Top 10 Challenges of Collective Bargaining in India

The progress of collective bargaining in all industries in India is not very encouraging. The major emphasis of booth unions and employers is to settle the dispute through adjudication rather than sporting out the issues among themselves.

challenges of collective bargaining in India
challenges of collective bargaining in India

Most of the collective bargaining is limited to large plants and a few selected industries only.

Several factors are responsible for this state of affairs.

What are the Factors Affecting Collective Bargaining?

These are discussed below:

1. Multiple Unions

There is a problem of the multiplicity of unions in the past of the industrial establishments.

No union enjoys the support of the majority of workers in the plant.

Moreover, rivalry among the trade unions does not allow to create the proper atmosphere for collective bargaining.

2. Non-Recognition

There is a lack of definite procedure to determine which union is to be recognized to serve as a bargaining agent on behalf of the workers.

3. Political Domination

There has been a very close association between the trade unions and political parties.

As a result, the trade union movement has not encouraged collective bargaining but has learned towards postictal orientations.

4. Weak Trade Union Movement

The trade union movement still covers only a small portion of the total industrial employment.

Besides, the unions are too weak to bargain collectively on account of their small membership, poor financial resources, multiplicity, inter-union and intra union rivalry, politicization, poor leadership, and absence of suitable legislative provisions for recognizing them as bargaining agents.

Related: Need and Importance of Leadership in Business.

5. Excessive Dependence on Adjudication

A large number of organizations and trade unions like to use the devices of compulsory adjudication for the settlement of their industrial disputes.

6. Reduction in the Area of Collective Bargaining

The area of collective bargaining has gradually receded in recent years due to the emergence of several new institutions and modes such as wage boards, statutory fixation of minimum wages and payment of bonus, regulation of fines and deductions, working hours, overtime payment, holidayed, welfare and social security measures.

7. Defective Laws

The law provides easy access to education.

factors affecting collective bargaining
factors affecting collective bargaining

Under the industrial disputes Act, the parties to the dispute may request the government to refer the matter to adjudication and the government will constitute the adjudication machinery.

Thus, faith in the bargaining process is disputed.

Related: Major Styles of Conflict Management that Managers Can Adopt.

8. Little Government Support

The government has shown little interest in ion collective bargaining because:

  1. It does not have confidence in the bargaining strength of our trade unions,
  2. It has fear of stickers and lockouts,
  3. It has fear of the communists gaining in strength.

9. Interference by Political Leaders

More often, industrial disputes are sought to be settled by inviting the political leaders to mediate and help the parties agree.

The inhibits the growth of collective bargaining.

10. Planned Economy

In a planned economy the overall industrial relations pattern is sought to be developed taking into account the overall objectives of the nation and governments fiscal, monetary, and industrial policies.

Hence, unadulterated bilateral negotiations without the state’s involvement are not possible.

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