Collective Bardgin

8/10/2019 Collective Bardgin

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way ascraft unions. Occupational unions mainly exist in the white-collar area: for teachers,

civilservants, police, bank employees and so on. Many Irish occupational unions are

structuredalong the lines of grade or type of staff: for example, membership of civil service

unions ishighly structured according to grade, and the four teaching unions respectively

representprimary, secondary, vocational and university teachers. Occupational unions also exist

forworkers in the health services, but these are more commonly referred to as

professionalunions.Professional unions : Unions whose membership is restricted to members of

the same orsimilar professional areas. Professional unions are thus another form of craft union,

butmembers of these unions would regard themselves as being of a higher status. Examples

ofprofessional unions are the National Union of Journalists and unions representing

healthprofessionals, such as those for doctors or nurses, and teaching unions. Most health

unionsare not affiliated to the ICTU, with the exception of the Irish Nurses Organisation

whichaffiliated in 1990.Vertical union : A union which recruits vertically through grades; in other

words, workersfrom the lowest "shop-floor" grade up to management are recruited. Many

professional

4. unions are vertical: for example, those representing nurses and teachers, among others.

Thedifficulty with vertical unions is the potential they contain for conflict between the

grades,which may be manifested in different views on what union policy should be in a

particulararea, or even in cases where the management structure means that the workers in

dispute andthe managers against whom the dispute is taken are in the same union.White-collar

union : A union which recruits primarily whitecollar workers, in other words,non-manual

workers. Whitecollar unions represent general clerical workers and workers fromthe services

sector, including financial services. The main expansion in trade unionmembership since the

1960s has been in this area. The largest white-collar union is the MSF,although the general

unions have a large proportion of white-collar workers in membership,and trade unionsrepresenting clerical grades in the civil service and local government mayalso be classed as

whitecollar.COLLECTIVE BARGAININGCollective BargainingUnder a collective bargaining system,

union and management negotiate with each other todevelop the work rules.The performance of

the mutual obligation of the employer and the representative of theemployees to meet at

reasonable times and confer in good faith with respect to wages, hours,and other terms and

conditions of employment, or the negotiation of an agreement, or anyquestion arising there

under, and the execution of a written contract incorporating anyagreement reached if

requested by either party; such obligation does not compel either partyto agree to a proposal or

require the making of a concession.Labor Management Relations and Collective

BargainingForms of Bargaining Structures AND Union/ Management Relationships--

Thebargainingstructure can affect the conduct of collective bargaining. The four major

structures are onecompany dealing with a single union, several companies dealing with a single

union, severalunionsdealing with a single company, and several companies dealing with several

unions. Types ofunion/management relations that may exist in an organization are conflict,

armed truce,powerbargaining, accommodation, cooperation, and collusion.The Collective

Bargaining Process--Both external and internal environmental factors caninfluence the process.
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bargaining issue in the near future.CONSEQUENCES OF NON AGREEMENT BETWEEN MNGT &

TRADE UNIONSThere are times when a unionbelieves that it must exert extreme pressure on

management to agree to its bargainingdemands.Strikes and boycotts are the primary means

that the union may use to overcome breakdownsinnegotiations. 1. Strikes: When union

members refuse to work in order to exert pressure on managementin negotiations. 2. Boycotts:

An agreement by union members to refuse to use or buy the firms products.The practice of a

union attempting to encourage third parties (suppliers and customers) tostop doing business

with the firm is a secondary boycott.Managements Strategies For Overcoming Negotiation

Breakdowns--One form of actionthat is somewhat analogous to a strike is called a lockout.

Management keeps employees outof theworkplace and may run the operation with

management personnel and/or temporaryreplacements.The employees are unable to work and

do not get paid.a. Ratifying The Agreement

7. In the vast majority of collective bargaining encounters, the parties reach agreement

withoutexperiencing severe breakdowns in negotiations or resorting to disruptive actions.

Typically,this is accomplished before the current agreement expires. After the negotiators havereacheda tentative agreement on all topics negotiated, they will prepare a written agreement

completewith the effective and termination dates. However, the approval process can be more

difficultfor the union. Until it has received approval by a majority of members voting in a

ratificationelection, the proposed agreement is not final. Union members may reject the

proposedagreement, and new negotiations must begin.b. Administration Of The AgreementThe

larger and perhaps more important part of collective bargaining is the administration ofthe

agreement, which is seldom viewed by the public. The agreement establishes the union-

management relationship for the duration of the contractTRADE UNION IN INDIA: HISTORY &

CURRENT SCENERIOThe trade unionism in India developed quite slowly as compared to the

western nations.Indian trade union movement can be divided into three phases.The first phase(1850 to1900)During this phase the inception of trade unions took place. During this period, the

workingand living conditions of the labor were poor and their working hours were long.

Capitalistswere only interested in their productivity and profitability. In addition, the wages

were alsolow and general economic conditions were poor in industries. In order to regulate

theworking hours and other service conditions of the Indian textile laborers, the Indian

FactoriesAct was enacted in 1881. As a result, employment of child labor was prohibited.The

growth of trade union movement was slow in this phase and later on the Indian FactoryAct of

1881 was amended in 1891. Many strikes took place in the two decades following1880 in all

industrial cities. These strikes taught workers to understand the power of unitedaction even

though there was no union in real terms. Small associations like Bombay Mill-Hands Association

came up by this time.The second phase (1900 to 1946)This phase was characterized by the

development of organized trade unions and politicalmovements of the working class. Between

1918 and 1923, many unions came into existencein the country. At Ahmedabad, under the

guidance of Mahatma Gandhi, occupational unionslike spinners unions and weavers unions

were formed. A strike was launched by theseunions under the leadership of Mahatma Gandhi

who turned it into a satyagrah. These unionsfederated into industrial union known as Textile
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Labor Association in 1920.In 1920, the FirstNational Trade union organization (The All India

Trade Union Congress (AITUC)) wasestablished. Many of the leaders of this organization were

leaders of the national Movement.In 1926, Trade union law came up with the efforts of Mr. N N

Joshi that became operativefrom 1927. During 1928, All India Trade Union Federation (AITUF)

was formed.The third phase began with the emergence of independent India (in 1947). The

partition ofcountry affected the trade union movement particularly Bengal and Punjab. By 1949,

fourcentral trade union organizations were functioning in the country: 1. The All India Trade

Union Congress,

8. 2. The Indian National Trade Union Congress, 3. The Hindu Mazdoor Sangh, and 4. The United

Trade Union CongressThe working class movement was also politicized along the lines of

political parties. Forinstance Indian national trade Union Congress (INTUC) is the trade union

arm of theCongress Party. The AITUC is the trade union arm of the Communist Party of India.

Besidesworkers, white-collar employees, supervisors and managers are also organized by the

tradeunions, as for example in the Banking, Insurance and Petroleum industries.Trade unions in

IndiaThe Indian workforce consists of 430 million workers, growing 2% annually. The Indianlabormarkets consist of three sectors: 1. The rural workers, who constitute about 60 per cent of the

workforce. 2. Organized sector, which employs 8 per cent of workforce, and 3. The urban

informal sector (which includes the growing software industry and other services, not included

in the formal sector) which constitutes the rest 32 per cent of the workforce.At present there

are twelve Central Trade Union Organizations in India: 1. All India Trade Union Congress (AITUC)

2. Bharatiya Mazdoor Sangh (BMS) 3. Centre of Indian Trade Unions (CITU) 4. Hind Mazdoor

Kisan Panchayat (HMKP) 5. Hind Mazdoor Sabha (HMS) 6. Indian Federation of Free Trade

Unions (IFFTU) 7. Indian National Trade Union Congress (INTUC) 8. National Front of Indian

Trade Unions (NFITU) 9. National Labor Organization (NLO) 10. Trade Unions Co-ordination

Centre (TUCC) 11. United Trade Union Congress (UTUC) and 12. United Trade Union Congress -Lenin Sarani (UTUC - LS)IMPORTANCE OF TRADE UNIONSReduction in Industrial DisputesGood

industrial relations reduce the industrial

9. disputes. Disputes are reflections of the failure of basic human urges or motivations

tosecureadequate satisfaction or expression which are fully cured by good industrialrelations.

Strikes,lockouts, go-slow tactics, gherao and grievances are some of thereflections of

industrialunrest which do not spring up in an atmosphere of industrial peace. It helps promoting

co-operation and increasing production.High moraleGood industrial relations improve the

morale of the employees. Employees work with great zeal with the feeling in mind that the

interest of employerandemployees is one and the same, i.e. to increase production. Everyworker feels that he isaco-owner of the gains of industry. The employer in his turn must realize

that the gainsof industry are not for him along but they should be shared equally and generously

withhisworkers. In other words, complete unity of thought and action is the main

achievementof industrial peace. It increases the place of workers in the society and their ego is

satisfiedMental RevolutionThe main object of industrial relation is a complete mental

revolution of workers and employees. The industrial peace lies ultimately in
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atransformedoutlook on the part of both. It is the business of leadership in the ranks of workers,

employeesand Government to work out a new relationship in consonance witha spirit of

truedemocracy. Both should think themselves as partners of the industry andthe role of

workersin such a partnership should be recognized. On the other hand,workers must

recognizeemployers authority. It will naturally have impact on production because they

recognize theinterest of each other.Reduced WastageGood industrial relations are

maintained on the basis of cooperationand recognition of each other. It will help increase

production. Wastages of man, material andmachines are reduced to the minimum and thus

national interest is protected.OBJECTIVES OF TRADE UNION To establish and promote the

growth of an industrial democracy based on labor partnershipin the sharing of profits and of

managerial decisions, so that banindividuals personality maygrow its full stature for the benefit

of the industry andof the country as well. To eliminate or minimize the number of strikes,

lockouts and gheraos by providingreasonable wages, improved living and working conditions,

said fringe benefits.To improve the economic conditions of workers in the existing state of

ndustrial anagementsand political government.Socialization of industries by making the state

itself a major employerVesting of a proprietary interest of the workers in the industries in

which they areemployed.WHY TO JOIN TRADE UNIONThe important forces that make the

employees join a union are as follows:

10. 1.Greater Bargaining PowerThe individual employee possesses very little bargaining power

as compared to that of hisemployer. If he is not satisfied with the wage and other conditions of

employment, hecanleave the job. It is not practicable to continually resign from one job after

another when he isdissatisfied. This imposes a great financial and emotional burden upon

theworker. The bettercourse for him is to join a union that can take concerted action againstthe

employer. Thethreat or actuality of a strike by a union is a powerful tool that oftencauses the

employer toaccept the demands of the workers for better conditions of employment.2.MinimizeDiscriminationThe decisions regarding pay, work, transfer, promotion, etc. are highly subjective

innature.The personal relationships existing between the supervisor and each of

hissubordinates mayinfluence the management. Thus, there are chances of favoritisms

anddiscriminations. A tradeunion can compel the management to formulate personnel policies

that press for equality oftreatment to the workers. All the labor decisions of themanagement

are under close scrutinyof the labor union. This has the effect of minimizing favoritism and

discrimination.3.Sense of SecurityThe employees may join the unions because of their belief

that it is an effective way tosecureadequate protection from various types of hazards and

income insecurity such asaccident,injury, illness, unemployment, etc. The trade union secure

retirement benefits of the workersand compel the management to invest in welfare services for

the benefit of the workers.4.Sense of ParticipationThe employees can participate in

management of matters affecting their interests only if theyjoin trade unions. They can

influence the decisions that are taken as a result of collectivebargaining between the union and

the management.5.Sense of BelongingnessMany employees join a union because their co-

workers are the members of the union.Attimes, an employee joins a union under group

pressure; if he does not, he often has averydifficult time at work. On the other hand, those who
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are members of a union feel thattheygain respect in the eyes of their fellow workers. They can

also discuss their problemwiththe trade union leaders.6.Platform for self expressionThe desire

for self-expression is a fundamental human drive for most people. All of us wishto share our

feelings, ideas and opinions with others. Similarly the workers alsowant themanagement to

listen to them. A trade union provides such a forum where thefeelings, ideasand opinions of the

workers could be discussed. It can also transmit thefeelings, ideas,opinions and complaints of

the workers to the management. Thecollective voice of theworkers is heard by the management

and give due considerationwhile taking policy decisionsby the management.7.Betterment of

relationships

11. Another reason for employees joining unions is that employees feel that unions can

fulfilltheimportant need for adequate machinery for proper maintenance of employer-

employeerelations. Unions help in betterment of industrial relations among managementand

workersby solving the problems peacefully.
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Collective bargaining includes not only negotiations between the employers and unions but also

includes the process of resolving labor-management conflicts. Thus, collective bargaining is, essentially,

a recognized way of creating a system of industrial jurisprudence. It acts as a method of introducing civil

rights in the industry, that is, the management should be conducted by rules rather than arbitrary

decision making. It establishes rules which define and restrict the traditional authority exercised by the

management.

Importance to employees

Collective bargaining develops a sense of self respect and responsibility among the employees.

It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group.

Collective bargaining increases the morale and productivity of employees.

It restricts managements freedom for arbitrary action against the employees. Moreover, unilateral

actions by the employer are also discouraged.

Effective collective bargaining machinery strengthens the trade unions movement.

The workers feel motivated as they can approach the management on various matters and bargain for

higher benefits.

It helps in securing a prompt and fair settlement of grievances. It provides a flexible means for the

adjustment of wages and employment conditions to economic and technological changes in the

industry, as a result of which the chances for conflicts are reduced.


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The collective bargaining process comprises of five core steps :

1. Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of

representatives of both the parties with adequate knowledge and skills for negotiation. In this phase

both the employers representatives and the union examine their own situation in order to develop theissues that they believe will be most important. The first thing to be done is to determine whether there

is actually any reason to negotiate at all. A correct understanding of the main issues to be covered and

intimate knowledge of operations, working conditions, production norms and other relevant conditions is

required.

2. Discuss: Here, the parties decide the ground rules that will guide the negotiations. A process well

begun is half done and this is no less true in case of collective bargaining. An environment of mutual

trust and understanding is also created so that the collective bargaining agreement would be reached.

3. Propose: This phase involves the initial opening statements and the possible options that exist to

resolve them. In a word, this phase could be described as brainstorming. The exchange of messages

takes place and opinion of both the parties is sought.

4. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time

when what ifs and supposals are set forth and the drafting of agreements take place.

5. Settlement: Once the parties are through with the bargaining process, a consensual agreement is

reached upon wherein both the parties agree to a common decision regarding the problem or the issue.

This stage is described as consisting of effective joint implementation of the agreement through shared

visions, strategic planning and negotiated change.

Thus collective bargaining:

is a collective process in which representatives of both the management and employees participate.

is a continuous process which aims at establishing stable relationships between the parties involved.


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Collective Bardgin