Collective bargaining

Collective bargaining consists of negotiations between an employer and a group of employees thatdetermine the conditions of employment. Often employees are represented in the bargaining by a unionor other labor organization. The result of collective bargaining procedure is called the collectivebargaining agreement (CBA). Collective agreements may be in the form of procedural agreements orsubstantive agreements. Procedural agreements deal with the relationship between workers andmanagement and the procedures to be adopted for resolving individual or group disputes. Pre-requisites for Collective Bargaining: Employers recognition of the trade union. Bargaining must precede other measures: Neither party should take any unilateral action. Results of bargaining should be awaited. Employers and employees attitude calls for a change: The workers and the employers should be quite clear that they are not looking for third party intervention in the form of litigation and adjudication. They want to sort out their differences in a peaceful way. Top priority to plant level bargaining: The representatives of the employees must have a firm resolution to have an agreed solution to

their individual matters. Negotiations on differences: Both the parties should negotiate on their points of differences or demands with the sole purpose of making an agreement. Reliance on facts and figures: In order to make the negotiations result into success, the workers and the management agents must rely on facts and figures to substantiate their claims. Giving up unfair labour practices. Written agreement: The final decisions should be incorporated in a written agreement. The agreement should include the validity of the agreed matters as also the frequency of its review. Progress review: Agreements should not be signed and forgotten. During their implementation, regular meetings should be held between the representatives ofboth the parties to watch the progress of the implementation. This way any changes, adjustmentsand amendments can be effected. Respect of agreement: Both the parties must respect the agreement and see that it is implemented in a fair and justifiable manner.

Arbitration provision: The agreement must include an arbitration clause.

Whenever the parties have any differences pertaining to the interpretation of the terms and conditions, the arbitration clause can be resorted to.

The Indian Scenario on CB: In India, trade unions gained prominence much later only after 1900. In 1918, Gandhiji - as the leader of the Ahmedabad textile workers advocated the resolution of conflictthrough CB agreements. But the idea gathered interest only after the Second World War.The Government of that time took steps like setting up of machinery for negotiations, conciliation andarbitration. The trade union movement and also CB agreements became popular after Indian independence. Movingfrom agreements at the plant level, such agreements spread to industries such as chemicals, petroleum,tea, coal, oil and alumini In ports and docks, banking and insurance, collective agreements were arrived at, right at the national level.

Assessment of Collective Bargaining in India:

Other than in Ahmedabad and Mumbai, so far, collective agreements have not made much headway in India. Reasons: Lack of statutory recognition of unions by the country as a whole. Lack of provisions requiring employers and workers to bargain in good faith. The historical problem of lack of trust between the parties Causes of limited success of CB in India: Problems with unions: CB mainly depends on the strength of unions. Weak trade unions cannot initiate strong arguments during negotiations. Not many strong unions in India. Indian unions are bogged down by the problems of: multiplicity, inter and intra-union rivalry, weak financial position and non-recognition. So, unanimous decision is unlikely to be presented at the negotiating table. Problems from Government: The Government has not been making any strong efforts for the development of CB. Imposition of many restrictions regarding strikes and lockouts has removed the `edge` of the CB process. Political interference: Interference of political leaders in all aspects of union matters has increased over the years.

Almost all unions are associating themselves with some political party or the other. Legal problems: Now that adjudication is easily accessible, the CB process is losing its importance. Management attitude:

In India, managements have a negative attitude towards unions. They do not appreciate their workers joining unions.

Suggestions for better functioning of CB:

The Indian Institute of Personnel Management has offered the following suggestions: A progressive and strong management that is conscious of its obligations and responsibilities to the various stakeholders. A truly representative enlightened and strong trade union should come into being and should function on strictly constitutional lines. There should be unanimity between labour and management on the basic objectives of the organization and a mutual recognition of their rights and obligations. When there are several units of the company, there should be a delegation of authority to the local management.

A fact-finding approach and a willingness to use new tools should be adopted for the solution of industrial problems.