Collective Bargaining: Definition, Objectives, features, advantages, Types
Collective Bargaining: Definition, Objectives, features, advantages, Types: The term “collective Bargaining” was developed by the famous authors in the field of trade unions named Sydney and Beatrice Web in their treatise known as “History of Trade unions”. Determining all the terms and conditions of employment as well as sort out disputes by making some expected negotiations between the subordinates and the manager. It is undeniable fact that these parties also have the right to use economic weapons as well as lockouts to arrive at a decision.
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Collective Bargaining: Definition, Objectives, features, advantages, Types
What do you understand by collective bargaining?
Collective bargaining is a blend of two words such as “Collective” which means a group of people and “bargaining” means to negotiate. It involves counter-proposals, offers, counter-offers, and proposals. It directly means that collective bargaining between the two working groups of people such as employees and the employer. The results of such negotiations lead to mutual understanding and also, give and take principles among workers and the management.
Definition of Collective Bargaining
As defined by Michael J. Jucious, collective bargaining is “a process by which employers, on the one hand, and representations of employees, on the other hand, attempt to arrive at agreements covering the conditions under which employees will contribute and be compensated for their services.”
According to Beach, “Collective Bargaining is concerned with the relations between unions reporting employees and employers (or their representatives).”
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Objectives
The primary motive of collective bargaining is to come up with a mutual understanding of a decision between the employee and the employer. Also, they agree with all the terms and conditions related to employment.
Here, we have some of the major objectives of collective bargaining that are segregated into some sub-categories. Let us take a look at these below.
- To enhance and maintain good and cordial relationships between the management and the employees.
- Protect the interest of both employees as well as employers.
- To keep the intervention of governmental authorities away.
- To develop democracy among the industry.
Main features of Collective Bargaining
It is a fact that the underlying duty of collective bargaining is to indicate fair and democratic actions to sort out the disputes between the two working groups within the organization. It minimizes all the unexpected consequences to keep control of the industrial unrest and also, it is the normal mode of solving the outstanding problems of the workforce.
Here are some other highlighted features of collective bargaining that are still needed to disclose. Let us have a look at these below.
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1. Actions of the group
Apart from individual action, it is a group action and both the parties involved in the issues are dealing with a different group of people. Delegates indicate the employers, and on the other side, the trade union represents the employer or the management.
2. A continuous process
Collective bargaining is an on-going process and does not end with a single agreement. Further, it also gives a harmonious as well as the well-organized relationship between the employee and the employer.
3. A Bipartite Process
The whole process of collecting bargaining is two-sided as two parties are involved in it. Both the parties from an employee as well as employer sides need to make decisions collectively. Further, no third party gets into it and even, not any government authority. It is a mutual process based on given-and-take instead of taking it or leave it methods of coming up with a dispute settlement.
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4. A procedure
It is a whole procedure as it includes a lot of steps. It begins with a demand charter of workers and ends at a mutual agreement or a kind of contract. The agreement is the base of labor-management relations for a long time within an enterprise.
5. Flexible and not Fixed
There is no such rigid rule to reach an agreement but there is a scope for compromise. The method of giving and take works until a final agreement is accepted by both parties as involved.
6. Industrial Democracy at the workplace
Collective bargaining works on the principle of Industrial democracy and it indicates negotiations among the workers with the employer or employee. However, there is not a mere sign of permitting seniority, an increase in wage, and vacations under collective bargaining.
Importance of Collective Bargaining
Collective Bargaining aims at making a mutual understanding between the management and the workers to settle all disputes as it may arise. The whole process is very important from workers’ and employer’s points of view.
The role of collective bargaining is evaluated from the perspective as given below:
1. From Management’s perspective
The highlighted objective of the organization is to get the work done at a reasonable cost and also earn a definite amount of profit. It is a must for the management to utilize their human resources at its best. In this case, cooperation is required from the employee’s side and collective acts as a device to develop this. Most attributes of the labor disputes are based on the rumors, causes, and some myths.
2. From labor and Trade Union’s perspective
Labor does not have bargaining power. Usually, there is no power in the hands of the worker and they are perishable and thus, the management continuously exploits them. Through the process of collective bargaining, the worker class is engaged in becoming the power to prevent themselves from exploitation and also protect protects their interest.
Certain restrictions are imposed on the employer through this entire procedure. All employers deal on equal footings and the wage rate, as well as employment conditions, can be changed by only negotiating with the labor. In this way, the employer does not have the freedom to impose their decisions.
The trade unions are only entitled to run the process of collective bargaining and acts as a bargaining agent for workers.
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3. From the Government’s perspective
The government is also associated with the process of collective bargaining. All the rules and legislation related to labor are established by the government and make sure that these are implemented in a better way. If any person is not following such legislations, then the government takes strict actions to enforce all.
In such a scenario, collective bargaining protects the government from using force because a mutual will be signed between both parties for the proper implementation of all the legislations. It minimizes labor problems and promotes industrial peace.
Advantages
Here are some of the benefits of collective bargaining which we are going to discuss below. Let us take a look at merits which would be helpful for both the parties.
- Awareness: The underlying advantage of collective bargaining is that both parties get to know what they are expecting from each other and are also aware of the rights. It is helpful to decline the number of conflicts that may happen later and also make all the business operations more efficient.
- Protection: After going through the process of collective bargaining, the workers know that they have some sort of protection from the employer’s exploitation.
- No deaf ears: When the employer is dealing with workers, then they have to listen to the queries of the employees and fulfill them as it is possible.
- Fight for rights: The employees can fight back for their rights and collective bargaining allows them to stand for their betterment.
- No strikes: It reduces the strikes as if the employees are not happy with the decisions of their management, and then they have the option of go on strike. Further, this will hinder the business operations and the business suffers a loss. Thus, collective bargaining helps businesses to arrive at a mutual understanding of their labor.
- Security and stability: The employees do not have any fear of losing the job or get terminated but if they will be, then they have a labor union who can support them through collective bargaining.
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Types of Collective Bargaining
Bargaining is done on various bases and according to the demands or disputes of the laborers from the management. So, collective bargaining is done in four different parts and here, we are going to discuss these below in brief.
1. Distributive bargaining
It is the most common type of bargaining and involves a zero-sum of negotiation. In this type of bargaining, one party wins however other losses. Both parties try their best to maximize their respective profits and resolve issues like a bonus, wages, benefits, and so on. This is also known as conjunctive bargaining.
This bargaining includes initial offers, target points, resistance points, and ranges for settlement too.
2. Cooperative Bargaining
It is a type of bargaining under which both parties are trying to arrive at a mutually beneficial method in which they both win. Both parties sort out the conflicts with the motive to provide benefit to both. Interests and concerns are shared by both parties and they figure out the possible solutions.
For instance, when the business firm is in a recession, they cannot afford to offer a high wage rate as demanded by their employees. Both parties want to survive in hard times and they are willing to arrive at flexible employment terms.
3. Productivity Bargaining
Both parties need to get a better understanding of the following concepts and arrive at a mutual understanding. Let u have some concepts below.
- Differentiation between productivity and intensity of the work
- How to evaluate the work-study?
- ILO instructions (like personal needs, allowance for fatigue and hazard, etc.)
- Improvement in system and method.
- Necessary skills and knowledge for productivity purposes.
4. Composite Bargaining
It is believed that productivity bargaining inclined the work burden of employees. The routine life of workers becomes uneasy due to rationalization, strict norms of productivity, and the introduction of innovative technologies. So, composite bargaining introduces as a solution to all such uncomfortable changes.
For instance, when the standards are set by the unions, then they make sure that the workload of workers will not increase.
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Conclusion
To encapsulate, the overall purpose of collective bargaining is to arrive at a mutual understanding between both parties. All the labor employment terms and conditions must be followed by the organization as set up by the government.
But the whole process only works well if it is done without any abuse and partiality. Trade and labor unions must work honestly to arrive at a decision that benefits both parties.
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