?or?government.
3.Agreement? on? basic? objectives? of? the?origination? between? the?
employer?and?the?employees?and?on?mutual?rights?&liabilities?should?
be?there.
4.Existence? of? a? fact-? finding? approach? and? willingness? to? use? new?
methods?and?tools?for?the?solution?of?industrial?problems.
5.Negotiations? should? be? based? on? facts? and? figures? and? both? the?
parties?should?adopt?constructive?approach.
6.Proper?records?for?the?problem?should?be?maintained.
7.C.B.? should? be? best? conducted? at? plant? level.? It? means? if?there? are?
more? than? one? plant? of? the? firm,? the? local? management? should? be?
delegated?proper?authority?to?negotiate?with?the?local?trade?union.
8.In?order?that?C.B.?functions?properly?,?unfair?labour??practices?must?be?
avoided?by?both?the?parties.
9.There?must?be?change?in?the?attitude?of?employers?and?employees.?
They? should? realize? that? differences? can? be? resolved? peacefully? on?
negotiating?table?without?the?assistance?of?third?party.
10.?No? party? should? take? rigid? attitude.?They? should? enter? in? to?
negotiation?with?a?view?to?reaching?an?agreement.
Collective Bargaining Process
(1) preparation for negotiation
(2) negotiation stage
(3) signing the agreement
(4) follow up action
1. PREPARATION FOR NEGOTIATION
? This has become a pre ? requisite to collective bargaining in view of
several reasons.
? Consultation with the lower level members of their respective
organizations can help both the parties to obtain valuable
information and evolve specific bargaining table approaches.
? The negotiation team should consist of representatives of both the
parties with adequate knowledge and skills for negotiation.
? Again the technical assistance of legal and public relations experts can
also be utilized gainfully in the collective bargaining process
? Finally care should be taken to pre-plan with mutual consent the
meeting places, ground rules relating to transcripts of the sessions ,
publicity releases
2. THE NEGOTIATION
? Methodology for bargaining is very important in negotiating process.
? As a bargaining methodology it is desirable to list all the bargaining
items
? These bargaining items could be separated into two parts ?
? The cost or financial items
? The other for non cost or non financial items
? The range of the objectives could be decided, which could be like
? Realistic: The realistic goal is what both the parties fully expect that it
is achievable, logical and based on facts.
? Optimistic: The optimistic goal for particular item would be what the
negotiator thinks can be achieved. But the negotiation process might
have to go through various odds and conditions may not be
favourable.
? Pessimistic objectives. The pessimistic goal would be a possible
outcome if everything did not go as well as expected, but definitely
within the acceptance range of the party.
Opening the negotiation
? Give all the participants including yourself three or four minutes to
settle down; to gather papers together and wait for any potential
latecomers.
? Normally management representatives act as the chairman of
proceedings.
While giving the first reply to the management,
union may be borne the following points in mind:
(1) The number of points which can be communicated should be kept to a
minimum. It is better to repeat and assert the same point using different
language than to try to cover too much ground. Use plain language and avoid
the use of jargons.
(2) Do not get bogged down in prolonged discussion of one or two of the
items raised by the trade union side. Deal with all the points if necessary
those items must be grouped together.
(3) Address your remarks to the main spokesman. Loud shouting and bad
temper are not substitutes for a good case well presented.
(4) Identify the areas of agreement because this gives the impression that
progress is being made. Have you left yourself with enough room in which to
bargain subsequently?
? (5) Will the first statement be made solely by the chief spokesman or
could it be made by certain other members of your team? Are there
some more members who can contribute as well?
? (6) Even if the management team feels that there is no hope of
reaching an agreement, managements case may be presented in a
broad outline. Management may remember that their contact with
the trade union is a continuing one. One should not worry about too
much of carry over of these negotiations for the next sessions. This
would give adequate time to analyze the situation.
? The middle period may contain one or more adjournments made at
the request of either party. These can be used to:
(1) allow the other party to evaluate either new offer or new
information;
(2) consult with or report back their group;
(3) Settle things down; and
(4) Prevent negotiating fatigue.
3. SIGNING THE AGREEMENT
? (a) Procedure agreements
? v Procedure agreements spell out the steps by which the industrial relations
processes are carried out.
? (b) Substantive agreements
? These contain the ?substance? of any agreement on terms and conditions of
the employment.
? They cover payments of all kinds, i.e. wage rates, shift allowances, incentive
payments also holidays and fringe benefits such as pensions and sick pay and
various other allowances.
4. follow up action
Suggestions for effective implementation of collective bargaining:
Union should be made strong by creating awareness among workers.
Unanimity among workers:
Before entering into negotiations there must be unanimity among workers. At least the
representatives of workers should be able to present the opinion or demands of majority
of workers or else, the management can take advantage of diverse demands of the
workers
Strength of both parties:
Both the parties in negotiation should be equal in strength. One party dominating the
other is against the whole nature of collective bargaining. It should always be a ?give and
take? process and should not be a ?you give and we take? bargain and we collect process
from either side.
The Five steps of the negotiation process are
1.Preparation and Planning.
2.Definition of Ground Rules.
3.Clarification and Justification.
4.Bargaining and Problem Solving.
5.Closure and Implementation.
Preparation and planning
? Before?the?start?of?negations,?one?must?be?aware of the conflict,?
? the?history?leading?to?the?negotiation?
? the?people?involved?and
? their?perception?of?the?conflict?expectations?from?the?negotiations?etc.
Definition of Ground Rules
? Where will it take place?
? What time constraints, if any will apply?
? To what issues will negotiations be limited?
? Will there be a specific procedure to follow in an impasse is reached?
? During this phase, the parties will also exchange their initial
proposals or demands.
Clarification and Justification
? When initial positions have been exchanged both the parties will
explain amplify, clarify, encourage and justify their original demands.
This need not be confrontational.
? This is the point where one party might want to provide the other
party with any documentation that helps support its position.
Bargaining and Problem Solving
? The?essence?of?the?negotiation?process?is?the?actual?give?and?take?in?
trying?to?hash?out?an?agreement,?a?proper bargain.?
? It?is?here?where?concessions?will?undoubtedly?need?to?be?made?by?
both?parties.
Closure and Implementation
? The final step in the negotiation process is formalization the
agreement that has been worked out and developing and procedures
that are necessary for implementation and monitoring.
Essential Skills of Negotiation
? Problem Analysis
? Preparation
? Active listening
? Emotional control
? Verbal communication
? Problem solving skill
? Decision making-skill
? Interpersonal skill
? Ethics
Techniques of Negotiation
? Stone walling :
? Time pressure
? Delay from other side
? Impulsive change:
? The sudden change of attitude and behaviour of other party
? Gotcha :
? Indicate that you have caught them out in some way, exposing the deception or other bad thing that they
have done, whether deliberately or accidentally.
? Show how they have not followed the rules. Talk about how they have deceived you or others in the past.
Tell them how trust has been betrayed. Point out inconsistencies in what they have said, even small ones.
Techniques of Negotiation
? Dodge :
Shift your attention from real Issue to Side Issue
Workers Participation In Management
Workers participation in management includes following.
? Workers participation in management provides a chance to employees in
organisation's decision making process.
? The workers participation may be at the shop level, departmental level or
at the top level.
? The workers participation in the management is that the willingness to
share the responsibility and accept commitment by workers in executing
decisions of management with consultation of workers.
? The workers participation is conducted through the mechanism of forums
which provide for association of workers representatives.
? The idea behind worker's participation in management is to have self
discipline and control among workers and for the smooth running of
management.
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This post was last modified on 18 February 2020