Third, instead of a separate union that negotiates with a separate employer, all unions belonging to the same branch negotiate their association with the employers` organisation in that sector. This is called the multiple employer negotiations possible at both the local and regional levels. Examples of these sectoral negotiations in India can be found in the textile industry. Collective bargaining is based on the principle of industrial democracy, in which the union represents workers in negotiations with the employer or employers. Industrial democracy is the government of labour with the agreement of the governed — the workers. The principle of arbitrary unilateralism has given way to that of self-management in industry. In fact, collective bargaining is not just a signing of a collective agreement that ends seniority, leave and wage increases by getting around the table. A sample carried out by the Indian employers` organisation for the period 1956-1960 showed that collective agreements were concluded between 32 and 49% in the event of a dispute. Most of the collective agreements have been concluded at the enterprise level. In this context, the National Labour Commission has fully highlighted the progress of the collective agreement. 2. Agreements between the two parties, even if they are voluntary, are mandatory when they are counted in front of a conciliator; such as worker training systems, worker participation in management, development of the code of intersynetic harmony, the code of efficiency and well-being, the code of conduct, the formation of joint administrative committees, business committees and works councils, and the formulation of recourse procedures at the enterprise level have promoted collective bargaining. „Collective bargaining is a way of setting terms of employment by negotiating between an organized work body and an employer or association of workers generally acting by authorized representatives.
The essence of collective bargaining is negotiation between stakeholders, not outside. It is not possible to say whether workers have achieved equal bargaining with employers. But collective bargaining had given a new relationship in which it is difficult for the employer to relinquish the relatively greater collective force. The main objective of the organization is to perform the work of the staff at a minimum cost in the workplace and thus obtain a high profit rate. Maximum labour use is a must for effective management. To this end, cooperation on the part of workers is necessary and collective bargaining is an instrument for achieving and promoting cooperation. Labour disputes are most often due to certain direct or indirect causes and are due to rumours and misunderstandings. Collective bargaining is the best way to maintain cordial relations. At the time when the old agreement is about to expire or well before, workers` representatives come with new requirements. Such requirements are also made when the industry is losing out, or even during the period of depression. If management accepts the requirement of higher wages and other benefits, they would prefer to close the plants. Disability both employers and employees, whether individually or represented by trade unions and employers` organizations, have the right to take action in labour courts to request all the clauses of collective labour regulatory agreements that they consider invalid (Article 43, Collective Work Act).
Collective bargaining covers, on the whole, themes and issues that fall within the terms and conditions of employment. It also looks at the development of dispute resolution procedures between employees and management.