- To maintain cordial relations between the employer and employees.
- To protect the interests of the workers through collective action and by preventing unilateral actions from being taken by the employer.
- To ensure the participation of trade unions in industry.
- To avoid the need for government intervention as collective bargaining is a voluntary collective process.
- To promote Industrial democracy.
- It is a group or collective action as opposed to individual action. It is initiated through the representatives of the employees.
- It is a flexible and dynamic process where-in no party adopts a rigid attitude.
- It is a continuous process, which provides a mechanism for continuous negotiations and discussions between management and the trade unions.
- It is a voluntary process without any third-party intervention. Both workers and management voluntarily participate in the negotiations, discuss and arrive at a solution. That is why it is known as a bipartite process where workers’ representatives and management get an opportunity for clear, face-to-face communication.
- It ensures industrial democracy at the workplace; it is a self-run government in action.
- It is a two-way process. It is a mutual give and take rather than a take home all method of arriving at a solution to a dispute.
Preparation for Negotiation
Identifying issues for Bargaining
Ratification of Agreement
Implementation of Agreement
- Boulwarism: In this method, the management themselves takes the initiative to find out through comprehensive research and surveys the needs of the employees. Based on the analysis of the findings, the company designs its own package based on the issues to be bargained. Thereafter, a change is incorporated only when new facts are presented by the employees or their unions.
- Continuous Bargaining: Involves parties to explore particular bargaining problems in joint meetings over a long period of time, some throughout the life of each agreement. The basic logic behind this method is that all persistent issues can be addressed through continuous negotiation over a period of time. The success of negotiations depends on the skills and abilities of the negotiators.