Collective Bargaining under Labour Law
Meaning
The Section 18 of the Industrial Dispute Act, 1947 discusses the concept of collective bargaining which indicates that any settlement other than a conciliation, arrived through an agreement by an employer and his employees shall be binding on them.
As per Article 2 of the Collective Bargaining Convention, 1981, collective bargaining means all negotiations which take place between an employer, a group of employers and one or more workers’ organisations.
Objectives
The objectives of collective bargaining are as follows:
- To ensure justice for socially and economically backward groups.
- To protect the working class from exploitation.
- To ensure industrial democracy.
Case Law:
In case of Bharat Iron Works v. Bhagubhai Balubhai Patel, it was observed that collective bargaining must be practised in a healthy manner in which there is mutual cooperation between the employers and the employees.