Labour Laws

Collective Bargaining

Collective bargaining means negotiation. It is a way in which workers rights are placed to archive industrial democracy. In India, it came a little bit late somewhat end of the 19th century and starting the 20th century. The right to bargain collectively with an employer promotes the independence of workers to influence the establishment in case of mismanagement to work with dignity and liberty. It is an instrument for pursuing external ends as well as constitutional valuable as a practice of self-governance.

politicians on collective bargaining

The Trade Union Leaders meeting the Prime Minister, Shri Narendra Modi, in New Delhi on July 19, 2015.

Definition of Collective Bargaining

According to Dale Yoder, “collective bargaining is a word which is used to elaborate a circumstance, in which the vital condition of employment are determined by bargaining process executed by the representatives of a group of workers on one hand and one or more employers on the other side”.

According to Edwin b. Flippo,  “collective bargaining is a process in which the representatives of a  group of workers and the representatives of the employer’s organization meet and proceed to negotiate a contract or agreement, which determines the scope and nature of employee –employer-union relationship”.

Collective bargaining is a free process in which the representatives of both sides (includes labour and employer ) arrives into an agreement and the process does not stop here, it is a continuous process where new demands, proposals amended or inserted in the contract after collective bargaining.

The International labour organization defines collective bargaining as “ working conditions and terms of employment are subject to negotiation between an employer, or group of employer and the representatives of workers organization and reaching to a formal agreement or contract.

According to WEBB’s: “ collective bargaining as an economic institution, where future trades are decided,  which involves the growth of industry and workers side by side”.

An Indian court on collective bargaining – it is always a subject matter of industrial arbitration from a long period of time and rather defined it in various courts of laws.

In a famous casein Karol leather karamchari Sangathan vs liberty footwear company, the premier court of India (Supreme Court of India) observed that “collective bargaining is a technique where the problems related to the employment and wages is resolved harmoniously by a contract or agreement, not by coercion.

The Constitution of India

The constitution of India 1950 in the chapter on fundamental rights and directive principles of state policy explained the legality of collective bargaining. Article 19 gives every citizen to form an association, which can be interpreted as the permission of organizing the trade union and right to collective bargain, which is the main purpose of that.

Also, state directive principles also can be interpreted as to improve the condition of the labour. In the article 43-A, the state shall ensure the participation of workers in the management which can be seen as a direct cause for the right to collective bargaining.

collective bargaining

Solved Questions on Collective Bargaining

Q. In Collective Bargaining who can participate?

Answer: All employee has the right to participate in matters relating to collective bargaining and any other union’s lawful activities except superintendents, managers, and persons employed through the nomination of the employer.

CASE LAW: In ram  Prasad Vishwakarma vs industrial tribunal, the court observed that “ it was a great disadvantage to the worker to obtain a good environment of work in which worker get their dignity and wages from their employers during the days before collective bargaining concept came into existence. After the establishment of trade union in our country, collective bargaining became a practice and now it is a rule and law.

Features of Collective Bargaining:

  • Collective process.
  • Participation of workers and management in bargaining.
  • Continuous process, it is a continuous process where negotiation does not end.
  • This includes both industrial growth as well as per capita growth of a worker.
  • It promotes an eco-friendly environment in the workplace.

The subject matter of collective bargaining:

  • To decide or carry out a contract which is broad in nature of employment relationship between workers and employers.
  • The execution of the contract. It is the main part of the contract where the terms and condition of various matters are implemented.

Problems of Collective Bargaining

  • The main agenda of both employers and union are to settle the matter through arbitration process between themselves by concluding into a common minimum agreement rather than sorting it arbitrarily. But collective bargaining is limited to large plants and factories. Small factory organization does not come under this rule.
  • In India, laws give an easy way to arbitration. Under the industrial dispute act, the parties related to the dispute can approach the government to refer the matter for arbitration to an Industrial tribunal or labour court

collective bargaining

Q. In Arbitration who pays the dues of court?

Answer: Both parties equally pay all expenses of an arbitrator and, in the case of an arbitration court then both party pays all expenses for the arbitrator and to the court as well.

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One response to “Labour Law Compliance Rules”

  1. Aakla says:

    Thanks for sharing this information with us, I learn about labour-law-compliance-rules from your blog.

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