Collective Bargaining is a group process of negotiating work-related issues with the anticipation of agreeing. Bargaining is done between two parties: the employer & the employees. It is called collective because both the employer & the employee act as a group rather than as individuals. It is known as Bargaining because the method of reaching an agreement involves proposals and counter proposals, offers & counter offers & other negotiations.

Features of Collective Bargaining

The important features of collective Bargaining are as follows.

1. Group and Collective Action

Group and Collective action is the main feature of collective Bargaining. It is a collective process in two ways. First, the workers collectively bargain for their shared interests and benefits. Secondly, the workers and management jointly arrive at an amicable solution through negotiations.

2. Strength

It is an industrial democracy at work. Across the table, both parties bargain from a position of equal power. In collective Bargaining, the bargaining power of both parties is equal.

3. Continuous Process

It is a constant process. It establishes a regular and stable relationship between the parties involved. It involves not only the contract negotiation but also the contract’s administration or application. The continuous process is the main feature of Collective Bargaining. It means that Bargaining is a day-to-day process consisting of several steps: organising, recognition, preparation for negotiation, negotiation, and contract administration.

4. Flexible

It is flexible, and the parties must adopt a flexible attitude throughout the Bargaining process since no party can afford to be rigid and inflexible. The unique feature of collective Bargaining is that both the parties concerned start negotiations with entirely different views. But finally, reach a point acceptable to both parties. It is, therefore, not a one-way street but a give-and-take process.

5. Voluntary

Collective Bargaining is a voluntary process by the management and workers. Both the parties come to the Bargaining to have a meaningful dialogue on various troubling issues.

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6. Dynamic

Collective Bargaining is a relatively new concept and is growing, expanding, and changing. The idea used to be emotional, turbulent, and sentimental in the past. But now, it is scientific, factual, and systematic.

7. Power Relationship

Collective Bargaining involves a power relationship. Workers want to gain the maximum from the management, and management wants to extract the maximum from workers by paying as little as possible. Both must retreat from their positions to reach a solution, accept less than what is asked, and give more than offered.

Scope of Collective Bargaining

The following topics come under the scope of collective Bargaining.

1. The Cooperation & Communication b/w trade union organisation and the management

It covers matters such as employers’ duties to consult, inform & decide in cooperation with the union and confidentiality clauses. Also, employers support trade union activities by providing them with technical facilities, etc.

2. Employment & Working Conditions

It covers matters such as employment contracts & termination of employment; principles of redundancy policy. Also, working time & working time schedules; & holiday & paid leave is included in it.

3. Wages & Remuneration

It covers matters such as the wage system & minimum wage tariffs; payment for working overtime & working on holidays. However, extra payments for difficult & risky working conditions & night work; & severance payment in the event of collective redundancies. In this area, the scope of Collective Bargaining is wide.

4. Occupational Safety & Health

These matters such as employee duties & cooperation with trade unions on safety and health issues. Preventive & corrective measures to improve working conditions & to reduce risk at work. Also, the establishment of trade union Safety & health delegates in companies.

5. Human resource development & Other Social issues

It covers matters such as Training & human resources development activities. Moreover, the creation & utilization of the Social fund in an enterprise.

6. Reduction of conflict between Management & trade unions

It covers the procedures applied in serious disagreements between social partners.

Functions of Collective Bargaining

Collective Bargaining plays an essential role in preventing and settling industrial disputes by performing the following functions.

1. Economic Strength

Increase the economic strength of employees & management.

2. Uniformity

Establish uniform conditions of employment.

3. Fair Redressal

Secure a prompt & fair redressal of grievances.

4. Norms

Lay down Fair rates of wages & other norms of working conditions.

5. Efficiency

Achieve an efficient functioning of the organization.

6. Stability

Build the stability & prosperity of the Company.

7. Regulation

It provides a method of regulating the conditions of employment of those directly concerned about them. It is the very essential function of Collective Bargaining.

8. Solution

It solves the problem of sickness in industry and ensures old benefits, age pension benefits & other fringe benefits.

9. New Procedures

It creates new & varied procedures for the solution of problems as and when they arise. The employee is assured that he will be required to work under the stipulated condition incorporated in the agreement. Also, the employer is protected from unfair competition by those in similar industries.

10. Flexible Means

It provides a flexible means for the adjustment of wages & employment conditions to economic & technological changes in the industry. As a result of which, the changes in conflicts are reduced.

11. Democratic Principles

As a vehicle of industrial peace, Collective Bargaining is an essential & significant aspect of labor-management relations. Therefore, it extends the democratic principle from the political to the industrial field.

12. Industrial Jurisprudences

It builds up a system of industrial jurisprudence by introducing civil rights in the industry. In other words, it ensures that rules rather than arbitrary decisions conduct management.