ASSIGNMENT

Name - Riya Rai

Roll No.- IUU22BALO76
Course – BA.LLB
Department – School of Law
Submitted To -
What Is Collective Bargaining?

The term “collective bargaining” refers to the

negotiation of employment terms between an
employer and a group of workers. Employees are
normally represented by a labor union during
collective bargaining.

The terms negotiated during collective

bargaining can include working conditions,
salaries and compensation working hours, and
benefits. The goal is to come up with a collective
bargaining agreement through a written
contract. According to the International Labour
Organization, collective bargaining is a
fundamental right for all employees.

How Collective Bargaining Works?

As noted above, the International Labour
Organization (ILO) states that collective
bargaining is a fundamental right available to all
workers. This means that all employees are
entitled to present their grievances to their
employers and to be able to negotiate them.
According to the ILO, collective bargaining helps
reduce inequalities in the workplace while
providing workers with labor protection.

• Collective bargaining normally takes place

between members of corporate
management and labour union leaders, who
are elected by workers to represent them
and their interests. Collective bargaining is
initiated when employee contracts are up for
renewal or when employers make changes to
the workplace or contracts. These changes
include, but aren’t limited to:
• Working conditions and other workplace
rules
• Base pay, wages, and overtime pay
• Work hours and shift length
• Holidays, sick leave, and vacation time
 • Benefits related to issues such as retirement
and healthcare.

These issues fall into three different categories,

which are referred to as mandatory subjects,
voluntary subjects, and illegal subjects.
Mandatory subjects include anything that the
law requires of the employer, such as salary,
overtime, and workplace safety. Voluntary
subjects include negotiable things that the law
doesn’t require, such as union issues and
decisions about employer board members. Illegal
subjects involve anything that violates laws, such
as workplace discrimination.

The goal of collective bargaining is called a

collective bargaining agreement. This agreement
is meant to establish rules of employment for a
set number of years. Union members pay for the
cost of this representation in the form of union
dues. The collective bargaining process may
involve antagonistic labour strikes or employee
lockouts if the two sides have trouble reaching an
agreement.
Collective Bargaining Steps
Collective bargaining can be an intense process
that can be stressful and difficult for all parties
involved. It often involves a lot of back-and-forth,
with offers and counteroffers. But the end goal is
to reach an agreement.

The process goes through a number of stages.

These steps can be summed up as follows:

1.Identifying the issues and preparing the

demands: This may include a list of
grievances, such as abusive management
practices or low salaries.
2.Negotiating: The union will hire a team of
professional negotiators to reach an
agreement with the employer. The employer
will also hire negotiators, and the two teams
will continue to meet until they find a
satisfactory agreement.
3.Coming to a tentative agreement: Once an
agreement is reached, both teams of
 negotiators will submit the agreement to
their constituents. At this time, any last-
minute issues will be raised as the details are
hammered out.
4.Accepting and ratifying the agreement: The
agreement will be submitted to union
members, who will have the opportunity to
vote for or against the new contract.
5.Administering the agreement: After an
agreement is finalized, workers and shop
stewards will continue monitoring to ensure
that the company is abiding by its obligations.

There are instances, though, where the parties

involved can’t come to an agreement. If the
negotiation period expires without a collective
bargaining agreement in place, union
representatives may suggest that workers go on
strike until their demands are met.

Employers, on the other hand, may decide to

lock out their employees until a suitable
agreement is reached. If they are locked out,
employees have the right to picket. In most
cases, neither party wants to reach these points,
which are considered drastic measures that are
used as a last resort.

Collective Bargaining Laws

Most industrialized countries have laws that
protect the right to engage in collective
bargaining and form unions, although there may
be restrictions on certain industries. In the
United States, the National Labor Relations Act
(NLRA) protects the right of most workers to
engage in collective bargaining activities.

This includes the right to form and join unions,

the right to discuss pay and other grievances, and
the right to strike. It also prohibits any employee
from being fired for protected activity. However,
certain categories of workers are specifically
excluded from the NLRA; these include federal,
state, and local government employees and
agricultural labours.

The National Labor Relations Board (NLRB) is the

government body that regulates labour practices
and collective bargaining under the NLRA. It is
also responsible for supervising union elections
and ensuring that workers are not pressured to
vote one way or the other.

Many states also have laws regarding collective

bargaining. In the 2022 midterm elections, Illinois
voters approved an amendment that would
enshrine collective bargaining rights in their
state’s constitution.
Moving in the opposite direction, Tennessee
voters approved a referendum that would add a
right-to-work law provision to their state
constitution, restricting the power of unions.

Types of Collective Bargaining

Not all types of collective bargaining are the
same. In fact, collective bargaining can be divided
into several categories. We’ve noted some of the
most common types below.

Composite Bargaining

Composite bargaining has nothing to do with

compensation. Instead, it focuses on other
issues, such as working conditions, job security,
and other corporate policies. These may include
hiring and firing practices as well as workplace
discipline. The goal of composite bargaining is to
come up with a suitable agreement leading to a
lasting and harmonious relationship between
employers and their employees.

Concessionary Bargaining
As its name implies, concessionary bargaining
focuses on union leaders making concessions in
exchange for job security. This is common during
an economic downturn or a recession. Union
leaders may agree to give up certain benefits to
guarantee the survival of the employee pool and,
ultimately, of the business.

Distributive Bargaining
This process is characterized as benefiting
one party financially at the expense of the
other. This can come through increased
bonuses, salaries, or any other financial
benefits. Distributive bargaining normally
favours workers over employers.

Unions must have a higher degree of

power for distributive bargaining to work.
Higher membership means more power.
If an employer refuses to accept a union’s
demands, it can call a strike.

Integrative Bargaining
Each party tries to benefit through integrative
bargaining, which is why it’s often referred to as a
form of win-win bargaining. Each side tries to
consider the other’s position and bring issues to
the table that aim to benefit both parties. As
such, employees and employers both stand to
lose and gain with integrative bargaining.

Productivity Bargaining

This type of bargaining revolves around compensation

and the productivity of employees. Labor union
leaders often use higher salaries and compensation as
a way to boost employee productivity, which leads to
higher profits and value for the employer. For this
kind of bargaining to work, both parties need to agree
to financial terms in order to increase productivity.

Unions represent a variety of workers, including (but

not limited to) grocery store employees, airline
employees, professional athletes, teachers,
autoworkers, postal workers, actors, farmworkers, and
steelworkers.

Advantages and Disadvantages of Collective

Bargaining
Advantages
As the name implies, workers have a larger voice
through collective bargaining. Being in a group with
the same goal(s) gives employees more power to
negotiate demands with their employers. Companies
may be able to shut out the voices of one or two
employees but can’t necessarily do the same with a
larger group of unified individuals.

Workplace conditions under collective bargaining can

see significant improvements and guarantee all
workers the same protections. This includes the
implementation of health and safety checks as well as
suitable salaries, overtime pay, and vacation time.

Employers and employees are fully aware of their

rights and responsibilities under a collective
bargaining agreement. Once employment terms are
negotiated, a contract is drawn up. Both parties agree
to the terms, which are clearly defined.

Disadvantages
As mentioned above, collective bargaining is often a
long, drawn-out process that can take weeks or even
months. Employers and labour union leaders may
have to go back and forth with employment terms.
Union leaders are required to update employees and
must put the terms to a vote. If employees vote to
reject a contract, the negotiating process begins
again.

Collective bargaining often comes at a high cost.

Employees and employers may have to take time off
from work to negotiate. This means less time on the
job and, therefore, a drop in productivity. Lengthy
negotiations can affect a company’s bottom line.

The process is often considered biased. Because

employees are able to band together under a single
union, employers may be forced to negotiate and
accept unfavourable terms in order to keep their
businesses running without much disruption.

Pros and Cons of Collective Bargaining

Pros
• Employees have a larger voice.
• Improves workplace conditions and protects
employees
 • Establishes rights and responsibilities of
employers and employees

Cons
• Lengthy process

• Comes at a high cost

• Employers may be forced to negotiate and

accept unfavourable terms.