It is evident from the foregoing discussion that to settle differences on the work-related issues, collective bargaining as a process is perceived both by employers and employees and important machinery. We have adequately covered the general issues, which are usually settled through collective bargaining.
The need for collective bargaining in India arose due to some controversial problems, which the Indian industry had to face post-World War II. One of the most important among these is that of modernization. The problems of modernization and productivity are to be viewed in a proper light in the context of industrial development on planned lines. Indian industry cannot compete in foreign markets if it does not follow modern methods of production.
Since modernization causes displacement of workers, it naturally invites hostility and the workers and the management must, therefore, come together in their viewpoint through collective bargaining. The solution of common problems can come from legislative measures. Collective agreements provide the climate for smooth progress as there is ample scope for a synthesis between demands from one side and concessions from the other.
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ADVERTISEMENTS:
1. In individual bargaining, the workers may be tempted to accept undesirable conditions and may thus bring down the general level of remuneration. Due to immobility of labour, all workers are not in a position to desert a wage-cutting employer. This immobility may be due to the ignorance and illiteracy and industry-specific skill factors.
2. The speedy workers may accept a lower rate of payment, which may yield them a reasonable amount of wages, but such a low rate of wages would yield insufficient earnings to a great majority of workers.
3. Sometimes employers are in a position to control the bulk demands for the labourers, and they may through combined action, force the workers to accept low wages. Collective bargaining is the only device, which can avert such combined action and prevent the creation of such monopolistic tendencies.
ADVERTISEMENTS:
4. The market apparatus consisting of the two forces of demand and supply can settle only the problem of determination of wages, some of the non-wage issues like the length of working day, health and safety of workers, speed operations, introduction of rationalization measures of security of job have to be settled by personal decisions and not by the forces of demand and supply.
5. Collective bargaining also provides some voice to the conduct and management of the industry. Workers have now a definite place in the exercise of a real influence in the determination of labour matters affecting them every now and then.
6. To ensure continuity of production, workers and employers must shake hands, and this makes it inevitable to make collective bargaining a regular feature of industrial life.
7. The problem of good human relations can be tackled successfully by collective bargaining process.