DAMODARAM SANJIVAYYA NATIONAL LAW

UNIVERSITY

VISAKHAPATNAM, A. P., INDIA.

PROJECT TITLE:

A STUDY OF THE TRADE UNIONS AND COLLECTIVE BARGAINING

SUBJECT:

LABOUR LAW I

NAME OF THE FACULTY:

R.BHARAT KUMAR

NAME OF THE STUDENT:

KODURI LAKSHMI PRAHARSHITHA

ROLL NO:

2017038

SEMESTER – V

SECTION – A

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ACKNOWLEDGMENT:

“I am highly indebted to my labour law professor, DR. P. Bharat Kumar for giving me a
wonderful opportunity to work on the topic: “A STUDY OF THE TRADE UNIONS AND
COLLECTIVE BARGAINING”, and it is because of his excellent knowledge, experience and
guidance, this project is made with great interest and effort . I would also like to thank my
seniors who have guided my knowledge of doing research on such significant topic. I would also
take this as an opportunity to thank my parents for their support at all times. I have no words to
express my gratitude to each and every person who have guided and suggested me while
conducting my research work”.

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 CERTIFICATE

This is to certify that the project entitled, “STUDY ON TRADE UNIONS AND
COLLECTIVE BARGAINING" submitted by "K.L.PRAHARSHITHA is a bonafide record
of work done under my supervision and to the best of my knowledge, the matter embodied in the
project has not been submitted to any other University. This project is the own research work
done by the student and there is no plagiarism.

Date: 21st October, 2019

Prof. R. Bharat Kumar

(Project Guide Name)

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4
CONTENTS:

1. TRADE UNIONISM AND COLLECTIVE BARGAINING –AN INTRODUCTION

AND HISTORICAL BACKGROUND………………………………………………6

2. ANALYSIS OF THE CONCEPT OF COLLECTIVE BARGAINING……………7

 SCOPE AND SUBJECT MATTER OF COLLECTIVE BARGAINING
 PRE-REQUISITES FOR COLLECTIVE BARGAINING
 PRINCIPLES OF COLLECTIVE BARGAINING
 MERITS OF COLLECTIVE BARGAINING
 DEMERITS OF COLLECTIVE BARGAINING

3. COLLECTIVE BARGAINING PROCESS…………………………………………12

4. LEVELS OF COLLECTIVE BARGAINING……………………………………….17

5. COLLECTIVE BARGAINING AGREEMENT……………………………………. 18

6. COLLECTIVE BARGAINING IN INDIA………………………………………….20

7. LAWS RELATED TO COLLECTIVE BARGAINING IN INDIA………………. 22

8. PROBLEMS RELATED TO COLLECTIVE BARGAINING IN INDIA……….. 23

9. CONCLUSION AND SUGGESTIONS………………………………………………24

10. CASE ANALYSIS……………………………………………………………………..26

11. REFERENCES…………………………………………………………………………46

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 1. TRADE UNIONISM AND COLLECTIVE BARGAINING –AN INTRODUCTION
AND HISTORICAL BACKGROUND

The disputes between the administration and the workers are intrinsic in an industrial society.
One contends for greater venture and benefits while the latter contends for better way of life.
These two clashing interests can be balanced incidentally through the standard theory of "give
and take", The guidelines of compromise have been implanted in the rule of “collective
bargaining”.

According to the ILO Manual in 1960, the Collective Bargaining is defined as:
“Negotiations about working conditions and terms of employment between an employer and a
group of employees or one or more employers, organizations, with the view of reaching an
agreement.”1

The expression "collective bargaining" was begat by British work reformers Sidney and Beatrice
Webb of Great Britain which was the "home of collective bargaining" in the 1890's 2 . The
possibility of collective bargaining rose because of industrial clash and development of worker's
guild development and was first given shape in the United States by Samuel Crompers. In India
the principal of collective bargaining was directed in 1920 by Mahatma Gandhi in the
Ahmadabad textile mill workers movement.

Supporters of collective bargaining in the early many years of the twentieth century thought it to
be fundamental for three reasons. Most importantly, an arrangement of tranquil and routine
bargaining would wipe out industrial conflict and brutality. Second, collective bargaining meant
"industrial democracy," lastly, collective bargaining vowed to make private enterprise work.

In any industrial foundation the grating among boss and the laborers is unavoidable. There are
requests by the laborers and if those requests are opposed by the business, industrial dispute
emerges bringing about industrial strain and upsetting the harmony and amicability in the

1
Buidens, Wayne, and others. "Collective Gaining: A Bargaining Alternative." Phi Delta Kappan 63 (1981): 244-
245
2
Smith, Patricia; and Russell Baker. "An Alternative Form of Collective Bargaining." Phi Delta Kappan 67 (1986):
605-607.

6
business. Collective Bargaining is one of the strategies wherein the business and the workers can
settle their disputes.

There was a need of an enactment which could guarantee industrial equity pre-empt the
industrial pressures and give the mechanics of dispute resolution goals. At the point when
Industrial Disputes Act, 1947 was passed in India, the goal was to give apparatus and structure to
the examination of industrial disputes and for the settlement thereof and for the reasons
practically equivalent to and accidental thereto, an enactment which principally accommodates
examination and settlement of Industrial disputes.

According to Justice Desai the development of the idea of welfare state infers an end to the abuse
of workers and as a means to that collective bargaining made its mark. 3 In case of the clashing
interests of the workers and the management which upsets the modern harmony and agreement it
acts as hardware for resolution of the same. The Act accordingly was established to give a Forum
for the alteration of apparently beyond reconciliation interests without upsetting the harmony and
amicability in the establishment guaranteeing the ‘development’ which was the essential of for a
welfare state.

Collective bargaining is one of the strategies wherein the employers and the workers can settle
their disputes. This strategy was built on the goals of development and strengthening of the trade
union Government. Before the reception of the collective bargaining principle the working class
was at a very vulnerable stage. With the increase of the trade unionism in the nation and by
collective bargaining turning into the standard of dispute resolution, it has become easier to
manage the affairs of workmen collectively and oppose the malpractices of the employers while
it has also become helpful to the management by giving them a mechanism to adduce liability
and take action for the same incase of any misconduct .In this way, collective bargaining has
become a strategy of great importance in the present economy where capital and workers have
gathered together to contend and win their claims.4

2. ANALYSIS OF THE CONCEPT OF COLLECTIVE BARGAINING

3
P.D. Shenoy, Voluntary bipartite approaches towards industrial peace (Bangkok, ILO, 1991), pp. 17-26.
4
Smith, Patricia; and Russell Baker. "An Alternative Form of Collective Bargaining." Phi Delta Kappan 67 (1986):
605-607.

7
Collective bargaining is extremely valuable from the viewpoint of the employers, worker's
organizations and laborers. Among laborers and workers it builds up an awareness of
expectations and sense of worker's spirit and marginal profitability. It opens up channels of
administration at every level, which otherwise is troublesome generally due to lack of
transparency.

The analysis of collective bargaining from the national outlook highlights is that it helps in
making quiet modern resolution atmosphere if appropriately directed and hence expands the pace
of the nation's endeavors towards social development. Collective bargaining as an instrument of
modern harmony has no parallel. It broadens the scope of the provision of justice in a political
and economical perspective and is a significant forum so far as the workers and the employers’
relations are concerned.

SCOPE AND SUBJECT MATTER OF COLLECTIVE BARGAINING

The development of collective bargaining is related with the acknowledgment of Trade

unionism. With the development of worker's organizations and industrialization the extent of
collective bargaining is growing. At first collective bargaining was utilized for deciding long
periods of work, wages and terms of business, yet now inside its domain are incorporated the
issues like compensation, annual benefits, promotions and transfers, maternity benefits, helath
and accommodation and so on. Collective bargaining has accepted an institutional structure. In
the expressions of C.W. Randle:

"The topic of collective bargaining had expanded until it has for all intents and purposes
dispensed with the field of the administration rights. The region example of bargaining has
moved from basic style plant bargaining to district savvy lastly to dynamic nature of the extent of
collective bargaining. Simultaneously, they show how significant exchange has moved toward
becoming as an organization. Also, the future holds guarantee of a much more noteworthy job
for collective".

Subject matter of Collective Bargaining

Collective bargaining has two dimensional concerns:

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(1) Framing of5 employment contracts between the management and the workers

(2) The implementation of the contract.

Therefore, it has been perceived as a strategy for deciding different terms and conditions of the
employment and for directing the relations between the employers and the workers. Collective
bargaining incorporates arrangements as for contracts, promotions, transports, designated tasks, ,
compensations, welfare programs, retirement benefits, discipline, and so forth.6

PRE-REQUISITES FOR COLLECTIVE BARGAINING

Effective negotiations require the parties to form the issues based on interests in conflict so as to
be followed by the systematic process that includes the following steps:

1. Recognition of the Bargaining Agent: The management should offer acknowledgment

to the trade unions for taking an interest in the collective bargaining process. Incase
of more that one trade unions involved, a body representing the members of all
unions can be formed and be recognized as the bargaining agent .Therefore, the
bargaining agent ought to be appropriately distinguished before starting any activity.

2. Deciding the Level of Bargaining: Whether the dealings are limited to the unit level,
industry level, provincial or national level ought to be chosen as the substance,
extension and requirement changes in each situation.

3. Determining the Scope and Coverage of Bargaining: It is recommended to have a

clear comprehension of what are the issues to be secured under bargaining. Generally,
bargaining is limited to wage and working conditions related issues, however it would
be favorable for both the parties to cover the all possible issues as could be expected
under the circumstances to prevent any further questions. Thusly, all the significant
and interrelated issues are to be taken for thought.

5
Buidens, Wayne, and others. "Collective Gaining: A Bargaining Alternative." Phi Delta Kappan 63 (1981): 244-
249
6
DeGennaro, William, and Kay Michelfeld. "Joint Committees Take the Rancor out of Bargaining with Our
Teachers." The American School Board Journal 173 (1986): 38-39.

9
 4. Spirit of Give and Take: When there is a soul of compromise between the parties,
collective bargaining can be a promising procedure of settling modern conflicts.

5. Good Faith and Mutual Agreement: The negotiations in collective bargaining should
be in accordance with some basic morality and should accomplish the things based on
common understanding as there is no legitimate authorization behind the terms and
conditions settled upon by them.

PRINCIPLES OF COLLECTIVE BARGAINING

In the light of the ‘industrial democracy’, there are certain groung rules which must be trailed by
both the by both the parties in the process of collective bargaining. These standards are as per the
following:

1. There ought to be an acknowledgment by both the parties that collective bargaining is an

appropriate technique.

2. An open door ought to be given to trade union’ leaders to put their, requests, needs, and
so forth before the management and the administration ought to disclose to them the
conditions and attempt endeavors to review the complaints/protests of the laborers.7

3. The presence of soul of common trust, altruism and bargaining ought to be there with
respect to both the parties’ interests;

4. The negotiations of collective bargaining ought to be straightforward and the

understanding ought to be led by these must be legit, able and sensible pioneers;

5. Proper work strategy ought to be embraced by the administration and this arrangement to
be trailed by all representatives. Vital precautions must be taken.

7
DeGennaro, William, and Kay Michelfeld. "Joint Committees Take the Rancor out of Bargaining with Our
Teachers." The American School Board Journal 173 (1986): 38-39.

10
 6. If there is more than one union the administration ought to go into negotiations with the
union having larger part representation.

7. The parties ought not set up such requests which are against the foundational principles
or might be against the national public policy.

MERITS OF COLLECTIVE BARGAINING

The advantages and the merits of the collective bargaining are as under:

1. Peaceful dispute resolution mechanism. This capacity of the arrangement of collective

bargaining is one of the techniques for affecting social change.
2. When two parties are in a condition of persistent clash, it helps in realizing bargain, and
setting up an understanding for setting up harmony between them. when two parties are
in a continuous conflict, lack of effective communication and negotiation may result in
strike or lockout hence hampering the industrial growth . However the process of
collective bargaining eliminates such contingencies by formally leading both the parties
into an agreement which once signed by them is binding upon both the parties8.
3. For setting up a pre law process in determining the rights and obligations of the parties.
4. Alteration and modulation of the work related relations, i.e. between workers themselves
and between workers and the employers, i.e, trade, organization and implementation of
contracts etc..

Further, as per National Commission Report on labour, collective bargaining has been preferred
over judicial adjudication for the following reasons:

(a)It is a framework dependent on bipartite understandings, and accordingly, better than any
other strategy including outsider in mediation of the issues which basically concern
representatives and laborers;

(b)It is brisk and effective technique for settlement of mechanical debates; and

8
Smith, Patricia; and Russell Baker. "An Alternative Form of Collective Bargaining." Phi Delta Kappan 67 (1986):
605-607.

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(c)It is vote based strategy for settlement of modern debates;

DEMERITS OF COLLECTIVE BARGAINING

Two fundamental imperfections in collective bargaining have been called attention to by

Willcox. These imperfections are:

(a) There are circumstances in which a genuine strike and delayed strike basically can't go on
without serious consequences.
(b) The negotiations in the process of collective bargaining do not generally represent any
public interest. For example, when workers bargain for the increase in wages. The
employers may agree to the same in exchange of some other benefit like increase in the
working hours. In this case the burden falls on the consumers, as the net price increases.
Hence the bi-partite nature of the process might be its biggest disadvantage.9

3. COLLECTIVE BARGAINING PROCESS

INITIATION PROCEDURE---- THE CHARTER OF DEMANDS

The collective bargaining procedure starts when the majority workers of the establishment vote
to be represented by a particular union. The National Labor Relations Board at that point certifies
the union. The management should recognize the union or the body as the bargaining agent,
and as the representative of all the individual workers. Once his is established the bargaining
process is initiated.

Bargaining consistently happens among the employers and the employees through a series of
negotiations .However the negotiations can incorporate more than one union of laborers and
more than one employer. Single-unit establishment level is the most convenient in this process.
Nonetheless, if a business has more than one plant or work site, multi-plant understandings can
be haggled. A few distinctive unions representing the workers of the single organization can
utilize alliance bargaining. Industry wide bargaining includes one central union bargaining with a
particular industry.

9
Mathiesen, Kay. "labor laws on unionization and collective bargaining — comparative study". Journal of
information Ethics. 3(2009):245-567.

12
A wide range of bargaining styles can be utilized when unions and worker representatives take a
seat at the bargaining table. The two fundamental methods of bargaining are customary
bargaining and partnership bargaining, however there are numerous varieties of each style.

The customary style of bargaining has been utilized since collective bargaining started among
the executives and the early worker's guilds. It is an ill-disposed style of arranging, setting one
side against the other with practically zero comprehension about the actual interests of the other
party. Each side places its requests and recommendations on the table, and the opposite side
reacts to them with counterproposals. The procedure is negative and includes a battle of
compromises on generally issues. Even with its negative undertones the conventional style of
arranging is as yet utilized adequately in bargaining numerous contracts.

The partnership style of bargaining is the more present day way to deal with arrangements. It
takes place with proper understanding and follow up regarding the interests of both the parties ,
and it centers around objectives and concerns normal to the two gatherings. On account of its
focus on each side's monitoring the issues concerning the opposite side, this style bargaining is
otherwise called intrigue based bargaining.10 In this procedure, the parties each rundown and
clarify their needs, and the resulting talk spins around approaches to address those issues that
will be worthy as well as gainful to the two gatherings. This style of bargaining is certain and
confers a substantially more amicable climate to the arranging procedure.

A mixing of the customary and organization styles is generally utilized in the negotiation
processes. The mixed approach is utilized for some reasons, including the way that numerous
establishments are increasingly acquainted with the customary style. However , with the
increasing importance of the concept of industrial democracy which focuses on the more and
more participation of the parties, the organization style is ending up progressively acknowledged
and is being utilized all the more as often as possible. The settlement procedure may likewise
incorporate the two styles of bargaining in light of the assortment of issues being arranged. The
organization style might be utilized to arrange certain issues, while the conventional style might
be conjured when bargaining different terms.

COLLECTIVE BARGAINING ISSUES

10
Mathiesen, Kay. "labor laws on unionization and collective bargaining — comparative study". Journal of
information Ethics. 3(2009):245-567.

13
Worker's unions were framed to enable workers to accomplish shared objectives in the areas of
wages, hours, working conditions, and employment stability. These issues still are the focal point
of the collective bargaining process, however some new ideas have turned into the subjects of
arrangements.

THE NEGOTIATION PROCESS:

The deliberations where the proposals are submitted and the counter proposals are given for the
same continue for certain term frame. Negotiation stage is the crux of the process of bargaining,
when the parties agree upon certain issues and conditions, they formally reach an agreement,
which when signed by them becomes binding on both of them. Often this strategies had to reach,
after a lengthy mechanical process.

COLLECTIVE BARGAINING AGREEMENT:

The agreement can be binding upon the parties for a specific time period as settle by them In the
event that the opposite party dismisses the details of the understanding, they come back to the
bargaining table and keep on negotiating. This cycle can be rehashed a few times. . If no such
agreement is made, then the entire negotiation is said to be failed or “broken down”.

FAILURE OF PROCEEDINGS AND ALTERNATIVE REMEDIES

The very next alternatives are the Conciliation proceedings which are initiated by the
arrangement of Conciliation Officers to monitor the process. On a reference to the Conciliation
Officer11, a Conciliation Board is established comprising of delegates of workers and employers
under the chairmanship of the concerned official12. The memo of settlement is sent to both the
parties by the virtue of which the investigation into the dispute takes place in order to assist an
amicable settlement. A settlement arrived at by this process is binding on both the parties.13

Mediation is normally the primary elective when the negotiations fail. The two parties concur
deliberately to host an unprejudiced third party to make recommendations to the two sides. It is

11
SEC.4, IDA Act,1947
12
SEC.5, ID Act,1947
13
Liontos, Demetri. Collaborative Bargaining: Case Studies and Recommendations. Eugene: Oregon School Study
Council, University of Oregon, September 1987. OSSC Bulletin Series. Pg. 27

14
the third party’s business to get the different sides to consent to a settlement. When the middle
party comprehends where each side stands, he makes proposals for settling their disparities. He
only makes proposals, offers guidance, and attempts to get the parties to settle on an answer.
Understanding is as yet deliberate now. The mediator has no capacity to drive both of the parties
to settle the agreement, this is the most sought and regularly used procedure by which the
employers and the employees use intervention mechanism to solve their disputes.

In the event that mediation process fails to realize a settlement, the subsequent stage can be
Arbitration, which can be either obligatory or deliberate. Every so often, in the case of disputes
the government may want the parties disputing to submit themselves to the compulsory
arbitration. Incase it is a deliberate one, the two sides consent to submit the dispute to arbitration
and agree upon the decision to settle the dispute through the same means. A fair and neutral
arbitrator or the arbitrary panel is appointed and the procedure is administered by them. The
arbitral awards as in the judgment is then awarded after tuning into the two sides interests and
this creates provisions of the settlement, this is further binding on both the parties.

STRIKE AND LOCK-OUT

If incase the collective bargaining procedure isn't functioning as an approach to settle the
contrasts among the parties, the two sides have weapons they can use to reinforce their positions.
One of the best strategies as such is the strike or lockout. While protesting, protestors don't
answer to work calls and, obviously, are not paid. Strikes typically shut down tasks, along these
lines pressuring the executives to yield to the association's requests. A few workers however are
not given with this right and hence are not permitted to strike. Government workers fall into this
class. The law likewise disallows some state and civil representatives from striking.

During a strike, laborers regularly picket at the passageway to their work environment. This
includes walking, conveying signs, and conversing with the media about their requests. The
privilege to picket is ensured by the nation,s Constitution as long as it doesn't include savagery
or terrorizing. Issues in some cases emerge during strikes and picketing when the employers
employ substitute badli workers , called scabs or strikebreakers, who need to cross the picket line
so as to carry out the responsibilities of the striking specialists.

15
The boycott is another such methodology to place pressure on the board to surrender to the
association's requests. During an essential blacklist, endorsers as well as individuals from the
overall population are urged to decline to direct business with the firm in contest with the
association.

Despite the fact that it is seldom done, the management may utilize the lockout as a strategy to
acquire its bargaining targets.14 In this circumstance, the it shuts down the business, along these
lines fending off patrons from working. This puts pressure on the party to settle the agreement so
that the workers can return to their occupations and get their wages.

The employers may also resort to seeking injunctions from the court as a directive or as a
procedure to place pressure on the workers to yield to its requests. An injunction is a court
request disallowing something from being done, for example, picketing, or expecting something
to be done, for example, laborers being requested to come back to work.

GRIEVANCE PROCEDURES

When by collective bargaining, understanding is settled and an agreement thereto is marked, it is

an authority that binds both the employers and the employees. However, conflicts with
agreement execution can emerge and infringement of the agreement terms can happen. In these
cases, a complaint, or grievance, can be recorded. These conflicts that are ought be settled are
normally taken care of through a bit by bit process that is laid out in the collective bargaining
agreement. The complaint methodology starts with a grievance to the specialist or a quick
administrator and, if uncertain at that level, moves upward, bit by bit, to more significant levels
of the board. After being scrutinized at all these levels, if no solutions are found at any of these
levels, the two parties can consent to have the complaint submitted to an unbiased outside
mediator for a settlement authoritative on both the employer and the employee.15

Collective bargaining is an effective route for the workers to arrive at their objectives concerning
adequate wages, hours, and working conditions. It enables them to deal as a group to fulfill their

14
Mathiesen, Kay. "labor laws on unionization and collective bargaining — comparative study". Journal of
information Ethics. 3(2009):245-567.
15
Liontos, Demetri. Collaborative Bargaining: Case Studies and Recommendations. Eugene: Oregon School Study
Council, University of Oregon, September 1987. OSSC Bulletin Series. 27 pages. ED number not yet assigned.

16
needs. Collective bargaining likewise enables the employers to arrange productively with
laborers by bargaining with them as a gathering rather than every one independently. In spite of
the fact that conventional bargaining can be negative and ill-disposed, it produces collective
bargaining understandings among both the parties . Partnership bargaining can prompt expanded
comprehension and trust among work and the board. It is a positive, helpful way to deal with
collective bargaining that additionally come’s as a full circle in agreements among both the
parties.

4. LEVELS OF COLLECTIVE BARGAINING

Collective bargaining works at three levels:

1. National level
 Economy-wide (national) bargaining is a bipartite or tripartite type of arrangement
between association confederations, focal employer affiliations and government
offices. It targets to bring down various regional level bargaining on the terms of
business, frequently considering macroeconomic objectives.

2. Sector or industry level

 Sectoral bargaining, which goes for the institutionalization of the terms of work in
one industry, incorporates a scope of bargaining designs. Bargaining might be either
extensively or barely characterized regarding the mechanical exercises secured and
might be either separated by regional subunits or led broadly.

3. Company/venture level

 Organization/venture level, this bargaining level includes the organization as well as

foundation. As a valuable sort of bargaining, it accentuates the point that bargaining
levels need not be totally unrelated.

5. COLLECTIVE BARGAINING AGREEMENT

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The settlement16 landed at between the parties to collective bargaining, the employers and the
employees is called as collective bargaining agreement. Ludwig Teller has extensively
characterized collective bargaining agreement as "an understanding between a solitary business
or a relationship of bosses from one perspective and a worker's organization upon the other,
which manages the terms and states of work." The term 'collective' as applied to collective
bargaining agreement will be believed to mirror the majority not of the businesses who might be
parties thereto, yet of the representatives in that included. Again the term collective bargaining is
saved to mean bargaining between a group of employers and a true blue worker's guild.
Bargaining which includes an organization ruled association is thought to be simply a hidden
type of individual bargaining. According to Teller the Collective Bargaining agreement bears in
its numerous arrangements the engravings of many years of action fighting for fairness through
acknowledgment of the thoughts based collective exchange.17

Collective bargaining agreements might be composed or unwritten. Whatever be the type of

agreement these might be viewed as administrative acts presenting the guidelines overseeing
work relationship for a predefined timeframe. In any case, these laws are private in nature. In
spite of huge numbers of the laws passed by the governing body, these understandings are of
more prominent significance to the laborers in that particular case. The holistic progress of the
parties should be the fundamental assent behind a collective understanding. In the event that a
party under the agreement doesn't consent to comply with and satisfy the duties, the other party
so as to meet its commitments can compel him by depending on legit pressures to do as such.

Authorization of Collective Bargaining Agreements

The authorization of bargaining agreements depends in certain nations on the techniques adopted
by the parties in addition to the law. In the United Kingdom, such agreements are classified "men
of their word's understandings". To authorize them in an official courtroom, laborers must
16
Damyanti v. Union of India (AIR 1971 S.C. 966)

17
Liontos, Demetri. Collaborative Bargaining: Case Studies and Recommendations. Eugene: Oregon School Study
Council, University of Oregon, September 1987. OSSC Bulletin Series.

18
depend on their individual agreements with their boss, which may at times join the bigger
understanding. In a considerable number of nations of Europe, Latin America and Asia, the
impacts of the agreement are controlled by extraordinary enactment. through an activity for
harms for break of agreement. Scandinavian nations, Germany, Ireland and some Latin
American nations have built up extraordinary courts to authorize the agreements in light of the
fact that strategy in customary courts is long and expensive, that deferral may bring about a
strike and to verify a speedy cure.

In India, the collective bargaining understandings can be authorized under section 18 of the
Industrial Disputes Act, 1947, as a settlement landed at between the employers and the
employees. The proper government may allude the dispute with respect to the violation of the
said agreement to the labour court or to the corresponding council.

Collective bargaining as it is drilled in India can be separated into three classes. First is, the
bipartite understanding attracted up deliberate arrangement among the board and association.
The subsequent sort is known as a settlement, while the third kind of collective understanding is
consent award. These are examined beneath:

1. Bipartite Agreements: These are most significant sorts of collective understandings

since they speak to a unique relationship between the parties with no weight from
outside. The bipartite understandings are attracted upon deliberate arrangement by the
parties and no external factors. The agreement is by the will of both the parties, self
restricting them, and is hence not in any way conflicting.

2. Settlements18: It is tripartite in nature in light of the fact that typically it is come to by

an intervention of a third party. When the labour court refers ad dispute to the
conciliation officer, he frames the issues and the proceedings take place. The
18
As per section 2 (gg) (p) of IDA, a “settlement” means a settlement arrived at in the course of conciliation
proceeding and includes a written agreement between the employer and workmen arrived at otherwise than in the
course of conciliation proceeding where such agreement has been signed by the parties thereto in such manner as
may be prescribed and a copy thereof has been sent to an officer authorised in this behalf by the appropriate
Government and the conciliation officer.

19
 settlement reached should be reported to the conciliation officer. These are not as
liberal as the bipartite settlements, as the issues are framed by the conciliation officer.

3. Consent Award: Here the settlement happens between the gatherings when the
question is pending before the adjudicating authority and the settlement is
incorporated into the judicial decision and is hence binding upon both the parties
though its voluntary in nature.19

6. COLLECTIVE BARGANING IN INDIA

Collective Bargaining system basically is an impression of a specific social and political

atmosphere. The historical backdrop of development of trade unionism in India demonstrates
that they are partnered by one or the other ideological groups. 20 Also, they as a whole are
generally controlled, influenced and funded by the political parties. This external influence has
affected the spirit of collective bargaining in India.

Collective Bargaining in India has been the topic of great importance since long and has been
characterized by various decisions of the courts . In Kamal Leather Karamchari Sangathan v.
Freedom Footwear Company21 the Supreme Court stated that, "Collective bargaining is a
method by which debate as to states of work is settled genially by understanding as opposed to
pressure".
As per the SC, the Industrial Disputes Act, 1947, looks to accomplish social equity based on
collective bargaining. In a prior judgment in Titagarh Jute Co. Ltd. v. Sriram Tiwari the
Calcutta High Court explained that this arrangement of the collective bargaining is additionally
verifiable in the meaning of 'modern debate'.

In Ram Prasad Viswakarma v. Modern Tribunal 22 the Court saw that, "it is outstanding how
before the times of 'collective bargaining', work was at an extraordinary weakness in acquiring

19
All India Bank Employees’ Association v. N.I.Tribunal, AIR 1962 SC 171
20
Karol Leather Karamchari Sangathan v. Liberty Footwear Company, (1989) 4 SCC 448.
21
1990 AIR 247
22
1963 AIR 857

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sensible terms for agreements of administration from its boss. As worker's guilds created in the
nation and collective bargaining turned into the standard, the businesses thought that it was
important and advantageous to manage the delegates of laborers, rather than individual laborers,
not just for the creation or change of agreements yet in the matter of making disciplinary move
against at least one laborers and as respects every single other contest."

In Bharat Iron Works v. Bhagubhai Balubbai Patel 23 it was held that “Collective bargaining,
being the request for the day in the vote based social welfare State, genuine worker's guild
exercises, which must evade a wide range of physical dangers, pressure or brutality, must walk
with a soul of resilience, comprehension and effortlessness in dealings with respect to the
business. Such exercises can stream in sound channel just on shared collaboration between the
establishment and the representatives and can't be considered as bothersome by the
administration to the greatest advantage of its business. Discourse with delegates of an
association help finding some kind of harmony in modifications and settlement of different
disagreeable cases and issues."

These definitions just draw out the essential component in the idea of collective bargaining i.e.,
the settlement between the parties and the entire procedure is managed by statutory
arrangements.24

7. LAWS RELATING TO COLLECTIVE BARGAINING IN INDIA

“I. Trade Unions Act, 1926

The Trade Unions Act, 1926 (“TU Act”) provides for formation and registration of trade unions
and in certain respects to define the law relating to registered Trade Unions. The TU Act defines
a trade union as “any combinations, whether temporary or permanent, formed primarily for the
purpose of regulating the relations between workmen and employers or between workmen and
workmen, or between employers and employers, or for imposing restrictive condition on the

23
1976 AIR 98
24
Karol Leather Karamchari Sangathan v. Liberty Footwear Company, (1989) 4 SCC 448.
R. Sivarethinamohan, Industrial Relations and Labour Welfare: Text and Cases, page 286,

21
conduct of any trade or business, and includes any federation or two or more trade unions.” 25 All
workmen have the right to form a union or refuse to be a member of any union. 26 However, not
all workers’ organizations are considered trade unions. For example, the Madras High Court has
held that an association of sub-magistrates of the judiciary, Tahsildars, etc., is not a trade union
because the members are engaged in sovereign and regal functions of the government.27”

II. Industrial Disputes Act, 1947

Collective bargaining is a strategy by which labour disputes are settled genially, calmly and
intentionally by settlement between trade guilds and administrations. The technique of collective
bargaining in settling the Industrial dispute, while keeping up modern harmony has been
perceived in the Industrial Disputes Act, 1947. Under the provisions of the Act, the settlement
by procedure of collective bargaining has been given a statutory acknowledgment under Section
18 of the Act.

Under the Act two sorts of settlement have been perceived:

1. Settlement through the conciliation proceedings. They are binding on both the signatories
and other members of the establishment.
2. Settlement which was not arrived at during the conciliation proceedings, it is binding
only on the signatories

Section 19 of the Act deals with the “The period of operation inter alia of such a settlement and
envisage the continuation of the validity of such a settlement unless the same is not replaced by
another set of settlement” while Section 29 deals with the “Penalty for the breach of the
settlement”.

The Industrial Disputes Act, 1947 accommodates the arrangement of Conciliation Officers to
monitor the process. On a reference to the Conciliation Officer, a Conciliation Board is

25
Section 2, Trade Union Act, 1926
26
O.K.Ghosh v. Joseph, AIR 1963 SC 812
27
Tamil Nadu NGO Union v. Registrar, Trade Unions (AIR 1962 Mad High Court)

22
established comprising of delegates of workers and employers under the chairmanship of the
concerned official. The memo of settlement is sent to both the parties by the virtue of which the
investigation into the dispute takes place in order to assist an amicable settlement. A settlement
arrived at by this process is binding on both the parties.

8. PROBLEMS RELATING TO COLLECTIVE BARGAINING IN INDIA

The machinery of collective bargaining in India isn't empowering. The employers and the
employees associations are not as a whole optimistic in this approach. The lengthy mechanical
deliberations often lead to nothing. This is primarily due to the failure in identifying the spirit of
collective bargaining, i.e, “give and take “

Further reasons can be explained as follows:

I. Due to the unwarranted influence of the political parties on the trade unionism in the
nation, entirely distracting the deliberations from workers interests to ulterior political and social
motives.

II. Since a large portion of the worker's organizations are having political affiliations, they
keep on being ruled by government or the opposition, who utilize the associations and their
individuals to meet their political finishes.

III. There is an absence of positive strategy to figure out which the union is to be perceived to
fill in as a bargaining operator for the benefit of the laborers28

IV. In India, the law gives a simple access to alternative remedies very quickly. Under the
Industrial Disputes Act, the parties may demand the Government to refer the issue to the
adjudicating bodies namely, the labour court or the industrial tribunal. The parties generally opt
for this less exhausting mechanism rather than lengthy deliberations.

28
Liontos, Demetri. Collaborative Bargaining: Case Studies and Recommendations. Eugene: Oregon School Study
Council, University of Oregon, September 1987. OSSC Bulletin Series pg. 27

23
V. In India trade unionism is perceived to be for the purpose of political orientations rather than
collective bargaining.

9. CONCLUSION & SUGGESTIONS

Collective bargaining is therefore an extremely valuable tool from the viewpoint of the
employers, worker's organizations and laborers, i.e, wholly the entire economy. Among laborers
and workers it builds up an awareness of expectations and sense of worker's spirit and marginal
profitability. It opens up channels of administration at every level, which otherwise is
troublesome generally due to lack of transparency. However the machinery of collective
bargaining in India has a long way to travel to reach its objective of peaceful resolution of the
labour disputes to empower the working class ad hence the entire economy of the nation. The
spirit of the principle of the collective bargaining should be focused and relied upon incase of the
dispute resolution. Following can help retrieve the same:

1. Strengthened Trade Unionism: a strong bargaining agent which unifies and represents
the workers and their interests can help in achieving their objectives by persuing a
settlement with the employers.
2. Compulsory Recognition of Trade Unions: until and unless the due recognition is
given, the union cannot be a formal bargaining agent to represent the workers interests.
To enable this law should provide for mandatory recognition of the trade unions.
3. Enactment of Legislation: no machinery is properly enforceable without legal
supervision, to exclude any kind of mischief or exploitation of the process especially by
the employers , effective and exclusive enactments must be passed.

24
 10. CASE ANALYSIS

1. THE WORKMEN EMPLOYED IN PADMA SESHADRI BAL BHAVAN

SCHOOL VS. THE MANAGEMENT OF PADMA SESHADRI BAL BHAVAN
SCHOOL

CITATION: AIR 2015 Mad 341

BRIEF FACTS OF THE CASE:

The employees of the respondent Management filed a case for claiming certain monetory
benefits like increase in salary, payment of bonus etc, the very way the Government employees
are being paid, and for getting uniform and chappels to all workmen. The case so made is for the
benefit of Ayyas, Watchmen and Attenders utilized in the respondent administration. The case
depends on principles and guidelines i.e., Bye laws of Central Board of Secondary Education , to
which the respondent Management is subsidiary to. During the pendency of the Industrial
Dispute, the employees including class IV workers went into settlement under S. 18(1) and then
it was signed by the employees which include the class IV workers as said before. Therefore, 87
out of 114 workers i.e., a dominant part of them, went into S. 18(1) settlement and the workers
additionally got advantages under the settlement .The rest of the workmen who were a part of the
Union, were claiming these benefits and through the present writ petition.

PROCEDURAL HISTORY:

The labour court has rejected the case on the accompanying three grounds:

(i)Tthe respondent organization is controlled by the Board of trustees and isn't an industry.

(ii)Southern Employees Association did not establish that it has the right to contend the issue.

(iii)The organization in question is as unaided educational institution, the Government Order by

the Government isn't therefore authoritative on them.

ISSUES FRAMED:

25
  Whether the respondent foundation is administered by the Bye laws of CBSE, New
Delhi and whether the class IV employees are qualified for claiming the above
monetory benefits keeping pace with the respective Government employees .
 Whether the organization in question being an unaided educational institution is
bound by the said Government Order regarding Bye –laws of CBSE.

REASONING:

CBSE bye laws have no statutory power and it can't be the sole basis to guarantee the monetory
benefits of Drivers, Conductors and Ayahs keeping pace with the Government School staff. The
instructors of Private Unaided Schools reserve no option to guaranteed benefits equivalent to that
of their respective in Government Schools and Government Aided schools and any claim on the
basis of Clause 5(b) of the Council for Indian School Certificate Examinations, regarding the
pay, remittances and different advantages to the staff of the subsidiary school at par with those
of the government schools as endorsed by the State Department of Education are not statutory
and are not enforceable. Accordingly the contentions of the workers here were negatived by
expressing that the CBSE Affiliation Bye-laws have no statutory power and dependent on the
said round, case of monetory claims keeping pace with the Government School staff can't be
requested.

DECISION:

The Court decide not to meddle with the judgment of the labour Court and the employees of the
respondent management are hence held to be dis-qualified for getting or for being entitled to any
monetory claims of benefits they have claimed for in this writ petition..In the outcome, the writ
appeal is dismissed.

26
 2. ALL INDIA UCO BANK STAFF VS. UCO BANK AND ANR

CITATION: AIR 2015 SC 157

BRIEF FACTS OF THE CASE:

The Writ Petition was to challenge the failure of the respondent organization, the UCO bank to
include all the workers without excluding even the minority sections, during the negotiations and
the deliberations of the management with the opposite bargaining agent for the purpose of
arriving at a settlement associated with the execution of its Industrial Relation Policy for
Workmen . The appellants claim that exclusion of even a minority association during the time of
arrangements will add up to bias and, it is conceivable that the Industrial Policy landed at after
such exchange may not be binding to every single laborer. According to the appellants, the
standard of collective bargaining inalienably perceives that each individual laborer has to
ventilate his complaints and if the minority participation in the same is neglected, the settlement
will be invalid. On the same ground the validity of the settlement is challenged in the present
case.

ISSUES FRAMED:

 Whether a trade union representing the majority of the workmen can be

recognised to be the single bargaining agent representing all the workmen during
collective bargaining

 Whether the exclusion of a certain number of workers in the process of

negotiations (even if it’s a minor fraction) being discriminatory in nature.
invalidates the entire process of collective bargaining .

REASONING:

The Court has opined that the dominant part of workers through the respective trade union were
speaking for the entire workforce and it will be assumed that such association would act decently
and to help all the employees independent of their connection. It is the devotion of the enormous
number of laborers to a specific association which gives it the character as a bargaining agent.

27
They would act in for the benefit of their clan as a whole, without any mala fide intention and the
same has to be acknowledged. Therefore, the system that recognizes the majority workforce as
the sole bargainer would help in keeping up mechanical harmony and smooth process of the
deliberations. Further it’s an established rule that “In service jurisprudence there cannot be
any service rule which would satisfy each and every employee”.

DECISION:

The Court has held that the appellants cannot claim any legal right of collective bargaining , also
the grievance processes provided by the management in this case to effectively deal with the
workers issues were ample and sufficient. The case was hence dismissed. No costs were
awarded.

28
 3. THE MANAGEMENT OF M/S SCHNEIDER ELECTRIC IT BUSINESS INDIA
PVT. LTD VS THE ADDITIONAL CHIEF SECRETARY

CITATION: AIR 2016 SC 52

BRIEF FACTS OF THE CASE:

The dispute between the respondent union and the petitioner management was referred for the
adjudication purpose to the industrial tribunal. The writ petition challenging the reference was
filed by the petitioner management. The management claims that over five hundred and two
workers have been signatories to the individual settlements entered with the management and the
settlement hence bars the respondents from raising any fresh charter of demands, as it is binding
on them. The respondent union claims that the settlement will lapse by 31 st of March, 2014 and
therefore the meeting of the general body of the union concluded to end the same and come with
a fresh set of demands to be enforced from April 1 st. The Management anyway battles that out of
502 representatives working in the organization, 270 had marked individual settlements on
October 8th, 2013 enforceable till one year. The staying 232 workers have entered into the
individual settlements on march 29th, 2014 concurring the equivalent to be legitimate from
March 31st, 2015. In that view, it was claimed that as on 14 th August, 2014 when the fresh
demands were made, the individual settlements went into by all the 502 representatives were
subsisting and accordingly, there was no conflict at all which is to be adjudicated. Hence it was
contended that that another Charter of Demands can't be raised when a settlement is subsisting.

ISSUES FRAMED:

 Whether there has been settlement between the employer and the employees and
whether all the workers have been signatories to separate individual settlements.
 Whether the fact that the workmen are part of individual settlements leads to an
industrial dispute at all.

REASON:

29
The individual settlements between the management and the workmen were entered
subsequently, after the union has come up with the charter of demands, hence the kind of bar
imposed on the union for the same purpose is not justified and fair. Even before the
individual settlements were marked by the laborers, the conciliation procedures had begun before
the Conciliation Officer and have been adjourned to further dates also. However, no settlement
has been arrived at during the above proceedings. Therefore these individual settlements allude
to as a Memorandum of Settlement under Section 2(p) and 18(1) of the I.D. Act read with Rule
59 of the Rules. The settlement was by furnishing copies between the parties but not in the
course of the conciliation proceedings. Further, these Memorandums of Settlements marked by
individual laborers should be carefully looked at for any kind of unfairness or unreasonableness.
However the same cannot be judged in a writ petition.

DECISION:

The court opined that when the law is settled that the Government can make a valid reference for
the performance of the adjudicatory functions. In this way, the reference as made can't be held as
bad in law, the Industrial Tribunal shall by considering all the submissions before them decide
the validity and prevalence of one type of settlement over the other type in the present case. The
writ petition was rejected and no costs were awarded.

30
 4. SHANKAR NARAYAN GHOSH AND 29 ORS VS OIL AND NATURAL GAS
CORPORATION LTD AND ORS

CITATION: AIR 2017 SC 82

BRIEF FACTS OF THE CASE:

The appellants were the contingent workers of the respondent management. They were given
several kinds of manual tasks, and wages were paid accordingly. They have claimed
regularization and the absorption of their services, which the management declined. The dispute
hence arose and a conciliation officer was appointed to cater the settlement of the same, the
dispute was settled as under sec 12 of the Industrial disputes Act. The administration and two
Unions of laborers, ONGC Din Mazdoor Union and Tripura ONGC Shramik Union had
adequately taken part in the pacification procedures before the Conciliation Officer. The terms of
settlement were recorded as a hard copy.

PROCEDURAL HISTORY:

The petition as clubbed with three other but similar ones and the judgment was given by virtue of
which the management was directed to satisfy the claims of the employees by regularizing their
service and by granting the absorption of the same, as they are reasonably entitled to the same
reliefs. However this judgment was given without considering the memorandum of settlement as
it was not submitted before. A remand petition was filed on the same ground and it was accepted.
On the basis of the memorandum of the settlement the writ petition was dismissed as the validity
of the terms of the settlement cannot be adjudicate din the writ proceedings.

ISSUES:

 Whether validity, reasonableness, fairness, and legality of the terms of the settlement
can be adjudicated in a writ proceeding.

REASONING:

The court has opined that “In view of the fact that tripartite settlement had been reached
between the management of the respondent- Corporation and the recognized unions representing
the workmen of the respondent Corporation, it becomes clear that all the workmen of the
31
respondent Corporation are bound by the terms of the settlement, as contended by the
respondent-Corporation. In fact, in a writ proceeding, we cannot determine if the terms of
settlement, as projected by the respondent-Corporation, are correct or not, for, determination of
any such question would require taking of evidence or holding of roving enquiry, which is not
possible in a writ proceeding.”

DECISION:

The Court has upheld the judgment of the hon’ble Single Judge, in not passing any order
communicating any conclusion as to the “veracity, accuracy, validity, honesty or legitimateness”
of the settlement, which the respondent-Corporation professed to have come to with its laborers.

32
 5. M/S POLYPHARM PVT. LTD VS. SHRI. RANGNATH S. IYER

CITATION: AIR 2017 Bom 125

BRIEF FACTS OF THE CASE:

The Petitioner is a privately owned business establishment, occupied with making synthetic
compounds and fine synthetic compounds. The Respondent was a secretary and also a
stenographer. For the benefit of workers at the Petitioner's, the Industrial Tribunal at Bombay
passed an award for benefitting some laborers guiding the Petitioner to pay dearness allowance.,
Respondent recorded an application under S. 33-C(2) of the ID Act (a) unique stipend
proclaimed by the Government occasionally between 1 January 1986 and 31 December 2000, (b)
dearness allowance decided in the honor passed by the Industrial Tribunal, (c) overtime wages
and (d) medical benefits. The Labor Court dismissed the Respondent's case to the extent of
overtime wages, however permitted his demands with respect to the exceptional remittance,
dearness allowance and medical benefits. The petitioner challenged the same..

ISSUE:

 Whether it is legally valid, to guide the petitioner employer to grant the claimed
dearness allowance to the respondent employee, in light of the relevant provision of
law.

REASONING:

The court opined that the Labour Court was not right in granting dearness allowance to the
Respondent as it was by breaking the significant aspects of law. The ratio as given in the
judgment is as follows, “It is clear that minimum wages must provide not merely for the bare
subsistence of life but also for preservation of the efficiency of the worker, and must accordingly
provide for some measure of education, medical requirements and amenities for himself and his
family. This cost is likely to vary depending upon prevailing market prices of various items
involved. If there are inflationary conditions prevailing in the country, then minimum wages
fixed at a particular point of time would not serve the purpose. Section 4 gives various
alternatives to the appropriate Government for achieving this. It may add a dearness or special
allowance so as to bring up and adjust the wages earlier fixed to the inflation in cost of living or

33
add a cash value of concessions to the wages earlier fixed. However, if what the employer pays
to his employee is what is payable towards minimum wages consisting of both basic wages and
dearness allowance or special allowance fixed by the appropriate Government from time to time
or any higher sum, no further dearness allowance is payable to the employee in accordance with
the then applicable notifications.”

DECISION:

In the above particular case the court held that what is being paid by method for wages to the
Respondent is a total higher than minimum wages and in these premises, there is no need for
installment of any further dearness allowance based on the stipulations given by the Government.
The decision of the labour court with regard to the grant of the claimed benefit, can't be
supported .It was set aside. The appeal was allowed.

34
 6. GOODBYE MARCOPOLO MOTORS LIMITED VS. THE PRINCIPAL
SECRETARY, LABOR DEPARTMENT

CITATION: AIR 2017 SC 72

BRIEF FACTS OF THE CASE:

The petitioner is an establishment associated with the manufacture of the buses. It has been
bargaining with a trade union named tata karmikara sangha which is a registered trade union,
regarding the issues and problems of the workmen ,the settlements were peaceful, amicable
amicable and productive. Another union krantikari kamgar union raised a demand that since a
substantial number of workmen of the establishment are enrolled in it, it has to be invited to the
bargaining process also. However petitioner did not respond. The second union has then raised
and submitted a fresh charter of demands which has been ignored. The deputy labour
commissioner has invited all the three parties for conciliation proceedings. The petitioner
objected stating that they do not have locus standi. They contended that the issue of locus standi
should be adjudicated as the preliminary issue first. However the officer has submitted the report
reporting the failure of the proceedings. The petitioner objected this failure report stating the the
preliminary issue as not decided. The dispute has been referred to the industrial tribunal.

ISSUES FRAMED:

 Whether there is a dispute that gives rise to the cause of action rendering to be
adjudicated by the industrial tribunal.

REASONING:

In the totality of the realities, the Court is of the considered feeling that there surely exists a
question which requires a settling by the Competent Authority. By the request for reference one
of the focuses for reference is that the Industrial Tribunal should settle the locus standi of the
second respondent-Union to speak to the laborers of the candidate/foundation. The assessment of
the said issue includes ascertainment of specific realities which is an activity which this Court
would not wander into and it should be by the Competent Authority for example the Industrial
Tribunal, which is the first position and reality discovering body. It is for the gatherings to let in

35
proof or spot on record such material to show their individual case as to absence of locus standi
or something else.

DECISION:

The Court was of the supposition that the writ petition could be discarded by guiding the
Industrial Tribunal to hear and discard the reference gave by the first Respondent within half
year .Writ appeal was subsequently discarded .

36
 7. THE MANAGEMENT OF SNY AUTOTECH PVT LTD VS THE INSPECTOR
OF POLICE

CITATION: AIR 2018 Mad 92

BRIEF FACTS OF THE CASE;

The petitioner is the management who claimed for police protection at the remises of the
establishment. It contended that the union has instigated the workers of the factory to invoke a
strike. They restricted free entry and exit of other workers, customers, raw materials delivery of
the end products etc. they also removed the CCTV surveillance from the front gate and further
invoved themselves in stealing away certain parts, hardware and products from the
establishment. The management filed a police complaint. The protection was given. However the
workers turned violent and the force was not enough to control them. The peace in and around
the surroundings was violated. Therefore the management has filed the writ petition seeking for
full fledged police protection and the injunction relief.

ISSUES FRAMED:

 Whether the writ petition filed under Article 226 of the Indian Constitution seeking for
police protection around the work premises violative of the workers right o collective
bargaining or not

REASONING:

The court indeed opined that even under the Trade Unions Act, 1926, the individuals from the
Union are unquestionably not allowed to include in brutal exercises of strike. The way laborers
are qualified for standing for their legitimate rights before the Courts of law, the employers are
likewise similarly qualified for assurance of their major right to carry on their legal exchange or
business. The workers can never take the law their own hands and obstruct the employer to
proceed with their legitimate buisness activity, by using violent methods of strike. In this way the
privilege to strike can't be an all-inclusive type of collective bargaining.

DECISION:

37
Since the industrial premises are facing as unusual situation with a lot of apprehension as to any
violent activity or to the safety and also to make sure that the workmen will no more engage in
any activity leading to the stoppage of the free passage of men and material, the additional police
protection seeked by the petitioner can be given and the police are guided to obey the same.
Further the claim is not in violation of the workers right to collective bargaining.

38
 8. POONA EMPLOYEES UNION AND ORS VS FORCE MOTORS LIMITED &
ANR

CITATION: AIR 2015 SC 53

BRIEF FACTS OF THE CASE:

The parties involved in the case the two trade unions specifically connected a particular
establishment, the force motors limited . the contention of one of the unions was that it is a
registered trade union under the Maharashtra trade union act and complies with all the due
provisions and procedures mentioned in the act. Further it claims to have enrolled 30% of the
total number of the workers working in the establishment. Due to the above reasons it claims to
have the right to be recognized by the employer so that it can stand as the sole bargaining agent
in any prospective collective bargaining process and hence seeks the same. The other union
contends that the assertions made by the former regarding having enrolled 30% of the total
worker and regarding their regular subscription fee and the periodic meetings of the general body
of the union are false and hence their claim to be recognized cannot stand. The industrial court
has decided in favour of the former union and granted it the claimed demands. the High court
however has reversed the decision and denied the claim. The aggrieved party hence approached
the Supreme Court on appeal.

ISSUES FRAMED:

 Whether the applicant number 2, i.e, the latter trade union complied with the relevant
sections of the MRTU & PULP Act, 1971 which it ought to follow for the purpose of
being registered as a recognized trade union for the purpose of collective bargaining.
 Whether the applicant no.2 is entitles to be registered as the recognized trade union by the
management in place of the applicant number 1.

REASONING:

The court has opined that the industrial court has decided that the union that claimed for
recognition especially for the purpose of the prospective collective bargaining, can be given the
same on the basis of the assertions it has made regarding the compliance with all the sections of
the MRTU Act and the PULP ACT several affidavits it has submitted to prove that it has

39
enrolled 30% of the total number of the workers working in the establishment, that they pay their
regular subscription fee and that they hold periodic meetings of the general body of the union
etc. however the high court has reversed the decision of the lower court by stating that the
evidentiary value of the said affidavits are questionable and the proof of all the assertions made
as such has not been established by the union before the court of law. Since there is no proper
evidence regarding the competence of the union for being recognized under the said provisions,
the same cannot be awarded.

DECISION:

The supreme court on the basis of the above reasoning has upheld the decision of the High court
in denying the claim of the applicant trade union to be registered as a recognized trade union as it
has once again reiterated that the evidence required to prove its competency to avail the claimed
legal status was not submitted before the court of law.

40
 9. KOYLA UDYOG KAMGAR SANGHTHAN VS UNION OF INDIA

CITATION: AIR 2016 SC 321

BRIEF FACTS OF THE CASE:

In the year 1983 the coal production in the country was nationalized and the Coal India ltd.
Company was formed as a result. It has many manufacturing units across the nation to deal with
the managerial functions of the same and specifically to deal with the issues , disputes and
conflicts that arise in them and to address the interests and the grievances of the workmen
working in them, The joint bipartite consultation committee i.e, JBCC was established. It’s
primary function is to provide a forum for enabling collective bargaining between the
management and the workers through the trade unions. An agreement was signed between the
company and various national trade unions including Indian National. Trade Union Congress,
All India Trade Union Congress etc. the present case is a public interest litigation challenging the
Constitution of the JBCC as it was contended to be against section 7 of the ID Act, 1947.

ISSUES FRAMED:

 Whether the Constitution of JBCC by the Coal company of India, a Union of India
operative, for the purpose of collective bargaining between the workers and the
management , violative of section 7 of the Industrial Disputes Act, 1947 or not.
 Whether, by virtue of sec 7A the Industrial Disputes Act all the industrial disputes should
be dealt by the Industrial tribunal and the industrial tribunal only, or not.

REASONING:

The Industrial disputes Act ,1947 by virtue of section 18 of the act recognized two types of
settlements. One, which were arrived during the course of the conciliation proceedings and the
other which were arrived at during duely performed collective bargaining process which was not
in the course of conciliation proceedings. Therefore the prescribed conciliation proceedings were
not the only recognized forum of collective bargaining. The latter type was given statutory
sanctity too and is hence binding on both the parties. Further, by virtue of sec 7A the Industrial
Disputes Act the industrial tribunal was constituted . However it was not mandated that all the
industrial disputes should be dealt by the Industrial tribunal and the industrial tribunal only.

41
DECISION:

The court has held that the workers and the employer have the right of collective bargaining and
the same can be done by constituting a forum for the same if necessary by complying with the
procedures of the law. Also the Constitution of JBCC is not in violation of the provisions of the
ID Act, therefore JBCCs establishment for the purpose of collective bargaining is valid. The suit
was accordingly dismissed.

42
 10. GRINDWELL NORTON COMPANY LIMITED VS THE TRANSPORT AND
GENERAL KAMGAR UNION

CITATION: AIR 2017 Bom 54

BRIEF FACTS OF THE CASE:

The petitioner management has challenged the order of the industrial court which ordered them
to increase the wage by Rs. 3000 and to stay the settlement arrived at by the company with the
respondent union. There are three union associated with the company and they have individually
submitted their charter of demands mostly on common grounds, all the parties were invited ,
bargaining proceedings via conciliation started several conditions regarding the increase in
amount of wages were settled upon also the management demanded increase in the productivity
by the workers which was agreed upon. The settlement was made and the memorandum of
settlement was made recording the same. However when the reference was made to the industrial
tribunal regarding enforcement , the petitioner company objected the same stating that their
demands were not included in the reference. Meanwhile, the respondent union.1 has filed a
complaint on the petitioner that it has indulged in unfair labour practice by favouring, supporting
and weighing the other two unions over the first union and that the negotiations were practically
between the management and the other unions only and it being virtually excluded by them,
hence seeking the relief of stay on the said settlement. The industrial court orderd them to
increase the wage by Rs. 3000 and to stay the settlement arrived at by the company with the
respondent union. The said order is challenged in the following petition.

ISSUES FRAMED:

 Whether the petitioner company indulged in unfair labour practice by favouring,

supporting and weighing the other two unions over the first union, under the provisions of
1(c), 2(a) and(b) of Schedule-II of the MRTU & PULP Act, 1971.

 Whether the decision of the industrial court by virtue of which it orderd them to increase
the wage by Rs. 3000 and to stay the settlement arrived at by the company with the
respondent union, valid or not.

43
REASONING:

The court opined that the memorandum of the settlement clearly conveys the demands from both
the sides, the course of the deliberations and the settlements arrived at regarding the increase in
the wage payment, the increase in the productivity and provision of several other benefits, it was
a reasonable, fair and amicable settlement by observing the due process of law. Therefore it is
binding on the parties and any other orders or the awards of the adjudicatory body which violate
them are unwarranted. In this case the order of the industrial court to pay the interim wages of
Rs. 3000 was revealing the workers form their obligation of increasing the productivity which
was settled upon by the terms of the settlement before. Also the chance of any increase by more
substantial amounts was eliminated. Further, the complaint by the respondent union was a mala
fide one with the intention of preventing the company to enter in any future prospective
settlements with the other unions.

DECISION:

In the light of the above reasoning the Court has held that the decision of the industrial court by
virtue of which it ordered the petitioner management to increase the wage by Rs. 3000 and to
stay the settlement arrived at by the company with the respondent union, is bad in the eyes of law
and is liable to be set aside. The decision was hence quashed and costs were not awarded.

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REFERENCES:

 S.C.Sri Vastave, Industrial Relations and the Labour laws, 6th edition

 Buidens, Wayne, and others. "Collective Gaining: A Bargaining Alternative." Phi Delta

Kappan 
 Smith, Patricia; and Russell Baker. "An Alternative Form of Collective Bargaining." Phi
Delta Kappan 
 Liontos, Demetri. Collaborative Bargaining: Case Studies and Recommendations.
Eugene: Oregon School Study Council, University of Oregon, September 1987. OSSC
Bulletin Series
 P.D. Shenoy, Voluntary bipartite approaches towards industrial peace (Bangkok, ILO,
1991),.
 Mathiesen, Kay. "labor laws on unionization and collective bargaining — comparative
study". Journal of information Ethics.

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