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Collective bargaining


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Collective bargaining

  2. 2. DEVELOPING A BARGAINING RELATIONSHIPSTEPS 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. 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. 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. 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. 6. PROCESS OF NEGOTIATIONDURING BARGAININGThere are two stages in collective bargaining: The negotiation stage The stage of contract administration
  7. 7. A) NEGOTIATION STAGE At the negotiation stage, certain proposalsare put forward which explore the possibilities oftheir acceptance and pave the way to mutuallyagreed terms after careful deliberation andconsideration.The negotiation stage involves three steps:• Preparation for negotiation Negotiation may commence at theinstance of either party-of either labour or ofmanagement.
  8. 8. • Negotiation Technique or Procedure The negotiations may beundertaken by representative of eachparty or by a committee or by line orstaff personnel.
  9. 9. The following procedure should beadopted in negotiationFor 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. 10. f) Both parties should strive to maintain an objective approach to a problem orgrievance.g) Help to define the problem and suggest asolution.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. 11. j) Define each issue clearly and unambiguously, and discuss it in the light of all the availablefacts.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. 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. 13. For the managementa) The mangement must make sure that the labour leaders negotiate with the representatives of the workers.b) Lawyers should not be used as negotiatorsc) Contacts should not be limit with the union
  14. 14. • Follow –up Action The agreement should be printed andcirculated among all the employees so thatthey know exactly what has been agreedupon between the management and theirrepresentatives.B) Contract Administration When the process of negotiation hasbeen completed, it is time to sign thecontract, the terms of which must besincerely observed by both the parties.
  15. 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. 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. 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. 18. In 2009-10, most of the well known workersstruggles were on the issue of formation or forrecognition of the trade union for collectivebargaining,. Some of the examples are:Hyundai Workers Struggle for Recognition of theUnion,Nokia Workers Struggle for Wage Hike and AgainstVictimization,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 andSunbeam Workers Struggle for Democratisation ofthe union.
  19. 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. 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 centres 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. 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. 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. 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. 24. COLLECTIVE BARGAINING AGREEMENTS AT DIFFERENT LEVELSIn India collective bargaining agreement have been conducted at three levelAt plant levelIndustry levelNational level1) 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. 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. 26.  At industry level : The best example of an industry level agreement is offered by textile industry of Bombay and AhmadabadThe agreement between the Ahmadabad millowners association and theAhmadabad textile labour association ,which were signed on 27th June 1955Laid down the procedure to be followed for the grant of bonus and voluntarysettlement 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. 27. At National levelThe agreement at the national level are generally bipartiteagreement and are finalized at conferences of labour andmanagement convened by government of IndiaThe Delhi agreement of 7th February 1951 and the bonusagreement for plantation workers of January 1956 are exampleof such bipartite agreementDELHI AGREEMENT WAS CONCLUDED AT A CONFERENCE OFTHE REPRESENTATIVE OF LABOUR AND MANAGEMENT ANDRELEATED TO RATIONALISATION AND ALLIED MATTERS . IT WASAGREED AT THIS CONFERENCE THAT :
  28. 28.  Standardized work load No break in their service Gratuities Retrenchment Efficient use of labour Incentives in the form of higher wages