This document discusses collective bargaining between OGDC management and labor unions. It provides background on collective bargaining, details of labor demands at OGDC around living facilities, insurance, and safety. Management agreed to a union meeting where the president negotiated to accept the demands. Steps taken included improved leave policies and medical benefits. A SWOT analysis examined OGDC's strengths in skilled employees and market position, and weaknesses like political influences. The conclusion stated collective bargaining protects labor rights and management views unions positively when implementing policies in their mutual interest.

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DEDICATION DEDICATION
WeWe dedicate our work todedicate our work to
our family. A specialour family. A special
feeling of thanks to ourfeeling of thanks to our
loving parents whoseloving parents whose
words of encouragementwords of encouragement
encourages us.encourages us.

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Introduction to Introduction to
the topic:the topic:

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 Collective Bargaining is negotiationCollective Bargaining is negotiation
between an employer and a group ofbetween an employer and a group of
employees to reach an agreement onemployees to reach an agreement on
working conditions.working conditions.
Collective BargainingCollective Bargaining

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Scope Of Collective BargainingScope Of Collective Bargaining
• Wages fixation.Wages fixation.
• Increments and bonus payment.Increments and bonus payment.
• Hours of work & overtime.Hours of work & overtime.
• Terms & conditions of work.Terms & conditions of work.
• Safety, welfare and health care.Safety, welfare and health care.

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HISTORYHISTORY
• The term "collective bargaining" was firstThe term "collective bargaining" was first
used in 1891 by economic theoristused in 1891 by economic theorist
Sidney WebSidney Web..
• However, collective negotiations andHowever, collective negotiations and
agreements had existed since the rise ofagreements had existed since the rise of
trade unions during the nineteenthtrade unions during the nineteenth
century.century.

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Stages of Collective BargainingStages of Collective Bargaining
1.1. PreparingPreparing
2.2. ArguingArguing
3.3. SignalingSignaling
4.4. ProposingProposing
5.5. PackagingPackaging
6.6. BargainingBargaining
7.7. ClosingClosing
8.8. AgreeingAgreeing

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Criteria For Making Collective Criteria For Making Collective
Bargaining EffectiveBargaining Effective
• Proper selection of negotiating team.Proper selection of negotiating team.
• Consider union as a partner. Consider union as a partner.
• Understand views and interests of other Understand views and interests of other
party with open mind.party with open mind.
• Adequate homework.Adequate homework.
• Strikes & lockouts are to be last resorts.Strikes & lockouts are to be last resorts.

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Levels of Collective BargainingLevels of Collective Bargaining
Collective bargaining operates atCollective bargaining operates at
three levels:three levels:
1. National level.1. National level.
2. Sector or industry level.2. Sector or industry level.
3. Company/enterprise level.3. Company/enterprise level.

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1.1. National level:National level:
National bargaining is a negotiation between unionNational bargaining is a negotiation between union
confederations, central employer associationsconfederations, central employer associations
and government agencies. It aims at providing aand government agencies. It aims at providing a
floor for lower level bargaining on the terms offloor for lower level bargaining on the terms of
employment.employment.
2. Sector Or Industry Level:2. Sector Or Industry Level:
Sector oral bargaining, which aims at theSector oral bargaining, which aims at the
standardization of the terms of employment instandardization of the terms of employment in
one industry, includes a range of bargainingone industry, includes a range of bargaining
patterns.patterns.

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3.Company level3.Company level
The third bargaining level involves theThe third bargaining level involves the
company and/or establishment. As acompany and/or establishment. As a
supplementary type of bargaining, itsupplementary type of bargaining, it
emphasizes the point that bargainingemphasizes the point that bargaining
levels need not be mutuallylevels need not be mutually
exclusive.exclusive.

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Practical Study ofPractical Study of
OGDCLOGDCL

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OGDCLOGDCL (OIL & GAS DEVELOPMENT COMPANY LTD)(OIL & GAS DEVELOPMENT COMPANY LTD)
 Created in 1961.Created in 1961.
 National oil & gas company ofNational oil & gas company of
Pakistan.Pakistan.
 listed on the London Stocklisted on the London Stock
Exchange since 2006.Exchange since 2006.
 Share of the total oil and gasShare of the total oil and gas
production in Pakistan is 52% andproduction in Pakistan is 52% and
23% respectively.23% respectively.

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MAJOR ACTIVITIES
Exploration & Development of Oil & Gas
Resources.
MAIN PRODUCT LINE
 Crude Oil
 Gas
 LPG

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Logo ofLogo of
OGDCLOGDCL

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VisionVision statementstatement
"To be a leading multinational Exploration and"To be a leading multinational Exploration and
Production Company".Production Company".
MISSION STATEMENTMISSION STATEMENT
““Our mission is to become a competitive, dynamicOur mission is to become a competitive, dynamic
and growing Company, rapidly enhancing ourand growing Company, rapidly enhancing our
reserves through world class work force".reserves through world class work force".

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How Situation OccursHow Situation Occurs
• The working pattern of OGDC is aThe working pattern of OGDC is a
different from otherdifferent from other
organizations.organizations.
• The oil and gas fields are locatedThe oil and gas fields are located
in remote areas. Most of thein remote areas. Most of the
unskilled labor is hired from theunskilled labor is hired from the
nearby areas, while skilled staff isnearby areas, while skilled staff is
hired from all over the country.hired from all over the country.
• The workings conditions areThe workings conditions are
tough and frustrations of workertough and frustrations of worker
during stay in fields createduring stay in fields create
problems for the management.problems for the management.

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Labor DemandLabor Demand
19th April 2011, the19th April 2011, the
following demandsfollowing demands
of labor are:of labor are:
Living facility.Living facility.
Life insuranceLife insurance
facility.facility.
Safety measures.Safety measures.
Medical facility.Medical facility.

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Management’s ActionManagement’s Action
 In response to the above demands, management decidedIn response to the above demands, management decided
to have an internal meeting for fulfillment of theseto have an internal meeting for fulfillment of these
demands and for this purpose management told the Uniondemands and for this purpose management told the Union
Representatives required two weeks time for taking anyRepresentatives required two weeks time for taking any
decision in this regard.decision in this regard.
 After the lapse of these two weeks, management did notAfter the lapse of these two weeks, management did not
decide anything in favors or against OGDCL labor of remotedecide anything in favors or against OGDCL labor of remote
areas.areas.

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Strikes are to be takenStrikes are to be taken
Due to this situation, 4 thousand labors serve aDue to this situation, 4 thousand labors serve a
three days strike notice to the management.three days strike notice to the management.
They said that during the strike no workThey said that during the strike no work
would be done in field as well as in offices.would be done in field as well as in offices.

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Union and Management MeetingUnion and Management Meeting
• After receiving the above mentioned strike notice,After receiving the above mentioned strike notice,
OGDC management arranged an emergency meetingOGDC management arranged an emergency meeting
with the union representatives in OGDC Headquarters.with the union representatives in OGDC Headquarters.
• OGDC Labor Union President Chaudhry MohammadOGDC Labor Union President Chaudhry Mohammad
Akram represents OGDC union, bargain veryAkram represents OGDC union, bargain very
comprehensively, and forced the management tocomprehensively, and forced the management to
accept the labor demands.accept the labor demands.

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Steps That Are Taken By the ManagementSteps That Are Taken By the Management
There are following steps are taken by the management:There are following steps are taken by the management:
• Workers spend 45 days in filed and is allowed 15 daysWorkers spend 45 days in filed and is allowed 15 days
off to live with their families. This helps them to regainoff to live with their families. This helps them to regain
their energies and remove their frustration.their energies and remove their frustration.
• Management has taken the steps such as facilities ofManagement has taken the steps such as facilities of
life insurance, free medical for workers.life insurance, free medical for workers.
• The Corporation also provides all safety measures andThe Corporation also provides all safety measures and
use of helmet for the worker in the field.use of helmet for the worker in the field.

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SWOT AnalysisSWOT Analysis

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STRENGTHS:STRENGTHS:
• Highly Skilled People.Highly Skilled People.
• Vast Experience.Vast Experience.
• Partner are the biggest Players inPartner are the biggest Players in
the market.the market.
• High market capital and revenue.High market capital and revenue.

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WEAKNESSESWEAKNESSES
• Political InfluencesPolitical Influences
• Target Customer is limitedTarget Customer is limited
• Market model is not scalableMarket model is not scalable
• Third party dependenceThird party dependence
• Inadequate FinancingInadequate Financing

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OPPORTUNITIESOPPORTUNITIES
• Great positioning in the marketGreat positioning in the market
• Expanding into vertical marketExpanding into vertical market
• Few substitutesFew substitutes
• High international MarketHigh international Market

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THREATSTHREATS
• TechnologyTechnology
• Fear of unproductive wellsFear of unproductive wells
• Vast MarketVast Market
• Customers have more opportunitiesCustomers have more opportunities
in global marketin global market

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CONCLUSIONCONCLUSION
• From the above report, concluded that how collectiveFrom the above report, concluded that how collective
bargaining is formed and done.bargaining is formed and done.
• It is legal tool for the labor to fight their rights.It is legal tool for the labor to fight their rights.
• Management realizes that the positive role of trade unionManagement realizes that the positive role of trade union
has helped in implementation of their policies.has helped in implementation of their policies.
• It considers the workers as valuable assets of theIt considers the workers as valuable assets of the
corporation and union activities as their genuine right.corporation and union activities as their genuine right.
• The labor union feels that good industrial relations are keyThe labor union feels that good industrial relations are key
to the success of OGDCL.to the success of OGDCL.

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RECOMMENDATIONSRECOMMENDATIONS
• Use latest technology.Use latest technology.
• Hire Skilled labor.Hire Skilled labor.
• Hire Engineers from China.Hire Engineers from China.
• Provides latest instruments to labor.Provides latest instruments to labor.
• Provide batter medical facility.Provide batter medical facility.

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