Mba ii hrm u-4.3 collective bargaining
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This document provides an overview of collective bargaining in the context of an MBA course on human resource management. It defines collective bargaining as a procedure that regulates the terms and conditions of workers through agreements negotiated between worker representatives and employers. The objectives of collective bargaining are to settle disputes around wages and working conditions, protect worker interests, and resolve differences between workers and management through voluntary negotiations. The key aspects of collective bargaining covered include the bargaining process, subjects of negotiation, types of bargaining, and factors that influence effective bargaining.
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Collective bargaining in India
Collective bargaining is a technique where disputes over employment conditions are resolved through negotiation rather than coercion. The Industrial Disputes Act of 1947 aims to achieve social justice through collective bargaining. Outsiders who lead unions often have little knowledge of the industry or workers' issues, making employers reluctant to negotiate with them. While a ban on outsiders could weaken unions, their influence can undermine collective bargaining when unions are politically affiliated rather than prioritizing workers' interests. Reform is needed to reduce political influence and strengthen internal union leadership focused on workers.
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The document discusses understanding employment relations and its emerging trends. It covers several key points:
1) Employment relations is about managing relationships between employees and involves forming work teams, dealing with conflicts, and navigating various relationship stages from forming to adjourning.
2) The employment landscape is changing significantly due to factors like globalization, new industries, and technological changes. This impacts both employers and employees.
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INDUSTRIAL RELATION Unit i - ir
Industrial relations in India have evolved significantly over time. Traditionally, relations were those of master-servant during ancient and medieval times, with craftsmen and workers organizing into guilds called Shrenis. Under British rule, the relationship became one of exploitation, with workers having little power. Post-independence, laws and institutions like tripartite bodies and minimum wage laws were established to protect workers. Globalization in the 1990s has led to new challenges, as traditional IR models struggle to adapt to requirements of competitiveness, flexibility and individual bargaining in the emerging global business scenario.
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The concept of WPM is a broad and complex one. Depending on the socio-political environment and
cultural conditions, the scope and contents of participation change.
International Institute of Labour Studies: WPM is the participation resulting from the practices
which increase the scope for employees’ share of influence in decision-making at different tiers of
organizational hierarchy with concomitant (related) assumption of responsibility.
ILO: Workers’ participation, may broadly be taken to cover all terms of association of workers and
their representatives with the decision-making process, ranging from exchange of information, consultations, decisions and negotiations, to more institutionalized forms such as the presence of workers’ member on management or supervisory boards or even management by workers themselves (as practiced in Yugoslavia).
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• Workers have ideas which can be useful;
• Workers may work more intelligently if they are informed about the reasons for and the
intention of decisions that are taken in a participative atmosphere
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Trade unions are permanent associations of workers or employers formed to secure economic and social benefits for workers. In India, the major phases of trade union development were from 1850-1900, 1900-1946, and post-1947 when four central trade union organizations were functioning. Trade unions have objectives like improving wages and working conditions for workers. They have functions like negotiating for higher pay and better treatment and providing welfare. However, they also face problems like uneven growth, limited membership, multiple competing unions, and financial issues.
Collective bargaining
Collective bargaining is a process of negotiation between employer and employee representatives regarding terms of employment. It aims to reach mutually agreeable conditions through discussion and involves joint decision making between firms and workers. Collective bargaining operates at national, sectoral, and company levels and has importance for employees, employers, and society by promoting industrial peace and harmonious labor relations.
Collective bargaining
The document discusses collective bargaining between unions and management. It covers topics like the collective bargaining process, preparing for negotiations, typical bargaining issues, ways to overcome negotiation breakdowns, ratifying agreements, and administering contracts. Collective bargaining aims to establish a union-management relationship and set rules for issues like wages, hours, and grievance procedures for the duration of the labor contract.
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Collective bargaining in India
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The document discusses understanding employment relations and its emerging trends. It covers several key points:
1) Employment relations is about managing relationships between employees and involves forming work teams, dealing with conflicts, and navigating various relationship stages from forming to adjourning.
2) The employment landscape is changing significantly due to factors like globalization, new industries, and technological changes. This impacts both employers and employees.
3) Government roles are shifting from controllers to facilitators and new actors like consumers and communities are emerging in employment relations. Laws and court rulings are also adapting to changes.
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Industrial relations in India have evolved significantly over time. Traditionally, relations were those of master-servant during ancient and medieval times, with craftsmen and workers organizing into guilds called Shrenis. Under British rule, the relationship became one of exploitation, with workers having little power. Post-independence, laws and institutions like tripartite bodies and minimum wage laws were established to protect workers. Globalization in the 1990s has led to new challenges, as traditional IR models struggle to adapt to requirements of competitiveness, flexibility and individual bargaining in the emerging global business scenario.
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The concept of WPM is a broad and complex one. Depending on the socio-political environment and
cultural conditions, the scope and contents of participation change.
International Institute of Labour Studies: WPM is the participation resulting from the practices
which increase the scope for employees’ share of influence in decision-making at different tiers of
organizational hierarchy with concomitant (related) assumption of responsibility.
ILO: Workers’ participation, may broadly be taken to cover all terms of association of workers and
their representatives with the decision-making process, ranging from exchange of information, consultations, decisions and negotiations, to more institutionalized forms such as the presence of workers’ member on management or supervisory boards or even management by workers themselves (as practiced in Yugoslavia).
The main implications of workers’ participation in management as summarized by ILO:
• Workers have ideas which can be useful;
• Workers may work more intelligently if they are informed about the reasons for and the
intention of decisions that are taken in a participative atmosphere
Trade unions in india
Trade unions are permanent associations of workers or employers formed to secure economic and social benefits for workers. In India, the major phases of trade union development were from 1850-1900, 1900-1946, and post-1947 when four central trade union organizations were functioning. Trade unions have objectives like improving wages and working conditions for workers. They have functions like negotiating for higher pay and better treatment and providing welfare. However, they also face problems like uneven growth, limited membership, multiple competing unions, and financial issues.
Collective bargaining
Collective bargaining is a process of negotiation between employer and employee representatives regarding terms of employment. It aims to reach mutually agreeable conditions through discussion and involves joint decision making between firms and workers. Collective bargaining operates at national, sectoral, and company levels and has importance for employees, employers, and society by promoting industrial peace and harmonious labor relations.
Collective bargaining
The document discusses collective bargaining between unions and management. It covers topics like the collective bargaining process, preparing for negotiations, typical bargaining issues, ways to overcome negotiation breakdowns, ratifying agreements, and administering contracts. Collective bargaining aims to establish a union-management relationship and set rules for issues like wages, hours, and grievance procedures for the duration of the labor contract.
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The document discusses workers' participation in management in India. It defines workers' participation as the involvement of non-managerial employees in organizational decision-making. It outlines various models of participation including works committees, joint management councils, nominating worker directors, and shop councils. The objectives, strategies, reasons for limited success, and measures to improve effectiveness are also summarized.
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- IR describes the relationship between management and employees regarding employment conditions. The growth of large companies changed personal employer-employee relations.
- Trade unions represent workers' interests, while employers' organizations represent managers. The government also plays a role in protecting both parties' interests.
- The ILO works to promote full employment, workers' rights, and good working conditions globally. It is a tripartite organization with government, employer, and employee representatives.
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This document discusses various methods for resolving industrial disputes between employers and employees, including collective bargaining, grievance procedures, conciliation, arbitration, and adjudication. It also defines key related terms like strikes, lockouts, layoffs, and retrenchment. Specifically, it provides 3 sentences on conciliation: Conciliation is a process by which representatives of workers and employers are brought together before a third party to resolve disputes through mutual discussion. The third party may be an individual or group aimed at persuading the parties to reach an agreement. Conciliation officers and boards can be appointed by the government to mediate in industrial disputes.
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- Objectives include enhancing quality of work life, improving the industrial system, and increasing a sense of belonging among employees.
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Collective bargaining is a process of negotiation between employers and employee representatives, such as labor unions, regarding terms of employment. It allows both parties to resolve disputes in a peaceful manner and establish fair wages and working conditions. Key aspects of collective bargaining include preparing for negotiations, discussing proposals and counterproposals, bargaining to reach an agreement, and settling on a final collective bargaining agreement that is put in writing. The goal is to maintain stable labor relations and industrial peace.
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Mba ii hrm u-4.3 collective bargaining
- 1. Course: MBA SEM 2 Subject: Human Resource Management Unit: 4 Collective Bargaining
- 2. Introduction Before the Industrial Revolution, the employer, more or less, enjoyed unquestioned powers on matters relating to wages, working conditions and other matters affecting employees. This collective fighting spirit is at the back of collective bargaining. Collective Bargaining
- 3. Concept Collective bargaining is a procedure by which the terms and conditions of workers are regulated by agreements between their bargaining agents and employers. The basic objective of collective bargaining is to arrive at an agreement on wages and other conditions of employment.
- 4. Features Collective Strength Flexible Voluntary Complementary Continuous Dynamic Power relationship Representation Bipartite process Complex
- 5. Objectives 1. To settle disputes/conflicts relating to wages and working conditions. 2. To protect the interests of workers through collective action. 3. To resolve the differences between workers and management through voluntary negotiations and arrive at a consensus. 4. To avoid third party intervention in matters relating to employment.
- 6. The Substance of Bargaining 1. Wages and working conditions 2. Work norms 3. Incentive payments 4. Job security 5. Changes in technology 6. Work tools, techniques and practices 7. Staff transfers and promotions 8. Grievances 9. Disciplinary matters 10. Health and safety 11. Insurance and benefits 12. Union recognition 13. Union activities/responsibilities 14. Management rights
- 7. Types of Bargaining 1. Conjunctive/distributive/bargaining 2. Cooperative bargaining 3. Productivity bargaining 4. Composite bargaining-equity
- 8. The Process of Collective Bargaining Identification of the problem Collection of date Selection of negotiators Climate of negotiations Bargaining strategy and tactics Formalising the agreement Enforcing the agreement
- 9. Collective Bargaining in India The story of collective bargaining is the story of the rise and growth of trade unionism itself. It had its roots in Great Britain and developed in response to conditions created by the Industrial Revolution. In India, trade unions have come to occupy the centre stage only after 1900. In 1918, Gandhiji as the leader of the Ahmedabad Textile workers advocated the resolution of conflict through collective bargaining agreements. After Independence, with the spread of trade unionism, collective bargaining agreements have become popular.
- 10. Conditions Essential for Effective Bargaining Not all the collective bargaining processes are successful and effective. There are certain prerequisites for an effective collective bargaining process which are as follows: 1. Unanimity among workers 2. Strength of both the parties
- 11. Suggestions for Effective Implementation of Collective Bargaining 1. Unions should be made strong by creating awareness among workers. 2. Interference of political leaders should be avoided. 3. Government should make efforts for the growth of collective bargaining. 4. Management should develop a positive attitude towards unions.
- 12. Recommendations of National Commission on Labour 1. Government intervention in industrial relations, particularly in the settlement of industrial disputes, should be reduced gradually to the minimum possible extent. 2. Trade unions should be strengthened both organisationally and financially by amending the Trade Union Act of 1926 to make registration of unions compulsory. 3. Legal provision may be made either by a separate legislation or by amending an existing enactment. 4. Intensification of worker’s education for building up internal union leadership and making workers more knowledgeable and conscious about their rights and obligations. 5. The idea of one union for one plant or one industry should be popularised and made a reality.
- 13. Units and level of Collective Bargaining • Plant or Establishment level • Local level • Region/Area level • Industry level • National level
- 14. Factors influencing Bargaining Units • Structure of trade union organization • Nature of ownership of Industrial Enterprises • Nature of Industrial Relations laws
- 15. Hurdles to collective Bargaining • Voluntariness in Recognition of Unions • Ineffective procedure for the determination of Reprehensive union • Outside Leadership in Trade Unions • Provision of Adjudication machineries • Restriction on strikes and Lockouts • Comprehensive Coverage of labor laws • Inadequate unionization
- 16. Bibliography • http://www.whatishumanresource.com • http://www.mbaofficial.com • Human Resource and Personnel Management- K. Aswathappa, Tata McGraw Hill