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 using the example of Mahatma Gandhi to settle relations between a group of employers and their workers in the textile industry in Ahmadabad. Maximum labour use is a must for effective management. To this end, cooperation on the part of workers is necessary and collective bargaining is an instrument for achieving and promoting cooperation. Labour disputes are most often due to certain direct or indirect causes and are due to rumours and misunderstandings. Collective bargaining is the best way to maintain cordial relations. The American Federation of Labor was founded in 1886 and provided a large number of workers with unprecedented bargaining power.  The Railway Labor Act (1926) required employers to bargain collectively with unions. Another topic of negotiation is seniority, but it is less important in India than in Western countries. But in India, layoffs, cuts, layoffs, rationalizations and participation in trade union activities have been important issues for collective bargaining.
Since independence, the declared policy of the central government has been to promote the development of trade unions and the settlement of industrial differences by mutual agreement. The negotiation process is the part of collective bargaining that makes headlines and attracts public attention; Wage increases are announced, grim forecasts of price increases are made. If the government is committed to supporting the principle of collective bargaining, why has it not been legislated? The Trade Union Review Act 1947 did not provide for the mandatory recognition of representative unions by employers, but it was never notified and therefore never came into force.