Industrial Relations notes

Compiled by:

Seetal Daas

BBA(Hons)-2k13 University of Sindh Laar Campus, Badin

Notes for Industrial Relation Prof.Ghulam Murtaza 1

Chapter 1—Introduction

Basic Concept of IR

Definition (by: Filippos): The term industrial relation refers to all types of relations

that exist in an industrial enterprise, the employer and employees.

1-Step: in this stage employee has to sign an agreement.

2-Step: this stage express an organizational structure means to find your own authority

there.

Definition (by: Richardson): Industrial relation include individual relation and joint

consultations between employers and people at work the place of work, collective

relations between employer and their organizations and the trade unions and the part

played by the state in regulating those relations.

Description: Industrial relation means each employee has relation with their

management. Joint consultant means negotiation of whole union.

Objectives of IR

1. Development & Promotion of Harmonics labor management relation:

building an objective which profitable and useful for both union and management.

2. Maintenance of Industrial Peace and Avoidance of Industrial Conflicts: this

objective express that management and union have to work together smoothly, both

parties have none problem, they try to avoid the occurrence of the conflict.

3. Establish Industrial Democracy Based on Labor Partnership: this objective

express that through the democracy, in which each and every labor has the freedom

of speech on any kind of issue in the industry.

4. To Raise the Level of Productivity: in this objective the productivity level is

increased by efficient and effective system which should be very much supported

to the company.

5. To Boost the Discipline and Moral of Workers: this objective of industrial

relation is depending upon the moral, that moral is developed when management

will listen the worker/labor and also listen the management.

6. To Increase Industrial Prosperity: this objective is made to industrial

development with the cooperation of union and management.

7. To Improve Works a Lot with a View to Solve Their Problems Through

Mutual Negotiation or Consultation with Management: this objective facilitates

when any issue incurs that can be solved through negotiation.

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Factors of IR

1. The Employer: employer invest the capital for earning profits, employer is key

factor for maintaining the organization. Employer vary, it can be private employer,

and government employer, and the nature of private and government employer also

varies. In the private industries have lots of conflicts as compare to the government

industries. Private industries need work, no disputes, no grievances, no shouting.

Government industries have less care of profit.

2. Workman or union: union(labors) are allowed to expression, most of the times

employer gives benefits to labor/employees. Due to the issue of an organization

suffers many losses, union issue creates because they are uneducated. Collective

thought of workman is called union. Union have legal body, they allowed to fight

for right against employer.

3. Government: is broad term, employer is an organization for example: SSGC,

NBPL, PIA etcetera. When industry produce products at reasonable price the

benefit will be to labor cost. Karl Marx (exploitation) criticized the capitalism, due

to the less self-respect in society, value in society, and bound to work at 12 hours,

in the private organization (capitalism). Government has bound to pay 12500

rupees for labor in Pakistan.

4. Consumer: ultimate user of products is consumer. Services to consumers should

have good quality, not sub-standard quality, there should be reasonable price for

consumer, not high what they pay for that product. Because consumer has right that

can challenge employer for the product in court.

Conditions of Good Industrial Relation

1. Past Records of Industrial Relations: conditions of good industrial relation

depend upon if the past records between management and union is good help and

impact to improve the future good relation, if the past records both parties are not

better, it also will affect the performance of the organization.

2. Satisfaction of Economic Needs of Workers: basic needs of the labor should be

fulfilled, such as food, shelter, clothes, and health, because these are very essential

needs of labor, if these needs will be fulfilled, labor will be satisfied, and they will

work more, that will help in building good industrial relation of an organization.

3. Social and Psychological Condition of Workers: as economic needs of labor

should be fulfilled likewise the social needs are very important which help in

building good relation with management, and psychological needs also help in

building good industrial relation, in this a mechanism should be justified, in which

labor should justify him/herself in the organization.

4. Strong and Enlightened Labor Union: this condition of good industrial is that

union do not go for strikes, they do not want to harm the production, union what do

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that labors come in the organization and they work, while their union says that will

discuss our demand and problem with management, and will fight for your rights.

5. Off-The-Job Conditions of Workers: this condition helps to build good relation

through what is the actual problem that is making the sick of labor? Such as having

a problem in family of labor like any disease. So management what do they ask

from the labors about their issues personally. This thing facilitates building a good

industrial relation.

6. Negotiation Skills and Attitudes of Workers and Management: in this union

what do they select the representatives on the basis of confidence, seniority, skills,

education, experience who can negotiate with management, management also do.

7. Education, Training and Development of Workers: for building a good

industrial relation this condition of education, and training are necessary for labors

because it make them aware, confident, and help to know what is right/wrong, to

know about policy and law of the organization for labors, these things facilitate in

development of labors.

8. Interpersonal Relationship: this condition helps to build good industrial relation

through when the relation of management with union, peer to peer, and strictly

forbidden the aggressiveness of management with labors, because when the

management will behave like this it will create a bad image of the organization and

labor will leave the job. Nowadays, labors are very active in leaving and getting the

job, so management should be careful in this case.

Causes of Poor Industrial Relations

1. Nature of Work: sometimes employees become dissatisfy, when work burden is

increased and wages are not paid accordingly. And in the schedule there should be

one or two leaves for labor without deducting their salary due to the leaves. This

thing becomes the cause of poor industrial relation.

2. Political Nature of Labor Union: in the organization political interference also

cause a poor industrial relation. In the organization there are many group concerned

to various political parties (PPP, PMLN, PTI), so if the PPP/PMLN/PTI

government is running it will focus and give more leniencies to their

employees/labors as compare to other labors who are not concerned to that party in

the organization, and they are not benefited.

3. Level Wages: this is also causes the poor industrial relation when the inflation is

increasing day by day and their wages are not increasing, so the labor views for the

management will be bad, that management is not increasing our salary.

4. Occupational Instability: it is also a main cause of poor industrial relation when

the labor/employee are transferred from one place to another place, and from one

designation to another designation, so it creates difficulty for the labors/employees.

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5. Unhealthy Behavioral Climate: this cause also build poor industrial relation when

the behavior of the management is not fair with workers/union. So workers want a

healthy atmosphere by management in which they can respect the management

rather than hating.

6. Unfair Practices: this main cause of poor industrial relation when management

threatens the union that if you will strike and protest you will be kidnapped or your

family members will not safe anymore, means management try to stop them from

strike, or protest.

7. Outdated and Outmoded Laws: it also becomes the cause of poor industrial

relation when the outdated laws, which are running since British Rule, still they are

implementing on labor and while the time has changed. Therefore, laws should be

implement according to modern age.

Effects of Poor Industrial Relations

1. Multiplier Effect: due the this the industry and economy is effected; in industry

gap comes in the consumer and its products in the market.

2. Resistance to Change: due the poor industrial relation, change does not incur in

the organization in the production process, working process, technological and non-

technological.

3. Declines in Normal Working: due the poor industrial relation, the rest necessity

comes in the body by the job, it decreases the productivity and demands increases.

4. Frustration and Social: sometimes due the noise, pressure and other reasons mind

does not accept the work and want to take rest. Relations with management are

better that will facilitate the labor to work well, if it is not that will frustrate the

employees, boss’s strictness make them frustrate. If the management is not sound,

the loss will be face by the organization therefore, the social relations also affect

the organizational performance.

Suggestions to Improve Industrial Relations

1. Constructive attitudes: attitude of management with workers, should be like their

supporter, because labors feel themselves inferior and management is superior due

to the fear. Therefore, labors do not share their grievances with management. Total

Quality Management Philosophy is that each worker is your partner. So

management should adapt constructive attitudes in the organization.

2. Policies and Procedure: polices should be clear in every labor’s mind, because by

this employee think secure him/herself when they know the policy of the

organization.

3. Mutual trust and confidence: mutual trust between management and union is built

by HR management, because he/she is key to negotiate between management and

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union, manager plays intermediary role, it is important for improving industrial

relation.

4. Right kind: company play a role of providing a secure environment in which labors

can vote for election of one right union leader. No leader can influence and

pressurize them only vote him/her. Therefore, management provides a secure

environment.

5. Administration of collective bargaining agreement: in the collective bargaining

selection should be equal from both parties (management & union); three

representatives should be from union and three from management. If management

select four representatives, it is the violation of.

6. Union has right to settle working condition: union should have a right of

settlement of working environment according to them(Union/labors).

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Chapter 2—Conflict

Basic Concept of Conflict

a. Parties involved: it is necessary that in the conflict there should be two parties,

high and low level, or opposite parties, or management and union.

b. Perceived threat: in this type of threat labor can go at any level, labor can threaten

the management through various ways.

c. Needs, Interests, and Concerns: these three things become the cause of the

conflict, which build conflict much strong.

Development in Conflict Thought

Traditional View of Conflict (1930 to 1940)

Traditional view of conflict express that conflict is bad, it must be avoided. During

this era. Manager thought that poor communication between management and

employees creates conflict; poor communication is highlighted during this age.

Lack of trust between management and employees(labors) also creates conflict;

employees(labors) feel fear (scare), it is the main reason of conflict. Due to trust

deficit; employees cannot share their problems with management; trust deficit is

eradicated (decreased) when employees are allowed to share their

problems/decision on any issue. Failure to poor response is also creates conflict;

poor response refers in which management does not listen the problem of

employees carefully. In the industry there should be adequate response in which

employee’s problem is heard properly and carefully.

Human relation view of conflict (1940 to 1970)

This view express that conflict is natural humans cannot stop it. This approach

allows conflict; it should be done between two parties. Major reason of this

conflict’s benefit is that group express hidden willingness/demands/problems in

front of opposite party and judge. For example; Sales force; if one group sells

products in east side and other sells in west side market, after selling the products,

they meet in front of manager; east market seller say that I have sold 150 products;

west market seller express that he has sold 100. Additionally, east Sales Person

express that I sold more than the west seller, then west seller expresses his main

reason and problems of less selling to manager, after the listening the causes of less

sales of west manager resolve the problems and sales of both markets east and west

side become adequate.

The Interaction Approach (later 1970)

In this type of conflict approach, conflict is classified into two types of conflict 1-

Functional and 2-Dysfunctional. Functional conflict is: when problems are solved

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with the help of negotiation with other party and Dysfunctional conflict is: in which

conflict is solved with fight, abuse etcetera; it has no objective, no any impact on

organization; employees/management just talking purposelessly. In this approach

functional conflict is encouraged while dysfunctional is discouraged or given less

priority. Functional conflict is much beneficial for achieving the objectives of the

organization.

Components of Conflict

a. Conflict Must Involve at Least Two Parties: this component is very important

for occurring the conflict of two parties. One party should be union and other

management. Conflict cannot occur in individual party so.

b. The Field of Conflict: this is also important component of conflict in which having

the possible state of social system, and what is agenda (outlines for discussion),

reason and purpose of conflict and its meeting.

c. The Dynamics of Situation: there should be adjustment of two parties.

d. The Building Model in Management Control: after negotiation and discussing

the agenda, both parties come at the final state in which decision is made.

Two Views of Conflict

The Bad

The bad view of conflict express that; on the basis of organizational structure that

where is the problem and find it out. Two types of organizational structure i-

structured and ii-unstructured. Due to these there are much chances of occurring

conflict. Centralized (one authority) structure often creates conflict. Most the

employees have not chance to share their views in decision making, this thing

become the cause of conflict.

The Good

Good view of conflict is lies to functional conflict. In this there are three things i-

creativity, ii-innovation, and iii-productivity (increase in output). If there is problem

in the organization, they negotiate with other department on the issue and solve the

issue.

The Ugly

It is a situation which is not concluded. Something is going impossible you make it

possible. For example, the misconception of authority; one side manager stands

alone other side there is number of employees(labors) against the manager.

Manager suppressed the situation. It is divided into strategies names are Ugly

Strategies, it is further divided into four strategies that are expressed below.

1-Non-Action Strategy: it is the world’s dangerous strategy. It is the best strategy

to solve the conflict. For example, Karachi Electricity Supply Company (KESC);

on the violence and demonstrations of the labors, management did not take any

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action, they let employees whatever they do. After that, employees harmed the

infrastructure of the company and vehicles, finally management present the report

in the court of the destruction of vehicles etcetera; all those employees who

demonstrated, harmed and demanded were dismissed/fired.

2-Administrative Orbiting Strategy: in this strategy management realize the

problem but they do not want to solve it. Management just passing the statement

that it would be solved. For example, on the increment of inflation, employees

demand for the increment in their salary so finance manager states that we will

increase your salary.

3-Secrecy Strategy: undisclosed meeting is convened at outside the organization

in which the leader or the representative is called and negotiated and solved the

problem/demands etcetera.

4-Law and Order Strategy: on the basis of legal obligations, management take

the action on the conflict/issue/violence.

Conflict Style and Their Consequences

a. The Competing: it is a debate style, threatening power, always says in this no or

never.

b. Accommodating: it is move towards the solution; it is observed that relationship

is important rather than things.

c. Avoiding: in this views are unexpressed, due to say nothing and ignorance conflict

occurs.

d. Compromising: it is occurred due to settlement of difference by mutual

concessions, and agreement is reached by adjustment of conflicting.

e. Collaborating: in this type of conflict employees solve the problem through win-

win, and knowing and discussing problems with all staffs.

Different Aspects of Conflict

1. Individual do not know what to do: in this aspect of conflict an employee feels

unsecure; thinks that there is over burden of work; and this is the default of an

organization.

2. Due to Personality Difference: due to the rules and regulation; and central

authority status and variation in designation creates conflict in the organization.

3. Conflict on Achieving Profitability: management gives the tough work or burden

of work or difficult task to talented/confident/skilled and senior employees and the

simple task gives to less skilled/confident/talented and junior but talented/skilled

often complete their task in time and less skilled take much time to complete.

Therefore, talented/skilled creates conflict for much reward of work.

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4. Line-Staff and Labor Management Conflict: labors are responsible for both

(Line-Staff) and management; means who reports to whom. Labor management

worked for line-staff management and their reports they send to staff management.

Sources of Organizational Conflict

1. Shared Resources: due to the shared resources conflict occurs, through the court

distribution and division is done equally.

2. Differences in Goals: when there is difference among the goal of one department

to another department, it also causes the conflict, because both goals are not

matching with one another.

3. Interdependence of Work Activities: individual department cannot achieve the

goal of department until workers do not take part in working activities.

4. Differences in Value or Perceptions: difference in the values and perception of

departments cause the conflict when they come to discuss in the meeting their ideas

do not match.

5. Individual Styles and Organizational Ambiguities: everyone has its own style,

workers’ way of working is varying with organizational ambiguities, if it does not

match with working environment of workers and it creates ambiguities that occurs

conflict.

Process of Conflict

Pondy’s Process

Latent conflict: in this conflict process sources of the conflict are present.

Management promote his favorite employee.

Perceived conflict: in this employee perceive the conflict; and recognize that

conflict is actually existing.

Felt Conflict: in this process employee completely know about the conflict and

starts fighting with management for their rights.

Manifest Conflict: over and over attitude and aggressive, rude behavior of

management; brings conflict between management and union.

Conflict Aftermath: in this process ways are found to solve the problem.

Negotiation, between management and labor take place, both parties put their

demands in front of each other and find remedies and finally reaches at conclusion

(result of discussion means final decision).

Robbin’s Process

Potential Opposition or Incompatibility: three things are in this kind i-

communication, ii-structure, iii-personal variables.

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i-Communication: insufficient exchange of information; labor does not

understand the policy; communication gap creates problem. For example, a

company holds an annual bonus ceremony for those who are senior, experienced

and services more than 15 years; due to the noise, mike and sound problem message

could not convey at labors properly in the hall. So other labors demonstrated that

why they are getting benefits not us? We ought to be benefited of bonus. Due to

communication gap conflict occurred.

ii-Structure: in this employees cannot direct communicate with the higher

authority(management), they have to follow the chain of commands; then they

convey their message at higher authority or they meet with higher authority because

of the organizational structure.

iii-Personal Variables: these are drawbacks in management; as they cannot value

the labor. When the proper value means respect is not given to labors, they become

aggressive and not polite behavior of management with labors creates the conflict

between union and management.

Cognition and personalization: in this stage conflict comes in action. Cognition

means idea of conflict. When labors feel their goodness is irritating the

management, they become discouraged. For example, Nations like; nation A/B/C

does not behave good with nation C/B/A.

Intentions: in this labors have plan to do something; such as strikes; this type of

things are already planned. Management knows well the union and union also

knows well the management about their games. So all these things have on

management mind that union would take this step. Therefore, management handle

the actions of the labors accordingly.

Behaviors and Outcomes: this stage depends upon action, reaction and intention.

Action when union does not follow the order of management, in this action conflict

is showed, and labors passing the statement/sentences/slogan for management that

should not be passing loudly. Reaction come that management threaten the union.

So the consequences would come that if union’s intention is pure outcome would

be bright, if its intention is not pure their outcome would come accordingly, and it

will affect the organization image.

How to Response the Conflict?

1. Emotional Responses

In this type of response, the management shows his/her aggressiveness, anxiety to

union(labors) for building fear, because management has to response otherwise

company will face loss. Management shows rigid and rude behavior to labors,

because change in attitude brings great lead of loss.

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2. Cognitive Responses

Workers are always worried about the organization; they think about the

organization on issue such as conflict that what will be the outcome of it. Workers

talk with management and its different manager, the management express different

views about the conflict. Employees(workers) come to know that its effect will be

negative/positive on the organization, one thing is connected to your opinion.

3. Physical Responses

Management act to show that they are in very critical condition. They begin to show

some physical drawback such as higher level of stress due to conflict, workers think

more about the state of management. Management (manager) is more educated; but

labors are uneducated or less educated. So management threaten to labors that if

you would take this action, then next time never come in my office/organization.

Methods of Managing the Conflict (3 ways described by Stoner)

1-Conflict stimulation: in first step/way where the situation of conflict is very low.

To resolve the problem is necessary of having the conflict.

1.1-Bringing in Outsides: in this outside party means third party comes to solve the

problem, they negotiate with management and union; they listen both party’s

agenda/demands and finally shake hands of both parties with each other. Third party

discuss the problem individually with one party and second party and also states them

the reason of coming of them in the organization that to solve the problem.

1.2-Going Against the Book: in this what happens that some people are excluded and

new employees who come to deal with them(union), management change the way, and

direct communicate with union on the demands, because middle man has the role of

conflict.

1.3-Reconstructing the Organization: management change the structure

(centralized/decentralized) of the organization, because of management thinks there is

fault in the structure so in different designation of management employs new senior

and experienced employees for knowing the actual reason of conflict.

1.4-Encouraging Competition: bonus scheme like this management begins

announcing for the workers come and share their problems, for getting the benefit of

bonus labor will express their grievances.

1.5-Selecting Appropriate Manager: one who can understand the problem of

workers, manager should work like a leader, and having leadership qualities. Manager

should work easily and honestly for the organization. In the industry if appropriate

manager is hired/appointed, if he/she does not possess the managing quality, industry

will have to face the losses. Being a manager should be calm, patience, confident,

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leading qualities are not in you, will be fired from the designation, other will sit on

your designation who has all these qualities should be in manager.

2-Conflict Reduction & Resolution Method: in this method management try to

divert the attention of the labors(employees) from current issues to another issue, and

conflict never go little down, it is never reduced. There are chances of solution, when

management shows his dominance on workers; workers fear, it is used that workers

ought not cry on anything, and fear dominancy is used to reduce the raised voice of

workers.

3-Dominance and Suppression: in this through dominancy demands/voice of

workers is suppressed.

3.1-Forcing: management their power imposes on workers. For example, a ship which

have to come on port/harbor at 2pm but manager himself try to late the ship and it

comes after 4 hours late on the port, but it is time to leave of labor, but manager order

them till the full filling of ship you cannot leave the port, now labors are bound and

they cannot go until the ship is filled completely.

3.2-Smoothing: it is the tactical way of resolution in which manager takes one’s side,

like manager says that he is with union, and he stands against the management for

union. In this case manager has both party’s information, he/she can make solution for

them.

3.3-Avoidance: in this case manager avoid to make the decision while two groups are

fighting each other, manager says he will make the decision in for coming days.

3.4-Majority Rule: in this the rule of majority is concentrated, that what majority is

saying management has to accept them, cannot avoid it. Management has to make

decision on one side. It is effective way of solving the conflict.

3.5-Compromise: this is the rule of adjustment; in which few steps union comes back

and few steps management goes back, means both mutually agreed; both think that

what is more important and what is less important. Union do not know that what is

next, that management would accept our demand or not. If third party involved in

decision-making for both parties is called Argutration.

3.6-Integrative Problem Solving: it is joint problem solving, all parties sit together

and think about the problem solving techniques, and solve the problem. It is further

divide into three categories; i-Consensus: in this all are agreed on one solution; solution

may be advised by anyone. ii-Confrontation: it is direct criticism of one party to

another party. In this criticism third party’s work is to judge both parties and says both

parties openly share your problem here whatever they are. Third party by using their

leadership skills and quality solve the problem/conflict. iii-Party’s Goals are there: in

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this suppose, there two parties; one who demand for increasing their salary and second

group demands for bonus, so management after studying both parties demands make

a specific decision in which both parties are benefitted.

Chapter 3—Industrial Disputes

Forms of Disputes

Usually, Conflict and disputes interchangeably used in the context. The dictionary

definition of Disputes is: disagreement followed by opposition against something.

1. Strikes: a concerted stopping of work or withdrawal of workers' services, as to

compel an employer to accede to workers' demands or in protest against terms or

conditions imposed by an employer.

2. Lockout: the temporary closing of a business or the refusal by an employer to allow

employees to come to work until they accept the employer's terms.

3. Layoff: the act of dismissing employees by employer, especially temporarily. Due

the shortage of electricity/raw material or any other resources shortage in the

organization.

4. Retrenchment: termination of the job due the strong reason. Suppose a labor is ill,

the organization discontinue the job of the labors. It is possible when a labor is near

at retirement so employer offer him early retirement with handsome amount of

retirement pension of Rs.30 lacs, but most of the labors deny from this offer and

want to work till they retire at 60s age. Usually, Managing Directors (MDs) are

worked at the age of 65 years.

Forms of Strike

What is strike? Here is its simple definition: a group work stoppage to compel an

employer to accede to workers' demands or to protest an employer's conditions.

1. Go-slow strike: a form of strike by workers in which they deliberately slow-down

the phase of work/production in order to cause problem or till their demands are

approved from their employers.

2. Stay-in-strike/Sit-down strikes/Pen-down strike/Tool down strike: a labor

action in which employees come to work but do not do any work. It is an unofficial

form of strike.

3. Lightning strike: it is also a labor action in which labors/employees burn the

vehicles, office and other infrastructure for approving their demands from

employer. It is also unofficial form of strike.

4. Work-to-rule strike: it is labor’s action in which employees/labors do no more

than the minimum required by the rules of a workplace.

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5. Hunger strike: a group of labors/employees protest by sitting without eating

anything for 2,3 days for approving their demands from employer/management or

against the condition of an employer/management.

Methods for the Prevention and Settlement of Industrial Disputes

1-Collective Bargaining: it is a process of mutual negotiation between management

and union on the issues of labors. Both management and union compromise with each

other. Sometimes the demands of labors, management cannot afford, in this case

collective bargaining facilitate the management to reduce few demands from union

side, other are accepted. This is the most useful method in business organization.

2-Code of discipline: it the code in which management must be agree on some

principles and union must be agree on some principles. Majority was agreed on this

code of discipline and signed.

2.1-Management and Union Agree

a. No unilateral Action: one side action; organization becomes destabilized, union

addresses that our demands must be approved, and management express that we

have not any relation with union and its demands. Both agreed on it.

b. Existing Machinery with utmost Expectation: for solving the problem a panel is

seated consist of two members of union and two members of management.

Whenever conflict/problem is increased a committee is formed, after the

formulation of committee, often problem/conflict is solved. Both agreed on it.

c. No Strike without Notice: union agreed that they cannot do any strike without

notice. Union agreed on it.

d. Democratic Process for Negotiation & Condition: in this process everyone takes

participation, even a peon has authorized to contribute for solving the

problem/conflict through negotiation and conciliation. Both agreed on it.

e. No Coercion, Intimidation, Go-slow & Victimization: management/union not

allow to threaten the management/union. Go-slow: to slow the work process by

workers. Not allow to intimidation: mentally torture to someone. Victimization:

blaming is not allowing to union and management each other, according to this

code all agreed.

2.2-Management Agree

a. No increase in Workload: sometimes management misuse the authority like due

the conflict, management increase the work burden until problem is solved.

Management is prohibited, and agreed on this.

b. To Take Prompt Action with Implementation: management agreed on to rapid

taking action of grievances of labors and implementation also required to settle the

problem.

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c. Conspicuous Places for Negotiation: management agreed on for meeting of union

and management will at common place, not outside the organization e.g.

restaurant/hotel. Management can take the notice against the in disciplinary

(state/condition when labors chanting slogan against management on media).

2.3-Union Agree

a. Not to Increase the Physical Rule: physical attacks are not allowed on the

property, assets and people (executives, directors etc) of an organization. Union

agreed on it.

b. Not to Permitted Rowdyism: it is a situation of disorder or noisy, so union is not

allowed to strike with noise, because noisy strike is illegal. Union agreed on the

code.

c. Not to bound the Employees for Strike: union cannot force the

employees/workers to participate in the strike. Union agreed on the code.

d. Neglect Unfair Practices: union is not allowed unfair practices such as threatening

the management or kidnapping any executives. Union agreed on this rule.

Permanent Negotiation Machinery

The permanent negotiation machinery that management select the top senior members

to discuss the industrial disputes with union for solving the disputes. The permanent

machinery means a selected body of senior members from management.

Triparative body: it is the third party that solve the disputes between management and

union. It can be central/federal/external party.

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Chapter 4—Collective Bargaining

Collective Bargaining

According to Harbinson: collective bargaining is a process of accommodation

(making possible) between two institutions which have both common (not favor in

management) and conflicting interests (not favor of a union).

Objectives of Collective Bargaining (CB)

1-To agree upon a contract acceptable union representatives, union members and

the management: the objective of the objective is to make both parties agree and

gather at one platform and developing the consensus, collecting different ideas from

mutual understanding.

2-If 1/3 Majority is Available: this objective express that if the 1/3 majority of union

or management is available meeting can be convened. For example, union’s

representatives are not present but other members of union 1/3 are present and

management is presented in this case management can be convened the meeting. If

union’s representatives and members are present but management’s representatives

1/3 are present but members are not present in this case union can be convened the

meeting.

Types of Collective Bargaining

There are two types of Collective Bargaining Rules

1-Procedural: this collective bargaining rules describe the two things, that how to

govern on the behavior of the employees and many conflict in the organization are

controlled by the rules. They just require to show their behavior as decided in

procedural rule. Management has to respect everyone, and cannot say that subordinates

are servant because of their low scale. Union behavior ought not be threatening the

organizational structure (higher authorities), it is somehow right but in a manner and

with legal way not illegally.

2-Substantive: in this rule management maintain the relationship with individuals.

Management does not feel need to talk to entire group, they directly communicate

those who are senior and representatives/leader of the union, they satisfy the

leader/representatives, then representatives/leader will satisfy the group.

Three Kind of Relationship Regulated by Substantive

2.1-Economic or Market Relationship: in this kind of relationship management offer

the complete package for union, that those who are senior will be awarded with bonus

and leader will be rewarded more bonus or cash amount as compare to workers.

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2.2-Governmental Relationship: sometimes dispute occurs for solving, in this case

external party means government agents come to solve the dispute. By this way

relationship between union and government become stronger.

2.3-Workplace Relationship: making the relationship with management and with

peers (colleagues). Leader will be the part of the meetings (Annual General

Meeting/Policy Promotion Meeting) and are empowered to improve the relationship

at workplace.

3-On The Basis of Exercise There Are Two Types

1-Distributive Bargaining: in this sort of relation one party gets merits and other party

face losses.

2-Integrative Bargaining: this is beneficial for both parties, have problem solving

approach. Both mutually agreed that no loss no gain. Concept of productive bargaining

is developed that no stakeholder will in loss.

Participants of Collective Bargaining

Employer

Small Scale Business/Firm: size of firm is minimum 20 and maximum 50

workers/employees.

Medium Scale Business/Firm: size of firm minimum 50 and maximum 100

workers/employees. Representatives like personal or HR manager deals along with

legal assistance. It is registered kind of business. Legal matters are solved by legal

advisor/assistance and whenever HR Manager negotiate with the union and

manager identify the demands, are justified.

Large Scale Business/Firm: size of firm is more than hundred workers, and seven

directors must be in board. They select their representatives such as Economic

specialist, labor law specialist etcetera.

Employee

Departmental/local basis: (E.g. SUTA, 600 teachers)

Country wide: (E.g. FAPUASA, 25,000 teachers)

If the problem is not solved at low/local level, it is sent to the upper level.

Example: Sindh University Teacher Association (SUTA), and Federal of All Pakistan

Universities Academic Staff Association. Few year ago an issue raised when

Government of Sindh took notice that afterwards government will appoint the registrar

and controller of the examination; when this issue raised by teachers of the University

of Sindh, they protested and did strike but government did not listen anything.

Thereafter, SUTA decided to present the issue in front of FAPAUSA; when this issue

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listened by this, FAPAUSA took immediate action and passed the statement “If

Government of Sindh will not take notice back, we would boycott all Sindh’s

Universities classes”. As a result, Government of Sindh took notice back and next

morning at dawn; in the newspapers head-lines were that Government of Sindh has

taken notice back. So this was the example of both country wide and

local/departmental wise representatives; that if your voice is not listened at low level

you can raise it with help of upper level if you are associated with any organization or

party.

Process of Collective Bargaining

1. Organizing and Certification: there are some representatives in the organization,

who talk with workers/employees to make a group, if it is certified union no one

can challenge it; they can be senior members who look for that workers/employees

are willing to join the union. What does management do here? Management is not

in favor of making a union, they want to stop making union and try to dominated

over.

2. Preparation for Negotiation: there two types of collecting the data, information,

fact and figures from internal and external sources. Internal sources: data from data

system, about employees, no. of management, no. of working hours etcetera. After

collecting the information, fact and figures, representors make a plan that who will

present the charter of demand and who will respond the charter of demand.

3. Negotiation: once representatives of union will formulate the facts and figures;

they will negotiate properly. Strategy is logic to achieve the goal. All

representatives should be well prepared. Negotiation begins when representatives

present the list of demand; it should be strictly followed because management will

argue with union and union have to be careful whatever union want to speak and

steps union take.

4. Contract Administrative: on whatever union addressed should be agreed upon,

this is the method that will represent the union; and implement on them. Union has

to follow all the steps because words are recorded through meeting. Representatives

should not hesitate/perplex/confuse whenever management try to threaten them.

Essential Conditions of Collective Bargaining

1. Careful Thought and Selective of Negotiation: negotiation team/group should be

selected from different departments. Organization is diversified the department.

This type of work is called professional development. Marketing personnel has

expertise in this particular field like this all department’s expert should be selected

in negotiation. The quota of selection should like 20% from marketing department,

10% from HR department etcetera. Very senior employees are able to solve the

problem with their experience with union and management. This is very crucial

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step in negotiation; if team is strong, 99% chances are of solving the

conflict/problem.

2. Management Should Recognize Union: how the management recognize the

union? Management understands that they respect the union, considered as unity of

an organization. Strong union and progressive management can promote the

environment of mutual confidence. Talent versus talent, skilled and effective

participants always generate mutual confidence. Both parties already sign the

contract/agreement to discuss, not to make conflict.

3. Bargaining Team Members Should Have Open-Minded: those who welcome

the criticism are called open-minded; they allow other to criticize, and management

always criticize opposite party. Experienced employees are the strength of union

that assist them for approving their demands.

4. Homework On Agenda of Meeting: before coming in the meeting representors

should get prepared, their agenda of meeting should be clearly written according to

labor law, court of conduct, legally and have command/grip on.

5. Both Parties Should Grievances, Safety, And Hygiene Problem: both party’s

grievances should be addressed and listened carefully. Basic hygiene problems of

employees are valued and managed.

6. Internal Union Democracy: it describes that union has not right to threaten,

pressurize and influence workers for joining the union, workers have right to

willingly join or not join.

7. Strikes/Lockout Should Be Resorted: if the problem is not solved through

negotiation, final decision is to solve the problem through strike, lockout and

protest.