Answer:
There are some basic objectives of collective bargaining on that basis whole process generally work, these are:
- Settle the conflicts related to working conditions and wages.
- To protect the interest of the workers through collective action.
- To resolve the difference between the workers and management through voluntary negotiations and to arrive at a consensus.
- To avoid third party intervention in matters relating to employment.
- Practically speaking any issues that has any relevance to management and workers becomes the subject matter of bargaining.
Features of Collective Bargaining
“Collective Bargaining is a mutual obligation on the employer and employee to bargain in good faith towards the settlement”. Keeping this statement in mind let’s explain the features of collective bargaining in detail:
- Collective: It’s collective in two ways:
- All the workers collectively bargain for their collective interest, because they do not have individual capacity.
- Workers and the management jointly arrive at an amicable solution through negotiations. The Union is expected to bring out the common consensus on collective issues rather than individual issues.
- Bargaining Power: In collective bargaining the bargaining strength of both the parties across the table is equal. Ideally it is industrial democracy at work. It will only be democratic only if both the parties are equipped with knowledge and skill. The strength of the union also depends on the demand and supply of working force. Similarly how much capital is invested upon one worker also determines the ratio of bargaining power. For example: A pilots union would have more bargaining power than the union of road transport. Because the capita land stake invested on the pilot is much higher than the drivers.
- Flexible: In collective bargaining both the parties should have to flexible mental set up to arrive amicably at a common consensus.
- Voluntary: Both the parties come in front of each other voluntary in order to arrive at a voluntary agreement, which is mutually acceptable to both the parties.
- Continuous: Collective bargaining not only commences with negotiation and ends in argument, but it’s a continuous process that includes implementation of the agreement and also further negotiations.
- Dynamic: It’s a dynamic process because it involves the following:
- A process of agreement which itself contains various concepts which may change and alter time to time.
- The implementation process is also on going.
- The mental makeup of the parties keeps on changing.
- Various strategies used by both the parties keeps on changing based on the demand of the situation.
- We all are a part of the global economy and the product, consumer’s taste; market place etc keeps on changing. This has tremendous effect on companies. The same has impact on the bargaining as well.
- Power relationship: Both the parties want to extract the maximum from each other. But to reach a consensus both the parties have to retreat from their positions in order to reach a common consensus. In such an attempt both the parties try to reach on a common ground without any serious dilution of their power. Example: If the job of the worker is not skilled and he is being easily replaceable, he would have lesser bargaining power. Because, there is a huge mass of unemployed youth waiting to be replaced.
- Representation: The Collective Bargaining process must be represented by those who have the capacity to take decisions.
- Bipartite Process: The employees and the employers negotiate the issue directly across the table. And there is no third party intervention like pressure groups, legal consultants.
- Good Faith Bargaining Process: Good faith bargaining is characterized by the following events:
- Meeting for the purposes of negotiations, the contract is used scheduled and conducted with the union of responsible time and place.
- Realistic proposals are submitted.
- Reasonable counter proposal should be offered.
- Each party has to sign once it has been completed.
