Collective bargaining BY VARUN CHANDOK

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Collective bargaining BY VARUN CHANDOK

  1. 1. VARUNCHANDOK
  2. 2. What isCollectiveBargaining?What isCollectiveBargaining?
  3. 3. Definition• Collective bargaining is a type of negotiation used by employeesto work with their employers.• During a collective bargaining period, workers representativesapproach the employer and attempt to negotiate a contractwhich both sides can agree with.• Typical issues covered in a labor contract are hours, wages,benefits, working conditions, and the rules of the workplace.• Once both sides have reached a contract that they findagreeable, it is signed and kept in place for a set period of time,most commonly three years.• The final contract is called a collectivebargaining agreement, to reflect the factthat it is the result of a collectivebargaining effort.• The parties often refer to the result ofnegotiation as a Collective BargainingAgreement (CBA) / as a CollectiveEmployment Agreement (CEA).
  4. 4. ILO Convention 98• "Voluntary negotiation betweenemployers or employersorganizations and workersorganizations, with a view to theregulation of terms and conditions ofemployment by collectiveagreements."
  5. 5. • ESSENTIAL ELEMENTSLegal. Collective bargaining is a process of negotiating an• agreement.Economic. Its contents specify the terms and conditions of• employment (e.g., salary/wage increase, benefits, etc.).Political. The agreement is a product of a negotiationbetween labor• and management.Moral. It involves a system of shared responsibility and decision-making.
  6. 6. What it does?It promotes the rights and ideals of labour.• Right to life. Collective bargaining is a means of improving workers’standard of living through just compensation and humane workingconditions.• Right to work. It guarantees security of tenure and employeespromotion on the basis of seniority.• Right to equity. It defines the right and responsibilities of labor andmanagement.• Right to participate. It affords participation to labor in running anenterprise through shared decision-making, control,management, and ownership of the means of production.• And Ideal• Industrial peace. It includes machinery for settling grievance or labordisputes on employment –related issues.
  7. 7. Features:It is a collective process.The representatives of both workers andmanagement participate in bargaining.II. It is a continuous process. It establishesregular and stable relationship between theparties involved. It involves not only thenegotiation of the contract, but also theadministration of the contract.III. It is a flexible and dynamic process. Theparties have to adopt a flexible attitudethrough the process of bargaining.IV. It is a method of partnership of workers inmanagementFeatures:It is a collective process.The representatives of both workers andmanagement participate in bargaining.II. It is a continuous process. It establishesregular and stable relationship between theparties involved. It involves not only thenegotiation of the contract, but also theadministration of the contract.III. It is a flexible and dynamic process. Theparties have to adopt a flexible attitudethrough the process of bargaining.IV. It is a method of partnership of workers inmanagement
  8. 8. WHAT ISSUES ARE DISCUSSED?Two kinds of issues are discussed:Economic Issues1. Check-off (payment of union fees).2. Working days and hours3. Salary increases / allowances /bonuses / profit-sharing4. Leaves5. Overtime / holiday/ shift premiums6. Employee welfare (e.g.,hospitalizationbenefits, dental benefits, etc.)
  9. 9.  Non-Economic Issues:1. Union recognition / coverage2. Definition of employees category3. Union security4. Rights and responsibilities of parties5. Security of tenure6. Seniority7. Grievance machinery8. Arbitration9. Job evaluation and wage and salaryadministration10.Employee services (e.g., workers’education, jobenrichment, etc.).11.No strike / no lockout
  10. 10. Importance to societyCollective bargaining leads to industrialpeace in the country.It results in establishment of aharmonious industrial climate whichsupports, which helps the pace of anation’s efforts towards economic andsocial development since theobstacles to such a development canbe reduced considerably.The discrimination and exploitation ofworkers is constantly being checked.It provides a method or the regulationof the conditions of employment ofthose who are directly concernedabout them.Importance to societyCollective bargaining leads to industrialpeace in the country.It results in establishment of aharmonious industrial climate whichsupports, which helps the pace of anation’s efforts towards economic andsocial development since theobstacles to such a development canbe reduced considerably.The discrimination and exploitation ofworkers is constantly being checked.It provides a method or the regulationof the conditions of employment ofthose who are directly concernedabout them.
  11. 11. Importance to employersIt becomes easier for the management to resolveissues at the bargaining level rather than takingup complaints of individual workers.Collective bargaining tends to promote a sense ofjob security among employees and thereby tendsto reduce the cost of labor turnover tomanagement.Collective bargaining opens up the channel ofcommunication between the workers and themanagement and increases worker participationin decision making.Collective bargaining plays a vital role in settlingand preventing industrial disputes.Importance to employersIt becomes easier for the management to resolveissues at the bargaining level rather than takingup complaints of individual workers.Collective bargaining tends to promote a sense ofjob security among employees and thereby tendsto reduce the cost of labor turnover tomanagement.Collective bargaining opens up the channel ofcommunication between the workers and themanagement and increases worker participationin decision making.Collective bargaining plays a vital role in settlingand preventing industrial disputes.
  12. 12. Importance to employeesCollective bargaining develops a sense of self respectand responsibility among the employees.It increases the strength of the workforce, thereby,increasing their bargaining capacity as a group.Collective bargaining increases the morale andproductivity of employees.It restricts management’s freedom for arbitraryaction against the employees..The workers feel motivated as they can approach themanagement on various matters and bargain forhigher benefits.It helps in securing a prompt and fair settlement ofgrievances.It provides a flexible means for the adjustment ofwages and employment conditions to economic andtechnological changes in the industry, as a resultof which the chances for conflicts are reduced.Importance to employeesCollective bargaining develops a sense of self respectand responsibility among the employees.It increases the strength of the workforce, thereby,increasing their bargaining capacity as a group.Collective bargaining increases the morale andproductivity of employees.It restricts management’s freedom for arbitraryaction against the employees..The workers feel motivated as they can approach themanagement on various matters and bargain forhigher benefits.It helps in securing a prompt and fair settlement ofgrievances.It provides a flexible means for the adjustment ofwages and employment conditions to economic andtechnological changes in the industry, as a resultof which the chances for conflicts are reduced.Impasse
  13. 13. Collective BargainingProcess• In many companies, agreements have a fixedtime scale and a collective bargaining processwill review the procedural agreement whennegotiations take place on pay and conditionsof employment.
  14. 14. (1) Prepare• This phase involves composition of a negotiationteam.• The negotiation team should consist ofrepresentatives of both the parties with adequateknowledge and skills for negotiation.• In this phase both the employer’s representativesand the union examine their own situation in orderto develop the issues that they believe will be mostimportant.• A correct understanding of the mainissues to be covered and intimateknowledge of operations, workingconditions production norms andother relevant conditions isrequired.
  15. 15. (2) Discuss• The parties decide theground rules that will guidethe negotiations.• An environment of mutualtrust and understanding isalso created so that thecollective bargainingagreement would bereached.
  16. 16. (3) Propose• It involves the initial openingstatements and the possible optionsthat exist to resolve them. In a word,this phase could be described as‘brainstorming’. The exchange ofmessages takes place and opinion ofboth the parties is sought.
  17. 17. (4) Bargain• Negotiations are easy if a problemsolving attitude is adopted.• This stage comprises the time when‘what ifs’ and ‘supposals’ are set forthand the drafting of agreements takeplace.
  18. 18. (5)Settlement• Once the parties are through with thebargaining process, a consensualagreement is reached upon wherein boththe parties agree to a common decisionregarding the problem or the issue.• This stage is described as consisting ofeffective joint implementation of theagreement through shared visions,strategic planning and negotiatedchange.
  19. 19. HOW CAN MEMBERS HELP? Preparation stage:• 1. Study the significant labor laws and relatedlegislations.• 2. Assist in gathering data by administeringquestionnaires• and interview schedules and by researching oncost of living, industry practices, etc.• 3. Help collate data.• 4. Be realistic in costing your demands.Consider not only to your benefit but also thecurrent position of your company.Contd…
  20. 20. Continued5. Understand your union’s collectivebargaining proposals.6. Help in disseminating informationand in explaining your union’scollective bargaining proposals toother members.7. Participate in all collectivebargaining-related meetings or• activities, particularly in theapproval of proposals.
  21. 21. Negotiation stage1. Be supportive of your bargainingrepresentatives.2. Keep yourselves apprised on the progress of thenegotiation.3. Be present in consultation meetings called byyour union during the negotiation4. In case of a deadlock and the consequentarbitration that follows, be cooperative with theconciliators or arbitrators.5. Let facts and realities, not emotions, dictateyour actions during a strike. Consider what youwill gain and what you will eventually lose in theprocess
  22. 22. Cont…6. Be flexible. Your demands may bemodified without necessarily defeatingthe objectives of your union.7. Make sure that you participate in theratification of your CBA.8. Do not blame your bargainingrepresentatives if the CBA does notcontain all the proposals that youpresented. A CBA, after all, a productof collective effort. You are equallyresponsible for the agreement as muchas your representatives.
  23. 23. Implementation1. Study your CBA. Make sure that yourunion and the management agrees on acommon understanding of theagreement.2. Monitor the implementation of theCBA.3. Abide by the provisions of the CBA.4. Should a CBA violation occur, exhaustthe grievance machinery to settle theconflict within the company.
  24. 24. Levels of collectivebargaining
  25. 25. Economy-wide (national)• Bargaining is a bipartite ortripartite form of negotiationbetween union confederations,central employer associationsand government agencies.• It aims at providing a floorfor lower-level bargaining onthe terms of employment,often taking into accountmacroeconomic goals.
  26. 26. (b) Sectoral bargaining:• It aims at the standardization of the terms ofemployment in one industry, includes a range ofbargaining patterns.• Bargaining may be either broadly or narrowlydefined in terms of the industrial activitiescovered and may be either split up according toterritorial subunits or conducted nationally.• (c) Enterprise Level:• It involves the company and/orestablishment.• It emphasizes the point that bargaininglevels need not be mutually exclusive.
  27. 27. Problems of Collective BargainingI. Due to the dominance of outsiders in trade unionism inthe country, there is multiplicity of unions which areweak and unstable, and do not represent majority ofthe employees. Moreover, there are inter-unionrivalries, which further hinder the process ofcollective bargaining between the labor and themanagement.II. Trade unions are having political affiliations, theycontinue to be dominated by politicians, who use theunions and their members to meet their political ends.III. There is a lack of definite procedure to determinewhich union is to be recognized to serve as abargaining agent on behalf of the workersIV. There has been very close association between thetrade unions and political parties. As a result, tradeunion movement has leaned towards politicalorientations rather than collective bargaining.Problems of Collective BargainingI. Due to the dominance of outsiders in trade unionism inthe country, there is multiplicity of unions which areweak and unstable, and do not represent majority ofthe employees. Moreover, there are inter-unionrivalries, which further hinder the process ofcollective bargaining between the labor and themanagement.II. Trade unions are having political affiliations, theycontinue to be dominated by politicians, who use theunions and their members to meet their political ends.III. There is a lack of definite procedure to determinewhich union is to be recognized to serve as abargaining agent on behalf of the workersIV. There has been very close association between thetrade unions and political parties. As a result, tradeunion movement has leaned towards politicalorientations rather than collective bargaining.

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