Collective Bargaining

Topics: Collective bargaining, Trade union, Labour relations Pages: 33 (9550 words) Published: August 3, 2011


BARGAINING Negotiation

Collective bargaining is the process whereby workers organize collectively and bargain with employers regarding the workplace. In a broad sense, it is the coming together of workers to negotiate their employment.

* Collective bargaining is specifically an industrial relations mechanism or tool, and is an aspect of negotiation, applicable to the employment relationship.

* Collective bargaining is a formal process that involves negotiation, consultation and the exchange of information between employers and workers, the end goal being an agreement that is mutually acceptable to all parties.

* It is traditionally a bipartite process (i.e. a process involving two parties).

* “Collective Bargaining is a mode of fixing the terms of employment by means of bargaining between an organized body of employees and an employer, or an association of employers usually acting through organized agents. The essence of collective bargaining is a bargain between interested parties,andnota decreefrom outside parties”. - Hoxie.

* “Collective Bargaining takes place when a number of work-people enter into a negotiation as bargaining unit with an employer or group of employers with the object of reaching an agreement on the conditions of employment ofthework-people”. - Richardson.

* The agreements reached through collective bargaining are legally binding and apply to all workers, whether or not they actively participated in the bargaining process.

* The ILO Right to Organize and Collective Bargaining Convention (No. 98), 1949 describes collective bargaining as:

"Voluntary negotiation between employers or employers' organizations and workers' organizations, with a view to the regulation of terms and conditions of employment by collective agreements.”

* Collective bargaining could also be defined as negotiations relating to terms of employment and conditions of work between an employer, a group of employers or an employers' organization on the one hand, and representative workers' organizations on the other, with a view to reaching agreement.

* It is a rule making or legislative process in the sense that it formulates terms & conditions under which labour & management may co-operate & work together over a certain stated period.

* In collective bargaining, the employer does not deal directly with workers, but he deals with a collective authorized institution (Union representative).

* In collective bargaining certain essential conditions need to be satisfied, such as the existence of the freedom of association and a labour law system.

* It is defined in the Encyclopedia of Social Sciences as “ a process of discussion and negotiation between two parties, one or both of whom is a group of persons acting in concert. The resulting bargain is an understanding as to the terms & conditions under which a continuing service is to be performed. More specifically, collective bargaining is the procedure by which an employer or employers and a group of employees agree upon the conditions of work.

History of collective bargaining in India can be studied under Three different periods:
* From 1920 to 1950
* From 1951 to 1969
* From 1970 onwards

These periods reflect distinct features of collective bargaining in the country.


* Trade unionism made its first appearance at the end of the Ist World War with the establishment of the Madras Labour Union in 1918

* But not until 1920, any serious effort was made to bargain collectively.

* Gandhiji advocated the formula for resolving industrial disputes by negotiation and mutual discussion between employers and labour.

* In the year 1920, a group of employers and their workmen (in the cotton textile...
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