Page 212 - DMGT516_LABOUR_LEGISLATIONS

Unit 8: Collective Bargaining

management relations and eliminating hatred and misunderstanding. It contains provisions for Notes
a quick and easy solution of those issues which require immediate and direct negotiation between
the two parties, and lays down a framework for their future conduct if and when controversial
issues arise.
Since 1955, a number of plant level agreements have been reached. These include: The Bata Shoe
Company Agreement.
The highlights of the agreement between the Tata Iron & Steel Co. and is workers' union, which
was concluded in 1956 "to establish and maintain orderly and cordial relations between the
company and the union so as to promote the interests of the employees and the efficient operation
of the company's business", are:
(1) The company recognises the Tata Workers' Union as the sole bargaining agent of the
employees at Jamshedpur. It agrees to the establishment of a union membership security
system and the collection of union subscriptions which would be deducted at the source
from the wages of all employees, except from the salaries and wages of the supervisory
staff.
(2) The union recognises the right of the company to introduce new and/or improved
equipment and methods of manufacture, to decide upon the number and locations of
plants, and the nature of machinery and/or equipment required for them, subject to the
condition that the union would be consulted before and if the interests of the employees
are likely to be affected adversely.
(3) The union recognises the right of the company to hire, transfer, promote or discipline
employees after the normal procedure for this purpose has been gone through, to fix the
number of men required for the normal operation of a section of a department, and to
abolish, change or consolidate jobs, sections, departments, provided that, when the
employees' interests are likely to be adversely affected, the management shall consult the
trade union before any decision is taken.
(4) The company assures the union that there shall be no retrenchment of existing employees.
The employees required for the various jobs shall, wherever necessary, be trained on the
specific jobs; and if any employees are transferred or put under training, their present
average earnings shall be guaranteed to them.
(5) The company and the union agree to a programme of job evaluation as the basis of a
simplified and rational wage structure.

(6) The company agrees that promotions to vacancies in the supervisory and non-supervisory
staff shall be made, wherever possible, internally. It further agrees that the grievance
redressal procedure, formulated in consultation with the union, shall be introduced in all
the departments, and shall be strictly followed. The top management of the company and
of the union shall intervene only in exceptional cases.
(7) The company agrees that the amount of dearness allowance will be included in the wages
of employees at the time of the calculation of gratuity to be paid to them.

(8) The company and union agree to negotiate revised wages and emoluments separately for
the workers in the plant, for the supervisory staff and for employees outside the works.

8.5.2 At the Industry Level

The best example of an industry level agreement is offered by the textile industry of Bombay
and Ahmedabad.

LOVELY PROFESSIONAL UNIVERSITY 207