Principles of Collective Bargaining


The success of collective bargaining is based on certain principles. These principles are to be followed by the employers and unions. Prof. Arnold. F. Campo has laid down certain principles for union and management, for management and for union.

For both union and management
  1. Collective bargaining process should give due consideration to hear the problems on both sides. This will develop mutual understanding of a problem which is more important for arriving at the solutions.
  2. Both the management and union should analyze the alternatives to arrive at the best solution.
  3. There must be mutual respect on both the parties. The management should respect the unions and the unions should recognize the importance of management.
  4. Both the union and management must have good faith and confidence in discussion and arriving at a solution.
  5. Collective bargaining required effective leadership on both sides, on the union side and management side to moderate discussions and create confidence.
  6. In collective bargaining both the union and management should observe the laws and regulations in practice in arriving at a solution.
  7. In all negotiations, the labour should be given due consideration – in wage fixation, in working conditions, bonus etc.

For management

  1. Management should think of realistic principles and policies for labour regulations.
  2. The recognitions of a trade union to represent the problems is more essential. If there are more than one union, the management can recognize on which is having the support of majority of workers. 
  3. Management should follow a policy of goodwill, and cooperation in collective bargaining rather than an indifferent attitude towards the union.
  4. Managements need not wait for trade union to represent their grievances for settlement. Management can voluntarily take m
    easures to settle the grievances.
  5. Managements should give due consideration to social and economic conditions of workers in collective bargaining.

For unions 
  1. Unions should avoid undemocratic practices.
  2. Unions have to recognize their duties to the management also before emphasizing their demands.
  3. Unions have to consider the benefits to all workers rather than a section of workers.
  4. Strike lock-outs should be resorted to, only as a last measure. As far as possible they have to be avoided by compromise and discussion.