COLLECTIVE BARGAINING
* Dr. Shanmukha Rao Padala ** Dr. N.V.S. Suryanarayana
Collective bargaining involves discussion and negotiation between two groups of employer-employees as to the terms and conditions of the employment. Collective' means both the employer and employee act as a group rather than as individuals. It is known as bargaining' because the method of reaching an agreement involves proposals and counters proposals, offers and counter offers, strategies and counter strategies. Collective bargaining increases the economic strength of unions and management, to establish uniform conditions of employment with a view to avoiding industrial disputes and maintaining stable peace in the Industry.
The collective bargaining concept first identified by Sidney and Beatrice Webb in U.K. and also by Samuel Campers in the USA. The pioneers of plant level collective bargaining in India were Tata Iron and Steel Company Limited and Tata Workers Union in 1956 at Jamshedpur. The public sector iron industries in India had concluded industry-wise settlements. The growth of collective bargaining was linked to the growth of trade unions of employees at first and of employers latter. Industrial Revolution is boosting to motivate the employees' unions in the collective bargaining system.
According to Sydney and Beatrice Webb, "collective bargaining is a method by which trade unions protected and improved the conditions of their members working lives." Gary Dessler states that the collective bargaining is "the process through which representatives of management and the union meet to negotiate a labour agreement. Both parties are making every reasonable effort to arrive at agreement, proposal are being matched with counter proposals." In USA collective bargaining policy is to be implemented through the National Labour Relations Board (NLRB) and the Federal Courts.
According to the National Labour Relations Act of USA described collective bargaining as "to bargain collectively is the performance of the mutual obligation of the employer and the representative of the employees to meet at reasonable times and confer in good faith with respect to wages, hours and terms and conditions of employment, or the negotiation of an agreement, or any question arising there under, and execution of a written contract incorporating any agreement reached if requested by either party to agree to a proposal or require the making of a concession."
The National Labour Relations Act (NLRA) of USA specifies that it is an unfair labour practice for the employer to refuse to bargain collectively with chosen representatives of a certified labour organization. It is the public policy of the USA that the determination of employer-employee relationships in firms engaged in interstate commerce shall take place through collective bargaining. The Labour-Management Relation Act (LMRA) of USA also specifies that it is an unfair practice for the representatives of labour organizations to refuse to bargain in good faith with the employer.
There are many types of approach to labour-management relation for collective bargaining based on the number of practice involved in collective bargaining systems are divided into: Unilateral Approach, the employer alone decides the terms and conditions of employment for his workers assuming that he knows what is best for them; Bipartite Approach, the employer negotiates with his workers; and Tripartite Approach, besides the two main parties, a third party also participates in the negotiations.
According to Walton and McKersie, a collective bargaining process based on demands of the parties is divided into four types, such as: Distribute Bargaining involves haggling over the distribution of surplus. Under this, the economic issues like wages, salaries and bonus are discussed. In which one party's gain is another part's loss. Integrative Bargaining involves negotiation of an issue on which both parties may gain, or at least neither pary losses, example, bargaining over a better training or better job evaluation system. Attitudinal structuring involves shaping and reshaping, some attitudes like trust or distrust, friendliness or hostility between labour and management; and Intra-organizational Bargaining is a type of maneuvering to achieve consensus with the workers and management; even within the union there may be differences between different groups.
Based on the scope of coverage collective bargaining system is divided into three types, such as: Plant Level Bargaining, here negotiations are conducted between the management of the plant/factory and representatives of the employees of the plant/factory. Corporate Level Bargaining, in which all the plants/factories within the organization come together, to enter into collective bargaining system. Industry Level Bargaining, several units in the same industry band together and form an association, which negotiates with a union having a similar status. National Level Bargaining, the representatives of the trade union and the employers negotiate and arrive at a settlement, but the industry cum-region convention in India, such national level agreements are few.
Based on bargaining items: Mandatory Bargaining items, in which bargaining is mandatory under the law, they include wages, hours, rest periods, layoffs, transfers, benefits and severance pay. Voluntary or Permissible Bargaining items, in which a part of negotiations only through the joint agreement of both management and union. Neither party can compel the other to negotiate over voluntary items. Illegal Bargaining items are forbidden by law, for example, a clause agreeing to hire union members exclusively would be illegal in a right-to-work state, discriminatory treatment, separation of employees based on race etc.
SCOPE OF COLLECTIVE BARGAINING:
Traditionally, wages and working conditions have been the primary focus areas of collective bargaining agreements now covers issues such as wages, bonus, over time, paid holidays, paid sick leave, safety wear, production norms, hours of work, performance appraisal, workers, participation in management, hiring, fixing of job evaluation norms and modernization.
COLLECTIVE BARGAINING IN INDIA:
In India, collective bargaining has not mode much headway particularly at industry and national levels, due to the following reasons:
Lack of strong and central trade unions and employer's organizations who can represent country wide interests.
Excessive dependence on compulsory adjudication for the settlement of industrial disputes. Third party intervention is easier than self-reliance.
Legislation and regulatory bodies like wage boards have reduced the area for collective bargaining.
Multiplicity of unions, inter-union rivalry, political dominance and poor leadership has resulted in weak trade union movement. There is no foolproof method for determining the majority union and no legislation for compulsory recognition of such union as the sole bargaining agent.
The Government provides little support to collective bargaining. It has little confidence in the bargaining strength of trade unions. There is fear of strikes and lockouts and inflation, which disrupt the planned economy.
Conditions of work and life differ widely in different parts of the country.
Collective bargaining requires a degree of maturity on the part of both the parties. It is a process that takes both time and skill, which have to be developed. It also provides workers participation through discussion and involvement in management decision-making process. Upgrade the communication skills, workers participation in management decisions, better remuneration, better working conditions etc. are the quality of work life factors. So collective bargaining is influence the employee's quality of work life.
COLLECTIVE BARGAINING
By: P.S.Rao., NVS.Suryanarayana
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