Collective Bargaining (Internals)
Collective Bargaining (Internals)
Collective Bargaining (Internals)
Introduction
The term collective bargaining refers to the process of negotiation that takes place
between workers or labourers and their employers on the terms of their contracts.
In most instances, the labourers are represented by a trade or labour union. This is
usually done in order to achieve certain demands and rights of the labourers, namely
those pertaining to working hours, salaries, working conditions, etc.
This form of industrial dispute resolution has been revolutionary for labour relations
in the Indian industries, both private and public. This is because conflicts in the area
of commerce and business are inevitable and it is not practical to resolve all such
disputes through courts.
1. Political influence
2. Freedom of association
3. Stability of workers union
4. Trade union to be recognised
5. Tendency to develop give and take attitude
6. Unlawful labour practice
Process of Collective Bargaining:
1. Negotiating teams must have full freedom, known information, capacity, support and
integrity to enter into collective bargaining.
2. The chosen representatives from both the parties must be experienced, tactful and
persons with commitment to be successful in collective bargaining.
3. Full facts and figures with data forming the core of the subject matter must be made
readily available to each other.
4. Both the parties must have a sincere desire and genuine intention for solving the
differences.
5. Emotional balance is of utmost important in the process of collective bargaining.
6. The dispute and the disorder must be questioned and certain expenses have to be
incurred in the matter of purchasing long and enduring peace.
7. The representation must ensure the deed of settlement is drafted properly without
giving room for ambiguity, misrepresentation and fraud.
8. Collective bargaining is a long drawn process therefore failure in discussion should
not deter the parties from holding repeated discussions.
Merits:
1. Collective Bargaining imposes an obligation on both parties to the dispute and creates a
specific code of conduct for parties to the process.
2. The parties to the dispute undertake not to resort to strikes or lock-outs, and thus collective
bargaining ensures peace and industrial harmony.
Demerits:
1. Increase in wages, and extra expenses to provide other amenities to workmen and
improvement of working conditions can cause higher cost of production.
2. Political interference in the labour unions during the collective bargaining process
increases the chance for adverse effects.
Conclusion: