Collective bargaining
Topic: Employment, Unemployment and Informalisation · NCERT: Beyond NCERT
Meaning
Collective bargaining is when an employer negotiates with a group of workers, usually through a trade union, instead of with each worker separately. The talks cover wages, working conditions and benefits. It gives workers more bargaining power because they act together. In India, this is mostly available to the small organised workforce. The Trade Unions Act 1926 is now part of the Industrial Relations Code.
Example
Before the Ahmedabad textile mills closed, a strong mill union bargained for its 1,50,000 workers. They won a living wage, health cover and old-age cover. The union also ran welfare activities for workers' families.
Don't confuse with
- Tripartism: this means government, employers and workers' organisations working together on labour standards, for example through the Indian Labour Conference. Collective bargaining is between employers and workers only.
Related concepts
- Organised sector
- Unorganised sector
- Job security
- Overtime
- Paid leave
- Provident fund
- Gratuity
- Pension
- Social security
- Trade unions