COLLECTIVE BARGAINING

STEPS IN BARGAINING RELATIONSHIP: RECOGNITION OF THE BARGAINING AGENTS: organization in which there is single union , that union is

generally granted recognition to represent the workers

In case if there is more than one union certain criteria is such as :

• Selection of the representatives union by secret ballot• Selection through verification of members by

government agency• Bargaining with a joint committee of all major unions

DEVELOPING A BARGAINING RELATIONSHIP

• Bargaining with negotiation committee in which different union is represented

• Bargaining with a negotiation committee which consist of elected representatives of every department.

• LEVEL OF BARGAINING:It is done at all the levels of the

enterprise & at all the levels of entire industry

1. At the national level2. At the level of industry at particular

region(i.e. regional industrial level).

• SCOPE & COVERAGE OF COLLECTIVE BARGAINING:

Though in many organization bargaining is struck only on specific issues like wage increase, bonus, seniority, promotion, yet it is considered as advantageous , both for management & the union, to cover as many issues of interest to both parties as possible

PROCESS OF NEGOTIATION DURING BARGAINING

There are two stages in collective bargaining: The negotiation stage The stage of contract administration

A) NEGOTIATION STAGEAt the negotiation stage, certain

proposals are put forward which explore the possibilities of their acceptance and pave the way to mutually agreed terms after careful deliberation and consideration.The negotiation stage involves three steps:• Preparation for negotiation

Negotiation may commence at the instance of either party-of either labour or of management.

• Negotiation Technique or ProcedureThe negotiations may be

undertaken by representative of each party or by a committee or by line or staff personnel.

The following procedure should be adopted in negotiationFor Union and Management:a) Be friendly in negotiation. b) Be willing to listen.c) Give everyone an opportunity to state his

position and point of view.d) Know something about the personal history

of the other parties representatives.e) Always bear in mind the fact that you have

to do what is right and fair.

f) Both parties should strive to maintain an objective approach to a problem or grievance.g) Help to define the problem and suggest a solution.i) If facts disclose that there is a need for doing

more than just solving the immediate problem; go as far as justified in the circumstances.

j) Define each issue clearly and unambiguously, and discuss it in the light of all the available facts.k) Avoid the insertion of specific regulations or details in the contract to ensure greater

flexibility.l) Search for the correct solution at all times.m) Keep the membership of the conference as

small as possible.n) Avoid sharp practices.

o) The length of a session should be determined by the generates among the members at the conference table.p) Committee of employees present during the negotiation is advantageous and practical if the bargaining unit is a single establishment.q) The terms agreed should be written and the parties should sign the document.s) Party should respect the rights of the public.

For the managementa) The mangement must make sure that the

labour leaders negotiate with the representatives of the workers.

b) Lawyers should not be used as negotiatorsc) Contacts should not be limit with the union

• Follow –up ActionThe agreement should be printed and

circulated among all the employees so that they know exactly what has been agreed upon between the management and their representatives.

B) Contract AdministrationWhen the process of negotiation has

been completed, it is time to sign the contract, the terms of which must be sincerely observed by both the parties.

Collective Bargaining , In India• In India ,collective bargaining was

first introduced in 1952•  India has ratified 39 International Labour Organisation (ILO) conventions of which 37 are in force. Of the ILO’s eight fundamental conventions, India has ratified four – Forced Labour 1930, Abolition of Forced Labour 1957, Equal Remuneration 1951, and Discrimination (employment and occupation) 1958.

• According the data of Government of India on strikes and lockouts (Indian Labour Statistics 2010), causal factor of 34.8 percent cases of industrial disputes is recorded as indiscipline. 22 percent cases of industrial disputes are around demands for wages and allowances (in many cases demanding only minimum wages fixed by the government).

• Chart

• Trade Union Act of India provides right to association only with a limited scope ad limited coverage. The Trade Union Act 1926 was amended in 2001 and after the amendment it became more difficult to form the trade unions.

• In the Act of 1926, only seven members were required to register a trade union, but after amendment at least 10% or 100, whichever is less, subject to a minimum of 7 workmen engaged or employed in the establishment are required to be the members of the union before its registration.

• Collective bargaining is limited with in the scope provided in Industrial Disputes Act 1947.

In 2009-10, most of the well known workers struggles were on the issue of formation or for recognition of the trade union for collective bargaining,. Some of the examples are:

Hyundai Workers Struggle for Recognition of the Union, Nokia Workers Struggle for Wage Hike and Against Victimization, MRF Workers Struggle for Recognition of Union, Pricol Workers Struggle for Recognition of Union, Graziano Workers struggle for Unionization, The Case of Trade Union Repression in Nestle, Rico Auto Workers Struggle for Unionization and Sunbeam Workers Struggle for Democratisation of the union.

Police repression against Hyundai workers in Tamil nadu

• On June 8, 2010, police entered the Hyundai plant at the behest of the South Korean company’s management

• The workers of Hyundai have been fighting militantly for the recognition of their union, the Hyundai Motor India Employees Union (HMEIU). In addition, they have been fighting for the reinstatement of 67 workers fired as the result of an earlier strike over the same issue.

• Fearing the action would spread, the South Korean-based automaker quickly moved to shut down both of the assembly plants it operates in Sriperumbudur. According to Hyundai management, the shutdown was costing it the production of 1,200 cars, valued at $14 million, per day.

• Declaring the workers’ action illegal, Hyundai turned to the DMK government of Tamil Nadu for help. With the prompt police repression, the Tamilnadu government has sought to reassure Hyundai, the state’s largest foreign investor,

• With the state government’s backing, Hyundai resumed production on June 9, using apprentices and other non-permanent staff.

Recent trends of collective bargaining

The bargaining strategy of Indian trade union has undergone a gradual change. The discussion on the bargaining table no more centre's rounds “ traditional issues” like wages , employment condition etc. But on “ non-traditional issues” like additional and better welfare facilities. It is because:

• Economic needs are satisfied• With the entry of MNCs in India , standard has

improved in workforce.• The employer are willing to fulfill demands.

A few common items that have become part and parcel of collective bargaining agenda of industries are:

• House rent allowance(H.R.A.) On the recommendation of the fourth

pay commission , all the government employees are getting fixed HRA on the basis of category of city where they reside

• Leave travel concession (L.T.C.) looking to the motivational impetus of this

practice it too has been adopted in most private undertakings . Details of this benefits are decided at the collective bargaining table.

• Educational allowance there is a special allowance given for the

children of the employee. This allowance covers the cost of tution fee , books, uniforms etc. if these are not provided employees can bargain over it.

• New Wave of Labour Movement for Unionisation

A new wave of workers struggle for unionization .

The workers are realizing by their own experiences that they can not change their fate without organizing themselves in a trade union.

In many cases the workers do not get even the legal benefits like minimum wages, premium rate of overtime and holidays and casual leaves.

COLLECTIVE BARGAINING AGREEMENTS AT DIFFERENT LEVELS

In India collective bargaining agreement have been conducted at three level

At plant levelIndustry levelNational level

1) At plant level : A collective agreement at plant is reached only for the plant for which it has been drafted ,and its scope and extent are limited only to that particular unit or undertaking .it contains provision for a quick and easy solution

Agreement between Tata iron and steel company

The company recognizes the Tata workers union as the sole bargaining agent of the employees at Jamshedpur

The union recognized the right of the company to introduce new improved equipment and methods of manufacture

The union recognized the right of the company to hire ,transfer , promote or discipline of employee

The company assures the union that there shall be no retrenchment of existing employees

The company agrees that the amount dearness allowance will be included in the wages of employees at time of the calculation of gratuity to be paid to them

At industry level : The best example of an industry level agreement is offered by

textile industry of Bombay and AhmadabadThe agreement between the Ahmadabad millowners association and

theAhmadabad textile labour association ,which were signed on 27th June

1955Laid down the procedure to be followed for the grant of bonus and

voluntarysettlement of industrial disputes It was agreed between the parties that the bonus would be payable

only out of an “available surplus or profit” If there was any difference of opinion between the two association The second agreement provided that all future industrial dispute

between the member of the two association would be settle by mutual negotiation

When ever there was an industrial dispute which had not been settle by mutual would select an umpire out of the panel or from among outsiders

At National level

The agreement at the national level are generally bipartite agreement and are finalized at conferences of labour and management convened by government of India

The Delhi agreement of 7th February 1951 and the bonus agreement for plantation workers of January 1956 are example of such bipartite agreement

DELHI AGREEMENT WAS CONCLUDED AT A CONFERENCE OF THE REPRESENTATIVE OF LABOUR AND MANAGEMENT AND RELEATED TO RATIONALISATION AND ALLIED MATTERS . IT WAS AGREED AT THIS CONFERENCE THAT :

Standardized work load

No break in their service

Gratuities

Retrenchment

Efficient use of labour

Incentives in the form of higher wages

HARSHITHAHEMAGAURIDIVYA