Collective Bargaining

In this article we will discuss about Concept of Collective Bargaining: Meaning, Features, Process or Phases.

Collective Bargaining

Collective bargaining is something which is joint in nature.It is Bipartite which means two parties involved. It is a method where the problems of an employees solved collectively.

Collective bargaining is a combination of two words, “Collective” which means “ Group action” and ‘Bargaining’ means “ negotiating” . The word collective means  collective negotiation between the employers and the employees relating to work situation. The success of these negotiation depends upon mutual understanding and give & take principles between employer and employees.

At work place, individual face many problems such as long working hour, low wages, less incentives, etc. Due to these problems workers cannot attract the attention of the employers because of their less bargaining power. So, collective bargaining is a source of solving the problems of employees at workplace. It provide good climate for discussing  workers problems. It helps workers to get responsible wages, proper working conditions, working hour, etc.


  1. It is a flexible process
  2. It is Bipartite in nature
  3. Dynamic and changing
  4. Increase support facility to labour administration

Process/ Phases of Collective Bargaining


  1. Pre- negotiation

Pre- negotiation phase is an important stage of collective bargaining. There are three parties which makes the decision i.e Management, Trade union and Personnel department.

Management collect information related to wages, salaries, promotion criteria, etc. Then management decides to when they are negotiated and union hire for professionals for negotiation. In this stage, two type of preparation are done by management:

  • Terms of employment
  • Investigate about the character of negotiator


Union preparation:-

* Send people to research in the field

* Research about the management, team who is going to negotiated

* study reports of sister company and other company

* Research about people who negotiate on behalf of management.


Personnel department:-

* Act as channel of communication between trade union and management

* It study the character of demand and passes it to the management

* organization give lot of time for negotiation.



  1. Negotiation phase


  • Composition of the negotiation team. In case of organizational level negotiation, all the department heads take part and also a lawyer is engaged in it who guide the management regarding the legal matters.
  • Owners or President will never be the part of negotiation
  • From trade union level, the people included are plant lookers, shap stewards, central represents were also hired.
  • Who begins the process of negotiation: The party who has characters of demand eg. Trade union


  1. Agreement


A draft is made and sent to the party for approvals. It include

– Date of commencement

– Duration

– Legal terms

– Procedures for setting disputes

– the consequences of breach of contract

– Conversion formula used for wages

– Both parties name is mentioned in the front of agreement.


Both parties are asked to honour the agreement in letter and spirit and communicate it to others. The title composition name of both the parties general contents.

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