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Unit 7: Industrial Relations

Some Pre-conditions for Successful Collective Bargaining Notes

A pluralistic outlook involves acceptance within a political system of pressure groups (e.g.
religious groups, unions, business associations, political parties and so on) with specific
interests with which a government has dialogue with a view to effecting compromises by
making concessions. Pluralism implies a process of bargaining between these groups, or
between one and more of them on the one hand and the government on the other. It
therefore recognizes these groups as the checks and balances which guarantee democracy.
It is natural that in labour relations in a pluralist society collective bargaining is recognized
as a fundamental tool through which stability is maintained, while freedom of association
is the sine qua non without which the interest groups in a society would be unable to
function effectively. There can therefore be no meaningful collective bargaining without
freedom of association accorded to both employers and employees.

The existence of freedom of association does not necessarily mean that there would
automatically be recognition of unions for bargaining purposes. Especially in systems where
there is a multiplicity of trade unions, there is a need for predetermined objective criteria
operative within the industrial relations system to decide when and how a union should be
recognized for collective bargaining purposes. The obvious way would be to recognize the
most representative union, but the criteria used to decide it and by whom may differ. It is
in some systems determined on the basis of the union needing to have not less than a
particular percentage of the workers in the enterprise in its membership. This may be
decided by a referendum in the workplace, or by an outside certifying authority (such as
a labour department or an independent statutory body), or by reference to “check off”. There
may be a condition that once certified as the bargaining agent there cannot be a change of
agent for a prescribed period (e.g. one or two years) in order to ensure the stability of the
process.

Especially in developing countries some of which have a multiplicity of unions, there is
sometimes a problem of unions being unable to secure observance of agreements by their
members. Where a labour law system provides for sanctions for breaches of agreements, the
labour administration authorities may be reluctant to impose sanctions on workers. Where
there is frequent non-observance of agreements or understandings reached through the
collective bargaining process, the party not in default would lose faith in the process.
Support of the labour administration authorities is necessary for successful collective
bargaining, and this implies that they will:
• provide the necessary climate for it, e.g. provide effective conciliation services in the
event of a breakdown of the process, and provide the necessary legal framework for
it to operate in where necessary;
• not support a party in breach of agreements concluded in consequence of collective
bargaining;
• as far as is practicable, secure observance of collective bargaining agreements;
• provide for the settlement of disputes arising from collective bargaining if the parties
themselves have not so provided.
It is an obvious condition for successful collective bargaining that both parties bargain in
good faith otherwise the process is unlikely to yield positive and enduring results.

Representative and strong unions are necessary to ensure that there is equality in the
bargaining positions of the parties and to ensure the observance of agreements. Where the
employer is represented by an organization which is the other party to the process, such
organization should be similarly effective. Both the management and union should keep
their managers and members respectively well informed as a lack of proper communication
and information can lead to misunderstandings and even to strikes. Sometimes managers

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