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MBA@JMC 1 COLLECTIVE BARGAINING BY NISHA NAIR T II SEM MBA@JMC

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MBA@JMC1

COLLECTIVE BARGAINING

BY

NISHA NAIR T

II SEM

MBA@JMC

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MBA@JMC2

AT A GLANCE

DEFINITION OF COLLECTIVE BARGAINING

CHARACERSTICTS OF CB IMPORTANCE OF CB

NEED OF CB

FORMS OFCB

COLLECTIVE BARGAINING PROCESS

FACTORS HINDERING THE FUNCTIONING OF CB

CB IN INDIA 

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MBA@JMC3

COLLECTIVE BARGAINING

The phrase of ³Collective Bargaining´ is coined bySydney and Beatrice Webb. According to them,

Collective bargaining is a method by which tradeunions protected and improved the conditions of their members working lives .

According to J. H. Richardson ³ collective bargainingtakes places when a number of work people enter 

into a negotiation as a bargaining unit with anemployer or group of employers with the object of reaching an agreement on the conditions of theemployment of the work people .

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MBA@JMC4

Characteristics of collective bargaining

Group action

Flexible and mobile Two-party process

Continuous process

Dynamic

Industrial Democracy at work Not a competitive process

An art

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MBA@JMC5

Importance of collective bargaining

1. Increase the economic strength of unions and management.

2. Establish uniform conditions of employment with a view to

avoiding industrial disputes and maintaining stable peace inthe industry.

3. Secure a prompt and fair redressal of grievances.

4. Avoid interruptions in work which follow strikes ,go slowtactics and similar coercive activities .

5. Lay down fair rates of wages and norms of workingconditions.

6. Achieve an efficient operation of the plant; and

7. Promote the stability and prosperity of the industry;

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MBA@JMC6

8. It provides a solution to the problem of sickness inindustry, and ensure old age pension benefits and

other fringe benefits.9. It provides a flexible means for the adjustment of 

wages and employment conditions to economic andtechnological changes in the industry, as a result of which the chances for conflict are reduced.

10. As a vehicle of industrial peace. It is the mostimportant and significant aspect of labour±management relations, and extends the democraticprinciple from the political to the industrial field

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MBA@JMC8

Forms of collective bargaining

1. Single plant bargaining

2. Multiple plant bargaining3. Multiple Employee bargaining

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MBA@JMC9

COLLECTIVE BARGAINING PROCESS

There are two stages in collective

bargaining1) Negotiation

2) Contract Administration

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MBA@JMC10

NEGOTIATION

STEPS

Identification Of Problem Preparing for Negotiations

Negotiations of Agreement

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MBA@JMC11

Arnold Campo suggests that the following procedure should be adopted in negotiation

For Union and Management

Friendly

Listen

Opportunity

Right and fair 

Be objective

solution based

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MBA@JMC12

Define clearly

Flexible Correct solution

Small membership

No sharp practices

No lengthy sessions Clear terms

Arbitration

Mutual respect

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MBA@JMC13

For management

Representatives Non legal

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MBA@JMC14

CONTRACT ADMINISTRATION

The Principle of contract administration helpthe personnel managers in administrating the

collective bargaining contracts.

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MBA@JMC15

For union and management

Genuine Procedure

Arbitration

Honour commitment

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MBA@JMC16

For the management

Respect union Credit the union

communicate

Regular employment Understand the agreement

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MBA@JMC17

For the trade union

Understand the agreement Be responsible

Available

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MBA@JMC18

FACTORS HINDERING THEFUNCTIONING OF COLLECTIVE

BARGAINING

The Failure of some employers to accept trade unionas a permanent feature of the national economy

The failure of both parties to devote enough time andenergy to the preparations for collective bargaining

The non availability of factual information

unfair practices

The absence of willingness on the part of either partyto assume the responsibility which are inherent inthe bargaining process

The unequal strength of the parties

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MBA@JMC19

COLLECTIVE BARGAINING IN INDIA

CAUSES FOR THE LIMITED SUCCESS OF

COLLECTIVE BARGAINING IN INDIA Problem with union

Problems from Government

Legal problems

Political interferences

Attitude of management

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MBA@JMC20

SUGGESTIONS FOR THE EFFECTIVEFUNCTIONING OF COLLECTIVE

BARGAINING

Change in attitude

Efficient at plant level Concentrate on difference

Rely on facts

Avoid unfair labour practices

written agreement Honour the agreement

Provision of arbitration

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MBA@JMC21

Reference; P.

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MBA@JMC22

THANK YOU