This document is a presentation on "Conditions for successful functioning: Comparative Analysis" presented by Malvade Akanksha Niket. It discusses the concept, origin, definitions, nature, importance and process of collective bargaining. It analyzes essential conditions for successful collective bargaining and compares systems in India, Japan and the United States. It also discusses an important case law on collective bargaining and concludes that certain pre-conditions must be fulfilled for collective bargaining to be effective and successful.

1. A
Presentation On
“Conditions for successful functioning : Comparative Analysis”
Presented By
Malvade Akanksha Niket
Papper – II
“Labour, capital and Law”
LL.M – 1st
Year
Semester – 2nd
Roll No – 43
Department of Law
Shivaji University ,Kolhapur
2017-2018

2. SYNOPSIS
1.Introduction
2. Concept of Collective Barging
3. Origin of Collective Bargaining
4. Definition of Collective Bargaining
5. Nature of Collective Bargaining
6. Importance of Collective Bargaining
7.Collective Bargain Process
8. Essential Conditions For successful collective bargaining
9. Factors for making Collective Bargaining Successful
10. Comparative Analysis
11.Case Law
12.Conclusion

3. 1.Introduction
In all countries of the world collective bargaining has evolved and developed since its
inception. In the U.S.A where collective bargaining started many years ago. It was changed
its course of action from a centralized to a decentralized level. In U.K too the bargaining has
shifted from industrial to the plant level where a shop stewards have become more powerful
in recent year. Collective Bargaining in India has a very different history of collective
barging in European Countries. India, which is still undergoing a process of economic
development, the growth and development of collective bargaining has been very slow. Even
so, bargaining has grown as a method of settlement of industrial dispute and also as method
of determining terms and conditions of employment. During the few years past, new trends
have emerged in the field of collective bargaining in India and they have made themselves
felt especially since 1970. There can be essential only four ways in which terms and
conditions of employment can be determine i.e.
a. Unilaterally dictated by an employer
b. Imposed by Union
c. Regulated by Government
d. Determined by joint negotiation by employer and trade Union.

4. 2.Concept of Collective Barging
Collective Bargaining is that agreement where a wages components of remuneration and
conditions of employment of workmen are settled through a bargain between the
employer and the workmen collectively. Whether reprinted through their union or by
some of them on behalf of all of them. Collective bargaining means barraging between
an employer or group of employers and a bonafide labour union. The Encyclopedia
Britanca defines that Collective bargaining is a negotiation between an employer or
group of employers and a group of working people to reach an agreement on working
conditions.
3. Origin of Collective Bargaining
The phrase collective bargaining is said to have been coined by Sydney and Beatrice
Webb of Great Britain which is said to be the “home of collective bargaining "In India,
the first collective bargaining agreement was concluded in 1920 at the instance of
Mahatma Gandhi to regulate labour management relations between a group of
employers and their workers in the textile industry in Ahmadabad.

5. 4. Definitions of Collective Bargaining
1. According To Encyclopedia of Social Sciences –
“collective bargaining is a process of discussion and negotiation between two parties”
2. According To Richardson
“Collective bargaining takes place when a number of work people enter into a negotiation
as a bargaining unit with an employer or group of employers with the object of reaching
an agreement on the conditions of the employment of the work people.”
5. Nature of Collective Bargaining
1. It is bargaining by the groups
2. Object of collective bargaining is rule making i.e. reaching an agreement by specifying
the rules pertaining employment relationship
3. Main purpose the term and conditions of employment
4. The essence of collective bargaining lies in the readiness of the two parties to dispute to
reach agreement or mutually settlement between two parties

6. 6. Importance of Collective Bargaining
The evolution of mature labour relations characterized by a greater degree of
order and stability and sound wage structure are almost invariably associated with
some measurable aspects of collective bargaining. On the basis o the experience of
advanced countries where collective bargaining is said to have made considerable
advances we identify some indicators of mature collective bargaining practices.
a) A high degree at collective bargaining as measured in terms of the proportion of
workers covered by collective agreements.
b) Qualitative conduct of the parties to collective bargaining both before a situation
warranting negotiations develops and the methods followed at the time of arriving at
agreements.
c) The right priorities assigned to different methods in the agreements and their changing
pattern overtime.
d) A structure of bargaining with emphasis on central bargaining which is purposed to
give some order and stability to labour management relations.

7. 7. Collective Bargaining Process

8. 8. Essential Condition for Collective Bargaining

9. 9.Factors For Making Collective Bargaining Successful

10. 10. Conditions for successful functioning : Comparative Analysis
1. In India –
The collective bargaining in India remained limited in its scope and restricted in its
coverage by a well defined legal structure. In reality, the labour laws systematically
promoted and keep in existence a duality of labour-formal sector workers enjoying
better space for collective bargaining and informal ones with no scope for collective
bargaining.
2. In Japan –
Japan's system of plural unionism facilitates the organization of employees by
increasing union density and bargaining power. In Japan, employees are protected in
undertaking "justified" collective action, including boycotts and partial strikes or slow
downs, and employers are constrained from making permanent replacement or
offensive lockouts. This imbalance in economic weapons costs on their employees for
refusing to agree and thus enjoy greater relative bargaining power. Moreover, the

11. organization of Japanese unions on an enterprise basis and the greater community of
interest between labor and management in Japan means that even if Japanese workers
enjoy greater legal access to economic weapons, they are less likely to need or want to
resort to those weapons to resolve disputes.
3.. In United State of America -
However, in industries where unions are well established, the United States' system of
exclusive representation simplifies representation and bargaining issues and insulates unions
from competition. With respect to economic weapons, the United States restricts employee
collective action while allowing employers greater latitude in economic warfare. American
employees are prohibited from engaging in secondary boycotts and are unprotected in partial
work stoppages or slowdowns, while American employers can permanently replace economic
strikers and undertake offensive lockouts. suggests that, relative to Japanese employers,
American employers can impose greater Finally, and perhaps most importantly from a
practical perspective, in the structure of bargaining American employees enjoy larger labor
organizations that tend to bargain on a multi-enterprise basis. As a result they can better
support local unions in disputes with individual employers

12. 11.Case Law
Dattatraya Gopal Paranjpe Vs. Rashtriya Mill Mazdoor Sangh and ors
Fact – The respondent is a Trade union registered under the Trade Unions Act and
under section 13 of the Bombay Industrial Relations Act, 1946 as a representative
union of the employees in the cotton textile industry in the local area of Greater
Bombay. It is also entered in the approved list maintained by the Registrar under
section 23 of the Bombay Industrial relations Act, 1946. The petitioners who were
required to perform the duties of Organizing Secretaries/Assistant Secretaries, were
paid certain remuneration therefore. Some time in 1984, there was a serious
dissension in the First Respondent Trade Union which resulted in the group consisting
of the three Writ Petitioners and certain others falling into disfavor. The direct
consequence of this was that, although the three Writ Petitioners were candidates for
election to the post of Secretaries, they had to hastily abandon their candidatures and
withdraw their nominations in the face of mounting pressure.

13. Judgment-
(1) The First Respondent Trade Union is an 'industry' within the meaning of section
2(j) of the Industrial Disputes Act, 1947 and amenable to the jurisdiction of the
Courts constituted under the Maharashtra Recognition of Trade Unions and
Prevention of Unfair Labour Practices Act, 1971.
(2) The Writ Petitioners in Writ Petition Nos. 3695, 3697 and 3698 of 1987 are not
'workmen' within the meaning of section 2(s) of the Industrial Disputes Act, 1947.
(3) Consistent with the second finding above, I hold that the Complaints (ULP) Nos.
108, 109 and 110 of 1984 under the Maharashtra Recognition of Trade Unions
and Prevention of Unfair Labour Practices Act, 1971 were not maintainable and
that the Labour Court was justified in dismissing them. In the result, the writ
petitions are dismissed and the rules issued therein are discharged, without any
order as to costs.
•

14. 12.Conclusion
The phrase," collective Bargaining" was coined by Sydney and Beatrice Webb which
implies," collective negotiation of a contract between the managements representatives
on one side and those of the workers on the other."Though it is difficult to give a precise
and universally accepted definition of collective bargaining because it is not only
dynamic and flexible but different parties view it differently and different theories of
collective bargaining study it from different perspective, however, collective bargaining
is the substitution of rule of law for the arbitrary and capricious power of the
management, and has the ability to create new and varied procedures for solving
problems as they arise to vex industrial relations- But to make it more effective and
successful, certain pre-conditions should be fulfilled as discussed in the chapter. The
scope of collective bargaining has been widened over the years and now not only
economic issues are covered but also non-econoroic issues like safety, health, pollution,
family welfare and children's employment, absenteeism, discipline, concession
bargaining,‘ optimum utilization of resources, modernization are successfully negotiated.

15. 13.References
• http://www.yourarticlelibrary.com/hrm/collective-bargaining/essay-on-collective-ba
7
• shodhganga.inflibnet.ac.in/jspui/bitstream/10603/114066/9/09_chapter%202.pdf
• https://mckinneylaw.iu.edu/iiclr/pdf/vol20p1.pdf
• Labour and Industrial Law – By A.K.Singh, R.K.Agrawal and A.K Goyal

16. THANK YOU