2. Meaning: Collective bargaining is a procedure by which the terms and
conditions of workers are regulated by agreements between their
bargaining agents and employers.
It is called collective because both, the employer and workers act as
group rather than as individuals, and describes bargaining because the
method of reaching an agreements involves approach proposal and
counter proposals, offers and counter offers and a give and take
approch.
collective Bargain has been described by Dubin as “tae great social
invention that has institutionalized industrial conflict” and by Dovan
commission as “a right which is or should be the prerogative of every
worker in a democratic society”.
3. There are three concepts of collective Bargain with different emphasis
and stress, namely ,
Marketing concept :The marking concept are means by which
labors are bought and sold to the market place.
Government concept: This concept on other hand, regards the
institution as a constitutional system or rule making process.
Indusial relations : It views the relation ship between participative
decision making and the employees and employers, on which both
the parties have vital interest.
Industrial bargaining has two approaches
Unilateral approach: Under this employer only decides the
terms and condition of employment.
Bilateral approach: In this approach employer and employee
negotiate with each other.
Tripartite approach: There third party also intervenes to facilitate
settlement.
4. Features of collective bargaining
• collective Bargain is process in which terms and
conditions of employment are determined by both by
the employer and employee.
• He term collective Bargain is normally on the
employees side
• collective Bargain emanates from employment
• Determines the terms and condition of employment
• Mainly based on working condition
• It is dynamic and it changes
• government intervention
5. Condition for success of collective Bargain:
•The union participating in the collective bargaining process must be strong,
democratic and enlightened.
•One of he principles for establishing and promoting collective bargaining is o
give voluntary recognition to trade parties .
•there should be willingness to give and take by both the parties and interest
on both to reach an agreement and to make collective bargain work.
•The whole atmosphere of collective Bargain gets vitiated, relation become
biter aan stained and negotiaions more difficult if one or both the parties
enlarge in un fair trade praises.
•Effective collective Bargain is understanding both employer and he worker.
• collective Bargain cannot be attained without maturity of leadership at both
the sides of bargaining table.
•Difficult to set up the table of authorizes who are authorize to negotiate
7. Theories of collective Bargain
Walton and McKersie Theories
Walton and McKersie view collective Bargain as four sub process-
distributive bargaining ,integrative bargaining,
Attitudinal structuring, and intra organizational bargaining .
distributive bargaining applies to situation in which the
management and union are in conflict.
integrative bargaining are refers to bargaining issues that are not
necessarily in conflict with other party.
Attitudinal structuring is the mean by which bargaining parties
friendliness with,rust,respect,and cooperation.
intra organizational bargaining focuses interaction between
management and union.
These 4 process helps to shape the final outcome of collective
Bargain negotiations as well as the long term relation ship between
union and management.
8. • Bargaining range theory
Bargaining range theory has its root with the late prof A C
Pigu’s Theory . Pigus bargaining range theory explains the
process by which the labour and management establish
upper and lower wage limits within which a final
settlement is made. The union upper limit represents the
union’s ideal wage. then management will offer a wage that
is well bellow the at acceptable to union.. From these two
extremes, the union and management term will proceed
through a series of proposals and counter praposals.The
union will gradually reduce is wage demands while
employer will raise the offer.
Both sides, have established limits as how far
they are willing to concede, and in the process establish a
sticking to point. This method gives exact settlement point
which depends on he skills and bargaining of management
and union.
9. Chamberlain Model
This model focus on determinants of bargaining power and the
ways in which changes in these determinants lead to
settlement in the majority of collective Bargain power as the
ability to secure your opponents agreement to your terms.
thus union bargaining is defined as:
10. If the management estimates tat it is or costly to
agree than disagree ,management will choose to
disagree and there by reject the union terms and vise
versa.
once again if union believes that it is more costly to
agree than disagree with managements offer
whenever denominator grater than numrator in eq 2
the union will reject the offer.
11. Hicks bargaining model
Hicks bargaining model focuses on the length and costs of work
stoppages Hicks proposed that union and management negotiators
balance the costs and benefits of work stoppage when making
concessions at the bargaining table. Each side makes concessions to
avoid a work stopage.The central idea is that there is a functional
relation between he wage that one or the other party will accept and
the length of he stricken hat necessary to establish that wage.
Management will fix the wage if union is not exist.
The main difference between hicks model and bargaining range
model is that the Hicks model pinpoints a precise wage settlement
while the range theory does not
12. Importance of collective Bargain
To establish union recognition as an authority in the work
place.
To raise workers standard of living and a better share in
companies profits.
To express in practical terms, the workers desire to be with
due respect, and o achieve democratic participation in decision
affecting their working conditions.
To establish orderly practices for sharing in these decisions
and o settle disputes which may arise in day today life of the
company.
To achieve broad general objectives such as defending and
promoting he workers interests.
