1. Collective bargaining

2. Process of negotiating between management & workers represented by their representatives for determining mutually agreed terms & conditions of work which protect interest of both workers & the management.
Collective…both employer & employee act collectively & not individually in arriving at an agreement
Bargaining … process of reaching an agreement involves proposals & counter proposals, offers & counter offers.

3. Objectives Maintain cordial & harmonious relations
Protect both interests
Government interventions keep at bay
Promote industrial democracy

4. Importance Better understanding Promotes industrial democracy
Benefits both
Adjustable to changing conditions
Facilitates speedy implementation of decisions arrived at collective negotiation.

5. Types of bargaining Distributive bargaining Co-operative bargaining
Productivity bargaining
Composite bargaining

6. Bargaining process Pre-negotiation Negotiators Negotiation
Agreement or Contract
Implementation of Agreement

7. Prenegotiation Preparation for negotiation Preparation by management
Preparation by labor union

8. Negotiators Negotiation
Company side..one or number of persons…IR officer,head of a area,company lawyer.
Union side..team approach..team..business agents , shop stewards , president of local union
Negotiators
Both parties come to negotiation table at a time & place for this purpose.
Negotiation starts by union representatives delivering extravagant list of demands.
Initial response of management extreme to that of union…offers little more than previous.
Compromise..agreement…if no agreement..deadlock or bargaining impasse
Negotiation

9. Agreement or contract
After arriving at informal agreement through overcoming bargaining impasse, it is written.
Consists of terms & conditions of agreement, date from which it comes into effect, duration it will remain in operation & names of signatories of agreement.
Agreement so prepared sent to laborers & management for its ratification & approval.
Agreement needs to be duly ratified because of legal provisions.

10. Agreement or contract
According to sec 18(1) of industrial; disputes act 1947 “an agreement shall be binding only on the parties to the agreement.”
Labor contract or “union contract” or “labor-management agreement”.
Agreement stipulates in formal terms nature of relationship between labor & management for ensuing period of time as agreed in negotiation.

11. Implementation of agreement
Way ratified & approved agreement will be implemented is indicated in the agreement itself.
Must be implemented with full magnanimity in terms of its letter & spirit by both parties from date of operation as mentioned in the agreement.
Duty of HR department to ensure proper & full implementation of all provisions given in the agreement.
Agreement also involves..procedure for handling grievances arisen out of CB.

12. Bargaining impasse
When negotiations break down & labor a& management have been unable to reach an agreement.
3 options when this occurs:
Ask 3rd party(mediator or arbitrator) to resolve
Labor union may resort to work stoppage or strikes
Employer may show force to suppress union demands

13. 3 types of 3rd party interventions
Neutral 3rd party acts as mediator
Holds meetings with each party
Mediator does not have the rights to impose decisions
Must have confidence of both the parties
Mediation
Arbitrator empowered to determine & dictate terms of negotiation.
Guarantee a solution to an impasse
Binding arbitration: both parties bound
Arbitration
In certain situations of emergency type a fact-finder is appointed to resolve impasse.
Neutral party
Commonly used in public sector
Fact - finding

14. Union power tactics
Strikes : concerted & temporary withdrawal of labor from work.
Economic strike
Recognition strike
Sympathy strike
Wildcat strike
Sit- down strike

15. Union power tactics
Picketing: one of the activities occurring during a strike. Picket is a line of strikers who patrol employers place of business, helps keep a plant or building site closed during a strike.
Make society know about dispute
Discouraging others to refrain from doing business with struck employer.

16. Union power tactics
Boycott : combined refusal by employees & other interested parties to buy or use employers products.
Primary boycott: involves only those parties directly involved in a dispute
Union exerts pressure on members to avoid patronizing an employer, even going as far as to levy fines against members that do.
Secondary boycott: involves 3rd party not directly involved in dispute . ex:electricians union can persuade retailers not to buy employers product.

17. Employer power tactics
Lock out
Non-union workers
Replacement employees
Bankruptcy -

18. Employer power tactics
Refusal by employer to provide opportunities to employees to work.
Employees locked out & prohibited from doing their jobs, stop getting paid.
Limited use in resolving bargaining impasse.
Lock out
Let non-union employees such as supervisors perform duties of striking employees.
May be successful in highly automated or routine where little training is required.
Non-union workers

19. Employer power tactics
Hire replacement employees for strikers.
Workers hesitant to accept short-term employment.
Hesitate to cross picket lines to be ridiculed by picketers. Sure it impair labor-management relations & lower workers morale
Replacement employees
In extreme case employer can go o the extent to cancel a union contract & declare oneself , under the provisions of Bankruptcy Law as bankrupt to get rid of striking workers.
Bankruptcy

20. Conditions for effective collective bargaining
Favorable political & social climate
Trade unions
Unanimity among workers
Strength of both parties
Problem solving attitude
Availability of data
Continuous dialogue

21. Factors inhibiting collective bargaining
Employers reluctance
Weak unions
Inadequate interventions