Collective bargaining produces a contract between the management’s representatives on one side and those of the workers on the other. Thus, collective bargaining is a method by which trade unions protect, safeguard, and improve the conditions of their member’s working lives.
It determines the working conditions and terms of employment. Also, it ensures the participation of trade unions in the industry.
Why We Need Collective Bargaining?
The importance of collective bargaining can be explained under the following headings:
1. Constructive Response to Industrial Conflict
Collective bargaining is regarded as a constructive response to the industrial conflict as it reflects a willingness to remove the conflicts by discussion and understanding rather than by warfare.
It is the only lasting solution to the complex problem of industrial relations.
2. Anti Cyclical Measure
Collective bargaining is a good anti-cyclical measure and that the depression of the thrivers was caused partly by the worker’s inability to organize and bargain collectively and thus maintain their wage levels.
3. Extension of Democracy
Collective bargaining is an extension of democracy to the workplace.
It is the democratic means of achieving the compensation of human services.
In fact, it is democracy at work.
4. Introducing Civil Rights Into Industry
Collective bargaining does more than merely establish a few simple working conditions.
It actually defines a broad area of civil rights in the industry by providing for both managerial and union action according to specified rules rather than arbitrary and capricious decisions.
5. The Force of Social Stability
The idea of participatory democracy has been accepted by many employers as a force for social stability.
By participating in the formulating of working rules and joining political organizations, workers gain a stake in the system.
6. Equitable System
Collective bargaining is regarded as an equitable system because of its equalized power between and employees.
The government helped employers gain power by permitting them to form a corporate type of business activity.
So, it is only equitable to protect workers in their right to organize and bargain collectively.
7. Protects Energy
Collective bargaining absorbs energy which otherwise is more destructively directed.
Thus, collective bargaining provides a grainage channel for worker’s dissatisfaction.
8. Maintains Industrial Peace
Collective bargaining is the cornerstone of congenial industrial relations and of constrictive peace.
It provides a forum for meetings between management and unions and can help to facilitate improved relations and gradual change.
By collective bargaining, the frozen fruits of industrial conflict are thawed.
9. Self Governance
Collective bargaining reflects the implementation of industrial democracy.
The workers are provided with an opportunity for self-governance and a powerful tool that holds checks for arbitrariness and unilateralism.
10. Participative Management
Collective bargaining is accepted as an institution for promoting worker participation in the decision-making process.
It infuses democratic principles into the industrial world.
Workers participate in a decision that affects their work and work life.
Thus, collective bargaining may be viewed as a form of participative management.
11. Unity of Interests
Collective bargaining is a technique used for compromising the conflicting interest of employees and employers.
It helps in ironing out many differences between workers and management.
12. Better Mutual Understanding
Collective bargaining often leads to better mutual understanding.
The employers gain a greater insight into the problems and aspirations of the workers, while the better become more aware of the economic and technical factors involved in industrial management.
13. Regulations of Employment
Collective bargaining is a good method of regulating the terms and conditions of employment.
The parties directly concerned with employment and who best know the problems, participate in collective bargaining.
14. Adjustment with Environment
Collective bargaining provides a flexible means of adjusting wages and conditions of employment to change in the economic, social, technological, and political environment.
Both the parties can meet whenever necessary and can adapt the terms and conditions of their agreement to the changing environment.
15. Restrains Managements Unilateral Actions
Collective bargaining acts as a check over the unilateral actions of the employer and also prevents arbitrary and unjust actions.
16. Brings About Social Change
Collective bargaining is a means of bringing about a change in the balance of power between employers and employees.
It assists the inferior social class to exert pressure on the powerful group for a bigger share in social, economic, and political power, as well as for better welfare, security, and liberty to individual members.
This is the real spirit behind collective bargaining.
17. Easy Implementation of Decisions
Collective bargaining facilitates better implementation of decisions due to the direct involvement of both parties.
Parties know that the decisions are their own and nobody has imposed them.
18. Industrial Jurisprudence
Collective bargaining provides a code defining the rights and obligations of each party.
Basic standards are fixed and every worker is required to perform under these standard conditions stipulated in the agreement.
Thus, a short of industrial jurisprudence is promoted through collective bargaining.
19. Increases Economic Strength
Collective bargaining helps increase the economic strength of both parties at the same time protecting their interests.
20. Other Needs
- Collective bargaining is a method of the partnership of workers in management.
- It is an attempt in achieving and maintaining discipline in the industry.
- It develops a sense of self-respect and responsibility among the employees.
- It increases the morale and productivity of employees.
- The workers feel motivated as they can talk to employers on various matters and barging for higher profits.
- It promotes a sense of job security among the employees. It reduces the cost of labor turnover.
- It opens up the channels of communication between the top and bottom levels of the organization.
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