Collective bargaining is a negotiation process between employers and employee representatives, primarily through trade unions, to reach agreements on working conditions. It benefits both employees and employers by strengthening worker representation and addressing grievances more efficiently, though it may lead to higher prices for consumers if wages and facilities improve. In India, collective bargaining has evolved within legal frameworks, yet improvements are needed in union recognition and political influence.

3. Presented By:
Sandeep Vats
TR AD E U N IO N AN D
Shashank Shekhar
C O LLE C TIVE BAR G AIN IN G

4. 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.

5. PROCESS OF COLLECTIVE BARGAINING

7. 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

8. 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.

9. 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.

10. 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.

11. 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

12. 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."

13. 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.