Reasons why collective bargaining has not made much headway particularly at industry and national levels are as follows:
Collective bargaining is the ultimate in negotiations and is possible only when workers’ and employer’s organisations are equally strong, mature and conscious of their rights and duties. Collective bargaining grew at par with the growth of trade unionism.
It had its roots in Great Britain and developed in response to conditions created by the Industrial Revolution. In early part of 18th century when trade unions came into existence, the idea of collective bargaining gained strength.
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Initially the negotiations were carried out at plant level. By early 1900, industry and national level agreements were quite common. But there was not any considerable growth until the Second World War.
Even this growth during the Second World War was not the result of management and union’s influence but due to government’s efforts.
After a century of rapid growth, collective bargaining has more or less, become the gospel of industrial relations. It is being increasingly viewed as a social invention that has institutionalised industrial conflict resolution.
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In India, initially the resolution of conflict through collective bargaining agreements did not gain popularity. The legal steps taken by the government after the Second World War revived interest in the subject once again.
The legislative measures included the setting up of machinery for negotiations, conciliation and arbitration. Only after independence, there was considerable growth in collective bargaining. Trade unions gained importance.
From management’s side, there emerged a new class of managers, who saw labour with sympathy and understanding.
A large majority of disputes were resolved through this mechanism. But collective bargaining process took place mainly at plant level and organisation level unlike western countries where the agreements are reached at industry level.
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In India, collective bargaining has not made much headway particularly at industry and national levels, due to the following reasons:
1. Lack of strong and central trade unions and employers’ organisations which can represent country-wide interests.
2. Excessive dependence on compulsory adjudication for the settlement of industrial disputes.
3. Multiplicity of unions and inter-union rivalry.
4. Conditions of work differ widely in different parts of the country.
5. Weak trade union movement because of poor leadership and political dominance.
6. Legislation and regulatory bodies have reduced the area for collective bargaining.
7. Government provides little support to collective bargaining.
8. Attitude of employers and workers to depend more on third party intervention.