Collective Bargaining in India

The collective bargaining in India remained limited in its scope and restricted in its coverage by a well defined legal structure. In reality, the labour laws systematically promoted and keep in existence a duality of labour-formal sector workers enjoying better space for collective bargaining and informal ones with no scope for collective bargaining.

Acts and Collective Bargaining

• The Factories Act, 1948 provides for the health, safety, welfare, and other aspects of workers while at work in the factories. Under this Act, an establishment where the manufacturing process is carried on with the help of power and employs 10 workers or an establishment where the manufacturing process runs without power and employs 20 workers is considered to be a factory.
• Employees Provident and Miscellaneous Provisions Act, Maternity Benefit Act, and the Payment of Gratuity Act apply to all establishments with 10 or more workers. Minimum Wages Act applies to all establishments and all workers, but the Payment of Wages Act applies only to those establishments with 10 or more workers, and also only to those workers getting wages less than Rs 1600 per month.
• Industrial Disputes Act, 1947 lays down the procedures for the settlement of industrial disputes. Its procedural aspects are applicable to all enterprises for the settlement of industrial disputes. However, Chapter V B does not apply to any establishment employing less than one hundred workers, and Chapter VA does not apply to any establishment employing less than 50 workers.

Legal Boundaries for Collective Bargaining:

• No ratification of ILO Convention –C-87 and C-98.
• Limited scope and coverage of collective bargaining within legal boundaries of Trade Union Act and Industrial Dispute Act.
• Section 10K: can be imposed to prohibit strikes or lock outs.
• Section 22: In public utility services there must be a notice at least 6 weeks before strike.
• Section 23: Prohibition of strikes during the pendency of conciliation, arbitration and court proceedings.
• Trade Union activities are granted immunity from the applicability of CRPC but nor in case of illegal strikes.

Agreements prevalent in India

The following types of collective bargaining agreements are prevalent in India:

Bipartite agreements –

These agreements are a result of voluntary negotiations between employer and trade union and are binding, as per the provisions of the ID Act.

Settlements –

It is tripartite in nature as it involves the employer, trade union, and the conciliation officer. Settlements arise out of specific disputes which is resolved by a reconciliation officer. The parties are free to finalize the terms of the agreement and must inform the conciliation officer within a specified timeframe if such an agreement is reached after his withdrawal.

Consent awards –

These are agreements reached while a dispute is pending before an adjudicatory authority. Such agreement is incorporated in the authority’s award and although the agreement is reached voluntarily between parties, it becomes binding under the award passed by the authority.

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