This document discusses a case study involving a collective bargaining agreement at R.K. Brewery Limited. It notes that the company had a collective agreement with fixed salaries, but the new HR manager, Mr. Vinod, implemented a performance-based salary scheme which increased productivity by 30% and salaries for 80% of employees by 20-30%. However, this caused the trade union membership to decline. With the agreement expiring, the union requested negotiations due to salary differences causing social issues. Mr. Vinod had to decide whether to engage in collective bargaining or negotiate individually.

1. HUMAN RESOURCE
MBA SEM 2
GROUP NO :- 1(A2)
PRIYANKA BACHKANIWALA-4
RAKSHIT BHAVSAR-13
KOSHA DOSHI-24
AANCHAL JAIN-37
SONAM LALWANI-51
TOPIC : CASE STUDY PRESENTATION

3. Collective
Bargaining

4. Collective bargaining is defined
as the negotiation between an
employer and a union to
determine the wages, hours
and other terms of employment
for a group of employees with
common duties and interests
and similar pay. The collective
bargaining agreement will be
active for a set period of time.

6.  Negotiations between an individual employee
and their employer that lack the strength of
support from a collective bargaining solution
and may give the employer the upper hand in
the negotiation process

8.  R.K. Brewery Limited produces four varieties
of beer as well as mineral water.
 The company entered a collective agreement
with the trade union in 2005 which would be
in force for five years up to the end of 2010.
 There was a collective agreement with a
fixed salary for a group of employees
performing the same job.
 Mr.Vinod Michael joined R.K.Brewery as Chief
HR Manager in 2007.
 He analyzed the agreement and felt that to
enhance the productivity beyond the current
level , performance based salaries with a
base line should be adopted.

9.  The CEO accepted the idea reluctantly as the
trade union may create problems.
 Mr. Vinod implemented the scheme in may
2008.
 The scheme worked beyond expectation, as
the productivity increased by 30% in addition
to improvement in quality and delivery
schedule. The salaries of 80% employees
increased by 20% to 30% and surprisingly the
membership of trade union declined to around
45% by 2009.

10.  In, the view of expiry of collective
agreement, on 31st December 2010 trade union
requested management to arrange a collective
bargaining meeting as they where worried for
salary differential causing social problem among
employees and their family members.
 Mr.Vinod discussed the issue with the CEO and
senior level managers in a meeting. There were
mixed arguments and responses in the meeting.
 Finally, Mr.Vinod took a decision of implementing
bargaining or negotiations with individual
employees regarding salaries,benefits,working
conditions,and all other issues of HR.

13.  Vinod analyzed the collective agreement with a
fixed salary for a group of employees performing
the same job . He felt that it would be difficult to
enhance the productivity beyond the current
level, though the competition demands increase in
productivity at least by 25%,in addition to
improvement in a quality and delivery scheduled.
 Vinod also felt that there is no need for collective
bargaining meeting as well as collective
agreement as the salaries and benefits are based
on individuals performance of employees.

15.  Monetary motivation for any worker is big
thing, if its in his favor. But here salaries of
only 80% employees was increased by 20% to
30% and surprisingly the membership of trade
union declined to around 45% by 2009.
 Thus, Trade Union were worried about
increasing in salary of remaining 20%
employees and majority of his members. Also,
it caused social problems among the
employees and their family members. They
requested the management to make an
arrangement for collective bargaining meeting
and arrive at new agreement during the
second week of January 2009,in the view of
expiry of collective agreement by 31st
December 2010.

16.  Any discontent or dissatisfaction whether
expressed or not and whether valid or not
arising out of anything connected with
the company / organization that an
employee thinks / believes or even
“feels” is unfair or unjust.

17.  Dissatisfaction
 Complaint
 Accusation
 Criticism
 Objection
 Grumble
 Injustice

19.  Type of Grievances Common causes
(The worker feels that)
Wages:
1. 1. Demand for individual wage He is not getting what he is
worth. Gets
adjustment less than other people work
requiring the same skill.
2.Complaints about job His job is worth more than it
pays. Should be
classification reclassified, deserves to be
upgraded.
3. Complaints about The method of figuring his pay is
so complicated
incentive system that he doesn’t know what his rate
really is.
4. Miscellaneous Mistakes are made in calculating
pay.

22.  Mr. Suresh is the CEO of On-Line Information Systems Limited. Mrs. Lalitha
Goenkar wife of one of the Senior level Manager Mr. Akhil Goenkar
, rushed to the chambers of Mr. Suresh and complained to him that the
Chief HR Manager has been paying deaf ear to her complaint since the last
six months saying the company would redress the grievances of
employees, but not employees’ family members.
 Mr.Suresh was shocked after reading the grievance lodged by Mrs. Lalitha.
The essence of the grievance is as follows : “Mr. Anil Goenkar has not been
paying attention to family matters ; he is not not caring for the children
and wife since March 2007. Mr. Anil informed his wife over a dispute at the
dining table on 22nd May 2007 that the company has been paying dating
allowance for the wellbeing of the employees and as such, he has been
spending time in various recreation places with lady colleagues of the
company. Hence, his interest in family members as well as family issues
has taken a new turn and they may take a significant shift in the days to
come.
 Mrs. Lalitha met the Chief HR Manager on the following day and lodged
her grievance.
 Mr. Suresh called a meeting of employees of HR department and Senior
Managers on 30th September 2007, to decide on the policy issues of dating
allowances, as well as redressing the grievances of employees’family
members.

24.  Yes the company should redress the
grievances lodged by family members of
employees in view of paradigm shifts in HR
practices in following ways:-
 Under going Counseling sessions where family
members can interact with the HR Manager
as per the issue
 Make necessary changes in the policy as in if
required
 Discussion regarding work-life balance

26.  The issue of dating allowance which is
contrary to the culture of the land can be
settled down only if such allowance policy is
removed from the company’s policy list as in
this policy creates not only
misunderstandings between the employee of
the company and his/her family
members(specially if he/she is married and is
a parent) but also directly or indirectly
increase stress, tension and conflicts and
hence affects the efficiency of that
particular employee.