Meaning, Methods and Procedures
The Ministry of Labour, British Government has defined collective bargaining as follows "'The term Collective Bargaining is applied to those arrangements under which wages and conditions of employment are settled by a bargain in the form of an agreement made between employers or association of employers and workers organisation."
However, the above definition does not completely described the process but just gives the gist - the settling of terms arid conditions of employment by a bargain or akreement between representatives of organisations and serves as a starting point.The basic essence of bargaining in any organisation, is the pllilosophy, attitude and values of the n~ailagement and trade unioils leading to their intrinsic faith in the process and its effectiveness, glviilg equal opportunity and equal status as legitimate partners in tlie business of enterprise to each other. Whenever such consideratioil and understanding is missing. collective bargaining can never be successful inspite of the fact that both the parties may continue to negotiate with each other for montli and years together. The negotiation should be held with a view to reach an agreement between the parties. The principle of "give and take" has to be adopted by both the parties to create a conducive aid for success of collective bargaining.and harmonious industrial relations enivironment
In view of the following, collective bargaining c x i be defined as "a ilegotiation process between a employer or group of employers and a workinen organisation or a group of workmeii organisations regarding the working coiiditions and the term of employinent with a view to reach an agreement".
Methods
Collective bargaining as a process can be successful only if right type of conditions are prevailing in the industry and society. If tlle industrial relations environment 111 the country has to improve, collective bargaining has to be thc main 1001. Management and union have to change their views about the mutual r~lationship.Coercion, militancy etc. have to give way to understanding and co-operations.Management will have to share t l ~ e industry's prosperity witli the workers.Trade unions in our country are established on a sound footing and in the coming era, they will become even more stronger. Therecore, collective bargaining as a process is emerging more acceptable towards establishing employer-employee relationsl-lip. It is by this process only that employees are entering into areas which were so far known as "management prerogative". It is only through the instrument of collective bargaining that the employees will be able to protect their own interests. They will also be able to protect the business interest o f the company by resisting and checking c c m p t and unhealthy management practices. The concept of participative management can also be successful depending upon the degree of acceptability of collective bargaining as an instrument for resolving conflicts'and arriving at better understanding between management and employees. Therefore,critical analysis of all those factors, whicll are pre-conditions for success of collective bargaining process, beconles even more inlportant and essential.
Pre-conditions for success of collective bargaining are as follows :
- An organised trade union movement
- No external pressure
- Parity of strength among bargaining agents
- Supportive legislations
- Trust and understanding
Collective Bargaining Procedure
The collective bargaining process may be initiated either by management or by trade unions' representatives. The other party should immediately acknowledge the receipt of communications and convey their willingness to discuss the issue. The better approach would be a verbal confirmation along with a letter of confirmahon subsequently. During the course of the discussion between head of human resource management department and the PresidenVSecretary of the majority trade union Cnllective Bargaining before the commencement of collective bargaining, the understanding should be arrived at on the following points :
- Pre-negotiahon discussion
- Size of the negotiation team
- Understanding on the probable period to conclude negotiation
- Venue of negotiation
-Timing of negotiation
Approach during Negotiation
The ultimate success of the collective bargaining process depends on the approach of both the parties during the course of various negotiation meetings when they sit across the bargaining table. What are the strategies of d~fferent parties and how they respond to the offer made by the other party, set the tone ot discussion. Some of the major precautions to be exercised by both the parties are as under :Preparation before Negotiation by Parties.The trade union representatives should collect various important information and documents in support of their demand for various categories of employees,irrationality in the existing pay scales and allowances and deticlencies 111 the policies and procedure which need to be amended etc. before they s ~ across the bargaining table.
Management team should collect the deta~ls of pay scales aid allowances existing in other c o m p d e s from the same industry and same area, details of productions, trends in productions, etc. of the company along with the thorough study of the changes it would like to introduce in long term.proposal,^ and Counter Proposals
During the course of negotiation, proposal and counter proposals are given by management as well as by the union representatives. None of these proposals should be out-rightly rejected by any of the parties before thoroughly ex'unining it in full detail.
Exhibition of High Emotional Maturity
Both the parties should exhibit high emotional maturity by extending co-operation and collaboration throughout negot~ation. The tolie for such environment has to be set first by management by taking ~nitiatlve and Similarly,addressing the employees' representatives in a respectful ma~~ner.rigid and irrevocable stand should be avoided by either parties to ensure flexibility of approach from both slde. Instead of saying "No" to a substantial increase in wages, the management should give a counter proposal of proportionate increase in the production.
Classifification of Demands
The various demands arid counter demand should be classifled into two major categories, i.e. financial and non-financial. The demand that 1s not supported by majority of employees or managemeilt representatives sliould be given low priority.
Sequence of Discussion
Proper sequencing of discussio~i as to what should be discussed first and what should be discussed last, has a direct bearing on the success of collective bargaining process. Non-financial demands of the eniployees should be taken f i s t for discussion in order to create congenial atmosphere by management.This not only gives sense of achievement to employees but also creates an impression and understanding that management is keen to resolve all outstanding demands.
Give and Take Process
Althou@i collective bargaining is nothing but a process of glve and take only,yet who take first and reciprocate later or does not reciprocate later or does not reciprocate at all, has to be kept in mind throughout the negotiation process.The process of give and take should continue s~inultaneously on each and every issue instead of first keep on giving in anticipatioi~ of taking later.I 24.3.2 Scope and Possibilities in Construction The labour force in construction industry consists of mostly inter-state migratory labour which is not only illiterate but has the basic problem of survival in the state where they are working at the construction site. They are engaged mainly on contractual, casual or temporary basis. Hence, they are totally unorganised and unaware of their rights. The security of job and survival on day to day basis is the main motive of their life.
It will take long time and sustained efforts on the part of central trade unions which are working in construction industry to unite the constructton workers under their banner and create awareness about their rights and responsibilities. At present except in large public and private sector undertakings like National Buildlng Construction Corporation Ltd. , Engineers Project India Ltd., Engineers India Ltd., Larsen & Tubro Ltd., Hindustan Construction Corporation Ltd., etc. that too the union of permanent employees only are indulging into collective bargaining with their employers. Therefore, although there is tremendous scope for improving the quality of work life as well as quality of personal life of construction workers through the process and instrument of collective bargaining but yet the possibilities of collective bargaining being successful in near future seems remote.Until & unless there is substantial improvement in the job stability and the level of literacy and consequential increase in the awareness level of the construction workers it seems a distant dream.
The Ministry of Labour, British Government has defined collective bargaining as follows "'The term Collective Bargaining is applied to those arrangements under which wages and conditions of employment are settled by a bargain in the form of an agreement made between employers or association of employers and workers organisation."
However, the above definition does not completely described the process but just gives the gist - the settling of terms arid conditions of employment by a bargain or akreement between representatives of organisations and serves as a starting point.The basic essence of bargaining in any organisation, is the pllilosophy, attitude and values of the n~ailagement and trade unioils leading to their intrinsic faith in the process and its effectiveness, glviilg equal opportunity and equal status as legitimate partners in tlie business of enterprise to each other. Whenever such consideratioil and understanding is missing. collective bargaining can never be successful inspite of the fact that both the parties may continue to negotiate with each other for montli and years together. The negotiation should be held with a view to reach an agreement between the parties. The principle of "give and take" has to be adopted by both the parties to create a conducive aid for success of collective bargaining.and harmonious industrial relations enivironment
In view of the following, collective bargaining c x i be defined as "a ilegotiation process between a employer or group of employers and a workinen organisation or a group of workmeii organisations regarding the working coiiditions and the term of employinent with a view to reach an agreement".
Methods
Collective bargaining as a process can be successful only if right type of conditions are prevailing in the industry and society. If tlle industrial relations environment 111 the country has to improve, collective bargaining has to be thc main 1001. Management and union have to change their views about the mutual r~lationship.Coercion, militancy etc. have to give way to understanding and co-operations.Management will have to share t l ~ e industry's prosperity witli the workers.Trade unions in our country are established on a sound footing and in the coming era, they will become even more stronger. Therecore, collective bargaining as a process is emerging more acceptable towards establishing employer-employee relationsl-lip. It is by this process only that employees are entering into areas which were so far known as "management prerogative". It is only through the instrument of collective bargaining that the employees will be able to protect their own interests. They will also be able to protect the business interest o f the company by resisting and checking c c m p t and unhealthy management practices. The concept of participative management can also be successful depending upon the degree of acceptability of collective bargaining as an instrument for resolving conflicts'and arriving at better understanding between management and employees. Therefore,critical analysis of all those factors, whicll are pre-conditions for success of collective bargaining process, beconles even more inlportant and essential.
Pre-conditions for success of collective bargaining are as follows :
- An organised trade union movement
- No external pressure
- Parity of strength among bargaining agents
- Supportive legislations
- Trust and understanding
Collective Bargaining Procedure
The collective bargaining process may be initiated either by management or by trade unions' representatives. The other party should immediately acknowledge the receipt of communications and convey their willingness to discuss the issue. The better approach would be a verbal confirmation along with a letter of confirmahon subsequently. During the course of the discussion between head of human resource management department and the PresidenVSecretary of the majority trade union Cnllective Bargaining before the commencement of collective bargaining, the understanding should be arrived at on the following points :
- Pre-negotiahon discussion
- Size of the negotiation team
- Understanding on the probable period to conclude negotiation
- Venue of negotiation
-Timing of negotiation
Approach during Negotiation
The ultimate success of the collective bargaining process depends on the approach of both the parties during the course of various negotiation meetings when they sit across the bargaining table. What are the strategies of d~fferent parties and how they respond to the offer made by the other party, set the tone ot discussion. Some of the major precautions to be exercised by both the parties are as under :Preparation before Negotiation by Parties.The trade union representatives should collect various important information and documents in support of their demand for various categories of employees,irrationality in the existing pay scales and allowances and deticlencies 111 the policies and procedure which need to be amended etc. before they s ~ across the bargaining table.
Management team should collect the deta~ls of pay scales aid allowances existing in other c o m p d e s from the same industry and same area, details of productions, trends in productions, etc. of the company along with the thorough study of the changes it would like to introduce in long term.proposal,^ and Counter Proposals
During the course of negotiation, proposal and counter proposals are given by management as well as by the union representatives. None of these proposals should be out-rightly rejected by any of the parties before thoroughly ex'unining it in full detail.
Exhibition of High Emotional Maturity
Both the parties should exhibit high emotional maturity by extending co-operation and collaboration throughout negot~ation. The tolie for such environment has to be set first by management by taking ~nitiatlve and Similarly,addressing the employees' representatives in a respectful ma~~ner.rigid and irrevocable stand should be avoided by either parties to ensure flexibility of approach from both slde. Instead of saying "No" to a substantial increase in wages, the management should give a counter proposal of proportionate increase in the production.
Classifification of Demands
The various demands arid counter demand should be classifled into two major categories, i.e. financial and non-financial. The demand that 1s not supported by majority of employees or managemeilt representatives sliould be given low priority.
Sequence of Discussion
Proper sequencing of discussio~i as to what should be discussed first and what should be discussed last, has a direct bearing on the success of collective bargaining process. Non-financial demands of the eniployees should be taken f i s t for discussion in order to create congenial atmosphere by management.This not only gives sense of achievement to employees but also creates an impression and understanding that management is keen to resolve all outstanding demands.
Give and Take Process
Althou@i collective bargaining is nothing but a process of glve and take only,yet who take first and reciprocate later or does not reciprocate later or does not reciprocate at all, has to be kept in mind throughout the negotiation process.The process of give and take should continue s~inultaneously on each and every issue instead of first keep on giving in anticipatioi~ of taking later.I 24.3.2 Scope and Possibilities in Construction The labour force in construction industry consists of mostly inter-state migratory labour which is not only illiterate but has the basic problem of survival in the state where they are working at the construction site. They are engaged mainly on contractual, casual or temporary basis. Hence, they are totally unorganised and unaware of their rights. The security of job and survival on day to day basis is the main motive of their life.
It will take long time and sustained efforts on the part of central trade unions which are working in construction industry to unite the constructton workers under their banner and create awareness about their rights and responsibilities. At present except in large public and private sector undertakings like National Buildlng Construction Corporation Ltd. , Engineers Project India Ltd., Engineers India Ltd., Larsen & Tubro Ltd., Hindustan Construction Corporation Ltd., etc. that too the union of permanent employees only are indulging into collective bargaining with their employers. Therefore, although there is tremendous scope for improving the quality of work life as well as quality of personal life of construction workers through the process and instrument of collective bargaining but yet the possibilities of collective bargaining being successful in near future seems remote.Until & unless there is substantial improvement in the job stability and the level of literacy and consequential increase in the awareness level of the construction workers it seems a distant dream.
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