Classification of Collective Bargaining
“Negotiations regarding working conditions and terms of employment between an employer, a group of workers, or one or more employers organisation on the other, with a view to reaching an agreement” is the definition of collective bargaining as given in an ILO Manual from 1960.
Furthermore, the claim is made that “the terms of agreement serve as a code defining the rights and obligations of each party in their employment relations with one another, if fixes large number of detailed conditions of employees and none of the matters it deals with, internal circumstances give grounds for a dispute counselling and individual workers”
Three different forms of collective bargaining have been accomplished: (1) A voluntary agreement obtained via direct talks between the parties. It is entirely voluntary to implement;(2) agreements between the parties, while voluntary in nature, become mandatory when registered as a settlement before a conciliator; and(3) agreements with legal standing that are negotiated following fruitful negotiations between the parties when the dispute is referred to an industrial tribunal or courts.
The process of discussing problems pertaining to pay, work hours, the working environment, and other conditions of employment between unions (representatives of workers or employees) and the employer (or their representative) is known as collective bargaining.
Distributive or Conjunctive Bargaining: Both the company and the employee attempt to maximise their individual profits in this kind of collective bargaining. It is predicated on the idea that when one side prevails over the other, “my gain is your loss, and your gain is my loss.”
Economic concerns are addressed, including pay, bonuses, and other perks. The company wants to increase workload and lower compensation, while the employee wants a higher payment or bonus for the task he has completed.
In cooperative or integrative bargaining, the employer and employee get together to discuss issues that affect them both and attempt to come to a mutually agreeable resolution. If there is an economic downturn that is beyond of either party’s control, they might come to an understanding about the conditions of employment. For instance, in order to enhance productivity, the management may agree to use updated procedures, or the workforce may agree to accept cheap salaries.
Productivity Bargaining: Under this kind of negotiation, which is handled by management, employees get bonuses or incentives in exchange for their higher productivity. Encouraged by this, the employees put out great effort to surpass the average production level in order to get the extra perks. Both the company and the employee win from this kind of collective bargaining in the form of higher output and compensation, respectively.
Composite Bargaining: In this kind of collective bargaining, employees not only demand higher pay but also voice concerns about hiring and training practises, environmental issues, company mergers and acquisitions, pricing strategies, working conditions, and other matters in an effort to preserve their interests and prevent the dilution of their power.
Thus, the goal of collective bargaining is to enable the employer and employee to come to a mutually beneficial agreement over the conditions of employment and to build a lasting relationship.