COLLECTIVE BARGAINING

Collective bargaining is perceived by both employers and employees as an important machinery to settle differences on the work-related issues. The need for collective bargaining in India arose due to some controversial problems which the Indian industry had to face after the termination of the Second World War. One of the most important among these was that of modernization. The problems of modernization and productivity are to be viewed in a proper light in the context of industrial development on planned lines.

The Indian industry could not compete in foreign markets if it did not follow modem methods of production. Since modernization caused displacement of workers, it naturally invited hostility and the workers and management, therefore, had to come together in their viewpoint through collective bargaining.

The solution to common problems can come from legislative measures. Collective agreements provide the climate for a smooth progress as there is ample scope for a synthesis between demands from one side and concessions from the other.

(i)            In individual bargaining, the workers may be tempted to accept unde­sirable conditions and may thus bring down the general level of remu­neration. Due to immobility of labour all workers are not in a position to desert a wage cutting employer. This immobility may be due to igno­rance and illiteracy and industry-specific skill factors,

(ii)            The speedy workers may accept a lower rate of payment which may yield them a reasonable amount of wages, but such a low rate of wages would yield insufficient earnings to a great majority of workers.

(iii)            Sometimes employers are in a position to control the bulk demands of the labourers and they may through combine action, force the work­ers to accept low wages. Collective bargaining is the only device which can avert such combined action and prevent the creation of such mo­nopolistic tendencies.

(iv)            The market apparatus consisting of the two forces of demand and sup­ply can settle only the problem of determination of wages Some of the non-wage issues such as the length of a working day, health and safety of the workers, speed operations, introduction of rationalization, mea­sures for job security, etc. have to be settled by personal decisions and not by the forces of demand and supply.

(v)            Collective bargaining also provides some voice in the conduct and management of the industry. Workers now have a definite means for the exercise of real influence in the determination of labour-related matters affecting them every now and then.

(vi)            To ensure continuity of production, workers and employers must shake hands and this makes it inevitable to make collective bargaining a regu­lar feature of industrial life.

(vii)            The problem of good human relations can be successfully tackled by the collective bargaining process.

CHARACTERISTICS OF COLLECTIVE BARGAINING

Some of its essential characteristics may be enumerated as follows:

a)      It is a group action as opposed to individual action and is initiated through the representatives of the workers and delegates of the manage­ment at the bargaining table.

b)      It is flexible and mobile and not fixed or static. It has flexibility and ample scope for compromise for a mutual give and take before the final agreement.

c)      It is a two-party process. It can succeed only when the labour and man­agement want to succeed. There must be a mutual eagerness to develop the collective bargaining procedure, with a view to achieve harmony and progress. It can flourish only in an atmosphere which is free from animosity and reprisal.

d)      It is a continuous process, which provides a mechanism for continuing and organized relationships between the management and the trade unions. The heart of collective bargaining is the process for continuing joint considerations and the adjustments of plants and problems.

e)      The term itself is dynamic because the concept is growing, expanding, and changing.

f)       It is industrial democracy at work.

g)      It is not a competitive process but a complementary process that is each party needs something that the other party has, namely, labour can make a greater productive effort and management has the capacity to pay.

h)      It is an art, an advanced form of human relations. To get a proof of this one only needs to witness the bluffing, the oratory, the dramatics, and the coyness mixed in an inexplicable fashion, which often characterizes a bargaining session.

OBJECTIVES:

The basic objective of collective bargaining is to arrive at an agreement between the management and the employees determining mutually beneficial terms and conditions of employment.

This major objective of collective bargaining can be divided into the following sub-objectives:

a.  To foster and maintain cordial and harmonious relations between the employer/management and the employees.

b.         To protect the interests of both the employer and the employees.

c.          To keep the outside, i.e., the government interventions at bay.

d.         To promote industrial democracy.

PREREQUISITES OF COLLECTIVE BARGAINING

(a) Freedom of Association

In order to achieve collective bargaining, it is essential to ensure that the denial of such freedom negates collective bargaining. In this respect it is significant to note that the International Labour Organization adopted the Convention No, 87 concerning “Freedom of Association and Protection of the Right to-Organize” which seeks to provide for freedom of association. India has, however, not, formally ratified that convention, perhaps due to administrative and constitutional problems, However, Article 19 (l) (c) of the Constitution of India guarantees “the right to form Associations or Unions” as a fundamental right.

(b) Strong and Stable Trade Unions

For the success of collective bargaining, it is also essential that there should be strong, independent, democratic and well organized trade unions.

The unorganized labour is the hurdle in its success. In India, however, the unions are generally weak. Rivalry on the basis of caste, creed and religion is another characteristic of Indian trade unions which come in the way of successful collective bargaining. Division of unions on the basis of political ideologies further retards the growth of trade unions. Moreover: most of the workers are illiterate. Lastly, the financial-position of trade unions is weak, and some of them are even unable to maintain a proper office.

(c) Recognition of Trade Unions

Recognition of Trade Unions as a bargaining agent is the backbone of collective bargaining. We have already discussed the problems relating to recognition of trade unions in the previous Chapter.

(d) Willingness to Give and Take

The mutual trust and appreciation of the viewpoints of the management and union is also essential said the ILO. The fact of entering into negotiations implies that the differences between two parties can be adjusted by compromise and concession in the expectation that agreement can be reached. Obviously, if one or both sides merely make demands when they meet, there can be no negotiation or agreement.

IMPORTANCE/SIGNIFICANCE OF COLLECTIVE BARGAINING

The need for and importance of collective bargaining is felt due to the advantages it offers to an organization.

The chief ones are as follows:

  i.  Collective bargaining develops better understanding between the employer and the employees. It provides a platform to the management and the employees to be at par on negotiation table. As such, while the management gains a better and deep insight into the problems and the aspirations of die employees, on the one hand, die employees do also become better informed about the organizational problems and limitations, on the other. This, in turn, develops better understanding between the two parties.

ii.      It promotes industrial democracy. Both the employer and the employees who best know their problems, participate in the negotiation process. Such participation breeds the democratic process in the organization.

iii.      It benefits the both-employer and employees. The negotiation arrived at is acceptable to both parties—the employer and the employees.

iv.   It is adjustable to the changing conditions. A dynamic environment leads to changes in employment conditions. This requires changes in organizational processes to match with the changed conditions. Among other alternatives available, collective bargaining is found as a better approach to bring changes more amicably.

v.      It facilitates the speedy implementation of decisions arrived at collective negotiation. The direct participation of both parties—the employer and the employees—in collective decision making process provides an in-built mechanism for speedy implementation of decisions arrived at collective bargaining.

FORMS OF COLLECTIVE BARGAINING

The working of collective bargaining assumes various forms. In the first place, bargaining may be between the single employer and the single union, this is known as single plant bargaining. This form prevails in the United States as well as in India.

Secondly, the bargaining may be between a single firm having several plants and workers employed in all those plants. This form is called multiple plants bargaining where workers bargain with the common employer through different unions.

Thirdly, instead of a separate union bargaining with separate employer, all the unions belonging to the same industry bargain through their federation of that with the employer's federation of that industry. This is known as multiple employer bargaining which is possible both at the local and regional levels. Instances in India of this industry wide bargaining are found in the textile industry. The All India Bank Employees Federation also bargained with the management of different banks in India on a multiemployer basis in 1955 and in 1957.

The common malady of union rivalry, small firms and existence of several political parties has given rise to a small unit of collective bargaining. It has produced higher labour cost, lack of appreciation, absence of sympathy and economic inefficiency in the realm of industrial relationships. An industry-wide bargaining can be favourable to the economic and social interests of both the employers and employees.