1.1 Introduction to the Study
The phrase of collective bargaining was coined by Sydney and Beatrice Web. According to them collective bargaining is a method by which trade unions protected and improved the conditions of their members‟ working lives.

It is the public policy of the United States that the determination of employer – employee relationship in terms engaged in interstate commerce shall take place through collective bargaining. The right of the employee to join and work through organizations is protected by various labor statutes. The National Labor Relations Act specifies that it is an unfair labor practice for the employer to refuse to bargain collectively with chosen representatives of a certified labor organization. The Labor Management Relation Act specifies that, it is an unfair practice for the representatives of a labor organization to refuse to bargain in good faith with the employer. Collective bargaining is the approved answer to the employee – employer relationship.

Collective bargaining has grown in India due to the statutory provisions, voluntary measures, Industrial True Resolution of 1962 and the amendments to The Industrial Disputes Act 1947

Collective bargaining is a process in which condition of employment are determined by agreement between representatives of the union on one hand and those of the employer on the other hand. It is called collective bargaining because both employer and employee act as a group rather than individual. It is described as bargaining because the method of reaching an agreement involves proposals and counter proposals and offers.

Two basic types of collective bargaining exist between labor and management, traditional and integrative. Traditional bargaining is concerned with the distribution of benefit such as wage, working conditions, promotion, lay offs,


management rights. Focus is on such variables as the economic costs of offer made, likelihood and costs of a strike and the sources of bargaining power.

In integrated bargaining approach each group must view the other as cooperative and trust worthy. Both must withhold commitment to a definite position while soliciting information and discussing problems and feelings. Integrative bargaining tends to grow out of stressful situation.

1.2 Objective of study To study the procedure adopted by the company in dispute settling. To study the role of unions in collective bargaining Peculiar settlement or understanding reached by the management and unions by the way of collective bargaining . 1.3 Scope of the study In today‟s world economy bargaining capacity of people had made them to rethink their present situation and to cope with the strategies laid before them. Employer as well as employee have equal participation in the management and are a collective involvement and maintaining good relationship by satisfying their needs and ends. The study covers the analysis of the present collective bargaining structure prevailing at GTN textiles Aluva.

1.4 Period of study The period of study continued up to 45 days.


1 HISTORY OF TEXTILE INDUSTRY The textiles and apparel industry is an ancient one. The first attempt to start a textile mill in India was made in Kolkata by an English man named Bowreah in 1819. The exports of cotton yarn from India can be divided into three categories viz. The industry experienced slow development and few major changes until the industrial revolution. Textile Industry in India is the second largest employment generator after agriculture. medium count and fine & super fine yarn. Textile industry was one of the earliest industries to come into existence in India and it accounts for more than 30 percentage . when the production of textiles and apparel was significantly altered by technology. It holds significant status in India as it provides one of the most fundamental necessities of the people. there have been many technological advances. Since then. fine & superfine yarn. In fact. Almost 85 percentage of the cotton yarn exports from India are of coarser counts and the balance 15 percentage comprises medium.. The textile industry occupies a pride of place in the Indian economy. It is one of the largest industries in the world in terms of spinning and weaving capacities. mostly incorporating the use of automation to improve quality and cost competitiveness. which are mostly combed. due to the difficulty of making a piece of fabric. coarse counts. The cotton yarn exports from India have grown substantially in last 20 years and at present it has 25 percentage market share in the global cotton yarn trade. Textile industry is one of the oldest and key segments of our economy accounting for almost 14 percentage of the industrial production of the country and providing direct and indirect employment to 35million people. Before then. the textile industry was the first to be mechanized. bone needles have been found dating as far back as 30000 BC. clothing articles were thought to be simply pieced together using knots or by lacing hides.5 2. This industry is one of the largest net foreign exchange earner and accounting for almost 27 percentage of the country's total exports.

Threats. and to compete with confidence for an increasing share of the global market. Indonesia. Silk Textiles. from the basic requirement of raw materials to the final products. Textile industry in India has vast potential for creation of employment opportunities in the agricultural. organized and decentralized sectors & rural and urban areas. National Textile Policy was announced. Competition from the countries like Pakistan.6 of the total exports. development of textile sector in India took place in terms of general policies. to increasingly contribute to the provision of sustainable employment and the economic growth of the nation.2 Opportunities. Coir. 2. Syria. Cotton Textiles including Handlooms. Handicrafts. which at present stands at 25 percentage has been stagnating due to recession in the world market and global events. with huge value-addition at every stage of processing. Risks & Concerns: The share of Indian cotton yarn exports in the world trade. In fact Indian textile industry is the second largest in the world. In 1985. Woolen Textiles. Textile Industry is unique in the terms that it is an independent industry. Egypt & Turkmenistan is also affecting the trade. Man-made Textiles. particularly for women and the disadvantaged. Its main objective was: to provide cloth of acceptable quality at reasonable prices for the vast majority of the population of the country. and Jute. The policy also aimed at achieving the target of textile and apparel exports of US $ 50 billion by 2010 of which the share of garments will be US $ 25 billion. Indian textile industry is constituted of the following segments: Readymade Garments. In the year 2000. industrial. Till the year 1985. second only to China. . for the first time the importance of textile sector was recognized and a separate policy statement was announced with regard to development of textile sector.

which constitute 85 percentage of the trade. It is predicted that manufactures such as cheap-chic stores. and will continually put the squeeze on department stores. it is only the units. like Target and Kohls. comparatively cheaper labor and India that has the largest area under cotton cultivation. the Indian textile has the inherent advantage of home grown cotton.e. In a free market scenario. the players in the apparel industry will need to look to innovative business ideas to stay in fashion. however. The technological mission on cotton launched by the government recently is expected to improve the productivity to nearly double of the present yield will help the industry to meet its growing of raw cotton at reasonable prices.. .3 Future Outlook: A cutback in spending has created a treasure-hunt mentality among shoppers. size is no longer enough. 2. has one of the lowest yields i. In addition. will see sales and profits rise. 300kg per hectare. Besides. other higher-end manufacturing companies may begin creating low-priced lines or looking for outsourcing opportunities to cut production costs. will be completely free from January 2005 resulting in a free world trade. which are most efficient and can produce goods in cost effective manner with strong emphasis on quality and customer services. affect mainly in the coarser count sector up to 30s.7 These factors. Upon dismantling quota system under WTO export to EU & USA. will be able to survive and prosper. In the battle for tightly held consumer dollars.


9 3. GTN has fully equipped Quality Assurance Laboratory with latest facilities to achieve optimum productivity and produce yarn of the highest quality at par with the international quality standards. SISMIRA and SITRA and Kerala Productivity Council. China. Belgium. The company has membership in various professional bodies viz. Taiwan. In 1966 the company was taken over by present management of the company. South Korea etc. GTN has a policy of regularly meeting customers in their country and discussing their requirements of yarn first hand and understanding problems if any and taken suitable steps to remove them. the company has a great advantage of buying quality raw materials through out the tear. Malaysia. they have a strong presence and leadership. 000. Sri M L Patodia. Over 90 percentage of the production is fine and superfine combed yarns and compact yarns. Thus equity shares of GTN Textile Limited (formerly GTN Industries Limited) are listed on Bombay Stock Exchange . 53.000 spindles. GTN Group has its own cotton trading division. GTN Textile Ltd. GT Narayana Swamy was the founder of GTN Textile ltd. GTN Textile Ltd is an ISO 9001:2000 Certified Company. Alwaye unit has installed a capacity of around 59.728 spindles. Mauritius. Australia. twisted and gassed for sophisticated international markets with a major share in countries like Israel. The GTN Group which started with a single unit at Alwaye has grown into a multi location/ multi unit textile group with spindlege nearly 1. ATTRA. GTN Alwaye has received “Award for Excellence” from the ICMF Birla economic and textile research foundation for sustained modernization and technological up gradation. Austria. SIMA. The company produces high quality 100 percentage combed yarn single. is mainly engaged in manufacture and export of cotton yarn in 15 percentage segment of medium and superfine combed yarn. Hong Kong.1 COMPANY PROFILE GTN TEXTILE LTD incorporated in 1962 in Alwaye (earlier Aluva) and commissioned on 1964 for the manufacture of the cotton yarn with a capacity of 12.

Alwaye has received "Award for excellence" from the ICMF Birla Economic and Textile Research Foundation for sustained modernization and technological up gradation. 3. GTN is named as the "Star Exporter" and "Export House" for its excellent performance in export. GTN. majority of which are state-of-the art technology. and 12pm to 8am. National Stock Exchange Limited (NSE). The manufacturing facilities and testing laboratory of the organization are equipped with modern equipment and machinery. viz. Rieter. 8am to 4pm. Toyoda. GTN has followed the policy of up gradation of its equipment and adoption of state-of-the art technology.. Medak. The Alwaye unit recruits only male employees. It employs 100 staff and 150 workmen. Luwa. and Cochin Stock Exchange Limited (CSEL). Uster equipments to produce counts from 245 to 805 combed of world class quality standard. 4pm to12pm. Spinlab. Nagpur & Shahad Nagar)  Patspin India Ltd: 100 percentage export oriented cotton yarn spinning unit in collaboration with M/S ITOCHU Corporation. The company works for 7 days in a week using three-shift timing. . The organization has set up an organization framework complete with quality assurance personnel and the systems. Japan with latest Trutztscher. "Texprocil Award" for outstanding export achievements for the last 16 consecutive years.2 Group Companies:  GTN Textiles Ltd: 150000 spindles (Alwaye.10 Limited (BSE). The GTN Textiles LTD is an ISO-9001 certified company.

5. Perfect Cotton Company. 3.5 Corporate Objectives: ●To retain its present position in the export market ●To satisfy its customers and shareholders ●To concentrate more as high value added processing of yarn ●To maintain long term relationship with customers and to provide service and quality. Exports Division  Cotton Division: consist of the following companies. 4.3 Vision Statement: "The market place is the driving force behind everything we do. 2. Knitting Division 2. and we aim and achieve the highest level of customer satisfaction on a continuous basis in all our transactions. 3.4 Mission: ●Textile yarn diversification ●Survival of the company ●Maximum profit while reduce the cost ●Improve value addition process 3. 1. Perfect Cotton Corporation.11  GTN Export Ltd: 1. Standard Cotton Corporation. Purav Trading Company. Patcot Company." GTN believes in continuous up gradation of its product's quality and service by investment in the latest technology and its successful implementation. 3. Yarn processing Division 3. .

2/3 of the group's productions are sold in Japan and Italy.7 Auditors M S Jagannathan & Visvanathan 3.8 Global Market: GTN group has the distinction of pioneering exports to Japan and Italy especially fine and superfine yarns.12 3. .6 Management Committee Name M L Patodia B K Patodia N K Bafna B L Singhal Prem Malik C D Thakker R Rajagopalan Umang Patodia Designation Chairman / Chair Person Vice Chairman & Managing Director Non Executive Independent Director Director Director Director Director Director 3.

Stock of raw materials for 5-6 months.9 SWOT ANLYSIS: 3.9.1 STRENGTH Latest technology Established product Established market Strong finance Experienced and committed personnel. Foreign collaboration. Country Japan Italy Belgium South Korea UK Australia China Others 3. Percentage 30% 40% 6% 7% 4% 4% 2% 7% .13 The following chart gives the break up of GTN group's exports to various countries. Decades of experience in trading cotton and yarn before venturing into this line of activity. State of the art quality assurance. 95 % capacity utilization.

3 OPPORTUNITIES Expanding exports. 3.14 3.9.2 WEAKNESS Raw material prices are on the increase. Availability of cheap labor. Rising prices of raw materials .9. The operating expenses are on the higher side.4 THREAT Growing competition from foreign brands. Many types of machinery have become obsolete.9. 3. Forward as well as backward integration.

15 3.1 Organization Chart Chart No.10. 1 .

16 3.10.2 Expansion of Abbreviations: VCMD MD GME CE VPT AGM (ES) Vice Chairman & Managing Director Managing Director General Manager (Engineering) Chief Executive Vice President (Technical) Assistant General Manager (Engineering Services) DME SOC AGM(QA) SMQA AMQA AGM(M) SMM DMM SGM (P&IR) M(T & D) MRM SGMW GMP SMP AMP Deputy Manager (Electrical) Senior Officer (Commercial) Assistant General Manager (Quality Assurance) Senior Manager (Quality Assurance) Assistant Manager Quality Assurance Assistant General Manager (Maintenance) Senior Manager (Maintenance) Deputy Manager (Maintenance) Senior General Manager (Personnel& IR) Manager (Training & Development) Manager (Raw Material) Senior General Manager (Works) General Manager (Production) Senior Manager (Production) Assistant Manager (Production) .


1 Functional Departments There are 11 departments in GTN Textiles Ltd.1 Raw Material Department: The major functions of this department are .1.1.3 Research & Development Department: The activities associated with this department are . keep long-term stock and issue of raw material for manufacturing purpose. continuously improve quality and reliability of product based on the information feed back. 4.1. . minimizing break down.1.2 Quality Assurance Department: The Quality Assurance Department is situated in the factory with stateof-the art laboratory for testing the quality of the cotton yarn at various stages of production and of the finished product.procurement of right quality of raw materials at the right time.18 4. 4.translating customer‟s quality requirements into achievable specifications.5 Maintenance Department: The objectives of this department are-minimizing long run maintenance cost. Aluva: 4. 4. providing safe working environment.4 Finance Department: Finance Department prepares the accounts and auditing of all financial transactions of the company and has the advisory function in financial and establishment matters.1. 4.

mark the attendance of the workers in the register.19 4. check the workers and vehicles at the time of entry & exit. . The function of this department is to purchase and store various materials according to the requirements. product identification. packaging & delivery.9 Safety & Security Department: This department looks after the safety of the company. storage. design marketing strategies.1.1. Later the time-keeper records the attendance in a register known as “Daily Muster Roll”. material handling. 4. analyze marketing opportunities etc.6 Production Department: This department controls the production process.1. Each worker is given a token bearing his details.7 Stores Department: The store department carries out the requirements of all the departments of the company. All the tokens are hung on a board at the entrance of the factory.10 Marketing Department: Marketing department control the exports and sales matters of the company. Metal disc method is used for this purpose. 4.1.8 Time keeping Department: This department checks the time of entry and exit of all the workers. each worker removes from the board his card and put to other board kept near by. One entering the factory. make right patrolling inside the company premises. conduct market survey and the product preference test. 4. 4.1.

11.1. Fairness and firmness will govern all employee relations. training & development of employees. .  Harmony and peace cannot be at the cost of dilution of organization ethos.  A proactive approach and a state of mental and physical preparedness would help in managing unpleasant issues. employees are employees.1. employee welfare.1 HR Values  Concern for people  Integrity  Customer orientation  Continuous improvement  Executive excellence 4.2 HR Principles  Whether workers or management staff. but two faces of the same coin. recruitment. wage and salary administration etc.11.  Communication and dialogue would be the essence of managing relations. The main duty of the HR manager is to maintain a better relationship with the employees and understand their problems and give them proper guidelines and help them to develop a loyalty towards their organization.  Unions are treated with respect and they are partners in the progress. 4.1.  They are not different bloc.20 4. selection and induction.11 Personnel Department: The functions of personal department include human resource planning.

3 HR Functions Fixing the number and qualification of the employees for the functioning of the company. In order to meet requirement need to ensure efficiency of operations and this could be realized only through training .11.4 RECRUITMENT The company identifies the need for personnel and tries to recruit then through employment agencies and through advertisement given in the papers and sometimes on the basis of recommendations.21 4. pay and overtime Doing all correspondence relating to the ESI and PF. Both on the job and off the job are also gives as and when need for the employees.1.11.5 TRAINING Both the workers and staffs are given training.1. Recruitment and selection. The management believes that the goodwill of the customers can be ensured through offering high quality products.11. Liaison with other firms. 4. Preparation of appointment letters. Making daily attendance of the employees. Arranging training and development Programs for the employees. The company‟s recruitment policies are however recruiting women into the most of managerial orders. Many management development programs are also organized. Running of canteen 4.1. Keeping all statutory obligations. Advising the concerned departments about the changes in factory rules and other related Acts Maintaining strict discipline.

BMS - Alwaye Mekhale Textile Mazdoor Singh 5. .1.11. GTN workers association 6. INTUC - Alwaye Textiles Employees Association 4. written caution.22 4. find show lapse with suspension. the matter is taken to the labor department of the govt. At GTN efforts are towards converting the „I‟s and You‟s into collective We‟s. Jobbers union In case of disputes settlement is sough through bilateral discussion. warming. At GTN strikes are arise mainly due to disagreement over workload and bonus. minor punishment and dismissal. depending on the degree of offence. CITU - Alwaye Textile workers union 2. which range from advice to dismissal.6 INDUSTRIAL RELATIONS GTN strives to maintain cardinal industrial relation with its employees. GTN textiles employees associates independent unions 7. Where bilateral discussion fails. There are 7 unions in the company affiliated to various political parties. The various actions initiated as per their degree of severely are advice. The unions are: 1. At the time the company has to initiate various disciplinary actions against the employees. AITUC - District Textiles labour union 3.


The company pioneered exports of cotton yarn to Japan & Italy where it has maintained its leadership. Malaysia & West Germany. GTN manufactures 100 percentage cotton yarn. The organization has specialized in the production of fine and super fine yarns. 5. double for knitting and weaving and geared yarns. carded and combed with counts ranging from Ne 30s to 140s single.1. South Korea. Singapore.1 PRODUCT PROFILE GTN Textiles is one of the largest cotton yarns exporting organization from India and is currently exporting at most 100 percentage of its total production to countries like Japan.1 PRODUCTS 100% Cotton Yarn – count ranging from NE30s-NE 140s  Knitting and weaving yarns  Two for one twisted & ring doubled yarns  Gassed yarns  S&Z High Twist & Specialty yarns  Mercerized/ Bleached/Dyed yarns  Grindle yarns Grey & Processed Knit Fabrics  Single Jersey  Body Size  Rib . Italy.24 5. Indonesia. Taiwan.

The silvers are coiled and stored in cans.1 MIXING Here.3. the cotton mixing/bales is opened and cleaned into a continuous sheet in the lap/chute form.3. 5.2 MACHINERY GTN Textiles is fully equipped with state of the art machineries which include latest generation Rieter.3. This product is called Blow room lap. Besides GTN Textiles has followed a policy of continuous modernization and up gradation of technology 5.3 PRODUCTION PROCESS 5. Two-for-One Twister and SSM Singeing Machine.1.3 CARDING In this process. waste extracted and assembled into a continuous strand. Toyota. 5. The objective of blending different varieties of cotton is to spin the required yarn economically. the different varieties of cotton are blended in definite proportion. Savio Orion fully automatic Auto corner.1. Suessen ssm.2 BLOW ROOM In this process. .1. the blow room lap/chute material is cleaned. Lakhmi. Schlafhorst Model AC238 Autocorner. Schalafhorst.1. Autoleveller Draw F rames. Precision Winding Machine etc. This strand (end product) is called card silver.25 5. Trutzgler. the fibers are made parallel as well as individualized of fibers. The spinning machine is mainly supplied by M/s Rieter.1. luwa etc.

3. The yarn count is also set at this stage.4 COMBING The Card Silver. 3. The silver is stored in cans in coiled form. The product thus prepared is called ribbon lap.1. This process consists of two processes viz. AUTOMATIC CONE WINDING In doubling process two or more single yarns are twisted together. twist and wind it on o plastic tube. 2. prepared for combing in Silver Lap machines.26 5. SPINNING In Ring spinning process the “roving” is attenuated with the help of drafting system and the drafted fiber strand is twisted and wound on a tube. the fibers are made parallel and assembled in the form of silver.5 DRAWING In this process. In comber the short fiber (low length fiber) and minute impurities are removed and. The arrangement is being progressed to spin the latest form of compact yarn by the employment of Elite and Com4 machines. The twisting and winding operations are performed with the help of ring traveler and spindle.1. These laps are then fed to comber machine. 1.3. 5. In assembly winding the required amount of single yarns of definite length (or . the assembly winding and twisting. SIMPLEX The object of simplex or speed frame process is to attenuate the drawn silver into finer strand. a definite number of combed silvers are doubled and drawn together to make the resulting silver more even and parallelized fibers. This product is roving. then.

5. a definite length of yarn is wound on cones. Waxing can also be done in this process. During winding the yarn is passed through electronic yarn clearer to detect and remove objectionable yarn faults. The softness can be increased or decreased as per the requirement. PRECISION WINDING In this process. Twisting maybe either carried out either with ring doubling machine or two-for-one twister. The object of singeing is to make the yarn lustrous. SINGEING: In this process. for some special end uses. which can be used. 6. . yarn is passed through a flame at high speed to remove the protruding fibers. 4.27 weight) is wound in parallel to single package (generally cheese form). yarn is passing through a special type of tension assembly to get the package more softly so as to get the dye package directly. CONVENTIONAL WINDING In this process.


6. Workers and management jointly arrive at an amicable solution through negotiations. 6. and not a decree from outside parties.2.29 6.1 Definitions: “Collective Bargaining is a mode of fixing the terms of employment by means of bargaining between an organized body of employees and an employer.1 Collective: Workers collectively bargain for their common interests and benefits. both the parties bargain from the position of equal strength. -Richardson.3 Flexible: Collective Bargaining cannot be rigid or inflexible as it‟s aim is to arrive at a consensus.2 Strength: With industrial democracy at work. Literature Review 6. The essence of collective bargaining is a bargain between interested parties.2. . or an association of employers usually acting through organized agents.2. 6. “Collective Bargaining takes place when a number of work-people enter into a negotiation as bargaining unit with an employer or group of employers with the object of reaching an agreement on the conditions of employment of the workpeople”.2 Features of Collective Bargaining: 6.” -Hoxie.

While doing so. The implementation of the agreement resulting from such a bargaining process is also voluntary. 6. both have to retreat from their original positions and accept less than what is asked for and give more than what is on offer. Through negotiations. which is an on-going process.2.7 Power relationship: Each party wants to extract the maximum from the other. is also a part of Collective Bargaining. Implementation of such an agreement.2.2.9 Bi-partite process: This process does not have third party intervention.4 Voluntary: Both the parties negotiate voluntarily in order to have a meaningful dialogue. the management tries to retain its control on workplace matters and unions attempt to strengthen their hold over workers without any serious dilution of their powers.30 6. they try to probe each other‟s views thoroughly before arriving at an acceptable solution. and expands over time. 6.8 Representation: The participants in Collective Bargaining do not act for themselves.2. Each participant is an authorized representative of workers and employers. To reach a consensus.2. 6.2. As a result. . They represent the claims of labour and management while trying to reach an agreement.5 Continuous: This process begins with negotiations but does not end with an agreement. the concept of Collective Bargaining changes. grows.6 Dynamic: The whole process of Collective Bargaining is influenced by the mental make-up of the parties involved. 6. 6.

4. Incentive payments. Unions do not want negotiations on production norms and disciplinary matters. 10. 5. 13. Examples: 1. Collective Bargaining has extended to a lot many areas. Grievances. It helps usher in democratic principles into the industrial world. 8.31 6. It lays down rules and norms for dealing with labour. techniques and practices. They believe that an agreement in this regard would put limits on their freedom to demand at a later stage. 14. Health and safety. Insurance and benefits. Union activities/responsibilities. Wages and working conditions. 12. Staff transfers and promotions. Disciplinary matters. Union recognition. Management rights . 9. It helps establish uniform conditions of employment with a view to avoid occurrence of industrial disputes. It helps resolve disputes when they occur. 6.3 Importance of Collective Bargaining: It helps increase the economic strength of both the parties at the same time protecting their interests. Work tools. Work norms. Wages and working conditions have been the primary focus areas of Collective Bargaining. 3. 7. 6. Changes in technology.4 Bargainable Issues: Any issue relevant to management and workers. But traditionally managements are not too keen on negotiating work methods arguing that is their exclusive right to decide how the work is to be done. Job security. 11. In recent times. 2.

5. This method of bargaining helps in making the workers realize the importance of raising productivity for organizational survival and growth. Neither party is willing to yield an inch. This would not be possible without each other‟s support and hence co-operative bargaining. Management may also agree to modernize and bring in new technology and invest in marketing efforts in a phased manner.4 Composite Bargaining: Workers tend to argue that productivity bargaining increases their workload. They are willing to negotiate the terms of employment in a flexible way. This index is not fixed at an exceptionally high level. This willingness is because of recession and the need to be able to survive in such difficult times.5.2 Co-operative Bargaining: Both parties are more open to coming down from their high horses and cooperating.3 Productivity Bargaining: In this method. a standard productivity index is finalized through negotiations. 6. introduction of high technology.5. As a result. workers tend to favor composite . workers‟ wages and benefits are linked to productivity. Initially. TELCO and Ashok Leyland resorted to co-operative bargaining when the automobile sector was going through a period of recession. Zero-sum game is where „my gain is your loss and your gain is my loss‟.5 Types of Bargaining: 6. Rationalization. 6. Workers crossing the standard productivity norms will get substantial benefits. In this method. Employees may now be willing to accept a cut in wages in return for job security.32 6.1 Conjunctive/Distributive Bargaining: Here. 6. the parties try to settle economic issues through a zero-sum game.5. tight productivity norms hit the unions and workers below the belt. the parties try to maximize their respective gains.

may result in lower employment in some other plant. manning standards. Through composite bargaining. environmental hazards.g. No. and duration of the agreement that is ultimately reached. their size. they also bargain for such issues that. involves the long process of Collective Bargaining. For the employer. Nature of the problem also influences the selection of representatives. Workers demand further equity in matters relating to work norms. E. -Is the problem minor? Yes. We see that workers are no longer solely interested in the monetary aspects to the exclusion of work related matters.6. this is the lesser evil when compared to strikes and lockouts. labour bargains for wages as usual. employment levels. In addition. sub-contracting clauses. -Is the problem very important? Yes.33 bargaining? In this method. to be discussed immediately. period of negotiations. No. can be solved immediately after it‟s presentation. 6. etc.6 The Collective Bargaining Process 6. . unions are able to prevent the dilution of their powers and ensure justice to workers by putting certain limits on the freedom of employers.1 Identification of the problem: Nature of the problem influences the Collective Bargaining process. can be postponed for some other convenient time. if permitted. diluting the bargaining powers of unions.

its‟ intensity and nature. each party. Chief negotiator presents the problem.2 Preparation for negotiation: This means that the problem can be solved only through Collective Bargaining. the actual period may vary depending upon circumstances. Thereafter. tends to think more about their counter arguments and how to say `no‟ to their offer. and the views of both the parties. 6. instead of paying attention to the point of view of the other party. Then. But once the negotiations begin. in turn becomes a binding contract for both the parties. if no amicable solution is reached. Fix up the time for negotiations. . both the parties sign the agreement. Both parties should try to reach an amicable solution. Principle to be followed by both the parties at the time of negotiations `being attentive to the other party‟ While negotiating. Both the parties need to maintain a positive attitude and should `think‟ rather than `feel‟ their way through the problem under consideration. Representatives of both the parties. Powers and authority of the negotiating representatives should be clarified. it is put on paper. duration of negotiations.3 Negotiation of Agreement: These are the people most likely to be found at the negotiating table: 1. When a solution is reached at. and  The ability to present views effectively. 2. the representatives of both the parties are invited to present their views.6.6. Selected representatives have to be educated about the complete problem and its‟ pros and cons. both parties may consider arbitration. which. Chief negotiator – generally from the side of management. On the other hand. taking into consideration the concerned legislations. Representatives have to be selected.34 6. Qualities of representatives:  Patience.  Composure while carrying out negotiations. etc.

Depending on the attractiveness of the agreement for either of the parties. both parties consult each other and can terminate or renew the agreement depending upon the circumstances. This leads to further negotiations. he may have to yield his ground.7 Collective Bargaining vs. So. 6. in reality. Negotiation Skills:  Collective Bargaining is a process by which the terms and condition of employment of workers are regulated by agreements between their bargaining agent and their employers. one may want a renewal while the other may want a termination. he will have his way. on the other hand. which is mutually agreed upon.4 Implementation: The agreement resulting from Collective Bargaining may be temporary. is a process of resolving conflicts between two or more parties wherein both or all modify their demands to reach a workable compromise.  If he is powerful.  The sacrifices to be made and the concessions to be yielded.  The position of the settlement point depends on the relative bargaining strength and skill of the negotiator. Collective Bargaining is a continuous process and not a temporary accommodation.35 6. parties shift their stand from an ideal position to a settlement point. In this case.  The process of Collective Bargaining also uses negotiations to reach a mutual consensus. Along with trade unions. 6.6. the idea of . depend to a large extent on the negotiating skills of the bargaining agent. If this power is challenged on justifiable grounds where other people see reason.  While negotiating issues. before its expiry.  Negotiation.8 Evolution of Collective Bargaining: Collective Bargaining rose and grew with the trade union movement. Roots of Collective Bargaining lie in Great Britain where it developed in response to the conditions created by the Industrial Revolution.

1 Assessment of Collective Bargaining in India: Other than in Ahmadabad and Mumbai. . In ports and docks. conciliation and arbitration. In 1918. collective agreements have not made much headway in India. industry and national level agreements became quite common. through the process of Collective Bargaining. Reasons:  Lack of statutory recognition of unions by the country as a whole. The Government of that time took steps like setting up of machinery for negotiations. such agreements spread to industries such as chemicals. petroleum. But the idea gathered interest only after the Second World War.9. tea. collective agreements were arrived at. so far. the negotiations were carried out at plant level. trade unions gained prominence much later – only after 1900. coal. Initially. 6.  Lack of provisions requiring employers and workers to bargain in „good faith‟. Moving from agreements at the plant level.9 The Indian Scenario: In India. And today. By early 1900. Gandhi . 6. Germany. banking and insurance. The idea spread across to France. organizations have learnt to cope with industrial conflict. The trade union movement and also Collective Bargaining agreements became popular after Indian independence.  The historical problem of „lack of trust‟ between the parties  Have all stood in the way of collective agreements contributing towards industrial harmony. right at the national level. oil and aluminum.as the leader of the Ahmadabad textile workers – advocated the resolution of conflict through Collective Bargaining agreements.36 bargaining collectively gained strength in the early part of the 18th Century. and USA.

2. 6. . Almost all unions are associating themselves with some political party or the other.9. Weak trade unions cannot initiate strong arguments during negotiations.9.3 Political interference: Interference of political leaders in all aspects of union matters has increased over the years.2. Indian unions are bogged down by the problems of multiplicity.9.1 Problems with unions: Collective Bargaining mainly depends on the strength of unions.2.5 Management attitude: In India.2. They do not appreciate their workers joining unions. inter and intra-union rivalry.4 Legal problems: Now that adjudication is easily accessible. 6. weak financial position and non-recognition.2.9. managements have a negative attitude towards unions.  Encouragement to strong and powerful trade unions.  Creation of conditions in which collective agreements have a chance to succeed.2 Problems from Government: The Government has not been making any strong efforts for the development of Collective Bargaining. So.9. 6. Not many strong unions in India.37  Proper conditions have to be created for the success of Collective Bargaining for promoting industrial peace. the Collective Bargaining process is losing its importance. unanimous decision is unlikely to be presented at the negotiating table.  Satisfactory arrangements for union recognition by statute. 6. Imposition of many restrictions regarding strikes and lockouts has removed the `edge` of the Collective Bargaining process. 6.9.2 Causes of limited success of Collective Bargaining in India: 6.

4 Top priority to plant level bargaining: The representatives of the employees must have a firm resolution to have an agreed solution to their individual matters.3 Suggestions for better functioning of Collective Bargaining: The Indian Institute of Personnel Management has offered the following suggestions: A progressive and strong management that is conscious of its obligations and responsibilities to the various stakeholders.3.2 Bargaining must precede other measures: Neither party should take any unilateral action. 6. Results of bargaining should be awaited. 6. there should be a delegation of authority to the local management.38 6.3. A truly representative – enlightened and strong – trade union should come into being and should function on strictly constitutional lines. 6.9. 6. There should be unanimity between labour and management on the basic objectives of the organization and a mutual recognition of their rights and obligations. Employers’ and employees’ attitude calls for a change: The workers and the employers should be quite clear that they are not looking for third party intervention in the form of litigation and adjudication. A fact-finding approach and a willingness to use new tools should be adopted for the solution of industrial problems.9.9. They want to sort out their differences in a peaceful way. When there are several units of the company.1 Pre-requisites of successful bargaining: Employer‟s recognition of the trade union. .3.

3.39 6.3.8 Progress review: Agreements should not be signed and forgotten. the workers and the management agents must rely on facts and figures to substantiate their claims. the arbitration clause can be resorted to.6 Reliance on facts and figures: In order to make the negotiations result into success.9.7 Written agreement: The final decisions should be incorporated in a written agreement. Giving up unfair labour practices. During their implementation. .9. 6.9.9. 6.9 Respect of agreement: Both the parties must respect the agreement and see that it is implemented in a fair and justifiable manner. This way any changes. The agreement should include the validity of the agreed matters as also the frequency of its review. 6.3.3. adjustments and amendments can be effected. regular meetings should be held between the representatives of both the parties to watch the progress of the implementation.3..5 Negotiations on differences: Both the parties should negotiate on their points of differences or demands with the sole purpose of making an agreement.10 Arbitration provision: The agreement must include an arbitration clause.9.3. Whenever the parties have any differences pertaining to the interpretation of the terms and conditions. 6. 6.9.

Make the recognition of a representative union as the sole bargaining agent.9.4 Recommendations of the National Commission on Labour: The NCL (1969) offered the following recommendations. Create the conditions to promote Collective Bargaining. 4. statutory. Gradually. withdraw the easy accessibility to adjudication and shift the emphasis to Collective Bargaining. . 5. Define the employees‟ right to `strike‟ work and place it in the overall scheme of things.40 6. 1. 2. 3. Intensify workers‟ education for building up internal union leadership and make workers more knowledgeable.


 Type of study: The type of the study was descriptive and analytical in nature.42 Statement of the problem: "A Study To Find Out Effectiveness Of Collective Bargaining In GTN Textiles Ltd. Methodology: To fulfill any task.  Source of information: The relevant data in the subject under study was collected from the following sources. Aluva ". it is necessary to follow a systematic method. Objectives: To study the procedure adopted by the company in dispute settling. . The methodology followed in this study is detailed here. To study the role of unions in collective bargaining Peculiar settlement or understanding reached by the management and unions by the way of collective bargaining. Descriptive studies aim at portraying accurately the attitudes or views of a particular group of people towards any situation.

manuals and existing records of the company.  Respondents: The respondents were the workmen of GTN Textiles.  Tools for data collection and analysis: The tool used for data collection was questionnaire. Ninety respondents were selected at random basis.43 1. Secondary data: The secondary data was collected from journals.  Sampling design: For the research. . Alwaye.  Sample size: Eight Hundred workmen in the organization constituted the universe. The investigator conducted personal interview with all the respondents chosen as sample. 2. Primary data: These data were collected from the workmen of the company. simple random sampling method was adopted. Also number of books was used. The tools used for data analysis include Pie diagram and percentage method.

During the pilot study it was evident that the workers were ready to give any information and they offered their full co-operation. Pre-tested questionnaire was used to collect information.44  Pre. a pre-test was conducted with five respondents. .  Pilot study: Pilot study was conducted in order to check the feasibility of the study and availability of data. Based on the pre-test questionnaire was redrafted.  Survey: Personal interviews were conducted with ninety out of the universe.Testing: In order to understand the effectiveness of the questionnaire designed.

45 STUDY DESIGN Table No. Time is also one of the limiting factors. Primary data 2. Personal interviews 1. Alwaye Simple random sampling 1. Questionnaire 2. Secondary data Sample survey Ninety Workers of GTN Textiles. Percentage Tools for data analysis 2. . Respondent‟s hesitancy in giving full information. Bar Charts Limitations of the study:    The sample size taken is only 90 because company permitted to interview only this number of employees. 1 A study to find out the effectiveness Title of the study of collective bargaining in GTN Textiles Ltd. Aluva Type of the study Sources of information Method of data collection Sample size Respondents Method of sampling Tools for data collection Descriptive and Analytical 1. Pie diagram 3.


2 Distribution 18 17 6 14 12 2 5 9 5 2 90 . 2 Designation Cleaning gang worker Sider Electrician Winder Dofingmen Operator Helper Packer Spinner Occupational reserve piecer Total Chart No.47 Distribution of respondents by designation Table No.

3 Period of Being with in the company Below 5 Years 6 – 10 Years 11 – 15 Years 16 – 20 Years 21 Years and above Total Chart No.48 Work experience of the employees Table No. 3 No. of Employees 10 25 15 10 30 90 .

4 Sl. 1 2 Opinion Yes No No. Do you think that strike is an effective weapon in today‟s scenario? Table No. of respondents 18 72 % of respondents 20 80 Chart No. No. This is because strikes decrease the productivity and job satisfaction. 4 Interpretation 80 percentage of the employees are saying that strike is not an effective weapon in today‟s scenario. .49 1.

1 2 Opinion Yes No No. Is the government machinery for settling disputes functioning effectively? Table No. 5 Sl. of respondents 25 65 % of respondents 28 72 Chart No. . No.50 2. 5 Interpretation 72 percentage of the employees believe that government machinery for settling disputes is not functioning effectively as it enters the disputes very late. by which time the problem would have worsened more than a repairable stage.

6 Sl. Do you think that the trade unions take an active role in the welfare of employees? Table No.51 3. 1 2 Opinion Yes No No. 6 Interpretation 84 percentage of the respondents think that the trade unions take an active role in the welfare of employees. . No. This is due to the fact that if they don‟t perform correctly they will create a bad impression in the minds of employees which will affect their very existence. of respondents 76 14 % of respondents 84 16 Chart No.

7 Interpretation 62 percentage of employees say union leaders pass on the information discussed with management as they believe union leaders strive for the common objective of workers. Are the union leaders passing up to date information regarding the management actions which are discussed and agreed by them? Table No. of respondents 56 34 % of respondents 62 38 Chart No. 1 2 Opinion Yes No No. While 38 percentage of employees believe that union leaders are working for Individual motive and does not pass on information discussed with management. 7 Sl. .52 4. No.

. of respondents 18 0 72 % of respondents 20 0 80 Chart No. 1 2 3 Opinion Capacity to present/ Bargain Appearance of the person Ability to provide quick and wise suggestions and present it.53 5. While selecting a leader what factors are you considering? Table No. No. 8 Sl. 8 Interpretation 80 percentage of the employees support providing quick and wise decision as the factors for selecting a leader to capacity to bargain as it increases the speed of solving their problem which is an advantage for employees. No.

9 Interpretation 76 percentage of employees believe that union leaders consider their opinion before presenting a matter to the management as the unions are committed towards participation of employees in management decision making. Is your opinion considered by the union leader before they present the matter to the management? Table No. No.54 6. . of respondents 68 22 % of respondents 76 24 Chart No. 9 Sl. 1 2 Opinion Yes No No.

The remaining 26 percentage believe that there is much more improvements to be done in the area of statutory welfare services. No. of respondents 67 23 % of respondents 74 26 Interpretation 74 percentage of the employees believe that GTN Textiles Ltd.55 7. 10 Sl. 1 2 Chart No. 10 Opinion Yes No No. This shows that company is providing comparatively good welfare services to the employees. provide a better statutory welfare services than their competitors. . Are you satisfied with the statutory welfare services provided in the organization? Table No.

of respondents 68 22 0 % of respondents 76 24 0 Chart No. . 11 Interpretation 76 percentage of the employees says that there is good industrial relation prevailing in the organization to 24 percentage. 1 2 3 Opinion Good Average Poor No. 11 Sl. No.56 8. This is evident from the fact that there has not been any strike in more than 15 years. What is your opinion about present industrial relation prevailing in the organization? Table No.

No. This is because GTN is providing pay according to the present industrial standards even with the present economic slowdown.57 9. 12 Sl. 12 Opinion Yes No No. Is your present pay and allowances sufficient to meet your daily necessities in life? Table No. of respondents % of respondents 76 14 84 16 Interpretation 84 percentage of the employees believe that the present pay and allowances are sufficient to meet the daily necessities of life as against just 16 percentage. . 1 2 Chart No.

No.25 % 26 %-50 % 51 %-75 % 76 %-100 % No. This is because GTN is providing pay and allowance according to the present industrial standards even with the present economic slowdown without much union pressure. 1 2 3 4 Opinion 0 % . 13 Sl. 13 Interpretation Almost all of the employees believe that only less than 75 percentage of their pay and allowance is a result of union activity. .58 10. of respondents 43 29 18 0 % of respondents 48 32 20 0 Chart No. what percentage of your pay and allowances is a result of union activity? Table No. According to you.

This is evident from the fact that there has not been a day lost due to strike for more than 15 years. 1 2 3 4 5 Opinion Highly Satisfied Satisfied Partial Dissatisfied Highly Dissatisfied No. How is your relationship with the managerial personnel‟s? Table No. 14 Interpretation More than 50 percentage of the employees believe that they have a satisfactory relation with the management. . of respondents 15 41 18 9 7 % of respondents 16 46 20 10 8 Chart No.59 11. No. 14 Sl.

No. 15 Sl. . Do you think that the shift hours and timing provided by the management is apt? Table No.60 12. 1 2 Opinion Yes No No. This is evident from the reduced number of absenteeism of employees in the organization. 15 Interpretation 78 percentage of the employees believe that the shift hours and timing provided by the management is apt as against 22 percentage. of respondents 70 20 % of respondents 78 22 Chart No.

Do you think that the implementation of VRS (Voluntary Retirement Scheme) is a necessary one in your organization? Table No. No. gain experience and exit the organization by taking a huge pay.61 13. of respondents 68 22 % of respondents 76 24 Chart No. 1 2 Opinion Yes No No. . 16 Sl. 16 Interpretation 76 percentage of the employees believe that VRS is a necessary one in the organization as they find it difficult to adjust themselves to new technologies . While 24 percentage is of the opinion that VRS gives employees an opportunity to use GTNs resources.

62 14. 17 Interpretation 80 percentage of the employees trust the managements transparent procedure in recruitment and selection as against 20 percentage who believes the management is not so transparent in its procedures. of respondents % of respondents 72 80 18 20 Chart No. No. . Is the management policy is amicable in case of recruitment and selection? Table No. 17 Sl. 1 2 Opinion Yes No No.

No. of respondents Yes 71 No 19 % of respondents 78 22 Chart No. 1 2 Opinion No. 18 Sl.63 15. 18 Interpretation 78 percentage of the employees says there are work committee or joint management committee in the organization as against 22 percentage who are not aware of any work or joint management committee. . Is there any work committee or joint management committee formed in the organization? Table No.

19 Sl. No. Do you think that the VRS will result the better performance of the organization? Table No. 1 2 Opinion Yes No No.64 16. 19 Interpretation 60 percentage of the employees believe that VRS will result the better performance of the organization as it helps aged employees who find it difficult to work leave with dignity. While 40 percentage is of the opinion that VRS gives employees an opportunity to use GTNs resources and gain experience and exit the organization by taking a huge pay. . of respondents % of respondents 54 60 36 40 Chart No.

.65 17. No. 20 Sl. 20 Interpretation All the respondents believe that the trade unions had asked for modifications/new demand during the validity of the last 4 long term settlement. of respondents % of respondents 90 100 0 0 Chart No. Opinion 1 Yes 2 No No. According to your knowledge did the trade unions ask for any modifications/new demand during the validity of the last 4 long term settlement? Table No. This is because of the change in economic and political conditions.

21 Interpretation All the respondents unilaterally agreed that any modifications/new demand during the validity of the last 4 long term settlement was settled in the form of Supplementary Settlement through bilateral talks. No. of respondents 0 90 0 % of respondents 0 100 0 Chart No.66 18. . 1 2 3 Opinion Through Strike Through Supplementary Settlement Through government Intervention No. If so how was it settled? Table No. 21 Sl.

67 19. 22 Sl. No. 22 Interpretation 84 percentage of the respondents believe that there was cordial relationship between the management and the trade unions during the validity of the last 4 long term settlement. . Was there cordial relationship between the management and trade unions during the validity of the last 4 long term settlement? Table No. of respondents % of respondents 76 84 14 16 Chart No. Opinion 1 Yes 2 No No.

of respondents % of respondents 90 100 0 0 Chart No. . No. 23 Sl.68 20. 23 Interpretation All the respondents are sure that there has been no token strike or non-cooperation from trade unions during the validity of the last 4 long term settlement. Opinion 1 Yes 2 No No. Was there any token strike or non-cooperation from trade unions during the validity of the last 4 long term settlement? Table No.


8. Most of the respondents have a good relationship prevailing in the organization. There was no token strike or non-cooperation from the workers during the period of long term settlement. 9. The demands were settled through supplementary settlement after bilateral talks. There was cordial relationship between management and trade union during the period of long term settlement. 4. Most of the respondents are aware about the work committee and joint management committee formed in the organization. 5. 7. . 3.70 FINDINGS 1. It is observed that the union leaders considered the employees opinion while they present a matter before management. The trade unions had asked for modifications/new demand on the then long term settlement during its validity. Most of the respondents are satisfied with the statutory welfare service provided in the organization. 11. 10. Respondents are satisfied with the shift hours and timing provided by the management 6. 60 percentage of the respondents opinioned that the introduction of VRS results in better performance of the organization. 2. It is observed that a good industrial relation is prevailing in the organization.

5.71 SUGGESTIONS 1. The quality circle and welfare amendments is to get improved. this will change the workers perception and work culture through proper discussions. The management in the organization must recognize its obligations and responsibilities towards workers and trade unions. 3. Managerial personnel have to give importance to the excess expenses met by the company. . Union must understand the economic implication and realize that union‟s demands must be met from the income and resources of the organization. 4. The workers can make effective use of collective bargaining process to achieve participative management and good working conditions. implementation and practice. They should not confine it for mere monetary benefits. 2.

The grievances are settled through formal channels. and peculiar settlements reached by the employer and employee are analyzed. Seven unions also exist here. Role of trade union.72 CONCLUSION Collective bargaining has been established in the organization as the basic method for solving of labor-management problems. As regard to those matters they are satisfied to the great extent. . The existence of union itself shows the effectiveness of collective bargaining has its tactical and strategic implications as well as its national and local importance.




Books  Rao, V.S.P. “Human Resource Management”, 2nd edition, Excel Books, 2000. Pg.513-528.

 Kothari C.R. “Research Methodology
 Sanjiv Misra, “India‟s Textile Sector” 1st edition, Anand books. Pg.23- 31.  B. Saloo, “Problems & Prospects of Textile Industry” 1st edition, Flipping Publishing. Pg. 17-35.

Journals  GTN Textile - Quality Manual 2008  GTN Textiles - Annual Report 2008

http://www.gtntextiles.com/homepage.html http://en.wikipedia.org/wiki/Textile_industry http://en.wikipedia.org/wiki/Research_methodology



Is your opinion considered by the union leader before they present the matter to the management? Yes No Are you satisfied with the statutory welfare services provided in the organization? Yes No : : 2 3 4 5 6 7 .76 QUESTIONNAIRE Designation Years at Service Tick the appropriate answer 1 Do you think that strike is an effective weapon in today’s scenario? Yes No Is the government machinery for settling disputes functioning effectively? Yes No Do you think that the trade unions take an active role in the welfare of employees? Yes No Are the union leaders passing up to date information regarding the management actions which are discussed and agreed by them? Yes No While selecting a leader what factors are you considering? Capacity to present/ Bargain Appearance of the person Ability to provide quick and wise suggestions and present it.

25 % 26 %-50 % 51 %-75 % 76 %-100 % 11 How is your relationship with the managerial personnel’s? Highly Satisfied Satisfied Partial Dissatisfied Highly Dissatisfied 12 Do you think that the shift hours and timing provided by the management is apt? Yes No 13 Do you think that the implementation of VRS (Voluntary Retirement Scheme) is a necessary one in your organization? Yes No 14 Is the management policy is amicable in case of recruitment and selection? Yes No .77 8 What is your opinion about present industrial relation prevailing in the organization? Good Average Poor 9 Is your present pay and allowances sufficient to meet your daily necessities in life? Yes No 10 According to you.? 0 % . what percentage of your pay and allowances is a result of union activity.

Yes No 18 If so how was it settled? Through Strike Through Supplementary Settlement Through government Intervention 19 Was there cordial relationship between the management and trade unions during the validity of the last 4 long term settlement? Yes No 20 Was there any token strike or non-cooperation from trade unions during the validity of the last 4 long term settlement? Yes No .78 15 Is there any work committee or joint management committee formed in the organization? Yes No 16 Do you think that the VRS results in the better performance of the organisation? Yes No 17 According to your knowledge did the trade unions ask for any modifications/new demand during the validity of the last 4 long term settlement.