20.4.

2022
Collective bargaining
Definition 1: Collective bargaining is a process of negotiation about working conditions and
terms of employment between employers and the representatives of the workers in order to reach
an agreement.
Various statutes provide guidelines but if the management intends to deviate from those but
choose to follow other means, there should be a separate agreement. EG. Bonus act. The org.
may plan to give something beyond what the law has given. The laws facilitate forming of
mutually agreeable agreements. Agreement paving path for such terms and conditions that would
be abided by, by the parties.
Eg. Tata group has taken over Air India. Trade union of air India may have concerns if the
workers are absorbed. Will there be excessive workforce? Retrenchment? An agreement is
drawn between the two parties which would have provisions that would be agreed by both.
Identification of the problem  coming to a solution is the entire process.
No third-party intervention. Strictly between the management and representatives of the
employees to amicably solve persisting problems.
EG. Maruti Suzuki case. If because of unruly behavior of the manager, some workers were
suspended. Other workers may appeal for reinstatement of a worker due to improper procedure.
Because of poor implementation of policy framework, procedure and the manager commits any
act, there can be a collective bargaining process. If this process fails, the workers may resort to
strike and put forth their demands by halting work. Strictly adhering to the framework of law,
raise a dispute.
Definition 2: Collective bargaining refers to negotiation, administration and interpretation of
written agreement between the two parties that covers for a specific period of time.
In this process, administration has to implement whatever has been decided in case of any terms
of interest. HR department has to implement whatever has been agreed to. the written down
agreement may have certain interpretative information. It should be based on the agreement itself
and not beyond it. All those who had agreed upon shall not have an opportunity to raise a dispute
later because they enter the agreements with complete knowledge of what was being framed. The
scope of the assessment is pre-agreement phase. Interpretation, choosing is done before the
agreement. After it is framed, they would not have any chance to go back on their agreement to
modify. If a modification is warranted, it may be done separately in a subsequent agreement.
Definition 3: The collective bargaining is not just a means of raising wages, improve conditions
of employment nor is it merely a democratic form of compulsory discussion. It is a technique of
bringing two power groups unequally placed to formulate a common agenda of employment
relationships.
Power groups: management will be financially strong so it would decide whether to give
employment or not. Poor power representation in workers. Workers have a skill, a technique.
Their strength. Two different groups who are socially, economically differently placed would
come together to reach common ground. The ease with which a management can go to litigation
is not possessed by the workers.
Sixth pay commission: When there is a pay revision, anything that is changing, the management
will give a document stating that no objections will be raised, no disputes to take place once your
position has changed. When the management gives such an authorization, it is an unfair labor
practice. This may lead to a contentious issue. The terms and conditions of work would be
violated by the workers themselves, they may take funds from political parties, other trade
unions, etc. Unfair trade practices are those acts by which one party tries to take advantage of the
other. This may require collective bargaining.
21.5.2022
Salient features of collective bargaining
1. A process, not a technique
2. Group activity
Some of the members of the trade union would be identified as bargaining agents.
3. Bipartite process: no third-party intervention. Third party would mean governmental
intervention.
4. The culmination of collective bargaining should be with an agreement. All parties are
signatories to the agreement. If any one of them refrains from signing the document, there
would be no agreement.
5. When an agreement is formulated, what if this agreement is not implemented in its spirit?
Even those concerns should be addressed. What if there is a grievance? All the aspects of
‘what if’ should be addressed beforehand, pre-decided.
BROAD ISSUES
If any principle of law has been violated EG. Payment of less than minimum wages. The workers
should recognize that there is an act under which they can voice their issues.
1. Wage fixation: the employer can choose to give minimum wages. Determination of better
wages should be decided by collective bargaining. Any changes in the wage structure
could be discussed within the purview of collective bargaining.
2. Increments: what should the rate of increment be? Payment of bonus to workers.
3. Terms and conditions of work
4. Overtime wages: timeline should be followed. Calculation of overtime is also mentioned
in the companies’ act. If any better overtime wages could be determined, they c=should
be added in the agreement
5. Healthcare, transportation, grievance procedure: Any grievance not amounting to dispute
6. Productivity standards: workers should adhere to those
7. Performance standards and assessment
 8. Automation
9. Modernization
10. Union and management relationship
11. Workers’ participation especially in case of factories and industries.
12. Worker representative in the board
3 types of collective bargaining processes:
1. Planned level collective bargaining
Institution is one single business entity. No subsidiary units or extensions. Confine to a
plan
2. Industry level collective bargaining: industries could have commonality. EG. Cement
industries: similar working hours, wages, etc.
sense of belongingness between similar industries. This may unite the workers.
Common industry-specific collective bargaining process.
3. National level collective bargaining: country-wide concern of all the workers concerned.
Industrial relations code. When a notification comes, there would be a commotion and
thus a national level mitigating process may be required. Common problems of all the
workers across India would be the concern of national level collective bargaining
process.
Phases of collective bargaining:
1. Charter of Demand:
strikes, lockout. Collective bargaining is simply placing of a demand to lead a collective
bargaining process. Dispute bargaining process is completely different.
Management should be able to highlight what is a situation. on the same lines, the
workers’ representatives are interested in putting forth their own demands. The demands
should be legitimate and such that the organization can fulfill. Should be within the
policy framework. Identification of a bargaining agent. Person who understands nuances
of why a demand is placed. Registered trade union and recognized by the management.
Bargaining agent should have the credentials to behave like a bargaining agent. Such an
agent may be more than one. Charter of demand is prepared. The demand should be spelt
out in the initial process itself.