Collective Bargaining

Collective bargaining is one of the efficient ways of resolving industrial disputes. It is concerned with the relations between trade unions representing workers and the management representing employers. It is the distinct feature of modern industrial era. Industrial peace and harmony can be achieved only if there are healthy
industrial relations in the country. Collective bargaining is defined to cover the negotiation, administration, interpretation, application and enforcement of written agreement between employers and unions representing their employees settling for the joint understanding as to policies and procedures governing wages, rates of pay, hours of work and other condition of employment, so the collective bargaining is the technique of solving an industrial dispute. The term collective bargaining can be defined as;

According to E. B. Flippo, “Collective bargaining are a process in which the representatives of a labour organization and the representatives of the business organization meet and attend to negotiate a contract or agreement which specifies the nature of the employee-employer union relationship.”

Thus, the collective bargaining is the process of voluntary agreement. It is an agreement under which employees jointly or collectively undertake to resolve their existing or future conflicts or differences through negotiation usually between interested parties and if necessary, with the assistance of the third party. The agreement is known as labour contract or a union contract or labour management agreement. It gives the mutually agreed terms and conditions of services and represents voluntary arbitration and never a compulsory adjustment.

Importance of Collective Bargaining

Collective bargaining is considered as important for shaping better labour relation because of the following reasons.
  • It is flexible means of adjusting wages and conditions of employment to changing economic, social, political, technological and other factors. Both the parties can meet whenever they desire and can adopt the term and conditions suited to the changing environment.
  • It is an effective method of regulating the conditions of employment of the worker by trade unions.
  • Collective bargaining is helpful in fixing standards of every worker and establishing a code of conduct defining rights, duties and obligations of each party. In other words, through collective bargaining some kinds of industrial jurisprudence is created.
  • Collective bargaining results in better understanding and empathy between employer and workers. When issues regarding wages, incentives, grievances and complaints are discusses at the bargaining table, there is absolutely no room for misunderstanding between workers and management.

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