Objectives of Collective Bargaining

What is Collective Bargaining?

The negotiation regarding the employment terms between an employer and its workers is termed ‘Collective Bargaining’. The employer and the representatives of the employees agree to certain terms and conditions regarding the various terms of employment. The representatives of the employees belong to certain trade unions. The terms of employment under negotiation in collective bargaining include employee working conditions, salaries, wages, incentives, compensations, benefits, working hours, etc. The main objective is to agree with both parties via a written contract in collective bargaining. According to the International Labour Organization (ILO), collective bargaining is essential for all employees....

How does Collective Bargaining Work?

As per the International Labour Organization (ILO), collective bargaining is an important right given to all employees to put up their grievances in front of their employer and come up with plausible solutions that both parties agree to. Collective bargaining brings equality and harmony in the workplace and protects the employees. In collective bargaining, the management of the organization and trade union leaders negotiate certain agreements related to the terms of employment such as salaries and wages, benefits and incentives, working conditions, and hours worked. Both parties bring their offers to the negotiating table, and through discussions and concessions, they hope to arrive at a solution that will satisfy both of them. Usually, employees choose leaders, generally from trade unions, to negotiate on their behalf. During discussions, these representatives serve as a united voice for the workforce’s interests and concerns. Employers, on the other hand, designate delegates, such as human resources or management staff, to participate in talks and decide on behalf of their organization....

Example of Collective Bargaining

In the year 2021, the workers of John Deere tried to negotiate a favorable agreement with the manufacturer of farming machinery. However, during the epidemic of Covid-19, when John Deere had higher profits, the workers believed that they had the right to higher pay and retirement benefits compared to the initial offer by the organization....

Steps in Collective Bargaining

Collective bargaining is a deep-level discussion between the employer and employee where offers and counteroffers continuously flow from both sides. However, the ultimate goal of this negotiation is to reach a mutual agreement. There are certain steps that the collective bargaining follows:...

Laws in Collective Bargaining

Laws governing collective bargaining govern the negotiations that take place between labor unions and employers. These rules usually spell out the rights and responsibilities of each party throughout the negotiation process, including the need to bargain in good faith. They might also cover topics including unfair labor practices, union formation and recognition, and the processes involved in negotiating and carrying out collective bargaining agreements. Collective bargaining rules are intended to ensure fair working conditions and compensation for employees while taking into account the legitimate interests of employers. They are implemented in many nations to promote a peaceful and equitable resolution of labor disputes. Jurisdiction-specific requirements differ, however adherence to these legal requirements is necessary to preserve a steady and fruitful labor-management partnership....

Objectives of Collective Bargaining

1. Remuneration Negotiation: One of the prime objectives of collective bargaining is to negotiate and determine fair wages and benefits for employees....

Scope of Collective Bargaining

The following lists out the scope of collective bargaining applicable in any negotiation between the employer and employee....

Types of Collective Bargaining

Collective bargaining can take different forms depending on the parties involved and the issues negotiated. The below list of the types of collective bargaining:...

Advantages of Collective Bargaining

1. Improved Working Conditions: Collective bargaining often leads to agreements that enhance working conditions, and also include better remuneration, overtime pay, benefits, working hours, and vacation time....

Disadvantages of Collective Bargaining

1. Rigidity: Collective bargaining agreements may introduce inflexibility into the employment relationship, making it challenging for employers to adapt to changing business conditions....

Criticisms of Collective Bargaining

Critics of collective bargaining often raise several concerns. The following are some of them:...

Conclusion

Collective bargaining is the negotiation between an employer and union representatives of employees over wages and benefits. Collective bargaining is a powerful tool for workplace fairness and stability and should be a right for all employees. Collectively, employers and employees state their demands to each other and hear the other side out. Each party then steps back and makes appropriate sacrifices to arrive at an agreement. The written outcome at the end of collective bargaining is called a collective bargaining agreement (CBA), which usually includes employees’ wages, benefits, hours and other terms of employment....

Collective Bargaining- FAQs

What is Collective Bargaining Unit?...