Collective Bargaining Meaning, Characteristics

Discussions and negotiations between the employer and employee may also be used to resolve industrial problems and reach a resolution.

Since all sides ultimately agree to abide by a conclusion that they reach after much debate and negotiation, this is also known as collective bargaining.

Beach states that “Collective Bargaining is focused with the relationships between businesses and unions that report workers” (or their representatives).

It entails the process of organising a union among workers, as well as the administration, interpretation, and negotiations of collective bargaining agreements pertaining to pay, working hours, and other conditions of employment. These agreements are contested through coordinated economic actions and dispute resolution procedures.

Collective bargaining, according to Flippo, is the process by which representatives of corporate organisations and labour organisations get together to try to work out a contract or agreement that outlines the parameters of the union-employer relationship.

“Collective bargaining is a method of settling employment conditions via negotiations between an employer or group of workers and an organised body of employees, often through authorised agents. Collective bargaining is essentially the process of negotiating amongst interested parties rather than with outside parties.

“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”

Collective bargaining entails the following: I open-minded negotiation; (ii) drafting; (iii) administration; (iv) interpretation of papers prepared by union representatives, employers, and workers; and (v) organisational trade unions.

Types of Group Negotiation:

Collective bargaining may take many different forms. First, single plant bargaining refers to negotiations that take place between a single union and employer. Both India and the United States are dominant in this manner.

Second, negotiations may take place between employees of a single company that operates many factories and the employees of each unit. This kind of collective bargaining, known as many plants, involves employees negotiating with a single company via several unions.

Thirdly, all unions within an industry negotiate via their federation with the employer’s federation within that industry, as opposed to individual unions negotiating with distinct employers. Multiple employer bargaining, which is feasible at both the municipal and regional levels, is what is meant by this. The textile sector in India is one area where industry-wide bargaining is practised.

Tiny enterprises, several political parties, and union competition are typical ailments that have led to the formation of a small unit of collective bargaining. Higher labour costs, a lack of empathy, gratitude, and economic inefficiency in the context of workplace relationships are the results. Both companies and workers may benefit economically and socially from industry-wide bargaining.

Crucial Conditions Prior to Collective Bargaining:

The following conditions must be met for collective bargaining to be effective:

I The industry has a robust representative trade union that supports using the constitution to resolve conflicts.

(ii) The ability to gather information and the readiness to use novel techniques and equipment to solve industrial issues. Both sides should take a positive stance, and the discussion should be grounded in data and facts.

(iii) The presence of a capable and knowledgeable management team that can effectively integrate the many stakeholders, including workers, owners, customers, and the government or society.

(iv) There should be an understanding between the employer and workers on the fundamental goals of the company as well as their respective rights and responsibilities.

(v) Both parties must refrain from unfair labour practises for collective bargaining to work effectively.

(vi) Appropriate documentation of the issue need to be kept.

(vii) It is advisable to carry out collective bargaining at the plant level. This implies that if the company has many plants, the appropriate ability to negotiate with the local trade union should be granted to the local management.

(viii) Both employers’ and workers’ attitudes need to change. They need to understand that disagreements may be settled amicably at the negotiation table without the use of a third party.

(ix) No party should adopt a strict stance. They need to start negotiating with the intention of coming to a consensus.

(x) Any agreement that results from discussions must be put in writing and include every clause in the contract.

Key attributes of collective bargaining include:

It’s a Collective Action:

Instead of being an individual activity, collective bargaining is a group action. Groups representing each party to the settlement are present. Employees are represented by their trade union, while employers are represented by their delegates.

Collective bargaining is an ongoing process that never comes to a conclusion with a single agreement. It offers a way for the organised and ongoing engagement between trade unions and management. The procedure is ongoing throughout the whole year.

Collective bargaining is a two-party procedure. It is a bipartite process. Employers and workers of the party operate together in some ways. There isn’t any outside interference. It is a mutually beneficial approach to conflict resolution as opposed to a take-it-or-leave-it one.

It’s a Procedure:

Collective bargaining is a procedure in that it involves many phases. The workers’ presentation of a charter of demands is the first phase, and the last step is the negotiation and signing of a contract that will serve as the fundamental legal framework guiding labor-management interactions in an organisation for a certain length of time.

It is Not Fixed or Static, but Adaptable and Mobile:

It is flexible. There isn’t a set formula for coming to a decision. There’s plenty of room for negotiation. Until a mutually agreeable final agreement is achieved, a spirit of give and take is effective.

It’s Industrial Democracy at Work: The foundation of collective bargaining is the idea of industrial democracy, in which the labour union bargains on behalf of the employees against the employer or employers. The governance of labour with the permission of the governed, the workers, is known as industrial democracy. The idea of industrial self-government has replaced the idea of arbitrary unilateralism. In actuality, collective bargaining involves more than just signing a document at a table that grants seniority, vacation time, and pay increases.

It is dynamic in that it is still relatively young and constantly evolving. It was sentimental, erratic, and emotional in the past, but it is now methodical, scientific, and factual.

This process is complementary rather than competitive:

In other words, labour and management do not coopt while negotiating for the same goal in collective bargaining. It is basically a complimentary process, meaning that each side requires something that the other party has. Specifically, labour can exert more productive effort, and management can finance it as well as organise and direct it to meet the goals of the business.

The contrast between “integrative bargaining” and “distributive bargaining” has been well-made by behavioural scientists. The former involves splitting the cake, which stands for the product of management and labour working together.

To use the metaphor of the cake again, if one side wins in this process, the other party’s cake is comparatively smaller. As a result, the partnership is win-lose. Conversely, integrative bargaining is a procedure in which both sides may come out ahead by making a contribution to the other party’s advantage.