SYNOPSIS

ON
A CRITICAL APPRAISAL OF ROLE OF COLLECTIVE
BARGAINING AFTER LIBERALIZATION, PRIVATIZATION AND
GLOBALIZATION WITH SPECIAL REFERENCE TO
COMMERCIAL AND INDUSTRIAL DISPUTES IN WESTERN
VIDHARBHA REGION
Synopsis Submitted for the Registration of
Ph. D.
In the
FACU!Y OF CO""#RC#
SAN! $AD$# %A%A A"RA&A!I UNI&#RSI!Y'
A"RA&A!I
SU%"I!!#D %Y
Dr. &i(esh %. "unot
". Com.' .".' N#!' S#!' Ph. D. )a*+
Assistant Professor
Amo,a-.hand &idhi "aha/idya,aya' Ya/atma,
UND#R !0# $UIDANC#1SUP#R&ISION OF
Dr. Padma-ar ". !a,ey
Asso.iate Professor
)Smt. 2. . Co,,ege' Amra/ati+
3456 )7ANUARY+
0
A CRITICAL APPRAISAL OF ROLE OF COLLECTIVE
BARGAINING AFTER LIBERALIZATION, PRIVATIZATION AND
GLOBALIZATION WITH SPECIAL REFERENCE TO
COMMERCIAL AND INDUSTRIAL DISPUTES IN WESTERN
VIDHARBHA REGION 8
IN!RODUC!ION
Industrial growth, development, and improvement in productivity mainly
depend on industrial peace preserve by the industry. In preserving the industrial peace,
COLLECTIVE B!"I#I#" plays an important and signi$icant role. In the world o$
industry and commerce, a process has been evolved and until now evolving $or the
negotiation between management and employees o$ terms and conditions o$ service and
the establishment o$ peace$ul, orderly relations at the place o$ wor% through mutual
settlement o$ di$$erences and the cooperation o$ all those engaged in the enterprise. This
process is %nown as Collective Bargaining.
The phrase collective bargaining appears to have been $irst coined by &ydney
and Beatrice 'ebb in their boo% on the Co(operative )ovement, but in Industrial
*emocracy, a study o$ trade unionism published in +,-., they enlarged upon it,
describing the process o$ collective bargaining as(
/In unorgani0ed trades the individual wor%man accepts or re$uses the terms
o$$ered by the employer without communication with his $ellow(wor%man111 . 2or
the sale o$ his labour he ma%es with the employer a strictly individual bargain. But, i$ a
group o$ wor%men concert, and send representatives to conduct the bargaining on behal$
o$ the whole body the position is at once changed. Instead o$ the employer ma%ing a
series o$ separate contracts with isolated individuals, he meets with a collective will,
and settles in a single agreement the principles upon which, $or the time being all
wor%men1 will be engaged.3
In a 'or%ers4 Education )anual issued by the International Labour O$$ice
5Bargaining I. L. O. "eneva, +-678, collective bargaining is de$ined as(
/negotiations about wor%ing conditions and terms o$ employment between an
employer, a group o$ employers or one or more employers4 organi0ations, on the one
hand, and one or more representatives wor%ers4 organi0ations, on the other, with a view
to reaching agreement3.
1
It is $urther stated that /the terms o$ an agreement serve as a code de$ining the
rights and obligations o$ each party in their employment relations with one another9 it
$i:es a large number o$ detailed conditions o$ employment9 and during its validity noe
o$ the matters it deals with can in normal circumstances give grounds $or a dispute
concerning an individual wor%er3.
The International Con$ederation o$ 2ree Trade ;nions in a teaching guide $or
union training has described a collective agreement as /a wor%er4s Bill o$ !ights3 and
stated the union4s ob<ects in collective bargaining as $ollows(
+. To established and build up union recognition as an authority in the wor%
place9
=. To raise wor%ers4 standards o$ living and win a better share in company4s
pro$its9
>. To e:press in practical terms the wor%ers4 desire to be treated with due
respect and to achieve democratic participation in decisions a$$ecting their
wor%ing conditions9
?. To establish orderly practices $or sharing in these decisions and to settle
disputes which may arise in the day(to(day li$e o$ the company9
@. To achieve broad general ob<ectives such as de$ending and promoting the
wor%ers9 interests throughout the country.
Even the Aon4ble &upreme Court several time reiterated the importance o$ the
collective bargaining in its decisions.
&ettlement o$ labour disputes by direct negotiation and collective bargaining is
always to be pre$erred $or it is the best guarantee o$ industrial peace, which is the aim o$
all legislations $or settlement o$ labour disputes (National Engineering Industries Ltd.
vs. State of Rajasthan, AIR 2000 SC 4!".
In National Engineering Industries Li#ited vs. State of Rajasthan, (AIR 2000
SC 4!", the Court stressed the principle o$ collective bargaining in these words B
/It has to be %ept in view that the Industrial *ispute ct is based on the principle
o$ collective bargaining $or resolving industrial disputes and $or maintaining industrial
peace. Thus, principle o$ industrial democracy is the bedroc% o$ the ct. The employer
or a class o$ employers on the one hand and the accredited representatives o$ the
wor%men on the other are e:pected to resolve the industrial dispute amicably as $ar as
possible by entering into the settlement outside the conciliation proceedings or i$ no
2
settlement is reached and the dispute reaches the conciliator even during conciliation
proceedings. In all these negotiations based on collective bargaining, the individual
wor%man necessarily recedes to the bac%ground. The reins o$ bargaining on his behal$
are handed over to the union representing such wor%man. The unions espouse the
common cause on behal$ o$ all their members. ConseCuently, settlement arrived at by
them with management would bind at least their members and i$ such settlement is
arrived at during conciliation proceedings, it would bind even non(members. Thus,
settlements are the live wires under the ct $or ensuring industrial peace and
prosperity3.
Bargaining is collective because chosen representatives o$ labour D
management acts as bargaining agents. Collective bargaining was introduced in India
$or the $irst time in +-@=9 collective bargaining in India grew on par with the growth o$
Trade ;nionism. Collective Bargaining arrangements, in India, $or the $irst time were
made at hmadabad Cotton Te:tile Industry.
Co,,e.ti/e %argaining and ibera,i9ation' Pri/ati9ation and
$,oba,i9ation )P$+
Collective bargaining actually meant $or bringing democratic environment in
commercial and industrial sphere. It helps in developing a sense o$ responsibility on the
part o$ both employer and employee. #evertheless, "overnment and civil society are
necessary sta%eholders and part and parcel o$ the process.
The economy may be capitalistic, socialistic or mi:ed economy. In
Liberali0ation and "lobali0ation, &tate acting as a corporate agent which main $unction
is to remove all barriers $or capital accumulation and its mobility. It may adversely
a$$ect on right to organi0e and collective bargaining.
In +--+, India has adopted the LE", model o$ development. In LE" model there
is mar%et based strategy to accelerate development with least amount o$ &tate
intervention. It added strength to the Indian capitalist class. new meaning was given
to the term Flabour re$orm4, which implied the power to Fhire and $ire4 wor%ers, $reedom
to determine wages according to the mar%et demand and supply. lthough the state did
not underta%e Flabour re$orms4 by introducing a new legislation to legitimise the
demand o$ the capitalist class, it silently wor%ed to reduce state intervention. The
minimi0ing role o$ &tate to intervene in the labour interests wea%ened the trade unions.
In $act, recent era witnesses, labour $le:ibility by the &tate in practice.
3
AI"S AND O%7#C!I&#S OF PROPOS#D :OR2
2or the development o$ an underta%ing or an industry, industrial peace is
indispensable. Labour legislation and the en$orcement machinery set up $or its
implementation can only provide a suitable $ramewor% in which employers and wor%ers
can $unction. The best solution to common problems, however, can be $ound by mutual
agreement.
!he aims and ob(e.ti/es of the proposed resear.h is enumerated as fo,,o*s ;
+. The researcher ardent to %now and investigate the $actors a$$ecting collective
bargaining. The main hindrances, which may come in the way o$ collective
bargaining, as well as the $actors, which made collective bargaining success$ul,
should be sort out.
=. The researcher is $ervent to %now the impact o$ LE"( a model o$ development,
on "overnment, capitalist class, trade unions and on collective bargaining power
o$ trade unions.
>. The study is aimed at identi$ying the role o$ Gudiciary in protecting labour
interests pre(LE" and post(LE" phase.
?. The study is aimed at identi$ying the e$$ect o$ legislation, compulsory arbitration
and national and international conventions on the growth o$ collective
bargaining in India.
@. To %now about $actors which are pre(reCuisites o$ collective bargaining, the
e$$ect o$ collective bargaining and change in employer(wor%man relationship
a$termath collective bargaining.
6. To %now about the legal regime and wor%ing o$ law relating to collective
bargaining in India.
.. The thorough study o$ concept o$ collective bargaining, its process, wor%ing,
e$$ect, role o$ government and trade unions etc. would help at %nowing the
practicalness o$ the problem, and bringing out the positive solution.
,. The sub<ect in the proposed wor% has gained the global phenomenon. It is ardent
desire o$ the researcher to %now about the wor%ing o$ collective bargaining
phenomenon at global level.
-. The proposed wor% aimed at spreading awareness about collective bargaining
among the wor%ers, employers and other related sections o$ the society along
with to give encouragement to collective bargaining in bringing industrial peace
and development.
4
SCOP# < I"I!A!IONS OF !0# :OR2
The collective bargaining is process o$ <oint decision(ma%ing and basically
represents a democratic way o$ wor%ing in industry. It is the process o$ negotiation
between management and representatives o$ wor%ers $or resolving the dispute between
them with amicable manage and to secure industrial peace and development. The
purpose o$ collective bargaining is to meet at mutually agreeable conditions o$
employment. The process o$ collective bargaining essentially involves negotiation,
mediation, conciliation and arbitration to reach at an understanding acceptable to both
the parties.
;nder this wor%, the aspects li%e meaning o$ collective bargaining, role o$
collective bargaining, its importance, and signi$icance in maintaining peace and
harmony in industrial spear shall considered in depth.
The e$$ect o$ LE" on industrial relations is the core o$ study. The span o$ the
study e:tends to %now the role o$ collective bargaining a$ter the advent o$ LE" in India.
The researcher will study role o$ collective bargaining a$termath LE" speci$ically with
commercial and industrial disputes in 'estern Vidharbha.
The legal regime o$ the collective bargaining process, attitude o$ the
"overnment towards collective bargaining, development o$ collective bargaining in
India and collective bargaining phenomenon at international are among others to be
dealt in this study research. The $eatures, procedure, structure and levels o$ the
collective bargaining shall consider in the proposed research wor%.
2indings and conclusions $rom doctrinal and non(doctrinal i.e. empirical study
and its interpretation is the part o$ the propose wor%. s and when reCuires, it will deal
with non(doctrinal aspect 5such as observation, interviews and preparing model $orms
o$ Cuestionnaires8 which may includes practical visits to industries, o$$ices o$ trade
unions, commercial places etc., to $ind out practicality o$ the problem and appraisal o$
present condition.
The most o$ the research wor% shall based on the phenomenon pertaining to
India with special re$erence to 'estern Vidharbha and wherever it is necessary to ta%e
into consideration, the International Covenants and aspect o$ the sub<ect, shall be
considered.
t last, the proposed wor% concluded with conclusions D
recommendations.
5
I!#RA!UR# R#&I#:
Collective Bargaining re$ers to a process by which employers on the one hand
and representatives o$ the employees on the other attempt to arrive at agreements
covering the conditions under which employees will contribute and be compensated $or
their services. Collective bargaining is concerned with the relations between trade
unions D management.
Hennedy, Van *usen in his boo% ;nion, Employers and "overnment emphasis
that in India4s development as a democratic society, trade unions, as voluntary
organi0ations o$ wor%ers dedicated to improving employment conditions through
collective e$$orts and the method o$ collective bargaining with employers, have an
important part to play. Ae narrates detailed note on trends in collective bargaining and
"overnment policy on collective bargaining.
&ur, )ary in Collective Bargaining 5+-6@8, on his personal e:perience o$
negotiating agreements, presents a brie$ history o$ collective bargaining in Britain and
the ;. &. ., along with in$ormation on Indian e:perience by comparison o$ methods in
di$$erent national and economical and social situations.
Gain and Bhola 5=77-8, is o$ view that collective bargaining is the ultimate in
negotiations and is possible only when wor%er4s and employers4 organi0ations are
eCually strong, mature and conscious o$ their rights and duties.
)amoria, )amoria and "an%ar have argued that the collective bargaining has
not decentrali0ed beyond the plant level because cra$t 5s%illed, e:pertise8 unions are
absent.
&harma, . H. opined that "overnment4s intention has never been to discourage
collective bargaining. In $act, the labour in India is not very well organi0ed and it is not
e:pected that it would be able to get its due share through collective bargaining.
The e:isting literature on collective bargaining mostly $ocused on meaning,
signi$icance, role and process o$ collective bargaining. &ome o$ them are $ocuses on the
role o$ "overnment in development o$ collective bargaining and protection o$ interests
o$ labour in India. 'ith regard to collective bargaining process a$ter LE" and e$$ect o$
LE" on collective bargaining, the available literature is scanty.
There is no wide and comprehensive comparative literature which through light
on collective bargaining a$ter the advent o$ LE" in India.
6
"#!0ODOO$Y
In order to handle this proposed wor% in an appropriate manner and giving
use$ul output $rom the wor%, both the doctrinal 5i.e. analyticalInon(empirical8 as well as
empirical method would be most suitable and per$ect. Aence, in the proposed wor%,
both these method have been and will be utili0ed very well.
Co,,e.tion of DataB
Collection o$ data is nothing but the mesmeri0ing phase o$ research. The sources o$
*ata collection method may be divided into(
+. Erimary &ources o$ *ata Collections
=. &econdary &ources o$ *ata Collections
Erimary sources re$er to original in$ormation collected $or the $irst time. It is
also called as internal source or $ield source o$ data as the data is collected directly $rom
the sub<ect and $ield. The primary sources o$ data as $ar as the proposed study concern
may includes(
a. Observation( by personal visit and reducing observation in writing with the
help o$ Observation &heet.
b. Interviews( o$ all the sta%eholders in the process o$ collective bargaining.
c. JuestionnaireIs( to be prepared $or and $illed in by the Target "roups.
The empirical research is carried on by collecting and gathering data or
in$ormation by $irst hand study into the universe. This proposed wor% will includes the
preparation o$ Cuestionnaires and observation o$ industries, commercial places and
o$$ices o$ trade unions.
The Cuestionnaires are to be prepared to $ind out role o$ collective bargaining
a$ter the advent o$ LE", its e$$ects, the awareness about the collective bargaining, use o$
collective bargaining, its limitations, and hindrances in bringing out success$ul
collective bargaining, role o$ T;s, Employers, 'or%ers, "overnment and society at
large in collective bargaining process.
Ket another ob<ect o$ preparing the Cuestionnaires is to %now about the
re$ormative steps that have been ta%en at the "overnment level as well as recent
developments in the phenomenon at global level.
7
Se.ondary sour.es is obtained $rom outside. It may include personal documents
li%e li$e histories, diaries, letters, memories and published documents li%e boo%s,
document come $rom public bodies, "overnment and private organi0ations. !esearcher
will go through the relevant boo%s, records, published statistics, reports o$ newspapers
and <ournals and special reports, $ilm or T. V. programmes etc.
*octrinal method involved arranging, ordering and systemati0ing propositions,
analysis o$ case study. The data or in$ormation will be collected $rom te:ts, laws,
international conventions and <udicial decisions.
It is thus, a $act research. It will see% to identi$y and appraise the degree o$
variable, which in$luence the outcome and decision(ma%ing.
8
0YPO!0#SIS
Aypotheses are tentative solutions to the research problem. In the proposed
wor%, the researcher has $ormulated the $ollowing Aypothesis(
+. There is considerable reduction in &tate intervention in labour interests a$ter the
advent o$ LE". The LE" model has generated an anti(labour economic
environment in the post(re$orm period as against the pro(labour environment in
the pre(re$orm period.
=. Collective bargaining which may result in <ust and $air settlement would always
be bene$icial to the management as well as to the body o$ wor%men and society
at large as there would be industrial peace and tranCuility pursuant to such
settlement and would avoid unnecessary social stri$e and tribulation on the one
hand and promote industrial and commercial development on the other hand.
>. FLabour Ero4 <udgments o$ the Gudiciary and /Let the matter go $or the
litigation3( lead the collective bargaining process wea%.
?. !ise in trade unionism, Immature T;s, problem o$ multiple and rival ;nions,
Eolitical rivalry and illiteracy o$ many o$ wor%ers D more particularly lac% o$
labour education are the prominent $actors responsible $or $ailure o$ collective
bargaining process.

9
C0AP!#RISA!ION OF !0# PROPOS#D :OR2
Chapter 5 B Introductory Overview
Chapter 3 B !esearch )ethodology
Chapter = B Aistorical Bac%ground and Conceptual 2ramewor% o$ Collective
Bargaining
Chapter 6 B Collective Bargaining and LE"
Chapter > B *ata nalysis and Interpretation
Chapter ? B Conclusions and !ecommendations
%ib,iography
Appendi.es
10
%I%IO$RAP0Y
Books:
$handar%ar, &il%inson ' (ethodolog) and *e+hni,ues of So+ial Resear+h,
-
th
Edition, 200., /i#ala)a 0u1lishing /ouse,
$o#1a).
2ain, 2. N., $hola Aja) ' (odern Industrial Relations and La1our La3s,
0rin+i4les and *e+hni,ues, 200!, Regal
0u1li+ations, Ne3 5elhi.
6enned), 7an 5usen ' 8nions, E#4lo)ers and 9overn#ent: Essa)s on
Indian La1our ;uestions, <irst Edition, -!,
(ana%talas, $o#1a).
(a#oria, 5r. C. $., 5r. Satish ' Industrial La1our, So+ial Se+urit) and Industrial
0ea+e in India, <irst Edition, -!=4, 6ita1 (ahal,
Allaha1ad.
(a#oria, 5r. C. $., 5r. Satish, 9an%ar ' 5)na#i+s of Industrial Relations, -4
th
Revised
Edition, 200., /i#ala)a 0u1lishing /ouse,
(u#1ai.
(ishra, S. N. ' La1our and Industrial La3s, 22
nd
Edition, 200,
Central La3 0u1li+ations, Allaha1ad.
Shar#a, A. 6. ' La1our E+ono#i+s, <irst Edition, 200, An#ol
0u1li+ations 0vt. Ltd., Ne3 5elhi.
Sur, (a)ur ' Colle+tive $argaining: A Co#4arative Stud) of
5evelo4#ents in India and other Countries, -!>,
Asia 0u1lishing /ouse, Ne3 ?or%.
?usuf, A#ina I,1al ' *he (aharashtra Re+ognition of *rade 8nions
and 0revention of 8nfair La1our 0ra+ti+es A+t,
-!@-, and 0rin+i4les of Colle+tive $argaining,
<irst Edition, 200-, C. 2a#nadas A Co.
11
Art!"#s:
+. Collective Bargaining in IndiaB !ecent Trends, by &urendra Eratap, Created on
7..7?.=7+=.
=. Collective Bargaining EowerB ;nion and )anagement by *r. bhishe% "upta and
#eetu "upta, Eublished in #ational )onthly !e$ereed Gournal o$ !esearch in
Commerce and )anagement, Volume #o. =, Issue #o. ?, I&&# ==..(++66
>. Emerging Trends in Trade ;nion )ovement, )ainstream, Vol. LLVI, #o. =7.
?. The Challenge o$ Employment in IndiaB n In$ormal Economy Eerspective9 Volume I (
)ain !eport9 #ational Commission $or Enterprises in the ;norgani0ed &ector9 =77-.
P#ro$!%"s&N#'s(%(#rs:
-. 5aini% $has%ar (/indi"
2. India *oda)
.. Lo%#at *i#es
4. Nav1ahrat (/indi"
>. N)a) 5ee4
. *i#es of India
W#)*St#s:
-. htt4'BBen.3i%i4edia.orgB
2. htt4'BBla1our1ureau.ni+.inBidta1.ht#
.. htt4'BB#.ti#esofindia.+o#B
4. htt4'BB333.ilo.orgB
>. htt4'BB333.indian%anoon.org
. htt4'BB333.legalservi+eindia.+o#B arti+leB
@. 333.live#int.+o#B200!B-2B...B*he:rise:of:the:ne3:4roletaria.ht#l
Signature of the Student Signature of $uide1Super/isor
12