Lecture 07

Collective Bargaining and Workers Participation

Abdullah Al Ahad
Collec&ve   Bargaining   is   the  
n e g o & a & o n   p r o c e s s  
between   representa&ves   of  
management   and   workers  
with   a   view   to   produce   a  
wri:en   agreement   covering  
terms   and   condi&ons   of  
employment.    
 Collec&ve   bargaining   involves   discussion   between   two  
groups  regarding  terms  and  condi&ons  of  employment.  It  
is   called   collec%ve   because   the   employer   and   the  
employee   act   as   group   rather   than   as   individuals.   The  
Collective process   is   known   as   bargaining   because   the   method  
Bargaining involves   proposals,   counter   proposals,   offer   and   counter  
offers  and  other  nego&a&on  tools.    

Bargaining   can   take   place   regarding   any   issue   at  

workplace.  Like  pay,  benefits,  working  condi&ons,  decision  
making   process   etc.   It   may   be   used   to   regulate   the  
managerial   authority   at   work   place   and   improve   the  
employer   and   employee   rela&onships.   Collec&ve  
bargaining  provides  mechanisms  for  resolu&on  of  disputes  
through   compromises   or   concessions   made   by   both   the  
par&es.    
q The   term   Collec&ve   Bargaining   (CB)  
was   first   introduced   in   1891   by  
‘Beatrice   Webb’   a   pioneer   in   the  
field   of   Industrial   Rela&ons   in  
Britain.  It  was  ini&ated  as  a  means  of  
human  rights.    
q In   the   US,   Na&onal   Labor   Rela&ons  
Act   1935,   made   it   illegal   for   any  
employer  to  deny  union  rights  of  an  
employee.    
q In   the   subcon&nent   CB   was  
introduced   much   later   in   the   20th  
Century.   In   Bangladesh   CB   was  
introduced   under   the   framework   of  
Industrial   Rela&ons   Ordinance,  
1969.    
 Collective Bargaining

Substantive terms Working

and conditions Procedural rules
arrangements

Wages  and  Salary     Working  Rela&ons       Working  Condi&ons      

 Working  Hours   Authority       Working  Process      

 Holidays  
 When   any   industrial   dispute   arises   or   is   apprehended,  
the   CBA   or   the   employer/employers   of   the  
establishment   is   required   to   communicate   their  
respec&ve  views  in  wri&ng  to  the  other  
 Presenta&on  in  a  collec&ve  manner,  to  the  employer,  
Collective their  demands  and  grievances  by  the  employees.  
Bargaining
Discussions  and  nego&a&ons  on  the  basis  of  mutual  
give  and  take  for  se:ling  the  grievances  and  fulfilling  
the  demands.    
Collec&ve   Bargaining   nego&a&ons   have   to   be  
completed   within   21   days   a\er   the   official  
demand.  
 Signing  of  a  formal  agreement  or  an  informal  
understanding  when  nego&a&ons  results  in  mutual  
sa&sfac&on.    
 In  the  event  of  failure  of  nego&a&ons,  a  likely  resort  
to  strike  or  lock-­‐out  to  force  the  recalcitrant  party  to  
come  to  terms.    
Collec&ve   Bargaining   Agent  
was  described  in  Sec&on  202  in  
Bangladesh   Labor   Code   and   in  
Sec&on  22  in  IRO  1969.  
 
þ CBA   in   rela&on   to   an  
establishment   or   group   of  
establishments   refers   the  
trade   union   of   workers   or  
federa&on   of   trade   group   of  
establishments  in  the  ma:er  
of  Collec&ve  bargaining.    
 Collective Bargaining

Distributive Bargaining Par&es  try  to  maximize  their  respec&ve  gains.      

Cooperative Bargaining Par&es  realize  the  significance  of  coopera&on.      

Nego&a&on  process  involves  se`ng  up  a  produc&vity  

Productivity Bargaining
index  and  their  gain  depends  on  achieving  that.    

Composite Bargaining This  is  a  proac&ve  system.  

 Counter Proposal-­‐   Trade Off-­‐  
Providing    an  alterna&ve  offer.       Give  up  one  issue  in  exchange  of  
winning  another    

Collective Bargaining

Wait and See-­‐  

Recess-­‐  
Postponing  the  nego&a&on  and  
Taking  small  breaks  to  discuss  
wait  for  the  right  &me  to  
disagreement.      
renego&ate.        
u Collec&ve  bargaining  is  generally  carried  out  at  three  levels,  viz  
           I)  plant  level    
         ii)  industry  or  corpora&on  level  
       iii)  na&onal  level.  
u In  the  public  sector,  the  issues  which  cannot    be  se:led  at  the  plant  level  become  
the  subject  ma:er  of  bargaining  at  the  corpora2on/or  na2onal  level  
u In  the  private  sector,  on  the  other  hand,  collec&ve  bargaining  is  generally  held  at  
the  plant  level  between  the  representa&ve  of  workers  (CBA)  and  representa&ves  of  
employers.  
u Mul2na2onal  Corpora2ons  like  Unilever,  Bata,  Bri&sh  American  Tobacco,  as  well  
as  companies  in  the  pharmaceu&cal  sector  there  is  evidence  of  sound  prac&ce  of  
collec&ve  bargaining.    
Collec&ve   bargaining   has   been   very   rarely   resorted   to   in   the   last   decade   due   to   the  
unwillingness  of  the  employers  and  to  some  extent  of  the  CBA  leaders.    
u Frequent   a:empts     by   the   employer/ruling   par&es   to   buy-­‐off   or   vic&mize   CBA  
leaders  have  turned  the  tool  of  collec&ve  bargaining  highly  ineffec&ve.  
u The   unfavorable   and   authoritarian   a1tude   of   management,   especially   in   the  
private   sector   to   recognize   the   CBA   leaders   as   equal   partners   in   the   nego&a&on  
process  also  con&nues  to  be  the  main  obstacle  to  the  successful  opera&on  of  the  
collec&ve  bargaining  instrument  in  the  country  
u Moreover,   poli&ciza&on   of   trade   unions,   inter   and   intra     union   rivalries,  
opportunism   of   the   trade   union   leaders,   absence   of   experienced   trade   union  
leaders    at  plant  level,  long  absence  of  outsiders  at    plant  level  unions,  unfavorable  
laws   and   policies   rela&ng   to   trade   unionism   and   collec&ve   bargaining,   poli&cal  
ramifica&on  of  industrial  disputes  etc.    
WPM   is   a   system   of   communica&on  
and   consulta&on,   either   formal   or  
informal,   by   which   employees   of   an  
organiza&on  are  kept  informed  about  
the   affairs   of   an   undertaking   and  
through   which   they   express   their  
opinion  and  contribute  to  managerial    
decisions.    
¥Increasing  produc&vity  for  the  general  benefit  of  the  
enterprise,  the  employees  and  the  community;  
¥Giving  employees  a  be:er  understanding  of  their  role  
in   the   working   of   the   industry   &   of   the   produc&on  
process;  and  
¥Sa&sfying   the   worker’s   urge   for   self-­‐expression,   thus  
leading   to   industrial   peace,   be:er   rela&ons   and  
increased  co-­‐opera&on.  
 
qInforma&ve  &  
associa&ve  par&cipa&on  
qConsulta&ve  
par&cipa&on  
qAdministra&ve  
par&cipa&on  
qDecision  par&cipa&on  
 
q Industrial Relations-Theory and Practice by Paul
Edwards, 2nd Edition, Blackwell Publishing.
q Industrial Relations and Labor Laws by Arun
Monappa, Patturaja Selvaraj & Ranjeet Manbudiri, 3rd
Edition, McGraw-Hill companies.
q Current and Evolution of Industrial Relations System in
Bangladesh by Dr Abdullah Al Faruque.
q Industrial Relations by Dr. Abdul Awal Khan & Dr.
Md. Abu Taher.