Collective Bagaining in India

8/7/2019 Collective Bagaining in India

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PR E SE N T E D B Y

UDAY SHANKA R PANDI T

COLLECTIVE BAGAINING ININDIA


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DEFINITION

According to K Alexander, Collective bargaining is a process of bargainingbetween the employers and their workers by which they settle their disputes among

themselves relating to employment or non-employment or terms of employment or

conditions of the labour of the workmen, on the strength of the sanctions available to

each side. Occasionally such bargaining result in a amicable settlement arrived at

voluntarily and peaceful between the parties. But quite often the workers and theemployers have to apply sanctions by the resorting to the weapons of STRIKES and

LOCK-OUTS to pressurize one another which makes both the side aware of the strength

of one another and that finally forces each to arrive at a settlement in the mutual

interests. It is thus the strength of the parties which determines the issues rather than

the wordy duals which are largely put on for show as any element of strength in one

party is by the same token an element of weakness in another.

According to ILO, Negotiation about working conditions and terms of employmentbetween an employer and a group of employees or one or more employees

organizations with a view to reaching an agreement wherein the terms serve as a code of

defining the rights and obligations of each party in their employment/industrial

relations with one another.


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FEATURES

y It is a group process, wherein one group, representing the employers, and theother, representing the employees, sit together to negotiate terms of employment.

y Negotiations form an important aspect of the process of collective bargaining i.e.,there is considerable scope for discussion, compromise or mutual give and take incollective bargaining.

y Collective bargaining is a formalized process by which employers and independenttrade unions negotiate terms and conditions of employment and the ways in whichcertain employment related issues are to be regulated at national, organizationaland workplace levels.

y It a bipartite process. This means there are always two parties involved in theprocess of collective bargaining.

y Collective bargaining is a complementary process i.e. each party needs somethingthat the other party has; labor can increase productivity and management can paybetter for their efforts.

y Collective bargaining tends to improve the relations between workers and theunion on the one hand and the employer on the other.


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FUNCTIONS

y Adjustment and balance of power between themanagement and union when they are in conflict

with each other. This function of the system of

collective bargaining is one of the methods ofeffecting social change.

y When two parties are in a state of continuousconflict, it helps in bringing about compromise, truce

or agreement for establishing peace between theparties.

y For establishing industrial jurisprudence it analysesthe rights and duties of conflicting parties.


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IMPORTANCE

TO EMPLOYEES: -

y Collective bargaining develops a sense of self respectand responsibility among the employees.

y It increase the strength of the workforce, thereby,increasing their bargaining capacity as a group.

y It increases the morale and productivity of employees.

y Effective collective bargaining machinery strengthensthe trade unions movement.

y It helps in securing a prompt and fair settlement ofgrievances.


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IMPORTANCE

TO EMPLOYERS: -

y It becomes easier for the management to resolveissues at the bargaining level rather than taking up

complaints of individual workers.

y It tends to promote a sense of job security amongemployees and thereby tends to reduce the cost oflobour turnover to management.

y It opens up the channel of communication betweenthe workers and the management and increases

worker participation in decision making.

y It plays a vital role in settling and preventingindustrial dispute.


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IMPORTANCE

TO SOCIETY: -

y It leads to industrial peace in the country.

y The discrimination and exploitation of workers is

constantly being checked.

y It provides a method or the regulation of the conditionsof employment of those who are directly concernedabout them.

y It results in establishment of a harmonious industrialclimate which helps the pace of a nations effortstowards economic and social development.


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ADVANTAGES

y It is quick and efficient way of settlement ofindustrial disputes.

y It is democratic way of settlement of industrial

dispute.


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DISADVANTAGES

y Collective bargaining as a solvent for labour disputesis the lack of representation of the public interest atthe bargaining table.

y There are situations in which a serious strike andprolonged strike simply cannot be tolerated.


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COLLECTIVE BARGAINING IN INDIA

y In 1851, first cotton mill was established in Bombay and in 1855,first jute mill established in Bengal.

y In 1875, the workers joined together to demand better workingconditions and first factory commission was formed in Bombayin same year.

y In 1881, the first factory Act was passed. This act prohibitedemployment of children under the age of 7 years and restrictedthe working hours of children under the age of 12 years.

y In 1884, another factory commission was formed. During thesame year, Narayan Meghajee Lokhande (Lokhande) organized a

conference of factory workers and presented a memorandumsigned by 5300 factory workers to the commission, whichconsist in weekly rest, half an hours recess and compensationfor disablement.

y In 1890, he also succeeded to forming a union, the first in India,named Bombay Mill Hands Association (BMHA).

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y In 1910, Workers Welfare Association was formed,aimed to improve the working conditions.

y In 1918, the first trade union of modern kind was

Madras Labour Union. It had memberships,organizers, office bearers and independent existence.

y In 1920,All India Trade Union Congress (AITUC)was formed by the Indian National Congress.

y In 1926, India has Indian Trade Union Act.Whichenhanced the status of working class in india.


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LEGAL CASES

y InKamal Leather Karamchari Sangathan v.Liberty Footwear Company the Supreme Courtobserved that, "Collective bargaining is a technique

by which dispute as to conditions of employment isresolved amicably by agreement rather thancoercion".

y In Titagarh Jute Co. Ltd. v. Sriram Tiwari the

Calcutta High Court clarified that this policy of thelegislature is also implicit in the definition of'industrial dispute'.


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LEGAL CASES

y In Ram Prasad Viswakarma v. IndustrialTribunalthe Court observed that, "it is well known how

before the days of 'collective bargaining', labour was at agreat disadvantage in obtaining reasonable terms for

contracts of service from its employer. As trade unionsdeveloped in the country and collective bargaining

became the rule, the employers found it necessary andconvenient 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 takingdisciplinary action against one or more workmen and asregards all other disputes.


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TYPES OF COLLECTIVE BARGAINING IN INDIA

y Collective bargaining as it is practiced in India can bedivided into three classes.

y First is, the bipartite agreement drawn up in

voluntary negotiation between management andunion.

y The second type is known as a settlement

y the third type of collective agreement is consent

award


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PROBLEMS RELATING TO COLLECTIVEBARGAINING IN INDIA

y There is multiplicity of unions which are weak andunstable, and do not represent majority of theemployees.

y The trade unions are having political affiliations,they continue to be dominated by politicians, whouse the unions and their members to meet theirpolitical ends.

y There is a lack of definite procedure to determinewhich union is to be recognized to serve as abargaining agent on behalf of the workers.

y The law provides an easy access to adjudication.


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THANKS

Documents

Collective Bagaining in India