collective bargaining_group 7_august 2010

8/9/2019 Collective Bargaining_group 7_august 2010

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In India, trade unions gained prominencemuch later only after 1900.

In 1918, Mahatma Gandhi - as the leader ofthe Ahmadabad textile workers advocatedthe resolution of conflict through CBagreements.

The Government of that time took steps likesetting up of machinery for negotiations,conciliation and arbitration.

The trade union movement and also CB

agreements became popular after Indianindependence.

Moving from agreements at the plant level,such agreements spread to industries such aschemicals, petroleum, tea, coal, oil andaluminium.


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Collective Bargaining takes place when a number of work-peopleenter into a negotiation as bargaining unit with an employer or group ofemployers with the object of reaching an agreement on the conditionsof employment of the work-people. - Richardson.

The I.L.O. defines collective bargaining:

"As negotiations about working conditions and terms of employmentbetween an employer, or a group of employers, or one or moreemployers' organisations, on the one hand, and one or morerepresentative workers' organisation on the other with a view toreaching agreement."


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Collective

Strength

Flexible

Voluntary

Continuous

Dynamic

Power Relationship

Representation

Bipartite Process


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Respect, confidence, and trust for other parties

Need to be a two-way communication

Both the parties should be strong

Negotiations require good negotiators


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Employers

Society

Employees


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Conjunctive/Descriptive Bargaining

Co-operative Bargaining

Productivity Bargaining

Compositing Bargaining


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Any issue relevant to management and workers. Traditionally,wages and working conditions had always been the primaryfocus areas of CB.

In recent times, CB has extended to a lot many areas, like;

- Work norms- Job security- Changes in technology- Staff transfers and promotions- Health and safety

- Grievances- Insurance and benefits- Union recognition- Work tools, techniques and practices


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CB is a process by which

the terms and condition ofemployment of workersare regulated byagreements between theirbargaining agent andtheir employers.

The process of CB alsouses negotiations to reacha mutual consensus.

Negotiation, on the otherhand, is a process ofresolving conflicts

between two or moreparties wherein both or allmodify their demands toreach a workablecompromise.

While negotiating issues,parties shift their standfrom an ideal position to asettlement point, which ismutually agreed upon.


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NEGOTIATION OFAGREEMENT

IMPLEMENTATION OFAGREEMENT

RENEWAL & REVISIONOF AGREEMENT


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Identifying the problem

Preparing for negotiation

Identifying bargaining issues

Negotiation of agreement

Reaching the agreement

Ratifying the agreement

Administration of the agreement


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Problems with the unions

Problems with the Government

Problems in the legal system

Problems in Management Attitude

Political interference


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A progressive and strong management that is conscious ofits obligations and responsibilities to the various stakeholders.

A truly representative enlightened and strong tradeunion should come into being and should function on strictly

constitutional lines. There should be unanimity between labour and

management on the basic objectives of the organizationand a mutual recognition of their rights and obligations.

When there are several units of the company, there should

be a delegation of authority to the local management. A fact-finding approach and a willingness to use new tools

should be adopted for the solution of industrial problems.

Government intervention in the settlement of industrialdisputes should be reduced gradually to the minimumpossible


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Workers Participation @ SAIL

Problems

- Technological obsolescence

- Redundant workforce

- Excessive regulation


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Brain storming sessions

5 areas of priorities for action.- Improving work culture.- Utilization of installed facilities.- Improving production and productivity.

- Generating profits through cost control.- Improving customer satisfaction.

Cross functional and multi skill training.


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Made committees at different

levels

- Industrial

- Enterprise

- Zonal

- Plant

- Shop

Organized different suggestion schemesprograms


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Retaining and reallocation of redundantemployees

Loss of man days became nil Permanent negotiation committees

20 times increase in number of

suggestions Savings worth Rs. 1300 million


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Market leader in US in automobile industrytill 1980 with market share of 46%.

Entry of Japanese companies , GM beganto face intense competition.

Fortunes were further affected because ofother issues like under-funded pensionliabilities and rising employee healthcarecosts

Market share fell to 25% in 2006. Lossesreported to US $39 billion


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The company put a turnaround plan inplace in 2005

Plan focused on reducing thehealthcare costs in association with UAW(United Auto Workers)

Primary objective was to reduce thecompanys healthcare costs by forminga VEBA


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On November 12, 2007 agreement wasreached between GM and the UAW

As per the agreement, UAWadministered the healthcare expensesfor GM

The deal encouraged GMs progress in

revitalizing their product portfolio,strengthening their brands, reducingstructural cost and growing the businessglobally


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It increases empowerment of employees

It increases trust between both parties

It helps organizations sustain in emergingcompetitive environment

It improves progress of both workers andmanagement partners


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Size doesnt matter!

THANK YOU!

collective bargaining_group 7_august 2010

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