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Submitted to:
Ms. ToobaShahid
Submitted by:
Nisar Ahmad 22
ShoaibSattar 13
Muhammad Sohaib 06
YousafArslan 35
DanialRafiq 26
AzimZafar 04
Institute of Banking & Finance
BAHAUDDIN ZAKARIYA UNIVERSITY MULTAN
Report on Union Negotiation Management
2
Tableof Contents
PAKISTAN RAILWAY........................................................................................................................... 4
HISTORY................................................................................................................................................ 4
Industrial relation of Pakistan Railway ...................................................................................................4
Evolution of Union in Pakistan Railway.................................................................................................4
Case-1 ..................................................................................................................................................... 5
PAKISTAN RAILWAY SAMPARS UNION......................................................................................... 5
Analysis ............................................................................................................................................... 5
Negotiation Points of union members.....................................................................................................5
Negotiation points of management.........................................................................................................5
Recommendation..................................................................................................................................5
Case-2 ..................................................................................................................................................... 6
Railway worker protest against downsizing ............................................................................................ 6
HISTORY............................................................................................................................................ 6
Negotiation of both parties .................................................................................................................... 6
Recommendation..................................................................................................................................8
Case -3..................................................................................................................................................... 8
PAKISTAN INQLABI UNION............................................................................................................. 8
Inqlabi union originated in 1974 from following unions:.....................................................................8
1-Railway worker union (open line) ....................................................................................................8
2-Railway worker union (work shop) ..................................................................................................8
Analysis ............................................................................................................................................... 9
Negotiation points of union members .....................................................................................................9
Negotiation points of management.........................................................................................................9
Recommendations.................................................................................................................................9
Case -4..................................................................................................................................................... 9
Railway Worker’s Union (Workshops)...................................................................................................9
Issue:................................................................................................................................................. 10
Analysis ............................................................................................................................................. 11
Main Point of Union Negotiation: ........................................................................................................ 11
Main Point of Management Negotiation ............................................................................................... 11
Recommendation:............................................................................................................................... 11
Case -5................................................................................................................................................... 11
Participation of Railway Employee in Management (PREM)................................................................. 11
Reason............................................................................................................................................... 12
Union Negotiation Point:..................................................................................................................... 12
3
Management Negotiation Point:........................................................................................................... 12
Agreement:......................................................................................................................................... 12
Covering or pending issues:................................................................................................................. 12
Recommendation. ............................................................................................................................... 13
CASE-6................................................................................................................................................. 13
Train driver welfare association ........................................................................................................... 13
Issue of union employees .................................................................................................................... 13
Union points....................................................................................................................................... 14
Recommendation................................................................................................................................ 14
CRITICAL QUESTION ......................................................................................................................... 14
(A)PART............................................................................................................................................... 14
Is collective bargaining compatible with economic stability? ................................................................. 14
Impact of CBA in Stable Economy ...................................................................................................... 16
(B)PART............................................................................................................................................... 17
May wages and prices be pushed up, ofnecessity, so rapidly as to result in instability in output and
employment?................................................................................................................................. 17
If wages and cost of labor increase it also increase the cost of product and service that organization
provides. Wages and prices has positive relationship to each other when cost of labor increase price also
increase but when price increase the organization can loss its competitive advantage due to increase price
and loss its position in the market. PIA is the best example of it as compare to another airline like Blue
airline. PIA increases their prices due to cost of labor increase because PIA is not run its operation
successfully and going to lose and when they increase their prices they cannot meet with their
competitors in the market and lose his competitive edge as a result instability. .................................... 17
Theory................................................................................................................................................... 17
Marxist Theory................................................................................................................................... 17
This theory basically focus to upper management so,it is apply on Pakistan railway
because there is a huge corruption in management and lower employees faces the result of
corruption in shape of downsizing, unnecessary delay in wages ,not promote BPS. ........... 17
4
PAKISTAN RAILWAY
HISTORY
Pakistan railway is the national state owned railway group of Pakistan whose headquarter is in
Lahore and was founded in 1861. In 1974, Pakistan Western Railways was renamed Pakistan
Railways .It owns 4,800 miles (7,791 km) of track across Pakistan from Torkham to Karachi and
operates freight and passenger service. Ministry of railway has launched many projects for
development, renovation and up gradation of locomotives, infrastructure and passenger services
china- Pakistan economic corridor is the leading example of these projects which lasts for RS.886.68
billion with duration of 2025. Muhammad Aftab Akbar is chief executive of Pakistan railway, and
more than 73,276 has employed in Pakistan railway.
Industrial relation of Pakistan Railway
Pakistan railway is a state owned sector and there is still a great influence of political interference so,
management is work under pressure of government. By legal allow the employees to join union,
there is aggressive relationship between union and management because management focus their on
motive and not proper treated employees well. Movements of union depend on government
behaviors some government support union movements and some government try to curb union
movements like in the ere of BHUTTO union were supported by government and in the era of
dictatorship try to restrict union movement so the relationship of union and management time to time
changed.
Evolution of Union in Pakistan Railway
Atthe time ofsepration 1947, there was only two union working in Pakistan Railway, that’s name is
following,
1-Railway Worker Union
2-United Union
In 1948, Railway Worker Union divided into two parts and they made their own union,
1-Railway Worker Union (open lines)
2-Railway Worker Union (work shop)
5
Case-1
PAKISTAN RAILWAY SAMPARS UNION
Station masters hasseparate from United Unionand made SAMPARSUNION 1984,it works for
station masters and other workersalso, after giving notice of strike 15 Jan 2016 SAMPARS UNION
call for strike and demand for improvement in pay structure, and rehire of contract employees,
management has agreed to rehire of contract employees, but for pay scale take time from union in
order to negotiate with upper management, after assurance of authority union call –off for strike and
start operation. After resuming the service railway police had arrested union leader in QUETTA and
then union again stoped the operation and call for strike,chief Executive Railway Javed Anwar and
Senior General Manager contacted the Sampars Union officials and assured the release of Union
leader Irfan ,after assurance union start to run operation. Government has not interested to resolve
the issue and they just passed their tenure, and then union register their petition in high-court after
proceeding court award decision in favoure of station masters and after that bill was passed by
establishment division now it is pending in finance division. On hearing of 14 November 2018, high
–court summoned sectary finance division.
Analysis
Negotiation Points of union members
1-demand for improvement in pay structure.
2-re-hire of contract employees.
3-increase in allowances at 55% which already given to railway guard.
Negotiation points of management
1-accept demand of rehire contract employees.
2-Pay- scale promotion will be accepted after legal procedure.
3-successfully resume the railway operation.
4-difficult for us to increase in allowances because its running through out, if we accepted your
demand than other employee will also demand for increase in allowances.
Recommendation
Being a part of railway Pakistan management I would not favoure the decision to arrest the union
leader mr.irfan, I was going to solve the problem through proper channel of negotiation with union as
6
well as upper management. And I would prefer to to more focus on systematic pay structure which
help to minimize discrimination amoung employees and which help to award pay scale according to
their job description as well as experience ,and I would apply to TWO-TIER PAY system which
increase the basic-pay scale on the seniority base of employees .
Case-2
Railway worker protest against downsizing
HISTORY
The case was held in January 15, 2011
THE Railway Workers’ Union (Open Line) and Railway Workers Union (Workshops) on Friday
held a protest demonstration against the proposal of firing 20,000 railway employees.
Central leaders of the unions, including Fazal Wahid, AshiqChaudhry, RaoNaseem, ManzoorRazi,
Akbar Ali, Anwar Gujjar and ShaukatChaudhry, led the protest held here at the railway workshops.
The protesters were holding banners and placards inscribed with slogans against the anti-worker
attitude and statements of the railway high-ups. They chanted slogans against General Manager
Operations AshfaqKhatak for saying that 20,000 employees would be sacked.
Negotiation of both parties
The railway workers leaders said that if the administration tried to implement any such decision, the
fired employees would not remain silent and they would break all hell loose on the PR to force the
seizure of the railway operations. They said the debt faced by PR had got nothing to do with its
employee count but was actually an outcome of the extremely corrupt management and
administrative officials who were appointed for hundreds of thousands in Pakistan Railways
Advisory and Consultancy (PRACS).
The protestors said the remedy for the PR problems was not sacking scores of people from the lower
ranks but uprooting the network of corruption at the higher level which was causing irreparable
damage. They warned the PR against sacking workers at such massive scale, saying that it would
meet strong opposition and the employees would go to any extent to save the railway.
On the other hand, addressing a press conference here at Pakistan Railway Employees Prem Union
office, its Senior Vice-President Sheikh Muhammad Anwar warned the PR authorities that the
workers would suspend every operation and halt all the trains across the country if the government
tried to sack 20,000 workers and curtail further 39 so-called uneconomical passenger trains.
7
Flanked by union leaders, including Saghir Ahmed Cheema, Khalid MehmoodCh, Qazi Abdul
Wadood, Iftikhar Ali Khan, MehmoodulAhad, Qazi Abdul Wadood, MianAmjadNadeem, Abdul
Jabbar, Muhammad Tufail, MansoorSafri and Malik Jamil, Sheikh Anwar said the PR General
Manager AshfaqKhattak was hatching the conspiracy against workers as he wanted to curtail trains
up to 50 percent and then start downsizing of workers taking plea that extra staffing was a burden on
the department so their number should also be cut by 50 percent. He said the conspiracy would not
work as the PR laborers would not let the ministry do so. He asked that by curtailing the passenger
trains whether the PR deficit would come down or it would increase.
Mr Anwar said it was the need of the hour to stop corruption in the PR, adding that if the government
wanted to decrease the deficit, it should taken stern action against corrupt bureaucrats who were
plundering the invaluable assets of the PR. Talking about the Shalimar Express, he said the recently
suspended express was running with 16 coaches carrying over 1,400 passengers from Lahore to
Karachi giving profit in million of rupees to the PR on a daily basis. He said the railway
administration had also closed down other profitable trains like Taizrao Express and Shah Rukn-e-
Alam Express, which were running between Karachi-Rawalpindi and Karachi-Multan routes
respectively. He said instead of increasing numbers of trains and making them profit-oriented, the
corrupt bureaucrats were hatching conspiracies to reduce the number of trains to hide their own
corruption. He said that after the closure of some trains, no bogies were added to the existing
passenger trains as currently the trains were running with only eight to 10 bogies whereas a
passenger train should have at least 18 to 20 bogies. The union leader said that after the floods, road
infrastructure had been badly affected and needed billions of rupees to repair it while PR needed only
less amount to stand on its feet. He said operational expenditures could be curtailed up to 35 percent
easily that would lower the sufferings of people who were already facing severe communication
problem after floods.
Mr Anwar said the government should get rid of corrupt bureaucrats, curtail unnecessary
expenditures instead of reducing number of trains to meet the deficit. He said the developed
countries of the world had enhance further network and facilities of their railways despite having up-
to-the-mark road infrastructure while in Pakistan the railway operations were being minimized.
He said that Railway Ministry’s step to close 39 more trains would deprive the already inflation-hit
people of their sole means of transportation. He said PR employees would not only resist the closure
of trains but would also try to stop PR going into the hands of profit-crazy private companies like the
PRACS.
8
Meanwhile, the spokesperson for the PR has clarified that the department did not intend to sack its
employees at a massive scale and there was no such move under consideration.
Recommendation
My recommendation for the downsizing of the employee is that
1-Focus on to stop corruption at the executive level of the railway
2-Don’t terminate the hire employee. But stop hiring new employee
3-Give the employee meal allowance as a benefit.
4-Give their employee the quota of employee son.
Case -3
PAKISTAN INQLABI UNION
Inqlabi union originated in 1974 from following unions:
1-Railway worker union (open line)
2-Railway worker union (work shop)
ManzoorAhhmedRazi is the president of Pakistan railway worker of Inqlab union.They have to
make improvement of the railway service in Pakistan as well as the lot of the workers associated
with Pakistan Railways. They are also give profitability of railways sector like new trains are
introduced Karachi and Lahore city whose 40000 people to avail the jobs.
Karachi, Feb 28,2012: Railway workers unions under the umbrella of the Rail BachaoIttehad staged
a protest demonstration on Tuesday which may concern employees are going to strike because the
train system are to be going on privatized , cargo system and also to stop the pension of retirement
employees for continuously eight month.
Railway Workers Union leader Manzoor Ahmed Razi are not accept the privatization system while
if any other private firm desired to invest the railway then it should bring to coaches and staffs
training and make better working condition and also give immediately pension of retirement
employees.
The other representatives of the Abdul Majeed leader ofMehnetkashMazdoor Union who was also
going to strike in superintendent office to be not making system privatize like cargo system.
9
Then both of leaders are not happy to priviitize system beacause they are enjoy the monopoly.
Analysis
Negotiation points of union members
1-union protest their rights and said that Pakistan railway should not be privatised because of job
security and firing risk.
2-union said that management stop their pensions at last eight months
3-Give the staff training and make better working conditions.
Negotiation points of management
1-Pakistan railway has huge burden of lossess .
2-Pakistan railway has not proper leadership.
3-Pakistan railway has a big problem of corruption.
4-due to the pressure of IMF.
The inevitable privatisation can only be delayed, but not avoided. The attempts to privatise Railways
always end up in the Superior Courts where Railways employees argue for their rights to a public
sector employment.
Recommendations
Pakistan railway is a state owned organization.As a part of management I would focused on
leadership skills and to remove corruption in order to overcome from deficit budget.another big issue
of Pakistan railway political interference and I would like to work on a long term development plane
for the Pakistan railway .I would reffer to focus on these issues rather than to privatised the Pakistan
railway.
Case -4(Successful Story)
Railway Worker’s Union (Workshops)
Railway Worker’s Union (Workshops) is the oldest & largest industry-wide trade union of Pakistan
founded in 1948. It represents all workers which are employed in railway workshops all over in
10
Pakistan. It is the affiliate of International Transport Workers’ Federation London, which is the
International Federation, representing more than 148 countries in different categories of transport. It
is also an affiliate of All Pakistan Trade Union Federation and registered in NIRC. Head of the
Union is Raja Zahid Khan, President of the union is RanaMasoom Ali and the General Secretary of
the union is Syed MahmoodUl Hassan.
Issue:
Trains from Lahore were delayed for up to eight hours on Tuesday 15 Feb 2011 as Pakistan
Railways (PR) workers do a protest against the non-payment of their salaries and they refused to
let locomotives out of their shed.Train services resumed later after the workers were paid and they
stopped their protest, but not before thousands of passengers spent hours stranded at Lahore
Railway Station. Many had been planning journeys home for the Eid-e-Milad-un-Nabi holiday.
The protest lasted around eight hours.
On Tuesday, railway shed workers surrounded the Mughalpura locomotives shed, which housed 32
engines. As a result, the Karakoram Express, AllamaIqbal Express, Tez Gam Express, Rail Car to
Rawalpindi, Farid Express, Night Coach to Karachi and others were unable to depart Lahore.
The head of the Railways Workers Union (RWU) told the protest was related to the upcoming Eid-
e-Milad holiday, we were scheduled to get our salaries today on Tuesday. RWU president Sarfaraz
Khan said that we are religious people and we need money for the holiday. We cannot celebrate
without our salaries. SarfarazKhan said the union was not insensitive to the needs of passengers
headed home for the holiday, but that they had little choice. Our members are poor people. They
don’t have money to feed their families. If the distribution of salaries had started on the 12th there
would not be this problem. There are some PR officials who are always trying to create
disturbances in railway operations.
A Pakistan Railway management said that the due date for the salaries of these employees was
between the 15th and 22nd of every month. He said if workers do not get their salaries today on
Tuesday, they will get them on Thursday after the holiday its routine practice.
Pakistan Railway officials tried to resolve the protest by offering to pay half the salaries of the
shed employees. Workers said they had been offered Rs6 million, but the total salaries came to
Rs12 million.They refused to stop the protest. After further negotiations, PR divisional
superintendent Abdul Jabbar had the workers paid their full salaries. The locomotives were
11
allowed out of the shed and the delayed trains set off, but not before the holidays of thousands of
passengers had been ruined.
It’s a success story of negotiation that management agrees with Union and pays all the salaries to
workers. After that protest closed and trains run its operations
Analysis
Main Point of Union Negotiation:
1-Demand to payment of their salaries.
2-Payment of salaries on same day before Eid Miladun Nabi event.
Main Point of Management Negotiation:
1-Salaries will be pay on next working days.
2-Offering half amount of total salaries.
Recommendation:
I would recommend that management should improve the way of salary distribution process and
salaries are given to the workers at the time to avoid these types of issues and strikes. In this case
workers also goes to unfair labor practices for directly go to strike but may be notices given to the
management if strike notice already given to the management they should must be planned about
this and use effective cannel of negotiation to avoid this strike.
Case -5
Participation of Railway Employee in Management (PREM)
Prem union originatedfrom workerunion (open line) in 1974. The union is register from also NIRC.
Prem union leader SabirRehman is in city Khanewal. The leader was calling the employees for
strike to November 17, 2006 for one day which may stop the operation khanewal junction. Manager
contact the union leader which may start the negotiation point about Problems.
12
Reason:
When the new employees are hire then they have no better facility of their work whose they are not
happy with this due to face difficulty to perform the work. They are handling this situation being
itself because they are not join the union. When the employees are going to management without
union who’s this problem are not solve them. Then the employees decide to join the union for solve
the problem. After join the union there are many issue are occur like in 2002 Sheikh Rasheed
announce to grade up the scale of employees but the government are not implement them. The
government telling them to give the benefit of employees but it’s have no financial budget and other
reason is that lager number of employees are taken this benefits whose government are face the
problem. So there are many issue occur in time to time who are face the employees. The other issue
employees are work insecure manner because after some period of time contract date finish whose
they have to leave the job. Then they are going to strike of solve the matter.
There’re given bellow some union issues and management perspective.
Union Negotiation Point:
1- Sheikh Rushed was increase (add up) scale but not implement by the government.
2-Contract people are appointed are regular manner.
3- Railway Police beat the employees during the perform of job.
Management Negotiation Point:
1-The management to take the one chance for taken to contract employees are regular and also
promise to grade up the scale.
2- They have to transfer of railway officer to another city and also excuse the employee.
Agreement:
The union and management are agree to each other point. Then union of employees goback to the
work.
Covering or pending issues:
1- The issue of railway officer is process to completes who’s bothparties are win- win situation.
2-The issue of grade upscale and contract employees till now not solve. The management to extend
the contract of employees but not the regular manner.
13
Recommendation.
If the government announce the any benefit for employees like increase wages then they have make
to proper planning of to sure check the financial budget and also as soon as possible make
implementation. The issue of grade up scale and contract employees are regular to evaluate the thing
is that gradually increase in specific time period 4 year. For example 500 employees are there work
in railway and 1st year 100 employees are to be regular with grade up scale ,2nd year 150
employees, 3rd year 150 employees and 4th year 100 employees.
CASE-6
Train driver welfare association
They work for the welfare of their employee to protect against the unfair practices by management or
some other issue occur in their working environment and during the service.
Issue of union employees
1- Improve service structure and running allowance
Negotiation between Management and Driver Association
Train driver association said that to management solve their issue to improve their service structure,
upgrade scale and running allowance. Railway federal minster khwaja saad rafiq not take any action
of their demand and not improve the service structure. Negation continue one year but not take any
decision about issue then association decide to go in countrywide strike. They give notice to
railway administration before strike and after two days they go on strike and operation are closed
in some part of country because the driver refused to run the train. Then Saad Rafique said the
railway administration to take immediate action timely on those employees who are creating
problem in operation. “Cases under anti-terrorism act will be registered against these drivers.”
Railways police arrested six drivers, Mohammad Yaqoob, Anjum Ali, Mohammad Yasin, Raja
Bashir and Mohammad Fayyaz, and union loco running wing president Raja Hafeez and fire from
their duty. In this situation the railway administration immediately called to learner drivers who had
not completed their training and run the operation. Driver association said that their strike would
continue till the railways management accepted their demands, including upgrading their pay scale
and meal allowances and restoring suspended drivers. Then Divisional Commercial Officer Ali
Raza, said to railway administration to called the permanent train drive and run the operation because
Pakistan Railways was working to provide safe and secure travel facilities to the people and
14
managed to bring in professional railway workers in this regard. Then management fulfil legal
demands of the driver association such as again hire the train driver and resumed their duty.
Union points
1-Improve the service structure
2-Give other allowance
2-Hire the Permanent contract driver
Management unfair labor practice
1-Arrest the train driver, leader of association and fire from duty.
2-Contact with learner driver to run the operation.
Recommendation
1-Increase scale gradually according to their experiences or service.
2-Alternative solution such as give the transport allowance.
3-Pay school fees of 3 month in 1 year of their child..
CRITICAL QUESTION
(A)PART
Is collective bargaining compatible with economic stability?
Collective bargaining is a key means through which employers and their organizations and trade
unions engage to build strong industrial relations based on mutual trust and agreement.
Designed as a qualitative research study, the present compilation draws upon case example of one
selected model representing the textile sector J&P Coats (Private) Limited and defines the role of
CBA to sustain the strong relation between the union employees and management as well as in the
sustainability of the economy of Pakistan .
J&P Coats Pakistan Private limited Collective Bargaining Agreement 2015 to 2017
Union submitted by “ charter of demand ’’ letter dated 7-9-2015 in which define the ( increase cost
of living, inflation and the general increase in cost of other commodity) which is under taken by
15
parties but extend the meeting time to time to agree on mutual consent. The main issue of union
worker express in agreement on wages, hours of working and employee condition.
Content of collective bargaining agreements
1-Settlement terms with respect to wages, Benefits and allowances concessions, works hours,
overtime etc.
2-Obligations of workers and employers;
3-Term/duration of the memorandum of settlement as agreed between the parties.
Negotiation process
TERMS AND CONDITONS OF AGREEMENT
UNION AGREE: GENERAL TERMS
1-CBA agree all demand include in charter of demand and they are not mention other demand in the
agreement and not rise directly or indirectly in the currency time of this agreement.
2-Agreed union employee or workmen not engage in union and strike, slow down, stoppage and not
any interference in any other activity who make a cause of rise in the agreement tenure. Management
maintain and retain the right of discipline and union not interfere in decision of action.
3-If any time during this currency time of tenure change or increase the wages is allow by the
government shall be the same applicable the workmen.
SPECIFIC TERMS
STANDARD ALLOCATION
Management review the standards were allocation at any time and change them according to global
policy.
ASSURANCE OF RESPONSIBILITIES
All employees follow the discipline when they work on the job if they not then company will take
action against discipline.
INTERFERNCE IN ADMINISTRATIVE STAFF
16
Union worker and bearer officer not interfere in directly or indirectly in administrative staff in term
of employment, deployment, transfer of workmen.
HEALTH AND SAFETY: management and company focus and maintain the health and safety of all
employees.
3. Outcomes of collective bargaining arrangements
Through CBA a good and strong relationship build between the management and workers
organizations and mutual respect and trust, develop with in agreement. This led to a win-win
situation for both sides as the financial gains were tied to production targets, creating motivation for
workers and releasing potential financial pressure for the management.
COMPANY WAGES PROVIDE TO WORKER
Then company agree to grant the some benefit and terms of to the workmen concern.
Increase in gross salary@ 9% in 2014 and 2015 and 2% as per minimum wages of notification to all
employees.
OTHER ALLOWANCE
HOUSE RENT: 45% OF BASIC PAY
CONVINYACE: 350
BONUS: 35% OF QUANTM ANNUAL PROFIT OF COMPANY
DEATH GRANT: 15000 TO 20000
RETIREMENT GIFT: 2000 TO 5000
Impact of CBA in Stable Economy
1-Through CBA build a strong relationship and create a win-win situation between the management
and worker and change come in their behaviour.
2-Living of standard and purchasing power better due to the increase in financial and other
allowances.
3-Unemployment minimizes with the help of CBA and sustains the economy of Pakistan.
4-Increase the efficiency and the effectiveness of the production and maximize the profit.
5-Management focus on employee health and safety program and develop the training program.
17
(B)PART
May wages and prices be pushed up, of necessity, so rapidly as to result in instability in output
and employment?
If wages and cost of labor increase it also increase the cost of product and service that organization
provides. Wages and prices has positive relationship to each other when cost of labor increase price
also increase but when price increase the organization can loss its competitive advantage due to
increase price and loss its position in the market. PIA is the best example of it as compare to another
airline like Blue airline,shaheen Airways. PIA increases their prices due to cost of labor increase
because PIA is not run its operation successfully and going to lose and when they increase their
prices they cannot meet with their competitors in the market and lose his competitive edge as a result
instability.
Theory
Marxist Theory
This theory basically focus to upper management so,it is apply on Pakistan railway
because there is a huge corruption in management and lower employees faces the result
of corruption in shape of downsizing, unnecessary delay in wages ,not promote BPS .
18

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Pakistan railway.project copy

  • 1. 1 Submitted to: Ms. ToobaShahid Submitted by: Nisar Ahmad 22 ShoaibSattar 13 Muhammad Sohaib 06 YousafArslan 35 DanialRafiq 26 AzimZafar 04 Institute of Banking & Finance BAHAUDDIN ZAKARIYA UNIVERSITY MULTAN Report on Union Negotiation Management
  • 2. 2 Tableof Contents PAKISTAN RAILWAY........................................................................................................................... 4 HISTORY................................................................................................................................................ 4 Industrial relation of Pakistan Railway ...................................................................................................4 Evolution of Union in Pakistan Railway.................................................................................................4 Case-1 ..................................................................................................................................................... 5 PAKISTAN RAILWAY SAMPARS UNION......................................................................................... 5 Analysis ............................................................................................................................................... 5 Negotiation Points of union members.....................................................................................................5 Negotiation points of management.........................................................................................................5 Recommendation..................................................................................................................................5 Case-2 ..................................................................................................................................................... 6 Railway worker protest against downsizing ............................................................................................ 6 HISTORY............................................................................................................................................ 6 Negotiation of both parties .................................................................................................................... 6 Recommendation..................................................................................................................................8 Case -3..................................................................................................................................................... 8 PAKISTAN INQLABI UNION............................................................................................................. 8 Inqlabi union originated in 1974 from following unions:.....................................................................8 1-Railway worker union (open line) ....................................................................................................8 2-Railway worker union (work shop) ..................................................................................................8 Analysis ............................................................................................................................................... 9 Negotiation points of union members .....................................................................................................9 Negotiation points of management.........................................................................................................9 Recommendations.................................................................................................................................9 Case -4..................................................................................................................................................... 9 Railway Worker’s Union (Workshops)...................................................................................................9 Issue:................................................................................................................................................. 10 Analysis ............................................................................................................................................. 11 Main Point of Union Negotiation: ........................................................................................................ 11 Main Point of Management Negotiation ............................................................................................... 11 Recommendation:............................................................................................................................... 11 Case -5................................................................................................................................................... 11 Participation of Railway Employee in Management (PREM)................................................................. 11 Reason............................................................................................................................................... 12 Union Negotiation Point:..................................................................................................................... 12
  • 3. 3 Management Negotiation Point:........................................................................................................... 12 Agreement:......................................................................................................................................... 12 Covering or pending issues:................................................................................................................. 12 Recommendation. ............................................................................................................................... 13 CASE-6................................................................................................................................................. 13 Train driver welfare association ........................................................................................................... 13 Issue of union employees .................................................................................................................... 13 Union points....................................................................................................................................... 14 Recommendation................................................................................................................................ 14 CRITICAL QUESTION ......................................................................................................................... 14 (A)PART............................................................................................................................................... 14 Is collective bargaining compatible with economic stability? ................................................................. 14 Impact of CBA in Stable Economy ...................................................................................................... 16 (B)PART............................................................................................................................................... 17 May wages and prices be pushed up, ofnecessity, so rapidly as to result in instability in output and employment?................................................................................................................................. 17 If wages and cost of labor increase it also increase the cost of product and service that organization provides. Wages and prices has positive relationship to each other when cost of labor increase price also increase but when price increase the organization can loss its competitive advantage due to increase price and loss its position in the market. PIA is the best example of it as compare to another airline like Blue airline. PIA increases their prices due to cost of labor increase because PIA is not run its operation successfully and going to lose and when they increase their prices they cannot meet with their competitors in the market and lose his competitive edge as a result instability. .................................... 17 Theory................................................................................................................................................... 17 Marxist Theory................................................................................................................................... 17 This theory basically focus to upper management so,it is apply on Pakistan railway because there is a huge corruption in management and lower employees faces the result of corruption in shape of downsizing, unnecessary delay in wages ,not promote BPS. ........... 17
  • 4. 4 PAKISTAN RAILWAY HISTORY Pakistan railway is the national state owned railway group of Pakistan whose headquarter is in Lahore and was founded in 1861. In 1974, Pakistan Western Railways was renamed Pakistan Railways .It owns 4,800 miles (7,791 km) of track across Pakistan from Torkham to Karachi and operates freight and passenger service. Ministry of railway has launched many projects for development, renovation and up gradation of locomotives, infrastructure and passenger services china- Pakistan economic corridor is the leading example of these projects which lasts for RS.886.68 billion with duration of 2025. Muhammad Aftab Akbar is chief executive of Pakistan railway, and more than 73,276 has employed in Pakistan railway. Industrial relation of Pakistan Railway Pakistan railway is a state owned sector and there is still a great influence of political interference so, management is work under pressure of government. By legal allow the employees to join union, there is aggressive relationship between union and management because management focus their on motive and not proper treated employees well. Movements of union depend on government behaviors some government support union movements and some government try to curb union movements like in the ere of BHUTTO union were supported by government and in the era of dictatorship try to restrict union movement so the relationship of union and management time to time changed. Evolution of Union in Pakistan Railway Atthe time ofsepration 1947, there was only two union working in Pakistan Railway, that’s name is following, 1-Railway Worker Union 2-United Union In 1948, Railway Worker Union divided into two parts and they made their own union, 1-Railway Worker Union (open lines) 2-Railway Worker Union (work shop)
  • 5. 5 Case-1 PAKISTAN RAILWAY SAMPARS UNION Station masters hasseparate from United Unionand made SAMPARSUNION 1984,it works for station masters and other workersalso, after giving notice of strike 15 Jan 2016 SAMPARS UNION call for strike and demand for improvement in pay structure, and rehire of contract employees, management has agreed to rehire of contract employees, but for pay scale take time from union in order to negotiate with upper management, after assurance of authority union call –off for strike and start operation. After resuming the service railway police had arrested union leader in QUETTA and then union again stoped the operation and call for strike,chief Executive Railway Javed Anwar and Senior General Manager contacted the Sampars Union officials and assured the release of Union leader Irfan ,after assurance union start to run operation. Government has not interested to resolve the issue and they just passed their tenure, and then union register their petition in high-court after proceeding court award decision in favoure of station masters and after that bill was passed by establishment division now it is pending in finance division. On hearing of 14 November 2018, high –court summoned sectary finance division. Analysis Negotiation Points of union members 1-demand for improvement in pay structure. 2-re-hire of contract employees. 3-increase in allowances at 55% which already given to railway guard. Negotiation points of management 1-accept demand of rehire contract employees. 2-Pay- scale promotion will be accepted after legal procedure. 3-successfully resume the railway operation. 4-difficult for us to increase in allowances because its running through out, if we accepted your demand than other employee will also demand for increase in allowances. Recommendation Being a part of railway Pakistan management I would not favoure the decision to arrest the union leader mr.irfan, I was going to solve the problem through proper channel of negotiation with union as
  • 6. 6 well as upper management. And I would prefer to to more focus on systematic pay structure which help to minimize discrimination amoung employees and which help to award pay scale according to their job description as well as experience ,and I would apply to TWO-TIER PAY system which increase the basic-pay scale on the seniority base of employees . Case-2 Railway worker protest against downsizing HISTORY The case was held in January 15, 2011 THE Railway Workers’ Union (Open Line) and Railway Workers Union (Workshops) on Friday held a protest demonstration against the proposal of firing 20,000 railway employees. Central leaders of the unions, including Fazal Wahid, AshiqChaudhry, RaoNaseem, ManzoorRazi, Akbar Ali, Anwar Gujjar and ShaukatChaudhry, led the protest held here at the railway workshops. The protesters were holding banners and placards inscribed with slogans against the anti-worker attitude and statements of the railway high-ups. They chanted slogans against General Manager Operations AshfaqKhatak for saying that 20,000 employees would be sacked. Negotiation of both parties The railway workers leaders said that if the administration tried to implement any such decision, the fired employees would not remain silent and they would break all hell loose on the PR to force the seizure of the railway operations. They said the debt faced by PR had got nothing to do with its employee count but was actually an outcome of the extremely corrupt management and administrative officials who were appointed for hundreds of thousands in Pakistan Railways Advisory and Consultancy (PRACS). The protestors said the remedy for the PR problems was not sacking scores of people from the lower ranks but uprooting the network of corruption at the higher level which was causing irreparable damage. They warned the PR against sacking workers at such massive scale, saying that it would meet strong opposition and the employees would go to any extent to save the railway. On the other hand, addressing a press conference here at Pakistan Railway Employees Prem Union office, its Senior Vice-President Sheikh Muhammad Anwar warned the PR authorities that the workers would suspend every operation and halt all the trains across the country if the government tried to sack 20,000 workers and curtail further 39 so-called uneconomical passenger trains.
  • 7. 7 Flanked by union leaders, including Saghir Ahmed Cheema, Khalid MehmoodCh, Qazi Abdul Wadood, Iftikhar Ali Khan, MehmoodulAhad, Qazi Abdul Wadood, MianAmjadNadeem, Abdul Jabbar, Muhammad Tufail, MansoorSafri and Malik Jamil, Sheikh Anwar said the PR General Manager AshfaqKhattak was hatching the conspiracy against workers as he wanted to curtail trains up to 50 percent and then start downsizing of workers taking plea that extra staffing was a burden on the department so their number should also be cut by 50 percent. He said the conspiracy would not work as the PR laborers would not let the ministry do so. He asked that by curtailing the passenger trains whether the PR deficit would come down or it would increase. Mr Anwar said it was the need of the hour to stop corruption in the PR, adding that if the government wanted to decrease the deficit, it should taken stern action against corrupt bureaucrats who were plundering the invaluable assets of the PR. Talking about the Shalimar Express, he said the recently suspended express was running with 16 coaches carrying over 1,400 passengers from Lahore to Karachi giving profit in million of rupees to the PR on a daily basis. He said the railway administration had also closed down other profitable trains like Taizrao Express and Shah Rukn-e- Alam Express, which were running between Karachi-Rawalpindi and Karachi-Multan routes respectively. He said instead of increasing numbers of trains and making them profit-oriented, the corrupt bureaucrats were hatching conspiracies to reduce the number of trains to hide their own corruption. He said that after the closure of some trains, no bogies were added to the existing passenger trains as currently the trains were running with only eight to 10 bogies whereas a passenger train should have at least 18 to 20 bogies. The union leader said that after the floods, road infrastructure had been badly affected and needed billions of rupees to repair it while PR needed only less amount to stand on its feet. He said operational expenditures could be curtailed up to 35 percent easily that would lower the sufferings of people who were already facing severe communication problem after floods. Mr Anwar said the government should get rid of corrupt bureaucrats, curtail unnecessary expenditures instead of reducing number of trains to meet the deficit. He said the developed countries of the world had enhance further network and facilities of their railways despite having up- to-the-mark road infrastructure while in Pakistan the railway operations were being minimized. He said that Railway Ministry’s step to close 39 more trains would deprive the already inflation-hit people of their sole means of transportation. He said PR employees would not only resist the closure of trains but would also try to stop PR going into the hands of profit-crazy private companies like the PRACS.
  • 8. 8 Meanwhile, the spokesperson for the PR has clarified that the department did not intend to sack its employees at a massive scale and there was no such move under consideration. Recommendation My recommendation for the downsizing of the employee is that 1-Focus on to stop corruption at the executive level of the railway 2-Don’t terminate the hire employee. But stop hiring new employee 3-Give the employee meal allowance as a benefit. 4-Give their employee the quota of employee son. Case -3 PAKISTAN INQLABI UNION Inqlabi union originated in 1974 from following unions: 1-Railway worker union (open line) 2-Railway worker union (work shop) ManzoorAhhmedRazi is the president of Pakistan railway worker of Inqlab union.They have to make improvement of the railway service in Pakistan as well as the lot of the workers associated with Pakistan Railways. They are also give profitability of railways sector like new trains are introduced Karachi and Lahore city whose 40000 people to avail the jobs. Karachi, Feb 28,2012: Railway workers unions under the umbrella of the Rail BachaoIttehad staged a protest demonstration on Tuesday which may concern employees are going to strike because the train system are to be going on privatized , cargo system and also to stop the pension of retirement employees for continuously eight month. Railway Workers Union leader Manzoor Ahmed Razi are not accept the privatization system while if any other private firm desired to invest the railway then it should bring to coaches and staffs training and make better working condition and also give immediately pension of retirement employees. The other representatives of the Abdul Majeed leader ofMehnetkashMazdoor Union who was also going to strike in superintendent office to be not making system privatize like cargo system.
  • 9. 9 Then both of leaders are not happy to priviitize system beacause they are enjoy the monopoly. Analysis Negotiation points of union members 1-union protest their rights and said that Pakistan railway should not be privatised because of job security and firing risk. 2-union said that management stop their pensions at last eight months 3-Give the staff training and make better working conditions. Negotiation points of management 1-Pakistan railway has huge burden of lossess . 2-Pakistan railway has not proper leadership. 3-Pakistan railway has a big problem of corruption. 4-due to the pressure of IMF. The inevitable privatisation can only be delayed, but not avoided. The attempts to privatise Railways always end up in the Superior Courts where Railways employees argue for their rights to a public sector employment. Recommendations Pakistan railway is a state owned organization.As a part of management I would focused on leadership skills and to remove corruption in order to overcome from deficit budget.another big issue of Pakistan railway political interference and I would like to work on a long term development plane for the Pakistan railway .I would reffer to focus on these issues rather than to privatised the Pakistan railway. Case -4(Successful Story) Railway Worker’s Union (Workshops) Railway Worker’s Union (Workshops) is the oldest & largest industry-wide trade union of Pakistan founded in 1948. It represents all workers which are employed in railway workshops all over in
  • 10. 10 Pakistan. It is the affiliate of International Transport Workers’ Federation London, which is the International Federation, representing more than 148 countries in different categories of transport. It is also an affiliate of All Pakistan Trade Union Federation and registered in NIRC. Head of the Union is Raja Zahid Khan, President of the union is RanaMasoom Ali and the General Secretary of the union is Syed MahmoodUl Hassan. Issue: Trains from Lahore were delayed for up to eight hours on Tuesday 15 Feb 2011 as Pakistan Railways (PR) workers do a protest against the non-payment of their salaries and they refused to let locomotives out of their shed.Train services resumed later after the workers were paid and they stopped their protest, but not before thousands of passengers spent hours stranded at Lahore Railway Station. Many had been planning journeys home for the Eid-e-Milad-un-Nabi holiday. The protest lasted around eight hours. On Tuesday, railway shed workers surrounded the Mughalpura locomotives shed, which housed 32 engines. As a result, the Karakoram Express, AllamaIqbal Express, Tez Gam Express, Rail Car to Rawalpindi, Farid Express, Night Coach to Karachi and others were unable to depart Lahore. The head of the Railways Workers Union (RWU) told the protest was related to the upcoming Eid- e-Milad holiday, we were scheduled to get our salaries today on Tuesday. RWU president Sarfaraz Khan said that we are religious people and we need money for the holiday. We cannot celebrate without our salaries. SarfarazKhan said the union was not insensitive to the needs of passengers headed home for the holiday, but that they had little choice. Our members are poor people. They don’t have money to feed their families. If the distribution of salaries had started on the 12th there would not be this problem. There are some PR officials who are always trying to create disturbances in railway operations. A Pakistan Railway management said that the due date for the salaries of these employees was between the 15th and 22nd of every month. He said if workers do not get their salaries today on Tuesday, they will get them on Thursday after the holiday its routine practice. Pakistan Railway officials tried to resolve the protest by offering to pay half the salaries of the shed employees. Workers said they had been offered Rs6 million, but the total salaries came to Rs12 million.They refused to stop the protest. After further negotiations, PR divisional superintendent Abdul Jabbar had the workers paid their full salaries. The locomotives were
  • 11. 11 allowed out of the shed and the delayed trains set off, but not before the holidays of thousands of passengers had been ruined. It’s a success story of negotiation that management agrees with Union and pays all the salaries to workers. After that protest closed and trains run its operations Analysis Main Point of Union Negotiation: 1-Demand to payment of their salaries. 2-Payment of salaries on same day before Eid Miladun Nabi event. Main Point of Management Negotiation: 1-Salaries will be pay on next working days. 2-Offering half amount of total salaries. Recommendation: I would recommend that management should improve the way of salary distribution process and salaries are given to the workers at the time to avoid these types of issues and strikes. In this case workers also goes to unfair labor practices for directly go to strike but may be notices given to the management if strike notice already given to the management they should must be planned about this and use effective cannel of negotiation to avoid this strike. Case -5 Participation of Railway Employee in Management (PREM) Prem union originatedfrom workerunion (open line) in 1974. The union is register from also NIRC. Prem union leader SabirRehman is in city Khanewal. The leader was calling the employees for strike to November 17, 2006 for one day which may stop the operation khanewal junction. Manager contact the union leader which may start the negotiation point about Problems.
  • 12. 12 Reason: When the new employees are hire then they have no better facility of their work whose they are not happy with this due to face difficulty to perform the work. They are handling this situation being itself because they are not join the union. When the employees are going to management without union who’s this problem are not solve them. Then the employees decide to join the union for solve the problem. After join the union there are many issue are occur like in 2002 Sheikh Rasheed announce to grade up the scale of employees but the government are not implement them. The government telling them to give the benefit of employees but it’s have no financial budget and other reason is that lager number of employees are taken this benefits whose government are face the problem. So there are many issue occur in time to time who are face the employees. The other issue employees are work insecure manner because after some period of time contract date finish whose they have to leave the job. Then they are going to strike of solve the matter. There’re given bellow some union issues and management perspective. Union Negotiation Point: 1- Sheikh Rushed was increase (add up) scale but not implement by the government. 2-Contract people are appointed are regular manner. 3- Railway Police beat the employees during the perform of job. Management Negotiation Point: 1-The management to take the one chance for taken to contract employees are regular and also promise to grade up the scale. 2- They have to transfer of railway officer to another city and also excuse the employee. Agreement: The union and management are agree to each other point. Then union of employees goback to the work. Covering or pending issues: 1- The issue of railway officer is process to completes who’s bothparties are win- win situation. 2-The issue of grade upscale and contract employees till now not solve. The management to extend the contract of employees but not the regular manner.
  • 13. 13 Recommendation. If the government announce the any benefit for employees like increase wages then they have make to proper planning of to sure check the financial budget and also as soon as possible make implementation. The issue of grade up scale and contract employees are regular to evaluate the thing is that gradually increase in specific time period 4 year. For example 500 employees are there work in railway and 1st year 100 employees are to be regular with grade up scale ,2nd year 150 employees, 3rd year 150 employees and 4th year 100 employees. CASE-6 Train driver welfare association They work for the welfare of their employee to protect against the unfair practices by management or some other issue occur in their working environment and during the service. Issue of union employees 1- Improve service structure and running allowance Negotiation between Management and Driver Association Train driver association said that to management solve their issue to improve their service structure, upgrade scale and running allowance. Railway federal minster khwaja saad rafiq not take any action of their demand and not improve the service structure. Negation continue one year but not take any decision about issue then association decide to go in countrywide strike. They give notice to railway administration before strike and after two days they go on strike and operation are closed in some part of country because the driver refused to run the train. Then Saad Rafique said the railway administration to take immediate action timely on those employees who are creating problem in operation. “Cases under anti-terrorism act will be registered against these drivers.” Railways police arrested six drivers, Mohammad Yaqoob, Anjum Ali, Mohammad Yasin, Raja Bashir and Mohammad Fayyaz, and union loco running wing president Raja Hafeez and fire from their duty. In this situation the railway administration immediately called to learner drivers who had not completed their training and run the operation. Driver association said that their strike would continue till the railways management accepted their demands, including upgrading their pay scale and meal allowances and restoring suspended drivers. Then Divisional Commercial Officer Ali Raza, said to railway administration to called the permanent train drive and run the operation because Pakistan Railways was working to provide safe and secure travel facilities to the people and
  • 14. 14 managed to bring in professional railway workers in this regard. Then management fulfil legal demands of the driver association such as again hire the train driver and resumed their duty. Union points 1-Improve the service structure 2-Give other allowance 2-Hire the Permanent contract driver Management unfair labor practice 1-Arrest the train driver, leader of association and fire from duty. 2-Contact with learner driver to run the operation. Recommendation 1-Increase scale gradually according to their experiences or service. 2-Alternative solution such as give the transport allowance. 3-Pay school fees of 3 month in 1 year of their child.. CRITICAL QUESTION (A)PART Is collective bargaining compatible with economic stability? Collective bargaining is a key means through which employers and their organizations and trade unions engage to build strong industrial relations based on mutual trust and agreement. Designed as a qualitative research study, the present compilation draws upon case example of one selected model representing the textile sector J&P Coats (Private) Limited and defines the role of CBA to sustain the strong relation between the union employees and management as well as in the sustainability of the economy of Pakistan . J&P Coats Pakistan Private limited Collective Bargaining Agreement 2015 to 2017 Union submitted by “ charter of demand ’’ letter dated 7-9-2015 in which define the ( increase cost of living, inflation and the general increase in cost of other commodity) which is under taken by
  • 15. 15 parties but extend the meeting time to time to agree on mutual consent. The main issue of union worker express in agreement on wages, hours of working and employee condition. Content of collective bargaining agreements 1-Settlement terms with respect to wages, Benefits and allowances concessions, works hours, overtime etc. 2-Obligations of workers and employers; 3-Term/duration of the memorandum of settlement as agreed between the parties. Negotiation process TERMS AND CONDITONS OF AGREEMENT UNION AGREE: GENERAL TERMS 1-CBA agree all demand include in charter of demand and they are not mention other demand in the agreement and not rise directly or indirectly in the currency time of this agreement. 2-Agreed union employee or workmen not engage in union and strike, slow down, stoppage and not any interference in any other activity who make a cause of rise in the agreement tenure. Management maintain and retain the right of discipline and union not interfere in decision of action. 3-If any time during this currency time of tenure change or increase the wages is allow by the government shall be the same applicable the workmen. SPECIFIC TERMS STANDARD ALLOCATION Management review the standards were allocation at any time and change them according to global policy. ASSURANCE OF RESPONSIBILITIES All employees follow the discipline when they work on the job if they not then company will take action against discipline. INTERFERNCE IN ADMINISTRATIVE STAFF
  • 16. 16 Union worker and bearer officer not interfere in directly or indirectly in administrative staff in term of employment, deployment, transfer of workmen. HEALTH AND SAFETY: management and company focus and maintain the health and safety of all employees. 3. Outcomes of collective bargaining arrangements Through CBA a good and strong relationship build between the management and workers organizations and mutual respect and trust, develop with in agreement. This led to a win-win situation for both sides as the financial gains were tied to production targets, creating motivation for workers and releasing potential financial pressure for the management. COMPANY WAGES PROVIDE TO WORKER Then company agree to grant the some benefit and terms of to the workmen concern. Increase in gross salary@ 9% in 2014 and 2015 and 2% as per minimum wages of notification to all employees. OTHER ALLOWANCE HOUSE RENT: 45% OF BASIC PAY CONVINYACE: 350 BONUS: 35% OF QUANTM ANNUAL PROFIT OF COMPANY DEATH GRANT: 15000 TO 20000 RETIREMENT GIFT: 2000 TO 5000 Impact of CBA in Stable Economy 1-Through CBA build a strong relationship and create a win-win situation between the management and worker and change come in their behaviour. 2-Living of standard and purchasing power better due to the increase in financial and other allowances. 3-Unemployment minimizes with the help of CBA and sustains the economy of Pakistan. 4-Increase the efficiency and the effectiveness of the production and maximize the profit. 5-Management focus on employee health and safety program and develop the training program.
  • 17. 17 (B)PART May wages and prices be pushed up, of necessity, so rapidly as to result in instability in output and employment? If wages and cost of labor increase it also increase the cost of product and service that organization provides. Wages and prices has positive relationship to each other when cost of labor increase price also increase but when price increase the organization can loss its competitive advantage due to increase price and loss its position in the market. PIA is the best example of it as compare to another airline like Blue airline,shaheen Airways. PIA increases their prices due to cost of labor increase because PIA is not run its operation successfully and going to lose and when they increase their prices they cannot meet with their competitors in the market and lose his competitive edge as a result instability. Theory Marxist Theory This theory basically focus to upper management so,it is apply on Pakistan railway because there is a huge corruption in management and lower employees faces the result of corruption in shape of downsizing, unnecessary delay in wages ,not promote BPS .
  • 18. 18