II Unit

IR

Origin of trade union

Trade union in India, as in the most other countries, have
bee the natural outcome of modern factory system. The
development of trade unionism in India has a history1. Early period:- Efforts towards organizing the workers
for their welfare were made during the early period of
industrial development by social workers, philanthropist
and other religious leaders mostly on humanitarian
grounds.
the first Factories Act, 1881, was passed on the basis of
recommendation of the Bombay Factory Commission.
Due to the limitation of the Act, the workers in the
Bombay Textile Industry under the leadership of N.
Lokhande demanded reduced hours of work, weekly rest
days, mid day recess ad compensation for injuries.

 The Bombay Mill owners Association conceded

the demand for weekly holidays.
Consequently, Lokhande established the first
Workers Union in India in 1890 in the name of
Bombay Mill- hands Association.
Some other important unions established during
this period.

2. Modest Beginning
The beginning of the labour movement in the modern sense
started after the outlook of World War I in the country.
economic, social and political conditions of the day influenced
the growth of trade union movement in India.
Establishment of ILO in 1919 helped the formation of trade
unions in the country.
A number of trade unions were established between 1919
1923.
Category wise unions like Spinners union and Weavers union
came into existence in Ahmedabad under the inspiration of
Mahatma Ghandhi.
These unions were later federated into an industrial union
known as Ahmedabad Textile Labour Association.
This union has been formed on systematic lines and has been
functioning on sound lines, based on the Ghandhian Philosophy
of mutual trust, collaboration and non-violence.

3.Emergence of Leftwing Trade

Unions

The period between 1924-1935 :- The year 1921

saw as the emergence of communist on the Indian
scene. The All India Trade Union Congress (AITUC)
was captured by the communist .
The moderates formed a new organization, called
the All India Trade Union Federation.
Ideological difference and splits had their effect on
strikes too.
Majority of strikes were failed.
During this period, a number of important acts were
passed in the country such asa. The Mines Act, 1923
b. workmens C compensation Act, 1923
c. The Trade Union Act, 1926
d. The Trade Disputes Act, 1929

 The passing of Trade union Act ,1926, gave formal

recognition to the workers right to organize.
In July, 1929, The Royal Commission on labour was
appointed to enquire into the existing conditions of labour
in industrial undertakings and plantations.
In 1930, India came under the way of world wide
depression.
employers
introduced
wage-cuts
and
retrenchment.
The government ultimately banned the communist party
and declared the Trade unions controlled by them as illegal.
4. Increase in Trade union activity and unity moves
(the period between 1940-1946) :- this period
witnessed an increase in the number of registered trade
unions and their membership.
The National Trade Union Federation (NTUF), which claimed
a larger membership than the AITUC and the AITUC
merged together in 1938.
One of the important reason of merger was that no political
decision should be taken unless it command a two- three
unions, it was finally achieved in 1940 with N.M. Joshi who
became the General Secretary of the AITUC.

5. Union Activity during the II World War(the

period between 1940-1946)
The unity was shattered during the II World War
because of ideological difference and mounting
cost of living.
Industrial unrest increased and the government
banned strikes and lockouts.
Workers realize the need for an organized
movement to secure relief.
The realization lead to an increase in the number
of unions in May 1947, the Indian National Trade
union Congress (INTUC) was born.
The INTUC was the largest federation of trade
unions and therefore the most representative
organization of workers in the country.

6. The Post war and the post

independence period (after 1947)
For the first time, the INTUC was recognized as the
most representative body of the working class in
India in 1948 and its representatives constituted the
labour delegation to the ILO conference in 1948, the
Hind Majdoor Sabha(HMS) was formed and in 1949
the united trade congress was formed.
As years went by, more unions and central
organization come into existence.
7. Present Position:- at present there are about
56,000 registered workers union and 10 central
labour organizations in our country.
A very small percentage of these unions regularly
submit data themselves.
As it is difficult to know about their individual
characteristics and working.

Recognition of the trade

union
The underlying idea of forming a trade union is to
negotiate and bargain with employers to improve the
service ad employment conditions of workers on their
behalf.
This collective bargaining process can be possible only
when the employer recognizes the trade union as a
bargaining agent and agrees to negotiate with it
because it is difficult to negotiate with multiple trade
unions is a single organization.
The Trade Union Act, 1926, the only Central Law, which
regulates the working of the unions, does not have any
provision for recognition of trade unions
Some attempts were made to include compulsory
recognition in the Trade Union Act in 1947, 1950,1978
ad 1988, but these did not get materialized.

The usual methods used to determine union strength, which

is the basis for recognition are the following:I. Election by Secret Ballot:- Under this system, all eligible
workers of an establishment may vote for their chose union
and the elections are to be conducted by neutral agent,
generally the Register of Unions, in a manner very similar
to the conduct of general elections. Once held, the result of
the elections would remain valid for a minimum period.
II. Check- off method:- under this each individual worker
authorizes management in writing to deduct union fees
from his wages and credit these to the chosen union. This
gives management concrete evidence about the respective
strengths of the union.
III.Rule of thumb:- it is one of intelligent guessing by
management or general observations to assess the union
strength, either by the response at gate meeting , strikes
or discussions with employees. This not a reliable method,
particularly in large establishments can also be subject to
change at short intervals.

 In the above methods, the first one is an universally

accepted method used all over the world but there has been
no consensus among the trade unions on that in India.
The second National Commission of Labour(2003)
considered the issues seriously and made the following
recommendations:a. We recommend that the negotiating agent should be
selected for recognition on the basis of check off system. A
union with 66% membership is entitled to be accepted as
the single negotiating agent, and if no union has the support
of more than 25% should be given proportionate
representation on the negotiating table.
b. Secret ballot is logically and financially a difficult process in
certain industries. Check off system has the advantage of
ascertaining the relative strength of trade unions. Check off
system should be made compulsory for all establishments
employing 300 or more workers. Recognition once granted,
should be valid for a period of four years.

Rights of Recognized
Unions

The right to raise issues with the management.

Right to collect membership fees within the premises
of the organization.
Ability to demand check- off facility.
Ability to put up a notice board on the premises for
union announcements.
Ability to hold discussions with employees at a
suitable place within the premises.
Right to discuss members grievance with employer.
Ability to inspect beforehand a place of employment
or work of its members.
Nominations of its representatives on committees
formed by the management for industrial relations
purposes as well as in statutory bipartite committees.

Problems Confronting
Unions

The following reasons were identified for the slow

progress of trade union in India:1.Emergence of outside leadership:- Outside
leadership is playing an important role in the Indian
Trade Union Movement due to the inability of insiders
to lead their movement.
In view of the low education standards and poor
command over English language, low level of
knowledge about labour legislation, unsound financial
position, fear of victimization by the employer and lack
of leadership qualities, outside leaders have come to
stay.
The main reason for this trend is that the Trade Unions
Act,1926 , itself provided the scope for outside
leadership.

The Evil Effects of Outside

Leadership
The evil effects of outside leadership analyzed by
the National Commission on Labour are as
follows: Outside leadership undermined the purposes of
Trade Unions and weakened their authority,
personal benefits ,sometimes, weighed more than
unions
Outside leadership has been responsible for slow
growth of Trade Unions.
Internal leadership has not been developed fully.
Most of the leaders cannot understand the
workers problems as they do not live the life of a
worker.

2. Multiple Unions:- Multiple unions both at the plant and

industry levels pose a serious threat to industrial peace ad
harmony in India.
The situation of multiple unions is said to prevail when two
or more unions in the same plant try to assert rival claims
over each other and function with overlapping jurisdiction.
Multiple unions affects the industrial relations system both
positively and negatively.
The negative impacts of multiple unions dominate the
democracy, competition etc.
The nature of competition tends to convert itself into a
sense of unfair competition resulting in their union- rivalry.
The rivalry destroys mutual trust and cooperation among
leadership.
It is the major cause for weakening the trade union
movement I India.

3. Union Rivalry:- The state of rivalry between two

groups of the same union is said to be inter-union rivalry.
Inter ad intra union rivalries have been a potent cause of
industrial disputes in the country. They are responsible
for weak bargaining power of trade unions in collective
bargaining. These rivalries are responsible for slow
growth of trade union movement in the country.
4.Finance :- Most of the trade unions in India suffer from
inadequate funds.
The unsound financial position is
mostly due to low membership and low rate of
membership fee.
The Trade Union Act, 1926, prescribed the membership fee
@ 25 paisa per month. But the National Commission on
Labour recommended the increase of rate of
membership subscription from 25 paisa to Rs. 1 in the
year 1990. but the government did not accept this
recommendation.

As the National Commission on Labour observe, an

important factor limiting the effective functioning of
unions in our country has been their financial
weakness.
In most unions, poor finances are the result of
inadequate membership strength. This, in turn can
be traced to the small size of units. The general
picture of finances of unions is disappointing.
Other factors responsible for the unsound functioning
of trade union in India are:a. Uneven growth
b. Illiteracy
c. Low membership
d. Heterogeneous nature of labour
e. Lack of interest
f. Absence of paid office bearers.

Measures to strengthen trade

union in India

1. United labour front:- unions must present a joint

front. Multiple union dissipate their energies, dilute
their power and reduce their effectiveness. Trade
unions should form a sort of labour party and all the
trade unions in the country should be affiliated to it.
It gives adequate strength to the trade unions both
in industry and Parliament.
2. Internal fees :- outside political leadership has
developed due to the absence of internal leadership.
Outside leadership is the main cause for the multiple
problems of the trade unions. These problems can be
removed through the development of leadership
talents from within. Management should encourage
internal workers to lead their own movement.
Management and trade unions should provide
educational
and
training
facilities
for
the
development of internal leadership.

3. Membership fees:- the membership fees should be

raised as the amount of wages of the workers increased
significantly. Even the amended Rs. 12/- per annum is not
sufficient. Some other source of finance may also
explored to make trade union financially healthy.
4. Other measures: Trade union should extend welfare measures to the
members and actively pursue social responsibilities.
Social responsibility of trade union should go beyond their
limited constituency within members only.
Trade union should make efforts to raise their declining
membership.
Attracting and retaining new breed of workers by scouting
and monitoring them.
Trade union must reorient themselves from political
ideological obsession to Business Partners in progress,
sharing the gains.

 Bureaucratic organization to democratic and service

organization.
Complacency to struggle.
Power hunger to service orientation.
Trade union should be smart, IT savvy, online working
to have connectivity to employers abroad as also
International Trade Unions and other Trade bodies.
In order to make members updated, Trade unions must
organize continuous training and development
programs.
The Trade Union Act should be amended in order to
avoid dual membership.
There should be legal provision for the recognition of
the representative union in central legislation also.
Union should not intervene in day to day matters of
business. They must focus on important issues
affecting workers.

Strategies and tactics for

remaining union free
Managers develop long- term strategies and effective
tactics to present unionization of their organizations.
Most of them are Open communication.
A healthy and safe working environment.
Effective remuneration.
Effective training and development programs.
Effective personnel planning, recruitment and selection.
Effective personnel research.

Personnel research
The purpose of personnel research is to identify human
resource problems at an early date, so that remedial
action may be taken before the problem gets magnified.
A wide range of problems are covered in the personnel
research such as: Wage survey
Effectiveness of various recruitment sources
Test validation
Effectiveness of training efforts
Supervisors effectiveness survey
Recent labour settlements
Job analysis
Job satisfaction survey
Survey of employee needs
Performance appraisal validation
Attitude survey towards reward system
Areas of high accident frequency
Turnover analysis
Customer complaints survey

Reasons for discouraging

unionization by employers
Employers may discourage unionization. Their fear
about unions stem from: Increased cost because of higher remuneration and
other non- monetary benefits and services.
Loss of freedom to reward superior performance.
Loss of control over operations- erosion of
managements authority.
Lack of ability to adapt quickly to changing demands

Introduction of Trade
Union
Employees associations are popularly known as trade
unions in IR. Trade unions are not confined to mere
striking and negotiating on behalf of workers. Their role
is wider.
Unions may take their presence felt in recruitment and
selection. They may also decide who is to be hired and
under what conditions. Unions can also play an
important role in deciding who is to be promoted, given
a new job assignment, sent for training, terminated or
laid off. Many programs which contribute to QWL and
productivity are undertaken by the management in
consultation with and with the co- operation of the
unions
Unions decide wage and salary structure and negotiate
revision once in 3/5 years.

Definition of Trade Union

Trade unions are voluntary organizations of workers
formed to promote and protect their interest through
collective action.
The Trade Union Act, 1926 defines a Trade union as
combination, whether temporary or permanent,
formed Primarily for the purpose of regulating the relation
between
a. Workmen and employers.
b. Between workmen and workmen.
c. Between employers and employers.
For imposing restrictive conditions on the conduct of
any trade or business and includes any federation of
two or more trade unions.

Characteristics of Trade
Association:- A Unions
trade union is an association or
combination of employees. It has large number of
worker members from one or more occupations.
Voluntary :- Membership of a trade union is
voluntary. Generally, there is no legal or other
pressure to join a trade union and a person can join
or leave the union on his free will.
Permanent :- A trade union is a continuing or
permanent combination rather then a temporary or
casual combination. It has to be a long- term body
as otherwise it cannot achieve its objectives.
Union of common interest:- Members of a
trade union have common interests and problems,
which motivates them to unite. A union seeks to
regulate relations between employers and workers.

 Collective action:- Trade unions always act

through united action by the members to protect
and promote their economic and other interests.
Sub- systems:- A trade union is sub- system of
the social system. Therefore its character
undergoes change with changes in economic,
social, legal and political conditions in the country.
A union functions collectively to protect and
promote the interests of its members within a given
socio- economic system together unified body.

Objectives of Trade Unions

Following are the objectives of trade unions: To secure for the workers fair wages in the light of the
changing cost of living and prevailing standards of living.
To improve working conditions by securing shorter
working hours, better leave facilities, adequate social
security, better housing and education and other welfare
benefits.
To assure the workers a share in the increased profitability
of industry through payment of adequate bonus.

To ensure security of employment by resisting

retrenchment.
To protect workers against exploitation and victimization
by the capitalists.
To protect the larger interest of society by assisting in the
improvement of trade and industry.

Why workers join Trade

Unions?
Workers organize themselves into a trade union due to the
following reasons: Steady employment:- Workers form a trade union to
secure their services. Unions take political action to get
legislative protection against dismissal. They also resist
any attempt of the employer to retrench workers.
Economic benefits:- An individual worker is not in a
position to secure good pay and proper working conditions
from the employer. Worker join union because union has
great bargaining power to get these economic benefits for
workers.
Check on arbitrary actions:- If workers are not united,
an employer may adopt arbitrary policies and procedures
to exploit them. Workers form unions to ensure rational
and uniform personal policies and their unbiased
implementation on the part of management.

 Economic security:- Unions protect their members

from various possible economic hazardous such as
illness, accidental injury, unemployment. They
contact employers to pay compensation and
retirement benefits. Unions also have funds to
provide financial support to distressed members.
Self- expression:- Workers join unions to
communicate with management. Union serves as a
platform through which a worker can make his voice
heard by the employer.
Sense of belonging:- By joining the union worker
can associate with fellow workers and gain social
respect. He can also discuss his problems with trade
union leader. Trade union generate a sprit of selfreliance and self respect among workers.

 Recognition and participation:- workers can gain

recognition as equal partners with employer by
joining unions. They can participate in management
of industry. They can influence decisions, affecting
their interests, through collective bargaining.
Industrial relations:- Another reason for workers to
join a union is the need for an adequate machinery to
maintain proper relations between management and
labour. Union provides this machinery through
collective action.
Leadership :- Some workers join trade unions to
fulfill their political ambitions. They can use the union
as the stepping stone to become leaders. They may
rise in their political career by obtaining an officer of
the union.

Functions of trade unions

Protection of workers
Proper standard of living
Grievance redressal
Collective bargaining
Participation
Protests
Education
Welfare and recreation
Legislation
Representation
Advice
communication

Functions relating to Industrial

organizations

To highlight industrial organization as a joint enterprise

between workers and management and to promote
identity of interest.
To increase production quantitatively as well as
qualitatively, by laying down the norms of production
and ensuring their adequate observance.
To help in maintenance of discipline.
To create opportunities for workers participation in
management and to strengthen labour management
co-operation.
To create favorable opinion of the management
towards trade unions and improve their status in
industrial organization.
To impress upon the management the need to adopt
reformative and not punitive, approach towards
workers fault.

Functions relating to trade unions

organization
To formulate policies and plans consistent with those
of the industrial organization and society at large.
To improve financial position by fixing higher
subscription, by realizing the union dues and by
organizing special fund raising campaigns.
To train members to assume leadership position.
To keep away from advocating the adoption of unfair
practices.
To save the union organization from the exploitation
by vested interests personal and political.
To publicize the trade union objectives and functions,
to know peoples reaction towards them and to make
necessary modifications.

Functions relating to
society

To render all sorts of constructive co- operation in

the formulation and implementation of plans and
policies relating to national development.
To actively participate in the development of
programs of national development.
To launch social campaign against social evils of
corruption, casteism, regionalism, linguism, price
rise, black marketing , smuggling, illiteracy, and
disease etc.
To create public opinion favorable to governments
policies and plans, and to mobilize peoples
participation for the effective implementation.
To enable unorganized sector to organize itself.

Types of trade unions

Craft union:- It is an organization of workers employed in
a particular craft, trade or occupation. Therefore, such
unions tend to be well cohesive.
Due to their identical training and skills, members of a
craft union tend to develop unity among them.
Members are generally crafts concious rather than class
concious.
A craft union has strong bargaining power because its
workers possess a specialized skills which cannot be easily
replaced in case of a strike.
But sometime due to different agreement in different
crafts, joint action by workers belonging to different crafts
in not easily possible.
Craft unions tend to oppose technological advancements.
Craft unions are horizontal in character because their
members belong to a single process or group of processes.
In India, crafty unions are found largely among white-collar
workers and professional such as Government employees,
bank employees, doctors, lawyers, teachers etc.
There are very few craft unions of industrial workers.

 Industrial unions:- An industrial union is organized on

an industry basis rather than a craft basis.
Its members belong to different crafts within the same
industry.
Ahmedabad Textrile Labour Association, the Rashtriya
Mill Mazdoor Sangh etcx.
These unions are vertical in nature because they consist
of all type of workers in an industry.
Industrial unions are more powerful because they consist
of both skilled and unskilled workers.
Such a union cuts across skill and craft distinctions of
workers.
It is easier for the employer to bargain with one union to
cover all workers of a particular industry.
Worker is saved of the trouble of bargaining with a
number of unions established on a craft basis.
However, skilled workers may feel swamped by unskilled
workers and their specific demands may not be met
In these days, technological and mass production have
obliterated the craft distinctions and therefore, industrial
unions are the need of the hour.

 General union:- This type of union consists of

workers employed in different industries and crafts
within a particular city or region. The Jamshedpur
Labour Union is the example. In India there are
several industry cum region unions due to the
concentration of some industries in particular
regions.
Federations:- These are national level bodies to
which plant level unions, crafts unions, industrial
unions
and
general
unions
are
affiliated.
Federations are the apex organizations of workers.
They act as coordinating agencies. These are also
called central trade unions

Central trade unions in

India
Indian National Trade Union Congress(INTUC),
1947
All India Trade Union Congress (AITUC), 1920
Center of Indian Trade Unions (CITU), 1970
Bhartiya Mazdoor Sangh (BMS), 1955
Hind Mazdoor Sabha (HMS), 1948
United Trade Union Congress (UTUC),1971
Hind Mazdoor Kishan Panchayat (HMKP), 1962
National Front of Indian Trade Unions (NFITU) ,
1967

Collective Bargaining
Collective bargaining is a procedure by which the terms
and conditions of workers are regulated by agreement
between their bargaining agents and employers.
The basic objective of collective bargaining is to arrive
at an agreement on wages and other conditions of
employment.
The underlying idea of collective bargaining is that the
employer and employee relations should not be decide
unilaterally or with the intervention of any third party.
Both parties must reconcile their difference voluntarily
through negotiations, yielding some concessions and
making sacrifices in the process.
Both parties have, more or less, realized the
importance of peaceful coexistence for their mutual
benefit and continued progress.

 Industrial bargaining has three approachesI. Unilateral approach in which the employer alone
decides the terms and conditions of employment. This
is known as individual bargaining.
II. Bilateral approach in which the employer and worker
negotiate with each other. When worker men/ their
association and their representatives negotiate with
one another, it is known as bipartite collective
bargaining.
III.Tripartite approach in which besides the two main
parties, a third party also intervenes to facilitate
settlement.
Collective bargaining is a process of joint decision
making, a democratic way of life in industry. it
establishes a culture of bipartism and joint
consultations for establishing industrial harmony.

Definition of collective
bargaining
It is called collective because both employers and
workers act as a group rather than as individuals, and
it is described as bargaining because the method of
reaching an agreement involves approach proposals
and current proposals, offers and counter- offers and a
give and take approach.
According to ILO it is defined as, negotiations about
working conditions and terms of employment between
an employer and one or group of employers or one or
more employees organization. On the one hand, and
one or more representatives of workers organizations
on the other, with a view to reaching agreement.
Collective bargaining is a continuous process of solving
problems, on the principle of give and take and
balance of power.

Features of collective
bargaining
Collective :- It is collective in two ways. One is that all the
workers collectively bargain for their common interests and
benefits. Second is that workers and management jointly
arrive at an amicable solution through negotiation.
Strength:- Across the table both parties bargain from a
position of equal strength. It is industrial democracy at work.
Flexible:- it is a group action where representatives of
workers and management expend energies in order to arrive
at a consensus. This is the unique feature of collective
bargaining is that usually the parties concerned start
negotiations with entirely divergent views but finally reach a
middle point acceptable to both. It is a give and take process.
Voluntary:- Both workers and management come to the
negotiating table voluntarily in order to have a meaningful
view on various troubling issues. They try to probe each
others views thoroughly before arriving at an acceptable
solution.

 Continuous :- It is a continuous process. It does not

commence with negotiations and end with an agreement.
The agreement is only a beginning of collective bargaining .
It is a continuous process which includes implementation of
the agreement and also further negotiations.
Dynamic:- It is a dynamic process because the way
agreements are arrived at , the way they implemented the
mental make up of parties involved keeps changing. As a
result, the concept itself changes, grows and expands over
time.
Power relationship :- Workers want to gain the maximum
from management and management wants to extract the
maximum from workers by offering as little as possible. To
reach a solution, both have to retreat from such positions
and accept less than what is asked for and give more than
what is on offer. By doing so management tries to retain its
control on work place matters and unions attempt to
strengthen their hold over workers without any serious
dilution of their powers.

 Representation:-The
chief
participants
in
collective bargaining do not act for themselves.
They represent the claims of labour and
management while trying to reach an agreement.
Bipartite process :-The employers and the
employee negotiate the issues directly, face to
face or across the table. There is no third party
intervention.

Objectives of collective
bargaining
To settle disputes relating to wages and working conditions.
To protect the interests of workers through collective action.
To resolve the differences between workers and
management through voluntary negotiations and arrive at
a consensus.
To avoid third party intervention in matters relating to
employment.

Types of bargaining
Conjunctive bargaining :- The parties try to
maximize their respective gains. They to settle
economic issues such as wages, benefits, and bonus
etc through a zero sum game. Unions negotiate for
maximum wages. Management wants to yield as little
as possible- while getting things done through workers.
Co-operative bargaining:- When companies are hit
by recession. They can not offer the kind of wages and
benefits demanded by workers. At the same time they
cannot survive without the workers support. Both
parties realize the importance of surviving in such
difficulty and are willing to negotiate the terms of
employment in a flexible way.
Labour may accept a cut in wages in return for job
security and higher wages when things improve.
Management agrees to modernize and bring in new
technology and invest in marketing efforts in a phased
manner.

 Productive bargaining :- In this method workers

wages and benefits are linked to productivity. A
standard productivity index is finalized through
negotiations initially. Workers do not have to perform
at exceptionally high levels to beat the index. If they
are able to exceed the standards productivity norms
workers will get substantial benefits. A management
gain control over work place relations and is able to
tighten the norms still further in future negotiations.
Composite bargaining:- In this method labour
bargains for wages as usual but goes a step further
demanding equity in matters relating to work norms,
employment
levels,
manning
standards,
environmental hazards, sub- contracting clauses etc.
Through composite bargaining unions are able to
prevent the dilution of their powers and ensure
justice to workers by putting certain limits on the
freedom of employers. For the employer this is lesser
evil when compared to strike and lockouts.

Process of collective
bargaining
Process of collective bargaining involves the following
stages:-

Step I: Pre-Negotiation Phase :- This is the stage

before starting collective bargaining. At this stage, the
management wants to estimate the power and capacity
of labor unions. At this stage, all the relevant data,
information and figures are collected so that the stage
may be prepared for negotiation.

Step II : Selection of Negotiators:- at this stage,

both the management and labour unions select their
representatives who will take part in negotiations from
their side. Only such persons are selected as negotiators
who are fully acquainted with the problems on which
negotiations are going to be held.

 Step III : Strategy of Bargaining :- Management

should decide the basic strategies and policies that will
be followed at the time of bargaining with employees.
Every thing must be made clear before going to the
bargaining table. In addition to this, the management
should get due powers to enter into agreements with
workers. Similarly, labor unions should also determine
the strategies on the basis of which they will take part
in negotiation.
Step IV : Tactics of Bargaining :- The technique of
collective bargaining depends upon the principle of
Give and Take. Both the parties try to get more than
they sacrifice. All the aspects of contracts are
discussed in details. After this, the decisions are
resolved and reviewed. The services of government
mediators can also be used if required.

 Step V : Contract :- fifth stage of the process of

collective bargaining is to enter into a collective
agreement. Such agreements are made for a
certain time these agreements give full details of
security of job, grievance handling procedure,
promotion policy, transfer policy, rules regarding
layoff, rules regarding retrenchment, hour of work,
rules regarding leaves, incentive schemes,
security and health, managerial liability etc
Step VI : Implementation of the contract :
The last stage of the process of collective
bargaining is the implementation of the
agreements entered into between management ad
labor unions. Both the parties should honor these
agreements implement them whole heartedly.