The united working class becomes a power to protect its interests from the exploitation of employers through collective bargaining. At the time when the old agreement is about to expire or well before, workers` representatives come with new requirements. Such requirements are also made when the industry is losing out, or even during the period of depression. If management accepts the requirement of higher wages and other benefits, they would prefer to close the plants. Horizontal and Vertical Collective Agreements The Collective Relations Act distinguishes horizontal collective agreements, i.e. professional agreements that cover a group of workers identified for a particular occupation or job (. B, for example, an agreement for pilots) and vertical collective agreements, that is, . Sectoral agreements governing workers` industrial and labour relations, set for all employees in a particular sector (. B for example, an agreement for the textile industry or the banking sector). In Article 12, the law gives priority to vertical agreements which stipulate that they enter into force after publication and denounce horizontal agreements, even if the minimum duration of these agreements is not respected. This priority assumes, of course, that an organization that has signed the horizontal contract that has been terminated is also a party to the new vertical agreement, because only if this is the case will the relevant principles in terms of the right to negotiate and the scope of collective agreements can be respected.
This is generally the case, as many vertical agreements are signed by a large number of primary unions, which may include trade unions. To see conflict between collective agreements . 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, in 1920, the first collective agreement was established on the example of Mahatma Gandhi to regulate the relationship between a group of employers and their workers in the textile industry at Ahmadabad Content. However, there are a number of exceptions to this principle. On the one hand, the law gives a positive delineation of the content of the agreements. Article 5 of the Collective Relations Act stipulates that they may govern the reciprocal rights and obligations of workers and employers; relations between states that are signatories to an agreement; dispute resolution procedures resulting from individual employment contracts, the introduction of conciliation, conciliation and arbitration mechanisms. This formulation reflects the distinction made by lawyers between the mandatory and prescriptive parts of collective agreements.
In addition, the law (mainly in Article 6) contains a negative delineation of the content of the agreements. First, the general limitations arise from the limits of collective autonomy itself: collective agreements must not regulate economic activities with regard to the working time of companies, the tax system and price formation. Second, there are a number of limitations on autonomy arising from compliance with constitutional and ordinary provisions, a general restriction that stems from the hierarchy of legal sources that the law itself establishes, stating that collective agreements should not restrict the exercise of fundamental constitutional rights and should not benefit from binding legislation. The prohibition of trade union affiliations (closed store) is a consequence of this.