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Shvoong Home>Business & Finance>Human Resources>Collective Bargaining and Its Objectives Review

Collective Bargaining and Its Objectives

Academic Paper Review   by:SThap     Original Author: SR
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What is Collective Bargaining?

Collective bargaining is a technique adopted employers and employees of an organisation to resolve their existing or future differences with or without assistance of a third party. Its ultimate aim is to reach to a decision which is acceptable to both the parties involved in labour-management relation.

“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”.
- Hoxie

“Collective Bargaining takes place when a number of work-people enter into a negotiation as bargaining unit with an employer or group of employers with the object of reaching an agreement on the conditions of employment of the work-people”.
- Richardson.

Collective bargaining may be decided as a process of negotiation between the employers and the organized workers represented by their union in order to determine the terms and conditions of employment.

In the process of Collective Bargaining employees and management collectively bargain for their common interests and benefits and reach to an amicable solution jointly through negotiation. Collective bargaining is based on the principal of balance of power

Objectives of collective bargaining:

Worker’s participation: The basic objective of collective bargaining is to provide an opportunity to the workers to participate in the organizational decision-making. As workers know the ground realties of the enterprise, they may provide easy and useful suggestions to enhance quality of employment conditions. This also helps in boosting the employee morale and enhancing their commitment to the organization.

To resolve industrial disputes: Actually Collective bargaining itself does not prevent industrial disputes but it provides a platform for discuss the management-worker difference and reach to an agreement which protects the best interest of both the parties.

To improve management-worker relation
Collective bargaining is a process of give and take. It develops mutual trust and faith between both the parties which results in improved management-worker relation.

Improved protectively:
Collective bargaining avoids the situation of lock-out and hadtaals and disputes and mutually discussed and resolved. It prevents from the loss of fruitlessness time which spent in lock-out and hadtaals.
Published: August 21, 2009   
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