Since then, a number of collective bargaining agreements have been entered into. Partnership agreement: This is a type of integrative or cooperative bargaining where both parties will mutually place their offer on the table and decide on the agreement that benefits both.

The Tata Workers union bargained with M/s Tata Iron and Steel Co. Ltd., Jamshedpur, on certain issues, one of which was union security and in the resulting agreement some of the union security clauses were also included. (1965). The negotiation should be based on facts and figures and both the parties should adopt constructive approach. A collective agreement is a written contract between the employer and a union that outlines many of the terms and conditions of employment for employees in a bargaining unit (Human Resources, 2011). This is the type in which one side wins, and the other team loses completely. A collective agreement is a written agreement concerning terms and conditions of employment, or any other matter of mutual interest, concluded by one or more registered trade unions on the one hand and, on the other hand- ... Other types of collective agreements Closed shop agreements and agency shop agreements. Collective bargaining can also be costly, both in terms of time and money. Thus, union representatives and the management meet each other to arrive at a mutual agreement which they cannot do alone. It involves the process of union organization of employees, negotiations administration and interpretation of collective agreements concerning wages, hours of work and other conditions of employees arguing in concerted economic actions dispute settlement procedures”. However, some industry-level agreements are also there; (ii) The scope of agreements has been widening now and now includes matters relating to bonus, productivity, modernisation, standing orders, voluntary arbitration, incentive schemes, and job evaluation; (iii) Long term agreements ranging between 2 to 5 years, are on increase; (iv) Joint consultation in various forms has been provided for in a number of agreements; and feasible and effective.

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Collective bargaining, thus, covers the negotiation, administration, interpretation, application and enforcement of written agreement between employers and unions representing their employees setting forth joint understanding, as to policies and procedures governing wages, rates of pay, hours of work and other conditions of employment.

Walton , R. E., & McKersie, R. B. It provides that the management and the workers should strive for constructive cooperation in all possible ways and throws responsibility on them to resolve their differences through mutual discussion, conciliation and voluntary arbitration peacefully. Each of these steps has its particular character and aim, and therefore, each requires a special kind of intellectual and moral activity and machinery.

The areas that are covered by labour legislation are mainly physical working conditions and terms of employment, and to the extent that these are prescribed by law the scope of collective bargaining is limited.

New style agreement: The new style agreement was formed to promote cooperative solution to any disputes in the future.

DeCenzo, D. A., & Stephen, P. R. (2010). It will encourage the employees to work harder and push their limits to get additional benefits. Retrieved from Labor realtions- Frequently asked Questions: https://www.uoguelph.ca/hr/system/files/Labour%20Relations%20FAQs.pdf, Legal Dictionary. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. Importance 9. Customary practices are evolving procedures to extend the area of collective bargaining. The Marketing Concept and the Agreement as a Contract: The marketing concept views collective bargaining as a contract for the sale of labour.

Ithaca: ILR Press. The main objective of developing collective bargaining technique is to improve the workers-management relations and thus maintain peace in industries.

The former is the process of dividing up the cake which represents what has been produced by the joint efforts of management and labour. In this, the trade union give notice of bargaining within the 90 days before the current agreement. The Industrial Employment (Standing Order) Act, 1948 makes compulsory the drawing up conditions of employment relating to methods of paying wages, hours of work, over time, shifts, holidays, termination of employment and disciplinary action, but not through joint negotiation. Collective agreement can be improved with a local agreement negotiated by the shop steward.

(n.d.). It is relatively a new concept, and is growing, expanding and changing. The information, however, on the growth of collective bargaining process is very meager, and the progress made in this respect has not been very conspicuous, though not negligible. (Armstrong, 2012, p. 414)”. Collective bargaining is a peaceful settlement of any dispute between worker and employers and therefore it promotes industrial peace and higher productivity resulting an increase in the Gross National Product or the national income of the country. In this process, if one party wins something, the other party, to continue the metaphor of the cake, has a relatively smaller size of the cake. The role of collective bargaining may be evaluated from the following point of view: The main object of the organisation is to get the work done by the employees at work at minimum cost and thus earn a high rate of profits. Ever since independence, it has been the declared policy of the Central Government to encourage trade unions development and the settlement of differences in industry by mutual agreement.

TOS4. When things are good in a company and people don’t feel like they’re getting anything from paying the dues, they usually become unhappier about the rates. The immediate objective of the workers’ representatives is always some kind of monetary or other gains, accrue when the economy is buoyant and the employer has capacity to pay. Government is also concerned with the process of collective bargaining. Bipartite Agreements: These are the most important types of collective agreements because they represent a dynamic relationship that is evolving in establishment concerned without any pressure from outside.

The main function of the trade unions is to protect the economic and non- economic interests of workers through constructive programmes and collective bargaining is one of the devices to attain that objective through negotiations with the employers, Trade unions may negotiate with the employer for better employment opportunities and job security through collective bargaining. Even when his bonafides are beyond doubt, between him and the workers he leads, there cannot be the degree of understanding and communication as would enable him to speak on behalf of the workers with full confidence. Secondly, the bargaining may be between a single firm having several plants and workers employed in all those plants.

Therefore, the negative unemployment effective of the minimum wage law is confined to the category of unskilled labour. Disclaimer Copyright, Share Your Knowledge It involves the economic issues such as wages, bonus and other benefits. Some people point out that these techniques have a tendency to restrict the power of employers. (v) In order that collective bargaining functions properly, unfair labour practices must be avoided by both the parties. Even if the unions combine, as at times they do for the purpose of bargaining with the employer they make conflicting demands, which actually confuse employer and the employees. In S. R. David A DeCenzo, Fundamentals of Human Resource Management (pp. The Industrial Relations (Managerial) Concept as Jointly Decided Directives: The industrial relations concept views collective bargaining as a system of industrial governance. It is Flexible and Mobile and not Fixed or Static: It has fluidity. Labour legislation and the enforcement machinery set up for its implementation can only provide a suitable framework in which employees and workers can function.”. Substantive Agreement: This agreement has pre-stated agreed terms and condition for type of jobs, payment, working hours, holidays, leave, extra benefits for medical, etc. The goal here is to expand the deal and show flexibility at both end such that both parties can be satisfied. (iv) Interpretation of documents written by employers, employees and the union representatives. Guy Burgess and Heidi Burgess. Regarding bargaining on hours of work, it has recognized that “in one form or another subject of working time will continue to play an important part in collective bargaining; although the crucial battles may be well fought in the legislative halls.”. 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. In negotiating the contract, a union and management present their demands to each other, compromise their differences, and agree on the conditions under which the workers are to be employed for the duration of the contract. 8. Representatives have to discuss everything twice—once at the small representative meetings, and again when they relay information to the larger group. If the government was committed to support the principle of collective bargaining, why no attempt was made to encourage it by legislation? Has Government Discouraged Collective Bargaining? For example, the employees may agree to work on lower wages if the systems are updated. The union security has also been an issue for collective bargaining, but it could not acquire much importance in the country, although stray instances are found. The Minimum Wages Act, also passed in 1948, has given statutory power to appropriate government to fix minimum wages in certain scheduled employments. But industrial legislation since independence and government intervention to establish various standards of working conditions and machinery for compulsory arbitration of disputes have limited the scope of collective bargaining.

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