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Human Resources Management - Collective Bargaining

Objectives, Approaches, Importance and Process of Collective Bargaining

   Posted On :  14.06.2018 10:02 pm

Collective bargaining has benefits not only for the present, but also for the future. The objectives of collective bargaining are:

Objectives


Collective bargaining has benefits not only for the present, but also for the future. The objectives of collective bargaining are:

1. To provide an opportunity to the workers, to voice their problems on issues related to employment

2. To facilitate reaching a solution that is acceptable to all the parties involved

3. To resolve all conflicts and disputes in a mutually agreeable manner.

4. To prevent any conflicts/disputes in the future through mutually signed contracts

5. To develop a conducive atmosphere to foster good industrial relations

6. To resolve issues through third party (government) involvement in case of conflicting interests of the practices involved.

7. To provide stabile and peaceful industrial relations in the organization

8. To enhance the productivity of the organization by preventing strikes, lockouts etc.

Approaches

 
Collective bargaining has been viewed from three perspectives:

1. As a process of social change

Collective bargaining acts as a technique of long- run social change, leading to restructuring in the power hierarchy of competing groups.

2. As a peace treaty between the conflicting parties

It serves as a peace treaty between both parties in case of continued conflict. However, as the compromise is a temporary truce, each party would like to modify the contract at the earliest opportunity.

3. As a system of industrial jurisprudence

It is a rule-making or legislative process, in the sense that it formulates terms and conditions under which labour and management will co-operate and work together for a specific period.

Importance

 
In summary, collective bargaining offers the following benefits to both employers as well as employees:

1. It helps increase economic strength of both parties at the same time protecting their interests.

2. It helps establish uniform conditions of employment with a view to avoid occurrence of industrial disputes.

3. It helps resolve disputes when they occur.

4. It lays down rules and norms for dealing with labour.

5. It helps usher in democratic principles into industrial world.

Process

Collective bargaining has two facets:

1. Negotiating the work conditions that become the collective agreement (contract) describing employer-employee relationship on the job
 
2. Interpreting and enforcing the collective agreement (contract administration) and resolving any conflict arising out of it.

The process of collective bargaining involves six major steps:

1. Preparing for negotiations

2. Identifying bargaining issues

3. Negotiation

4. Reaching the agreement

5. Ratifying the agreement

6. Administration of the agreement

Preparing for negotiation


Careful advance preparations by employers and employees are necessary because of the complexity of the issue and broad range of topics to be discussed during negotiations. Effective bargaining means presenting an orderly and factual case to each side.   

Tags : Human Resources Management - Collective Bargaining
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