Collective Bargaining in India

Importance of Collective Bargaining

Collective bargaining is an important method of regulating relations between employers and employees. It involves negotiation, administration and enforcement of the written contracts between the employees and the employers. It also includes the process of resolving labour-management conflicts.

Healthy collective bargaining generates a spirit of self-confidence and self-reliance among the workers. It is based on a ‘give and take’ policy on both sides. Collective bargaining leads to increased goodwill and understanding between labour and management. This in turn helps to create peaceful and comfortable atmosphere in industrial relations.

Importance to employees

 Collective bargaining develops a sense of self respect and responsibility among the employees

 It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group

 Collective bargaining increases the morale and productivity of employees;

 It restricts management’s freedom for arbitrary action against the employees. Moreover, unilateral actions by the employer are also discouraged;

 Effective collective bargaining machinery strengthens the trade unions movement;

 The workers feel motivated as they can approach the management on various matters and bargain for higher benefits;

 It helps in securing a prompt and fair settlement of grievances. 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;

 It helps in securing a prompt and fair settlement of grievances. 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.

Importance to employers

 It becomes easier for the management to resolve issues at the bargaining level rather than taking up...