Presented By : Nimisha Gupta MBA(HR)-II nd Sem.

y History of collective bargaining in India can be

studied under Three different periods: 
From 1920 to 1950  From 1951 to 1969  From 1970 onwards

y These periods reflect distinct features of collective

bargaining in the country


Bargaining was in the stage of infancy It was not a very common method of regulating labourmanagement relations in India


In this period actual emergence of bargaining was witnessed It was established as a method of settlement of industrial disputes and determination of terms and conditions of employment

1970 onwards

Collective bargaining took a more general form It widened its scope from plant or enterprise level to the industry or the national level During this period some new trends in CB also developed

y Trade unionism made its first appearance at the end of the Ist

World War with the establishment of the Madras Labour Union in 1918 collectively

y But not until 1920, any serious effort was made to bargain y Gandhiji advocated the formula for resolving industrial

disputes by negotiation and mutual discussion between employers and labour the cotton textile industry at Ahmedabad )concluded collective bargaining arrangements to regulate labourmanagement relations

y In the year 1920, a group of employers and their workmen (in

y The Bombay Industrial Dispute Act of 1938, created an

atmosphere conducive to the growth of collective bargaining in the country

y The establishment of bodies like Indian Labor Conference and

The Standing Labour Committee in 1942 created an environment much needed for the success of collective bargaining in the country 1939 Act, incorporated the provision of settlement of industrial disputes by conciliation officers and the Board of Conciliation.

y The Bombay Industrial Relations Act 1946, which replaced the

y The Industrial Disputes Act 1947, allows the works committee in

addition to the other settlement authorities which further paved the way for growth of mutual negotiations in industries. was present on industrial relations scene in India.

y Thus, it can be said that during 1920-1950 , collective bargaining

y A number of steps were taken by the Government of India, which

directly or indirectly had some impact on collective bargaining in the country

y In the first 5-year plan (1951-56), it was stated that the workers

right of association, organization and collective bargaining was to be accepted without reservation as the fundamental basis of mutually satisfactory relationships. in a socialist democracy , labour is a partner in the common task of development when a clause was added, making settlement by mutual agreement between employer and workmen otherwise than in the course of conciliation proceedings binding upon the parties.

y The Industrial Policy Resolution of 1956 further declared that

y Section 18 of Industrial Disputes Act, 1947 was amended in 1956

y The then Labour Minister, Gulzarilal Nanda, introduced a

voluntary code in India called the Code of Discipline in Industry.
y Approved in 1958 by the Indian Labour Conference y It affirmed the principle to settle all future differences ,

disputes and grievances by mutual negotiation, conciliation, and voluntary arbitration y The Code helped to facilitate the process of collective bargaining by placing a moral obligation on employers to recognize trade unions as bargaining agents. y Between 1961 and 1967 recognition was secured for 48 trade unions in the centre and for 268 unions in the states.
y The Inter-Union Code of Conduct was also agreed upon
y Every employee should be free to join the union of his choice

during the same period under which the four central labour organizations agreed that
and no coercion should be exercised in the matter; y There should be no dual membership of unions; y And the ignorance and backwardness of workers should not be exploited by any organization

y Some new trends started taking place in the field of collective

bargaining in the country

y Movement of collective bargaining from the plant or enterprise

level to industry level in the country

y With the constitution of Joint Wage Negotiating committee

(JWNC)for the steel industry at the national level , collective bargaining became centralized.

y A bipartite, National Apex Body was set up in 1975 by the

Government to address the general problems of industrial relations in the private sector.

y On the recommendations of national apex body , National

Industries Committees were set up.

y Extent of coverage of collective bargaining y Patterns of collective bargaining y Duration of agreements y Types of collective agreements y Contents of collective agreements

y The Government s policy so far has been to encourage collective

bargaining in a voluntary way

y Whatever collective bargaining emerged initially has been mainly

at the plant level y The varying sizes of the plants and the consequent dissimilarities in productiveness and technologies which do not permit uniform employment conditions y The absence of homogenous labour market owing to lack of uniform skills and pattern of training which does not promote free mobility of labour so that uniform employment conditions could be evolved for the industry as a whole y The plant union leadership which at present enjoys enormous powers and faces prospects of political climb is reluctant to get integrated into an industry wise union where its powers are likely to be restricted measures with regards to collective bargaining

y The Indian Government needs to adopt comprehensive statutory

y For an effective Collective Bargaining in India the

following suggestions are made :

y Recognition of trade union has to be determined through

verification of fee membership method. The union having more membership should be recognized as the effective bargaining agent.

y The State should enact suitable legislation providing for

compulsory recognition of trade union by employers.

y The provision for political fund by trade unions has to be

done away with-since it invariably encourages the politicians to prey upon the union.

y State has to play a progressive role in removing the

pitfalls which stand in the way of mutual, amicable and voluntary settlement of labour disputes.

y Collective Bargaining by B N Shukla y Dynamics of Industrial Relations by Mamoria,

Mamoria and Gankar


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