Abstract

Union-firm bargaining represents a central pillar of industrial relations in India shaping the evolution of wage structures employment contracts incentive-linked schemes and broader forms of worker compensation. As India’s labour market becomes increasingly complex due to technological advancements globalization pressures and the shift toward flexible forms of employment the traditional collective bargaining framework faces new challenges. This research paper examines how union-firm bargaining operates within diverse pay schemes such as productivity-linked wages skill-based pay performance-related incentives and profit-sharing models. The objective is to assess how collective bargaining influences fairness transparency worker motivation and organizational efficiency. The study also analyzes major policy reforms labour-market segmentation and employer-driven restructuring that have transformed wage determination practices. Using conceptual empirical and comparative approaches the paper