COLLECTIVE BAGAINING IN

INDIA

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 DEFINITION
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 FEATURES

ΠIt is a group process, wherein one group, representing the employers, and the
other, representing the employees, sit together to negotiate terms of employment
ΠNegotiations form an important aspect of the process of collective bargaining i e ,
there is considerable scope for discussion, compromise or mutual give and take in
collective bargaining
ΠCollective bargaining is a formalized process by which employers and independent
trade unions negotiate terms and conditions of employment and the ways in which
certain employment related issues are to be regulated at national, organizational
and workplace levels
ΠIt a bipartite process This means there are always two parties involved in the
process of collective bargaining
ΠCollective bargaining is a complementary process i e each party needs something
that the other party has; labor can increase productivity and management can pay
better for their efforts
ΠCollective bargaining tends to improve the relations between workers and the
union on the one hand and the employer on the other
 FUNCTIONS

ΠAdjustment and balance of power between the

management and union when they are in conflict
with each other This function of the system of
collective bargaining is one of the methods of
effecting social change
Œ
hen two parties are in a state of continuous
conflict, it helps in bringing about compromise, truce
or agreement for establishing peace between the
parties
ΠFor establishing industrial jurisprudence it analyses
the rights and duties of conflicting parties
 IMPORTANCE

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ΠCollective bargaining develops a sense of self respect
and responsibility among the employees
ΠIt increase the strength of the workforce, thereby,
increasing their bargaining capacity as a group
ΠIt increases the morale and productivity of employees
ΠEffective collective bargaining machinery strengthens
the trade unions movement
ΠIt helps in securing a prompt and fair settlement of
grievances
 IMPORTANCE

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ΠIt becomes easier for the management to resolve
issues at the bargaining level rather than taking up
complaints of individual workers
ΠIt tends to promote a sense of job security among
employees and thereby tends to reduce the cost of
lobour turnover to management
ΠIt opens up the channel of communication between
the workers and the management and increases
worker participation in decision making
ΠIt plays a vital role in settling and preventing
industrial dispute
 IMPORTANCE

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ΠIt leads to industrial peace in the country
ΠThe discrimination and exploitation of workers is
constantly being checked
ΠIt provides a method or the regulation of the conditions
of employment of those who are directly concerned
about them
ΠIt results in establishment of a harmonious industrial
climate which helps the pace of a nation¶s efforts
towards economic and social development
 ADVANTAGES

ΠIt is quick and efficient way of settlement of

industrial disputes
ΠIt is democratic way of settlement of industrial
dispute
 DISADVANTAGES

ΠCollective bargaining as a solvent for labour disputes

is the lack of representation of the public interest at
the bargaining table
ΠThere are situations in which a serious strike and
prolonged strike simply cannot be tolerated
 COLLECTIVE BARGAINING IN INDIA

ΠIn 
, first cotton mill was established in Bombay and in 1855,

first jute mill established in Bengal
ΠIn  
, the workers joined together to demand better working
conditions and first factory commission was formed in Bombay
in same year
ΠIn  , the first factory Act was passed This act prohibited
employment of children under the age of 7 years and restricted
the working hours of children under the age of 12 years
ΠIn  , another factory commission was formed During the
same year, Narayan Meghajee Lokhande (Lokhande) organized a
conference of factory workers and presented a memorandum
signed by 5300 factory workers to the commission, which
consist in weekly rest, half an hour¶s recess and compensation
for disablement
ΠIn  , he also succeeded to forming a union, the first in India,
named Bombay Mill Hands Association (BMHA)
Continue«
 Continue«

ΠIn ,
orker¶s
elfare Association was formed,

aimed to improve the working conditions
ΠIn   the first trade union of modern kind was
Madras Labour Union It had memberships,
organizers, office bearers and independent existence
ΠIn  All India Trade Union Congress (AITUC)
was formed by the Indian National Congress
ΠIn  India has Indian Trade Union Act
hich
enhanced the status of working class in india
 LEGAL CASES

ΠIn Kamal Leather Karamchari Sangathan v.

Liberty Footwear Company the Supreme Court
observed that, "Collective bargaining is a technique
by which dispute as to conditions of employment is
resolved amicably by agreement rather than
coercion"
ΠIn mitagarh Jute Co. Ltd. v. Sriram miwari the
Calcutta High Court clarified that this policy of the
legislature is also implicit in the definition of
'industrial dispute'
 LEGAL CASES

ΠIn Yam Prasad Viswakarma v. Industrial

mribunal the Court observed that, "it is well known how
before the days of 'collective bargaining', labour was at a
great disadvantage in obtaining reasonable terms for
contracts of service from its employer As trade unions
developed in the country and collective bargaining
became the rule, the employers found it necessary and
convenient to deal with the representatives of workmen,
instead of individual workmen, not only for the making
or modification of contracts but in the matter of taking
disciplinary action against one or more workmen and as
regards all other disputes D
TYPES OF COLLECTIVE BARGAINING IN INDIA

ΠCollective bargaining as it is practiced in India can be

divided into three classes
ΠFirst is, the bipartite agreement drawn up in
voluntary negotiation between management and
union
ΠThe second type is known as a settlement
Πthe third type of collective agreement is consent
award
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ΠThere is multiplicity of unions which are weak and

unstable, and do not represent majority of the
employees
ΠThe trade unions are having political affiliations,
they continue to be dominated by politicians, who
use the unions and their members to meet their
political ends
ΠThere is a lack of definite procedure to determine
which union is to be recognized to serve as a
bargaining agent on behalf of the workers
ΠThe law provides an easy access to adjudication
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