What is Collective Bargaining

What is Collective Bargaining

What is Collective Bargaining?

Collective bargaining is the process of establishing the terms and conditions of employment between an employer and employee representatives, such as a trade union.

Its goal is to determine working conditions and control employer-worker relationships.

Simply described, collective bargaining is a bipartite process in which employers and a group of employees work together to make decisions on a variety of issues.

Furthermore, in order for collective bargaining to be effective, the conversation must be conducted in good faith.

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What exactly is a Collective Bargaining Agreement (CBA)?

Collective bargaining may result in a Collective Bargaining Agreement (CBA), which outlines policies that are acceptable to both management and employees. It lays out the terms and circumstances of employment as well as the relationship between the two parties. Furthermore, the CBA is legally binding.

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Collective Bargaining’s Importance

The following are some examples of the significance of collective bargaining:

  • It raises income and working conditions while also encouraging equality.
  • It provides a level playing field for both management and labour at the negotiating table.
  • It plays a role in assuring the adaptability of businesses and economies throughout the economic downturn.
  • It promotes mutual respect and trust between employers, employees, and their organisations.
  • It boosts labour relations’ stability and productivity.
  • It benefits both sides because workers are paid fairly for the work they do while employers are able to work profitably.
  • It helps the company react to short-term increases or decreases in demand.
  • It enables immediate communication.
  • It benefits both sides because the workers are paid fairly for the work they do, but the employers’ ability to make a profit is not harmed.
  • It allows the company to respond quickly to changes in demand.
  • It allows for the immediate implementation of bargaining decisions.
  • It increases employee commitment and facilitates the sharing of information.
  • Income disparity is also eliminated.
  • It shows how strong the opposing parties are.

Collective bargaining takes place between the employer and the employees to negotiate new contracts and renegotiate old ones.

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Collective Bargaining’s Objectives

Collective bargaining is a powerful tool for employers and labour unions to agree on fair wages and working conditions. It aids in the improvement of labour relations. The following are the goals of collective bargaining:

  • To resolve the parties’ disagreements and conflicts.
  • To improve and sustain friendly and pleasant ties between management and employees.
  • To safeguard the interests of both parties involved in the conversation.
  • To arrive at a mutually beneficial conclusion or settlement.
  • In order to promote industrial democracy.

Process of Collective Bargaining

Wage employees are given a voice through collective bargaining, which allows them to collectively bargain for their rights with the corporation. Following are the actions to take:

If one of the two parties wants to negotiate an agreement, it must provide a notice and a statement of proposal to the other. Following that, within 10 days of receiving the notice, the other party must respond.
If a disagreement arises as a result of the notification and response, either party may request a conference, which must begin within 10 days of the request date.

In the event that the disagreement is not resolved, the National Conciliation and Mediation Board may intervene, either at the request of one or both parties, or on its own initiative, and summon the parties to a conciliation meeting.
No party is authorised to do anything that could disrupt the settlement during the Board’s conciliation proceedings.
The Board will make every effort to reach a peaceful conclusion to any issues.

Wages, hours of work, working conditions, paid leaves, holidays, overtime compensation, sick leave, shift length, occupational health and safety, and worker punishment and termination are all concerns that are generally settled through collective bargaining. Its goal is to reach an agreement that governs the terms of employment.

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