Collective Bargaining

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Collective bargaining serves a dual purpose. It provides a means of determining the wages and conditions of work applying to the group of workers covered by the ensuing agreement through free and voluntary negotiations between the two independent parties concerned. It also enables employers and workers to define by agreement the rules governing their relationship. These two aspects of the bargaining process are closely interrelated. Collective bargaining takes place between an employer, a group of employers or one or more employers' organisations on the one hand and one or more workers' organisations on the other. It may take place at many different levels, with one level sometimes complementing the other: a unit within an enterprise, enterprise level, sectoral, regional and national level.

Collecting bargaining can be advantageous for both workers and employers. For workers, collective bargaining, more so than individual employment relations, ensures adequate wages and working conditions by providing them with a "collective voice". It also allows them to influence personnel decisions and to achieve a fair distribution of gains from technological progress and productivity increases. For employers, collective bargaining helps to stabilise industrial relations by maintaining industrial peace that otherwise may be disrupted by labour unrest. Through collective bargaining employers can also address the need for adjustment to facilitate modernisation and restructuring. Contrary to the conventional belief, an ILO study (Ozaki ed. 1999) argued that collective bargaining has been one of the main consensual means of introducing labour market flexibility in many countries.

There are certain legal and structural pre-conditions for collective bargaining to function properly. The democratic foundations and the appropriate legal framework with which to ensure independence and the effective participation of social partners are essential. The ratification of the Freedom of Association and Protection of the Right to Organise Convention, 1948 (C 87) and Right to Organise and Collective Bargaining Convention, 1949 (C 98), two of the fundamental ILO Conventions, is essential to provide a legal basis. There are many other ILO Conventions and Recommendations related to collective bargaining which stipulate the rights and principles of workers belonging to specific sectors (see list below). If there exists an extension mechanism, the coverage of collective agreements can be extended to those who are not directly involved in collective bargaining. A proper enforcement mechanism (legal, regulatory or soft regulations) is essential for collective agreements to become effective. As for structural and institutional conditions, legitimate, strong, consistent and pragmatic workers' and employers' organisations on equal footing facilitate fair negotiation and effective bargaining. The ILO has been undertaking technical assistance and cooperation in many countries to build the capacity of employers' and workers' organisations to engage in collective bargaining from which both sides can benefit.

ILO Conventions and Recommendations
• C84 Right of Association (Non-Metropolitan Territories) Convention, 1947
• C87 Freedom of Association and Protection of the Right to Organise Convention, 1948
• C98 Right to Organise and Collective Bargaining Convention, 1949
• •C135 Workers' Representatives Convention, 1971
• C141 Rural Workers' Organisations Convention, 1975
• C151 Labour Relations (Public Service) Convention, 1978
• C154 Collective Bargaining Convention, 1981
• R91 Collective Agreements Recommendation, 1951
• R143 Workers' Representatives Recommendation, 1971
• R149 Rural Workers' Organisations Recommendation, 1975
• R159 Labour Relations (Public Service) Recommendation, 1978>
• R163 Collective Bargaining Recommendation, 1981