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UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

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• It lays down rules and norms for dealing with labour.<br />

• It helps usher in democratic principles into industrial world.<br />

PROCESS<br />

Collective bargaining has two facets:<br />

• Negotiating the work conditions that become the collective agreement (contract)<br />

describing employer0employee relationship on the job<br />

• Interpreting and enforcing the collective agreement (contract administration) and<br />

resolving any conflict arising out <strong>of</strong> it.<br />

The process <strong>of</strong> collective bargaining involves six major steps:<br />

• Preparing for negotiations<br />

• Identifying bargaining issues<br />

• Negotiation<br />

• Reaching the agreement<br />

• Ratifying the agreement<br />

• Administration <strong>of</strong> the agreement<br />

Preparing for negotiation<br />

Careful advance preparations by employers and employees are necessary because <strong>of</strong> the<br />

complexity <strong>of</strong> the issue and broad range <strong>of</strong> topics to be discussed during negotiations.<br />

Effective bargaining means presenting an orderly and factual case to each side.<br />

IDENTIFYING BARGAINING ISSUES<br />

The major issues discussed in collective bargaining fall under the following four<br />

categories:<br />

• Wage related issues<br />

These include such topics as how basic wage rates are determined, cost <strong>of</strong><br />

lining adjustments, wage differentials, overtime, wage adjustments and the<br />

like.<br />

• Supplementary Economic benefits<br />

These include such issues as pension plans, paid vacations, paid holidays,<br />

health insurance plans, retrenchment pay, unemployment pension, and the<br />

like.<br />

• Institutional Issues<br />

These consist <strong>of</strong> the rights and duties <strong>of</strong> employers, employees, unions,<br />

employee’s stock ownership schemes and QWL programmes.

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