PREREQUISITES OF

COLLECTIVE BARGAINING

SUBMITTED BY:
RAHUL KRISHNAN
MBA- III
17B6CMD067
 Collective Bargaining

In the words of R.F. Hoxie “Collective bargaining is a

mode of fixing the terms of employment by means of
bargaining between an organized body of employees
and an employer or an association of employers usually
acting through organized agents. The essence of
collective bargaining is a bargain between interested
parties and not a decree from outside parties.”
 Characteristics of Collective Bargaining

It is bargain between management and work force.

Both parties have flexible attitude so that there should
be mutual give and take.
It is a two party process method
It is a continuous process and goes on for whole of the
year.
Collective bargaining to be successful must cover all
areas including formulation of policies affecting
workers.
 Prerequisites for Collective Bargaining

Forming Strong Unions

The parties must attain a sufficient degree of organization.

If the workers’ organization 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.
 Prerequisites for Collective Bargaining

Freedom of Association

Freedom of Association is essential for Collective Bargaining.

Where there is no freedom of association , there can be no
collective bargaining. Freedom of Association implies that
the workers as well as the employers will have the right to
form an organization of their own to protect their interest.
 Prerequisites for Collective Bargaining

Mutual Recognition

There should be a mutual recognition between both the

groups. Collective bargaining cannot begin if the
employers do not recognize the worker’s organization.
The conflict of interests makes the two groups hostile to
each other. They must recognize each other and realize
that adjustment and understanding is essential for the
achievement of organizational goals
 Prerequisites for Collective Bargaining

Favorable Political Climate

There must exist a favorable political climate, essential

for successful collective bargaining. If the government
encourages collective bargaining as the best method of
regulating conditions of employment, it will be successful.
Where the governments restrict trade unions activities,
there can be no collective bargaining.
 Prerequisites for Collective Bargaining

Agreement must be observed by those to whom

they apply.

Agreement must be observed by those to whom they

apply. The workers’ organization must be strong
enough to exercise its authority over its members. If
the trade union has no power over its members,
collective bargaining will not be effectively
implemented.
 Prerequisites for Collective Bargaining
Give and Take policy

A give and take policy must prevail in the organization.

The difference between two parties can be adjusted
only by compromise so that an agreement can be
reached. Neither side should be too rigid on its
demand. Their attitudes should be flexible . Unions
should not rigidly insist upon unreasonable demands
and should be ready to reduce its demands to come
to an agreement.
 Prerequisites for Collective Bargaining

Avoiding Unfair practices

Sometimes unfair labor practices are resorted to by

both the employers and the trade unions. These will
restrict the development of collective bargaining.
Unfair labor practices should be avoided by both
sides, as this will create an atmosphere of goodwill.