Wage Fixation Through

Collective Bargaining

Compensation Management

What Is Collective Bargaining?• Collective bargaining is a process of negotiationbetween employers and a group of workers aimed atagreements to regulate working salaries, workingconditions, benefits, and other aspects of workers'compensation and rights

• The interests of the workers are commonlypresented by representatives of a trade union towhich the workers belong.

• The collective agreements reached by thesenegotiations usually set out wage scales, workinghours, training, health and safety, overtime,grievance mechanisms, and rights to participate inworkplace or company affairs.

• A collective agreement functions as a labourcontract between an employer and one or moreunions.

Role of Government in collective bargaining• It can decide certain working conditions by

law. For example, setting minimum wages,preventing ethnic discrimination and othersuch acts can be enforceable by law.

• It may settle disputes which the employerand the labours are unable to settle bythemselves.

• It may provide certain benefits directly, likepensions.

• It may set ground rules which govern theparties conduct. For example restricting andregulating the conditions under whichlabour can do strikes.

Collective Bargaining in India

• The commencement of collective bargaining inIndia can be traced in the year 1918 inAhmedabad

• National Commission on Labour andCollective Bargaining- This commission wasset in 1966 in India which aimed at makingcomprehensive investigations into almost allthe problems relating to labour.

• The First Five-Year Plan duly recognized theneed for collective bargaining to resolvelabour disputes and maintain peacefulindustrial relations in the country.

Obstacles to Collective Bargaining in India

Process of collective bargaining is not very encouraging in India, following can be the reasons-

• Multiple unions

• Defective laws

• Mediation by political leader(s)

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