COLLECTIVE BARGAINING

Submitted by

Sivaganga.S.R

B.A. LL.B.(Hons.)(4TH Year VII th Semester)

Submitted to

Ms. Vandana Dahiya

Reg.No: 46017210013

13th SEPT 2020

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 Table Of Contents

SL.NO CONTENTS PAGES

1. DECLARATION 3
2 ACKNOWLEDGEMENT 4
3. INTRODUCTION 5
4. Definitions 5
5. Charateristics 6
6. Types of Collective Bargaining 6-7
7. Procedures Followed 7-8

DECLARATION

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I undersigned Sivaganga.S.R student of B.A. LLB SEM- VII, hereby declare that the project is my
own work and has been carried out under the guidance and supervision of Ms.Vandana Dahiya
of SRM University, Sonepat, Haryana,Delhi– NCR.

This work has not been previously submitted to any other university for any purpose.

Date:13/09/2020 Name & signature of candidate :Sivaganga.S.R

ACKNOWLEDGEMENT

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This project would not have been possible without the essential and gracious support of
Ms.Vandana Dahiya (Assistant Professor of Industrial Relations and labour laws-I) from SRM
University, Sonepat, Haryana, Delhi– NCR. Her willingness to motivate me contributed
tremendously to my project. I also would like to thank her for showing me some examples
related to topic of this project.

Besides I would like to thank the authorities of SRM University, Sonepat, Haryana,Delhi– NCR
and faculties of Law department for providing me good environment and facilities to complete
this project.

Last but not the least, I would like to thank my family and friends for their understandings and
supports towards me for completing this project.

INTRODUCTION

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“ A free union and collective bargaining are forbidden, freedom is lost.”-Ronald Reagan
The relationship between the concept of collective bargaining and trade union, is one among
quintessential topic that have been found in every discussion relating to industrial concept. But
the phrase “collective bargaining” came into the picture during the end of 19th century , which
was coined by Beatrice Webb, one of the founder of field of industrial relation in England. In
case of India, it came into significance after 1962. It is made up from two words collective which
means “group” and bargaining which means “proposals and counter proposals”. So it is a process
in which the representatives of a labour organization & the representatives of business
organization meet and attempt to negotiate a contract or agreement, which specifies the nature of
employee-employer union relationship.
Definitions
Even though there are no concrete definitions enshrined in any acts , many scholars such as
Tudwig teller, publications etc. had tried to interpret the concept and given some definitions and
following are examples of such definitions:
 Collective bargaining is a term used to describe the procedure, whereby employers must
attempt to reach an agreement regarding terms of employment and the working
conditions of labour with the trade unions, instead of with individual workers.
 Collective bargaining is a process of discussion and negotiation between an employer
and a trade union culminating in a written agreement and the adjustment of problems
arising under the agreement.
 The Supreme Court of India has also defined the process of collective bargaining as a
technique by which, dispute as to conditions of employment is resolved amicably by
agreement rather than coercion. Workers, who are generally represented by a trade union,
use this medium to express their grievance about various issues such as wages and
working conditions
The basic objectives behind the formation of this concept are for:
 Resolve differences over knotty issues.
 Protect the interests of workers through collective action.
 Carry out negotiations voluntarily, without interference from a third party.
 Arrive at an amicable agreement through a process of give and take.
 To arrive at an agreement on wages and other conditions of employment.
 To have peaceful co-existence for the mutual benefits and progress.
 To maintain employee-employer relation bilaterally.

Characteristics

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  Collective: Collective bargaining is a two way group process where the employers
representative and employees representatives sit together to negotiate terms of
employment.
 Strength: Both the parties in collective bargaining are strong and equal.
 Voluntary: Both parties come to the negotiation table voluntarily in order to go in
particular negotiation. It is based on discussion, mutual trust and understanding.
 Formal: It is a formal process in which certain employment related issues are to be
regulated at National, organization and workplace levels.
 Flexible: It is a flexible and continuous process and not fixed or static. • Improvement: It
is a method to improve the employer-employees relation in organization and resolve
management and employees conflicts.
 Improvement: It is a method to improve the employer-employees relation in organization
and resolve management and employees conflicts.
 Representation: Collective bargaining is between the representatives of employees and
management. The management does not directly deal with employees. It carries
negotiations with the representatives/executives of unions and association.
 Dynamic: Collective bargaining is dynamic, that go on changing over a period and
grows and expand the way of agreement, the way of implementation and way of
discussion.
 Continuous: Collective bargaining is continuous and begins with agreement, the
implementation of agreement and further negotiations.
 Bipartite Process: Because the employee and employers representatives negotiate
directly face to face across the table

Types of Collective Bargaining

PRODUCTIVITY
BARGAINING

COOPERATIVE
COMPOSITE
BARGAINING Types /INTEGRATIVE
BARGAINING

CONJUNCTIVE OR
DISTRIBUTIVE
BARGAINING

There are basically four types of collective bargaining and they are as follows:
i. CONJUNCTIVE OR DISTRIBUTIVE BARGAINING: Conjunctive bargaining is the
most common type of bargaining & involves zero-sum negotiations, in other words, one
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 side wins and the other loses. Both parties try to maximize their respective gains. They
try to settle economic issues such as wages, benefits, bonus, etc. For Example, Unions
negotiate for maximum wages & the management wants to yield as little as possible –
while getting things done through workers.
ii. COOPERATIVE /INTEGRATIVE BARGAINING: Integrative bargaining is similar to
problem solving sessions in which both sides are trying to reach a mutually beneficial
alternative, i.e. a win-win situation. Both the employer & the union try to resolve the
conflict to the benefit of both parties. Both sides share information about their interests
and concerns and they create a list of possible solutions to best meet everyone’s needs.
iii. PRODUCTIVITY BARGAINING: A form of collective bargaining leading to a productivity
agreement in which management offers a pay raise in exchange for alterations to employee
working practices designed to increase productivity. Productivity bargaining has been described
as "an agreement in which advantages of one kind or another, such as higher wages or increased
leisure, are given to workers in return for agreement on their part to accept changes in working
practices or in methods or in organization of work which will lead to more efficient working.
iv. COMPOSITE BARGAINING: Workers believed that productivity bargaining agreements
increased their workloads. Rationalization, introduction of new technology, tight productivity
norms have added to this burden and made the life of a worker somewhat uneasy. As an answer
to such problems, labor has come in favor of composite bargaining. In this method, labor bargains
for wages as usual, but goes a step further demanding equity in matters relating to work norms,
employment levels, manning standards and environmental hazards etc.

Procedures Followed

1. A charter of demands:-
The trade union will notify the employer for initiating collective bargaining negotiations. The
representatives of the trade union draft a charter of demands which contains issues related to
terms of employment and the working conditions namely wages and allowances, bonuses,
working hours, benefits, holidays. In some cases, an employer may also notify the trade union
and initiate collective bargaining negotiations.
2. Negotiations:-
Negotiation is the next step after the submission of the charter of demands by the trade union.
Both the employer and the employee seek opportunities to suggest compromise solutions in their
favour until an agreement is reached. If it impossible to reach out to an agreement, a third party
(mediator / arbitrator) may be brought in from outside. If, even with the assistance of the third

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party, no viable solution can be found to resolve the parties’ differences, the trade union may
decide to engage in strikes.
3. Collective bargaining agreement:-
Pursuant to the negotiations between the parties, a collective bargaining agreement will be
executed between the employer and workmen represented by trade unions, setting out the terms
of employment and the working conditions of labour.
4. Strikes:-
If both parties fail to reach an agreement because of mutual consensus, the union may go on a
strike, which shall be in accordance with the provisions of the Industrial Disputes Act 1947 (“ID
Act”).
5. Conciliation:-
Once the conciliation officer receives a notice of strike or lockout, the conciliation proceedings
shall commence. The State Government may appoint a conciliation officer or a Board of
Conciliation to investigate disputes, mediate and promote a settlement. Workers are prohibited
from going on strike during the pendency of such conciliation proceedings. Conciliation
proceeding may have one of the three outcomes, namely (i) a settlement; or (ii) no settlement; or
(iv) reference being made to the appropriate labour court or any other industrial tribunal.
6. Compulsory arbitration or adjudication:-
When conciliation and mediation fail, parties may either resort to compulsory or voluntary
arbitration. Arbitration and the recommendations of the arbitrator may be binding to the parties.
Section 7A of the ID Act provides for a labour court or industrial tribunal within a state to
adjudicate protracted industrial disputes such as strikes and lockouts.
Section 7B of the ID Act provides for constitution of national tribunals to resolve disputes
involving questions of national interest or issues concerning more than two states. In the event, a
labour dispute is not resolved by conciliation and mediation, the employer, and the workers may
refer the case by a written agreement to a labour court, industrial tribunal or national tribunal for
adjudication or compulsory arbitration.