Collective bargaining is definedas the negotiation between anemployer and a union todetermine the wages, hoursand other terms of employmentfor a group of employees withcommon duties and interestsand similar pay. The collectivebargaining agreement will beactive for a set period of time.
Negotiations between an individual employeeand their employer that lack the strength ofsupport from a collective bargaining solutionand may give the employer the upper hand inthe negotiation process
R.K. Brewery Limited produces four varietiesof beer as well as mineral water. The company entered a collective agreementwith the trade union in 2005 which would bein force for five years up to the end of 2010. There was a collective agreement with afixed salary for a group of employeesperforming the same job. Mr.Vinod Michael joined R.K.Brewery as ChiefHR Manager in 2007. He analyzed the agreement and felt that toenhance the productivity beyond the currentlevel , performance based salaries with abase line should be adopted.
The CEO accepted the idea reluctantly as thetrade union may create problems. Mr. Vinod implemented the scheme in may2008. The scheme worked beyond expectation, asthe productivity increased by 30% in additionto improvement in quality and deliveryschedule. The salaries of 80% employeesincreased by 20% to 30% and surprisingly themembership of trade union declined to around45% by 2009.
In, the view of expiry of collectiveagreement, on 31st December 2010 trade unionrequested management to arrange a collectivebargaining meeting as they where worried forsalary differential causing social problem amongemployees and their family members. Mr.Vinod discussed the issue with the CEO andsenior level managers in a meeting. There weremixed arguments and responses in the meeting. Finally, Mr.Vinod took a decision of implementingbargaining or negotiations with individualemployees regarding salaries,benefits,workingconditions,and all other issues of HR.
Vinod analyzed the collective agreement with afixed salary for a group of employees performingthe same job . He felt that it would be difficult toenhance the productivity beyond the currentlevel, though the competition demands increase inproductivity at least by 25%,in addition toimprovement in a quality and delivery scheduled. Vinod also felt that there is no need for collectivebargaining meeting as well as collectiveagreement as the salaries and benefits are basedon individuals performance of employees.
Monetary motivation for any worker is bigthing, if its in his favor. But here salaries ofonly 80% employees was increased by 20% to30% and surprisingly the membership of tradeunion declined to around 45% by 2009. Thus, Trade Union were worried aboutincreasing in salary of remaining 20%employees and majority of his members. Also,it caused social problems among theemployees and their family members. Theyrequested the management to make anarrangement for collective bargaining meetingand arrive at new agreement during thesecond week of January 2009,in the view ofexpiry of collective agreement by 31stDecember 2010.
Any discontent or dissatisfaction whetherexpressed or not and whether valid or notarising out of anything connected withthe company / organization that anemployee thinks / believes or even“feels” is unfair or unjust.
Type of Grievances Common causes(The worker feels that)Wages:1. 1. Demand for individual wage He is not getting what he isworth. Getsadjustment less than other people workrequiring the same skill.2.Complaints about job His job is worth more than itpays. Should beclassification reclassified, deserves to beupgraded.3. Complaints about The method of figuring his pay isso complicatedincentive system that he doesn’t know what his ratereally is.4. Miscellaneous Mistakes are made in calculatingpay.
Mr. Suresh is the CEO of On-Line Information Systems Limited. Mrs. LalithaGoenkar wife of one of the Senior level Manager Mr. Akhil Goenkar, rushed to the chambers of Mr. Suresh and complained to him that theChief HR Manager has been paying deaf ear to her complaint since the lastsix months saying the company would redress the grievances ofemployees, but not employees’ family members. Mr.Suresh was shocked after reading the grievance lodged by Mrs. Lalitha.The essence of the grievance is as follows : “Mr. Anil Goenkar has not beenpaying attention to family matters ; he is not not caring for the childrenand wife since March 2007. Mr. Anil informed his wife over a dispute at thedining table on 22nd May 2007 that the company has been paying datingallowance for the wellbeing of the employees and as such, he has beenspending time in various recreation places with lady colleagues of thecompany. Hence, his interest in family members as well as family issueshas taken a new turn and they may take a significant shift in the days tocome. Mrs. Lalitha met the Chief HR Manager on the following day and lodgedher grievance. Mr. Suresh called a meeting of employees of HR department and SeniorManagers on 30th September 2007, to decide on the policy issues of datingallowances, as well as redressing the grievances of employees’familymembers.
Yes the company should redress thegrievances lodged by family members ofemployees in view of paradigm shifts in HRpractices in following ways:- Under going Counseling sessions where familymembers can interact with the HR Manageras per the issue Make necessary changes in the policy as in ifrequired Discussion regarding work-life balance
The issue of dating allowance which iscontrary to the culture of the land can besettled down only if such allowance policy isremoved from the company’s policy list as inthis policy creates not onlymisunderstandings between the employee ofthe company and his/her familymembers(specially if he/she is married and isa parent) but also directly or indirectlyincrease stress, tension and conflicts andhence affects the efficiency of thatparticular employee.