Industrial Dispute: Initiation of Collective Bargaining Process in an Industrial Dispute

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Industrial disputes are difficult to solve but with the right approach in collective bargaining, it is possible to reach mutually agreed terms.

The collective bargaining process is an alternate dispute resolution technique that is used in resolving industrial disputes (those arising between employers and employees). The dispute may range from the working conditions to working hours, wages and other benefits offered to workers. The main purpose of this process is to reach a mutual agreement regarding the issues of employment term.

As the name suggests, the collective bargaining process involves bargaining and negotiation. The bargaining process, just like a business deal, is complicated and based on the give and take principle.

Industrial Dispute: Developing a Bargaining Strategy

The collective bargaining process begins with the exploration of strengths and weaknesses of the opposite party and utilizing these in one’s own favor to resolve the issue. Both parties must deal with an issue fairly, in good faith and with a rational outlook to stabilize the employer-employee relationship.

Before the beginning of the collective bargaining conference, both management and workers hold separate meetings to review the situation, discuss the scope and coverage of issues elaborately, and the stand to be taken. These meetings are important, because both the parties select competent representatives who can represent their demands and issues in the conference. The parties also consider the maximum and minimum demands that can be presented in the conference. Worker representatives or union leaders play an important role at this phase, since they should be able to put forward realistic demands depending on the capacity of the employer.

An employer shall always respond to a negotiation request initiated by the trade union representing his workers. The employer shall also adopt a flexible approach towards the demands of workers. Finally, when the actual conference of collective bargaining begins, the representatives of opposite parties come face to face and put forward their demands and proposals. They explore various possibilities to reach mutually agreed terms that pave way for settlement and for enter into a contract known as the collective bargaining contract.

Final Legal Take Away Tip: As the Trade Union Act does not provides for mandatory recognition of a registered trade union by an employer, recognition of a trade union is solely on the discretion of an employer. This often causes problems during the initiation of collective bargaining process following any industrial dispute.
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