collective bargaining-27th july (2)

7/27/2019 Collective Bargaining-27th July (2)

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Collective Bargaining


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Collective Bargaining Collective Bargaining is a process in which the representatives of a

labour organization & the representatives of business organizationmeet and attempt to negotiate a contract or agreement, which specifiesthe nature of employee-employer union relationship.

Process involving discussions and negotiations

collective group

'bargaining' proposals and counter proposals

to reconcile their conflicting interests

is a flexible approach


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Evolution Of Collective Bargaining

Coined by Sydney and Beatrice Webb

Industrial Revolution Great Britain

The Indian Scenario:

Gandhiji - the leader of the Ahmedabad textile workers

Idea gathered interest only after the Second World War

GOI took steps like setting up of machinery fornegotiations, conciliation and arbitration.


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Collective Bargaining Commonality of interest as a basis for bargaining:

Bargaining would not take place if there was no common interestto bargaining

Parties work together to produce goods and services Together they work for the long term future of the of the company

Bargaining is based on pluralism

Both parties recognise each others right to exist


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Collective Bargaining Sources of conflict

Most important over: wages and salaries

Management has to see to shareholder profits and

workers want more money Productivity needs may force the firm to operate

flexible work practices and the unions might resist this

Companies might want to dismiss inefficient workers

and the union would resist this, demanding job security


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Collective Bargaining Employees might demand shorter working hours,

longer vacation leave and more time off for training

Employees might insist on stricter health and safetycontrols which would be expensive for the company

Employers demand loyalty to the firm whereasemployees see it as the individual right to change jobs

when the opportunity arises


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Types Of Bargaining

Conjunctive/Distributive

Bargaining - zero-sum game; win lose

Co-operative /IntegrativeBargaining - more open tocoming down from their highhorses; win win.


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Levels At Which Collective Bargaining Is

Undertaken

Enterprise Or Plant Level

Industry-Cum-Region wide Agreements

Sectoral Collective Bargaining At National Level


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1. National Level Agreement

Bargaining between one or more

employers/companies/corporations or one or moreemployers association on one side and one or moreunions established at national ,industry,nation,regionor plant level on the other.

E.g. Indian Banks Association : negotiate long termsettlement with bank employees


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2. Industry cum region wide Agreements

Bargaining between one or more

employers/companies/corporations or one or moreemployers association on one side and one or moreunions established at industry,region or plant level onthe other.

3. Firm/plant level agreement

With unions established at plant,locality level


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Collective Bargaining Process

Prepare

Discuss

Propose

Bargain

Agreement


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Legal Framework of Collective

Bargaining Freedom of Association: Article 19(c)

1. Determination of Collective Bargaining Agent i. Secret Ballot

ii. Check off system

iii. Membership verification


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Agreement : Collective agreement is binding onworkers who have signed and not on other unions

Settlement : written agreement between employerand workers arrived during Conciliation proceeding isapplicable to all the present and future workers.

Award : when Agreement and settlement fail.Award(final determination of industrial dispute )given by Arbitration and adjudication-binding on

parties


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2. Unorganized Sector :

CB is rare ,low wages, benefits

3. Unfair labor practices

i. refusal by the employer to bargain collectively in good faith withrecognized trade union

ii. Refusal by a recognized trade union to bargain collectively in good faithwith the employer

iii. Workers and trade unions of workers indulging in coercive activitiesagainst certification of bargaining representative.


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Collective Bargaining Agreement

Written document regarding workingconditions and terms of employment

Legally, a CBA binds only the parties toit.

In India, there are three types ofagreements, namely voluntary agreements,

settlements, and

Consent awards.

Procedural ( interpretation andimplementation of agreements&resolving conflicts) agreements or

substantive (substance ofagreement) agreements


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Contents of Collective Bargaining

Agreement The date of commencement of the

agreement

Its duration

A definition of terms

The procedure for settling disputesregarding interpretation, as well as other

disputes. The consequences in the event of

breaches of the agreement

As regards wages, exactly how conversionof employees' wages to the new scales is


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Conditions For Successful Collective

Bargaining

Trade Union Recognition

Knowledge , awareness and skills of workers

Support of Labour AdministrationAuthorities

Good Faith : transparency

Proper Internal Communication


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Why has collective bargaining

not flourished in India Excessive dependent on compulsory adjudication for

settlement of industrial dispute

Reduction in the area of Collective Bargaining

Weak trade union movement


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Suggestions to make CB more

effective Compulsory adjudication should be used as last resort

TUs should be strengthened

Workers education should be intensified Idea of one union for one plant

Legal provisions to be made


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Negotiation techniques and

skills Negotiation is a process in which two or more parties

who have common and conflicting interests cometogether and talk with a view to reaching anagreement.

Purposeful persuasion or constructive compromise


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Stages of negotiation PreparationCollecting info, setting objectives, Establishing priorities , Assessing other party

and its case, noting details

Discussion

BargainingWillingness of parties to compromise , focus on problem rather than person

Agreement


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Negotiation points Focus on interest ,not take positions

Be creative

Focus on problem not the person Invent multiple solutions

Expand the pie

Discuss more..


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PERCEPTIONS ON COLLECTIVE

BARGAINING CB essentially means negotiations between the labour and

management CB should just not stop at the negotiations but also go on to be

implemented; otherwise the entire process of CB will be

rendered futile. It is mostly the formal sector that benefits out of the CB process. The parties have to adopt a flexible attitude throughout the

process of bargaining It is based on give and take approach and take or leave

approach. Once both the parties know what they want, negotiations

become easier and better. Obviously all the above mentioned conditions are required

successful for CB but the most essential among them is thegood faith


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CB agreement is a written format and it is essentialbecause that acts as a legal framework and as a guide totheir relationships on certain matters for a specified

period of time. Collective bargaining is not highly practiced in India,

several factors are responsible for this: Multiple unions Defective laws

Mediation by political leaders Organisations understand the importance of human

resources hence they take care of the workers well enoughso that collective bargaining is not highly required. It isalso because most MNCs are setting up their plants in

India, because of which compensation levels have gone upso also the terms of employment has become favourable inmost parts of the country.

It is necessary to create a win win situation for both theparties, if this is not done, the process of CB just acts as atemporary solution. Also, if CB is used as a temporarysolution, it would infact create an environment of distrust.


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Honda Motorcycles and Scooters IndiaLTD

By Group 7


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HMCL

Producer of scooters & motorcycles

The Honda way

Good HR policies


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P

E

ST

L

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Companys management lobbying with governmentSupport of union leaders affiliated to AITUCWages raise disputeArbitration by Haryana Chief Minister

Media coverage of the labor unrestLanguage and cultural barriers between Indians and Japanese

Government regulations on labor wages

Post Fordist production system

Police intervention

Gheraoing of management by workersNon compliance of HR policies by Indian management


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UNPOPULAR HR POLICIES


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UNPOPULAR HR POLICIES

Movement restrictions

Overstay policy

Reluctance in granting leave

Strict in offering flexible working hours

ISSUE WITH WORKERS


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Gheraoing of management by workers

Unreasonable demands

Slow-down production & refuse overtime

ISSUE WITH WORKERS

AND SITUATION GOT WORSE


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AND SITUATION GOT WORSE...

Workers refused hike in monthly pay

Management against union

Intervention by AITUC chief and MP

Conciliation failure

Management denied entry to workers

Stone throwing by masked men

Police brutality against qorkers

Truce after arbitration by Haryana CM


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POST VIOLENCE SCENARIO


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POST VIOLENCE SCENARIO

More cooperation between employees and mgt

Increased Monetary Benefits

Monitoring of Management- employee relations

Scrapping of overtime

Recognition of employees by management

Inclusion of workers families

Feeling of ownership by workers

Celebration of achievements

CEOS CONCERN


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CEO S CONCERN

Undo the bitter feelings amongst workers. - Change in culture

Restore companys image

Decision whether to expand production capacity

Maintain and Enhance productivity

ROAD AHEAD FOR HONDA


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ROAD AHEAD FOR HONDA

TIME FOR CULTURAL CHANGE!!

Culture needs to change from control to collaboration

Better trained managers

No NIGGYSOB

CREATING HIGH PERFORMANCE TEAMS


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Need to make small teams

A common purpose

A common goal



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Common working approach

Mutual accountability

T i h l kill

collective bargaining-27th july (2)

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