Ans 1

IMPORTANCE OF COLLECTIVE BARGAINING in Indian Context

Collective bargaining plays a vital role in settling and preventing industrial

disputes. Specifically its importance is evident from the following:

1. Increase the economic strength of unions and management.

2. Establish uniform conditions of employment with a view to avoiding industrial

disputes and maintaining stable peace in the industry.

3. Secure a prompt and fair settlement of grievances.

4. Avoids interruptions in work which follow strikes, go-slow tactics and similar
coercive activities;

5. Lay down fair rates of wages and norms of working conditions;

6. Achieve an efficient operation of the plant;

7. Promote the stability and prosperity of the industry;

8. Provides a method or the regulation of the conditions of employment of those

who are directly concerned about them;

9. It provides a solution to the problem of sickness in industry, and ensure old age
pension benefits and other fringe benefits;

10. It creates new and varied procedures for the solution of the problems as and
when they arise-à problems which vex industrial relations; and its form can be
adjusted to meet new situations. Since basic standards are laid down, the employee
is assured that he will be required to work under the stipulated audit;

11. It provides a flexible means for the adjustment of wages and employment
conditions to economic and technological changes in the industry, as a result of
which the chances for conflicts are reduced.

12. As a vehicle of industrial peace, collective bargaining has no equal. It is the

most important and significant aspect of labor-management relations, and extends
the democratic principle from the political to the industrial field.

13. It builds up a system of industrial jurisprudence by introducing civil rights in

industry. In other words, it ensures that management is conducted by rules rather
than by arbitrary decisions;
Need for Collective Bargaining

(a) A high degree at collective bargaining as measured in terms of the proportion of

workers covered by collective agreements;

(b) Qualitative conduct of the parties to collective bargaining both before a

situation warranting negotiations develops and the methods followed at the time of
arriving at agreements;

(c) The right priorities assigned to different methods in the agreement and their
changing pattern over time; and

(d) A structure of bargaining with emphasis on central bargaining which is

purported to give some order and stability to labor management relations.