COLLECTIVE BARGAINING

1) CONCEPT – HISTORY & DEFINITION

 Definition:
Collective bargaining means when a group of workers (usually through a trade union)
come together to talk and negotiate with the employer about work-related issues like
salary, hours, safety, etc.
 History in India:
o Originated from western labour practices.

o The Trade Unions Act, 1926 gave legal status to trade unions.

o Supported by the Indian Constitution under Article 19(1)(c) – Right to form

associations/unions.
2) ADVANTAGES AND DISADVANTAGES
Merits:
 Uniform working conditions
 Reflection of unity.
 Low-cost settlement
 Peaceful dispute resolution
Demerits:
 Majority but not full agreement
 Power imbalance
 Compromise but no win
 Delays and deadlocks are common.
3) BARGAINING PROCESS (STAGES)
1. Preparation:
Both sides gather facts, set goals, and prepare proposals.
2. Discussion:
Meetings are held to understand each other's views.
3. Negotiation:
Offers and counter-offers are exchanged. Both sides may compromise.
4. Settlement or Breakdown:
o If agreed: a written settlement is signed (known as a Settlement under
Section 2(p) of the Industrial Disputes Act).
 o If not: dispute may go to conciliation, adjudication or lead to a strike or
lockout.
4) TYPES OF COLLECTIVE BARGAINING
NATIONAL-LEVEL BARGAINING happens between national trade unions and large
groups of employers. It deals with issues that affect workers across the whole country.
INDUSTRY-LEVEL BARGAINING takes place within a specific industry, like textiles or
banking, where all companies in that field follow a common agreement.
COMPANY-LEVEL BARGAINING, also called corporate-level, is between the
management and employees of one company and focuses on matters like wages, leave, and
working hours.
PLANT-LEVEL BARGAINING is done at a single factory or unit and mainly looks at local
issues faced by the workers there.
5) IMPLICATIONS
(a) If It Succeeds:
 A mutual agreement is signed.
 Both parties must follow the terms.
 Leads to workplace peace and fairness.
(b) If It Fails:
 Workers may go on strike (Section 2(q)).
 Employers may declare a lockout (Section 2(l)).
 Conciliation officers (under Section 4) or tribunals (under Section 7) may step in
to resolve the dispute.
INDUSTRIAL RELATIONS CODE, 2020 – SECTION 62 (A) & (B)
 Workers must give 14-day notice before going on strike.
 No strikes or lockouts allowed:
o During conciliation or 7 days after,

o While the case is in Tribunal or 60 days after,

o During the time of a valid agreement or settlement.

INDUSTRIAL DISPUTES ACT, 1947 – SECTION 10(3) & 10A(4)

 Sec 10(3): No changes in work conditions or strikes allowed once a case goes to
Tribunal.
 Sec 10A(4): No strikes or lockouts during arbitration.
AFCON V. CHERYL KUMAR
The court supported collective bargaining as a fair method for workers and employers to
settle disputes peacefully, encouraging dialogue over strikes.
STRIKE AND LOCKOUT
1) DEFINITION & CONCEPT
 Strike (Section 2(q), IDA, 1947):
A strike is when a group of workers stop working together to demand better
conditions or protest something.
 Lockout (Section 2(l), IDA, 1947):
A lockout is when an employer shuts down the workplace or stops workers from
entering, usually to force workers to accept certain conditions.
2)ESSENTIALS OF A STRIKE
1. Temporary stoppage of work – Workers stop working for a short time.
2. Common action with mutual understanding – Workers act together with a shared
plan.
3. Linked to an industrial dispute – The strike must be about job-related issues like
pay or work conditions.
3) TYPES OF STRIKES
GENERAL STRIKE is when most or all of the workers in a particular industry stop
working together. This is usually done on a large scale to ask for better wages, working hours,
or other rights. For example, if all textile workers across many factories stop working at the
same time, it is a general strike.
SYMPATHY STRIKE is when workers go on strike not for their own demands, but to
support other workers who are already on strike. Even if the issue doesn't directly affect
them, they join the strike to show unity and support.
SLOWDOWN STRIKE workers do not stop working completely, but they work very
slowly on purpose. This is done to reduce production and put pressure on the employer
without actually leaving the job. For example, workers in a factory may take a lot of time to
finish even simple tasks so that less work gets done.
PEN DOWN OR TOOL DOWN STRIKE happens when workers come to their office or
factory, but they do not do any work. Office workers may sit at their desks but won’t write or
do tasks (pen down), and factory workers may put their tools aside and refuse to work (tool
down). This is also a way to protest while staying inside the workplace
4) LEGALITY AND ILLEGALITY OF STRIKES AND LOCKOUTS
LEGAL STRIKE/LOCKOUT:
 Section 22:
In public utility services, 6 weeks' prior notice must be given before striking or
locking out.
  Section 23:
No strike or lockout allowed:
o During conciliation proceedings and 7 days after they end.

o During ongoing adjudication or tribunal proceedings and 2 months after.

o During the operation of a settlement or award (6 months).

ILLEGAL STRIKE/LOCKOUT:
 Section 24:
A strike or lockout is illegal if:
o It violates Sections 22 or 23.

o It happens during conciliation/adjudication periods.

o It goes against a lawful settlement or award.

PENALTIES:
 Section 25:
o Illegal strike/lockout = fine or imprisonment.

o Workers may lose wages.

o Employer may face legal action.

IS STRIKE A FUNDAMENTAL RIGHT?

 No, the right to strike is not a fundamental right.
 Article 19(1)(c) gives the right to form associations, but not to go on strike.

T.K. Rangarajan v. Government of Tamil Nadu (2003)

Supreme Court ruled that government employees do not have a right to strike.
HARISH UPPAL V. UNION OF INDIA (2003)
 Supreme Court held that lawyers do not have the right to strike or boycott courts,
as it harms justice delivery.