Recent Trends in Collective Bargaining: The Issue Side
The bargaining strategies of Indian trade unions over last one decade or so has undergone a gradual but definite change Currently, the discussions on bargaining table no more centres round “traditional issues” like wages, D.A., employment conditions etc. but on “non-traditional issues” like additional and better welfare facilities, fringe benefits. It is presumably due to reasons like:
The bargaining strategies of Indian trade unions over last one decade or so has undergone a gradual but definite change Currently, the discussions on bargaining table no more centres round “traditional issues” like wages, D.A., employment conditions etc. but on “non-traditional issues” like additional and better welfare facilities, fringe benefits. It is presumably due to reasons like:
♦ The industries where the bargaining is in vogue the workers are fairly compensated monetarily and otherwise. Here also the working class is well aware of its role in industry. Under such circumstances when the workers’ economic needs are adequately satisfied, the union representatives hardly bring such issues in the bargaining sessions.
♦ With the entry of MNCs in country who are better pay masters in comparison to their Indian counterparts, the latter too, with a view to check the flight of workers to greener pastures, have started paying better pay packets and lucrative facilities to its workers. So now instead dealing with traditional issues, the collective bargaining discussion normally surrounds more important issues like modernization and employment conditions, productivity, management of charge etc.
♦ The employers are willing to concede the demands of higher benefits (fringe benefits and welfare amenities) as most of them do not call for direct or indirect financial involvement.
A few common items that have become part and parcel of collective bargaining agenda of enlightened industries are listed below.
i. House Rent Allowance (H.R.A.)
On the recommendations of the fourth pay commission, all the Government employees are getting fixed H.R.A. on the basis of category of city where they reside. Since then in the most of private undertaking, employee too bargain over this issue. In cases where an agreement is reached in this regard, H.R.A. becomes a part and parcel of the pay packets of its employees. In most of the industries as per agreement a fixed amount is paid to employees as H.R.A. It is interesting to note that in certain electronics, chemical and the petro-chemical industries, the amount of H.R.A. paid to employees ranges between 5 to 25 per cent of basic wages.
ii. Leave Travel Concession (L.T.C.)
This facility has its origin in the remunerative practices of Central Government undertakings which happens to be tax free benefit. So looking to the motivational impetus of this practice, it too has been adopted in most of the private undertakings. The details of such benefit is decided at the collective bargaining meetings; generally workers are paid one or one and half month salary, which they can utilize with ten or fifteen days privilege leave for travel. In case if the employee is not willing to enjoy the L.T.C. facility is paid 80 per cent of the L.T.C. amount in cash.
iii. Educational Allowance
The fourth pay commission has made a specific reference to payment of educational allowance for the children of employees. In case where such facility is not available, employee can bargain over it. This allowance generally covers the cost of tuition fee, books, uniform etc.
A study of various collective bargaining concluded in India prior to privatization between employers and employees has brought to light certain trends in collective bargaining. Some of these are:
(a) Agreements are mostly unit-wise agreements, though some are industry-wise; for ex¬ample, the agreements entered into by the textile industries in Bombay and Ahmedabad;
(b) The scope of the agreements has been widening and now includes matters relating to bonus, productivity, modernisation, Standing Orders, voluntary arbitration, incentive schemes, and job evaluation, medical expenses for self and family.
(c) Long-term agreements, covering a period which ranges between 2 years and 5 years, are on the increase;
(d) The number of agreements entered into each year has been on the increase;
(e) Joint consultation in various forms has been provided for in a number of agreements; and
(f) Collective bargaining has proved to be feasible and effective.
Factors Fostering Collective Bargaining in India
In India, the growth of collective bargaining can be attributed to the following factors:
i. Statutory provisions, which have laid down some general principles of negotiation, procedure for collective agreements and the character of the representation of the negotiating parties.
ii. Voluntary measures, such as tripartite conferences-, joint consultative boards and industrial committees at the industry level have provided an ingenious mechanism for the promotion of collective bargaining practices.
iii. The recent measures taken by the Government of India—schemes for workers’ education, participation of labour in managements: the evolution of the Code of Inter-Union Harmony, the Code of Efficiency and Welfare, the Code of Discipline, the formation of joint management councils, works committees, and shop councils, and the formulation of grievances redressal procedure at the plant level—have encouraged the growth of collective bargaining.
iv. The Industrial Truce Resolution of 1962 has also influenced the growth of collective bargaining. The Resolution required managements and workers to “strive for constructive cooperation in all possible ways and enjoined on them to resolve their disputes peacefully through mutual discussion, conciliation and voluntary arbitration.”
v. The amended to the Industrial Disputes Act 1964, provided for the termination of an award or a settlement only when a proper notice to that effect Was given by a majority of workers and not by any trade union representing a minority. They also ensure that the agreements or settlements, which are arrived at by a process of negotiation or conciliation, are not terminated by a section of the workers.