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Unit 13: Industrial Relations

negotiations with representatives of unions who are authorised to bargain with the Notes
employer on work-related matters.
9. Bipartite Process: The employers and the employees negotiate the issues directly, face to
face across the table. There is no third party intervention.
10. Complex: Collective bargaining is a complex process involving a number of procedures,
techniques and tools: preparation for negotiations, timing, selection of negotiators, agenda,
tedious negotiations, make up of agreement, ratification, enforcement, etc.

13.2.2 Objectives

The main objectives of collective bargaining are given below:
1. To settle disputes/conflicts relating to wages and working conditions.

2. To protect the interests of workers through collective action.
3. To resolve the differences between workers and management through voluntary
negotiations and arrive at a consensus.

4. To avoid third party intervention in matters relating to employment.

13.3.3 The Process of Collective Bargaining

The following steps are involved in the collective bargaining process:
1. Identification of the Problem: The nature of the problem influences whole process. It also
influences selection of representatives, their size, period of negotiations and period of
agreement that is reached ultimately. As such it is important for both the parties to be
clear about the problem before entering into the negotiations.
2. Collection of Data: Both labour and management initially spend considerable time
collecting relevant data relating to grievances, disciplinary actions, transfers and
promotions, lay-offs, overtime, former agreements covering wages, benefits, working
conditions (internal sources) and current economic forecasts, cost of living trends, wage
rates in a region across various occupations, competitive terms offered by rivals in the
field, etc.
3. Selection of Negotiators: The success of collective bargaining depends on the skills and
knowledge of the negotiators. Considerable time should, therefore, be devoted to the
selection of negotiators with requisite qualifications. They must know when to listen,
when to speak, when to stand their ground, when to concede, when to horse-trade, and
when to make counter proposals. Timing is important. Effective speaking and debating
skills are essential.

4. Climate of Negotiations: Both parties must decide an appropriate time and set a proper
climate for initial negotiations. At this stage the parties must determine whether the tone
of the negotiations is going to be one of mutual trust with 'nothing up our sleeves', one of
suspicion with lot of distortion and misrepresentation, or one of hostility with a lot of
name calling and accusations.
5. Bargaining Strategy and Tactics: The strategy is the plan and the policies that will be
pursued at the bargaining table. Tactics are the specific action plans taken in the bargaining
sessions. It is important to spell out the strategy and tactics in black and white.
6. Formalising the Agreement: When a solution comes through what is popularly known as
'good faith bargaining' (Both parties are making every reasonable effort to arrive at

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