FINAL Collective Bargaining (10)

8/3/2019 FINAL Collective Bargaining (10)

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Nitin Kutre 31

Pooja Maheshwari 32

Ankit Majethia 33

Mihir Mehta 34

Nirav Mehta 35

Collective BargainingCollective Bargaining



Collective Bargaining is a technique by which a dispute between

labor & capital are resolved amicably by agreement rather than

by question

The basic objective of collective bargaining is to arrive at an

agreement resolving the difference between workers and

management through voluntary negotiations and arrive at a

consensus

Collective Bargaining



Characteristics of Collective Bargaining



Levels of Collective Bargaining



Causes of Disputes

Economic

Wages

Bonus

Allowances

Conditions for Work Working Hours

Leaves & Holidays without pay

Unjust Layoff

Retrenchments

Standing orders/rules/serviceconditions/safety measure

Non Economic

Victimization of workers

Ill treatment by staff members

Sympathetic strikes

Political Factors Indiscipline

Union Recognisition

Changes in Technology



Collective bargaining acts as a technique

of long run social change, bringing

rearrangements in the power hierarchy of

competing groups.

Agent of Social Change

Collective bargaining has served as a

peace treaty between two parties in

continued conflict

A Peace Treaty

It is a method of introducing civil rights

into industry, that is, of requiring that

management be conducted by rule rather

than by arbitrary decision.

Creates a system of industrial jurisprudence

Functions of Collective Bargaining



Process of Collective Bargaining

3rd Party

Referral

Negotiation

ManagementProposal

Union Claim

Collective Agreement



Third party intervention

Union strategies for overcoming breakdowns

Management strategies for overcoming breakdowns

Breakdown in Negotiation



To decide who or which union is to be recognized as the

representative of the workers for bargaining purpose.

To decide what should be the level of bargaining ;and

To decide what should be the scope and coverage of issuesunder collective bargaining.



Conditions for Collective Bargaining

y Parity of Power between two parties

y Bargaining in good faith

y Mechanism to break a deadlock



Environment of Collective Bargaining

Factors affecting collective bargaining

Macro Economic Factors ± Inflation may act as a boon forunion to demand higher wages

Micro Economics ± Rate of Profits, Trends, etc

Industrial Environment ± Size of Plant & technologicalgrowth eg ± larger plants can increase wages, as comparedto seasonal plants

Social & Political Factors ± Percentage of omen in workforce, Rivalry among unions

Time & Era ± As we have observed collective bargaining hasDeveloped rapidly when government intervention

weakened



A collective agreement or collective bargaining agreement (CBA)

is an agreement between employers and employees which

regulates the terms and conditions of employees in their

workplace, their duties and the duties of the employer.

It is usually the result of a process of collective bargaining

between an employer (or a number of employers) and a trade

union representing workers.

Collective Agreement



Collective Bargaining Agreement

y Written document regarding workingconditions and terms of employment

y Legally, a CBA binds only the parties toit.

y In India, there are three types of agreements, namely

voluntary agreements,

settlements, and

Consent awards.y procedural agreements or substantive

agreements



Pros & Cons of Collective Bargaining

Pros

avoids unnecessary legal

proceedings

It promotes workers democracy

& participation in management.

It helps in establishing

harmonious relationship between

employee & employer.

It emphasizes on the interests and

benefits of both parties.

It eliminates unnecessary

expenditure and avoids bitterness

among involved parties.

Cons

y Increased wages and improved

facilities for workers will indirectly

result in high prices for goods and

services.

y Consumers are affected badly due

to price rise; a process which they

do not actively participate in.

y The process may not be fair at all

times; the decision is often

influenced by power and politics.

y In case of failure of the collective

bargaining agreement, the

immediate consequence is strike

or lock-out



Collective Bargaining in India



Indian Scenario on CB

y In India trade union gained prominence much lateronly after 1900.

y In 1918 Gandhiji as a leader of Ahmadabad Textiles

workers advocated the resolution of conflict throughCB agreements.

y The Government of that time took steps like setting upmachinery for negoations. The Trade union movement

& also CB agreements become a popular afterindependence.



Conditions For Successful Collective Bargaining

y Trade Union Recognition

y Observance of Agreements

y Support of Labour Administration Authorities

y Good Faithy Proper Internal Communication



Causes of limited success of CB in India:

Problems with unions:y CB mainly depends on the strength of unions.

y Weak trade unions cannot initiate strong arguments duringnegotiations.

y Not many strong unions in India.

y Indian unions are bogged down by the problems of: multiplicity,inter and intra-union rivalry, weak financial position and non-recognition.

y So, unanimous decision is unlikely to be presented at thenegotiating table.

Legal problems:Now that adjudication is easily accessible, the CB process is losingits importance.



Problems from Government:

The Government has not been making any strong efforts for thedevelopment of CB.

Imposition of many restrictions regarding strikes and lockouts has

removed the `edge` of the CB process.Political interference:

Interference of political leaders in all aspects of union matters hasincreased over the years.

Almost all unions are associating themselves with some political

party or the other.Management attitude:

In India, managements have a negative attitude towards unions.

They do not appreciate their workers joining unions.

Causes of limited success of CB in India:



legality and recognition of collective bargaining in

India

y Industrial Disputes Act, 1947 - The Act is basically enacted forproviding the mechanism for the settlement of disputes

y Trade Union Act, 1926 - The Act provides for the registration of trade union and determines the rights & liabilities of the union

yThe Industrial Employment (Standing Orders) Act, 1946

-Standing Order is drafted by the employer which contains theconditions of employment

y The Constitution of India - The Constitution of India in theChapters on Fundamental Rights and Directive Principles of StatePolicy justify the legality of collective bargaining

y Recognition The willingness of an employer or of an employersassociation to bargain with a particular union is known as therecognition of the union



Case Study onMaruti Suzuki India Ltd.



Last year MSI Ltd. had faced several strikes in its Manesar plant.

1st Strike started in June, and went on for 14 days.

2nd Strike started on August 29th and went on for long 33 days and

ended on 1st October.

3rd Strike started on October 8th and lasted till 21st October.

Case Study on Several Strikes in MSI Ltd. in 2011



The Strike in June was for recognition of The New Labour Union

Maruti Suzuki Employees Union (MSEU) and also for increament of

wages, incentives and betterment of work conditions.

During the strike, the management dismissed the 11 workers who

were the labour leaders.

After the agreement between the management and the workers,

the 11 workers have been taken back by the management, after a

round of inquiry on them.

Strike in June 2011



It was a 33 days long strike which started on August 29, 2011

preventing the workers to enter the factories without signing the

Good Conduct Bond.

The good conduct bond required the workers to declare they would

"not resort to go slow, irregular stoppage of work, stay-in-strike, work-

to-rule, harm or otherwise indulge in any activity, which would

hamper normal production in the factory.

During the strike company dismissed 62 workers.

This strike was finally ended by a Tri-partite agreement between theCompany Management, the workers and the Haryana Government

which stated that 18 suspended workers will be taken back and the

workers will sign the Good Conduct Bond.

Strike from Aug. 29 to Oct. 1, 2011



The Recent strike in October was for taking back the dismissed 1200

casual workers and 64 permanent workers.

The Recent strike went on for 14 days.

No Pay for the duration of the strike.

It also ended again with a tri-partite agreement between theManagement, workers and the Haryana Government to take back the

64 permanent workers and 1200 causal workers.

Also under this agreement, it mentions that a 'Grievance Redressal

Committee' will be set up and it will have representation from the

management and workers.

Also setting up of a 'Labour Welfare Committee' to promote measures

for good relations between the management and workers, which will

also comprise members from the management as well as workers.

Strike from Oct. 8 to Oct. 21, 2011



The Indian Government needs to adopt comprehensive statutory

measures with regards to collective bargaining

For an effective Collective Bargaining in India the following measures

need to be taken:

Recognition of trade union has to be determined. The union

having more membership should be recognized as the effective

bargaining agent.

The State should enact suitable legislation providing for

compulsory recognition of trade union by employers. State has to play a progressive role in removing the pitfalls which

stand in the way of mutual, harmonious and voluntary

settlement of labor disputes.

Suggestion



THANK YOU

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FINAL Collective Bargaining (10)

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