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Collective bargaining is specifically an industrial relations mechanism or tool, and is an aspect of negotiation, applicable to employment relationship. As a process, the two are in essence the same, and the principle applicable to negotiations is relevant to collective bargaining as well. In collective bargaining the union always has a collective interest since the negotiations are for the benefit of several employees. Where collective bargaining is not for one employer but for several, collective interests become a feature for both parties to the bargaining process. In collective bargaining certain essential conditions need to be satisfied, such as the existence of freedom of association and a labor law system. Further, since the beneficiaries of collective bargaining are in daily contact with each other, negotiations take place in the background of a continuing relationship which ultimately motivates the parties to resolve the specific issues.

Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions. Collective agreement usually set out wage scales, working hours, training, health and safety, overtime, grievances, mechanisms and rights to participate in workplace or company affairs. Ultimately the term “bargaining” implies that the process is one of haggling, which is more appropriate to one- time relationships such as a onetime purchaser or a claimant to damages. While collective bargaining may take the form of haggling, ideally it should involve adjusting the respective positions of the parties in a way that is satisfactory to all.

It is essential to understand why workers join unions to understand the importance of collective bargaining,

these are:

• Dissatisfaction with working environment, including working conditions, compensation, and supervision 
• A desire to have more influence in affective change in the work environment 
• Employee beliefs regarding the potential benefits of unions.

In bargaining situations, demands are pitched higher than what one would really settle for and offers are initially made lower than what one is really prepare to give. On the other hand it’s a charter in which some major and some minor demands consist. All these variations in bargaining can be divided in three types,\

theses are:

1. Distributive Bargaining: Distributive bargaining is the most common type of bargaining and involves zero-sum negotiation. In other words, one side wins and other side loses. Union employees may try to convince management that they will strike if they don’t get the wages or working conditions they desire. Management, in turn may be willing to try to ride the strike out, especially if they have cross-trained other workers or have external replacements to fill in for those on strike. In this bargaining, union and management have initial offers or demands, target points, resistance points and settlement ranges.

2. Integrative Bargaining: Integrative bargaining is similar to problem- solving sessions in which both sides are trying to reach mutually beneficial alternatives. Both the employer and union try to resolve the conflict to the benefit of both parties.

3. Concessionary Bargaining: It involves a union’s giving back to management some of what it has gained in previous bargaining. Why would labor be willing to give back what it worked so hard to obtain? Usually such a move is prompted by labor leader who recognize the need to assist employers in reducing operating cost in order to prevent layoffs and that motivates concessionary bargaining.

Prior to the actual bargaining sessions, enough care should be taken by both the parties to have a thorough preparation for the negotiations. This has become a pre – requisite to collective bargaining in view of several reasons. Consultation with the lower level members of their respective organizations can help both he parties to obtain valuable information and evolve specific bargaining table approaches. The consultation process also increases the morale of the two organizations. Again the technical assistance of legal and public relations experts can also be utilized gainfully in the collective bargaining process. Finally care should be taken to preplan with mutual consent the meeting places, ground rules relating to transcripts of the sessions , publicity releases, the payment system of union representatives and allied issues.

There are some basic objectives of collective bargaining on that basis whole process generally work,

these are:

• Settle the conflicts related to working conditions and wages. 
• To protect the interest of the workers through collective action. 
• To resolve the difference between the workers and management through voluntary negotiations and to arrive at a consensus. 
• To avoid third party intervention in matters relating to employment. 
• Practically speaking any issues that has any relevance to management and workers becomes the subject matter of bargaining.

Features of Collective Bargaining

“Collective Bargaining is a mutual obligation on the employer and employee to bargain in good faith towards the settlement”. Keeping this statement in mind let’s explain the features of collective bargaining in detail:

Collective: It’s collective in two ways:

1) All the workers collectively bargain for their collective interest, because they do not have individual capacity.

2) Workers and the management jointly arrive at an amicable solution through negotiations. The Union is expected to bring out the common consensus on collective issues rather than individual issues. 

Bargaining Power: In collective bargaining the bargaining strength of both the parties across the table is equal. Ideally it is industrial democracy at work. It will only be democratic only if both the parties are equipped with knowledge and skill. The strength of the union also depends on the demand and supply of working force. Similarly how much capital is invested upon one worker also determines the ratio of bargaining power. For example: A pilots union would have more bargaining power than the union of road transport. Because the capita land stake invested on the pilot is much higher than the drivers. 

Flexible: In collective bargaining both the parties should have to flexible mental set up to arrive amicably at a common consensus. 

Voluntary: Both the parties come in front of each other voluntary in order to arrive at a voluntary agreement, which is mutually acceptable to both the parties. 

Continuous: Collective bargaining not only commences with negotiation and ends in argument, but it’s a continuous process that includes implementation of the agreement and also further negotiations. 

Dynamic:

It’s a dynamic process because it involves the following: 

1) A process of agreement which itself contains various concepts which may change and alter time to time.

2) The implementation process is also on going.

3) The mental makeup of the parties keeps on changing.

4) Various strategies used by both the parties keeps on changing based on the demand of the situation.

5) We all are a part of the global economy and the product, consumer’s taste; market place etc keeps on changing. This has tremendous effect on companies. The same has impact on the bargaining as well. 

Power relationship: Both the parties want to extract the maximum from each other. But to reach a consensus both the parties have to retreat from their positions in order to reach a common consensus. In such an attempt both the parties try to reach on a common ground without any serious dilution of their power. Example: If the job of the worker is not skilled and he is being easily replaceable, he would have lesser bargaining power. Because, there is a huge mass of unemployed youth waiting to be replaced. 

Representation: The Collective Bargaining process must be represented by those who have the capacity to take decisions. 

Bipartite Process: The employees and the employers negotiate the issue directly across the table. And there is no third party intervention like pressure groups, legal consultants. 

Good Faith Bargaining Process: Good faith bargaining is characterized by the following events:

1) Meeting for the purposes of negotiations, the contract is used scheduled and conducted with the union of responsible time and place.

2) Realistic proposals are submitted.

3) Reasonable counter proposal should be offered.

4) Each party has to sign once it has been completed.

To understand the collective bargaining it is necessary to know about the various advantages of collective bargaining,

these are: 

• Collective bargaining has the advantage of settlement through dialogue and consensus rather than through conflict and confrontation. Agreement resulting from collective bargaining usually represents the choice or compromise of the parties themselves. 
• Collective bargaining agreements often institutionalize settlement through dialogue. For instance, a collective agreement may provide for methods by which disputes between the parties will be settled. In that event parties know beforehand that if they are in disagreement there is an agreed method by which such disagreement may be resolved. 
• Collective bargaining is a form of participation because it involves a sharing of rule making power between rule making power between employers and unions in the areas which in earlier times were regarded as management prerogative e.g. transfer, promotion, redundancy.
•  Collective bargaining agreements sometimes renounce or limit the settlement of disputes through trade union action. 
• Collective bargaining is an essential feature in the concept of social partnership towards which labor relations should strive. Social partnership in this context may be described as a partnership between organized employer institutions and organized labor institutions designed to maintain non- confrontational process in the settlement of disputes which may arise between employers and employees. 
• Collective bargaining has a valuable by- products relevant to the relationship between the two parties. 
• In societies where there is a multiplicity of unions and shifting union loyalties, collective bargaining a consequent agreements tend to stabilize union membership. 
• Collective bargaining is the most important and effective in improving industrial relations.

Collective bargaining is a process whereby organized labor and management negotiate the terms and the conditions of employment. Let us explore some definitions from different sources:

“Collective bargaining is a method by which trade unions protect and improve the condition of their member’s working lives.”

According to Flanders “Collective Bargaining as a means of joint regulation”

According to ILO, (convention no: 87) “Collective Bargaining is a fundamental right. The right to Collective Bargaining forms an integral part of the ILO declaration on fundamental Principles (1998).”

OECD (Organization for Economic Co-operation and Development), WTO (World Trade Organization) and the United Nations advocates Collective Bargaining in similar tones. Collective Bargaining is a part of “Core Labor Standards, Social clause and Global Compact respectively” This means future that Collective Bargaining should be considered as a Fundamental Right.

Today collective bargaining has assumed a complex nature, conducted in the most formal environment, associating the services of a large number of experts, legal practitioners, consultants and specialized personnel. Today it is regarded as a social process, because it occurs in a social setting.

In majority of the cases collective bargaining process deals with issues like:

• Rate of wages, pay. 
• Hours of employment, working conditions 
• Employment policies 
• Productivity settlement

One of the very important facets which need to be considered before studying the process of collective bargaining is “Understanding and developing of a good Bargaining relationship”.

This step consists of these activities mainly;

1. Recognition of the Bargaining Agent: In those organizations where there is a single trade union, that union is generally granted recognition to represent the workers. But where there is more than one union, any of these criteria may be used for identifying the representative union, namely:

• Selection of the union by a secret ballot. 
• Selection through verification of membership by some government agency if required. 
• Bargaining with a joint committee of all major unions. 
• Bargaining with a negotiation committee in which different unions would be represented in proportion to their verified membership 
• Bargaining with a negotiation committee which consists of elected representative of every department of the organization selected by secret ballot, irrespective of their union affiliations. 

2. Levels of bargaining.

Collective bargaining is possible at all levels, such as:

• At the level of the enterprise, 
• It may be at the level of the industry in a particular region. 
• At the level of the entire industry in the country, that is, at the national level.

From the point of view of an individual establishment, enterprise-level bargaining is generally useful in the sense that the settlement is tailored to the conditions of that organization.

3. Scope and Coverage of Collective Bargaining: Though in many organizations bargaining is struck only by specific issues like wage increase, bonus, or seniority, promotion, etc., yet it is considered advantageous, both for the management and the trade unions, to cover as many issues of interests to both parties as possible. Now a days the orientation of collective bargaining is changing from conflict to cooperation and there by building an atmosphere of trust, progress and social welfare. For example: union must strive for larger scope and coverage like wages and service conditions for contract labor, temporary, part time employees, trainees etc.

4. Process Variation of Collective Bargaining: The negotiation process has been visualized in different ways. Collective bargaining procedure can be compared with the similar to an exercise in politics where the relative strength of the parties stems from decisiveness and that it resembles with a debate. They are also of the view that both the parties on the bargaining table become entirely flexible and willing to be persuaded only when all the facts have been presented. However with the increasing maturity of collective bargaining, there has been enlargement of the rational process. In addition several other factors also influence the negotiation process.

Among these factors some are mentioned below:

• Objectives of the parties. 
• Kind of experience, knowledge the parties have. 
• The Industrial legislation of the concerned country. 
• The personalities and training of the negotiators. 
• The history of the labor relations in the enterprise. 
• The size of the bargaining unit and 
• The economic environment.

Although several negotiators may attempt to bluff or outsmart the opposite group, others seldom think of using these tactics. While some bargainers may attempt to dictate the contract on a unilateral ground, others visualize that this process is eventually self defeating. While some negotiators may come together with excessive unrealistic proposals, others may have quite realistic ones. In some negotiations, there may be in each side implicit faith in the counterpart while in others there may prevail a climate of mutual distrust, suspicion and even hatred, in view of the past adverse labor relations. Moreover if the objective is to obtain solution to their mutual problems, the parties are likely to conduct the negotiation on the ground of rationality and fairness. However if the objective is to “put management in its place” or to “weaken or to even destroy the union”, the process of negotiation may take quite different forms. Thus several factors operate causing variations in the conduct of collective bargaining negotiations. “Militant unions vs. irrational management”, “Rational unions vs. oppressive management”, “Progressive union and progressive management”-There can be many permutations and combinations and results of the bargaining process would vary depending on these