Collective Bargaining in simple terms is the ‘process of negotiation’ of wages, working hours, working conditions and other conditions of employment by a Labor or Trade Unions. According to the Legal Dictionary ( n.d.), “Collective bargaining is the negotiation process that takes place between an employer and a group of employees when certain issues arise.” We can take the example of Birgunj Sugar Mill which closed down by not paying the wages of the workers. Now after three years of closed down, the government has finally decided to reopen by signing the agreement, which states of paying all the unpaid salaries to workers. These trade unions can be part of any political party.
Collective bargaining has served as a cornerstone institution for democracy, a mechanism for increasing workers’ incomes, improving working conditions and reducing inequality, a means for ensuring fair employment relations and a source of workplace innovation (Susan Hayter, Vol 53, Issue 2, 2011). There are different forms of collective bargaining made by different scholars:
Conjunctive or Distributive Bargaining
Distributive bargaining is used when the firm or parties are trying to distribute something. The employee and employer both are trying to increase their gains. In this form of collective bargaining, employee wishes employee wishes to have an increased wage or bonus for his work done, whereas the employer wishes to increase the workload and reduce the wages (Business Jargons, n.d.).
Co-operative or Integrative Bargaining
In this form of Co-operative bargaining, both the parties sit together and discuss the matters in order to solve their problems and reach a common point. Under this, the matter is not in the control of the employers or employees like the recession or any other occurrence of natural calamities. For example, in the 2001 recession, the GDP growth did not return to 3 per cent until quarter three, 2003 (The Balance, 2018).
A collective agreement is a written contract between the employer and a union that outlines many of the terms and conditions of employment for employees in a bargaining unit (Human Resources, 2011). In this, the trade union give notice of bargaining within the 90 days before the current agreement. The conditions in a collective contract are already discussed in collective bargaining, the collective agreement includes wages, job postings, responsibilities of an employer, employee and the trade union including their benefits.
The different collective agreements include the following:
Substantive agreements
Under the substantive agreements, the basic matters of employment such as pay, allowances, holidays, overtime, working hours, etc., are covered which helps the employee and employer both if a certain issue occurs in the future. For example, One of my colleagues took a leave of 15 days while in her agreement with the office she was access to taking 18days of leave. But the head of the department cut off her salary for taking extra holidays. At such case, she with the help of the appointment letter talked to the head and saved her cut off salary.
Procedural agreements
This agreement sets the procedure and rules to be followed in case of any disputes occur between the employer and employee. The main purpose of this agreement is to regulate the behaviour of both the parties according to the agreement. This type of agreement depends upon the size and operations of the firm. Small firms may have limited agreement while big firms have lots of procedures.
Single-union deals
This agreement or deal states that there should be a single trade union representing the employees or workers in the firm. This helps to maintain harmonization and flexible work practices between both the parties. In this type of deals, the former agrees to recognize the one union to represent the employee rather than having three or four representatives.
New style agreements
The new style agreement emerged in 1990s based on the mutually accepted rights of the parties. According to this agreement, the negotiation and disputes should be resolved based on the ‘rights’of both the parties.
Conciliation
Conciliation is a type of bank reconciliation system in which a third party from the outside act as a counsellor in resolving the disputes and agree on one common term among the employer and employees.
Arbitration
Arbitration is done if both the parties could not come to common terms and the disputes among them do not resolve. In this situation, a third person from the outside is called to observe on what condition the parties are not agreeing. Usually, ACAS officials in the UK take the arbitrator role.
References
Business Jargons. (n.d.). Business jargons. Retrieved from Types of Collective Bargaining: businessjargons.com/contact-us 1
Collective Bargaining in simple terms is the ‘process of negotiation’ of wages, working hours, working conditions and other conditions of employment by a Labor or Trade Unions. According to the Legal Dictionary ( n.d.), “Collective bargaining is the negotiation process that takes place between an employer and a group of employees when certain issues arise.” We can take the example of Birgunj Sugar Mill which closed down by not paying the wages of the workers. Now after three years of closed down, the government has finally decided to reopen by signing the agreement, which states of paying all the unpaid salaries to workers. These trade unions can be part of any political party.
Collective bargaining has served as a cornerstone institution for democracy, a mechanism for increasing workers’ incomes, improving working conditions and reducing inequality, a means for ensuring fair employment relations and a source of workplace innovation (Susan Hayter, Vol 53, Issue 2, 2011). There are different forms of collective bargaining made by different scholars:
Conjunctive or Distributive Bargaining
Distributive bargaining is used when the firm or parties are trying to distribute something. The employee and employer both are trying to increase their gains. In this form of collective bargaining, employee wishes employee wishes to have an increased wage or bonus for his work done, whereas the employer wishes to increase the workload and reduce the wages (Business Jargons, n.d.).
Co-operative or Integrative Bargaining
In this form of Co-operative bargaining, both the parties sit together and discuss the matters in order to solve their problems and reach a common point. Under this, the matter is not in the control of the employers or employees like the recession or any other occurrence of natural calamities. For example, in the 2001 recession, the GDP growth did not return to 3 per cent until quarter three, 2003 (The Balance, 2018).
A collective agreement is a written contract between the employer and a union that outlines many of the terms and conditions of employment for employees in a bargaining unit (Human Resources, 2011). In this, the trade union give notice of bargaining within the 90 days before the current agreement. The conditions in a collective contract are already discussed in collective bargaining, the collective agreement includes wages, job postings, responsibilities of an employer, employee and the trade union including their benefits.
The different collective agreements include the following:
Substantive agreements
Under the substantive agreements, the basic matters of employment such as pay, allowances, holidays, overtime, working hours, etc., are covered which helps the employee and employer both if a certain issue occurs in the future. For example, One of my colleagues took a leave of 15 days while in her agreement with the office she was access to taking 18days of leave. But the head of the department cut off her salary for taking extra holidays. At such case, she with the help of the appointment letter talked to the head and saved her cut off salary.
Procedural agreements
This agreement sets the procedure and rules to be followed in case of any disputes occur between the employer and employee. The main purpose of this agreement is to regulate the behaviour of both the parties according to the agreement. This type of agreement depends upon the size and operations of the firm. Small firms may have limited agreement while big firms have lots of procedures.
Single-union deals
This agreement or deal states that there should be a single trade union representing the employees or workers in the firm. This helps to maintain harmonization and flexible work practices between both the parties. In this type of deals, the former agrees to recognize the one union to represent the employee rather than having three or four representatives.
New style agreements
The new style agreement emerged in 1990s based on the mutually accepted rights of the parties. According to this agreement, the negotiation and disputes should be resolved based on the ‘rights’of both the parties.
Conciliation
Conciliation is a type of bank reconciliation system in which a third party from the outside act as a counsellor in resolving the disputes and agree on one common term among the employer and employees.
Arbitration
Arbitration is done if both the parties could not come to common terms and the disputes among them do not resolve. In this situation, a third person from the outside is called to observe on what condition the parties are not agreeing. Usually, ACAS officials in the UK take the arbitrator role.
References
Business Jargons. (n.d.). Business jargons. Retrieved from Types of Collective Bargaining: businessjargons.com/contact-us 1
Human Resources. (2011, August). Uoguelph.ca. Retrieved from Labor realtions- Frequently asked Questions: uoguelph.ca/hr/system/files/Labour...
Legal Dictionary. (n.d.). Collective Bargaining. Retrieved from Collective Bargaining: legaldictionary.net/collective-bar...
Susan Hayter, T. F. (Vol 53, Issue 2, 2011). Journal of Industrial Relations. SAGE Journals.
The Balance. (2018, March 25). GDP and Growth. Retrieved from What is a Recession? Examples, Impacts, Benefits: thebalance.com/what-is-a-recession...