Importance of collective bargaining


Collective bargaining plays a vital role in settling and preventing industrial disputes. Specifically its importance is evident from the following:

1. Increase the economic strength of unions and management.

2. Establish uniform conditions of employment with a view to avoiding industrial disputes and maintaining stable peace in the industry.

3. Secure a prompt and fair settlement of grievances.

4. Avoids interruptions in work which follow strikes, go-slow tactics and similar coercive activities;

5. Lay down fair rates of wages and norms of working conditions;

6. Achieve an efficient operation of the plant;

7. Promote the stability and prosperity of the industry;

8. Provides a method or the regulation of the conditions of employment of those who are directly concerned about them;

9. It provides a solution to the problem of sickness in industry, and ensure old age pension benefits and other fringe benefits;

10. It creates new and varied procedures for the solution of the problems as and when they arise-à problems which vex industrial relations; and its form can be adjusted to meet new situations. Since basic standards are laid down, the employee is assured that he will be required to work under the stipulated audit;

11. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced.

12. As a vehicle of industrial peace, collective bargaining has no equal. It is the most important and significant aspect of labor-management relations, and extends the democratic principle from the political to the industrial field.

13. It builds up a system of industrial jurisprudence by introducing civil rights in industry. In other words, it ensures that management is conducted by rules rather than by arbitrary decisions;

Need for Collective Bargaining

(a) A high degree at collective bargaining as measured in terms of the proportion of workers covered by collective agreements;

(b) Qualitative conduct of the parties to collective bargaining both before a situation warranting negotiations develops and the methods followed at the time of arriving at agreements;

(c) The right priorities assigned to different methods in the agreement and their changing pattern over time; and

(d) A structure of bargaining with emphasis on central bargaining which is purported to give some order and stability to labor management relations.