Understanding Collective Bargaining: How Does It Shape Your Workplace?

What is collective bargaining?

Collective bargaining is a process where representatives of workers (usually labor unions) negotiate with employers to determine wages, working conditions, benefits, and other aspects of employment. This negotiation process aims to reach agreements that are beneficial to both parties and ensure fair treatment of employees. It is a crucial aspect of labor relations and plays a significant role in shaping the working environment within organizations.

It's a bargaining process between the employer (or their nominees) and the employees (and their nominee) on anything related to work or job. It can involve raises, leaves, bonuses, etc.

An industrial dispute arises when collective bargaining fails. You can find its definition in your industrial relation law. Since I am from Pakistan, I have a definition according to Pakistani rules and regulations, not Indian, so check it out in your law.

Umekulsoom

Hi,

In a lighter vein, we call collective bargaining a process where the management bargains and the union collects!

In serious terms, it is a process of discussion and negotiation between two parties on terms and conditions under which continuous service is performed.

Cyril

Hi Arpita,

Collective bargaining is a process whereby the unions collectively bargain with the management for various benefits that must be provided to the workers. For example, if workers want a 10% hike in their wages, the trade union (TU) on their behalf sits with the management and says, "We want a 10% hike in wages." The management obviously tries to bargain and may offer only a 7% hike. In response, the TU may insist on not less than a 9% hike in any case. Therefore, both the TU and management are essentially bargaining, and they collectively bargain until they reach a situation that is agreeable to both parties.

That's collective bargaining. It is essential to mention here that collective bargaining is different from workers' participation in management (WPM), where the workers actually take part in management.

Arpita