Importance of Collective Bargaining in Industrial Relations

Collective bargaining is an important element in industrial relations. Collective bargaining helps to make the relationship between employees and employers smooth. A strong bond between the employers and employees contribute to the successful working of the company.

When management people and employees communicate with each other for reaching an agreement it can be said as an outcome of collective bargaining. Most people think collective bargaining as the process in which union members of the employees talk with employers for getting benefits. However collective bargaining is the process through which conclusion is reached regarding wages of employees, working hour of employees and working conditions at the company.

Trade Unions have been regularly criticized for creating strife within workplace environment fighting   workmen compensation as the concept of Collective Bargaining has been termed as a continuous strategic process in determining terms and conditions of employment  where management and employees participate at a workplace to oversee establishing stable relationships and was primarily developed as an alternative to ad-hoc on the basis of an agreement with the employees related to managing discipline and employee claims.

Let’s break down the word ‘collective bargaining’,  wherein  the term ‘collective’ is owing to involvement of two parties [employer and employees], who take positions as ‘groups’ as opposed to individuals, while ‘bargaining’ involves negotiations prior to reaching an agreement and shall involve proposals and counter proposals when striking an offer or counter-offer.

Industrial relations is an essential component of labor administration and involves procedures, attitudes and behavior which underpins how employers, unions, employees interact with each other at workplace to affect the eventual outcomes and therefore remains a critical driver of organizational success, which when reviewed against numerous published research studies argues that  ‘good industrial relations’ shall translate into delivering robust organizational performance, reduced absenteeism, increased efficiency, higher productivity and creates an environment of innovation to motivate employees by generating employee loyalty and trust.

While in the event of an industrial conflict between employers and employees, shall demand collective consultation, negotiation and a framework that creates mutual respect and understanding in dealing with industrial issues such as strikes and lockouts.  It is fair to state that a legal process would stimulate collective bargaining to bring in harmony, peace, discipline as stable industrial relations is the key to economic growth and social development of nations.

Globally managing human resources involves promoting a better understanding to acknowledge viewpoints, disagreements through dialogue, discussions and interactions, as collective bargaining is often used to build bridges by resolving minor or major differences with any outsider influence or interventions.

Westford University College offers some international programs for better understanding of managing human resources and industrial relational structure. These programs will increase your global ability and managerial skills. One program is MBA in Human Resource Management and Organizational Psychology and the other is a post graduate diploma in Strategic Human Resource Management