Collective Bargaining - Meaning

Collective Bargaining under Labour Law


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.


The objectives of collective bargaining are as follows:

  1. To ensure justice for socially and economically backward groups.
  2. To protect the working class from exploitation.
  3. 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.

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