Type of Bargaining

Type of Bargaining

Collective bargaining is among other things a rule – making or orm creating process of a bilateral kind. Collective bargaining rules are of two kinds, namely, procedural and substantive. Procedural rules, as the term implies, set out the procedures that govern the behaviour of the employer and the union. They cover all procedural matters relating to the negotiation of contracts, their modification, renewal or termination. It also includes in it the facilities to be extended to union officials in order to enable them to bargain. Substantive rules, on the other hand, do not regulate the relationship with the substance of the agreements which the union and management‘s work out. The three different kinds of relations that are regulated by substantive rules are:(i) economic or market ‘relationship; (ii) government relationship; and (iii) work – place relationship.Image result for Types of Bargaining in Labour Laws diagram
There are two types of bargaining exercises. One is known as conjuritive or distributive bargaining and the other intergrative or Co – operative bargaining. Though both aim at joint decision making, their processes are dissimilar. In distributive bargaining, the relationship is a forced one, in which the attainment of one party’s goal appears to be in basic conflict with that of the other. It deals with issues in which parties have conflicting interests and each party uses its coercive power to a maximum extent possible. In such a situation, one party’s gain is the other’s loss. Wages bargaining is an obvious example of distributive or conjunctive bargaining. In contrast to the winlose syndrome of distributive, integrative bargaining is concerned with the solution of problems confronting both parties. It is a situation where neither party can gain unless the other gains as well. Ti makes a problem solving approach in which both the parties make a positive joint effort to their mutual satisfaction. Productivity bargaining is an instance of integrative bargaining.
Productivity bargaining is a complex subject which constitutes an integral part of the collective bargaining exercise. It may broadly be described as an agreement in which advantages of one kind or another, such as higher wage or increased leisure, are given to workers in return for agreement on their part accept changes. In work practices, methods of work, etc. Effective productivity bargaining necessitates openness and trust between the parties in the negotiation process. It is one of the most important method to increase the level of industrial efficiency. The factors which play a significant role in productivity bargaining are the general economic and political environment, human aspirations, type and nature of industry, management objectives and culture of the organization. Productivity bargaining is necessary for higher productivity and better industrial relations. Productivity agreement differs from convectional collective agreements. Conventional negotiations are more in the nature of wage bargaining. On the other hand, productivity negotiations relate to proposal for economical work practice in return for an increase in remuneration and fringe benefits. However there are certain impediments in the practice of productivity bargaining such as resistance on the part of the workman and trade union leaders, hesitation on the part of the union to make any corresponding commitment with the company in lieu of increase in wages and fringe benefits and lack of consensus among the union about the advantages of productive agreements.