2. DEVELOPING A BARGAINING
RELATIONSHIP
STEPS IN BARGAINING RELATIONSHIP:
RECOGNITION OF THE BARGAINING AGENTS:
organization in which there is single union , that union
is generally granted recognition to represent the
workers
In case if there is more than one union certain criteria is
such as :
• Selection of the representatives union by secret ballot
• Selection through verification of members by
government agency
• Bargaining with a joint committee of all major unions
3. • Bargaining with negotiation
committee in which different union is
represented
• Bargaining with a negotiation
committee which consist of elected
representatives of every department.
4. • LEVEL OF BARGAINING:
It is done at all the levels of the
enterprise & at all the levels of entire
industry
1. At the national level
2. At the level of industry at particular
region(i.e. regional industrial level).
5. • SCOPE & COVERAGE OF COLLECTIVE
BARGAINING:
Though in many organization
bargaining is struck only on specific
issues like wage increase, bonus,
seniority, promotion, yet it is
considered as advantageous , both
for management & the union, to
cover as many issues of interest to
both parties as possible
6. PROCESS OF NEGOTIATION
DURING BARGAINING
There are two stages in collective bargaining:
The negotiation stage
The stage of contract administration
7. A) NEGOTIATION STAGE
At the negotiation stage, certain proposals
are put forward which explore the possibilities of
their acceptance and pave the way to mutually
agreed terms after careful deliberation and
consideration.
The negotiation stage involves three steps:
• Preparation for negotiation
Negotiation may commence at the
instance of either party-of either labour or of
management.
8. • Negotiation Technique or Procedure
The negotiations may be
undertaken by representative of each
party or by a committee or by line or
staff personnel.
9. The following procedure should be
adopted in negotiation
For Union and Management:
a) Be friendly in negotiation.
b) Be willing to listen.
c) Give everyone an opportunity to state his
position and point of view.
d) Know something about the personal history
of the other parties representatives.
e) Always bear in mind the fact that you have
to do what is right and fair.
10. f) Both parties should strive to maintain an
objective approach to a problem or
grievance.
g) Help to define the problem and suggest a
solution.
i) If facts disclose that there is a need for doing
more than just solving the immediate
problem; go as far as justified in the
circumstances.
11. j) Define each issue clearly and unambiguously,
and discuss it in the light of all the available
facts.
k) Avoid the insertion of specific regulations or
details in the contract to ensure greater
flexibility.
l) Search for the correct solution at all times.
m) Keep the membership of the conference as
small
as possible.
n) Avoid sharp practices.
12. o) The length of a session should be
determined by the generates among
the members at the conference table.
p) Committee of employees present during
the negotiation is advantageous and
practical if the bargaining unit is a
single establishment.
q) The terms agreed should be written and the
parties should sign the document.
s) Party should respect the rights of the public.
13. For the management
a) The mangement must make sure that the
labour leaders negotiate with the
representatives of the workers.
b) Lawyers should not be used as negotiators
c) Contacts should not be limit with the union
14. • Follow –up Action
The agreement should be printed and
circulated among all the employees so that
they know exactly what has been agreed
upon between the management and their
representatives.
B) Contract Administration
When the process of negotiation has
been completed, it is time to sign the
contract, the terms of which must be
sincerely observed by both the parties.
15. Collective Bargaining , In India
• In India ,collective bargaining was
first introduced in 1952
• India has ratified 39 International
Labour Organisation (ILO) conventions
of which 37 are in force. Of the ILO’s
eight fundamental conventions, India
has ratified four – Forced Labour
1930, Abolition of Forced Labour
1957, Equal Remuneration 1951, and
Discrimination (employment and
occupation) 1958.
16. • According the data of Government of
India on strikes and lockouts (Indian
Labour Statistics 2010), causal factor
of 34.8 percent cases of industrial
disputes is recorded as indiscipline.
22 percent cases of industrial
disputes are around demands for
wages and allowances (in many cases
demanding only minimum wages
fixed by the government).
• Chart
17. • Trade Union Act of India provides right to
association only with a limited scope ad
limited coverage. The Trade Union Act 1926
was amended in 2001 and after the
amendment it became more difficult to form
the trade unions.
• In the Act of 1926, only seven members were
required to register a trade union, but after
amendment at least 10% or 100, whichever is
less, subject to a minimum of 7 workmen
engaged or employed in the establishment are
required to be the members of the union
before its registration.
• Collective bargaining is limited with in the
scope provided in Industrial Disputes Act 1947.
18. In 2009-10, most of the well known workers
struggles were on the issue of formation or for
recognition of the trade union for collective
bargaining,. Some of the examples are:
Hyundai Workers Struggle for Recognition of the
Union,
Nokia Workers Struggle for Wage Hike and Against
Victimization,
MRF Workers Struggle for Recognition of Union,
Pricol Workers Struggle for Recognition of Union,
Graziano Workers struggle for Unionization,
The Case of Trade Union Repression in Nestle,
Rico Auto Workers Struggle for Unionization and
Sunbeam Workers Struggle for Democratisation of
the union.
19. Police repression against Hyundai
workers in Tamil nadu
• On June 8, 2010, police entered the Hyundai plant at the behest of the
South Korean company’s management
• The workers of Hyundai have been fighting militantly for the recognition of
their union, the Hyundai Motor India Employees Union (HMEIU). In
addition, they have been fighting for the reinstatement of 67 workers fired
as the result of an earlier strike over the same issue.
• Fearing the action would spread, the South Korean-based automaker
quickly moved to shut down both of the assembly plants it operates in
Sriperumbudur. According to Hyundai management, the shutdown was
costing it the production of 1,200 cars, valued at $14 million, per day.
• Declaring the workers’ action illegal, Hyundai turned to the DMK
government of Tamil Nadu for help. With the prompt police repression,
the Tamilnadu government has sought to reassure Hyundai, the state’s
largest foreign investor,
• With the state government’s backing, Hyundai resumed production on
June 9, using apprentices and other non-permanent staff.
20. Recent trends of collective
bargaining
The bargaining strategy of Indian trade union
has undergone a gradual change. The
discussion on the bargaining table no more
centre's rounds “ traditional issues” like wages
, employment condition etc. But on “ non-
traditional issues” like additional and better
welfare facilities. It is because:
• Economic needs are satisfied
• With the entry of MNCs in India , standard has
improved in workforce.
• The employer are willing to fulfill demands.
21. A few common items that have
become part and parcel of collective
bargaining agenda of industries are:
• House rent allowance(H.R.A.)
On the recommendation of the fourth
pay commission , all the government
employees are getting fixed HRA on
the basis of category of city where
they reside
22. • Leave travel concession (L.T.C.)
looking to the motivational impetus of
this practice it too has been adopted in
most private undertakings . Details of
this benefits are decided at the collective
bargaining table.
• Educational allowance
there is a special allowance given for the
children of the employee. This allowance
covers the cost of tution fee , books,
uniforms etc. if these are not provided
employees can bargain over it.
23. • New Wave of Labour Movement
for Unionisation
A new wave of workers struggle for
unionization .
The workers are realizing by their own
experiences that they can not change
their fate without organizing
themselves in a trade union.
In many cases the workers do not get
even the legal benefits like minimum
wages, premium rate of overtime and
holidays and casual leaves.
24. COLLECTIVE BARGAINING AGREEMENTS
AT DIFFERENT LEVELS
In India collective bargaining agreement have been conducted at
three level
At plant level
Industry level
National level
1) At plant level : A collective agreement at plant is
reached only for the plant for which it has been drafted ,and
its scope and extent are limited only to that particular unit or
undertaking .it contains provision for a quick and easy
solution
25. Agreement between Tata iron and steel company
The company recognizes the Tata workers union as the sole
bargaining agent of the employees at Jamshedpur
The union recognized the right of the company to introduce
new improved equipment and methods of manufacture
The union recognized the right of the company to hire ,transfer
, promote or discipline of employee
The company assures the union that there shall be no
retrenchment of existing employees
The company agrees that the amount dearness allowance will
be included in the wages of employees at time of the
calculation of gratuity to be paid to them
26. At industry level :
The best example of an industry level agreement is offered by
textile industry of Bombay and Ahmadabad
The agreement between the Ahmadabad millowners association
and the
Ahmadabad textile labour association ,which were signed on 27th
June 1955
Laid down the procedure to be followed for the grant of bonus and
voluntary
settlement of industrial disputes
It was agreed between the parties that the bonus would be
payable only out of an “available surplus or profit”
If there was any difference of opinion between the two
association
The second agreement provided that all future industrial
dispute between the member of the two association would be
settle by mutual negotiation
When ever there was an industrial dispute which had not been
settle by mutual would select an umpire out of the panel or
from among outsiders
27. At National level
The agreement at the national level are generally bipartite
agreement and are finalized at conferences of labour and
management convened by government of India
The Delhi agreement of 7th February 1951 and the bonus
agreement for plantation workers of January 1956 are example
of such bipartite agreement
DELHI AGREEMENT WAS CONCLUDED AT A CONFERENCE OF
THE REPRESENTATIVE OF LABOUR AND MANAGEMENT AND
RELEATED TO RATIONALISATION AND ALLIED MATTERS . IT WAS
AGREED AT THIS CONFERENCE THAT :
28. Standardized work load
No break in their service
Gratuities
Retrenchment
Efficient use of labour
Incentives in the form of higher wages
