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Labour Legislations

Notes Collective Bargaining should embrace both economic and non-economic demands. The
management on this front should be given full discertion and power to enter into
commitments within certain prescribed financial limits. Further the policy statement
underlines the need for orderly bargaining arrangements. It states that a legal framework
be created to determine the appropriate bargaining agency and fix the responsibility for
the enforcement or collective agreements. In the later plan documents there was a mention
need for consolidate the gains of earlier years. It is envisaged by the government to
convert the legal policy into administrative measures, in that direction for orderly conduct
of Collective Bargaining, the following administrative measures provided in different
enactments passed by Central and State Governments. They are:
(a) Growth of strong independent unions;

(b) Creation of bargaining agents and conferring exclusive bargaining rights on them;
(c) Compulsion on employers and the representative union to bargain in good faith
and to avoid unfair labour practices;

(d) Legal status to the collective agreements for compulsory enforcement if necessary;
and
(e) Grievance redressal, mediation and arbitration machinery.

To translate the above measures Central Government has enacted different labour Acts – they
consists, Trade Unions Act of 1926; the Industrial Employment (Standing Orders Act of 1946; and
the Industrial Disputes Act of 1947). The above acts are amended to incorporate the changes in
the labour policy of Government. A part from these acts to improve the labour management
relations, the code of discipline was adopted. This code consists of principles or commitments to
be observed by the employers and labour unions.

8.7 Concept of Negotiation

Negotiation is the deliberate interactions of two or more complex social units which are
attempting to define or redefine the terms of their interdependence. Negotiation is a process for
resolving conflict between employee and employer where in their demands are modified to
arrive at an acceptable agreement. For negotiation teams should be formed.
The team should consist of members of both sides with adequate knowledge of job and skill for
negotiations and also should have the full authority to speak on behalf of their respective sides
as well as make decisions. A correct understanding of the main issues and an intimate knowledge
of operations, working conditions and in addition must also posses balanced views, even temper,
analytical mind and objective outlook. The management team, especially, should consist of
those executives who can authoritatively speak on both personnel and production matters. Well
begun is half done applies to Collective Bargaining. It will be nice to stress the need of mutual
cooperation before starting the negotiation with a proper climate for mutual understanding and
a common desire to reach agreement by objective assessment of facts, the process of negotiations
has all the chances to have success. During the negotiations there are always chances of emotional
outburst blocks. The important thing is to develop side alleys and keep continuing. When the
main issue gets confused sometimes it is better to come to the fundamental aspects. Sometimes
it is advisable to leave the controversial points and leap over to the next issue. As long as talks
continue ultimately a solution will be possible. Negotiations will be easier if it is recognised
and appreciated on both sides that what they are after fundamentally is not to win a victory over
the other but to solve the practical problems of industrial life created through the interaction of
various forces and various interests and also to lay the foundation for better understanding,
better performance and increased prosperity in the future for the benefit of all concerned. It is
much easier and much more practical to deal with a few representatives of strong and organised

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