Prerequisites of Collective Bargaining

11th July 2021 0 By indiafreenotes

Collective bargaining is a joint decision-making process by employers and employees. Therefore, its effectiveness depends on their attitudes and the relevant environment in which collective bargaining takes place. If these factors are conducive, collecting bargaining may be a good mechanism for preventing the emergence of industrial disputes.

The parties must attain a sufficient degree of organisation. If the workers’ organisation is weak, employers can say that it does not represent the workers and will refuse to negotiate with it. Unless the workers are able to form strong and stable unions, collective bargaining will not be successful.

Stability of Trade Unions:

In any democratic country, employees have fundamental rights to organize trade unions or other associations for protecting their interest. The right to organize is a positive feature for collective bargaining as employees may negotiate with management on equal footing. However, mere right to organize does not ensure stability of employees’ associations in the form of trade unions.

The indiscriminate use of the right for organizing leads to multiplicity of trade unions with conflicting approaches, and sometimes even objectives, making the total industrial relations system including collective bargaining unworkable. In India, multiplicity of unions and inter-union rivalry have wrecked the system of collective bargaining. Where it has succeeded, it is due to single union which has been recognized by the management.

  • Trade unions must encourage internal union democracy and have period consultations with the rank and file members.
  • Both parties should try to solve the problems through negotiations sincerely and honestly.
  • Both parties (employer and employees) should realise the need of collective bargaining.
  • A single plant bargaining is considered better than a multiple plant bargaining. In single plant bargaining, there is a bargain between a single employer and single union.
  • The management should pay reasonable wages and any unfair labour practice should be avoided.
  • Both parties should present facts and figures on the discussion table. Their approach should be constructive in order to resolve the problems.
  • Both parties should ensure that agreement reached is respected and implemented and industrial peace is established.
  • If any agreement is reached, it must be a written document.
  • There should be a provision for arbitration if there is any dispute regarding interpretation of agreement and its implementation.