What is mean by Collective Bargaining? Meaning, definition, advantages and disadvantages of Collective Bargaining.

1) Introduction : 

              The role of Collective Bargaining in the modern industrial setup is assuming importance as a peaceful method to resolve the individual disputes. Collective Bargaining is a process by which problems of wages and conditions of employment are settled amicably, peacefully and voluntarily between labour and management. In the context of India where there is always excess of supply over demand in the labour market, a labourer accepts employment at the dictated terms. As an individual, he finds himself unable to protect his legitimate interests. If he is a member of a Trade Union bargains with the employer regarding the terms and conditions of employment, he finds himself in a commanding position.


2) Meaning : 

               The term ' Collective Bargaining' was coined for the first time by Sidney and Webb in their famous book ' Industrial Democracy' which was published in 1897. Collective bargaining is that arrangement whereby the wages conditions of employment of workman are settled through a bargain between the employer and the workmen collectively whether represented through their Union or by some of them on behalf of all of them. This the Collective Bargaining means Bargaining between an employer or group of employers and a bona fide labour Union. Collective bargaining implies a community of interest.


3) Definition of Collective Bargaining:

It is very difficult to define Collective Bargaining, however, there are some definitions as stated bellow -

Ludwing Teller: Teller has defined Collective bargaining " as an agreement between a single employer or an association of employers on the one hand and the labour Union on the other hand which regulates the terms and conditions of employment".

Encyclopedia Britannica: Encyclopedia Britannica defines that Collective bargaining is a negotiation between an employer or group of employers and a group of working people to reach an agreement on the working conditions.

Bakke and Kear: according to Bakke and Kear Collective Bargaining is a two-way process. It is mutual give and takes process. It requires both parties involvement. Essentially, a successful Collective bargaining is an exercise in graceful retreat-retreat without seeming to retreat. This involves ascertaining the maximum concession of the opposing negotiator without disclosing one's ultimate concession. In this sense, all negotiations are exploratory until the agreement is consummated.


4) Origin of Collective Bargaining: 

                 The collective bargaining is the offshoot of Trade Union activity. It is a historical fact that before the advent of Collective Bargaining era in the labour market. The labour was at great Disadvantage in obtaining reasonable terms for the contract of service from his employer. With the process of emergence of Unionism in the country the collective bargaining became a rule and the employer found it necessary and convenient to deal with the representatives of the workers, instead of individual workmen, not only for the making or modification of the contracts but in the matter of taking disciplinary actions against one or more workmen and as regards all other disputes.

5) Object of Collective:

                    Bargaining The main object of Collective Bargaining is to harmonize the relationship, harmonize the relations between the workmen and employer and to promote industrial peace.

6) Advantages and Disadvantages of Collective Bargaining-

 Advantages of Collective Bargaining - 

i) Collective Bargaining imposes obligations on both parties to the dispute and creates the code of conduct.

ii) The parties to the dispute undertake not to resort to strikes and lockouts and ensure peace and industrial harmony.

Disadvantages of Collective Bargaining -

i) Hike in wages, other amenities to workmen and improvement of service conditions results in higher costs of production.

ii) Political interference in Collective Bargaining gives room for adverse effects.


7) Collective Bargaining in India:

                         Collective Bargaining in India is of recent Origin. During the British period, the trade union was totally suppressed. Trade Unionism is accorded recognition in 1926 with the passing of the Trade Unions Act. Recent past, Collective bargaining witnessed tremendous growth and development not only in the Industrial Sector but also in the Agricultural Sector. In India Collective Bargaining agreements are enforceable under section 18 of the Industrial dispute Act 1947 by filing a petition in Labour Court or Industrial Tribunal.