IR2
IR2
IR2
Theory :
Richrardson says “Collective Bargaining takes place when a number of work people enter into
a negotiation as a bargaining unit with an employer/group of employers with an object of
reaching an agreement on the conditions of employment of the work people”.
The process of collective bargaining emerged with a view to resolve the differences and
disputes between the employers who have divergent interests in industry. The essence of
collective bargaining is a bargain between interested parties and not a decree from outside
parties.
Concepts :
• It is a technique adopted by the management and unions to resolve
industrial conflicts.
• It plays a significant role in resolving industrial conflicts and industrial
actions.
• It helps in improving labour-management relations and productivity.
• It emerged as a result of industrial conflicts and growth of TU movements.
• Collective bargaining has two phrases – “Collective i.e. a group action and
“Bargaining” which suggests negotiating.
• It implies an original yet flexible and dynamic position from which both the
negotiating parties retreat gracefully to a compromising position.
• It is a function which partakes of the nature of psychology, debate,
philosophy, human relations, dramatics which are dependent on the
environment, economic strengths of both the parties.
• Important features of collective bargaining are –
i)It is carried out on collective not individual basis.
ii)It is flexible and mobile and fixed or static process.
iii)It is a two party process.
iv)It is continuous process.
v)It is industrial democracy at work.
vi)It is not competitive but complementary process.
vii)It is mixture of art & science.
viii)It is a logical process of resolving an industrial conflict.
ix)It is industrial democracy at work.
The management tries to achieve, through collective bargaining, goals like flexibility and
efficiency in operations, cost reduction etc.
Collective Bargaining enables both union and management to achieve –
• Increase economic strength.
• Establish uniform conditions of work with a view to avoiding industrial
disputes and maintaining stable relations.
• Prompt and fair redressal of grievances.
• Avoid major industrial actions like strike, lockout, go-slow and coercive
actions.
• Lay down fair rates of wages and norms of working conditions.
• Optimum utilization of human resources.
• Promote stability and prosperity of industry.
2.It should be conducted at plant level where both parties should be determined to arrive at an
agreed solution of their respective problems. The employer should be represented by
management and workers by their trade unions.
4.Negotiations are successful when parties rely on facts and figures to support their viewpoint.
Specialist like economists, productivity experts and professionals, should assist the union so
that they present their arguments effectively and meaningfully.
5.To ensure collective bargaining functions meaningfully, both parties should avoid unfair
labour practices. The negotiations should be conducted in an atmosphere of goodwill and
mutual confidence.
6.The terms of agreement should be documented. In case bipartite negotiations fail, parties
should rely on conciliation or arbitration for settlement. If no settlement is reached, parties
should be free to take industrial action.
7.The terms of agreement should be respected and implemented both in letter and spirit by
both the parties.
8.Any dispute arising out of terms of agreement should be referred to arbitrator for immediate
resolution.
Structure of Bargaining :
Collective bargaining is conducted in informal and formal manner on an ongoing basis at plant
level and at industry levels.
Informal negotiation is carried out on day-to-day basis at the shop floor level between the shop
floor supervisor / foreman and departmental representatives of the union regarding the work
related issues like deployment of workmen, station manning etc. where there is financial
issues.
Formal negotiation is carried out between the plant management i.e. plant manager / General
Manager & Personnel Manager, Production Manager / IE Manager and negotiating committee
deputed by union(s). The issues comprise of union’s Charter of Demands, production incentive
scheme, Rationalization, Automation, work related issues, VRS etc. Normally such negotiation
results into formal agreement with a definite period of 3 to 5 years and the same is reached at
bipartite/tripartite level.
Formal negotiation on financial issues as listed above is at times conducted in industry level
like cotton, jute, engineering industry etc. In this situation, a committee comprising of
employers’ representative as well as representatives of central unions operating in that
industry negotiate the demands at central level and arrive at settlement mostly with the
assistance of Conciliation Officer.
Contents of Agreement :
Signature of Negotiating Committees of union and management including the signature of the
Conciliation Officer in case the settlement is reached with the intervention of Conciliation
Officer under Section 12 (3) of The Industrial Disputes Act 1947.
Implementation of Agreement :
Onus of implementation of the terms of agreement mostly depends on the management with
regard to financial commitments made by them and also the workers’ commitments for
productivity linked issues and discipline. Implementation of the commitments, if delayed or
denied, attracts penal provisions under law. Once the commitments of agreements are
implemented, they become conditions of service for the workmen and any alteration of the
same can be done only through subsequent agreement only.
Davis says “It is a mental and emotional involvement of a person in a group situation which
encourages him to contribute to goals and share responsibilities in them”.
Gains of WP :
• Promotes balanced interactions which result in less resistance to
innovation.
• Enables members of the group to unfreeze their attitudes and engage
catheresis.
• Enables leaders to reinforce their position. They enhance status and
induce workers to abide by the decisions.
• It gives subordinates feeling that boss listens to the problems and
suggested solutions.
• Job gives a scope to demonstrate skills.
• Subjects individuals to group pressure in accomplishing tasks.
• It is beneficial economically, psychologically and sociologically.
Works Committee : The forum is required to be constituted under provisions of the ID Act,
1947 when the factory has 100 or more workers. Prior to this, few Works Committees were set
up in printing presses of the Govt. of India. TISCO had set up Joint Committees in 1958. The
objectives of setting up WCs was to settle the differences on the spot between the workers and
management. Decisions of the WC are recommendatory type & not binding. The ID Act has
laid down broad functions of WCs in terms of welfare, safety and health of the workers.
However, in practice, many industries use WC as a forum for settlement of differences at the
unit level. The number of workers representative in the WC should not be less than number of
management representatives.
Joint Management Council : The 2nd. 5 year plan gave emphasis on JMC. The Govt. of
India’s Industrial Policy Resolution of April 1956 emphasized the need for JMC. The functions
of JMCs are improvement of communication, working & living conditions, implementation of
safety measures, improvement of productivity, encouragement of suggestions and assistance
in the administration of laws and agreements, planning and execution of welfare activities,
retrenchment, rationalization, closure plans, introduction of new products, redeployment of
men and machinery, apprenticeship schemes.
Examples of Worker – Director in Board are in public sector industries like BHEL,HAL, Port
Trust, Hindustan Organic Chemicals Ltd., National Coal Mines Development Corporation,
Dock labour Board, National Newsprint & Papers Mills (Gujarat), National Textile Mills
(Maharastra, West Bengal, Assam, Bihar & Orissa).
Joint Council : Every industrial establishment having 100 or more employees should
constitute Joint Council. The features of Joint Council are as follows –
Unit Council : In 1977, Unit Council was announced by the Government of India in
organisations like hotels, restaurants, hospitals, air, sea, railway and road transport services,
port & docks, Electricity Board, STC etc. having 100 or more number of employees.
Features of the scheme are –
Plant Council : This council was formed in pursuance of the recommendations of the 2nd.
Meeting of the Group on Labour at New Delhi on 23.11.1985. The scheme is applicable to all
Central public sector undertakings. The features of this council are –
• One plant council for the whole unit. Minimum 6 and maximum 18
members of equal representation. 1/3rd. members should from supervisory
category and one women representative in case 15% or more female
employees exist.
• Tenure is for 3 years.
• CEO will be Chairman of the plant council.
• A Secretary will be appointed with adequate facilities for discharge of his
duties.
• Mid-term vacancies will be filled up through nomination.
• Meeting shall be held on consensus and shall be binding on all.
• Functions of plant council are –
a) Operational – productivity scheme-monthly targets- material supply-house
keeping – quality & improvement – machine utilization – suggestion
scheme – review of shop level bodies.
b) Economic – profit & loss statement, balance sheet- review of operating
expenses, financial results, cost of sales – labour & management cost.
c) Personal – absenteeism –problem of women workers- welfare schemes-
safety-township; administration- environmental; protection- community
development.
Shop Councils :
Features of Shop Council are –
• Industrial unit should have 500or more workers.
• Employer will constitute the council for each department or one council for
more than one department depending upon number of workers.
• Equal representation of employer and workers’ representatives.
• Employer’s representatives will be nominated from the department by the
management. Workers’ representatives will be working in the same
department and to be elected by them.
• The management will consult the union(s) for workers’ representatives.
• Total number of members will be max. 12.
• Decision will be based on consensus and not by voting.
• Decisions will be implemented within a month’s time.
• Decision of a shop council having bearing on other department, will be
referred to Joint Council for consideration / decision.
• Shop council will exist for 3 years.
• The council shall meet once in a month.
• The Chairman will be management nominee and vice-chairman will be
workers’ nominee.
• Functions of the council will be –
a) Assist management in meeting production target.
b) Improvement of productivity, efficiency, reduction of wastage, utilization of
machine capacity & manpower.
c) Reduce absenteeism.
d) Suggest safety measures.
e) Assist management in maintaining discipline.
f) Improving working conditions.
g) Suggest welfare measures.
h) Two-way communication.
i) Quality improvement.
j) Multiple skill development.
k) Cost reduction.
l) Periodic critical review of machines for safety.