24982813 Collective Barganing

8/8/2019 24982813 Collective Barganing

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Strikes in India in this year (from Jan.09 to till date)

Date Description5 Jan. 2009 Coal industry, due to wages7 Jan. 2009 Public oil sector, due to wages7 Feb. 2009 NTPC, to salary20 April 2009 Hyundai, due to establish a trade union29 July 2009 Strike finished & loss of 1800 cars

30 April 2009 Mumbai Airport, due to transfer2 may 2009 Nestle, Rudrapur due to release of probation employees4 may 2009 M&M, Nasik, due to dismiss of trade union leader9 may 2009 MRF, Arakonam due to wages12 may 2009 JNPT, Paradeep & Kochi port due to wages20 may 2009 MTNL, due to salary

Beladila Mines due to salary & working condition

12 June 2009 Public Sector Banks, due to salary25 Aug. 2009 Air India, due to retrenchment in salary7 Sep.2009 Jet Airways Pilots on medical leave, due to dismiss of

pilots (National Aviators Gild)13 Sep.2009 Strike finished, loss of 25-30crore


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Collective Bargaining (combined - good deal)

Collective bargaining is a technique adopted by theorganisations of workers and employers collectively to resolvetheir differences with or without the assistance of third party.Its ultimate aim to reach some settlement acceptable to both

the parties involved in labour management relation. Collective bargaining includes not only negotiations between theemployers and unions but also includes the process of resolving labor-management conflicts. Thus, collective

bargaining is, essentially, a recognized way of creating a

system of industrial jurisprudence. It acts as a method of introducing civil rights in the industry, that is, the managementshould be conducted by rules. It establishes rules which defineand restrict the authority exercised by the management


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Definition: According to Dale Yoder, Collective bargaining is the

term used to describe a situation in which theessential conditions of employment are determined bybargaining process undertaken by representatives of a

group of workers on the one hand and of one or moreemployers on the other.

In the words of Flippo, Collective bargaining is aprocess in which the representatives of a labourorganisation and the representatives of businessorganisation meet and attempt to negotiate a contractor agreement, which specifies the nature of employee-employer-union relationship.


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Subject matter

As per The Indian Institute of Personnel Management

Purpose of agreement, its scope, and the definition of importantterms -

Rights and responsibilities of the management and of the tradeunionWages, bonus, production norms, leave, retirement benefits,and terms and conditions of service

Grievance remedy procedureMethods and machinery for the settlement of possible futuredisputesTermination clause .


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B argaining in good faith is the foundation

stone of effective labor managementrelations. It means that both partiescommunicate and negotiate. It means that

proposals are matched with counter proposals and that both parties make everyreasonable effort to arrive at agreement. It

does not mean that either party is forced toagree to a proposal. Nor does it require thateither party make any specific concessions .


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IMPORTANCE TO EMPLOYEES

Collective bargaining develops a sense of self respectand responsibility among the employees.

It increases the strength of the workforce, thereby,increasing their bargaining capacity as a group.

Collective bargaining increases the morale andproductivity of employees.

It restricts managements freedom for randomly actionagainst the employees.

Effective collective bargaining machinery strengthensthe trade unions movement.

The workers feel motivated as they can approach themanagement on various matters and bargain for higherbenefits.

It helps in securing a prompt and fair settlement of

grievances.


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IMPORTANCE TO EMPLOYERS

It becomes easier for the management to resolveissues at the bargaining level rather than taking up complaints of individual workers.

Collective bargaining tends to promote a sense of

job security among employees and thereby tendsto reduce the cost of labor turnover tomanagement .

Collective bargaining opens up the channel of

communication between the workers and themanagement .

Collective bargaining plays a vital role in settling and preventing industrial disputes.


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IMPORTANCE TO SOCIETY

Collective bargaining leads to industrial peace in thecountry.

It results in establishment of a pleasant industrial

climate .

The unfairness and exploitation of workers isconstantly being checked.

It provides a method or the regulation of the conditionsof employment of those who are directly concernedabout them.


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Features of Collective bargaining

A tree is known by its fruit. Collective bargaining maybest be known by its characteristics . Randle

It is a group action to individual action and is initiatedthrough the representatives of workersIt is flexible and mobile, and not fixed or static

It is a two party process

It is a continuous processIt is dynamic

It is industrial democracy

It is an art, an advanced form of human relation


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TYPES OF COLLECTIVE BARGAINING

Or

Collective Bargaining Agreement at Different Levels

Workplace bargaining or plant bargaining

Company bargaining

National bargaining

Effort bargaining

Productivity bargaining Coordinating bargaining


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COLLECTIVE BARGAINING AGREEMENT

AT DIFFERENT LEVELS

L evels of Collective Bargaining

National level Sector or industry level Company/enterprise level


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PRIN C IPLES OF

CO LLE CT IVE BA RG A ININGArnold F. Campo has laid down certain essential general

principles of collective bargaining. These are

For Union & Management

finding the best possibility

honest attempt to solve the problemleaders have the opportunity to present their demandsmutual consent & confidence with good faith


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For Management

must develop constantly & acceptable follow arealistic labour policy

periodically examine the rules & regulationsto conclude the attitude of the employees

promote their comfort and gain their goodwill &cooperationtrade union feels its position is secure

For Union

only to welfare of its membersrecognize the economic suggestions relatives income &resources of the organisation

Also for Non-Economic suggestions


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PR OC ESS OF CO LLE CT IVE BA RG A INING

1.

Preparing for

Negotiation2. I dentifying Bargaining I ssues

3. S ettlement & Contract Agreement4. Administration of the Agreement

P reparing for N egotiation

P repare specific proposal for changesConclude the packageP

repare statistical dataFinancial position of the companyAttitude of the managementDesire of the employeesFollow-up the action planB oth the parties, at all times, respect the right of the public


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I dentifying Bargaining I ssuesW ages related issues wages, overtime,Supplementary economic benefits paid holiday & leaves,health insurance plan, pension plans and P F etc.Institutional issues rights & duties of employees andemployersAdministrative issues technological changes, job security,

promotion, development & training programs, code of discipline

S ettlement & Contract AgreementClear and specific

Administration of the AgreementM ust be communicated to all effects levelsHR manager plays crucial and advisory role


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MA ND ATO RY I T E M S FO R CO LLE CT IVE BA RG A INING

R eed R ichardson has shown the issue to be included in thecollective bargaining agreement

W ages, working hours, paid holidays & vacations,grienvance procedure, lay-off plan, lunch & rest

periods, safety rules, job position procedure, plant shutdown & relocation, profit-sharing plan & bonus

payment, overtime pay, sick leave, pension plan,retirement age, prices of meals provided by employer,group insurance (health, accident & life policies),

promotions, seniority, transfer, discount on company

product, strike & lock-out clause .


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Solutions / Condition Essential for Successful CollectiveBargaining

orStrengthening Collective Bargaining

Strong & Stability of Trade Unions Recognition of Trade Unions Mutual Accommodation or Willingness to Give & Take

Policy Mutual Trust and Confidence Efficiently Bargaining Emphasis on Problem-Solving Favorable Political Climate


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Outcomes of

Collective Bargaining

Lose Lose (employee & employers) Lose Win (employee & employers) Win Lose (employee & employers) Win -Win (employee & employers)


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CO LLE CT IVE BA RG A INING IN INDI A

I t was started in the first Five- Year P lan :-Collective bargaining, as it is known and trained, isalmost unknown in India, as a matter of principle, itwas accepted for usage in union-managementrelations by the state.The effort of the state is to encourage mutualsettlements, collective bargaining, voluntaryarbitration to the uppermost coverage and thereby

reduce to the minimum the number of disputes for itsinvolvement.

I ndian L abour Conference in 195 2:-

Compulsory settlement


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CO LLE CT IVE BA RG A INING IN INDI A

N ational Commission on L abour :-Should be sort out at the plant level

EF

Istudied in

1970:-Study covered 109 collective agreements, relating

to 77 companies and 11 industrial associations

R ecent Trends :-Traditional Issues wages, DA, employment

conditionsNon- Traditional Issues- better welfare facilities,

demand for better benefits

Documents

24982813 Collective Barganing