Page 210 - DMGT516_LABOUR_LEGISLATIONS

Unit 8: Collective Bargaining

8.3 Types of Bargaining Notes

The types of collective bargaining according to the region/industry level to the enterprise or
even plant level are as under:

Industry Bargaining

The industry level collective bargaining is common in the case of core industries in public sector
like coal, steel, cement, ports, banks and insurance. The collective bargaining on industry basis
is practiced by traditional industry groups like textiles, plantations and engineering in the
private sector.

Enterprise Bargaining

The importance of enterprise is growing as a bargaining level as the industry wide bargaining
is losing ground. Enterprise level agreements are steadily increasing in number and becoming
a point of decision-making.

Concession Bargaining

Concession bargaining originated in USA as a temporary measure to save jobs in the period of
economic depression. Concession bargaining was undertaken by the employers to face increased
competition and cope up with higher productivity requirements. Apart from accepting wage
reduction, other options considered under concession bargaining were: (a) shorter working
hours; (b) freeze on fresh recruitment; (c) restriction on overtime; (d) training and retraining of
workers.
In USA the concession bargaining agreements included wage cuts in case of newly hired workers,
curbing the cost of health insurance, and increased compensation for voluntary separation. In
India, it has taken the form of downsizing of employees and offering of voluntary retirement
schemes.

Composite Bargaining

The contents of conventional bargaining are mainly wages, allowances and benefits, and
conditions of work and employment. The composite bargaining calls for a strategic shift from
conventional bargaining to include issues like quality of work life, productivity improvement,
enhancing of market share or even financial matters. Composite bargaining reflects a change in
strategy from confrontation to coordination between management and labour for the promotion
of their common interest of survival and progress of enterprises.

8.4 Importance of Collective Bargaining

Collective bargaining includes not only negotiations between the employers and unions but
also includes the process of resolving labor-management conflicts. Thus, collective bargaining
is, essentially, a recognized way of creating a system of industrial jurisprudence. It acts as a
method of introducing civil rights in the industry, that is, the management should be conducted
by rules rather than arbitrary decision-making. It establishes rules, which define and restrict the
traditional authority exercised by the management.

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