It is a collective action taken by the workmen over a common problem with the employer. It is very essential as far as international institutions are concerned. It is fruitful for Industrial peace.
It is a fundamental right. It is rooted in the ILO (International Labour Organization) Constitution and referred as
such in the 1998 ILO Declaration on Fundamental Principles and Rights at Work.
It is a key
means through which employer and their organizations and trade unions can
establish fair wages and working condition. The dispute is settled amicably and
voluntarily although reluctantly between labour and management.
In India, at
the beginning of the 20th-century people started to form groups to
improve their bargaining power with respect to basic service conditions and
wages. It was after the 1st World War; the workers started the trade
union movement. In 1926, NM Joshi, the General Secretary of the AITUC (All
India Trade Union Council) recommend for the separate legislation to the
government and in 1926 the Trade Union Act was enacted in order to give legal validity
and protection to the trade unions.
The Supreme Court in the case of Karol Leather Karamchari Sangathan v Liberty Footwear Company[1] held that the collective bargaining is the technique by which the dispute as to the condition of employment is resolved amicably rather than coercion. It is a process of discussion and negotiation between the employer and the workers regarding their terms of employment and working condition.
Stages of Collective Bargaining :
1. Charter
of Demands – it is prepared by the trade union and is presented before the
employer or the management.
2. Negotiation
- whatever in there in demand, only that particular points shall be discussed
and negotiated.
3. Collective
Bargaining Agreement - after the negotiation is done and both the parties are satisfied,
then we come out with a collective bargaining agreement. which is binding on
both the party.
4. Strike
- public utility sector employees must provide 6 week's' notice of a strike and
may strike for 14 days after providing such notice (a cooling-off period).
5. Conciliation - a conciliation proceeding begins once the conciliation officer receives a notice of strike or lockout. During the cooling-off period, the state government may appoint a conciliation officer to investigate the dispute and promote settlement.
Conciliation proceedings are concluded with one of the following recommendations
–
· Settlement
· No
settlement
· Reference
to a labour court or
· An
industrial tribunal
Level of
Collective Bargaining –
· National
level industry bargaining
· Industry-cum
regional bargaining
· Enterprises
or plant level bargaining
Collective
Bargaining Agreement in India
· Bipartite
(or voluntary) agreement - only between 2 parties and no 3rd party is involved.
· Settlements
– where 3rd party is involved. And parties come to a settlement or
compromise.
· Consent awards - where arbitrators are involved, and they pass an award.
Ram Prasad Viswakarma v The Chairman, Industrial Tribunal[2]
The Supreme
Court observed that it is well-known how before the days of collective
bargaining, labour was at a great disadvantage in obtaining reasonable terms
for contracts of service from its employer.
As a trade
union developed in a country and Collective Bargaining became the rule, the
employer found it necessary and convenient to deal with the representatives of
workmen, instead of individual workmen, not only for the making or modification
of contract but in the matter of taking disciplinary action against ones or
more workmen and as regard of other disputes.
Bharat
Iron Works v Bhagubhai Balubhai Patel & Ors[3]
In the
democratic social welfare state, legitimate trade union activities, which must
shun all kinds of physical threats, coercion or violence upon workers must
march with a spirit of tolerance, understanding and grace in dealing on the
part of the employer. Industrial activities can flow smoothly in peace only
when there is mutual cooperation between the employer and workmen and employer
shall not consider the Trade Union Act as irksome by the best interest of its
business. Dialogue with the trade union will help in striking down the issues
and contentions of the workers. These definitions will only bring elements in
the concept, i.e. civilised confrontation between the employer and employees
and the whole process of settlement is regulated by statutory provision.
Amalgamated
Coffee Estates Ltd. v Workmen[4]
The Supreme
Court held that the process of negotiated settlements is at the heart of the
solution of the collective disputes. Unlike the settlement in the conciliation
proceedings, the settlement took place by majority union is equally binding on
both the parties, if the proceeding held in a fair and reasonable manner. Industrial
Dispute Act essentially deals with the collective dispute[5]
Tamil Nadu Electricity Workers Federation vs.
Madras State Electricity Board[6]
The Madras Hugh Court held that the whole theory of
organized labour is based upon the unequal bargaining power between the capital
employer and individual or disunited workmen. It is in the interest of labour
that statutory recognition is provided to the trade union and their capacity to
represent workmen.
Workmen of Dimakuchi Tea Estate vs. The
Management of Dimakuchi Tea Estate[7]
The Supreme Court has laid down the salient features
of the Industrial Dispute Act:
1. Promotion
of measure for securing peace and amenity in industry between the employer and
workers
2. An
investigation and settlement of the industrial dispute between 1. employer and
workmen, 2. workmen and workmen and 3. employer and employer.
3. Prevention
of illegal strikes and lockouts
4. Collective bargaining
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