Effective collective bargaining & negotiation skills
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Effective collective bargaining & negotiation skills

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Effective collective bargaining & negotiation skills

Effective collective bargaining & negotiation skills

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Effective collective bargaining & negotiation skills Effective collective bargaining & negotiation skills Presentation Transcript

  • EFFECTIVE COLLECTIVE BARGAINING & NEGOTIATION SKILLSDR.BALAKRISHNAN MUNIAPAN Email: bala.hrm@gmail.com
  • INTRODUCTION & ICE BREAKER
  • INTRODUCTION & ICE BREAKERYour NameYour OrganizationYour current understanding of collective bargaining & negotiation &What do you hope to achieve from this 2 days seminar?
  • DR. BALAKRISHNAN MUNIAPAN Born and received early education in Sg Petani, Kedah. Holds BEcons (UKM), MSc (HRM) (Portsmouth, UK) CIWT,(ACAP, AUST), DBA (Philippines). Brings over 18 years of experience from various fields such as, manufacturing management, corporate training, consultancy and education. Presented papers at seminars & international conferences in several countries in Asia, Australia, Africa & Europe. Currently based in Kuching, Sarawak with an Australian branch campus university involved in teaching & research in HRM. Facilitates international DBA/MBA programs in OB & HRM.
  • PROGRAM OBJECTIVES Understand the framework of industrial relations & collective bargaining in Malaysia; Plan strategies & tactics for collective bargaining & negotiation; Handle stressful negotiation at the bargaining table with a positive mindset; & Develop the skills of an effective negotiator.
  • PROGRAM METHODOLOGY Short lectures, group discussions, presentations, role play and case studies approach will be used to enhance your learning experience. You are encouraged to discuss, contribute & share from your own knowledge & experience on issues related to collective bargaining, negotiation & industrial relations. This is in accordance with research on adult learning which shows that a deeper level of learning occurs when there is active participation on the part of the participants
  • GROUND RULES FOR LEARNINGActive listening (not just hearing)Appreciate others viewpoint (diversity)Off your mobile or in silent modeHave fun as you LEARN
  • INDUSTRIAL RELATIONS What is Industrial Relations? What is Employee Relations ?
  • INDUSTRIAL RELATIONS Industrial relations (IR) is be defined as the study of relations between employers, employees and their trade union. Industrial relations is also known as employee or labor relations. However, IR as a separate function in an organization only exist when the employees are unionized. Normally employee relations (ER) is the term used when workers are not members of a union.
  • FOCUS OF INDUSTRIAL RELATIONS laws & rules which impact on the work environment. terms & conditions of work. the process which the rules & terms are made. rights of employers & employees.
  • MALAYSIAN INDUSTRIAL RELATIONS SYSTEM Malaysian & almost all IR system are tripartite, i.e., they are made up of three parties. The parties or the participants in an IR systems are the employers, employees and the government. Rules and regulations on compensation, workers right, discipline and the duties and performance of employees can be made in any of 3 ways – unilaterally, bilaterally or in a tripartite way.
  • MINISTRY OF HUMAN RESOURCESThe seven departments in MHR are:- Department of Labor, Peninsular Malaysia Department of Labor, Sabah Department of Labor, Sarawak Department of Industrial Relations Department of Trade Unions Department of Occupational Safety & Health Department of Manpower
  • MINISTRY OF HUMAN RESOURCESOrganization which are independent but reports to the MHR are:- Social Security Organization. Employees Provident Fund. Human Resource Development Fund. Industrial Court.
  • INDUSTRIAL CONFLICT Conflict in terms of divergence interests between managers & workers can be seen in terms of the employers wish to maximize profits and employees want higher wages & better terms & conditions of service. Higher wages can only be paid at the expense of lowering profits. Thus, wants of employees & employees leads to conflict.
  • PRACTICAL ACTIVITY
  • GOOD INDUSTRIAL RELATIONS Good IR will lead both parties to work for a common goal - increasing growth and success of the organization so that its future is guaranteed & both profits & wages can be assured.
  • GOOD INDUSTRIAL RELATIONS Outcomes of good IR:  communication  understanding & trust  co-operation  mutual commitment to shared objectives Good IR arise from managers who believe that ‘people are the company’s most important asset’.
  • PSYCHOLOGICAL CONTRACT• Psychological contract is an unwritten agreement that sets out what the employers expects from the employees & what the employees expects from their employers.• It consists of mutual expectations & satisfaction of needs.• It covers a range of issues, rights & underlying assumptions about fairness and equity.
  • EMPLOYEES EXPECTATIONS• Safe & hygienic working conditions• Job security• Challenging work• Fair policies & participation• Creativity/opportunities• Consideration/understanding• Feedback
  • EMPLOYERS EXPECTATIONS• Obedience & commitment• Motivation & loyalty• Not to abuse goodwill• To uphold image of the organization• To accept the beliefs of the organization
  • PSYCHOLOGICAL CONTRACT When either the employers or the employees expectations are not met friction, difficulties & unharmonious relationship will occur.
  • PSYCHOLOGICAL CONTRACTThe extent of matches between employers &employees expectations will influence theorganization productivity, its profitability, jobsatisfaction, loyalty, etc.Understanding and matching thepsychological contract is essential in creatingand maintaining a harmonious IR in anyorganization.
  • PSYCHOLOGICAL CONTRACTHow do you think your organization has meet your employee’s expectations?As leaders what can you do to increase the level of job satisfactions of your employees?
  • COLLECTIVE BARGAINING IRA 1967 defines collective bargaining as negotiating with a view to conclusion of a collective agreement. Collective agreement is an agreement in writing concluded between an employer or a trade union of employers on one hand, and a trade union of workmen on the other relating to the terms and conditions of employment and work of workmen or concerning relations between such parties.
  • COLLECTIVE BARGAINING For effective collective bargaining, the union1. Must be recognized by the employer2. Must have financial strength3. Members must have solidarity Registration gives the union the legal right to exist but recognition means employer accepts the union as the rightful representative of his workers.
  • MANAGEMENT PREROGATIVESSection 13(3) of IRA 1967 states no trade union of workmen may include for proposal for collective agreement the following matters:-• The promotion by an employer of any workman from a lower grade or category to a higher grade or category;
  • MANAGEMENT PREROGATIVES• The transfer by an employer of a workman within the organization of employer’s profession, business, trade or work, provide that such transfer does not entail a change to the detriment of a workman in regard to his terms of employment;
  • MANAGEMENT PREROGATIVES• Employment by an employer of any person that he may appoint in the event of a vacancy arising in his establishment;• The termination by an employer of services of a workman by reason of redundancy or by reason of reorganization of an employer’s profession, business, trade or work or the criteria for such termination;
  • MANAGEMENT PREROGATIVES• The dismissal and reinstatement of a workman by an employer• The assignment or allocation by an employer of duties or specific tasks to a workman that are consistent or compatible with terms of his employment
  • CASE STUDYKassim has a MBA in HRM is offered the position of Manager – Industrial Relations at a local manufacturing company. He does well during the probationary period & is confirmed in his position. Soon after, the National Union representing companies in his industry, are recognized to represent the employees. Kassim has never worked with Unions before and has a hard time negotiating the first CA with the mandate given by the management. He does little to build rapport with the Union, who start picketing outside the Company’s premises. Kassim calls in the Police (who are his good friends), who arrest the Union leaders for causing public disturbance . The Union had overlooked his relationship with the local Police & did not seek a permit for picketing. After 2 days, the Union leaders are released…now they refuse to proceed with negotiations over the CA & are working to rule. Production & quality suffers & employee morale falls. The MD calls for termination of Kassim.
  • COLLECTIVE BARGAINING PROCESS – 3 PHASES1. PREPARATION FOR NEGOTIATION Monitoring the environment and collecting information Analyzing market practice & industry norms Analyzing the union proposals Determining management’s position Selecting the bargaining team Securing top management approval
  • COLLECTIVE BARGAINING PROCESS – 3 PHASES2. FACE-TO-FACE BARGAINING Negotiating with the union Bargaining strategies Signing of the collective agreement
  • COLLECTIVE BARGAINING PROCESS – 3 PHASES3. ADMINISTRATIVE OF COLLECTIVE AGREEMENT Briefing of all management staff Adjusting compensation & policies Ensuring compliance from management & union
  • PREPARATION FOR NEGOTIATION Monitoring the environment & collecting information. Know the employment laws Know the court awards Study the current collective agreement Collective agreements of other organizations Documentation of experiences in administration of the agreement
  • PREPARATION FOR NEGOTIATION Analyzing market practices & industry norms Understand the economic indicators Learn the practices in other organizations in the industry & surrounding geographical area (includes salary & benefits survey)
  • PREPARATION FOR NEGOTIATION Analyzing the union proposals Compare it with existing CA Various clauses should be analyzed in detail
  • PREPARATION FOR NEGOTIATION Determining Management Position Evaluate the union demands & determine what are the realistic clauses Work out the costing of each demands of the union Where increments are concerned, IC Award 117/82 – CPI may be used as a guide to what is reasonable
  • PREPARATION FOR NEGOTIATION Selecting the bargaining team Should CEO be in the bargaining team? Why & why not? Management team = 3-4 negotiator with a chief negotiator What are the criteria for selection?
  • PREPARATION FOR NEGOTIATION Securing top management approval Once the management negotiating team has been appointed, they should meet out the goals & strategy for the team Top management should approve the overall bargaining goals or give a mandate to the bargaining team, so that they have a guide to what they can & cannot offer
  • FACE-TO-FACE BARGAINING Negotiating with the union What are the do’s & don’ts of bargaining? How to avoid deadlock? Signing of CA – 10 copies to Industrial Court for cognizance within 1 month of the agreement
  • ADMINISTRATIVE OF COLLECTIVE AGREEMENT Briefing of all management staff Responsibility of the management to ensure all management staff are familiar with the new collective agreement This done through meetings and training sessions
  • ADMINISTRATIVE OF COLLECTIVE AGREEMENT Adjusting compensation policies What is the role of HR? Ensuring compliance from management & union What is the role of HR?
  • NEGOTIATION SKILLS Negotiation occurs when conflict exists between groups and both parties are prepared to seek a resolution through bargaining. Negotiation helps to develop mutually beneficial solutions in situation of conflict.
  • NEGOTIATION SKILLS Do you consider yourself a negotiator? What is your strength & weaknesses as a negotiator? Find out the your partner’s negotiation strengths & weaknesses
  • NEGOTIATION – SELF ASSESSMENTIncrease Your Self-Awareness: Assess Your Self-Esteem Assess Your Locus of Control Assess Your Negotiation Skills
  • FUNDAMENTALS OF NEGOTIATION 8 Pillars of Negotiation Wisdom1. Be conscious of the difference 5. Be an active listener between positions and 6. Be conscious of the interests importance of the2. Be creative relationship3. Be fair 7. Be aware of the BATNAs4. Be prepared to commit 8. Enhancing negotiations skillsThe Convergence of Corporate & Human Issues
  • NEGOTIATION MYTHBUSTERS You don’t have to be in businessman to be a good negotiator. Negotiating is NOT the same as fighting. Negotiating effectively is not a privilege of certain people. You don’t have to have the upper hand to negotiate effectively. Negotiating is not a time-wasting activity. Negotiating is not always the sum of clearly defined procedures or parameters. It is the sum and substance of human give and take.
  • NEGOTIATION & CONFLICT Ways of Handling ConflictCompetition CompromiseCollaboration Accommodation Avoidance What is your conflict handling style?
  • Conflict Handling Style #1THE TURTLE  Key Characteristic: DENIAL  Key Response: AVOID  Key Aim: TO WEATHER THE STORM  Favorite Statement: What conflict?
  • Conflict Handling Style #1THE TURTLE Refuses to even consider the fact that a conflict exists and would prefer that others do the same. Because of this, he refuses to dialogue and gather information to fix it. Key Strategies: Flee, avoid, deny, ignore, withdraw, delay, hope & pray. Leadership Qualities: Passive & timid, tends to spiritualize everything.
  • Conflict Handling Style #2THE SHARK  Key Characteristic: COMPETITION  Key Response: FORCE  Key Aim: TO WIN AT ALL COST  Favorite Statement: It’s my way or no way.
  • Conflict Handling Style #2THE SHARK He is impatient with dialogue and information gathering and would rather everyone just submits. Key Strategies: Compete, coerce, control, fight, outwit, outdo. Leadership Qualities: Authoritarian, seeks to maintain the status quo, feels threatened by any act of defiance and so will quash it all the time.
  • Conflict Handling Style #3 THETEDDY BEAR  Key Characteristic: GIVE IN  Key Response: ACCOMODATE  Key Aim: TO KEEP THE PEACE  Favorite Statement: Whatever you say.
  • Conflict Handling Style #3THE TEDDY BEAR Interested in other’s approval and would rather others insist on their way. Key Strategies: Agree, give in, appease, flatter Leadership Qualities: Ineffective in any group discussion because he doesn’t have a solid opinion, could be easily swayed either way
  • Conflict Handling Style #4 THEFOX  Key Characteristic: TOLERATE  Key Response: COMPROMISE  Key Aim: GIVE EACH ONE A MEASURE OF VICTORY  Favorite Statement: Meet me half way.
  • Conflict Handling Style #4THE FOX Tolerates the exchange of ideas but finds this uncomfortable so he would rather bargain quickly. Key Strategies: Reduce the expectations and Split the difference Leadership Qualities: Good negotiator, cautious but open, urges everyone to speak out but not too much
  • Conflict Handling Style #5THE OWL Key Characteristic: COOPERATION Key Response: DIALOGUE Key Aim: COLLABORATION BETWEEN ALL PARTIES Favorite Statement: My preference is…But what is yours?
  • Conflict Handling Style #5THE OWL Focuses heavily on information gathering and always prefers collaboration over compromise. Key Strategies: Gather information, dialogue openly, explore alternatives Leadership Qualities: Focuses on the process, open to change & growth
  • High Concern for Personal Goals SHARK: OWL: Win-Lose Win-Win Values goal over Values both goal relationships & relationship FOX: HighLowConcern Win some-Lose some ConcernFor Values both but is ForRelationships willing to sacrifice Relationships certain aspects of either under certain circumstances TURTLE: TEDDY BEAR: Lose-Lose Lose-Win Low concern for either Values relationships goal or relationship Over goal Low Concern for Personal Goals
  • WHICH “ANIMAL” ARE YOU ?Turtle SharkTeddy Bear FoxOwl
  • WHICH “ANIMAL” DO YOU HAVE IN YOUR NEGOTIATING TEAM?Turtle SharkTeddy Bear FoxOwl
  • COMPLEX NEGOTIATION ISSUES In your groups communicate on a complicated negotiation issues experienced Share your experience and the lessons learnt Present your group discussions to others
  • CONFIDENCE “Confidence, like art, never comes from having all the answers; it comes from being open to all the questions” -- Earl Gray Stevens
  • TEAM ROLES & RESPONSIBILITIES Lead Negotiator  Main Speaker  Only Member permitted to make  Signals  Movement Recorder  Records Key Arguments  Records Final Agreement Analyst  Monitors overall team strategy  Monitors other teams strategy  Identifies areas of Common Ground  Monitors Movement
  • TEAM CONTROL Discipline  Decide and Agree the strategy early on  Self  Team  Always keep to the agreed strategy Never interrupt the Lead Negotiator  Negotiate through the Leader Respect Silence - NEVER Interrupt  Support one another openly  Portray a United Front
  • PERSONAL CONTROL Always Be  Polite - It never reduces your argument  Firm - Removes Perceptions of Weakness  Calm - Facilitates Persuasion and Compromise Don’t ever take things personally Be aware of yourself and use your Emotional Intelligence
  • EMOTIONAL INTELLIGENCE Definition  The capacity for recognizing our own feelings and those of others, for motivating ourselves, and for managing emotions well in ourselves and in our relationships Uses in during negotiation  Effective and sustainable relationships  Should not be regarded as a ‘soft’ element of negotiation but as a critical negotiation skill  Maximize input from personnel by treating them well  Change of focus: Technical Skills to People Skills  Development of relationships
  • ARISTOTLE CHALLENGE“Anyone can be angry— that is easy. But to be angry with the right person, to the right degree, at the right time, for the right purpose, and in the right way — that is not easy.”
  • EMOTIONAL INTELLIGENCE Self OthersAware- Understanding Understandingness Yourself OthersActions Managing Managing Yourself Others
  • PERSUASION Persuasion is the art of finding the best available means influence the behavior or attitude of another person or group It may elicit a negative reaction from some people who would view it as being ‘pushy’ May end up in a win-lose situation where you win and they lose
  • PERSUASION IS LIKE MAKING A CANDLE Melt Mold Harden & Ignite!
  • MELTING RESISTANCETo Melt Resistance •Be honest •Find common ground •Use humor carefully •Appreciate what they are already doing •Give realistic pros and cons •Ask them to make your case Try to melt resistance before meetings
  • HANDLING OBJECTIONS To handle objections raised during the persuasion process:  Listen to what the objection is  Focus on the issue NOT individuals  Think and evaluate the situation  Act by either:  incorporating some of the contribution from the other person  Presenting a rationale for why you disagree
  • OBJECTIONS HANDLING PROCESS Listen to andUnderstand what the objection is Transition Handle and Overcome the Objection
  • PERSUASIVE BEHAVIOUR It is important that your behavior supports the argument that you are putting across:  Use a strong and enthusiastic voice  Speak fluently and without hesitation  Use open questions  Use silences  Have eye contact at least 50% of the time  Hold eye contact for at least 5 seconds at a time
  • PERSONAL CONTROL Always Be  Polite - It never reduces your argument  Firm - Removes Perceptions of Weakness  Calm - Facilitates Persuasion and Compromise Don’t ever take things personally!
  • DEVELOPING STATIMA TO PERSERVE Don’t talk too much Be firm Stake out issues that are Non-negotiable Don’t care too much Keep things moving Play to your advantage Stay Focused
  • ROLE PLAY – DEVELOPING STAMINA Each one to determine a product or service to sell. Obtain or sketch the product, or describe the product or service, or demonstrate. Form into teams of 2 persons –Seller & Prospect. Seller will attempt to sell the product or service; Prospect will reject the offer. Both will use as many of the different styles learnt.
  • PREPARING A STRONG BATNA Determining your BATNA (Best Alternative To a Negotiated Agreement)  Develop a list of actions you might take if no agreement is reached  Improve the promising ideas and convert them into practical options  Select the one option that seems best Factors to be considered  Which alternative is most affordable and feasible?  Which has the most impact in the shortest time?  What are the social costs (if any)? Consider alternatives available to the other side
  • NEGOTIATING OUT-SIDE THE BOX Break away from tradition Think “Outside the Box” Exercises
  • REASONS WHY SOME NEGOTIATION FAILS?Negotiations can be lost by:Monopolization of the conversationLack of knowledgeOver-stated conditionsLack of confidencePoor emotional intelligence
  • NEGOTIATION SUCCESS QUALITIESThe following are qualities that lead tosuccessful negotiations– Competitiveness– Knowledge– Self drive & determination– Self reliance– Persistence– Energy / stamina– Positive attitude
  • WHAT MAKES A GOOD NEGOTIATOR?Good Negotiators are individuals who developthemselves to be sensitive and allows: – Understanding of other people – Understanding of the organization – Ability to manage, lead and influence – Ability to use the most valuable resource that your organization has –its people – Generation of above average results in the long term
  • WORKSHOP – LET’S NEGOTIATE
  • TRADE DISPUTE When employers and employees or their trade unions are unable to resolve their differences, an industrial dispute or trade dispute may said to exist. Section 2 of the Industrial Relations Act, 1967 defines a ‘trade dispute’ as follows:“any dispute between an employer and his workmen which is connected with the employment or non- employment of the terms employment or conditions of work of any such workmen”
  • DISPUTE RESOLUTION The Industrial Relations Act 1967 recognizes a number of ways, which can be used to resolve an industrial dispute peacefully namely direct negotiation, conciliation and arbitration and it also identifies the techniques or agencies involved such as grievance procedures, Department of Industrial Relations and the Industrial Court. The preamble to the Act states:“An Act to provide for regulation of the relations between employers and workmen and heir trade unions and the prevention and settlement of any differences or disputes arising from their relationship and generally to deal with trade dispute and matters arising there from”
  • DISPUTE RESOLUTION The Act also makes the resolution of trade disputes as simple as possible. Section 30(5) of the Act specifies,“The Court shall act according to equity, good conscience and substantial merits of the case without regard to technicalities ad legal form”. Dato’ Gopal Sri Ram, JCA in Harris Solid State case, stated as follows:“Section 30(5) of the Act imposes the duty upon the Industrial Court to have regard to the substantive merits of the case rather than technicalities. It also requires the Industrial Court to decide a case in accordance with equity and good conscience. Parliament has imposed these solemn duties upon the Industrial Court in order to give effect to the policy of democratically elected government to dispense social justice to the nation’s workforce”.
  • DISPUTE RESOLUTION The Act also gives wide powers to the Court to settle a trade dispute. Section 30(6) states:“In making its award, the Court shall not be restricted to the specific relief claimed by the parties or to the demands made by the parties in the course of the dispute or in the reference to it under section 20(3) but may include in the award any matter or thing which it thinks necessary or expedient for the purpose of settling the trade dispute or the reference to it under section 20(3)”
  • DIRECT NEGOTIATION Direct negotiation is the ideal method for settling a dispute is where both employer and employee come together for discussion until a satisfactory compromise is reached. Voluntary negotiations are encouraged in the Industrial Relations Act.“Both sides must always leave their channels of communication open; this is one of the basic requirement of a good industrial relations that parties must adhere to” (Industrial Court Award – No.328 of 1986)“We sense a lack of communication between the company and the union but we do not know who is to blame for this. Like in marriage management and employees can only be productive and look after each other’s welfare if they have a good taking relationship” (Industrial Court Award – No 10 of 1988)
  • CONCILIATION If however, direct negotiation between the parties reaches a deadlock, any party to the trade dispute may report it to the Director General of Industrial Relations (DGIR) for conciliation. Alternatively, even if both parties do not report the dispute the DGIR may in public interest take the role of conciliator. It must be remembered that at the conciliation stage, the DGIR is a not empowered with any legal force and parties concerned are not legally bound to abide by his decisions. On average, 70 –80% of trade disputes are settled annually through conciliation.
  • CONCILIATION“Should they (employer & employee) encounter any industrial problem, they should seek the guidance and advice of the Industrial Relations Division of the Ministry of Labour and Manpower (known known as Ministry of Human Resources) to overcome them, for in any business undertaking, industrial peace is vital to progress and development” – Industrial Court Award – No.4 of 1982“The statutory function of the Director General of Industrial Relations is to conciliate between the parties and, if he fails to bring about a settlement, to recommend to the Minister which cases merit reference to the Industrial Court and which cases do not” - Industrial Court Award – No. 85 of 1987
  • COLLECTIVE BARGAINING IN ACTIONKinta Rubber Works Sdn Bhd in Ipoh & National Union of Employees in Companies Manufacturing Rubber Products were unable to agree on terms & conditions to be included in their 10th CA. The dispute was not settled at conciliation and was referred to Industrial Court. At this stage, items which were still not agreed upon included medical benefits, bonus, retirement benefits, retrenchment benefits, allowances, salary structure & salary adjustment. When the matter was called for hearing at the Court in March 2006, the parties informed the Court that they had reached an agreement on all of the disputed items & presented their agreement for a Consent Award.
  • ARBITRATION Where the Industrial Relations department conciliates but there is still a deadlock, the dispute can then be referred to the Industrial Court for arbitration This decision to refer to the Industrial Court may be made by the Minister of Human Resources at the joint request in writing of both parties or the Minister can himself refer the dispute to the Court The Minister, will exercise his discretionary powers to refer the dispute to the Industrial Court or otherwise. When a reference is made to Industrial Court, the court will adjudicate the dispute In arbitration, decisions of the Industrial Court are binding on both parties.
  • DISPUTE RESOLUTION PROCESSThis image cannot currently be display ed.
  • INDUSTRIAL ACTION - UNIONS Strike: withdrawal of labour Go Slow: work on rules Bans: refusing particular jobs or refusal to work with certain people Boycott: preventing others from doing business with the company Picket: preventing employees, customers & suppliers from entering the work site Industrial tribunal: union seeks assistance of an industrial tribunal eg. Industrial Relations Department
  • INDUSTRIAL ACTION In April 2007, 120 members of the National Union of Tobacco Workers picketed in front of JT International Tobacco Sdn Bhd in Shah Alam, Selangor over the company’s refusal to start negotiating a new collective agreement, the previous one having expired in January 2006. In October 2006, TM Bhd workers picketed in 3 locations, including Menara Telekom in Bangsar, Kuala Lumpur. They were protesting the outsourcing of certain departments, including the company’s call centres to another company. Employees concerned had been given option papers to join this company although the trade union was opposing the change until such time as the terms of transfer of the employees to the company were clarified.
  • CASE STUDYRahim is the General Secretary of N.U.C.W. and a clerk with Ajanta Sdn Bhd in KL. On the 30th July 2003, he was to clear all the vouchers for claims made by officers in the company. At 10.00 a.m. he came to know that his members in Alka Trading Co. in Kedah had gone strike over the suspension of a storekeeper. Rahim applied for leave to go to Kedah but the Manager, Abdul Rahman rejected his application as the claims had to be paid off by the 31st. However Rahim felt his responsibility was with his union members in Alka Trading Co. and left for Kedah. He returned to work on the 4th August 2003 having settled the strike but was given a suspension letter in which he was asked to show cause why his services should not be terminated for having stayed away from work without permission for more than 2 days.
  • CASE STUDYNathan called the meeting to silence. ‘Gentlemen’, he said, “it’s time for action. We have been patient but management is only taking advantage of us. Our union representatives have met with the company 5 times already and there’s been almost no progress towards signing a CA. I propose we start to picket every day at lunch & for an hour after work until the management come to their senses & agree to our demands.”Kamil stood up & said, “ I second that motion. After all, we are only asking for 1 more day annual holiday & increase in our basic salary of RM 50.00 per month. That’s peanuts. Workers at Golden Corporation get far more than we do.” One by one the workers present stated agreement. They were in the mood to call a strike but leaders from the national union advised them to be patient.
  • INDUSTRIAL ACTION - MANAGEMENT Lockout: employees not to enter workplace Injunction: civil court order to stop union from taking industrial action Strike breakers: company uses non-union labour to fill jobs of striking union members Employer associations: company uses employer’s association to exert influence on union Industrial tribunal: company seeks assistance of an industrial tribunal eg. Industrial Relations Department
  • LOSSES OF INDUSTRIAL ACTION The union:  loss of wages  loss of goodwill with management  loss of public image  loss of security of a united employee front The management:  loss of profits or market position  loss of status with other management, board of directors or shareholders  loss of public image
  • HARMONIOUS INDUSTRIAL RELATIONS (IR) IR, is essentially ‘human relations’ and understanding the ‘humane’ and ‘human’ aspect of management is the first step in creating a harmonious IR The employers should adopt participative management or participative decision-making as the authoritarian or directive management styles is not suitable in many organizations in the current business environment. Handling of employee grievance with an effective grievance handling machinery is must to resolve disputes at the supervisory level. A grievance is like a small fire, the earlier you put it out is better. Effective HRM strategies in terms of employee selection, induction, training and development, performance management and appraisal, compensation management and employee relations are essential in creating a cooperative and harmonious IR.
  • CONCLUSIONYou can foul up on almost anything, you will get another chance. But, if you screw up even a little bit on ‘people management’ (industrial relations) you are gone. That’s it. Top performer or not.Productivity Through People – The Missing Link by V.T. Shanbhag (cited in Dcruz, 1999)
  • PROGRAM OBJECTIVES Understand the framework of industrial relations & collective bargaining in Malaysia; Plan strategies & tactics for collective bargaining & negotiation; Handle stressful negotiation at the bargaining table with a positive mindset; & Develop the skills of an effective negotiator.
  • DR. BALAKRISHNAN MUNIAPAN Email: bala.hrm@gmail.comhttp://www.freewebs.com/balakrishnanmuniapan/