Volume : 4, Issue : 7, July - 2015

Laws and Realities of Collective Bargaining Agreement (CBA) in Indian Industries

Debayan Nandi

Abstract :

<p>Collective bargaining is a process of negotiation between employers and employees aimed at accomplishment for conformity to standardize working conditions. The interests of the employees are generally presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs. The parties often refer to the result of the negotiation as a collective bargaining agreement (CBA) or as a Collective Employment Agreement (CEA). This study analyzes the consequence of legalized unionization on economic growth, and reckons the &ldquo;dead-weight loss&rdquo; resulting from unionization. By uplifting the cost of labor, unions lessen the number of job opportunities in unionized industries. Those, roll the supply of labour in the non-union sector, in that way driving down wages in those industries. The effect of this situation is to increase the natural rate of unemployment, thus imposing a dead-weight loss of economic productivity on the economy</p>