The idea of collective bargaining arose from labour disputes and the growth of the labour movement and was first fuelled by Samuel Crompers in the United States. In India, the first collective agreement was concluded in 1920 on the example of Mahatma Gandhi to settle the relationship between a group of employers and their workers in the textile industry in Ahmadabad. But in this time of recession, as demand for the product and profits declines, it is very difficult for the employer to meet the demands of workers, it could even resort to reductions, or even the closure of collective bargaining, is not a response to such a situation. Collective bargaining is a process in the sense that it consists of a number of steps. The starting point is the presentation by workers of a charter of claims, and the final step is to obtain an agreement or contract that would serve as a fundamental law for the relationship between labour and management over a period of time in a company. The most direct strategies are those that require equal pay for equal work and equal pay for work of equal value. Equal pay for equal work was most effective when they called for the elimination of differences in pay rates between men and women in industrial agreements. The rapid reduction of the gender pay gap in Australia and the United Kingdom in the 1970s, for example, demonstrates the effectiveness of measures to eliminate direct discrimination in collective agreements (Gregory et al. 1989, Zabalza and Tzannatos, 1985). The improvements made in Sweden over the same decade also reflect the benefit of broad coverage by collective agreements and, in this case, are due to the introduction of equal pay legislation. Although equal pay requirements may be quite effective at first if they compensate for minimum rates between men and women in a comprehensive set of collective agreements, the extent of segregation in the labour market means that most equal pay provisions for equal work apply only to a small proportion of women. , as few men and women actually do the same work. The government approach sees collective bargaining as a constitutional system in the industry.
It`s a political relationship. The union shares sovereignty with management over workers and, as a representative, uses that power in its best interest. The implementation of the agreement is governed by a balance between the provisions of the agreement and the needs and ethics of each case. The union can negotiate with a single employer (who usually represents a company`s shareholder) or with a group of companies, depending on the country, in order to reach an industry-wide agreement. A collective agreement functions as an employment contract between an employer and one or more unions. Collective bargaining is conducted in negotiations between union representatives and employers (usually represented by management or, in some countries such as Austria, Sweden and the Netherlands, by an employers` organisation) on the conditions of employment of workers, such as wages, working time, working conditions, redress procedures and trade union rights and obligations. The parties often refer to the outcome of the collective agreement or collective agreement (AEC) negotiation. The Office of Labor Management Standards, part of the U.S. Department of Labor, is required to collect all collective agreements for 1,000 or more workers, with the exception of those involving railroads and airlines.  They offer the public access to these collections through their website.