1.

LABOUR RELATIONS & COLLECTIVE BARGAINA trade union (British English), labour union
(Canadian English) or labor union(American English is an organization of workers who have
banded together to achievecommon goals such as protecting the integrity of its trade, achieving
higher pay, increasingthe number of employees an employer hires, and better working
conditions. The trade union,through its leadership, bargains with the employer on behalf of
union members (rank and filemembers) and negotiates labour contracts (collective bargaining)
with employers. The mostcommon purpose of these associations or unions is "maintaining or
improving the conditionsof their employment".This may include the negotiation of wages, work
rules, complaint procedures, rulesgoverning hiring, firing and promotion of workers, benefits,
workplace safety and policies.The agreements negotiated by an union are binding on the rank
and file members and theemployer and in some cases on other non-member workers. Trade
unions traditionally have aconstitution which details the governance of their bargaining unit and
also have governanceat various levels of government depending on the industry that binds them
legally to theirnegotiations and functioning.Originating in Europe, trades unions became popular
in many countries during the IndustrialRevolution, when the lack of skill necessary to perform
most jobs shifted employmentbargaining power almost completely to the employers side,
causing many workers to bemistreated and underpaid. Trade unions may be composed of
individual workers,professionals, past workers, students, apprentices and/or the
unemployed.Aside from collective bargaining, activities vary, but may include: Provision of
benefits to members: Early trades unions, often provided a range of benefits to insure members
against unemployment, ill health, old age and funeral expenses. In many developed countries,
these functions have been assumed by the state; however, the provision of professional
training, legal advice and representation for members is still an important benefit of trade union
membership. Protection of workers: Unions prevent exploitation of workers, increase their
wages thereby reducing inequality. Industrial actio: Trades unions may enforce strike or
resistance to lockout in furtherance of particular goals. Political activity: Trades unions may
promote legislation favourable to the interests of their members or workers as a whole. To this
end they may pursue campaigns, undertake lobbying, or financially support individual
candidates or parties (such as the labour party in Britain) for public office. In some countries,
trades unions may be invited to participate in government hearings about educational or other
labour market reforms.LABOUR LEGISLATIONS

2. The term `labour legislation is used to cover all the laws which have been enacted to
dealwith employment and non-employment wages, working conditions, industrial
relations,social security and welfare of persons employed in industries.Organized industry in a
planned economy calls for the spirit of co-operation and mutualdependence for attaining the
common purpose of greater, better and cheaper production. Since this has not been
happening voluntarily, the need for State intervention. In India, labour legislation is treated as
an arm of the State for the regulation of workingand living conditions of workers. The need for
labour legislation may be summarized as under:o Necessary for the health, safety, and welfare
of workers;o Necessary to protect workers against oppressive terms as individual worker is
economicallyweak and has little bargaining power;o To encourage and facilitate the workers in

the organization;o To deal with industrial disputes;o To enforce social insurance and labour
welfare schemes.Objectives: The objectives of labour legislations are two-fold:o Preservation
of the health, safety and welfare of workers; ando Maintenance of good relations between
employers and employees.Principles of labour legislation: Social Justice:o The essence of
democracy is ensuring social justice to all sections of the community.o This demands the
protection of those who cannot protect themselves.o In modern industrial set-up, workers, left
to themselves, are unable to protect their interest.o Therefore, the State has to intervene to
help them by granting them freedom of association,the power of collective bargaining and by
providing for mediation or arbitration in the case ofindustrial conflict.Labour Legislation in
India: In India, we have many labour laws that affect the labour conditions. The main laws
are:o The Factories Act, 1948.o The Trade Union Act, 1926.o The Industrial Disputes Act, 1947.o
The Payment of Wages Act, 1936.o The Minimum Wages Act, 1948.o The Equal Remuneration
Act, 1976.STRUCTURE OF TRADE UNIONTrade unions may, for the purpose of analysis, be
divided into a number of categories, asfollows:

3. Craft union : The earliest form of trade union , one whose membership is restricted to
aparticular category of skilled or craft workers , for instance, printers, carpenters and so
on.Membership of craft unions is usually restricted to those who have completed the
recognisedqualification for the craft or skill in question, frequently an apprenticeship. Being
closedunions (see below), craft unions may be quite small: for example, the National Union
ofSheet Metal Workers of Ireland has 720 members as of January 1992, and the Cork
OperativeButchers Society 149 members at the same date.General union : A trade union which
has no form of restriction on categories of worker whomay join. There are no limits on the
industrial or occupational area of recruitment. As such,general unions are open unions (see
below), and tend to be fairly large. The largest generalunion in Ireland, the Services, Industrial,
Professional and Technical Union (SIPTU), has190,500 members in the Republic of Ireland as of
December 1992 and amounts to 43 percent. of the Republics total ICTUaffiliated trade union
membership. As some trade unionsmove away from their original areas of recruitment, so they
may become more like generalunions; for example, the British-based union EETPU (now
amalgamated with the engineeringunion AEU to become AEEU) which was originally a craft
union, has now moved into anumber of other sectors and recruited many semiskilled workers,
thus having become closerto a general union than a craft union. Similarly, the retail and
distributive union IDATU haswidened its areas of recruitment.Industry union : A union which
confines its recruitment to one particular industry orindustrial sector, and aims to recruit all
workers at all grades in that area. There are very few"pure" industrial unions in Ireland, but the
Communications Workers Union is the mostprominent union in the postal and
telecommunications sector, and the non-ICTU NationalBusworkers Union competes with SIPTU
in recruiting workers in the two CIE buscompanies. In attempting to recruit all grades of workers
in the industry, industry unions aretherefore vertical unions; however, the existence of the
Communication Managers Unionblocks the CWUs attempts to recruit managerial
staff.Occupational union : A union which confines its recruitment to particular
occupationalareas, many of which may require the holding of certain qualifications in the same

way ascraft unions. Occupational unions mainly exist in the white-collar area: for teachers,
civilservants, police, bank employees and so on. Many Irish occupational unions are
structuredalong the lines of grade or type of staff: for example, membership of civil service
unions ishighly structured according to grade, and the four teaching unions respectively
representprimary, secondary, vocational and university teachers. Occupational unions also exist
forworkers in the health services, but these are more commonly referred to as
professionalunions.Professional unions : Unions whose membership is restricted to members of
the same orsimilar professional areas. Professional unions are thus another form of craft union,
butmembers of these unions would regard themselves as being of a higher status. Examples
ofprofessional unions are the National Union of Journalists and unions representing
healthprofessionals, such as those for doctors or nurses, and teaching unions. Most health
unionsare not affiliated to the ICTU, with the exception of the Irish Nurses Organisation
whichaffiliated in 1990.Vertical union : A union which recruits vertically through grades; in other
words, workersfrom the lowest "shop-floor" grade up to management are recruited. Many
professional

4. unions are vertical: for example, those representing nurses and teachers, among others.
Thedifficulty with vertical unions is the potential they contain for conflict between the
grades,which may be manifested in different views on what union policy should be in a
particulararea, or even in cases where the management structure means that the workers in
dispute andthe managers against whom the dispute is taken are in the same union.White-collar
union : A union which recruits primarily whitecollar workers, in other words,non-manual
workers. Whitecollar unions represent general clerical workers and workers fromthe services
sector, including financial services. The main expansion in trade unionmembership since the
1960s has been in this area. The largest white-collar union is the MSF,although the general
unions have a large proportion of white-collar workers in membership,and trade unions
representing clerical grades in the civil service and local government mayalso be classed as
whitecollar.COLLECTIVE BARGAININGCollective BargainingUnder a collective bargaining system,
union and management negotiate with each other todevelop the work rules.The performance of
the mutual obligation of the employer and the representative of theemployees to meet at
reasonable times and confer in good faith with respect to wages, hours,and other terms and
conditions of employment, or the negotiation of an agreement, or anyquestion arising there
under, and the execution of a written contract incorporating anyagreement reached if
requested by either party; such obligation does not compel either partyto agree to a proposal or
require the making of a concession.Labor Management Relations and Collective
BargainingForms of Bargaining Structures AND Union/ Management Relationships-Thebargainingstructure can affect the conduct of collective bargaining. The four major
structures are onecompany dealing with a single union, several companies dealing with a single
union, severalunionsdealing with a single company, and several companies dealing with several
unions. Types ofunion/management relations that may exist in an organization are conflict,
armed truce,powerbargaining, accommodation, cooperation, and collusion.The Collective
Bargaining Process--Both external and internal environmental factors caninfluence the process.

The first step in the collective bargaining process is preparing fornegotiations. This step is often
extensive and ongoing for both union and management. Aftertheissues to be negotiated have
been determined, the two sides confer to reach a mutuallyacceptablecontract. Although
breakdowns in negotiations can occur, both labor and management have attheir disposal tools
and arguments that can be used to convince the other side to accept theirviews.

5. Eventually, however, management and the union usually reach an agreement that defines
therulesof the game for the duration of the contract. The next step is for the union membership
toratifythe agreement. There is a feedback loop from "Administration of the Agreement"
to"Preparingfor Negotiation." Collective bargaining is a continuous and dynamic process, and
preparingfor thenext round of negotiations often begins the moment a contract is ratifiedThe
Psychological Aspects Of Collective Bargaining a. Preparing For NegotiationsBargaining issues
can be divided into three categories: mandatory, permissive, andprohibited.Mandatory
Bargaining Issues--Fall within the definition of wages, hours, and other termsand conditions of
employment.Permissive Bargaining Issues--May be raised, but neither side may insist that they
bebargained over.Prohibited Bargaining Issues--Are statutorily outlawed.b. Bargaining IssuesThe
document that results from the collective bargaining process is known as a laboragreement or
contract. Certain topics are included in virtually all labor agreements.Recognition--Its purpose is
to identify the union that is recognized as the bargainingrepresentative and to describe the
bargaining unit.Management Rights--A section that is often, but not always, written into the
laboragreementand that spells out the rights of management. If no such section is included,
management mayreason that it retains control of all topics not described as bargainable in the
contract.Union Security-- The objective of union security provisions is to ensure that the
unioncontinuesto exist and to perform its functionCompensation and Benefits--This section
typically constitutes a large portion of most laboragreements. Virtually any item that can affect
compensation and benefits may be included. 1. Wage Rate Schedule: The base rates to be paid
each year of the contract for each job are included in this section. At times, unions are able to
obtain a cost-of-living allowance (COLA) or escalator clause in the contract in order to protect
the purchasing power of employees earnings.

6. 2. Overtime and Premium Pay: Provisions covering hours of work, overtime pay, and premium
pay, such as shift differentials, are included in this section. 3. Jury Pay: Some firms pay an
employees entire salary when he or she is serving jury duty. Others pay the difference between
jury pay and the compensation that would have been earned. The procedure covering jury pay is
typically stated in the contract. 4. Layoff or Severance Pay: The amount that employees in
various jobs and/or seniority levels will be paid if they are laid off or terminated is presented in
this section. 5. Holidays: The holidays to be recognized and the amount of pay that a worker will
receive if he or she has to work on a holiday are specified. In addition, the pay procedure for
times when a holiday falls on a workers nominal day off is provided. 6. Vacation: This section
spells out the amount of vacation that a person may take, based on seniority. Any restrictions as
to when the vacation may be taken are also stated. 7. Family Care: This is a benefit that has
been included in recent collective bargaining agreements, with child care expected to be a hot

bargaining issue in the near future.CONSEQUENCES OF NON AGREEMENT BETWEEN MNGT &
TRADE UNIONSThere are times when a unionbelieves that it must exert extreme pressure on
management to agree to its bargainingdemands.Strikes and boycotts are the primary means
that the union may use to overcome breakdownsinnegotiations. 1. Strikes: When union
members refuse to work in order to exert pressure on managementin negotiations. 2. Boycotts:
An agreement by union members to refuse to use or buy the firms products.The practice of a
union attempting to encourage third parties (suppliers and customers) tostop doing business
with the firm is a secondary boycott.Managements Strategies For Overcoming Negotiation
Breakdowns--One form of actionthat is somewhat analogous to a strike is called a lockout.
Management keeps employees outof theworkplace and may run the operation with
management personnel and/or temporaryreplacements.The employees are unable to work and
do not get paid.a. Ratifying The Agreement

7. In the vast majority of collective bargaining encounters, the parties reach agreement
withoutexperiencing severe breakdowns in negotiations or resorting to disruptive actions.
Typically,this is accomplished before the current agreement expires. After the negotiators have
reacheda tentative agreement on all topics negotiated, they will prepare a written agreement
completewith the effective and termination dates. However, the approval process can be more
difficultfor the union. Until it has received approval by a majority of members voting in a
ratificationelection, the proposed agreement is not final. Union members may reject the
proposedagreement, and new negotiations must begin.b. Administration Of The AgreementThe
larger and perhaps more important part of collective bargaining is the administration ofthe
agreement, which is seldom viewed by the public. The agreement establishes the unionmanagement relationship for the duration of the contractTRADE UNION IN INDIA: HISTORY &
CURRENT SCENERIOThe trade unionism in India developed quite slowly as compared to the
western nations.Indian trade union movement can be divided into three phases.The first phase
(1850 to1900)During this phase the inception of trade unions took place. During this period, the
workingand living conditions of the labor were poor and their working hours were long.
Capitalistswere only interested in their productivity and profitability. In addition, the wages
were alsolow and general economic conditions were poor in industries. In order to regulate
theworking hours and other service conditions of the Indian textile laborers, the Indian
FactoriesAct was enacted in 1881. As a result, employment of child labor was prohibited.The
growth of trade union movement was slow in this phase and later on the Indian FactoryAct of
1881 was amended in 1891. Many strikes took place in the two decades following1880 in all
industrial cities. These strikes taught workers to understand the power of unitedaction even
though there was no union in real terms. Small associations like Bombay Mill-Hands Association
came up by this time.The second phase (1900 to 1946)This phase was characterized by the
development of organized trade unions and politicalmovements of the working class. Between
1918 and 1923, many unions came into existencein the country. At Ahmedabad, under the
guidance of Mahatma Gandhi, occupational unionslike spinners unions and weavers unions
were formed. A strike was launched by theseunions under the leadership of Mahatma Gandhi
who turned it into a satyagrah. These unionsfederated into industrial union known as Textile

Labor Association in 1920.In 1920, the FirstNational Trade union organization (The All India
Trade Union Congress (AITUC)) wasestablished. Many of the leaders of this organization were
leaders of the national Movement.In 1926, Trade union law came up with the efforts of Mr. N N
Joshi that became operativefrom 1927. During 1928, All India Trade Union Federation (AITUF)
was formed.The third phase began with the emergence of independent India (in 1947). The
partition ofcountry affected the trade union movement particularly Bengal and Punjab. By 1949,
fourcentral trade union organizations were functioning in the country: 1. The All India Trade
Union Congress,

8. 2. The Indian National Trade Union Congress, 3. The Hindu Mazdoor Sangh, and 4. The United
Trade Union CongressThe working class movement was also politicized along the lines of
political parties. Forinstance Indian national trade Union Congress (INTUC) is the trade union
arm of theCongress Party. The AITUC is the trade union arm of the Communist Party of India.
Besidesworkers, white-collar employees, supervisors and managers are also organized by the
tradeunions, as for example in the Banking, Insurance and Petroleum industries.Trade unions in
IndiaThe Indian workforce consists of 430 million workers, growing 2% annually. The Indianlabor
markets consist of three sectors: 1. The rural workers, who constitute about 60 per cent of the
workforce. 2. Organized sector, which employs 8 per cent of workforce, and 3. The urban
informal sector (which includes the growing software industry and other services, not included
in the formal sector) which constitutes the rest 32 per cent of the workforce.At present there
are twelve Central Trade Union Organizations in India: 1. All India Trade Union Congress (AITUC)
2. Bharatiya Mazdoor Sangh (BMS) 3. Centre of Indian Trade Unions (CITU) 4. Hind Mazdoor
Kisan Panchayat (HMKP) 5. Hind Mazdoor Sabha (HMS) 6. Indian Federation of Free Trade
Unions (IFFTU) 7. Indian National Trade Union Congress (INTUC) 8. National Front of Indian
Trade Unions (NFITU) 9. National Labor Organization (NLO) 10. Trade Unions Co-ordination
Centre (TUCC) 11. United Trade Union Congress (UTUC) and 12. United Trade Union Congress Lenin Sarani (UTUC - LS)IMPORTANCE OF TRADE UNIONSReduction in Industrial Disputes Good
industrial relations reduce the industrial

9. disputes. Disputes are reflections of the failure of basic human urges or motivations
tosecureadequate satisfaction or expression which are fully cured by good industrialrelations.
Strikes,lockouts, go-slow tactics, gherao and grievances are some of thereflections of
industrialunrest which do not spring up in an atmosphere of industrial peace. It helps promoting
co-operation and increasing production.High morale Good industrial relations improve the
morale of the employees. Employees work with great zeal with the feeling in mind that the
interest of employerandemployees is one and the same, i.e. to increase production. Every
worker feels that he isaco-owner of the gains of industry. The employer in his turn must realize
that the gainsof industry are not for him along but they should be shared equally and generously
withhisworkers. In other words, complete unity of thought and action is the main
achievementof industrial peace. It increases the place of workers in the society and their ego is
satisfiedMental Revolution The main object of industrial relation is a complete mental
revolution of workers and employees. The industrial peace lies ultimately in

atransformedoutlook on the part of both. It is the business of leadership in the ranks of workers,
employeesand Government to work out a new relationship in consonance witha spirit of
truedemocracy. Both should think themselves as partners of the industry andthe role of
workersin such a partnership should be recognized. On the other hand,workers must
recognizeemployers authority. It will naturally have impact on production because they
recognize theinterest of each other.Reduced Wastage Good industrial relations are
maintained on the basis of cooperationand recognition of each other. It will help increase
production. Wastages of man, material andmachines are reduced to the minimum and thus
national interest is protected.OBJECTIVES OF TRADE UNION To establish and promote the
growth of an industrial democracy based on labor partnershipin the sharing of profits and of
managerial decisions, so that banindividuals personality maygrow its full stature for the benefit
of the industry andof the country as well. To eliminate or minimize the number of strikes,
lockouts and gheraos by providingreasonable wages, improved living and working conditions,
said fringe benefits.To improve the economic conditions of workers in the existing state of
ndustrial anagementsand political government.Socialization of industries by making the state
itself a major employerVesting of a proprietary interest of the workers in the industries in
which they areemployed.WHY TO JOIN TRADE UNIONThe important forces that make the
employees join a union are as follows:

10. 1.Greater Bargaining PowerThe individual employee possesses very little bargaining power
as compared to that of hisemployer. If he is not satisfied with the wage and other conditions of
employment, hecanleave the job. It is not practicable to continually resign from one job after
another when he isdissatisfied. This imposes a great financial and emotional burden upon
theworker. The bettercourse for him is to join a union that can take concerted action againstthe
employer. Thethreat or actuality of a strike by a union is a powerful tool that oftencauses the
employer toaccept the demands of the workers for better conditions of employment.2.Minimize
DiscriminationThe decisions regarding pay, work, transfer, promotion, etc. are highly subjective
innature.The personal relationships existing between the supervisor and each of
hissubordinates mayinfluence the management. Thus, there are chances of favoritisms
anddiscriminations. A tradeunion can compel the management to formulate personnel policies
that press for equality oftreatment to the workers. All the labor decisions of themanagement
are under close scrutinyof the labor union. This has the effect of minimizing favoritism and
discrimination.3.Sense of SecurityThe employees may join the unions because of their belief
that it is an effective way tosecureadequate protection from various types of hazards and
income insecurity such asaccident,injury, illness, unemployment, etc. The trade union secure
retirement benefits of the workersand compel the management to invest in welfare services for
the benefit of the workers.4.Sense of ParticipationThe employees can participate in
management of matters affecting their interests only if theyjoin trade unions. They can
influence the decisions that are taken as a result of collectivebargaining between the union and
the management.5.Sense of BelongingnessMany employees join a union because their coworkers are the members of the union.Attimes, an employee joins a union under group
pressure; if he does not, he often has averydifficult time at work. On the other hand, those who

are members of a union feel thattheygain respect in the eyes of their fellow workers. They can
also discuss their problemwiththe trade union leaders.6.Platform for self expressionThe desire
for self-expression is a fundamental human drive for most people. All of us wishto share our
feelings, ideas and opinions with others. Similarly the workers alsowant themanagement to
listen to them. A trade union provides such a forum where thefeelings, ideasand opinions of the
workers could be discussed. It can also transmit thefeelings, ideas,opinions and complaints of
the workers to the management. Thecollective voice of theworkers is heard by the management
and give due considerationwhile taking policy decisionsby the management.7.Betterment of
relationships

11. Another reason for employees joining unions is that employees feel that unions can
fulfilltheimportant need for adequate machinery for proper maintenance of employeremployeerelations. Unions help in betterment of industrial relations among managementand
workersby solving the problems peacefully.

Collective bargaining includes not only negotiations between the employers and unions but also
includes the process of resolving labor-management conflicts. Thus, collective bargaining is, essentially,
a recognized way of creating a system of industrial jurisprudence. It acts as a method of introducing civil
rights in the industry, that is, the management should be conducted by rules rather than arbitrary
decision making. It establishes rules which define and restrict the traditional authority exercised by the
management.

Importance to employees
Collective bargaining develops a sense of self respect and responsibility among the employees.

It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group.
Collective bargaining increases the morale and productivity of employees.

It restricts managements freedom for arbitrary action against the employees. Moreover, unilateral
actions by the employer are also discouraged.

Effective collective bargaining machinery strengthens the trade unions movement.

The workers feel motivated as they can approach the management on various matters and bargain for
higher benefits.

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.

The collective bargaining process comprises of five core steps:

1. Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of
representatives of both the parties with adequate knowledge and skills for negotiation. In this phase
both the employers representatives and the union examine their own situation in order to develop the
issues that they believe will be most important. The first thing to be done is to determine whether there
is actually any reason to negotiate at all. A correct understanding of the main issues to be covered and
intimate knowledge of operations, working conditions, production norms and other relevant conditions is
required.

2. Discuss: Here, the parties decide the ground rules that will guide the negotiations. A process well
begun is half done and this is no less true in case of collective bargaining. An environment of mutual
trust and understanding is also created so that the collective bargaining agreement would be reached.

3. Propose: This phase involves the initial opening statements and the possible options that exist to
resolve them. In a word, this phase could be described as brainstorming. The exchange of messages
takes place and opinion of both the parties is sought.

4. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time
when what ifs and supposals are set forth and the drafting of agreements take place.

5. Settlement: Once the parties are through with the bargaining process, a consensual agreement is
reached upon wherein both the parties agree to a common decision regarding the problem or the issue.
This stage is described as consisting of effective joint implementation of the agreement through shared
visions, strategic planning and negotiated change.

Thus collective bargaining:

is a collective process in which representatives of both the management and employees participate.

is a continuous process which aims at establishing stable relationships between the parties involved.

not only involves the bargaining agreement, but also involves the implementation of such an agreement.

attempts in achieving discipline in the industry

Importance to employers
It becomes easier for the management to resolve issues at the bargaining level rather than taking up
complaints of individual workers.

Collective bargaining tends to promote a sense of job security among employees and thereby tends to
reduce the cost of labor turnover to management.

Collective bargaining opens up the channel of communication between the workers and the
management and increases worker participation in decision making.

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

Importance to society

Collective bargaining leads to industrial peace in the country

It results in establishment of a harmonious industrial climate which supports which helps the pace of a
nations efforts towards economic and social development since the obstacles to such a development
can be reduced considerably.

The discrimination and exploitation of workers is constantly being checked.

It provides a method or the regulation of the conditions of employment of those who are directly
concerned about them.