This chapter discusses industrial relations in hospitals. The hospital is a complex industry. The health care organizations are highly labor intensive organizations, a substantial amount of the expenditure of the hospital goes toward the payroll cost. The hospital administration is expected to be responsive toward needs and demands of the worker. The hospital administrator must have the quality, capability and capacity to handle and situation arising out of unrest among the workers. Collective bargaining denotes the organised efforts of the employees and management to negotiate different aspects of working conditions, wages, and employment with a view of arriving at a settlement. Collective bargaining agreements sometimes renounce or limit the settlement of disputes through trade union action.