Though, it is argued that collective bargaining has grown in India due to the statutory provisions and voluntary measures, its success is limited. Collective bargaining has not made much headway in India when compared to other industrialised nations.
The reasons are:
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Factors
1. Weak Unions:
Collective bargaining process mainly depends on the strength of unions. Indian unions are marked with multiplicity, inter and intra-union rivalry, weak financial position and non-recognition. Weak trade unions cannot initiate strong arguments during negotiations.
2. Problems from Government:
The government has not been making any strong efforts for the development of collective bargaining. The regulatory framework covering the industrial relations scene is quite tight, leaving very little room for bargaining to flourish on a voluntary basis.
3. Legal Problems:
Now adjudication is easily accessible. No attempt has been made by the government to rationalise or simplify the multifarious laws covering labour management relations.
4. Attitude of Management:
Employers have failed to read the writing on the wall. They do not appreciate the fact that unions have come to stay with almost equal bargaining strength. Such negative attitudes have come in the way of negotiating with unions voluntarily.
5. Employers’ Uncertainty about who is the Recognised Bargaining Agent:
Employers quite often are not very sure about who is the recognised bargaining agent. When there are multiple unions, bargaining with one union may prove to be a tough battle.
6. Statutory Fixation of Conditions of Work:
Areas of collective bargaining have not grown in view of the encouragement given to wage boards, pay commissions, statutory fixation of other conditions of work and social security measures.
7. Political Interference:
Almost all unions are associated with some political party or the other. The political parties interfere in the smooth functioning of the union.