Collective bargaining& WPM

Definition• CB is a process of negotiations between employers

and a group of employees aimed at reaching agreements

• Typical issues covered in a labor contract are hours, wages, benefits, working conditions, and the rules of the workplace.

• Once both sides have reached a contract that they find agreeable, it is signed and kept in place for a set period of time, most commonly three years.

• The parties involved in negotiations refer the result as a Collective Bargaining

Agreement (CBA) / Collective Employment Agreement (CEA).

Features:

1.It is a collective process.

The representatives of both workers and management participate in bargaining.

2. It is a continuous process. It establishes regular and stable relationship between the parties involved.

3. It is a flexible and dynamic process. The parties have to adopt a flexible attitude through the process of bargaining.

4. It is a method of partnership of workers in management

5.Plays a vital role in settling and preventing industrial disputes.

Collective Bargaining Process• In many companies, agreements have a fixed time

scale and a collective bargaining process will review the procedural agreement when negotiations take place on pay and conditions of employment.

Collective bargaining process comprises of five core steps:

• Prepare: This phase involves composition of a negotiation

team. The negotiation team should consist of representatives

of both the parties with adequate knowledge and skills for

negotiation.

• Discuss: The parties decide the ground rules that will guide

the negotiations.

• Propose: This phase could be described as brainstorming‘. The

exchange of messages takes place and opinion of both the parties

is sought.

• Bargain: This stage comprises the time when what ifs‘ and

supposals are set forth and the drafting of agreements take place.

• Settlement : This stage is described as consisting of effective

joint implementation of the agreement through shared visions,

strategic planning and negotiated change.

Problems of Collective Bargaining

I. Trade unions are having political affiliations, they continue to be dominated by politicians, who use the unions and their members to meet their political ends.

II. There is a lack of definite procedure to determine which union is to be recognized to serve as a bargaining agent on behalf of the workers

III. There has been very close association between the trade unions and political parties. As a result, trade union movement has leaned towards political orientations rather than collective bargaining

Meaning of WPM

WPM is a system of communication and consultation, either formal or informal, by which employees of an organization are kept informed about the affairs of

an undertaking and through which they express their opinion and contribute to mgt decisions.

WORKER’S PARTICIPATION IN MANAGEMENT

WORKER’S PARTICIPATION

Participation may be defined as taking part in sharing of power and status between the managers and the workers.

Workers’ participation in management seeks to bridge this gap authorizing workers to take part in the managerial process.

Thus, workers’ participation in management means giving scope for workers to influence the managerial decision making process at different levels by various forms in the organisation.

Objectives of WPM• Increasing productivity for the general benefit of

the enterprise, the employees and the community;

• Giving employees a better understanding of their role in the working of the industry & of the production process; and

• Satisfying the worker’s for self-expression, thus leading to industrial peace, better relations and increased co-operation.

Three groups of managerial decisions affect the workers of any industrial establishment and hence the workers must have a say in it.

•Economic decisions – methods of manufacturing, automation, shutdown, lay-offs, mergers.

•Personnel decisions – recruitment and selection, promotions, demotions, transfers, grievance settlement, work distribution.

•Social decisions – hours of work, welfare measures, questions affecting work rules and conduct of individual worker’s safety, health, sanitation and noise control.

Forms of WPM

• Informative & associative participation• Consultative participation• Administrative participation• Decision participation

Ways of participation•Board level participation•Ownership participation•Complete control•Staff or work councils•Joint councils and committees•Collective Bargaining•Job enlargement and enrichment•Suggestion schemes•Quality circles•Empowered teams•TQM (Total Quality Management)•Financial participation

Participative forums in India• Works committees;• Joint mgt. Councils;• Joint councils;• Unit councils;• Plant councils;• Shop councils;• Workers’ representative on the board of mgt;

and• Workers’ participation in share capital.

WPM in indian industries

• Workers representatives have been appointed on boards of managements of few public undertakings on a trial basis.

• Hindustan antibiotics limited• Hindustan organic chemicals limited• National coal mines development

corporation.etc

Reasons for failure of WPM• Ideological differences between the employer and the

employees regarding the degree of participation.• Failure to imbibe the spirit of participation by the parties• Multiplicity of participative forums• Lack of strong trade unionism• Illiteracy of workers• Non co-operative attitude of the working class• Delays in the implementation of the decisions of the

participative bodies