1. Understanding the LTWS Landscape
A Long-Term Wage Settlement (LTWS) is usually a bilateral agreement between management and recognized trade unions that sets wages, allowances, incentives, and working conditions for three to five years or more. In some industries, a trilateral agreement including government representatives is used to ensure smoother implementation and compliance. These settlements aim to promote industrial harmony, financial stability, and operational efficiency.
In India, a Bipartite Wage Settlement is negotiated directly between the employer and trade unions or workers without government involvement, while a Tripartite Wage Settlement includes the government as a mediator alongside the employer and unions.
Today, LTWS goes beyond wage adjustments and serves as a platform for deeper collaboration among all stakeholders, adapting to global and domestic challenges.
2. Pillars for Successful Long Term Wage Settlement
Pillar 1: Preparation – The Bedrock of...
