3. INTRODUCTION
◦ It is referred to as "collective bargaining" when an employer and a group of employees negotiate employment
terms. Typically, a labour union represents employees during collective bargaining.
◦ According to Article 2 of the Collective Bargaining Convention, 1981 (No. 154) of the International Labour
Organisation, “collective bargaining extends to all negotiations which take place between an employer, a
group of employers or one or more employers’ organisations, on the one hand, and one or more workers’
organisations, 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 organisations and workers or workers’ organisations”.
4. OBJECTIVE & AIMS
◦ The aims and objectives of collective bargaining are as
follows:
◦ Keeping industrial democracy alive
◦ Ensuring justice and equality for those from disadvantaged
social and economic backgrounds
◦ Preventing the exploitation of the working class
◦ Satisfying the reasonable demands of workers regarding the
work they have performed
5.
6. ADVANATAGES
◦ Greater bargaining power: When employees bargain collectively rather than individually with their employer,
they are in a stronger bargaining position.
◦ Better working conditions: Employees can bargain collectively with their employer to improve their working
conditions, including health and safety regulations, benefits, and pay.
◦ Increased job security: By negotiating for job protection measures like seniority rights and layoff procedures,
collective bargaining can aid in ensuring workers' jobs are secure.
◦ Reduced conflict: By establishing clear guidelines and procedures for dispute resolution, collective bargaining
can help reduce conflicts between employees and management.
◦ Productivity gains: When workers have a say in decisions that affect their jobs, they are more motivated to do
their best work. As a result, collective bargaining can increase productivity.
7. DISADVANTAGES
◦ Employer costs go up: Collective bargaining may result in higher labour costs for businesses, which could hurt
their profitability.
◦ Loss of adaptability: Collective bargaining agreements may make it more difficult for employers to make
workplace adjustments like modifying employee schedules or job responsibilities.
◦ Strikes and work stoppages: If negotiations fail, employees may decide to go on strike or stop working, which can
be expensive for both employees and employers.
◦ Unequal bargaining power: In some cases, employers may have more bargaining power than employees, which
can lead to agreements that are unfavorable to employees.
◦ Lack of individual negotiation: Lack of individual negotiation may result in less favorable outcomes for high-
performing employees because collective bargaining may not take individual differences in abilities, knowledge,
and performance into account.
8. INDIAN STATUTES OF COLLECTIVE
BARGAINING
◦ The Industrial Disputes Act, 1947:
This establishes a legal framework for the avoidance and settlement of disputes in the workplace between employers
and workers. The negotiation of a contract between employers and employees, or their respective associations, for the
resolution of any industrial dispute, is referred to as collective bargaining in Section 2(p) of the Act.
◦ The Trade Unions Act, 1926:
The rights, obligations, and registration of trade unions in India are covered by this act. According to the act, a trade
union is any association of employees or employers established primarily to control the terms and conditions of
employment. The Act enables trade unions to represent workers' interests in collective bargaining by being
recognised.
9. STAGES OF COLLECTIVE BARGAINING
◦ Forming a union: According to Section 9A of the Trade Unions Act of 1926, a trade union must have at least seven
members. Although registering a union is not required, there are many benefits, including adequate worker
representation, the ability to use funds for specific purposes, protection from civil lawsuits, etc.
◦ Making a charter of demands: At this point, either the employer or the union may start the collective bargaining
process. After several discussions among all of its members, the trade union draughts a charter of demands.
◦ Negotiation: The submission of the charter of demands kicks off the negotiation process. In most cases, the union
is the one who formally proposes modifications to the current collective bargaining agreements during the first
meeting. The management is then given the chance to make counterproposals. They keep doing this until they
reach a consensus. A third party may be chosen as a mediator or arbitrator if they are unable to come to an
agreement on their own.
10. ◦ Forming an agreement: After a successful negotiation, management and the union create a formal written
agreement. A collective bargaining agreement is the name given to this arrangement.
◦ Strikes: If the mediation process is unsuccessful, the union may call a strike. Employees in the public utility sector
are required to give six weeks' notice of a strike under Section 22 of the Industrial Disputes Act, and they have
fourteen days to strike after giving that notice.
◦ Conciliation: When the conciliation officer receives a strike notice, the conciliation process starts. There are two
options available to you in this step. According to Section 4 of the Act, the state government may designate a
conciliation officer for the purpose of investigating, mediating, and promoting settlement during the cooling-off
period. The second option is for the state government to appoint a Board of Conciliation, which shall be made up of
a chairman and either two or four members, in accordance with Section 5 of the Act.
11. ◦ Arbitration or adjudication by industrial tribunals or labour courts:
In the event that the conciliation process is unsuccessful, the parties may choose to arbitrate their dispute or
submit it to a labour tribunal or court for adjudication. The arbitrator's recommendations may be binding on the
parties. A state's labour court or industrial tribunal may decide these disputes, according to Section 7A of the Act.
In order to settle disputes involving matters of national interest, national tribunals may be established under
Section 7B of the Act. The case may be referred by written agreement between the employer and the employees
to a national tribunal, industrial tribunal, or labour court for arbitration or adjudication.
12. COLLECTIVE BARGAINING AGREEMENT
◦ A collective bargaining agreement (CBA), which establishes the terms and conditions of employment for
workers represented by the union, is a binding contract between a labour union and an employer. These
contracts frequently address matters like pay, benefits, working hours, job security, and working conditions.
◦ CBAs are negotiated using the collective bargaining process, which entails both labour union and employer
representatives. An agreement is typically approved by the employer and the union membership after it has
been reached.
◦ Normally, CBAs are negotiated for a set amount of time, like two or three years, after which they must be
renegotiated. The union and employer have the option of revising the current agreement or negotiating a new
one during this renegotiation process.
13. CONCLUSION
In conclusion, collective bargaining is a crucial aspect of labor law that allows workers to
negotiate better wages, benefits, and working conditions with their employers. Through
collective bargaining, workers can have a collective voice that empowers them to improve their
working conditions, and employers can benefit from a more stable and motivated workforce.
Collective bargaining is an important right that should be protected and encouraged, as it helps
to promote fairness and equity in the workplace. However, it is important to strike a balance
between the rights of workers and the needs of employers to ensure that collective bargaining is
a mutually beneficial process.
Editor's Notes
In the event that the conciliation process is unsuccessful, the parties may choose to arbitrate their dispute or submit it to a labour tribunal or court for adjudication.
A state's labour court or industrial tribunal may decide these disputes, according to Section 7A of the Act. In order to settle disputes involving matters of national interest, national tribunals may be established under Section 7B of the Act. The case may be referred by written agreement between the employer and the employees to a national tribunal, industrial tribunal, or labour court for arbitration or adjudication.
