Collective Bargaining: An Overview
Collective Bargaining is a process of negotiating through mutual discussion and understanding of the various needs and demands of employees in an organization. The purpose of collective bargaining is to reach an agreement to regulate working conditions. The process takes place between the employer and a group of employees.
Activities in Collective Bargaining
• **Distributive Bargaining** – Also termed as conjunctive bargaining, this connects two things. In this form of bargaining, one group wins and the other loses.
• **Integrative Bargaining** – Also known as cooperative bargaining, this form aims for overall improvement in the organization's functioning. No party loses here, so the level of cooperation is higher between management and employees.
• **Attitudinal Restructuring** – This aims at developing a change in the attitudes of management and employees. The purpose is to reduce bitterness and develop a congenial atmosphere.
• **Intra-organizational Bargaining** – This type of bargaining aims at achieving consensus within the trade union and management group.
Steps of Collective Bargaining
• **Preparatory** – In this stage, two negotiation teams are formed, comprising members from both sides. Both sides need to assess their situation to identify matters for discussion. The issues raised should be genuine and supported by valid reasons.
• **Discussion** – In this stage, the ground rules governing the negotiation process are set with the agreement of both parties.
• **Proposal** – The issue for which the meeting is called is defined, and possible solutions are put forth.
• **Bargaining** – This is the phase where actual bargaining takes place, and its purposes are decided.
• **Settlement** – After a consensus is reached, this stage involves the effective joint implementation of the agreement.
Collective Bargaining Agreement
For every procedure, there is an agreement. In the collective bargaining process, there is a Collective Bargaining Agreement, which consists of two forms:
1. **Procedural Agreement:** It deals with the relationship between employees and employers to resolve individual and group issues. It follows the company's rules.
2. **Substantive Agreements:** This kind of agreement deals with specific issues like Payroll (basic pay), Policy (leave policy), Benefits (bonus payment), etc.
Characteristics of Collective Bargaining
1. It is a group process that involves at least two parties.
2. It is a negotiation through mutual understanding, discussion, and compromise.
3. It is a formal process where all parties follow certain rules and procedures.
4. It is a constructive and continuous process.
5. It is a flexible process consisting of various steps.
6. The process works on the basis of mutual trust and understanding between the two parties.
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