In my view it would be perfectly all right for the old agreement to be extended for a further period, provided the Union gives its consent to it. However, if the Union is wanting the agreement to be revised on the expiry of the ageement, a fresh charter of demands will have to be placed before the management and negotiations started. The Management may take a stand that no revision is called for keeping in view its financial condition. On the other hand the Union will have to justify as to why it is demanding a revision.
If negotiations fail, the matter will go in for conciliation and finally before adjudication.
This is the normal procedure in all cases of wage revision.
There are organisations where the Unions are weak and go by the dictates of the management. In this situation, the old agreement gets extended with the benefit of dearness allowance and other linked payments.
11th December 2009 From India , Nagpur