What is Collective Bargaining?
Collective bargaining is the process of negotiation between unions and employers regarding the terms
and conditions of employment of employees, and about the rights and responsibilities of trade unions. It
is a process of rule making, leading to joint regulation.
The central role of collective bargaining between workers and employers and their organisations in
industrial relations in the Member States is recognised by the EU in Article 28 of the Charter of
Fundamental Rights of the European Union of December 2000 (‘Right of Collective Bargaining and
Action’) and in Article 12 of the Community Charter of the Fundamental Social Rights of Workers of
1989.
‘The Right to Bargain Collectively’ was also declared a fundamental right in the 1961 European Social
Charter of the Council of Europe (Article 6). The interpretation by the European Court of Human Rights
in Strasbourg of the right to freedom of association in Article 11 of the European Convention for the
Protection of Human Rights and Fundamental Freedoms has extended some protection also to collective
bargaining
What is the nature and scope of CB
Scope of collective bargaining is based on the following guide lines(in India)
• A preamble stating why the parties had met together, usually making reference to the union’s
charter of demands which formed the starting point for discussions.
• A statement of principles such as rights and responsibilities of both parties.
• Recognition of union by management and acceptance of the union’s right to organize the
workers and to carry out all the normal activities of a trade union.
• A section dealing with remuneration, including basic pay scales, grades and job classification,
dearness allowance and other allowances, incentives schemes and annual bonus.
• A section on working conditions such as hours of work, overtime, recruitment, transfer,
promotion, etc.
• A section on service benefits and amenities such as leave, public holidays, medical benefits, sick
pay, retirement age, pension or gratuity scheme, provident fund etc.
• Clauses relating to special joint machinery may be included. These include joint production
committees, joint labour relations, job evaluation, discipline, safety and welfare committees as well as
workers’ committees.
• Grievance procedure of two kinds may be incorporated in an agreement.
First the procedure for dealing with individual grievances as they arise day to day within the
establishment. This may follow to a lesser or greater degree the model drawn up by the Indian labour
conference.
Second is the method of settling any dispute over interpretation of any part of agreement. This
procedure includes voluntary arbitration.
These are the following important facts pertaining to collective bargaining
nature:-
• It is carried out on a collective as distinct from an individual basis. The collective
bargaining is bargaining by groups of people.
• In the bargaining process, the main actors are employers and their association.
• The object of collective bargaining is rule – making i.e. reaching an agreement
specifying the rules pertaining to employment relationship.
• The main focus of these rules is on the terms and conditions of employment.
• Collective bargaining is a “Collective bipartite confrontation” between workers and
management with a view to arrive at an agreement , for the objective not, ‘welfare’
but ‘compromise’.
• It is both a device and a procedure used by wage – earners to safeguard interests; it is
an institution or instrument of an industrial organisation, discussion and negotiations
between the two parties.
• It is however, a technique by which an attempt is made to reconcile the needs,
objectives of workers and employers and is, therefore, an integral part of industrial
society.
• The essence of collective bargaining lies in the readiness of the two parties of dispute
to reach an agreement or mutually satisfying settlement.
• It is concerned about the emotions of the people involved in it as well as with the logic
of interests.
Essential factors for the success of CB
