Trade union and Collective Bargaining

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Trade union and Collective Bargaining? …

Trade union and Collective Bargaining?
-WHAT IS COLLECTIVE BARGAINING ?
-PROCESS OF COLLECTIVE BARGAINING
-ROLE OF TRADE UNIONS
-IMPORTANCE TO EMPLOYEES
-ADVANTAGES OF COLECTIVE BARGAINING
-COLLECTIVE BARGAINING IN INDIA

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  • 1. Presented By:Sandeep Vats TR AD E U N IO N AN DShashank Shekhar C O LLE C TIVE BAR G AIN IN G
  • 2. WHAT IS COLLECTIVE BARGAINING ?• Collective bargaining is  a  process  of  negotiations  between  employers  and  the  representatives  of  a  unit  of  employees  aimed  at  reaching  agreements  that  regulate  working  conditions. • During  the  collective  bargaining  process,  workers  are  represented  through  trade  unions.  The  process  of  collective  bargain  involves  negotiation  and  discussion  between  the  management and trade union.
  • 3. PROCESS OF COLLECTIVE BARGAINING
  • 4. ROLE OF TRADE UNIONS• Recognized  trade  unions  have  the  legal  right  to  bargain  about pay, hours and holidays.• Most agreements by employers to recognize trade unions for  collective bargaining are entirely voluntary.• Employees  and  other  workers  have  the  right  to  be  accompanied at a disciplinary or grievance hearing• Informing and consulting • transfers of business ownership • occupational and personal pension schemes
  • 5. IMPORTANCE TO EMPLOYEES• It increases the strength of the workforce, thereby, increasing  their bargaining capacity as a group.• 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.
  • 6. 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  plays  a  vital  role  in  settling  and  preventing industrial disputes.
  • 7. ADVANTAGES OF COLECTIVE BARGAINING• It avoids unnecessary legal proceedings and the issue is  sorted out of the Court.• It promotes worker’s democracy and worker’s  participation in management.• It eliminates unnecessary expenditure and avoids  bitterness among involved parties.
  • 8. DISADVANTAGES OF COLECTIVE BARGAINING• Increased wages and improved facilities for workers will  indirectly result in high prices for goods and services.• Consumers are affected badly due to price rise; a process  which they do not actively participate in.• In case of failure of the collective bargaining agreement, the  immediate consequence is strike or lock-out
  • 9. COLLECTIVE BARGAINING IN INDIA• COLLECTIVE  BARGANING  in  India  has  been  the  subject  matter  of  industrial  adjudication  since  long  and  has  been  defined  by  our  Law  Courts.• In Karol Leather Karamchari Sangathan v. Liberty Footwear Company  the Supreme Court observed that,“Collective bargaining is a technique  by which dispute as to conditions of employment is resolved amicably  by agreement rather than coercion." • In Ram Prasad Viswakarma v. Industrial Tribunal 4the Court observed that, "It is  well known how before the days of ‘collective bargaining, labour was at a great  disadvantage in obtaining reasonable terms for contracts of service from its  employer. As trade unions developed in the country and Collective bargaining  became the rule, the employers found it necessary and convenient to deal with the  representatives of workmen, instead of individual workmen, not only for the  making or modification of contracts but in the matter of taking disciplinary action  against one or more workmen and as regards of other disputes."
  • 10. SUGGESTIONS FOR IMPROVEMENT IN INDIA• Recognition of trade union has to be determined through  verification of fee membership method. The union having  more membership should be recognized as the effective  bargaining agent. • The State should enact suitable legislation providing for  compulsory recognition of trade union by employers. • The provision for political fund by trade unions has to be  done away with-since it invariably encourages the politicians  to prey upon the union.