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Defining the Concept of Collective Bargaining

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Defining the Concept of Collective Bargaining
The term “Collective Bargaining” originated in the writings of Sidney and Beatrice Webb, the famed historian of the British labour movement, towards the end of the 19th century. Collective bargaining is a process of joint decision-making and basically represents a democratic way of life in industry. It establishes a culture of bipartism and joint consultation in industry and a flexible method of adjustment to economic and technical changes in an industry. It helps in establishing industrial peace without disrupting either the existing arrangements or the production activities.

Collective bargaining has been defined in the Encyclopaedia 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 and conditions under which a continuing service is to be performed. More specifically, collective bargaining is a procedure by which employers and a group of employees agree upon the conditions of work.”

Stevens defines collective bargaining as a ‘social-control technique for reflecting and transmitting the basic power relationships which underlie the conflict of interest in an industrial relations system.’ The definition emphasizes important characteristics of collective bargaining, that it is concerned with the application of power in the adjustment of inherent conflicts of interest. Webbs described collective bargaining as an economic institution, with trade unionism acting as a labour cartel by controlling entry into the trade.

Prof. Allan Flanders has argued on the other hand, that collective bargaining is primarily a political rather than an economic process. He describes collective bargaining as a power relationship between a trade union organisation and the management organisation. The agreement arrived at is a compromise settlement of power conflicts. In Flanders’ view collective bargaining is joint administration,

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