FINAL Collective Bargaining

8/3/2019 FINAL Collective Bargaining

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Nitin Kutre 31

Pooja M 32

Ankit Majhetia 33

Mihir Mehta 34Nirav Mehta 35

Collective BargainingCollective Bargaining


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Collective Bargaining?

Collective Bargaining is a procedure by which the terms and conditions of

workers are regulated by agreements between their bargaining agents and

employers

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


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Strikes and Lockouts from 2002 to 2005Labour Bureau, Government of India

ITEM 2002 2003 2004 2005

A. No. of Strikes 295 255 236 227

No. of Workers Involved 900,386 1,010,976 1,903,054 2,722,784

No. of Man days lost 9,664,537 3,205,950 4,828,737 10,800,686

B. No. of Lockouts 284 297 241 229

No. of Workers Involved 179,048 804,969 169,167 190,817

No. of Man days lost 16,921,382 2,70,49,961 19,037,630 18,864,313


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Most Common Issues Negotiated

Wages and working conditions;

Work norms;

Incentive payments;

Job security;

Changes in technology;

Work tools, techniques and practices;

Staff transfers and promotions;

Grievances;

Disciplinary matters;

Health and safety;

Insurance and benefits; Union recognition;

Union activities/responsibilities;

Management rights.


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Machinery for Prevention and Settlement of

Industrial Relations

Voluntary Methods Government Machinery Statutory Measures

Code of

Discipline Tripartite

Machinery Workers

Participation

Collective

Bargaining I.D. Act, 1947 Sta te Acts

Labour Administration

(States & Central Levels)

WorksCommittee

Conciliation VoluntaryArbitration

Court of Enquiry Adjudication

Conciliation

Board

Conciliation

Officers Labour

Court Industr ial

Tribunal

National

Tribunal


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Levels At Which Collective Bargaining

Is Undertaken

Enterprise or Plant level

Industry Cum Region wideAgreements

Sectoral collective bargaining atnational level


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Different Types of Bargaining

Bargaining between management and singletrade union

Single PlantBargaining

Bargaining may be between a single factory orestablishment having several plants and theworkers employed in all these plants

Multiple PlantBargaining

Bargaining between all the trade union ofworkers in the same industry through theirfederal organisations, and the employersfederation

MultipleEmployer

Bargaining


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Characteristics of Collective Bargaining

Voluntary

Both the parties negotiate voluntarily in order to have a meaningful dialogue.

Through negotiations, they try to probe each others views thoroughly before arriving at an acceptable solution.

The implementation of the agreement resulting from such a bargaining process is also voluntary.

Continuous

This process begins with negotiations but does not end with an agreement.

Implementation of such an agreement, which is an on-going process, is also a part of C B.

Dynamic

The whole process of CB is influenced by the mental make-up of the parties involved.

As a result, the concept of CB changes, grows, and expands over time.

Powerrelationship

Each party wants to extract the maximum from the other

To reach a consensus, both have to retreat from their original positions and accept less than what is asked for and give more than what is on offer.

While doing so, the management tries to retain its control on workplace matters and unions attempt to strengthen their hold over workers without anyserious dilution of their powers.

Representation

The participants in CB do not act for themselves.

They represent the claims of labour and management while trying to reach an agreement.

Each participant is an authorized representative of workers and employers.


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Functions of Collective Bargaining

Collective bargaining acts as a technique of long runsocial change, bringing rearrangements in the powerhierarchy of competing groups.Agent of Social Change

Collective bargaining has served as a peace treatybetween 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 conductedby rule rather than by arbitrary decision.

Creates a system of

industrial

jurisprudence


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Process of Collective Bargaining


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Third party intervention

Union strategies for overcoming breakdowns

Management strategies for overcoming breakdowns

Breakdown in Negotiation


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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.


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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


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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 ofagreements, namely

voluntary agreements,

settlements, and

Consent awards.y procedural agreements or substantive

agreements


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Collective Bargaining in India


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1920-1950

Bargaining was in the stage of infancy It was not a very common method of regulating labor-

management relations in India

1951-1969

In this period actual emergence of bargaining was witnessed It was established as a method of settlement of industrial

disputes and determination of terms and conditions ofemployment

1970onwards

Collective bargaining took a more general form

It widened its scope from plant or enterprise level to theindustry or the national level During this period some new trends in CB also developed


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Conditions For Successful Collective Bargaining

y Trade Union Recognition

y Observance ofAgreements

y Support of Labour Administration Authorities

y Good Faith

y Proper Internal Communication


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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 the

negotiating table.


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Problems from Government:

The Government has not been making any strong effortsfor the development of CB.

Imposition of many restrictions regarding strikes andlockouts has removed the `edge` of the CB process.

Political interference:

Interference of political leaders in all aspects of unionmatters has increased over the years.

Almost all unions are associating themselves with somepolitical party or the other.



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Legal problems:

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

Management attitude:

In India, managements have a negative attitude towards unions.

They do not appreciate their workers joining unions.


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Collective Bargaining in Tea

Companies in India


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Ducans Industry

Part of the Goenka family

Tea gardens encompass over 7500 hectares of land spread

over the Dooars, Terai and Darjeeling regions of North Bengal

Implemented Quality Systems in line with ISO 9002 standardsOne of the finest clonal gardens in the world.


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Established tea gardens progressively in 1977

17 existing tea gardens of Goodricke Group Ltd.

Covers 12 estates

Goodricke group ltd


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Tea Board of India(Ministry of Commerce and

Industry, Govt of India)

2nd largest employer>2 million workers

Indian

TeaAssociation

State Government


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Plantation Labor Act

Plantation Labor Act (1951)

Only Goodricke and Duncan provide 100% housing, others

involve in local bargaining

Cannot bargain on wage and ration

1 meeting in 3 years for wage revision

Main dispute on efficiency of workers (output)


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In case of any dispute meetings are held

if not solved in the first level the move to the next level


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Local Level - Bipartite Meeting betweencompany and union

Tripartite Meeting mainly at Jalpaiguri localworker union, the tea garden union andcompany

Case forwarded to District LaborCommissioner

Case forwarded to Assistant LaborCommissioner

Case forwarded to court (rare occation)


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The Indian Government needs to adopt comprehensive statutorymeasures with regards to collective bargaining

For an effective Collective Bargaining in India the following measures are

taken:

Recognition of trade union has to be determined through verification of

fee membership method. The union having more membership shouldbe 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, amicable and voluntary settlement of labordisputes.

Suggestion


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THANK YOU


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The case of Viva Global

y 400 male workers and 200 females workers in company --- demand for wageincrement in April 2010 after minimum wages revised in January 2010---stopped the work for two hrs every day April 8-10

y One worker dismissed---protest----15 workers taken in custody

y Workers started their efforts to form trade uniony Protest ended-demands fulfilled---minimum wage, formal contract-ESI and PF

y But Soon management started throwing out workers one by one

y Workers successfully registered union in May 2010; collectively protestedagainst this move

y Aug 21: all contract workers thrown out-protest at the factory gate

y Management locked out the factory, regular workers also thrown out

y August 25: 20-25 local goons brutally attacked the factory workers


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The case of Viva Global

y One worker was caught and abducted by the goons.

y Accounts of Abducted worker: I was put in backside box of a car. Lastly thecar stopped and the goons closed my eyes with some cloth before taking

me out of the box. They took me to a house and hit me with whatever theyhad till they received directions on phone to take me to another place.Thereafter they took me to a jungle and threatened to kill me. But soonafter they received directions on phone and therefore they again put me inthe same backside box of the car and threw me out at Delhi-GurgaonBorder. As soon as I reached my residence from there, the police alsoreached there and took me to the Police Station and then to the hospital

and from there I again came to the place where sit-in-protest of workerswas going on.


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New Trends

Informalisation and New Paradigm of CB

y Emphasis on Community organizing rather than at shop-floor; CollectiveBargaining at Industry or National level rather than factory level; adoptingmore political forms of struggle than traditional union tactics

y In many industrial sectors, for example in garment-the situation provides onlytwo options: individual bargaining or Industry level/national level bargainingand requires political forms of struggle

New initiatives to organize informal sector workers: Many local level unions ofrural workers and also regional platforms of rural workers have started

emergingParticularly around NREGA.

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FINAL Collective Bargaining

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