Presented By :

Nimisha Gupta

MBA(HR)-IInd Sem.

Collective Bargaining In India

History of collective bargaining in India can be studied underThree different periods: From 1920 to 1950 From 1951 to 1969 From 1970 onwards

These periods reflect distinct features of collective bargaining in the country

History

1920-1950 •Bargaining was in the stage of infancy•It was not a very common method of regulating labour-management relations in India

1951-1969•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

Trade unionism made its first appearance at the end of the Ist World War with the establishment of the Madras Labour Union in 1918

But not until 1920, any serious effort was made to bargain collectively

Gandhiji advocated the formula for resolving industrial disputes by negotiation and mutual discussion between employers and labour

In the year 1920, a group of employers and their workmen (in the cotton textile industry at Ahmedabad )concluded collective bargaining arrangements to regulate labour-management relations

1920-1950

The Bombay Industrial Dispute Act of 1938, created an atmosphere conducive to the growth of collective bargaining in the country

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

The Bombay Industrial Relations Act 1946, which replaced the 1939 Act, incorporated the provision of settlement of industrial disputes by conciliation officers and the Board of Conciliation.

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.

Thus, it can be said that during 1920-1950 , collective bargaining was present on industrial relations scene in India.

A number of steps were taken by the Government of India, which directly or indirectly had some impact on collective bargaining in the country

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.

The Industrial Policy Resolution of 1956 further declared that “in a socialist democracy , labour is a partner in the common task of development”

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

1951-1969

The then Labour Minister, Gulzarilal Nanda, introduced a voluntary code in India called the Code of Discipline in Industry. Approved in 1958 by the Indian Labour Conference It affirmed the principle “to settle all future differences ,

disputes and grievances by mutual negotiation, conciliation, and voluntary arbitration”

The Code helped to facilitate the process of collective bargaining by placing a moral obligation on employers to recognize trade unions as bargaining agents.

Between 1961 and 1967 recognition was secured for 48 trade unions in the centre and for 268 unions in the states.

The Inter-Union Code of Conduct was also agreed upon during the same period under which the four central labour organizations agreed that Every employee should be free to join the union of his choice

and no coercion should be exercised in the matter; There should be no dual membership of unions; And the ignorance and backwardness of workers should not be

exploited by any organization

Some new trends started taking place in the field of collective bargaining in the country

Movement of collective bargaining from the plant or enterprise level to industry level in the country

With the constitution of Joint Wage Negotiating committee (JWNC)for the steel industry at the national level , collective bargaining became centralized.

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.

On the recommendations of national apex body , National Industries Committees were set up.

1970 onwards…

Extent of coverage of collective bargaining

Patterns of collective bargaining

Duration of agreements

Types of collective agreements

Contents of collective agreements

New Trends

The Government’s policy so far has been to encourage collective bargaining in a voluntary way

Whatever collective bargaining emerged initially has been mainly at the plant level The varying sizes of the plants and the consequent dissimilarities

in productiveness and technologies which do not permit uniform employment conditions

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

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

The Indian Government needs to adopt comprehensive statutory measures with regards to collective bargaining

Overview

 For an effective Collective Bargaining in India the following suggestions are made : 

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. 

The State should enact suitable legislation providing for compulsory recognition of trade union by employers. 

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.

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.

Collective Bargaining by B N Shukla

Dynamics of Industrial Relations by Mamoria, Mamoria and Gankar

http://www.articlesbase.com/organizational-articles/collective-bargaining-process-in-india-a-critique-539870.html

http://cms.iuf.org/?q=node/170

References

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