 Strikes in India in this year (from Jan.

’09 to till
date)

Date Description
5 Jan.’ 2009 Coal industry, due to wages
7 Jan.’ 2009 Public oil sector, due to wages
7 Feb.’ 2009 NTPC, to salary
20 April’ 2009 Hyundai, due to establish a trade union
29 July’ 2009 Strike finished & loss of 1800 cars
30 April’ 2009Mumbai Airport, due to transfer
2 may’ 2009 Nestle, Rudrapur due to release of probation employees
4 may’ 2009 M&M, Nasik, due to dismiss of trade union leader
9 may’ 2009 MRF, Arakonam due to wages
12 may’ 2009 JNPT, Paradeep & Kochi port due to wages
20 may’ 2009 MTNL, due to salary
Beladila Mines due to salary & working condition
12 June’ 2009 Public Sector Banks, due to salary
25 Aug.’ 2009 Air India, due to retrenchment in salary
7 Sep.’2009 Jet Airways Pilots on medical leave, due to dismiss of
pilots (National Aviators Gild)
13 Sep.’2009 Strike finished, loss of 25-30crore
Collective Bargaining (combined - good deal)

Collective bargaining is a technique adopted by the

organisations of workers and employers collectively to resolve
their differences with or without the assistance of third party.
Its ultimate aim to reach some settlement acceptable to both
the parties involved in labour management relation. Collective
bargaining includes not only negotiations between the
employers and unions but also includes the process of
resolving labor-management conflicts. Thus, collective
bargaining is, essentially, a recognized way of creating a
system of industrial jurisprudence. It acts as a method of
introducing civil rights in the industry, that is, the management
should be conducted by rules. It establishes rules which define
and restrict the authority exercised by the management
Definition:
 According to Dale Yoder, “Collective bargaining is
the term used to describe a situation in which the
essential conditions of employment are
determined by bargaining process undertaken by
representatives of a group of workers on the one
hand and of one or more employers on the other.”
 In the words of Flippo, “Collective bargaining is a
process in which the representatives of a labour
organisation and the representatives of business
organisation meet and attempt to negotiate a
contract or agreement, which specifies the nature
of employee-employer-union relationship.”
 Subject matter

 As per The Indian Institute of Personnel

Management

Purpose of agreement, its scope, and the definition of

important terms -
 Rights and responsibilities of the management and
of the trade union
 Wages, bonus, production norms, leave, retirement
benefits, and terms and conditions of service
 Grievance remedy procedure
 Methods and machinery for the settlement of
possible future disputes
 Termination clause.
 Bargaining in good faith is the foundation
stone of effective labor management relations.
It means that both parties communicate and
negotiate. It means that proposals are matched
with counter proposals and that both parties
make every reasonable effort to arrive at
agreement. It does not mean that either party is
forced to agree to a proposal. Nor does it
require that either party make any specific
concessions.
 Collective bargaining develops a sense of self
respect and responsibility among the employees.
 It increases the strength of the workforce, thereby,
increasing their bargaining capacity as a group.
 Collective bargaining increases the morale and
productivity of employees.
 It restricts management’s freedom for randomly
action against the employees.
 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.
 It helps in securing a prompt and fair settlement of
grievances.
 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 opens up the channel of
communication between the workers and the
management .
 Collective bargaining plays a vital role in
settling and preventing industrial disputes.
 Collective bargaining leads to industrial
peace in the country.

 It results in establishment of a pleasant

industrial climate .

 The unfairness and exploitation of workers is

constantly being checked.

 It provides a method or the regulation of the

conditions of employment of those who are
directly concerned about them.
 Features of Collective bargaining

“A tree is known by its fruit. Collective bargaining may

best be known by its characteristics.” Randle
 It is a group action to individual action and is
initiated through the representatives of workers
 It is flexible and mobile, and not fixed or static

 It is a two party process

 It is a continuous process

 It is dynamic

 It is industrial democracy

 It is an art, an advanced form of human relation

TYPES OF COLLECTIVE BARGAINING
Or
Collective Bargaining Agreement at
Different Levels

 Workplace bargaining or plant bargaining

 Company bargaining
 National bargaining
 Effort bargaining
 Productivity bargaining
 Coordinating bargaining
 Levels of Collective Bargaining

National level Sector or industry level Company/enterprise level

PRINCIPLES OF
COLLECTIVE BARGAINING
Arnold F. Campo has laid down certain essential general
principles of collective bargaining. These are –

For Union & Management

 finding the best possibility

 honest attempt to solve the problem
 leaders have the opportunity to present their demands
 mutual consent & confidence with good faith
For Management

 must develop constantly & acceptable follow a

realistic labour policy
 periodically examine the rules & regulations
 to conclude the attitude of the employees
 promote their comfort and gain their goodwill &
cooperation
 trade union feels its position is secure

For Union

 only to welfare of its members

 recognize the economic suggestions relatives income &
resources of the organisation
 Also for Non-Economic suggestions
PROCESS OF COLLECTIVE BARGAINING
1. Preparing for Negotiation
2. Identifying Bargaining Issues
3. Settlement & Contract Agreement
4. Administration of the Agreement

Preparing for Negotiation

 Prepare specific proposal for changes
 Conclude the package
 Prepare statistical data
 Financial position of the company
 Attitude of the management
 Desire of the employees
 Follow-up the action plan
 Both the parties, at all times, respect the right of the public
Identifying Bargaining Issues
 Wages related issues – wages, overtime,
 Supplementary economic benefits – paid holiday & leaves,
health insurance plan, pension plans and PF etc.
 Institutional issues – rights & duties of employees and
employers
 Administrative issues – technological changes, job security,
promotion, development & training programs, code of
discipline

Settlement & Contract Agreement

 Clear and specific

Administration of the Agreement

 Must be communicated to all effects levels
 HR manager plays crucial and advisory role
 MANDATORY ITEMS FOR
COLLECTIVE BARGAINING
Reed Richardson has shown the issue to be included in the
collective bargaining agreement –

Wages, working hours, paid holidays & vacations,

grienvance procedure, lay-off plan, lunch & rest
periods, safety rules, job position procedure, plant shut
down & relocation, profit-sharing plan & bonus
payment, overtime pay, sick leave, pension plan,
retirement age, prices of meals provided by employer,
group insurance (health, accident & life policies),
promotions, seniority, transfer, discount on company
product, strike & lock-out clause.
Solutions / Condition Essential for
Successful Collective Bargaining
or
Strengthening Collective Bargaining
 Strong & Stability of Trade Unions
 Recognition of Trade Unions
 Mutual Accommodation or Willingness to
Give & Take Policy
 Mutual Trust and Confidence
 Efficiently Bargaining
 Emphasis on Problem-Solving
 Favorable Political Climate
 Outcomes of
Collective Bargaining

 Lose –Lose (employee & employers)

 Lose –Win (employee & employers)

 Win –Lose (employee & employers)

 Win -Win (employee & employers)

 COLLECTIVE BARGAINING IN INDIA

It was started in the first Five-Year Plan :-

 Collective bargaining, as it is known and trained, is
almost unknown in India, as a matter of principle, it
was accepted for usage in union-management
relations by the state.
 The effort of the state is to encourage mutual
settlements, collective bargaining, voluntary
arbitration to the uppermost coverage and thereby
reduce to the minimum the number of disputes for its
involvement.

Indian Labour Conference in 1952:-

 Compulsory settlement
 COLLECTIVE BARGAINING IN INDIA

National Commission on Labour :-

 Should be sort out at the plant level

EFI studied in 1970:-

 Study covered 109 collective agreements, relating
to 77 companies and 11 industrial associations

Recent Trends :-
 Traditional Issues – wages, DA, employment
conditions
 Non- Traditional Issues- better welfare facilities,
demand for better benefits