Page 211 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes 8.4.1 Importance to Employees
1. Collective bargaining develops a sense of self respect and responsibility among the
employees.
2. It increases the strength of the workforce, thereby, increasing their bargaining capacity as
a group.

3. Collective bargaining increases the morale and productivity of employees.
4. It restricts management's freedom for arbitrary action against the employees. Moreover,
unilateral actions by the employer are also discouraged.

5. Effective collective bargaining machinery strengthens the trade unions movement.
6. The workers feel motivated as they can approach the management on various matters and
bargain for higher benefits.

7. It helps in securing a prompt and fair settlement of grievances. It provides a flexible
means for the adjustment of wages and employment conditions to economic and
technological changes in the industry, as a result of which the chances for conflicts are
reduced.

8.4.2 Importance to Employers

1. It becomes easier for the management to resolve issues at the bargaining level rather than
taking up complaints of individual workers.
2. Collective bargaining tends to promote a sense of job security among employees and
thereby tends to reduce the cost of labor turnover to management.
3. Collective bargaining opens up the channel of communication between the workers and
the management and increases worker participation in decision-making.

4. Collective bargaining plays a vital role in settling and preventing industrial disputes.

8.4.3 Importance to Society
1. Collective bargaining leads to industrial peace in the country.
2. It results in establishment of a harmonious industrial climate which supports, which helps
the pace of a nation's efforts towards economic and social development since the obstacles
to such a development can be reduced considerably.

3. The discrimination and exploitation of workers is constantly being checked.
4. It provides a method or the regulation of the conditions of employment of those who are
directly concerned about them.

8.5 Collective Bargaining at Different Levels

In India the collective bargaining agreements have been concluded at the three levels-at plant
level, industry level and national level.

8.5.1 At Plant Level

A collective agreement at plant level is reached only for the plant for which it has been drafted,
and its scope and extent are limited only to that particular unit or undertaking. The agreement
generally provides for certain common norms of conduct with a view to regulate labour

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