Page 222 - DMGT516_LABOUR_LEGISLATIONS

Unit 8: Collective Bargaining

Notes
Questions
1. Was it in the interest of the management to formalise union activities in the
organisation?
2. Do you think resorting to sabotage and informal protest was in the interest of the
union? Comment.
3. Should the nationalised union bodies having affiliation with political parties be
involved in internal union activities?

4. What would be the best strategy for Dolphin Limited after being in negotiation
with union for 4 years?

8.8 Collective Bargaining in India

Union and Management usually faces many substantive and procedural issues in collective
bargaining in India. Some of the issues can probably be handled at the bargaining table by using
existing structures and strategies. Some of the traditionally handled issues are as follows:

8.8.1 Performance based Wage Bargaining

Wages will remain at the centre stage but emphasis has shifted from assured wages to contingent
wages based on contribution.

8.8.2 Women's Issues

The explosive growth in the number of women employees may give rise to fresh challenges to
both employers and unions to squarely face the particular concerns and problems of females on-
the-job. Women issues are going to figure more and more in future collective bargaining.

8.8.3 Job Security/Job Insecurity

The potential loss of jobs due to technological change has always been a major concern for the
unions. Use of automation and computers will expand as Indian companies attempt to increase
productivity and remain competitive in domestic and international markets. This will continue
in the future and may even accelerate the collective bargaining process.

8.8.4 Productivity

Time has come, according to many economists, for the unions to be vitally concerned with
productivity and to realize that employee welfare is tied directly to the success of the enterprise
and industry. In short, what is needed in collective bargaining is re-approachment between
union and management that recognizes the necessity of co-operating to raise productivity.

8.8.5 Quality of Work Life (QWL)

The issue of quality of work life is related to the need for organized labour and management to
work co-operatively toward the goal of greater productivity. The attention now being paid to
the QWL reflects the growing importance being attached to it. It is apparent that substantial
number of employees are unhappy with their jobs and are demanding more meaningful work.
They do not want to be treated as cog in a wheel. QWL experiments will continue bargaining
across countries.

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