Collective Bargaining

Nitin Kutre Pooja Maheshwari Ankit Majethia Mihir Mehta Nirav Mehta 31 32 33 34 35

Collective 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

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/service  Non       

Economic Victimization of workers Ill treatment by staff members Sympathetic strikes Political Factors Indiscipline Union Recognisition Changes in Technology

conditions/safety measure

Functions of Collective Bargaining

Collective bargaining acts as a technique of long run social change, bringing rearrangements in the power hierarchy of competing groups. Collective bargaining has served as a peace treaty between two parties in continued conflict

Agent of Social Change

A Peace Treaty

Creates a system of industrial jurisprudence

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.

Process of Collective Bargaining

Union Claim Management Proposal

Negotiation 3rd Party Referral Collective Agreement

Breakdown in Negotiation
  

Third party intervention Union strategies for overcoming breakdowns Management strategies for overcoming breakdowns

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 issues under 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 for union to demand higher wages  Micro Economics Rate of Profits, Trends, etc  Industrial Environment Size of Plant & technological growth eg larger plants can increase wages, as compared to seasonal plants  Social & Political Factors Percentage of omen in workforce, Rivalry among unions  Time & Era As we have observed collective bargaining has Developed rapidly when government intervention weakened

Collective Agreement
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 Bargaining Agreement

y Written document regarding working

conditions and terms of employment y Legally, a CBA binds only the parties to it. 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 worker s 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 later

only after 1900. y In 1918 Gandhiji as a leader of Ahmadabad Textiles workers advocated the resolution of conflict through CB agreements. y The Government of that time took steps like setting up machinery for negoations. The Trade union movement & also CB agreements become a popular after independence.

Conditions For Successful Collective Bargaining

y Trade Union Recognition y Observance of Agreements y Support of Labour Administration Authorities y Good Faith y 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 during negotiations. 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 nonrecognition. y So, unanimous decision is unlikely to be presented at the negotiating table. Legal problems: Now that adjudication is easily accessible, the CB process is losing its importance.

Causes of limited success of CB in India:

Problems from Government: The Government has not been making any strong efforts for the development 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 has increased 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.

legality and recognition of collective bargaining in India

y y y

Industrial Disputes Act, 1947 - The Act is basically enacted for providing the mechanism for the settlement of disputes Trade Union Act, 1926 - The Act provides for the registration of trade union and determines the rights & liabilities of the union The Industrial Employment (Standing Orders) Act, 1946 Standing Order is drafted by the employer which contains the conditions of employment The Constitution of India - The Constitution of India in the Chapters on Fundamental Rights and Directive Principles of State Policy justify the legality of collective bargaining Recognition The willingness of an employer or of an employers association to bargain with a particular union is known as the recognition of the union

Case Study on Maruti Suzuki India Ltd.

Case Study on Several Strikes in MSI Ltd. in 2011

 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.

Strike in June 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 from Aug. 29 to Oct. 1, 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, workto-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 the Company 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 Oct. 8 to Oct. 21, 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 the Management, 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.

Suggestion
 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.

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