Explain the definition and the purpose of collective bargaining and collective agreement

Definition

A “collective agreement” is defined under section 2 of the Industrial Relations Act, 1967

as follows:

“An agreement in writing concluded between an employer or a trade union of employers

on the one hand and a trade union of workmen on the other relating to the terms and

conditions of employment and work of workmen or concerning relations between such

parties”

Therefore, by virtue of the above definition, a collective agreement must take either of

the following form:

(i) An agreement between an employer and a trade union of workmen; or

(ii) An agreement between a trade union of employers and a trade union of workmen.

Collective agreements usually set out wage scales, working hours, training, health and

safety, overtime, grievance mechanisms and rights to participate in workplace or

company affairs.

The term “collective bargaining” is defined under s.2 of the IRA to mean negotiating with

a view to the conclusion of a collective agreement.

Collective bargaining is a process of negotiations between employers and the

representatives of a unit of employees aimed at reaching agreements that regulate

working conditions. Collective bargaining consists of the process of negotiation between

representatives of a union and employers (generally represented by management, in

some countries by an employers' organization) in respect of the terms and conditions

of employment of employees, such as wages, hours of work, working conditions

and grievance-procedures, and about the rights and responsibilities of trade unions.

Purpose

The purposes of the Collective Agreement are to promote harmonious relations

between the Employer and employees, to establish an orderly collective bargaining

relationship between the Employer and employees, to ensure the peaceful settlement of

disputes and grievances, and to set forth an Agreement covering rates of pay and other

working conditions and also to establish a progressive, partnership-based approach

between the Office and the Union (the Parties) to the prevention and rapid resolution of

grievances concerning all forms of harassment (in particular mobbing/bullying and

sexual harassment), in accordance with due process, fair procedures and natural

justice, having regard to relevant international labor standards and the ILO Declaration

on Fundamental Principles and Rights at Work.

The purpose of collective bargaining where regulations that allow promote or provide

structure for collective bargaining can be justified on several different grounds. Most

important – at least in democratic, advanced economies, which will be our focus here –

seem to be workplace democracy, redistribution, and efficiency. It is hardly surprising

that all three justifications/purposes are fiercely contested. There are those who believe

that labor unions are nothing but monopolies, and that collective bargaining through

unions achieves the exact opposite of its intentions: less democracy, regressive

redistribution, and inefficiency. It is my view that such criticism is for the most part

misguided, and that collective bargaining can be beneficial on all three fronts