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LMR PresentationFUNTIONS

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FUNCTIONS OF COLLECTIVE

BARGAINING
Introduction
Collective bargaining plays a vital role in settling and preventing industrial disputes. It is an important tool for
maintaining industrial peace and so the responsibility of its proper implementation should be of both the
employers as well as the employees

 Functions of Collective Bargaining  according to Arthur. D. Butler’s

Collective bargaining has now been known as a process of decision-making and a mechanism for belonging
the power between the employers and the employees on a case-by-case basis. It is based on the golden
principle of-working together, sharing together, deciding and earning together and on jobbing together.
Collective bargaining not only include negotiation, administration and enforcement of written contracts
between employees and the management but also include the process of resolving labour- management
conflicts. It helps to promote co-operation and mutual understanding between the workers and the
management.
Collective bargaining plays an important role in preventing and settling industrial disputes and maintaining
industrial peace in the enterprise. It attempts to compromise the conflicting interests of employees and
employer.
Arthur. D. Butler’s Classification of Functions of Collective
Bargaining:

1. As a Process of Social Change:


Collective bargaining is a technique of social change. It attempts to re-arrange the economic relations
between employers and the employees. Employees can enhance their social and economic position and
at the same time management also retains a large measure of power through the process of collective
bargaining. Collective bargaining manifests itself equally in politics, administration, legislation,
religion, education and propaganda.
2. As a Process of Peace Treaty:
Collective bargaining is viewed as peace treaty between the two parties in continual conflict. Settlement
between the two conflicting parties is basically a compromise brought out by the process of collective
bargaining. The extent to which each party is willing to accept lesser than the originally demanded
depends upon its competing position i.e., how strong or weak it is as compared to its opponent.
Compromise represents a state, to which each side is prepared to descend from original stand.

The receding from original position may come about in two major ways:
(i) With combative aspects
(ii) Without combative aspects.
(i) Compromise with Combative Aspects:
When the outcome of struggle depends on the parties relative strength? The inherent strength of each
side is its ability to withstand strike. To what extent union can provided financial to support strikers?
Are unemployed workers available to serve also strike breakers? How much will employer’s sales
will be reduced. These all are known as economic matters.
But the ability to withstand strike as depends on such non-economic factors as loyalty of workers to
union, their willingness to make personal sacrifices to support its goals. And the degree of loyalty of
course, is affected by presence of any factionalism with in the union. The settlement between the two
parties, when finally reached, with or without strike is a compromise.
(ii) Compromise without Combative Aspects:
As it is known not always the compromise is the culmination of continuous struggle and antagonistic
attitudes. Instead a majority of contracts are reached without a strike, the “truce”-the agreement is
signed before either opponent fires a shot. That is the union starts first of all to make changes and
improvement in its relations with the employer. Once a truce-the agreement has been signed, the
union stabilizes working conditions by presenting the status defined in the contract.
3. As a System of Industrial Jurisprudence:
Collective bargaining brings civil rights into industry. It requires management to be conducted by rules
rather than by arbitrary decisions.
(i) Collective bargaining is a rule-making process that formulates terms and conditions for the
employment, under which labour and management must co-operate and work together.
(ii) Collective bargaining is an executive process and the labour, trade unions and management share
the collective responsibility for executing the rules.
(iii) Collective bargaining is a judicial process, which provides interpretation of the agreement of the
court, in case of any difference or dispute pertaining to any clause or provision.
THANK YOU

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