Professional Documents
Culture Documents
Case Study
Case Study
Submitted to:
Ms. Jiveta Chaudhry
Prepared by:
Neeti Som (066)
Pooja Sachdeva(074)
MBA IIIA
Contents
Acknowledgement
Certificate
Theoretical framework
Case summary
Solution
Annexure
ACKNOWLEDGEMENT
It is our duty to record our sincere thanks
and deep
sense of gratitude to our respected teacher
Ms. Jiveta Chaudhry
for her valuable guidance interest and
constant encouragement for the fulfillment of
the
report.
CERTIFICATE
THIS IS TO CERTIFY THAT THIS REPORT HAS
BEEN
PREPARED BY
NEETI SOM & POOJA SACHDEVA
UNDER MY GUIDANCE
AND TO MY SATISFACTION.
IT IS BASED ON THEIR OWN EFFORTS.
THEORETICAL FRAMEWORK
WHAT IS COLLECTIVE BARGAINING??
Collective bargaining is process of joint decision making and basically represents
a democratic way of life in industry. It is the process of negotiation between
firms and workers representatives for the purpose of establishing mutually
agreeable conditions of employment. It is a technique adopted by two parties to
reach an understanding acceptable to both through the process of discussion and
negotiation.
ILO has defined collective bargaining as, negotiation about working conditions
and terms of employment between an employer and a group of employees or
one or more employee, organization with a view to reaching an agreement
wherein the terms serve as a code of defining the rights and obligations of each
party in their employment/industrial relations with one another.
proposals and counter proposals, offers and counter offers and other negotiations.
Thus collective bargaining:
not only involves the bargaining agreement, but also involves the
bargaining are:
1- Collective Process: The representatives of both the management and the
employees participate in it. Employer is represented by its delegates and , on the
other side, employees are represented by their trade union. Both the groups sit
together at the negotiating table and reach at some agreement acceptable to both.
2- Continuous Process : It is a continuous process. It does not commence with
negotiations and end with an agreement. It establishes regular and stable
relationship between the parties involved. It involves not only the negotiation of
the contract, but also the administration or application of the contract also.It is a
process that goes on for 365 days of the year.
3- Flexible and Mobile: It has fluidity. There is no hard and fast rule for reaching
an agreement. There is ample scope for compromise. A spirit of give-and-take
works unless final agreement acceptable to both the parties is reached.
4- Bipartite Process: C.B. is a two party process. Both the partiesemployers and
employeescollectively take some action. There is no intervention of any third
party. It is mutual give and take rather than a take-it-or-leave it method of
arriving at the settlement of a dispute.
5- Dynamic: C.B. is a dynamic process because the way agreements are arrived at,
the way they are implemented, the mental make-up of parties involved keeps
changing. As a result, the concept itself changes, grows and expands overtime. It is
scientific, factual and systematic.
6- Industrial Democracy: It is based on the principle of industrial democracy
where the labour union represents the workers in negotiations with the employer or
employers. It is a joint formulation of company policy on all matters affecting the
labour.
7- Complementary Process : C.B. is essentially a complementary process, i.e.,
each party needs something which the other party has, namely, labour can put
greater productive effort and management has the capacity to pay for that effort
and to organize and guide it for achieving the organizational objectives.
8- It is an Art: Collective bargaining is an art , an advanced form of human
relations.
9- Discipline in Industry: C.B. is an attempt in achieving and maintaining
discipline in the industry.
10- Industrial Juris prudence: It is an effective step in promoting industrial
jurisprudence.
employees.
movement.
b)
c)
organizational matters.
The first two which cover wages, bonus, D.A., retirement benefits, working hours,
holidays with leave, supply of subsidized items like food, transport, housing, etc.
are worker- interest oriented.
The last category comprising union recognition, exclusive bargaining rights,
check-off schemes, workers participation in management, etc. are union-interest
oriented matters.
Stages And Bargaining Process
The C.B. process generally starts as soon as the charter of demands is presented by
the trade unions on behalf of their members to the management. The provisions of
existing agreement continue till a new agreement is signed and enforced.
Usually , there are two stages in collective bargaining :
[A] The negotiation stage
[B] The stage of contract administration.
Trade unions and their members have an obligation to assist the management
in the elimination of waste and in improving the quality and quantity of
production.
Trade unions should resort to strikes only when all other methods of settling
a dispute have failed to bring about satisfactory results.
GRIEVANCE
Definition:
According to Michael Jucius, A grievance can be any discontent or
dissatisfaction, whether expressed or not, whether valid or not, and arising out of
anything connected with the company that an employee thinks, believes, or even
feels as unfair, unjust, or inequitable.
ILO defines a grievance as a complaint of one or more workers related to:
- Wages and allowance
- Conditions of work
- Interpretation of service conditions covering such as OT, Leave, Transfer,
Promotion, Seniority, Job Assignment & Termination of Service
The National Commission on Labour Observed that Complaints affecting one or
more individual workers in respect of their workers
- Wage payments, OT, Leave, Transfer Promotion, Seniority, Work Assignment &
Discharges Constitute Grievances.
The causes of grievances may be broadly classified into the following categories:
(1) Grievances resulting from working conditions
(i) Improper matching of the worker with the job.
(ii) Changes in schedules or procedures.
(iii) Non-availability of proper tools, machines and equipment for doing the job.
(iv) Unreasonably high production standards.
(v) Poor working conditions.
(vi) Bad employer employee relationship, etc.
(2) Grievances resulting from management policy
(i) Wage payment and job rates.
(ii) Leave.
(iii) Overtime.
(iv) Seniority and Promotional.
(v) Transfer.
(vi) Disciplinary action.
(vii) Lack of employee development plan.
(viii) Lack of role clarity.
(3) Grievances resulting from personal maladjustment
(i) Over ambition.
(ii) Excessive self-esteem or what we better know as ego.
(iii) Impractical attitude to life etc.
EFFECTS OF GRIEVANCES:
Frustration
Alienation
De-motivation
Slackness
Low Productivity
Increase in Wastage & Costs
Absenteeism
In discipline
Labour unrest
ESTABLISHING A GRIEVANCE PROCEDURE.
The following principles should be observed while laying down a procedure:
(1) A grievance should be dealt with in the first instance at the lowest level: that is,
an employee should raise his grievance with his immediate superior.
(2) It must be made clear to the employee what line of appeal is available. If he
cannot get satisfaction from his immediate superior, he should know the next
higher authority to which he can go.
(3) Since delay causes frustration and tempers may rise and rumors spread around
the work, it is essential that grievances should be dealt with speedily.
(4) The grievance procedure should be set up with the participation of the
employees and it should be applicable to all in the organisation. The policies and
rules regarding grievances should be laid down after taking inputs from the
employees and it should be uniformly applicable to all in the organisation. It
should be agreed that there would be no recourse to the official machinery of
conciliation unless the procedure has been carried out and there is still
dissatisfaction, and moreover, there must be no direct action on either side, which
might prejudice the case or raise tempers while the grievance is being investigated.
Open door policy:
Under this policy, any employee can take his grievance to the chief boss and talk
over the problem. As the name suggests, the management keeps its doors open for
the employees to share their problems. It is said that this policy can remove the
cause of grievance quickly. Though this policy appears to the attractive, it has
some prerequisites.
The open door policy is workable only in small organizations. In big organizations,
the top management does not have the time to attend to innumerable routine
grievances daily that is the work of lower-level mangers.
Under this policy, the front-line supervisor who should be the first man to know
about the grievances of his subordinates is bypassed. This provokes him in two
ways. First, he thinks the man who skipped him is disrespectful. Secondly, he fears
that he will incur his superiors displeasure because of his failure to handle his
subordinates will interpret this.
Step-Ladder Procedure
Under the step-ladder procedure, the employee with a grievance has to proceed
step by step unless he is able to redress his grievance. According to the Model
Grievance Procedure, an aggrieved employee shall first present his grievance
verbally in person to the officer designated by the management for this purpose. An
answer shall be given within 48 hours. If he is dissatisfied with the answer, the
worker will present his grievance to the head of the department, who will give his
answer within 3 days. If the worker is dissatisfied with the answer, he may ask that
his grievance should be referred to the Grievance Committee, which shall make its
recommendations within 7 days to the manger. The management must implement
unanimous recommendations of this committee. A dissatisfied worker can apply to
the management for a revision of its decision within on weeks time.
STEP 1
Filling
of
complaint
written
STEP 2
Supervisor
Foreman
or
STEP 3
STEP 4
Head
of
department
Joint grievance
committee
STEP 5
Chief executive
LAST
STEP
Voluntary arbitration
SETTLEMENT
CASE SUMMARY
This case is related to The Andhra Pradesh State Road Transport Corporation
which is a state owned passenger transport company. The pay scales in the
corporation are determined on the basis of mutual agreement between the
management and the recognized trade union. The scales are revised once in three
years. The corporation has both the grievance machinery and the collective
bargaining machinery to resolve employee problems.
An agreement had come into force from September, 1988 in which the pay scale of
the class II drivers was enhanced from Rs. 600 900 to Rs. 900 1600. The
agreement further said that the pay scales of the drivers drawing the scale of Rs.
600 1200 will be fixed in the scale of Rs. 900 1600.
Now the corporation had absorbed 10 drivers who were with the private passenger
transport companies upon the nationalization of that rout at a pay scale of Rs. 600 1200.
When these drivers demanded the increased pay scale they were refused and told
that only the drivers drawing the pay scale of Rs. 600 1200 were eligible for the
raise. The drivers then took up the matter with their immediate superior who was a
foreman. They were told to raise this issue in collective bargaining with the help of
trade union leaders as it was a policy issue. The trade union included this item in
their draft agenda but the collective bargaining committee deleted this it saying that
this issue can be settled through grievance machinery as only 10 drivers out of
3000 of the corporation are concerned with this issue.
THE PROBLEMS:
WAGE RELATED PROBLEM : The new hires demand a pay equivalent to
that given to the existing employees as per the policy of the company.
CLASSIFICATION OF PROBLEM: The employees are not sure whether to
take up the matter to the grievance committee or the collective bargaining
committee. The collective bargaining committee has also asked them to go
to the grievance committee only because only 10 out of the 3000 employees
are concerned.
AMBIGUOUS TERMS OF THE AGREEMENT:
agreement mentions that the pay scales of the drivers drawing the scale of
Rs. 600 1200 will be fixed in the scale of Rs. 900 1600 , it says nothing
about the employees that will be hired in future for the same category of
drivers.
QUESTIONS:
Ques 1. Who is correct? The personnel department or the foreman or the
collective bargaining committee?
Sol. We will have to first understand the view point of each of the party:
1. The personnel department has fixed the pay in accordance with the
literal interpretation of the agreement which states that pay scales of
the drivers drawing the scale of Rs. 600 1200 will be fixed in the
scale of Rs. 900 1600. Since the personnel department is concerned
with the implementation of the wage policy it is, to some extent, not at
fault.