There might be some breakdowns in the step of negotiation, but both parties keep certain tools along with the effective arguments that can be utilized to persuade another party in the favor of their personal views. This type of bargaining beneficial for both employer and employee as both enjoy the benefits in the form of increased production and the increased pay respectively. Collective bargaining in the strictest sense is understood to be the process of a positive give and take between workers and employers. Distributive bargaining, however, leaves one party a loser. Then both parties should sign the agreement which in turn, becomes a binding contract for both the parties; the terms of which must be sincerely observed by them. Therefore, the Government of India under Industrial Disputes Act 1947 has created the following seven different authorities for the prevention and settlement of disputes: 1.
The collective bargaining process is psychologically very difficult because it is approached as an adversarial situation. Actually, collective bargaining is not a mere signing of an agreement granting seniority, vacations and wage increase, by sitting around a table. Methods and machinery for the settlement of possible future disputes and 6. Bargaining, is different then negotiating. It is an Art: Collective bargaining is an art, an advanced form of human relations. The goal of the system is always to reach a collaborative agreement, but sometimes tensions boil over. Collective bargaining manifests itself equally in politics, legislation, court litigation, government administration, religion, education and propaganda.
Bargain: negotiations are easy if a problem solving attitude is adopted. Trade unions are the bargaining agents for the workers. This conflict is smoothened by the compromises. Depending on how much the parties are going to interact with one another, sometimes maintaining the social relationship and behaving ethically will be just as important as achieving an immediate outcome of bargaining. As an answer to such problems, labor has come in favor of composite bargaining. Labour legislation and the enforcement machinery set up for its implementation can only provide a suitable framework in which employees and workers can function. Â· Requires consent of all representatives involved.
Hence, the government has tried to protect in the interests of labour by passing the various acts such as the Factory Act of 1948. He directs and presides over the negotiations. The practice of collective bargaining in India has shown much improvement after the passing of some legislation like The Industrial Disputes Act 1947 as amended from time to time. Good Faith Bargaining Both employees and employers are required to partake in bargaining. The principle of arbitrary unilateralism has given way to that of self-government in industry. It is a Bipartite Process: Collective bargaining is a two party process. Functions of Collective bargaining Prof.
The success of these negotiations depends upon mutual understanding and give and take principles between the employers and employees. All important decisions are to be taken through negotiations with the labour unions. It generally adheres to this contract and might bring sanction against any attempt to abrogate the contract. Discussions take place in good faith and agreements are arrived at. Definition of Collective Bargaining 2. In collective bargaining, the bargaining strength of both the parties is equal. As such it is important for both the parties to be clear about the problem before entering into negotiations.
The inferior class does not attempt to abolish the old ruling class but merely to become equal with it. Collective Bargaining is a method of determining the terms and conditions of employment and settling disputes arising from those terms by negotiating between the employer and the employees or their trade union. It facilitates better implementation of decisions due to the direct involvement of both the parties. It is a method of introducing civil rights into industry, that is, of requiring that management be conducted by rules rather than arbitrary decisions. The phrase collective bargaining is said to be coined by Sydney and Beatrice Webb and Great Britain.
If an employee feels that the union has breached its duty of fair representation, he may follow certain procedures to file a grievance. It is a method of enforcing citizenship right in industry i. At the time of writing the contract, it is impossible to foresee all the special problems which will arise in applying its provisions. Requests may be submitted in person, by mail, by telephone, or by fax. Employer Duty to Supply Information While the employer has an obligation to supply pertinent information to the union during the collective bargaining process, only certain information is required to be supplied. Issues like wages, bonus etc.
Prepare: This phase involves composition of a negotiation team. Main Hindrances for Collective Bargaining: The main objective of developing collective bargaining technique is to improve the workers-management relations and thus maintain peace in industries. By understanding and weighing the problems of the other party, sometimes a better solution may be reached which is more acceptable to both the parties. There is ample scope for compromise. The Govt, of India, through its Five Year Plans has endeavoured to encourage the practice of collective bargaining. The minimum wage law is justified on the following grounds: i First, the problem of unemployment that might erupt is slight exaggeration. To ensure the participation of trade unions in industry.
Collective bargaining prevents the Government from using the force because an amicable agreement can be reached between employer and employees for implementing the legislative provisions. Customary practices are evolving procedures to extend the area of collective bargaining. The production norms, technical practices, details of working rules, standards of performance, allowance of fatigue, hiring and firing, protection of life and limb, compensation for overtime, hours of work, wage rates and methods of wage payments, recognition of unions, retrenchment, union security, holidays and competence of workmen form the subjects of negotiations and agreements through collective bargaining. From the above facts, it looks that the Government has discouraged the Development of Collective Bargaining in India. Nevertheless, each case must somehow be settled.