Step – I Pre-negotiation Phase: This is the stage before starting collective bargaining. At his stage, the management wants to estimate the power and capacity of labour unions. At this stage, all the relevant data information and figures are collected so that the stage may be prepared for negotiation. Step – II Selection of Negotiators: At this stage, both the management and labour unions select their representatives who will take part in negotiations from their side. Only such persons are selected as negotiations that are fully acquainted with the problems on which negotiations are going to be held.
Step – III Strategy of Bargaining: Management should decide the basis strategies and policies that will be followed at the time of bargaining with employees. Everything must be made clear before goings to the bargaining table. In addition to this, the management should get due powers to enter into agreements with workers. Similarly, labour unions should also determine the strategies on the basis of which they will take part in negotiation.
Step – IV Tactics of Bargaining: The technique of collective bargaining depends upon the principle of “Give and Take”. Both the parties try to get more than they sacrifice. All the aspects of contracts are discussed in details. After this, the decisions are revolved and reviewed. The services of government mediators can also be used if required.
Step – V Contract: Fifth stage of the process of collective bargaining is to enter into a collective agreement. Such agreements are made for a certain time. These agreements give full details of security of job, grievance handling procedure, promotion policy, rules regarding lay off, rules regarding retrenchment, hours of work, rules regarding leaves, incentive schemes, security and health, managerial liability etc.
Step – VI Implementation of the Contract: The last stage of the process of collective bargaining is the implementation of the agreements entered into between management and labour unions. Both the parties should honour these agreements and implement them whole-heartily.