Human resources management

BBA II nd year 

Major I

Trapti Bala Jakhetiya 

Unit 5 

Topic- collective bargaining 

PRINCIPLES OF COLLECTIVE BARGAINING

(a) There should be an absence of any external pressure either on the employer or on the worker to come to the kind of agreement desired by the authority exerting the pressure

(b) There should be a delegation of authority to local management where there are several units of a company. Delegation of authority is very essential for the success of collective bargaining.

) Freedom of associations and independence of union.

(c (d) Stability of organisations of workers and employers.

(e) Favourable political climate, the government should not only be sympathetic but also encourage collective bargaining and collective agreements.

(f) Mutual trust, respect and willingness on the part of the parties concerned to settle all matters by collective bargaining or negotiations.

(g) Bargaining power of each party depends on the:

(1) Strength of its organisation.

(11) Knowledge and skill of negotiation of its representatives.

(iii) Trade recession/boom/shortages.

(iv) Surplus of labour particularly in regard to semi-skilled and unskilled workers.

(h) There should be existence of a progressive and strong management conscious of its responsibility and its obligation to the industry, the employees, the consumers and the company.

NEEDS FOR COLLECTIVE BARGAINING

Collective bargaining is needed to stop the unilateral decision-making process in any organization. To enforce a bilateral system collective bargaining is a useful device.

Collective bargaining serves the following purposes:

Collective bargaining is a democratic process by which the employees

feel that he/she is a part of decision-making process. This develops trust and co-operation among them.

It provides a platform for both employers and employees for negotia-tions and communication of policies.

This generates better understanding between employees and employers.

It works as a catalyst as it makes the decision-making and implemen-tation of policy in a speedy phase. Employers can easily use this for fast implementation of plan/programmes.

It is a tool by which co-ordination can be enhanced in an organization.

FACTORS RESPONSIBLE FOR THE SUCCESSFUL COLLEC BARGAINING

Lester and Sister outline factors which determine the sucess of co

argaining which are grouped into :

(a) Psychological factors and structure of power relations.

(b) Nature and character of the product market.

(c) Economic environment factors.

(d) Nature of the labour market.

(e) State of business conditions.

(f) Capital requirement and cost contitions.

(g) Type of industrial relationship, employer attitude, worker's = and Government policy.