13.2 collective bargaining
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TRANSCRIPT
COLLECTIVE BARGAINING
Presentation by
Prof.M.S.S.VaradanChairman
Om Consultants (India) Pvt. Ltd.
U N L O C K IN G P EO PL E P O T E N T I A L
C O N S U L T A N T S
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U N L O C K IN G P EO PL E P O T E N T I A L
C O N S U L T A N T S
• A procedure which determines the quantum of compensation which employees get
• A method of settling disputes during the pendency of an agreement
Collective Bargaining is
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U N L O C K IN G P EO PL E P O T E N T I A L
C O N S U L T A N T S
Nature of Collective Bargaining
• The ILO Convention No. 98 (1949)
Essential features of collective bargaining
It is not equivalent to collective agreements
It is a method used by trade unions to improve the terms and conditions of employment of their members
Restores the unequal bargaining position as between employer and employee
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U N L O C K IN G P EO PL E P O T E N T I A L
C O N S U L T A N T S
Nature of Collective Bargaining (Contd..)• The ILO Convention No. 98 (1949)
Essential features of collective bargaining o Where it leads to an agreement it modifies,
rather than replaces, the individual contract of employment
o The process is bipartite, but in some developing countries the State plays a role in the form of a conciliator
o Employers use collective bargaining to improve competitive edge based on labour costs
o The process is bipartite
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U N L O C K IN G P EO PL E P O T E N T I A L
C O N S U L T A N T S
Main features of Collective Bargaining• It is a group action as opposed to
individual action and is initiated through the representatives of the workers
• It is flexible and mobile, and not fixed or static
• It is a two party process• It is a continuous process• It is dynamic and not static• It is industrial democracy at work
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U N L O C K IN G P EO PL E P O T E N T I A L
C O N S U L T A N T S
Main features of Collective Bargaining (Contd..)• It is not a competitive process, but it is
essentially a complementary process• It is an art, an advanced form of human
relations• It is a relation of give and take• It is a process of retreat without seeming
to retreat
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U N L O C K IN G P EO PL E P O T E N T I A L
C O N S U L T A N T S
Main features of Collective Bargaining (Contd..)• It is a process of persuasion and
reasoning which may enable parties to arrive at some amicable settlement or agreement
• It is a power relationship in which management tries to retain its right to manage and unions to safeguard their interests so as to strengthen their hold over the workers
Conceptual Framework of Bargaining
External Environment
Management’s Bargaining Characteristics
Bargaining Structure
Union Organisational Characteristics
Negotiation Process
Bargaining Outcomes
Admn. of agreements
Goal attainment of Parties and the Public
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U N L O C K IN G P EO PL E P O T E N T I A L
C O N S U L T A N T S
Issues of Bargaining
• Management rights• Union Security• Strikes and Lockouts• Union Activities and responsibilities• Wages and Salaries• Working Hours and Working
Conditions
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U N L O C K IN G P EO PL E P O T E N T I A L
C O N S U L T A N T S
Issues of Bargaining (Contd..)
• Job rights and seniority• Discipline, Suspension and discharge• Grievance Handling and Arbitration• Health and Safety• Insurance and Benefit Programmes
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U N L O C K IN G P EO PL E P O T E N T I A L
C O N S U L T A N T S
Major concerns of Unions and Management
• Unemployment• Inflation• Working Time• Social Security• New Technologies• Flexibility• Changes in practices
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U N L O C K IN G P EO PL E P O T E N T I A L
C O N S U L T A N T S
Support of the Labour Administration for successful collective bargaining• Provide the necessary climate for it• Not support a party in breach of
agreements• Provide for the settlement of disputes• Bargain in good faith• Absence of any external pressure• Progressive & strong management
consciousness• There should be delegation of authority in
the negotiation process
The Process of Collective Bargaining
Collective Agreement
3rd Party Referral
Union ClaimManagement
Proposal
Negotiations
Factors Affecting Bargaining Strength
Company Competitiven
ess
Economy
Management Strategy
Cost of Settlement /
DisputeLabour Market
Union Organisation
Solidarity / Commitment
External Support –
Socio political
FACTORS AFFECTING
BARGAINING STRENGTH