Principles of collective bargaining


The following principles for efficient functioning of collective bargaining are identified by Human Resource experts:

For Union and Management:

1. Collective bargaining should be made an educational as well as a bargaining process. It should offer to trade union leaders an opportunity to present to the management the wants, the desires, the grievances and the attitudes of its employees and make it possible for the management to explain to union leaders and, through them, to its employees, the economic problems which confront it.

2. The management and the trade union must look upon collective bargaining as a means of fining the best possible solution, and not as a means of acquiring as much as one can while conceding the minimum. There must be an honest attempt at solving a problem rather than at a compromise.

3. Both the parties must bear in mined the fact that collective bargaining is, in a sense, a form of price fixation and that any successful collective bargaining depends, in the last analysis on whether the management and the trade union do a good job of ensuring that the price of labor is properly adjusted to other prices.

For the Management

1. The management must develop and consistently follow a realistic labor policy, which should be accepted and carried out by all its representatives.

2. In order to ensure that the trade union feels that its position in the organization or factory is secure, the management must grant recognition to it without any reservations and accept it as a constructive force in the organization and the industry.

3. The management should not assume that employee goodwill will always be there for it. It should periodically examine the rules and regulations by which its labor force is governed. In this, way it will able to determine the attitudes of its employees, promote their comfort, and gain their goodwill and co-operation.

4. The management should act upon the assumption that in order to make the trade union a responsible and conservative body, it is essential that it should be fairly treated. It should, moreover, establish such a satisfactory relationship with the trade union and its representatives that the latter will not lightly do anything that is capable of jeopardizing that relationship.

5. The management should deal with only one trade union in the organization. If two Trade Unions seek recognition, no negotiations should be undertaken with one until one of them establishes the fact of having a majority of the membership of the employees in its organization.

For the Trade Union:

1. In view of the rights granted to organized labor, it is essential that trade unions should eliminate racketeering and other undemocratic practices within their own organization.

2. Trade union leaders appreciate the economic implications of collective bargaining, for their demands are generally met from the income and resources of the organization in which their members are employed.

3. Trade union leaders should assist in the removal of such , restrictive rules and regulations as are likely to increases costs and prices, reduce the amount that can be paid out as wages, and tend to make for low employment and the long-run lower standard of living of all sections of society.

The principles mentioned above are guide lines in the interests of both management and Trade Union. If there are any deviations or malaise in the intentions of any one may lead to industrial conflict.