To be successful, collective bargaining should be a strong representative union (2) Strong and sympathetic leadership (3) Agreement on fundamental objectives (4) Mutual cooperation and trust (5) the existence of investigative approaches and the willingness to use new methods and instruments to solve industrial problems. The agreement between union representatives and the employer is called a collective agreement. Ludwig Teller generally defined the collective agreement as “an agreement between a single employer or employer organization, on the one hand, and a union, on the other, which regulates the conditions of employment.” The term “collective,” as applied to the collective agreement, reflects the plurality not of the employer who may be associated with it, but of the employees involved. Here, too, the term collective bargaining is reserved as a bargaining partner between an employer or group of employers and a union in good faith. It is assumed that negotiations involving a company-dominated union are merely a disguised form of individual bargaining. The collective agreement continues to bear the traces of decades of work that work for workers` equality by recognizing the concepts that underlie collective bargaining. In India, leaders have a negative attitude towards trade unions. They do not appreciate the membership of their workers in trade unions. Since strong unions are a must for collective bargaining, this management attitude hinders the process.
(iii) Several workers negotiate – This may be a negotiation of several employers, i.e. between all workers` unions in the same branch through their federal organizations and the employers` organization. This is possible both locally and regionally and is widely used in the textile industry. The reason for this demand is that the collective bargaining process resembles profitable and less profitable units and does not have the ability to reward a higher level of productivity. The internal management process is rarely negotiated in an open forum. This means that others can hardly duplicate a company`s quality practice. Not only can a company, even if it goes the same way of negotiating to obtain the same rate of pay for its workers as its competitors, cannot obtain the same benefit and obligation from its workers. The reaction of workers under a collective agreement depends less on the actual agreement than on how such an agreement was reached. Collective bargaining is a process in which business and worker representatives meet and negotiate terms of employment for mutual benefits.
An important factor that is not widely recognized, but still prevails in many organized branch units, is the fixing and revision of wages through collective bargaining.