Bargaining is an important
part of industrial relations
today. It was
observed that recently around 1,25,000 workers
in Australia got a pay rise of around $102 through collective
bargaining. The secretary of Australian Council of Trade Unions (ACTU) on
this occasion emphasized that collective bargaining is necessary for
ensuring job security and providing decent compensation to the
workers. There was 2% increase in the salary of teachers as a result of
collective bargaining between the management and the teachers'
committee. The conflict between labor and management is
never-ending and unavoidable. One of the major causes for this conflict is
difference in the interests of both the parties. Queensland public sector case
of collective bargaining given above proves the importance of
collective bargaining in today's business environment. In India, around 2%
of the workforce is covered under collective bargaining, 15% in
USA, 18% in Mexico, 15% in China, and 20% in
Japan. Despite such a low percentage, this is the
preferred method of dispute settlement as adjudication, arbitration and
other methods are time-consuming and may not lead to a win-win
situation.
Collective bargaining has been defined as a negotiation about
working conditions and terms of employment between an
employer and a group of employees, to reach an agreement or consensus. It
generally involves a negotiation or conversation between the
employer and the employees or their representatives. It is a
combination of two words. It is a bargaining because it involves proposals,
offers negotiations, counter proposals and counter offers. It is
collective as the employer and the employees act as a group, rather than as
individuals. It is a collective effort of the employer and employees to
negotiate and reach an agreement to settle down the dispute. The
result of collective bargaining or the agreement is generally referred
to as Collective Bargaining Agreement. |
