NATIONAL LAW UNIVERSITY ODISHA

PROJECT WORK- LABOUR LAW-I

COLLECTIVE BARGAINING PERSPECTIVES

SUBMITTED TO:

DR. ARUNA SRI LAKSHMI

(Professor of law)

DR. SOHINI MAHAPARTA

(Research Associate cum Teaching Assistant)

SUBMITTED BY:

Akshay Khandelwal (16bba003)

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 INTRODUCTION

In the present article the author has discussed about the collective bargaining perspectives. In
furtherance to this, it was stated that Collective bargaining perspectives is a very broad and all-
encompassing topic which could in itself be the major theme for a two-day conference of this
type. Since the present paper is to serve as a back ground paper for an intensive analysis of union
structure, the author attempted to present it in a modest way to highlight what can be considered
to be some of the major factors in our collective bargaining system having relevance to a
discussion of union structure. Following points has to be taken into consideration as they are
very significant. The factors are as follows:

 The current socio-economic environment within which collective bargaining functions;

 The parties involved in the collective bargaining
 The structure of negotiating units and the procedures for solving conflicting interest
 Some suggestions of a speculative nature about the future functioning of collective
bargaining and the role and structure unions and other groups within the system.

The author while explaining all the above mentioned essentials, view them all from a future
perspective, the author relates the current position as with the situations faced by the Canada in
the near future. In the modern time of changing trends, the traditionally working institutions,
machinery and most importantly ideology has to be changed. To intact the significance of
collective bargaining, the interest of an individual cannot be overlooked but must be taken in
consonance with the public interest. For this, all the parties of the collective bargaining has to
work together and properly with the same ideology which will be for the betterment of the all the
parties of the bargaining.

The author also presented data based on a survey to show the radical changes in the system of
collective bargaining. It shows the gradual change in the recent years which worked as a basis of
author’s study of analyzing bargaining trends. Thus, the later part is dealing with all the elements
discussed above in detail.

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 RESPONSE IN SUPPORT OF THE AUTHOR

In the modern world of capitalism and industrialization, for the benefits and equal treatment of
the employees in any sector, collective bargaining plays an important role. Collective bargaining
ensures the proper and adequate facilities to be provided by the employer to the employee of the
company. The author in the present article while observing the collective bargaining perspective
in Canada comments on different factors essential for the collective bargaining perspective. One
of the major elements is socio economic environment on which the said concept is heavily
dependent.

The author while discussing the future for innovation and progression, public interest should be
view in the consonance of the interest of the individual as the society reluctantly subordinates
individual needs and aspirations to national needs and aspirations. This can only be done by the
effective collaboration between governmental and non-governmental organizations.

As the today’s society is changing drastically but on the other hand our structure and institution
worked in the traditional ways which arises very serious challenges for the functioning of the
system as a whole. So it is mandatory to boost the cost cutting process. And by improving the
position in the competitive world Finance minister of Canada, Benson set up a wage price review
board as a part of solution. This shows that the Canadian government is willing to take steps to
maintain the progress of collective bargaining in the modern world of competition in the
international market.

Further, the author observed the parties in the collective bargaining system. Moreover, the author
said that the major parties in any collective bargaining system are labor, management, and
governments. The latter representing the public interest. Stating the significance of the trade
unions it was surveyed that all of employees who were engaged in some form of collective
bargaining are added, the total would currently be about 2.4 million that shows the potential of
the trade unions. The author further elaborates the lack of management organization in Canada
as they only had the Canadian Chamber of Commerce, the Canadian Manufacturers Association
and numerous industry associations, but none of these speaks authoritatively for all employers.
On the other hand, Canada had eleven political parties having a great influence the shape and
diversity of the system of collective bargaining. But on the other hand, this diversity sometimes

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leads to the complications such as the problems rise in the absence of legislative and
administrative diversity. The author was right in held that too much diversity and lack of
management gives rise to many problems with regarding to the efficient functioning of collective
bargaining system.

In furtherance, another key element for the collective bargaining perspective I the process of
collective bargaining for which the author collected data includes all negotiating units (excluding
those in the construction industry) covering 500 or more employees for the period 1953 to the
2nd quarter of 1966.

Negotiating unit has been defined as the decision-making unit which negotiates changes in the
terms of a collective agreement or a number of collective agreements. The single establishment
single union type comprises about 55 percent of all negotiating units, but covers only about a
third of the employees in our study. The multi establishment-single union type accounts for
approximately 20 percent of all negotiating units and just slightly less than 20 percent of the
employees. Although single company negotiating units comprise slightly over 80 percent of all
negotiating units, they include only about 60 percent of all employees covered by the study. On
the whole, the multi-employer and employer association bargaining account for 20 percent of
negotiating units and cover about 40 percent of the employees in the study.

There are a number of factors which may account for the increasing length of agreements, such
as the assurance of labor peace. And long-term agreements provided for the major part of
increases in the first year of the agreement whereas in recent years, wage increases are spread
more evenly over the life of the agreement. Finally, in the early stages of a bargaining
relationship, there are many conflicts over principles and rights, including union security and
management's rights. Only after these basic issues are resolved or satisfactory accommodations
are made, will parties to the bargaining relationship move toward longer term agreements.

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 INDIAN PERSPECTIVE

Krishna Chaitanya Valdamannati in his article “Rewards of (Dis) Integration: Economic, Social,
and Political Globalization and Freedom of Association and Collective Bargaining Rights of
Workers in Developing Countries” on contemporary scenario in the area of collective bargaining
discussing the effect of collective bargaining in globalization and international trade. In
furtherance, the countries engaged in the economic side of the globalization process, namely
foreign direct investment (FDI) and trade, are likely to experience high economic growth,
technology transfer, and increased levels of employment. This, in turn, leads to a higher level of
affluence, which not only benefits developing countries with large labor pools but also creates
disincentives for rent-seeking forces that exploit labor and suppress Free Association and
Collective Bargaining (FACB) rights in an attempt to maximize economies of scale. Critics of
globalization argue that it breeds a sort of negative competition between countries for the
business of multinational corporations. This competition entails being the cheapest country in
which to do business-that is, lowest labor costs or the most lax environmental standards-
popularly known as a "race to the bottom". To resist this situation, collective bargaining rights
often results in higher labor costs.

Similarly, India is a developing country having a population of around 1.3 billion people majorly
based on the service sector. In Indian scenario, collective bargaining plays an important role in
ensuring the employees’ rights including rights of equal pay. Even in India socio economic
environment is also a major element affecting collective bargaining. As India is a welfare state
interest of an individual shall be considered as important as public interest or interest of the
government. With respect to the parties to the collective bargaining, India has a very proficient
management managing the regulations and labor related disputes. Various legislations are also
acting to serve the interest of workmen such as Industrial Dispute Act, 1947 and few more.

Lastly, having a view through future perspective, the rights of the workmen has to be protected
using various ways including collective bargaining. As a welfare state, collective bargaining is a
healthy and an efficient way to ensure the rights of both the workmen as individual and as
general public.

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 CONCLUSION

First, there is need for a more explicit definition of our national economic and social goals and
better organization to achieve them. While governments must play a leading role in this
development, there is also an essential role for labor, management, consumers and other groups
in defining our goals more precisely and in the development or restructuring of their
organizations to assists in the implementation our national objectives. This will require stronger
organizations and genuine willingness to work together for the good of the whole country. It
might also require a shift in the distribution of power to the federal government to give it
sufficient authority to plan employment, deduction and equitable income distribution on a long-
term basis.

Second, national systems of collective bargaining must be developed and recognized for our
essential national industries. This may require a re-distribution of legislative authority in the
industrial relations field. Already multi-provincial bargaining exists in such industries as pulp
and paper, meat packing, automobile manufacturing and steel. Present jurisdictional barriers may
have to be removed so that in these and other basic industries collective bargaining can take
place on a national multi-provincial basis.

Third, we believe that the number of unions should be reduced gradually to form strong
industrial unions. This would require highly responsible and responsive union leaders to protect
and safeguard rights of the various occupational groups within these industrial unions. If such
unions did not set up internal procedures to safeguard the democratic rights of their members,
then the public authorities might be required to do so. The U.S. Landrum-Griffin Act is a good
example of what the public authorities will do where they believe that there been an abuse of
private power. We also believe that stronger national associations of employers are needed for
the evolvement of improved national policies for the management of industrial and personnel
relations. This kind of restructuring would facilitate the development strong and responsible
national systems of collective bargaining which, we believe would be in the national interest.

Finally, we suggest that productivity bargaining May well become more prevalent in the future.
Productivity has always been a factor at the bargaining table, although sometimes
inconspicuously. It has been an explicit factor in collective bargaining in the steel industry for

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years, both in terms of national comparisons and comparisons with the U.S. steel industry.
Recently, it has been an issue in bargaining in the automobile and farm implements industry. The
plumbers Victoria signed an agreement in November 1967 which tied wage increases to
increases in the cost of living and in productivity. Canadair in Montreal also signed a
productivity agreement in 1967. These agreements and the desire on the part of unions to reduce
or eliminate geographical differentials in national and international industries will no doubt bring
emphasis to productivity bargaining in the years ahead.

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