13.2 collective bargaining

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

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• 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

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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

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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

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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

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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

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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

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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

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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

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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

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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