Page 207 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes Objectives

After studying this unit, you will be able to:
Explain concept and meaning of collective bargaining
Discuss nature and levels of collective bargaining

Analyze need and importance of collective bargaining
Discuss levels and legal framework of collective bargaining

Introduction

The prime objective of the industrial relations is to regulate the power of managements and
organised labour and to provide a mechanism is reconcile thereto. It presupposes equal status
before law of labour and management and acts as countervailing force to reduce the inherent in
equality in the collective power of the two parties. In the world of industry and commerce a
process has been evolving in the past century for the regulation between management and
workers of terms and conditions of service and the establishment of peaceful, orderly relations
at the place of work through mutual settlement of differences and cooperation of all those
engaged in the enterprise. The process is known as Collective Bargaining. In this unitan attempt
is made to explain the historical background for emergence of Collective Bargaining, its meaning,
characteristics and importance. The term Collective Bargaining was given co-currently by Sidney
& Beatrice Webb in U.K and Samuel Campers in the U.S.A.

8.1 Meaning of Collective Bargaining

The term Collective Bargaining was given co-currently by Sidney & Beatrice Webb in U.K and
Samuel Campers in the U.S.A. Collective Bargaining is a process of joint decision-making, a
democratic way of life in industry. It establishes a culture of bipartism and joint consultations
for establishing industrial harmony. It is called "Collective" because both employers and workers
act as a group rather than as individuals, and it is described as "bargaining" because the method
of reaching an agreement involves approach proposals and counter proposals, offers and counter-
offers and a give and take approach.

Collective bargaining is a procedure by which the terms and conditions of workers are regulated
by agreements between their bargaining agents and employers. Ever since the advent of modern
trade unions, the workers have been pressurizing their employers in a concerted manner for
improving the terms and conditions of employment, but the term 'collective bargaining' was
seldom used for this concerted action.
There are three concepts of collective bargaining with different emphasis and stress, namely,
marketing concept, government concept, and the industrial relations or managerial concept.

1. Marketing Concept: The marketing concept views collective bargaining as the means by
which labour is bought and sold in the market place. In this context, collective bargaining
is perceived as an economic and an exchange relationship. This concept focuses on the
substantive content of collective agreements on the pay hours of work, and fringe benefits,
which are mutually agreed between employers and trade union representatives on behalf
of their members.
2. Government Concept: The governmental concept of collective bargaining, on the other
hand, regards the institution as a constitutional system or rule making process, which
determines relation between management and trade union representatives. Here collective
bargaining is seen as a political and power relationship.

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