DECLARATION

I hereby declare that the project entitled “COLLECTIVE BARGAINING IN INDIA”

submitted by me at CHANAKYA NATIONAL LAW UNIVERSITY is a record of bona fide

project work carried out by me under the guidance of our mentor Mrs. Pallavi Shankar. We

further declare that the work reported in this project has not been submitted and will not be

submitted, either in part or in full, for the award of any other degree or diploma in this

university or in any other university.

__________

(SHUBHAM)

Roll no. – 1764

2
 ACKNOWLEDGMENT

I hereby declare that the project entitled “COLLECTIVE BARGAINING IN INDIA”

submitted by me at CHANAKYA NATIONAL LAW UNIVERSITY is a record of bona fide

project work carried out by me under the guidance of our mentor Mrs. Pallavi Shankar. We

further declare that the work reported in this project has not been submitted and will not be

submitted, either in part or in full, for the award of any other degree or diploma in this

university or in any other university.

__________

(SHUBHAM)

Roll no. – 1764

3
TABLE OF CONTENTS:
INTRODUCTION………………………………………………………………...05-06

CHAPTER: 2 DEFINITIONS OF COLLECTIVE BARGAINING……………...08-10

CHAPTER: 3 ANALYSIS OF THE CONCEPT OF

COLLECTIVE BARGAINING…………………………………………………..11-19

CHAPTER: 4 COLLECTIVE BARGAINING PROCESS………………………20-24

CHAPTER: 5 STRIKE & LOCKOUT AS A METHOD

OF COLLECTIVE BARGAINING……………………………………………....25-30

CHAPTER: 6 COLLECTIVE BARGAINING AGREEMENT………………….31-35

CHAPTER: 7 ILO CONVENTION ON COLLECTIVE BARGAINING……….36-40

CHAPTER: 8 EVOLUTION OF INDUSTRIAL JURISPRUDENCE………………41

CHAPTER: 9 COLLECTIVE BARGAINING IN INDIA

& IT’S POSITION………………………………………………………………..42-49

CHAPTER: 10 LAWS RELATING TO COLLECTIVE

BARGAINING IN INDIA……………………………………………………… 50-51

CHAPTER: 11 PROBLEMS RELATING TO COLLECTIVE BARGAINING……52

CONCLUSION & SUGGESTION……………………………………………….53-55

BIBLIOGRAPHY………………………………………………………………...56-57

4
 INTRODUCTION
“United we Stand, Divided we Fall”

The conflict between the management and the employee is inherent in an industrial society.
One argues for more investment and profits while the other argues for better standard of
living. These two conflicting interests can be adjusted temporarily through the principle of
"give and take"1, The principle of give and take has been infused in the principle of collective
bargaining.

The phrase "collective bargaining" was coined by British labour reformers Sidney and
Beatrice Webb of Great Britain which was the “home of collective bargaining” in the
1890’s2. The idea of collective bargaining emerged as a result of industrial conflict and
growth of trade union movement and was first given currency in the United States by Samuel
Crompers. In India the first collective bargaining agreement was conducted in 1920 at the
instance of Mahatma Gandhi to regulate labour management relation between a group of
employers and their workers in the textile industry in Ahmadabad3.

Advocates of collective bargaining in the early decades of the twentieth century thought it
essential for three reasons. First and foremost, a system of peaceful and routine bargaining
would eliminate industrial strife and violence. Second, collective bargaining stood for
"industrial democracy," and finally, collective bargaining promised to make capitalism work.

In any industrial establishment the friction between employer and the workmen is inevitable.
There are demands by the workmen and if those demands are resisted by the employer,
industrial dispute arises resulting in industrial tension and disturbing the peace and harmony
in the industry. Collective Bargaining is one of the methods wherein the employer and the
employees can settle their disputes. There was always a need of a legislation which could
ensure industrial justice pre-empt the industrial tensions and provide the mechanics of dispute
resolution. When Industrial Disputes Act, 1947 was passed in India, it was passed to provide

1 Otto Kahn-Freund, Laboar aad the Law, L mdon, Stevens & Sons, (1977\ .). 49

2Webb, Sydney and Beatrice, Industrial Democracy,1902,p.185 


3 Report of Royal Commission on Labour in India, 1931; p. 336-337

5
machinery and form for the investigation of industrial disputes and for the settlement thereof
and for the purposes analogous and incidental thereto. As is evident from the Act itself that it
is piece of legislation which mainly provides for investigation and settlement of Industrial
disputes.

In the words of Justice Desai the emergence of the concept of welfare state implies an end to
exploitation of workmen and as a corollary to that collective bargaining came into its own
and lest the conflicting interests of the workmen and the employer disturb the industrial peace
and harmony, a machinery for adjustment of such conflicting interests became the need of the
time. The Act therefore was enacted to provide machinery and Forum for adjustment of such
conflicting and seemingly irreconcilable interests without disturbing the peace and harmony
in the industry assuring the industrial growth which was the prerequisite of for a welfare
state.

Collective bargaining is one of the methods wherein the employer and the employees can
settle their disputes. This method of settling disputes was adopted with the emergence and
stabilization of the trade union Government. Before the adoption of the collective bargaining
the labour was at a great disadvantage in obtaining reasonable terms for contract of service
from its employer. With the development of the trade unions in the country and the collective
bargaining becoming the rule it was equally found by the employers that instead of dealing
with individual workmen it is convenient and necessary to deal with the representatives of the
workmen not only for the making or modification contracts but also in the matter of taking
disciplinary action against the workmen and regarding other disputes. So, collective
bargaining has come to stay having regard to modern conditions of the society where capital
and labour have organized themselves into groups for the purpose of fighting and settling
their disputes.

6
 RESEARCH METHODOLOGY

Aims and objective

The aim of this project is to analyze the process of “Collective Bargaining” and the objective
has been to understand the impact of Collective Bargaining in India.

Scope and limitation

The researcher has limited the scope of the project paper to the concept of collective
bargaining and its impact in India.

Method of analysis

The researcher has endeavored to use a combination of critical and descriptive styles of
writing throughout this project and has cited various cases to critically analyze the theory of
collective bargaining.

Research questions

Following are some the basic questions the researcher has tried to answer in this paper;

1. What is the concept of collective bargaining? 


2. Whether strike and lockouts are established means of weapons of collective bargaining? 


3. What is the impact of collective bargaining in India? 


4. What are the problems related to the collective bargaining process in India? 


5. How can collective Bargaining be strengthened as a mode of settling industrial disputes?

Sources of data

7
The researcher has used both, primary as well as the secondary sources to complete the
project.

CHAPTER: 2

DEFINITIONS OF COLLECTIVE BARGANING

There is no precise definition of “Collective bargaining”. In fact keeping in view the change
in the society with its fast changing social norms the scope and content of collective also
varies from country to country. Nevertheless, Collective bargaining has been defined by
different experts in different ways. It is treated as a method by which problem of wages and
conditions of employment are resolved peacefully and voluntarily between labour and
management.4

This chapter deals with the various definitions of collective bargaining which will be helpful
in understanding the concept of collective bargaining, its ambit and scope as has been coined
by various writers.

According to K. Alexander

“Collective bargaining is a process of bargaining between 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 labour of the workmen, on the strength
of the sanctions available to each side. Occasionally such bargaining results in amicable
settlement arrived at voluntarily and peaceful between the parties. But quite often the workers
and the employers have to apply sanctions by resorting to the weapons of strikes and lock-
outs to pressurize one another which makes both the sides 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”.

4
I.L., Labour Law and Labour Relations, N.M. Tripathi (Pvt) Ltd., Bombay, (1968), P.29:

8
Convention 154 of International Labour Organization (ILO) under Article 2 says: For
the purpose of this Convention the term collective bargaining extends to all negotiations
which take place between an employer, a group of employers or one or more employers'
organizations, on the one hand, and one or more workers' organizations, on the other, for –

(a) determining working conditions and terms of employment; and/or 


(b) regulating relations between employers and workers; and/or 


(c) regulating relations between employers or their organizations and a workers'

organization 


ILO has defined collective bargaining as, 
 “negotiation about working conditions
and terms of employment between 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”. 
 This definition however

confines the term collective bargaining as a means of improving conditions of

employment. But in fact, collective bargaining serves something more. 


In Encyclopedia of Social Sciences, collective Bargaining has been defined a process of

discussion and negotiations between two parties, one or both of whom is a group of persons
acting in concert. The resulting bargain is an understanding as to terms and conditions under
which a continuing service is to be performed. More especially, collective bargaining is the
procedure by which an employer or employers and a group of employees agree upon the
conditions of work.

In the words of John T Dunlop, “Collective Bargaining is:

(1) a system which establishes, revises and administers many of the rules which

govern the 
 worker’s place of work; 


9
 (2) a procedure which determines the quantum of compensation which employees

should 
 receive and which influences the distribution of economic ills; 


(3) a method of settling disputes during the pendency of agreement and of

determining, after 
 its expiry, whether a dispute should be re-opened or whether a

strike or a lock-out should be resorted or not. 


In sum collective bargaining, is labor relations, procedure whereby an employer or employers

agree to discuss the conditions of work by bargaining with representatives of the employees,
usually a labor union. Its purpose may be either a discussion of the terms and conditions of
employment (wages, work hours, job safety, or job security) or a consideration of the
collective relations between both sides (the right to organize workers, recognition of a union,
or a guarantee of no reprisals against the workers if a strike has occurred). The merits of
collective bargaining have been argued by both opponents and proponents of the process; the
former maintain that it deprives the worker of his individual liberty to dispose of his service,
while the latter point out that without the union's protection the worker is subject to the
dictation of the employer.

10
CHAPTER: 3

ANALYSIS OF THE CONCEPT OF COLLECTIVE BARGANING

Collective bargaining is concerned with the relations between employers acting through
management and organised labour. It is concerned not only with the negotiation of a formal
labour agreement but also with the day-to-day dealings between management and the union.
Collective bargaining is a voluntary process under which the representatives of both
employers and labour enter into an agreement. The process does not stop as soon as a bargain
is reached at between the employer and the trade union. It is a continuous process because the
contract is only the beginning of collective bargaining. Bargaining requires an efficient and
permanent arrangement for negotiations. No temporary or one-time arrangements can make
the bargaining process successful.

Features of Collective Bargaining

The features of collective bargaining are as under:

It is a group process, wherein one group, representing the employers, and the other,

representing the employees, sit together to negotiate terms of employment; 


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 in collective

bargaining; 


Collective 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; 


11
 Collective bargaining is a process in the sense that it consists of a number of steps. It begins
with the presentation of the charter of demands and ends with reaching an agreement, which
would serve as the basic law governing labor management relations over a period of time in an
enterprise. Moreover, it is flexible process and not fixed or static. Mutual trust and

understanding serve as the by products of harmonious relations between the two parties; 


It a bipartite process. This means there are always two parties involved in the
process of collective bargaining. The negotiations generally take place between the

employees and the management. It is a form of participation; 
 Collective

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; 


Collective bargaining tends to improve the relations between workers and the

union on the one 
 hand and the employer on the other; 


Collective Bargaining is continuous process. It enables industrial democracy to be

effective. It 
 uses cooperation and consensus for settling disputes rather than conflict

and confrontation; 


Collective bargaining takes into account day to day changes, policies,

potentialities, capacities 
 and interests; 


It is a political activity frequently undertaken by professional negotiators. 


Significance of Collective Bargaining


 In an Industrial Establishment to solve the problems arising at the plant or industry

level the need of the collective bargaining is eagerly felt. Through negotiations the
solution to the common problems can be directly found out between the management
and workers and here the collective bargaining plays significant role and its scope is
very great. In so far the determination of terms and conditions of employment are

12
 concerned, one important consequence of collective bargaining has been that it has
enabled trade unions to participate in the decision making process regarding hours of
work, wages, working conditions etc. Earlier the employer used to decide these issues
unilaterally, but now they have become subjects of bilateral negotiations with the
advent of collective bargaining. Thus an element of industrial democracy has been
introduced by collective bargaining in the field of industrial and labour management.


 Collective bargaining is really useful from the stand point of management, trade

unions and workers. Among workers it develops a sense of responsibility and self
respect if it works well and thus contributes to a great extent to employee’s morale
and productivity. It opens up channels of communication between top and bottom of
an undertaking which is difficult otherwise. Further the management’s freedom of
action is restricted because the establishment loses its unilateral discretion regarding
bargainable issues even when management’s security is intact and thereby learns a
new code of behavior by conceiving of the union as a method of dealing with the

employees not an obstacle to such dealing. 


The significance of collective bargaining from the national stand point is that it helps in
creating peaceful industrial climate if properly conducted, thereby increases the pace of the
country’s efforts towards social and economic development. Collective bargaining as an
instrument of industrial peace has no parallel. It extends the democratic principle from the
political to the industrial field and is an important aspect so far as the labour and management
relations are concerned.

Functions of Collective Bargaining

The functions of the collective bargaining are as under:

1. Adjustment 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. 


2. When two parties are in a state of continuous conflict, it helps in bringing about
compromise, truce or agreement for establishing peace between the parties.
Industrial truce results when two parties to a dispute arrive at a compromise or
agreement without resorting to strike or lock-out. Such truce may be stable or

13
 temporary. It depends upon the parties as to what extent one party is willing to
sacrifice and the other party is willing to accept the demands, or terms. Both the
parties are morally bound to implement the agreement once it is signed.

3. 
 For establishing industrial jurisprudence it analyses the rights and duties of

conflicting parties. 


4. It also adjusts labour management disputes apart from performing functions like
negotiation, administration and enforcement of agreements by which union

management relationship is 
 governed. 


Subject-matter of Collective Bargaining


 Collective bargaining has two pronged concerns: 


(1) Chalking out a broad contract of employment relationship between employers and

workers, and 


(2) The administration of the contract. 
 In fact, it has been recognised as a method

of determining the wage rates and other terms and conditions of employment and of
regulating the relations between the management and organized labour. Collective
bargaining includes provisions with respect to hiring, lay-offs, promotions, transfers,
work scheduling, work assignment, wages, welfare programmes, retirement benefits,

discipline, etc. 


Pre-requisites for collective bargaining 


Effective negotiations and enforcement requires a systematic preparation of the base or

ground for bargaining which involves the following steps: 


1. Recognition of the Bargaining Agent: The management should give

recognition to the trade union for participating in the collective bargaining

14
 process. In case there is more than one union, selection could be done through
verification of membership by a government agency giving representation to
all the major unions through joint consultations. Thus, the bargaining agent of
the workers should be properly identified before initiating any action.

2. Deciding the Level of Bargaining: Whether the dealings are confined to

enterprise level, industry level, regional or national level should be decided as
the contents, scope and enforcement agencies differ in each case.

3. Determining the Scope and Coverage of Bargaining: It would be better to

have a clear understanding of what are the issues to be covered under
bargaining. Many a time, bargaining is restricted to wage and working
conditions related issues but it would be advantageous for both the
management and union to cover as many issues as possible to prevent further
friction and disputes. Therefore, all the important and interrelated issues are to

be taken for consideration. 


4. Spirit of Give and Take: When there is a spirit of give and take between the
management and union, collective bargaining can be an effective technique of

settling industrial disputes. 


5. Good Faith and Mutual Agreement: The parties to collective bargaining

should act in good faith and do the things on the basis of mutual agreement as
there is no legal sanction behind the terms and conditions agreed upon by the

parties. 


Importance of Collective Bargaining


 Collective bargaining is an important method of regulating relations between

employers and employees. It involves negotiation, administration and enforcement of the

15
 written contracts between the employees and the employers. It also includes the process

of resolving labour- management conflicts. 
 Healthy collective bargaining generates a

spirit of self-confidence and self-reliance among the workers. It is based on a ‘give and
take’ policy on both sides. Collective bargaining leads to increased goodwill and
understanding between labour and management. This in turn helps to create peaceful and

comfortable atmosphere in industrial relations. 
 Importance to employees 


Collective bargaining develops a sense of self respect and responsibility among the

employees 


It increases the strength of the workforce, thereby, increasing their

bargaining capacity as a 
 group 


Collective bargaining increases the morale and productivity of employees; 


It restricts management’s freedom for arbitrary action against the employees.

Moreover, 
 unilateral actions by the employer are also discouraged; 


Effective collective bargaining machinery strengthens the trade unions movement;

The workers feel motivated as they can approach the management on various

matters and 
 bargain for higher benefits; 


It helps in securing a prompt and fair settlement of grievances. It provides a

flexible means for the adjustment of wages and employment conditions to economic and
technological changes in the industry, as a result of which the chances for conflicts are

reduced; 


It helps in securing a prompt and fair settlement of grievances. It provides a

flexible means for the adjustment of wages and employment conditions to economic and
technological changes in the industry, as a result of which the chances for conflicts are

16
reduced. 
 Importance to employers 


It becomes easier for the management to resolve issues at the bargaining level

rather than taking up complaints of individual workers. 


Collective bargaining tends to promote a sense of job security among employees

and thereby tends to reduce the cost of labor turnover to management. 


Collective bargaining opens up the channel of communication between the

workers and the management and increases worker participation in decision making. 


Collective bargaining plays a vital role in settling and preventing industrial dispute

Importance to society 


Collective bargaining leads to industrial peace in the country; 


It results in establishment of a harmonious industrial climate which helps the pace

of a nation’s 
 efforts towards economic and social development since the obstacles to such a

development can 
 be reduced considerably; 


The discrimination and exploitation of workers is constantly being checked; 


It provides a method or the regulation of the conditions of employment of those

who are directly 
 concerned about them. 


Principles of Collective Bargaining 


As mentioned before that the collective bargaining has succeeded in introducing

industrial democracy in industrial and labour managements. Industrial democracy
implies that the majority union should have the right to sole representation i.e. the
right to speak and act for all workers and to enter into agreements with the employer.
There are certain principles which have to be followed by both the management and

17
 workers for collective bargaining. These principles are as follows:

1. There should be a realization on the part of both unions and managements that for taking

wiser an more expedient decisions, collective bargaining is a proper method. 


2. An opportunity should be provided to trade union leaders for putting their complaints,
demands, needs, etc. before the managements and the management should explain to
them the circumstances and make efforts to redress the grievances/complaints of the

workers. 


3. The presence of genuine spirit of mutual trust, goodwill and bargaining should be there on

the part of both the parties; 


4. Competence for bargaining with mutual respect and implementation of the agreement

arrive at should be possessed by both the parties. 


5. The parties to collective bargaining should be honest and the agreement should be

conducted by these honest, competent and reasonable leaders; 


6. Keeping in view the changing circumstances, it is desirable that the management should
change their policies and should keep in view the dignity of the workers. Appropriate
labour policy should be adopted by the management and this policy to be followed by
all employees. Necessary precautions must be taken.

7. 
 If there are more than one union the management should enter into negotiation with

union having majority representation.

8. It is equally desirable on the part of the union to raise reasonable demands. They should
not put up such demands as are beyond the paying capacity of the establishment or
may be against the national policies.

Scope of Collective Bargaining

18
 The growth of collective bargaining is associated with the recognition of trade
unionism. With the growth of trade unions and industrialization the scope of
collective bargaining is expanding. Initially collective bargaining was used for
determining hours of work, wages and terms of employment, but now within its
purview are included the issues like leave with pay, regulation of forced leave,
pension, seniority promotions, sickness and maternity benefits, etc. Since in the field
of bargaining collective action is now common, collective bargaining has assumed an
institutional form. In the words of C.W. Randle:
“The subject matter of collective bargaining had broadened until it has virtually
eliminated the field of the management prerogatives. The area pattern of bargaining
has moved from simple style plant bargaining to region-wise and finally to dynamic
nature of the scope of collective bargaining. At the same time, they show how
important negotiation has become as an institution. And the future holds promise of
an even greater role for collective”.

Advantages and Disadvantages of Collective Bargaining

Advantages of Collective Bargaining

According to National Commission Report on labour collective bargaining has been preferred
over compulsory adjudication system for several reasons:

(a) It is a system based on bipartite agreements, and as such, superior to any

arrangement involving third party intervention in matters which essentially concern

employees and workers; 


(b) It is quick and efficient method of settlement of industrial disputes; and 


(c) It is democratic method of settlement of industrial disputes; 


Disadvantages of Collective Bargaining

Two vital defects in collective bargaining have been pointed out by Willcox. These defects
are:

(a) There are situations in which a serious strike and prolonged strike simply cannot

19
 be tolerated. 


(b) The second great flaw in collective bargaining as a solvent for labour disputes is
the lack of representation of the public interest at the bargaining table. Whether prices
can be raised without strangling and ability to sell goods or services, unions and
companies are in a position to agree on wage increase that will cause higher prices,
then the consumer must shoulder the full burden 
 of their agreement. 


CHAPTER: 4

COLLECTIVE BARGAINING PROCESS

20
The collective bargaining process begins when the majority of workers of an organization
vote to be represented by a specific union. The National Labour Relations Board (see Labour
Unions) then certifies the union. At this point, the management of the organization must
recognize the union as the collective bargaining agent for all the employees of that
organization. Once this part of the process is completed, collective bargaining can begin.

Bargaining always takes place between labour and management, but negotiations can include
more than one group of workers and more than one employer. Single-plant, single-employer
agreements are the most common. However, if an employer has more than one plant or work
site, multiplant, single-employer agreements can be bargained. Several different union groups
representing the workers of the same employer can use coalition bargaining. Industry wide
bargaining involves one national union bargaining with several employers of a specific
industry. Many different negotiation styles can be used when union and labour
representatives sit down at the bargaining table. The two basic modes of bargaining are
traditional bargaining and partnership bargaining, though there are many variations of each
style.

The traditional style of bargaining has been used since collective bargaining began between
management and the early labour unions. It is an adversarial style of negotiating, putting one
side against the other with little or no understanding of, or education about, the other on the
part of either party. Each side places its demands and proposals on the table, and the other
side responds to them with counterproposals. The process is negative and involves a struggle
of give-and-take on most issues. Even with its negative connotations, however, the traditional
style of negotiating is still used effectively in bargaining many union contracts.

The partnership style of bargaining is the more modern approach to negotiations. It strives for
mutual understanding and common education on the part of both labour and management,
and it focuses on goals and concerns common to both parties. Because of its emphasis on
each side's being aware of the issues concerning the other side, partnership-style bargaining is
also known as interest-based bargaining. In this process, labour and management each list
and explain their

needs, and the ensuing discussion revolves around ways to meet those needs that will be not
only acceptable but also beneficial to both parties. This style of bargaining is very positive
and imparts a much more congenial atmosphere to the negotiating process. Many modern

21
union- management contracts are bargained very successfully using the partnership style.

A blending of the traditional and partnership styles is widely used in labour-management

negotiations. The combination approach is used for many reasons, including the fact that
many union and management leaders are more familiar with the traditional style. However,
with today's more participatory relationship between labour and management in the
workplace, the partnership style is becoming more accepted and is being used more
frequently. The negotiating process may also include both styles of bargaining because of the
variety of issues being negotiated. The partnership style may be used to negotiate certain
issues, while the traditional style may be invoked when bargaining other terms.

Collective Bargaining Issues

Labour unions were formed to help workers achieve common goals in the areas of wages,
hours, working conditions, and job security. These issues still are the focus of the collective
bargaining process, though some new concepts have become the subjects of negotiations.

The Settlement Process

Union contracts are usually bargained to remain in effect for two to three years but may cover
longer or shorter periods of time. The process of negotiating a union contract, however, may
take an extended period of time. Once the management and union members of the negotiating
team come to agreement on the terms of the contract, the union members must accept or
reject the agreement by a majority vote. If the agreement is accepted, the contract is ratified
and becomes a legally binding agreement remaining in effect for the specified period of time.

If the union membership rejects the terms of the agreement, the negotiating teams from
labour and management return to the bargaining table and continue to negotiate. This cycle
can be repeated

several times. If no agreement can be reached between the two teams, negotiations are said to
have "broken down," and several options become available.

Mediation is usually the first alternative when negotiations are at a stalemate. The two parties
agree voluntarily to have an impartial third party listen to the proposals of both sides. It is the
mediator's job to get the two sides to agree to a settlement. Once the mediator understands
where each side stands, he or she makes recommendations for settling their differences. The

22
mediator merely makes suggestions, gives advice, and tries to get labour and management to
compromise on a solution. Agreement is still voluntary at this point. The mediator has no
power to force either of the parties to settle the contract, though often labour and
management do come to agreement by using mediation.

If mediation fails to bring about a settlement, the next step can be arbitration, which can be
either compulsory or voluntary. Compulsory arbitration is not often used in labour-
management negotiations in the United States. Occasionally, however, the federal
government requires union and management to submit to compulsory arbitration. In
voluntary arbitration, both sides agree to use the arbitration process and agree that it will be
binding. As in mediation, an impartial third party serves in the arbitration process. The
arbitrator acts as a judge, listening to both sides and then making a decision on the terms of
the settlement, which becomes legally binding on labour and management. Ninety percent of
all union contracts use arbitration if the union and management can't come to agreement
(Boone and Kurtz, 1999).

Sources of Power

If the collective bargaining process is not working as a way to settle the differences between
labour and management, both sides have weapons they can use to bolster their positions. One
of the most effective union tactics is the strike or lockout. While on strike, employees do not
report to work and, of course, are not paid. Strikes usually shut down operations, thus
pressuring management to give in to the union's demands. Some employees, even though
allowed to belong to unions, are not allowed to strike. Federal employees fall into this
category. The law also prohibits some state and municipal employees from striking.

During a strike, workers often picket at the entrance to their place of employment. This
involves marching, carrying signs, and talking to the media about their demands. The right to
picket is protected by the U.S. Constitution as long as it does not involve violence or
intimidation.

Problems sometimes arise during strikes and picketing when management hires replacement
workers, called scabs or strikebreakers, who need to cross the picket line in order to do the
jobs of the striking workers.

The boycott is another union strategy to put pressure on management to give in to the union's

23
demands. During a primary boycott, not only union members but also members of the general
public are encouraged to refuse to conduct business with the firm in dispute with the union.
Though it is rarely done, management may use the lockout as a tactic to obtain its bargaining
objectives. In this situation, management closes down the business, thus keeping union
members away from working. This puts pressure on the union to settle the contract so
employees can get back to their jobs and receive their wages.

Management sometimes uses the injunction as a strategy to put pressure on the union to give
in to its demands. An injunction is a court order prohibiting something from being done, such
as picketing, or requiring something to be done, such as workers being ordered to return to
work.

Grievance Procedures

Once a collective bargaining agreement is settled and a union contract is signed, it is binding
on both the union and management. However, disagreements with contract implementation
can arise and violations of the contract terms can occur. In these cases, a grievance, or
complaint, can be filed. The differences that must be resolved are usually handled through a
step-by-step process that is outlined in the collective bargaining agreement. The grievance
procedure begins with a complaint to the worker's immediate supervisor and, if unresolved at
that level, moves upward, step by step, to higher levels of management. If no resolution is
found at any of these levels, the two parties can agree to have the grievance submitted to an
impartial outside arbitrator for a decision binding to the union and management.

Collective bargaining is a successful way for workers to reach their goals concerning
acceptable wages, hours, and working conditions. It allows workers to bargain as a team to
satisfy their needs. Collective bargaining also allows management to negotiate efficiently
with workers by bargaining with them as a group instead of each one individually. Though
traditional bargaining can be negative and adversarial, it does produce collective bargaining
agreements between labor and management. Partnership bargaining can lead to increased
understanding and trust between labor and management. It is a positive, cooperative approach
to collective bargaining that also culminates in contracts between labor and management.

Levels of Collective Bargaining

Collective bargaining operates at three levels:

24
 1. National level
2. Sector or industry level

3. Company/enterprise level 


Economy-wide (national) bargaining is a bipartite or tripartite form of

negotiation between union confederations, central employer associations and
government agencies. It aims at providing a floor for lower-level bargaining on
the terms of employment, often taking into account macroeconomic goals


 Sectoral bargaining, which aims at the standardization of the terms of

employment in one industry, includes a range of bargaining patterns. Bargaining

may be either broadly or narrowly defined in terms of the industrial activities
covered and may be either split up according to territorial subunits or conducted

nationally. 


Company/enterprise level, this bargaining level involves the company and/or

establishment. As a supplementary type of bargaining, it emphasizes the point that

bargaining levels need not be mutually exclusive. 


CHAPTER: 5

25
STRIKE AND LOCKOUT AS A METHOD OF COLLECTIVE
BARGAINING

The Right to Strike as Method of Collective Bargaining

The right to strike is labors’ ultimate weapon and in the course of the century, it has emerged
as the inherent right of every worker. It is an element, which is of the very essence of the
principle of collective “Bargaining”5. In Conway v Way6 the Court adopted the phrase
“industrial warfare” where the Court described ‘strike’ and ‘lock-outs’ as the ‘weapons
allowed by the law’. The strike is the antithesis of lockout. It is regarded as a powerful
weapon of collective bargaining and is generally fraught with a possibility of industrial
dislocation with all its attending hardships and evils, the occurrence of which is regarded as
one of the powerful levers to bring about agreements. The trade unions with sufficient
memberships strength are able to bargain more effectively with the management than
individual workmen. The bargaining strength would be considerably reduced if it is not
permitted to demonstrate by adopting agitational methods such as “work to rule”,
absenteeism”, “sit down strike” and “strike”. Collective Bargaining for securing
improvement on matters like wages, basic pay, dearness allowance, bonus, provident fund,
gratuity, leave, holidays and other terms of service and conditions of labour, is the primary
object of trade unions and when demands like this are put forward, a strike thereafter may
justifiably be resorted to in an attempt to induce the employer to agree to the demands or at
least to open negotiations. Sometimes the threat of strike is enough to make the employer
concede to the demands of the union.

But the right to strike is not absolute and the industrial jurisprudence has subjected it to
certain limitations.7In Syndicate Bank v K.Umesh Naik8, Sawant, J stated the law in the

5
AP State Road Transport Corporation Employee’s Union v APSRTC (1970) Lab IC 1225 (AP)

6
Conway v Way (1909) AC 506 (HL)


7
B.R.Singh v Union of India (1990) Lab IC 389
 Syndicate Bank v K.Umesh Naik, AIR 1995 SC 319

8
Syndicate Bank v K.Umesh Naik, AIR 1995 SC 319

26
following words-

“The strike, as a weapon, was evolved by the workers as a form of direct action, during their
long struggle with the employers. It is essentially a weapon for the last resort being an
abnormal aspect of the employer employee relationship and involves withdrawal of labour
disrupting production, services and the running of the enterprise. It is a use by the labour of
their economic power to bring the employer to see and meet their point of view over the
dispute between them. The cessation or stoppage of works whether by the employee or the
employer is detrimental to the production and economy and the well being of the society as a
whole. It is for this reason that the industrial legislation while not denying the right of
workmen to strike, has tried to regulate it along with the right of the employer to lock out and
has also provided a machinery for peaceful investigation, settlement, arbitration, adjudication
of the disputes between them. The strike or lock-out is not to be resorted to because the
concerned party has a superior bargaining power or the requisite economic muscle to compel
the other party to accept its demand. Such indiscriminate use of power is nothing but
assertion of the rule of ‘might is right’. Its consequences are lawlessness, anarchy and chaos
in the economic activities, which are most vital and fundamental to the survival of the
society. Such action, when the legal machinery is available to resolve the dispute, may be
hard to justify. This will be particularly so when it is resorted to by the section of the society,
which can well await resolution of the dispute by the machinery provided by the same. The
strike or lock-out, as a weapon, has to be used sparingly. For redressal of urgent and pressing
grievances when no means are available or when available means have failed to resolve it. It
has to resort to, compelling the other party to the dispute to see the justness of the demand. It
is for this reason that the industrial legislation such as the Act places additional restriction on
strikes and lock outs in public utility services.”

Lockouts as Weapon of Collective Bargaining

Lockout can be described as the antithesis of a strike. Just as strike is a weapon available to
the employee for enforcing their industrial demand, a lock out is a weapon available to the
employer

to persuade by a coercive process the employee to see his point of view and to accept his
demands. In the struggle between the capital and labour the weapon of strike is available to
labour and is often used by it, so is the weapon of lock out available to the employer and can

27
be used by him.

Lock out was comprehensively defined in the repealed Trade Disputes Act, 1929 as “closing
of place of employment or suspension of work or refusal by an employer to continue to
employ any number of persons employed by him in consequence of a dispute done with a
view to compelling those persons or to aid another employer in compelling persons employed
by him to accept terms or conditions of or affecting employment”. This definition was based
on the definition of lock out in the English statute. The present definition omits the words
“when such closing, suspension or refusal occurs in consequence of a dispute and is intended
for the purpose of compelling those persons or to aid another employer in compelling persons
employed by him employed by him to accept terms or conditions of or affecting
employment” from the old definition. The deletion of these words has left the definition only
a mutilated and truncated version of the concept of lockout. The Court has described the
consequences of construing the definition of lock out as it stands without reading the effect of
the deleted words in it. “If an employer closes the place of employment or suspends work on
his premises, lock out would come into existence. A flood may have swept away the factory;
a fire may have gutted the premises ; a convulsion of nature may have sucked the whole place
underground, still if the place of employment is closed or the work is suspended or the
employer refuses to continue to employ his previous workers, there would be a ‘lock out’ and
the employer would find himself exposed to the penalties laid sown in the Act.”9. The High
Court then read the effect of the deleted words into the definition and observed that where the
shut down, suspension or refusal is used a weapon corresponding to a strike, then only it will
be a lock out.

Section 2(1) of the Industrial Disputes Act, 1947 defines a “lock out” as meaning the closing
of a place of employment, or the suspension of work, or the refusal by an employer to
continue to employ any number of persons employed by him. A lockout is the closure of an
industrial undertaking because of the existence of or apprehension of an industrial dispute,
violence and damage to property. It is the suspension of employment in so far as the
employer refuses to give work to the workmen until they yield to his demand or withdraw the
demands made on him; or because of closing down of a place of employment and the

9
Sri Ram Chandra Spinning Mills v Province of Madras AIR 1956 Madras 241.

28
suspension of the work.

A lock out is used with some intention, i.e., to coerce or force workmen to come to terms.
The lockouts, thus necessarily involve an overt act on the part of the employer and an
element of motive ill-will. In the absence of this overt act, the temporary suspension of work
would not amount to a lock out and the workmen cannot claim wages for the period of
closure.10 The consequences of strikes and lock outs are detrimental to industry as a whole
and to the economy of the country because they lead to loss of production.

The Indian Law recognizes strike and lockout as methods of collective bargaining.

Critique of Supreme Court’s ruling on strike as a collective bargaining weapon

The right to strike is organically linked with the right to collective bargaining and will
continue to remain an inalienable part of various modes of response/expression by the
working people, wherever the employer-employee relationship exists, whether recognized or
not.

As the Supreme Court has declared in Gujarat Steel Tubes v. G. S. T. Mazdoor Sabha11:

"The right to union, the right to strike is part of collective bargaining and, ..... the right of the
labour to pressure ...... the capital, to negotiate and render justice are processes recognised by
Industrial Jurisprudence ........ Industry, represented by intransigent managements, may well
be made to reel into reason by the strike weapon and cannot then squeal or well (sic) and
complain of loss of profits or other ill effects but must negotiate or get a reference made.

The Court said that part IV of the Constitution read with Art. 19, "sows the seeds of this
bargaining Jurisprudence."

If the Directive Principles of State Policy enumerated under part IV of the Constitution when
read with Art.19 (which guarantees to the Indian citizens fundamental rights like freedom of

10
Shree Narayana Steel Rolling Mills v Their Workmen, 52 FJR 1978, 169

11
(1980) 1L.L.J. 137 (S.C.)


29
speech and expression, freedom of association, etc.)" "sow the seeds of ....... bargaining
Jurisprudence" then, the relative questions would be: Does the Constitution recognize the
right to strike? Does the right to form unions12 guaranteed under the Constitution carry with it
the concomitant right to achieve the purpose for which the union is formed? In other words, if
the workers are guaranteed the right to form trade unions, should such trade unions be
entitled to engage in collective bargaining and to exercise, if necessary, the right to strike so
that the raison' d' etre for the establishment of trade unions serves its purpose. The very
object of a trade union is to substitute collective bargaining for individual bargaining and
collective bargaining may be meaningless without the right to strike. A trade union without
the right to strike is a "poor" and "weak" trade union indeed. According to G. D. H. Cole:

Workers are required to resort to strike because without a strike they cannot secure a
rectification of the terms of employment imposed upon them because basically there is no
equality between them and their employers. They always appear to be in the wrong in the
sense of committing a breach of contract. But that is inevitable in the situation in which they
are placed.

However, when the Supreme Court was presented with the same question (formulated
slightly differently)-whether the right to form a union would carry with it the concomitant
right to collective bargaining and strike, the Supreme Court answered in the negative, in All
India Bank Employee's Association v National Industrial Tribunal13 by ruling: "on the
consideration of the Articles (19(1) (c))........ we have reached the conclusion that even a very
liberal interpretation of Sub- clause (c) of clause (1) of Article 19 cannot lead to the
conclusion that the trade unions have a guaranteed right to an effective collective bargaining
or to strike either as a part of collective bargaining or otherwise."14

It is not clear whether the Supreme Court by observing in Gujarat Steel Tube that the

13
A.I.R. 1962 S.C. 171.


14
Id. at 181. See Radhe Shyam Sharma v. P.M.G. Nagpur, AI.A. 1965S.C.311 at 313; Ghosh v. Joseph, ALA. 1963 S.C. 813
(No fundamental right to strike); Kameshwar Prasad v. State of Bihar. ALA. 1962S.C. 1166at 1172(No fundamental right to
strike)

30
Directive Principles when read with Art.19 (which guarantees, inter alia, to the citizens the
fundamental right to form an association) "sow the seeds of........ bargaining Jurisprudence"
has sought to elevate the right to strike to the level of a fundamental right in the face of the
decisions to the contrary rendered by the same Court earlier. There is however, a categorical
observation by the Supreme Court in B.R. Singh and others v. Union of India that right to
strike is not a fundamental right. The Court has said: "Though (right to strike) is not raised to
the high pedestal of a fundamental right, it is recognised as a mode of redress for resolving
the grievances of workers."

31
CHAPTER: 6

COLLECTIVE BARGAINING AGREEMENT

The agreement arrived at between the representatives of a trade union and the employer is
called as collective bargaining agreement. Ludwig Teller has broadly defined collective
bargaining agreement as “an agreement between a single employer or an association of
employers on the one hand and a labour union upon the other, which regulates the terms and
conditions of employment.” The term ‘collective’ as applied to collective bargaining
agreement will be seen to reflect the plurality not of the employers who may be parties
thereto, but of the employees therein involved. Again the term collective bargaining is
reserved to mean bargaining between an employer or group of employers and a bona fide
labour union. Bargaining which involves a company dominated union is assumed to be
merely a disguised form of individual bargaining. As per Teller the Collective Bargaining
agreement bears in its many provisions the imprints of decades of activity contending for
labour equality through recognition of the notions underlying collective negotiation. Indeed,
in the collective bargaining agreement is to be found a culminating purpose of labour
activity.15

Collective agreements may be written or unwritten. Whatever be the form of agreements

these may be looked upon as legislative acts setting forth the rules governing employment
relationship for a specified period of time. However, these laws are private in nature. Despite
many of the laws passed by the legislature, these agreements are of greater importance to the
workers in majority of cases. The economic strength of the parties is supposed to be the main
sanction behind a collective agreement. If a party under the agreement does not agree to
abide by and fulfill the commitments, the other party in order to meet its obligations can force
him by resorting to economic pressures to do so.

Validity of Collective Bargaining Agreements

The collective bargaining agreements may have been made subjects of litigation regarding

15
Teller, 476

32
their validity, enforceability and interpretation. The usual case involves where an employee
files a suit in pursuant to the agreement to recover damages or assets his seniority rights
guaranteed to him in the agreement. But there are other ways also whereby the problem is
raised. For example, a suit may be filed by the labour organization, an employer or
employer’s association for specific performance or to claim damages or to seek the
enforcement of an arbitration clause stipulated in the agreement. If there is an alleged
violation of the agreement it is sometimes sought to enjoin a strike or lock-out called for the
purpose or sometimes the labour organization is the plaintiff seeking to enjoin a lock-out in
breach of the agreement or failure to hire union employees etc. Where the legality of the
agreement is designed to be destroyed, the validity of collective bargaining agreement is also
tested in this proceedings. As for example, to secure a closed shop or to regulate an entire
industry by prescribing rules governing competition etc.

Duration of Collective Bargaining Agreements

The durations of collective bargaining agreements vary widely. Unions generally favour
shorter contracts, while managements favour longer ones. In the United States many of the
contracts are for a period of one to three or more years, with options to renew. In the United
Kingdom, “open end” contracts, which can be negotiated on notice at any time, are the rule.
In the Scandinavian countries, one year contracts with renewal clauses are usual.

The position in India is not clear. A study of 114 contracts in 1961 by the Employers
Federation of India showed that a majority of them were for one to five years, with a strong
trend in favour of longer terms. (This may perhaps be evidence of control by employer or of
employer’s superior bargaining power or both). The long-term contract has two advantages
for management over the short-term one:

(1) It imparts stability to labour-management relations, and


(2) It helps in planning production and expansion programmes based on fixed labour costs

(one of the highest items in the budgets of many industries).

Contents or Subject Matter of Collective Bargaining Agreements

The subjects for collective bargaining are determined by the parties in some countries and by

33
law in others. In Denmark, Germany, Italy, Norway, Sweden, Switzerland, the United
Kingdom and

the United States, the parties determine their subjects freely (of course within legal limits). In
Brazil, Columbia, Equador and some other Latin American Countries the law specifies that
every contract must include clauses regulating wages, hours, rest periods, holidays, the
duration of the agreement, the procedure for its extension. In France, every national
collective contract must contain provisions on freedom of employees (with particular
reference to the prohibition of discrimination on grounds of membership in any particular
union), length of notice, and organization of apprenticeship and training. In Canada, every
contract must contain a grievance procedure.16

In India the selection of subjects, while it is for the parties to decide, is nevertheless rather
narrowly circumstanced by law. For example, the negotiators of a contact must always keep
in mind the provisions of the Factories Act, 1948, the Industrial Employment (Standing
Orders) Act, 1946, the Minimum Wages Act, 1948 and the Payment of Wages Act, 1936.
These deal with many subjects such as safety precautions, health measures, amenities,
conditions of employment, retrenchment must be carried out, rationalization must be
undertaken, and disciplinary proceedings must be handled.

Some contracts are short and deal with a few matters, while others are elaborate and deal with
many. Usually all contracts in India contain most or all of the following clauses:

(1) A preamble stating the positions of the parties; 


(2) Recognition by the employer of the union as sole bargaining agent and of its right

to 
 organize the workers; 


(3) Recognition of the right of management to carry on its normal activities and meet

its 
 responsibilities; 


16
ILO, Collective Bargaining 46-47

34
 (4) Wages, bonus and dearness allowance; 


(5) Grades, job classification and job evaluation; 


(6) Hours of work, holidays, leave and overtime; 


(7) Dismissal, discharge, termination and retirement from service in so far it is not

covered by 
 the company’s standing orders; 


(8) Medical benefits, provident fund, pension and gratuity; 


(9) Joint machinery for the efficient and smooth functioning of the industry, such as

a joint production committee, a joint labour relations committee, a job evaluation

committee, or a discipline, safety and welfare committee; 


(10) Grievance procedure; 


(11) No-strike clause, and an undertaking that disputes will be settled through mutual


 consultation; and 


(12) The duration and termination of the contract. 


The signing of the contract makes a great impression on the rank and file of the union. “ Its
formal language is the mark of its significance and...a guarantee that the management will
carry out its pledged word. It strengthens the position of the union in the eyes of the
members, and it provides basis for a continuing and dignified relationship between the
management and the employers”.17

Enforcement of Collective Bargaining Agreements

The enforcement of bargaining contracts depends in some countries on the good faith of the

17
Mary Sur, Supra Note 1 at 107


35
parties and in others, on that, plus the law. In the United Kingdom, such contracts are called
“gentlemen’s agreements”. To enforce them in a court of law, workers must rely on their
individual contracts with their employer, which may in some cases incorporate the larger
agreement. In a great many countries of Europe, Latin America and Asia, the effects of the
contract are regulated by special legislation. They can then be enforced in a court of law,
either by the union or by the individual worker, through an action for damages for breach of
contract. Scandinavian countries, Germany, Ireland and some Latin American countries have
established special courts to enforce the contracts on the grounds that procedure in ordinary
courts is long and costly, that delay may result in a strike and to secure a quick remedy. The
actions here must usually be brought by the unions; but in some cases individuals may be
allowed to start proceedings.18

In India, the collective bargaining agreements can be enforced under section 18 of the
Industrial Disputes Act, 1947, as a settlement arrived at between the workers and the
employers. The appropriate government may refer the dispute over a breach of contract to a
labour court or to an industrial tribunal.

18 ILO, Collective Bargaining 71-72

36
CHAPTER: 7

I.L.O CONVENTIONS ON COLLECTIVE BARGAINING

India is a founder member of the International Labour Organization, which came into
existence in 1919. A unique feature of the ILO is its tripartite character. The membership of
the ILO ensures the growth of tripartite system in the Member countries. At every level in the
Organization, Governments are associated with the two other social partners, namely the
workers and employers. All the three groups are represented on almost all the deliberative
organs of the ILO and share responsibility in conducting its work.

The principal means of action in the ILO is the setting up the International Labour Standards
in the form of Conventions and Recommendations. Conventions are international treaties and
are instruments, which create legally binding obligations on the countries that ratify them.
Recommendations are non-binding and set out guidelines orienting national policies and
actions.

Specific features of Conventions

Conventions have a number of specific features, which can be grouped under four main
ideas:

1. Conventions are adopted within an institutional framework. Thus, the adoption of

Conventions does not follow the type of diplomatic negotiation which is usual in
the case of treaties. They are rather prepared in discussions in an assembly that
has many points in common with parliamentary assemblies. This also partly
explains the fact that unanimity is not necessary for the adoption of Conventions.
For the same reason, only the International Court of Justice can interpret the

37
 Conventions. The revision of Conventions is made only by the General
Conference, which is the legislative body of the Organization.

2. The International Labour Conference, which adopts Conventions, is constituted by

representatives of governments, employers and workers, each delegate being

entitled to vote individually. 


3. A two-thirds majority is sufficient for the adoption of a Convention, and

governments should submit the Convention to their competent authorities for
ratification, i.e. as a rule to their parliaments. Also, the governments have the
obligation, when requested, to supply reports on various issues related to
Conventions.

4. Some Conventions include flexibility clauses, because they are generally directed
towards countries with very different economic, social and political conditions, as
well as different constitutional and legal systems. The flexibility clauses comprise
options regarding the following:

a) Obligations: possibility of choosing, at the time of ratification, by means

of formal declaration, the extent of the obligations undertaken. (for .e.g.
Social Security Convention, No. 102)
b) Scope: Governments may decide for themselves, subject to certain
consultations, what the scope of the Convention shall be (for. e.g.
Conventions of minimum wage fixing machinery, Nos. 26 and 29), or they
may be permitted to exclude certain categories of persons or undertakings
(for e.g. Conventions on night work, Nos.41 and 89), or the definitions of
persons covered may be based on a specified percentage of the wage
earners or population of the country concerned (for e.g. many social
security Conventions), or exceptions are allowed for a certain part of the
country (Various types of Conventions, for e.g. Nos. 24, 25, 62, 63, 77, 78,
81, 88, 94, 95, 96 etc.), or governments may themselves define a certain

38
 branch, industry or sector (for e.g. Weekly rest Convention, No. 106);
c) Methods: State which ratifies a Convention shall take such action as may
be necessary to make effective the provisions of such Convention, custom,
administrative measures or, in certain circumstances, collective
agreements.

Core Conventions of the ILO

The eight Core Conventions of the ILO (also called fundamental/human rights conventions)
are:

1. Forced Labour Convention (No. 29)

2. Abolition of Forced Labour Convention (No.105)

3. Equal Remuneration Convention (No.100) 


4. Discrimination (Employment Occupation) Convention (No.111) 
 (The above

four have been ratified by India).

5. Freedom of Association and Protection of Right to Organised Convention (No.87)

6. Right to Organise and Collective Bargaining Convention (No.98)

7. Minimum Age Convention (No.138)

8. Worst forms of Child Labour Convention (No.182) 
 (These four are yet to be

ratified by India) 


ILO Conventions on Collective Bargaining


 There are several other ILO Conventions and Recommendations that relate to

collective 
 bargaining. These are: 


39
. the Right to Organise and Collective Bargaining Convention, 1949 (No. 98); 


. the Collective Agreements Recommendation, 1951 (No. 91); 


. the Voluntary Conciliation and Arbitration Recommendation, 1951 (No. 92); 


. the Labour Administration Convention, 1978 (No. 150); 


. the Labour Administration Recommendation, 1978 (No. 158); 


. the Labour Relations (Public Service) Convention, 1978 (No. 151); 


. the Labour Relations (Public Service) Recommendation, 1978 (No. 159); and 


. the Collective Bargaining Recommendation, 1981 (No. 163). 
 In this chapter, we will

discuss three main conventions on collective bargaining. Which are as follows:


 Freedom of Association and Protection of the Right to Organize Convention,

1948 (No. 87) 


Collective bargaining and social dialogue

. Collective bargaining is an important form of social dialogue. Institutions for social

dialogue and collective bargaining help protect the fundamental rights of workers,
help provide social protection and promote sound industrial relations. Social dialogue,
in turn, is an important part of good governance. Because social dialogue involves the
social partners (employers’ and workers’ organizations) it further encourages
accountability and participation in decisions that affect the lives of all society. These
factors directly contribute to better government.
. The ILO defines social dialogue to include “all types of negotiation, consultation or
simply exchange of information between representatives of governments, employers
and workers”, and involves “issues of common interest relating to economic and

40
 social policy.” This definition brings together the elements of various understandings
of social dialogue into one inclusive concept. Convention No. 154 and
Recommendation No. 163 acknowledge that information, consultation and
negotiation are inter-linked and reinforce each other. While focusing on negotiations,
both highlight the importance of a common information base for meaningful
negotiations, and the role of consultation in deciding measures to encourage and
promote collective bargaining.
. From the ILO perspective, collective bargaining is an important way for workers,
employers and their organizations to reach agreement on issues affecting the world of
work. While collective bargaining can often be an adversarial process, it should better
be used to build trust between the parties. This trust can be reinforced through
dialogue which can continue after bargaining ends. Solutions that are built on trust
and enjoy the genuine support of both sides are more likely to be respected. This is
due to the sense of participation and ownership inherent in the process. As a result,
unnecessary disputes, and disruptions through industrial action, can more easily be
prevented.
. The practical means that can be used to develop effective collective bargaining as set
out in Convention No. 154 and Recommendation No. 163 necessarily promote social
dialogue. In so doing they help to develop a broader culture of dialogue, reinforcing
better governance, participation and accountability.

41
CHAPTER: 8

EVOLUTION OF INDUSTRIAL JURISPRUDENCE IN INDIA

The evolution of Industrial Jurisprudence in India can be traced back to the period of post
Independence. Before the Independence, the industrial jurisprudence existed in a rudimentary
form. The paramount concern of the Pre-independence industrial jurisprudence was the
amelioration of the working condition of the workers at the factories. There was hardly any
deal with the social justice to the working class. It was only after the commencement of our
Constitution, that the adequate provisions for the social justice to the workers were inserted.
The aspect of industrialization in India was based on the program of planning, which was
accepted after thirties. It is important to take into consideration that the plantation industry of
Assam was the first to attract the industrial legislation. The situation there was that the
employers exercised hard practices against the employees. The employees were not allowed
to leave the tea gardens. A number of Acts were passed from 1863 onward, but they only
protected the interests of the employers. Some other Acts were also passed to regulate the
condition. But the Workmen’s Compensation Act, 1923 was the landmark Act.

Indian Constitution and Social Justice : Industrial Jurisprudence was not in a much

42
developed form before the commencement of the Constitution of India. Before the
Independence, the paramount concern of the Government was to ameliorate the condition of
the factory workers. It was after the commencement of the Constitution that the paramount
concern of the Government shifted towards the social justice for the labourers, who
constituted the bulk of the population. Bhagwati J., in a landmark case opined that concept of
justice does not emanate from the fanciful notions of any particular adjudication but must be
founded on a more solid foundation19. Justice Gajendragadkar opined that “the concept of
social and economic justice is a living concept of revolutionary import; it gives sustenance to
the rule of law and meaning and significance to the idea of welfare state”20. The Indian
Constitution also enshrines the idea of social justice as one of the objectives of the State.

CHAPTER: 9

COLLECTIVE BARGANING IN INDIA & IT’S POSITION

Collective Bargaining in India has been the subject-matter of industrial adjudication since
long and has been defined by our Law Courts. In Kamal Leather Karamchari Sangathan v.
Liberty Footwear Company21 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".

According to the Court, the Industrial Disputes Act, 1947, seeks to achieve social justice on
the basis of colIective bargaining. In an earlier judgment in Titagarh Jute Co. Ltd. v. Sriram
Tiwari22 the Calcutta High Court clarified that this policy of the legislature is also implicit in
the definition of 'industrial dispute'.

In Ram Prasad Viswakarma v. Industrial Tribunal23 the Court observed that, "it is well

19
Muir Mills Ltd. v. Suti Mill Mazdoor Union, (1955 1 LJJ 1 (SC)

20
State of Mysore v. Workers of Gold Mines, AIR 1958 SC 923

21
AIR 1990 SC 247


22
(1979) Lab I.C. 523 (Cal)]

23
(1961) I LL.J 504


43
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.”

In Bharat Iron Works v. Bhagubhai Balubbai Patel24it was held that 'Collective bargaining,
being the order of the day in the democratic social welfare State, legitimate trade union
activities, which must shun all kinds of physical threats, coercion or violence, must march
with a spirit of tolerance, understanding and grace in dealings on the part of the employer.
Such activities can flow in healthy channel only on mutual cooperation between the employer
and the employees and cannot be considered as irksome by the management in the best
interests of its business. Dialogue with representatives of a union help striking a delicate
balance in adjustments and settlement of various contentious claims and issues."

These definitions only bring out the basic element in the concept i.e., civilized confrontation
between employers and employees and the whole process is regulated by statutory
provisions.

Types of Collective Bargaining Agreements in India

Collective bargaining as it is practiced in India can be divided into three classes. First is, the
bipartite agreement drawn up in voluntary negotiation between management and union. The
second type is known as a settlement, while the third type of collective agreement is consent
award. These are discussed below:

Bipartite Agreements: These are most important types of collective agreements because
they represent a dynamic relationship that is evolving in establishment concerned without
any pressure from outside. The bipartite agreements are drawn up in voluntary
negotiation between management and union. Usually the agreement reached by the
bipartite voluntarily has the same binding force as settlement reached in conciliation
proceedings. The implementations of these types of agreements are also not a problem

24
(1976) Lab. I.C. 4 [S.C]

44
 because both the parties feel confident of their ability to reach the agreement. 


Settlements: It is tripartite in nature because usually it is reached by conciliation, i.e. it

arises out of dispute referred to the appropriate labour department and the conciliation
officer plays an important role in bringing about conciliation of the differing view points
of the parties. And if during the process of conciliation, the conciliation officer feels that
there is possibility of reaching a settlement, he withdraws himself from the scene. Then
the parties are to finalise the terms of the agreement and should report back to
conciliation officer within a specified time. But the forms of settlement are more limited
in nature than bipartite voluntary agreements, because they strictly relate to the issues

referred to the conciliation officer. 


Consent Award: Here the negotiation takes place between the parties when the dispute is
actually pending before one of the compulsory ad judicatory authorities and the
agreement is incorporated to the authorities, award. Thus though the agreement is reached

voluntarily between the parties, it becomes part of the binding award pronounced by an
authority constituted for the purpose.

The idea of national or industry-wide agreements and that too on a particular pattern may
appear to be a more ideal system to active industrial relation through collective bargaining,
but the experience of various countries shows that it is not possible to be dogmatic about the
ideal type of collective bargaining, because it largely depends upon the background,
traditions and local factors of a particular region or country.

Collective Bargaining machinery essentially is a reflection of a particular social and political

climate. The history of the trade union movement shows that union are affiliated to one or the
other political parties. As a result most of the trade unions are controlled by outsiders. Critic
says that the presence of outsiders is one of the important reasons for the failure of collective
bargaining in India.25

25
S.N. Dhyani, Trade Union and the right to strike, S. Chand & Co. (Pvt.) Ltd, New Delhi, PP. 374-380.

45
Outsiders in the Process of Collective Bargaining

The Trade Unions Act, 1926, permits outsiders to be the office bearers of a union to the
extent of half the total number of office bearers.26 So, it permits one to be the leader of the
union who does not actually work in the industry. Sometimes a dismissed employee working
as a union leader may create difficulties in the relationship between the union and the
employer.27 Nevertheless, experience shows that outsiders who have little knowledge of the
background of labour problems, history of labour movement, fundamentals of trade unionism
and the technique of the industry and with even little general education assume the charge of
labour union and become the self-appointed custodian of the welfare of workers. The
employers, therefore, have been reluctant to discuss and negotiate industrial matters with
outsiders, who have no personal or direct knowledge of day to day affairs of the industry.

Accordingly employers refuse recognition to the unions which are either controlled by the
politicians or affiliated to a particular political party or controlled by a particular individual.
Government cannot morally compel employers to accord recognition to unions without
driving out the politicians from them. The State must outright ban "outsiders" from the trade
union body. Further, provision for political fund28 by trade unions should be eliminated, since
it invariably encourages the politicians to prey upon them. The National Commission on
Labour has overlooked this aspect. The Commission does not favour a legal ban on non-
employees for holding the union office. It says that without creating conditions for building
up the internal leadership, a complete banning of outsiders would only make unions weaker.
The Commission hopes that internal leadership would develop through their education and
training. Accordingly the Commission suggests proportion of the outsiders and the workers in
a union executive.29 On realizing the problems of outsiders in the union, the Industrial

26
See Section 22 of the Trade Unions Act, 1926,


27
See Report of the National Commission on Labour, (1969), P. 288 


28
See Section-16 of the Trade Unions Act. 1926.

29
id. at P. 291, The Commission has recommended as follows : Where the membership of union is;

( i) below 1,000 the number of outsiders should not be more than 10%

{ii) between 1,000-10,000 ... .... .... ..... ..... ..... ..... ..... 20%

46
Relations Bill, 1988 proposes to reduce the number of outsiders to two only. Another hurdle
in the success of collective bargaining in India, is the absence of a compulsory ‘recognition’
provision in the Act.

Impact of Recognition as Bargaining Agent in Collective Bargaining

In view of the prevailing multi-trade-unionism in the country, recognition of a bargaining

agent has assumed importance. Unfortunately, no attempt has been made at the national level
to either lay down a procedure for recognition of a trade-union as bargaining agent or work
out a procedure. There is no provision either in the Indian Trade Union Act 1926 or in the
Industrial Disputes Act 1947 for the purpose. The Government of India proposed an
amendment in the Trade Union Act in 1950 making recognition of a union compulsory. The
measure however, faced serious opposition and remained unimplemented. The Standing
Labour Committee (l8th Session) and National Commission on Labour favoured a statutory -
provision for the purpose but their recommendations have yet to be accepted. The National
Commission on Labour attached considerable importance to the matter of recognition of
unions and observed as under:

"Industrial Democracy implies that the majority union should have the right to sole
representation, i.e., the right to speak and act for all workers and enter into agreements with
the employer."30

In the absence of statutory provision, the matter is regulated by the Code of Discipline which
was evolved at Nainital session of Indian Labour Conference in 1952. The Code of Discipline
provides for verification of trade-union membership by Central Industrial Relations
Machinery of the Government. Its voluntary character has however, made it ineffective and it
has been found difficult to implement it in view of statutory provisions in the Industrial

Disputes Act.
 At the present not even public sector undertakings are following the Code of

(iii) above l,000 ... .... .... ..... ..... ..... ..... ..... .... ... ...30% (iv) 'the permissible limit for industry -wise unions should be
39
30%
 Report of the National Commission on Labour, (1969)p. 329

30
Report of the National Commission on Labour, (1969)p. 329

47
Discipline and are bargaining with more than one union.

States like Bombay and Madhya Pradesh have, however, given statutory recognition to the
procedure for determination of bargaining agent. Both, Bombay Industrial Relations Act
1946 and Madhya Pradesh Industrial Relations Act, 1960, provide for the determination of
represent- tative union by the Registrar of Representative Unions. Special provisions have
been made for agreements signed by representative unions. In spite of it, the experience
shows that there had been serious opposition to statutory recognition of a union as sole
bargaining agent of the workers of the establishment. Indeed the experience is that wherever
there is a union recognition, representative of rival unions have come together to force the
employer to bargain with them." The fear of retaliation by unrecognized unions has proved to
be the biggest stumbling block in the success of statutory recognition system.

Multi -Unionism

Political orientation of trade unions is the primary reason for multi-unionism. Communal
sentiments, provincial feelings and caste are other major causes for multi-
unionism.31Presence of too many unions in an industry destroys the bargaining strength of
workers. Our labour legislation also permits multi-unionism.32

Multi-unionism adversely affects collective bargaining process. Where there are too many
unions, with whom should management negotiate? Each union may claim recognition. Each
union may present separate charter of demands in a spirit of rivalry. When conflicting
demands are made, it may be impossible to accept any of them. Moreover, if one union is
ready to accept some of the demands, other union may object to them. In this context, it is
difficult to think of any effective collective bargaining process in India.

31
Mrs. P. Chakravarthy, Strike and Morale in Industry, Calcutta. Navana Printing Works, Pvt. Ltd. (1969) PP. 37- 38.


32
See Section-4 of the Trade Unions Act, 1926, permits any seven members to form a union and get registered.

48
Politicization of Trade-Union Movement in India

It is well known that the trade-union movement in India is divided on political lines and
exists on patronage of various political parties. Most of the trade-union organizations have
aligned themselves with a political party with whom they find themselves philosophically
close. It is because of this that the Indian National Trade Union Congress is considered to be
the labour wing of congress (I) whereas H.M.S. is considered to be the labour wing of
Socialist party. Bhartiya Majdoor Sangh pledges its allegiance to B.J.P. and C.I.T.U has the
support of C.P.I. (M). It is also the case with the . AITUC which had started as a national
organization of workers but subsequently came to be controlled by the Communist Party of
India and is now it's official labour wing. Political patronage of trade-unions has given a new
direction to the movement whose centre of gravity is no longer the employees or workmen.
The centre has shifted towards it leadership whose effectiveness is determined by the extent
of political patronage and the consequent capacity to obtain the benefit. This shifting centre
of power is the necessary consequence of political parties search for workers votes, which
they seek by conferring benefits on them. Since the public sector which is really the
instrumentality of the State, has emerged as the biggest employer in this country, the
collective bargaining -between the union patronized by the party-in-power and the employer
has become an important methodology. It is because of this process that agreements
conferring benefits are signed even in those units where financial losses are mounting. It is
also our experience that inspite of wage increase and improved conditions of service, there
has been no corresponding improvement in production or the productivity and most of the
losses are being passed on to the consumers by increasing prices of the products. It is in this
context that Justice Gupta has, in his, "Our Industrial Jurisprudence" made the following
observations:

"If our experience is any guide, it reveals that level of increase in wages etc., (in public sector
undertaking ) is now decided by the Bureau of Public Enterprises which takes into
consideration only the 'Political impact' and 'Consumer resistance' as two dominant factors.
This is the reason why the prices of almost all products of necessity like coal, iron and steel,
cement, sugar etc. have been constantly increasing. A survey of pending and decided
industrial disputes of the last

49
10 years reveals that there was virtually no industrial dispute regarding wage structure or
bonus in any industry of some significance. There are also not many collective bargaining
agreements which have tried to link wages with productivity. Clearly, therefore, the basic
idea of 'sharing the prosperity' which developed because of our commitment to the cause of
'social justice' is no longer current and the expected end-product of the process of 'social
justice" is no longer expected."33

Critical Evaluation

In Indian labour arena we see, multiplicity of unions and inter-union rivalry. Statutory
provisions for recognising unions as bargaining agents are absent. It is believed that the
institution of collective bargaining is still in its preliminary and organizational stage. 34 State,
therefore, must play a progressive and positive role in removing the pitfalls which have stood
in the way of mutual, amicable and voluntary settlement of labour disputes. The labour'
policy must reflect a new approach.

Hitherto the State has been playing a dominant role in controlling and guiding labour-
management relation through its lopsided adjudication machinery. The role of the industrial
adjudicator virtually differs from that of a judge of ordinary civil court. The judge of a civil
court has to apply the law to the case before him and decide rights and liabilities according to
its established laws. Whereas industrial adjudicator has to adjust and reconcile the conflicting
claims of disputants and evolve "socially desirable" rights and obligations of the disputants.35
In deciding industrial disputes the adjudicator is free to apply the principle of equity and good
conscience.

However, it is said that the impact of the attitude of the judiciary towards workers has not
proved conducive to the peaceful industrial relations.36 It is accepted that the end of judicial

33
Justice Gulab Gupta, Our Industrial Jurisprudence, 1987, p.133


34
Dr, B.R. Patil, "Collective Bargaining and Conciliation in India," 12, I.J.I.R. 41 (1976).

35
Anirudh Prasad Singh, "New Dimension of Employer-Employee Relations in Progressive Industrial Society," 9, Lawyer,
164 (1977).

36
See Dr. Ahmedullah Khan, "Judicial Regulation of Industrial Relations" 9, Awards Digest, 177 (Where the author
emphatically discussed the defects of judiciary as far as labour-management relation is concerned.)


50
proceeding is pain and penalties. It cannot solve the problems of industries. Accordingly it is
said that:

"While statutes, rules, regulations, pains and penalties have their place in the ordering of
industry, they do not touch the core of the problems of industrial relations."37 Moreover,
advocates of adjudication contend that as the collective bargaining procedure might end in a
strike or lockout, which implies a great loss to the parties concerned and the country, if for
the sake of industrial peace, the adjudication becomes necessary. But has there been
industrial peace and satisfactory progress since adjudication was adopted after world-war-II?
We do agree that industrial peace can be established by the adjudication for the time being.
But the conflicts are driven deeper and it will retard industrial production. In the absence of
effective collective bargaining the anti – productivity tendencies are bound to appear.

CHAPTER: 10

LAWS RELATING TO COLLECTIVE BARGAINING IN INDIA

As discussed earlier, collective bargaining is a technique by which disputes of employment

are resolved amicably, peacefully and voluntarily by settlement between labour unions and
managements. The method of collective bargaining in resolving the Industrial dispute, while
maintaining industrial peace has been recognized as the bed rock of the Industrial Disputes
Act, 1947. Under the provision of the Act, the settlement arrived at by process of collective
bargaining with the employer has been given a statutory recognition under Section 18 of the
Act.

Under the Act two types of settlement have been recognised:

1. Settlement arrived in the course of conciliation proceeding before the authority.

Such settlements not only bind the member of the signatory union but also non-
members as well as all the present and future employees of the management.
2. Settlement not arrived in the course of conciliation proceedings but signed

37
Kir Kaldy, The spirit of Industrial Relations (1974) P. 58, cited in S.N. Dhyani's op. cit., P.396.

51
 independently by the parties to the settlement, binds only such members who are

signatory or party to the settlement. 
 Section 19 of the Act prescribes the period

of operation inter alia of such a settlement and envisage the continuation of the
validity of such a settlement unless the same is not replaced by another set of
settlement, while Section 29 prescribes the penalty for the breach of such a

settlement. 
 The Industrial Disputes Act, 1947 provides for the appointment of

Conciliation Officers, charged with the duty of mediation in promoting the

settlement of industrial disputes. On a reference to the Conciliation Officer, a
Conciliation Board is constituted consisting of representatives of employees and
employer with the conciliation officer as the chairman. The memorandum of
settlement duly signed by the conciliation officer is to go from one camp to the
other and find out greatest common measure of agreement, to investigate the
dispute and to do all such things as he thinks fit to arrive at a fair and amicable

settlement of the dispute.38


A settlement arrived at by agreement between the employer and the workmen

otherwise than in the course of conciliation proceedings shall be binding on the
parties to the agreement. A settlement comes into operation on such date as is binding
on the parties to the agreement, and for such period as has been agreed upon. Dealing
with the binding nature of settlement Chagla, J has observed that; “Industrial Law
takes no notice of any private settlement or agreement arrived at between parties in
the course of industrial dispute. Such a private agreement belongs to the realm of
contract, it may give rise to contractual rights; it has no sanctions in industrial law and
industrial dispute does not end until a settlement is arrived at which has been given a
binding effect under the provision of S.19 (2) and such settlement can be only arrived
at when conciliation proceedings are held under S.12 of the Industrial Disputes Act,
48
1947”. From this observation, it would be wrong to infer that a private settlement in
respect of an industrial dispute does not end an industrial dispute. In this respect the
following observation of chief Justice Chagala are relevant, “But when parties do
arrive at a settlement, the law gives to it a greater sanctity than it gives to an award

38
Royal Calcutta Golf Club Mazadoor Union v. State of west Bengal, AIR 1956 Cal 550. 


52
 and therefore , the industrial law does not contemplate any interference with the
finality of a settlement and it compels the settlement to run on for the period
mentioned in the settlement itself and neither party is permitted to challenge that
settlement during its duration.”39

CHAPTER: 11

PROBLEMS RELATING TO COLLECTIVE BARGAINING IN INDIA

The collective bargaining scene in India is not very encouraging. The major emphasis of both
union and employers is to settle the disputes through adjudication rather than sorting out the
issues among themselves.

Whatever bargaining takes place, it is limited to large plants only. Smaller organisations
generally do not prefer this form of handling the issues.

As discussed in the previous chapter, several factors are responsible for this state of affairs.
These are listed below:

1. Due to the dominance of outsiders in trade unionism in the country, there is

multiplicity of unions which are weak and unstable, and do not represent majority of
the employees. Moreover, there are inter-union rivalries, which further hinder the

39
Poona Mazdoor Sabha v. G.K.Dhuta, AIR b1956. Bom. 743.

53
 process of collective bargaining between the labour and the management.
2. Since most of the 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.
3. There is a lack of definite procedure to determine which union is to be recognised to
serve as a bargaining agent on behalf of the workers.
4. In India, the law provides an easy access to adjudication. Under the Industrial
Disputes Act, the parties to the dispute may request the Government to refer the
matter to adjudication and the Government will constitute the adjudication machinery,
i.e., labour court or industrial tribunal. Thus, the faith in the collective bargaining

process is discouraged. 


5. There has been very close association between the trade unions and political parties.
As a result, trade union movement has leaned towards political orientations rather
than collective bargaining.

CONCLUSION & SUGGESTIONS

A lot has been said about the development of collective bargaining in India. But in fact,
collective bargaining which is a two way affair, has been used at present only as a one-way
exercise in which the union, as the aggressive partner, makes the demands, and the
management , as the passive partner, derives satisfaction merely by countering the extent to
which it is able to minimize the additional burdens while meeting the union’s demands. There
are not many examples even now where union as well as the management, as equal partners,
have approached the process of collective bargaining with the objective and spirit that
collective bargaining must bring concrete benefit to both the parties.

The following steps should be taken for the success of collective bargaining.

1. Strong Trade Union: A strong and stable representative trade union is essential
for effective collective bargaining. For having such a trade union, workers should
have freedom to unionize so that they can exercise their right of unionization and

54
 form a trade union for the purpose of electing their representatives for collective

bargaining. 
 A weak union not enjoying the support of majority of workers is not

likely to be effective. The management will not negotiate with such a union;
because mutual agreements are not likely to be honoured by a large section of the
labour-force. Moreover, there is always a danger that non-union members may

sabotage it. 


2. Compulsory Recognition of Trade Unions: There must be an acceptable and

recognised bargaining agent. That means that there must be recognised union or
unions to negotiate the terms and conditions of the agreement with the

management. 
 Recognition of trade union has to be determined through

verification of fee membership method. The union having more membership

should be recognised as the effective bargaining agent. A strong, stable and the
most representative union should be recognised by the employers for the purpose
because any agreement with that union will be acceptable to majority of workers
and it will help in establishing sound industrial relations in the organisation.

3. Mutual Accommodation: There has to be a greater emphasis on mutual

accommodation rather than conflict or uncompromising attitude. Conflicting
attitude does not lead to amicable labour relations; it may foster union militancy

as the union reacts by engaging in pressure tactics. 
 The approach must be of

mutual give and take rather than take or leave. The take or leave philosophy is
followed in America where there is contractual labour. As of now this is not the
case in India. So if the union and the management have to look for a long-term
relationship they have to respect each other’s rights.

4. Enactment of Legislation: The State should enact suitable legislation providing

for compulsory recognition of trade union by employers. State has to play a

55
 progressive role in removing the pitfalls which stand in the way of mutual,
amicable and voluntary settlement of labour disputes. The new labour policy must
reflect the new approach and new objectives.

5. Mutual Trust and Confidence: Trade unions and management must accept each
other as responsible parties in the collective bargaining process. There should be
mutual trust and confidence. In fact in any relationship trust is the most important

factor. 
 Management must accept the union as the official representative. The

union must accept the management as the primary planners and controllers of the
company’s operations. The union must not feel that management is working and
seeking the opportunity to undermine and eliminate the labour organisation. The
company management must not feel that the union is seeking to control every
facet of the company’s operations.

6. Efficient Bargaining Mechanism: No ad-hoc arrangements are satisfactory for

the reason that bargaining is a continuing process. An agreement is merely a
framework for every day working relationships, the main bargain is carried on

daily and for this there is a need to have permanent machinery. 


As for machinery being efficient, it has three aspects:

(a) Availability of full information


(b) Selection of proper representatives


(c) Recognition of natural temperament of each other.

7. Emphasis on Problem-solving Attitude: There should be an emphasis upon

problem-solving approach with a de-emphasis upon excessive legalism. Litigation

56
 leads to loss of time and energy and it does not benefit anyone. Therefore the
emphasis is to look for mutually acceptable solutions rather than creating

problems for each other. 
 Lastly, the overall political environment should be

congenial. The political environment should support collective bargaining.

8. Political Climate: For effective collective bargaining in a country, it is important

to have sound political climate. The Government must be convinced that the
method of arriving at the agreements through mutual voluntary negotiations is the
best for regulating certain conditions of employment. The provision for political

fund by trade unions has to be 
 done away with-since it unvariably encourages

the politicians to prey upon the union. Therefore, positive attitude of the political

parties is a must for the promotion of collective bargaining. 
 Such an approach

would help and encourage the development of strong, stable and representative
trade unions, growth of mechanism for the resolution of industrial conflict,

recognition of unions, etc. 


BIBLIOGRAPHY

 BOOKS REFERRED:

1) Bhagoliwal, T.N., Economics of Labour& Industrial Relations, 1989, Sahitya


 Bhawan, Agra. 


2) Goswami, V.G., Labour and Industrial Law, 2004 Central Law Agency, Allahabad.



57
 3) Teller Ludwig, Labour Disputes and Collective Bargaining, Vol I, 1940 Barker
Voorhis& 
 co. INC New York. 


4) Coutinho,V.B, Strike in Industrial Conflict: A Critical and Comparitive Study,

th

 1993, 5 edn. 


th
5) Fred Witney et al; Labour Relations Law, 7 edn 1990. 


6) Boone, Louis E., and Kurtz, David L. (1999). Contemporary Business. Fort Worth, TX:
Dryden Press.


7)Davey, Harold W. (1972). Contemporary Collective Bargaining. Englewood Cliffs, NJ:

Prentice-Hall.

8)Miernyk, William H. (1965). The Economics of Labor and Collective Bargaining. Boston:
Heath.


9)Voos, Paula B., ed. (1994). Contemporary Collective Bargaining in the Private Sector.
Madison, WI: Industrial Relations Research Association.

10)Wray, Ralph D., Luft, Roger L., and Highland, Patrick J. (1996). Fundamentals of Human
Relations. Cincinnati, OH: South-Western Educational Publishing.
 [Article by: PAULA
DEA LEE]

 ARTICLES REFERRED:

1) Right to Strike : An Analysis, B.P.Rath and B.B.Das, IJIR 1999,pg 248-259. 


2) Perspectives On Collective Bargaining In India, LLJ, Vol 1, 2005 p.21-34 


3) “Strikes and Lock outs”, Pankaj and Dharamveer Singh, Lab&IC, Vol 1,2005

 pg12-21. 


58
 WEBSITES:

1. http://www.tradeunionindia.org/miscellaneous/public_rights.htm.
2.
http://echo.ilo.org/pls/declaris/DECLARATIONWEB.DOWNLOAD_BLOB?
 V
ar_DocumentID=1655.
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4. http //www.google.co.in/
5. www.indialaw.com www.lawsofindia.com

 JOURNALS:

1. International Labour Review, Vol. 139 (2000), No.1.

2. G. B. Pai , Labour Law in India, Vol. I.
3. Indian Bar Review, Vol.29, (2002),pp 1-4 Labour Law Journal, Vol I (2005).

59