The collective bargaining is a process in which the terms of the reference for employment would be negotiated jointly on behalf of the group of employees at the time of recruitment (Labor Law Group, 1984)). The trade unions generally represent the employees in defining the terms of reference like wages, working hours, living conditions etc. After the negotiations, a contract will be made which is legally binding on trade unions and employers. The collective bargaining is also viewed as a human right that is to be protected legally as envisaged by the Article 23 of the Universal Declaration of Human Rights. The right to bargain collectively through freedom of association was also recognized under Item 2(a) of the International Labor Organizations Declaration on Fundamental Principles and Rights at Work.
The collective bargaining was one of the most effective methods of employment in the earlier days which witnessed challenges due to the era of globalization and liberalization. The growth of individual thought and freedom has led to fall of trade unions and individuals started preferring direct contact with the employers. At the same time, the employers too started feeling the inconvenience of trade unions by over interference in company administration and hence they also preferred individual contracts. They give higher emphasis to the human resource development for improving the employee performance. At employee level also, the preference to bargain directly with employers has increased in the recent years due to changes brought by the globalization. Though the concepts of collectivism and individualism is well accepted under working style of organizations, there has been a growing feeling that individualism is increasing among employees day by day. Hence, it is appropriate time to study and analyze the extent to which the employment relationship is becoming