COLLECTIVE BARGAININ BARGAINING G
Collective bargaining is process of joint decision making and basically represents a democratic way of life in industry. It is the process of negotiation between firm’s and workers’ representatives for the purpose of establishing mutually agreeable conditions of employment. It is a technique adopted by two parties to reach an understanding acceptable to both through the process of discussion and negotiation. ILO has defined collective bargaining as, negotiation about working conditions and terms of employment between an employer and a group of employees or one or more employee, organization with a view to reaching an agreement wherein the terms serve as a code of defining the rights and obligations of each party in their employment relations with one another. Collective bargai Collective bargaining ning invo involves lves discu discussions ssions and negot negotiation iations s betwee between n two groups as to the terms and conditions of employment. It is called ‘coll ‘collect ective ive’’ bec becaus ause e bot both h the emp employ loyer er and the emp employ loyee ee act as a group rather than as individuals. It is known as ‘bargaining’ because the method of reaching an agreement involves proposals and counter prop pr opo osa sals ls,, of offe ferrs an and d co coun unte terr off ffer ers s an and d ot othe herr ne nego goti tiat atio ions ns..
Thus collective bargaining: •
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is a co coll llec ecti tive ve pr proc oces ess s in whi which ch re repr pres esen enta tati tive ves s of bo both th th the e management and employees participate. is a co cont ntin inuo uous us pr proc oces ess s wh whic ich h ai aims ms at es esta tabl blis ishi hing ng st stab able le relationships between the parties involved. not only involves the bargaining agreement, but also involves the implementation of such an agreement. attempts in achieving discipline in the industry is a flexible approach, as the parties involved have to adopt a flexible attitude towards negotiations.
Forms of Bargaining A collective bargaining process generally consists of four types of activities- distributive bargaining, integrative bargaining, attitudinal restructuring and intra-organizational bargaining.
Distributive bargaining: It involves haggling over the distribution of surplus. Under it, the economic issues like wages, salaries and bonus are discussed. In distributive bargaining, one party’s gain is another party’s loss. This is most commonly explained in terms of a pie. Disputants can work together to make the pie bigger, bigger, so there is enough for both of them to have as much as they want, or they can focus on cutting the pie up, trying to get as much as they can for themselves. In general, distributive bargaining tends to be more competitive. This type of bargaining is also Known as conjunctive bargaining. Integrative bargaining: This involves negotiation of an issue on which both the parties may gain, or at least neither party loses. For example, representatives of employer and employee sides may bargain over the better training programme or a better job evaluation method. Here, both the parties are trying to make more of something. In general, it tends to be more cooperative than distributive bargaining. This type of bargaining is also known as cooperative bargaining. Attitudinal restructuring: This involves shaping and reshaping some attitudes like trust or distrust, friendliness or hostility between labor and management. When there is a backlog of bitterness between both the parties, attitudinal restructuring is required to maintain smooth and harmonious industrial relations. It develops a bargaining environment and creates trust and cooperation among the parties. Intra-organizational bargaining: It generally aims at resolving internal conflicts. This is a type of maneuvering to achieve consensus with the workers and management. Even within the union there may be differences d ifferences between groups. For example, skilled workers may feel that they are neglected or women workers may feel that their interests are not looked after properly. properly.
Within the management also, there may be differences. diff erences. Trade Trade unions maneuver to achieve consensus among the conflicting groups. Characteristics of Collective Bargaining It is a gr grou oup p pr proc oces ess, s, wh wher erei ein n on one e gr grou oup p, re repr pres esen enti ting ng th the e employers, and the other, representing the employees, sit together to negotiate terms of employment. Negotiations form an important aspect of the process of collective bargaining i.e., there is considerable scope for discussion, compromise or mutual give and take in collective bargaining. Collective bargaining is a formalized process by which employers and independent trade unions negotiate terms and conditions of employment and the ways in which certain employment-related issues are to be regulated at national, organizational and workplace levels. •
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Collective bargaining is a process in the sense that it consists of a number of steps. It begins with the presentation of the charter of demands and ends with reaching an agreement, which would serve as the basic law governing labor management relations over a period of time in an enterprise. Moreover, Moreover, it is flexible process and not fixed or static. Mutual trust and understanding serve as the by products of harmonious relations between b etween the two parties. It a bipartite process. This means there are always two parties involved in the process of collective bargaining. The negotiations generally take place between the employees and the management. It is a form of participation. Collective bargaining is a complementary process i.e. each party needs something that the other party has; labor can increase productivity and management can pay better for their efforts. Collectiv Collec tive e bar bargai gainin ning g ten tends ds to imp improv rove e the rel relati ations ons bet betwee ween n workers and the union on the one hand and the employer on the other. Collective Bargaining is continuous process. It enables industrial democracy to be effective. It uses cooperation and consensus for settling disputes rather than conflict and confrontation. Collectiv Collec tive e bar bargai gainin ning g tak takes es int into o acc accoun ountt day to day cha change nges, s, policies, potentialities, capacities and interests.
It is a political activity frequently undertaken by professional negotiators
Collective Bargaining Process Collective bargaining generally includes negotiations between the two parties (employees’ representatives and employer’s representatives). Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment. Often employees are represented in the bargaining by a union or other labor organization. The result of collective bargaining procedure is called the collective bargaining agreement (CBA). Collective agreements may be in the form of procedural agreements or substantive agreements. Procedural agreements deal with the relationship between workers and management and the procedures to be adopted for resolving individual or group disputes. This will normally include procedures in respect of individual grievances, disputes and discipline. discipl ine. Frequently, Frequently, procedural agreements are put into the company rule book which provides information on the overall terms and conditions of employment and codes of behavior behavior.. A substantive agreement deals with specific issues, such su ch as basic pay, overtime premiums, bonus arrangements, holiday entitlements, hours of work, etc. In many companies, agreements have a fixed time scale and a collective bargaining process will review the procedural agreement when negotiations take place on pay and conditions of employment.
The collective bargaining process comprises of five core steps: Prepare:: This phase involves composition of a negotiation team. 1. Prepare The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. In this phase both the employer’s representatives and the union examine their own situation in order to develop the issues that they believe will be most important. The first thing to be done is to determine whether there is actually any reason to negotiate at all. A correct understanding of the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required. Discuss:: He Here re,, th the e pa part rtie ies s de deci cide de th the e gr grou ound nd ru rule les s th that at wil willl 2. Discuss guide the negotiations. A process well begun is half done and this is no less true in case of collectiv ive e bargainin ing. g. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached.
3. Propose: This phase involves the initial opening statements and
the possible options that exist to resolve them. In a word, this phase could be descr described ibed as ‘bra ‘brainstor instorming’ ming’.. The exchange of messages takes place and opinion of both the parties is sought. 4. Bargain: negotiations are easy if a problem solving attitude is
adopte adop ted. d. Th This is st stag age e co comp mpri rise ses s th the e ti time me wh when en ‘w ‘wha hatt if ifs’ s’ an and d ‘supposals’ are set forth and the drafting of agreements take place. 5. Settlement: Once the parties are through with the bargaining
process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. This stage is described as consisting of effective joint impl im plem emen enta tati tion on of th the e ag agre reem emen entt th thro roug ugh h sh shar ared ed vi visi sion ons, s, strategic planning and negotiated change.
Importance of Collective Bargaining Collec Coll ecti tive ve ba barg rgain ainin ing g in incl clud udes es no nott on only ly ne nego goti tiat atio ions ns be betw twee een n th the e employers and unions but also includes the process of resolving labormanage man agemen mentt con conflic flicts. ts. Thu Thus, s, col collec lectiv tive e bar bargain gaining ing is, ess essent ential ially ly,, a recognized way of creating a system of industrial jurisprudence. It acts as a method of introducing civil rights in the industry, that is, the mana ma nage geme ment nt sh shou ould ld be co cond nduc ucte ted d by ru rule les s ra rath ther er th than an ar arbit bitra rary ry decisi dec ision on maki making. ng. It est establi ablishe shes s rul rules es whi which ch def define ine and res restri trict ct the traditional authority exercised by the management.
Importance to employees Collect Colle ctiv ive e ba barg rgai ainin ning g de deve velo lops ps a se sens nse e of se self lf re respe spect ct an and d responsibility among the employees. •
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It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group. Collective bargaining Collective bargaining incre increases ases the mora morale le and produ productivit ctivity y of employees. It restricts management’s freedom for arbitrary action against the employees. Moreover, unilateral actions by the employer are also discouraged. Effective collective bargaining machinery strengthens the trade unions movement. The workers feel motivate ted d as they can approach the management on various matters and bargain for higher benefits. It helps in securing a prompt and fair settlement of grievances. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced.
Importance to employers 1. It becomes becomes easier easier for the managem management ent to resolve resolve issues issues at the bargaining level rather than taking up complaints of individual workers. 2. Collec Collectiv tive e bar bargai gainin ning g ten tends ds to pro promot mote e a sen sense se of job securit security y among employees and thereby tends to reduce the cost of labor turnover to management.
3. Collec Collectiv tive e bar bargai gainin ning g ope opens ns up the cha channe nnell of communic communicati ation on between the workers and the management and increases worker participation in decision making. 4. Collective Collective bargaining bargaining plays plays a vital role role in settling settling and preventing preventing industrial disputes. Importance to society 1. Colle Collective ctive bargainin bargaining g leads to industrial industrial peace peace in the country country 2. It re resu sult lts s in es esta tabli blish shme ment nt of a ha harm rmon onio ious us in indu dust stri rial al cli clima mate te which supports which helps the pace of a nation’s efforts towards economic and social development since the obstacles to such a development can be reduced considerably. considerably. 3. The The di disc scri rimi mina nati tion on an and d ex expl ploi oita tati tion on of wo work rker ers s is co cons nsta tant ntly ly being checked. It pr pro ovid ide es a me meth thod od or th the e re regu gula lati tio on of th the e co cond ndit itio ions ns of employment of those who are directly concerned about them.
LEVELS OF COLLECTIVE BARGAINING Collective bargaining operates at three levels:
1. National level 2. Sector or industry level 3. Company/enterprise level Economy-wide (national) bargaining is a bipartite or tripartite form of negotiation between union confederations, central employer associations and government agencies. It aims at providing a floor for lower-level bargaining on the terms of employment, often taking into account macroeconomic goals. Sectoral barga Sectoral bargaining, ining, whi which ch aim aims s at the standardi standardizat zation ion of the term te rms s of em empl ploy oyme ment nt in on one e in ind dus ustr try y, in incl clud ude es a ran ange ge of bargaining patterns. Bargaining may be either broadly or narrowly defined in terms of the industrial activities covered and may be eith ei ther er sp spli litt up ac acco cord rdin ing g to te terr rrit itor oria iall su subu buni nits ts or co cond nduc ucte ted d nationally.
The thir ird d ba barrgain inin ing g level in inv volv lve es the company an and d/or esta es tabl blis ishm hmen entt. As a su supp pple leme ment ntar ary y typ ype e of ba barrga gain inin ing, g, it emphasizes the point that bargaining levels need not be mutually exclusive.
THEORIES OF TRADE UNION MOVEMENT :-
Karl Marx theory--Class conflict and communist manifestoAccording to Mark trade union is the natural income of capitalism. They perform a necessary and useful task in protecting wages and improper working condition. They should not limit themselves to these goals. Rather they should use their power to emancipate e mancipate the working class by putting an end to the capitalist system. Mark believed that the labor movement was pure and simple trade union, with workers re remaining maining subordinate to the owners of the industry. industry. He emphasized a role for intellectual, to imbue and inspire in workers a class and political consciousness, outside the economic straggle, and outside the sphere of relation between works and employers.
The so called intellectual have however failed in providing the kind of leadership expected of them not only in economic, but also in the political share. In India the trade union leadership was largely from among the individual and elite group of the society. society. SYDNEY AND BEATRICE BEATRICE WEBB THEORY THE ORY The Socialist Pattern of Society The Webb’ Webb’ss viewed the role of trade unions as move than first winning economic benefits of the members. They saw a role for unions to socialism through political action. The Webb’ Webb’ss too, like Marx observed that the market pressure on workers to organize into unions to protect their economic interests. The condition of employment was determined by the chain of bargains that linked the manual worker, the capitalist employer, the wholesale trade, the shopkeeper and the customer. Like Marx the Webb’s too were opposed to the capitalist system. They advocated different paths to bring its downfall. Mark alone with Engel’s, played a key role in drafting draf ting the communist manifesto in Germany. The The Webb’s played an instrumental role as intellectual’s leader of the labor party in Britain, drafting the socialist manifesto for converting capitalist Britain into a mixed economy, economy, thus laying the foundation for the nationalization nationalization of major industries. Marx and Lirs followed prescribed a rapid, even violent change to a new order. The gradual evolution a non-violent gradual evolution to a socialist from of government. ROBERT HOXIE THEORY Unions under the American capitalist systemRobert Hoxie is among the earliest to have argued that unions evolve differently across social. Psychological environment context. He considers Americans unions less dogmatic and more pragmatic pragm atic and opportunist. He identified four functional types of unionism. BUSINESS UNIONISM:Business unions are trade conscious rather then class conscious, they stressor immediate goals and displays an instrumental orientation. Such unions ask for more and more focusing an improvement wages, working and working conditions and pay little attention if any to political & social action. They seek to achieve their goals primarily through collective bargaining and industrial (strike). Hoxie distinguishes between business unionism and company for it’s (the unions) survival.
Friendly or uplift union’s union’s unionism The goal of such unions is to elevate the moral, intellectual and social life of the worker. Their means of action include collective bargaining and political action. Revolutionary Unionism These unions are class conscious rather then trade conscious. They follow Marx’s dictum and reject private ownership of productive resources and condemn the wages system. Industrial and political action combined with violence is the dominant means whereby such unions achieve their objective. Hoxie divided revolution unions into two subtypes(1) Focusing socialist socialist (unionism) ideals. (2) The often perpetrating quasi quasi anarchy (unionism) through strikes sabotage and violence. Predatory unionismSuch unions are leader based not member me mber based. While attempting to secure higher ways and other benefits for their member, they employer to squeeze out competition for mutual benefit.
