The rapid growth of industrialization has created a yawning gulf between labor
and management because of their divergent interests. The goal of
profit maximization on the part of management and the demand of
employees for income stability, security of employment, protection of
skills and improvement in their status has become a major source of
conflict between them. The denial or refusal by the management to meet
the genuine demands of employees has generated a climate of distrust,
indiscipline and militancy, which have hindered production
and harmed the employer and employee relations. Between 1921 and
2004, India lost about 1233.09 million man-days in work-stoppages,
caused by industrial disputes between workmen and employers. During
1993-96, the loss of production due to strikes and lockout was Rs.
1,721.6 mn and the wage loss was Rs. 921.65
mn. The consequences of industrial conflicts are very far-reaching;
they not only cause personal hardship and mental agony to workers
and heavy losses to employers through stoppages of production,
reduction in sales and loss of markets, but also disturb the economic, social
and political life of the country. Industrial progress can be sustained
by avoiding manifestation of disputes like work-stoppages and loss of
production through negotiations between the employer and the
employees. Consultations between the representatives of employers
and workers build a cooperative structure based on the mutuality of
interest.
In the light of the above, this article attempts to highlight
the significance of collective bargaining as a process of joint decision
making by both the groups to promote industrial peace, without
disrupting the production activities. Mahatma Gandhi had immense faith in
the concept of resolving industrial disputes through mutual
negotiations. Gandhiji's philosophy of Ahimsa (non-violence) added a
significant dimension to the concept of industrial relations. He pleaded for
perfect understanding between labor and management, respect for
mutual rights and responsibilities for happy and constructive industrial
relations. The first collective bargaining agreement in our country was
concluded in 1920 at the instance of Mahatma Gandhi to regulate
labor-management relations between a group of employers and their workers in
the textile industry in Ahmadabad. |
