L 3 - Collective Bargaining

Collective Bargaining
Gautam Bandyopadhyay
St Xaviers College
COP : HR
What will be discussed?
• Emergence
• Meaning
• Process & Tactics
• Negotiation
• Steps in collective bargaining
• Problems
• How to improve collective bargaining
2/21/2020 GBD 2
Emergence
• Collecting bargaining as a term found in the writings of
Beatrice and Sydney Webb.
• They traced the origin of the process to the Cooperative
Movement in Great Britain in 1874 among Coal miners.
• In India, it started with large industries or in organised sectors
to bargain for higher wages, better working conditions, less
working hours etc.
• However, casual workers and contract labourers always
remained outside of bargaining coverage
• There is no law to compel employers to bargain with their
employees and it depends solely on employees
2/21/2020 GBD 3
Meaning of CB
• ILO definition: “Negotiation about working conditions and
terms of employment between an employer, a group of
employers or one or more employers’ organizations on one hand
and one or more representative workers’ organization on the
other with a view to reach an agreement”.
• The process is ‘collective’ as the dispute is solved by

representatives of employees and employers in groups rather
than as individuals.
• The term ‘bargaining’ refers to evolving an agreement using

methods like negotiations, discussions, exchange of facts and
ideas rather than confrontation.
2/21/2020 GBD 4
Process & Tactics
• The process of ‘collective bargaining’ is bipartite in nature i.e.
without a third paty’s intervention.
•Salient features of CB are as follows :

❑ It is a ‘group’ process (from both employees & employers)
❑ Both groups sit together to negotiate terms of employment
❑ It is a process as it consists of a number of steps.
❑ It starts with ‘charter of demands’ and ends with ‘reaching an
agreement’ between the parties which lasts for a defined period
❑ Negotiations form an important aspect of the process of CB
• Tactics should be perseverance with considerable deliberation with

appropriate arguments followed by discussion, compromise as well
as mutual give and take rather than confrontation
2/21/2020 GBD 5
Negotiation
• CB is generally structured and conducted at three level :
– Plant level : Negotiation at basic or micro level unit
– Industry level : Several units of same industry band together

and form an association & negotiate with a union of same
status (in Ahmedabad Mill Owners’ Assn negotiated with TLA)
– National level : Here the terms of reference and scope are

much wider though such agreements are not very common.
The representatives of the TU and the employers negotiate and
arrive at a settlement.
2/21/2020 GBD 6
Steps in CB from Employer’s Side
1. Review of current status
2. Collection of background data
3. Anticipating union demands
4. Selection of Management’s negotiating team
5. Studying Union’s Charter of Demand (COD) & Determining
Company’s Negotiating Strategy
6. Determining Physical Arrangement for Negotiation
7. Negotiations
8. To arrive at an Agreement
9. Plan B, in case of failure in negotiation
10. Implementation of the Agreement
2/21/2020 GBD 7
Process of CB
. Implementation
Pre Ratification Post Negotiation
of Agreement
Phase
Ratification &
Agreement
Negotiation
Phase
Negotiation Preparation for

Team formation negotiation
Pre Negotiation
Ascertainment of Phase
Planning for
Bargaining strength
strategy, tactics
2/21/2020 GBD 8
Pre-negotiation Phase
• Determination of negotiating team
– Employer’s side
– Workers’ side
• Ascertainment of bargaining strength
– Market situation
– Competition
– Labour market
– Technology implication
– Financial strength
– Legal compulsion
• Preparation for negotiation
– Collection of data, information & preparing note for discussion
• Planning for strategy, tactics
2/21/2020 GBD 9
Negotiating Phase
• No breakdown or deadlock in bargaining process
• Creating a congenial and conducive climate of bargaining
• Developing the attitudes of helping each other
• Generating a state of mutuality (faith, trust, responsibility etc.)
• Effective listening
• Following strategies, objectives
• Face saving of each other (respect each other)
• To be fair, firm and unbiased
• Problem solving attitude rather win over other party
2/21/2020 GBD 10
Post-negotiation Phase
• Pre-ratification of agreement stage
– Preamble
– Clauses and appendices with details of items
– Date of operation
– Period of operation
– Mechanism to sort out differences, if any, over any clause
– Names of signatories to the agreement
• Ratification and agreement stage
– Both the parties must go through the clauses and give their approval
• Implementation of agreement
– Acceptability of all clauses by the workers not belonging to the
signatory union(s) is a challenge for both the agreement parties
– Notice to the Government machineries as per provision of law
2/21/2020 GBD 11
Hindrances of CB
• Outsiders controlling Tus
– Outside leaders are not well aware of industrial activities
– Casual approach towards problems of workers make it weak
• Non-recognition of TUs/ Bargaining Agent
• Multiplicity of TUs
– It demolishes the solidarity of workers
– Employers ignore unions, considering its strength
– It weakens fund support of unions
• Adjudication machineries (as per I D Act, 1947) to settle disputes
• Degree of unionization (not all workers give their support)
• Employers’ negative value, beliefs, attitudes are not congenial
2/21/2020 GBD 12
Current Problems
• There are 2 distinct issues due to change in current economic
scenario :
• Whether CB should happen at micro level i.e. at plant level or to

be taken up at industry level because of declining trend of
union membership as well as increased competition
• Technological advancement has rendered employee unions

somewhat powerless. So whether CB agreements should focus
now more on issues like productivity, quality and labour
flexibility rather than on wage related issues
2/21/2020 GBD 13
How to improve collective bargaining
• Careful selection of the negotiating team by both the parties
• It is essential for the management to recognise the union and
bargain in good faith
• Strong union and progressive management can help to create
an atmosphere of mutual confidence
• Necessity of having open minds, to listen and appreciate
other’s concern and point of view
• To have some flexibility in making adjustments to the
demands made by the other party
• Need to study adequately on the demands presented
• TUs should be equally concerned with productivity, safety and
hygiene problems as well as quality of output
• Both parties should try to amicably settle all disputes so that
confrontation leading to strikes/lockouts can be avoided.
2/21/2020 GBD 14
Thank You
2/21/2020 GBD 15

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Collective Bargaining

• The process is ‘collective’ as the dispute is solved by

• The term ‘bargaining’ refers to evolving an agreement using

•Salient features of CB are as follows :

• Tactics should be perseverance with considerable deliberation with

– Industry level : Several units of same industry band together

– National level : Here the terms of reference and scope are

Negotiation Preparation for

• Whether CB should happen at micro level i.e. at plant level or to

• Technological advancement has rendered employee unions

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