Collective Bargaining: Meaning Objectives and Importance!
Meaning:
Collective bargaining is a negotiation process for the definition of terms and conditions of employment mutually agreed on between management and employees represented by their representatives that protect the interest of the employees and the management. "Collective bargaining is basically a system in which staff work as a team to form conditions and relationships in their workplaces," said Dale Yoder.
Michael J. Jucious described collective bargaining as "an effort by employers on the one side and employers ' representatives, on the other, to reach agreements on conditions for the contribution and payment of the employees."
Collective bargaining could, therefore, be characterized as a collective agreement reached by employees ' representatives and employers. They say' good faith talks' through collective bargaining. That does not mean, that either party is obligated to agree with the proposal. It means, that the propositions are paired with counter-proposals and that both parties make every reasonable effort to reach a consensus.' Nor does it require any specific concessions from either party.
Why is collective bargaining applied to? It is referred to as' collective' because both the employer and the employee work collectively and not individually to reach a contract. The settlement process involves offers and counter-offers, offers and counter-offers. It is known as' negotiation.'
Why is collective bargaining applied to? It is referred to as' collective' because both the employer and the employee work collectively and not individually to reach a contract. The settlement process involves offers and counter-offers, offers and counter-offers. It is known as' negotiation.'
Objectives:
This major objective of collective bargaining can be divided into the following sub-objectives:
1. To foster and maintain cordial and harmonious relations between the employer/management and the employees.
2. To protect the interests of both the employer and the employees.
3. To keep the outside, i.e., the government interventions at bay.
4. To promote industrial democracy.
Importance:
The need for and importance of collective bargaining is felt due to the advantages it offers to an organization.
The chief ones are as follows:
1. Collective bargaining develops a better understanding between the employer and the employees:
It provides a platform for the management and the employees to be at par on the negotiation table. As such, while the management gains a better and deep insight into the problems and the aspirations of die employees, on the one hand, die employees do also become better informed about the organizational problems and limitations, on the other. This, in turn, develops a better understanding between the two parties.
2. It promotes industrial democracy:
Both the employer and the employees who best know their problems, participate in the negotiation process. Such participation breeds the democratic process in the organization.
3. It benefits both-employer and employees:
The negotiation arrived at is acceptable to both parties—the employer and the employees.
4. It is adjustable to the changing conditions:
A dynamic environment leads to changes in employment conditions. This requires changes in organizational processes to match the changed conditions. Among other alternatives available, collective bargaining is found as a better approach to bring changes more amicably.
5. It facilitates the speedy implementation of decisions arrived at collective negotiation:
The direct participation of both parties—the employer and the employees—in the collective decision-making process provides an in-built mechanism for speedy implementation of decisions arrived at collective bargaining.
