The success of collective bargaining machinery largely depends on the respective attitudes of workers, in general, and the union, in particular on one hand and the attitude of management of employer on the other.
However, if collective bargaining is to exist in a country successfully the following factors are essential:
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1. It is necessary for the management to recognize the union and to bargain in more good faith. This also puts pressure on the union to formulate plans and demands in a systematic manner.
2. There should be a change in the attitude of employers and employees. They must realize that collective bargaining approach does not imply litigation as it does under adjudication. Both the parties should keep this in mind that they have to resolve their differences on their respective claims quietly and calmly, with their own resources, reducing their dependence on the third-party intervention.
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3. For the purpose of collective bargaining, employers should be represented by the management and workers by their union representatives. Careful thought and selection of the negotiating team is very much essential. For management team, it is better to have a mixed composition, such as production, finance, industrial relation experts and headed by a personnel expert.
4. It is also appreciable to have open minds; each party should listen to others’ concern and point of views and should have some flexibility in making adjustments to the demands.
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5. To ensure collective bargaining, unfair labour practices should be avoided and abandoned by both; otherwise, atmosphere and confidence will be vitiated by malpractice if either side takes advantage of the other by resorting to unfair practices.
6. Either side should avoid putting any irrational or unreasonable demand.
7. Negotiations can be successful only when the parties rely on facts and figures to support their points of view. That is why trade union should be assisted by specialists, viz., economists, productivity experts, etc.
8. Trade union should encourage the internal union democracy and periodic consultation with the general rank and file of the union members.
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9. The terms of contract and the results of the negotiation should be in writing and should be embodied in a document. If no agreement is reached the parties should proceed to conciliation, mediation or arbitration.
If no settlement is arrived, then the workers should be free to go in for strike and the employers for lockout. However, utmost care should be taken to resolve difference mutually.
10. Strikes and lockouts should be the last resort. Periodic discussions may be necessary between management and unions to interpret the provisions of the contract and clarify doubts.
11. Trade unions should be equally concerned with quality of work that leads up to a consistent concern for the viability of the firm and its products and services.
12. Once the agreement is reached, it must be honoured and fairly implemented.