Collective bargaining

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DEDICATION DEDICATION WeWe dedicate our work to dedicate our work to

our family. A special our family. A special feeling of thanks to our feeling of thanks to our loving parents whose loving parents whose words of encouragement words of encouragement encourages us.encourages us.


Introduction to Introduction to the topic:the topic:


Collective Bargaining is negotiation between Collective Bargaining is negotiation between an employer and a group of employees to an employer and a group of employees to reach an agreement on working conditions.reach an agreement on working conditions.

Collective BargainingCollective Bargaining


Scope Of Collective BargainingScope Of Collective Bargaining• Wages fixation.Wages fixation.• Increments and bonus payment.Increments and bonus payment.• Hours of work & overtime.Hours of work & overtime.• Terms & conditions of work.Terms & conditions of work.• Safety, welfare and health care.Safety, welfare and health care.


HISTORYHISTORY• The term "collective bargaining" was first The term "collective bargaining" was first

used in 1891 by economic theorist used in 1891 by economic theorist Sidney Web..

• However, collective negotiations and However, collective negotiations and agreements had existed since the rise of agreements had existed since the rise of trade unions during the nineteenth trade unions during the nineteenth century.century.


Stages of Collective BargainingStages of Collective Bargaining1.1. PreparingPreparing2.2. ArguingArguing3.3. SignalingSignaling4.4. ProposingProposing5.5. PackagingPackaging6.6. BargainingBargaining7.7. ClosingClosing8.8. AgreeingAgreeing


Criteria For Making Collective Criteria For Making Collective Bargaining EffectiveBargaining Effective

• Proper selection of negotiating team.Proper selection of negotiating team.• Consider union as a partner. Consider union as a partner. • Understand views and interests of other Understand views and interests of other party with open mind.party with open mind.

• Adequate homework.Adequate homework.• Strikes & lockouts are to be last resorts.Strikes & lockouts are to be last resorts.


Levels of Collective BargainingLevels of Collective Bargaining

Collective bargaining operates at Collective bargaining operates at three levels:three levels:

1. National level.1. National level.

2. Sector or industry level. 2. Sector or industry level.

3. Company/enterprise level.3. Company/enterprise level.


1.1. National level:National level: National bargaining is a negotiation between union National bargaining is a negotiation between union

confederations, central employer associations confederations, central employer associations and government agencies. It aims at providing a and government agencies. It aims at providing a floor for lower level bargaining on the terms of floor for lower level bargaining on the terms of employment. employment.

2. Sector Or Industry Level:2. Sector Or Industry Level:Sector oral bargaining, which aims at the Sector oral bargaining, which aims at the

standardization of the terms of employment in standardization of the terms of employment in one industry, includes a range of bargaining one industry, includes a range of bargaining patterns. patterns.


3.Company level3.Company levelThe third bargaining level involves the The third bargaining level involves the

company and/or establishment. As a company and/or establishment. As a supplementary type of bargaining, it supplementary type of bargaining, it emphasizes the point that bargaining emphasizes the point that bargaining levels need not be mutually levels need not be mutually exclusive.exclusive.


Practical Study of Practical Study of OGDCLOGDCL


OGDCL OGDCL (OIL & GAS DEVELOPMENT COMPANY LTD)(OIL & GAS DEVELOPMENT COMPANY LTD) Created in 1961.Created in 1961. National oil & gas company of National oil & gas company of Pakistan.Pakistan.

listed on the London Stock listed on the London Stock Exchange since 2006.Exchange since 2006.

Share of the total oil and gas Share of the total oil and gas production in Pakistan is 52% and production in Pakistan is 52% and 23% respectively.23% respectively.


MAJOR ACTIVITIES Exploration & Development of Oil & Gas

Resources.

MAIN PRODUCT LINE Crude Oil Gas LPG


Logo of Logo of OGDCLOGDCL


Vision Vision statementstatement"To be a leading multinational Exploration and "To be a leading multinational Exploration and

Production Company".Production Company".

MISSION STATEMENTMISSION STATEMENT““Our mission is to become a competitive, dynamic Our mission is to become a competitive, dynamic

and growing Company, rapidly enhancing our and growing Company, rapidly enhancing our reserves through world class work force".reserves through world class work force".


How Situation OccursHow Situation Occurs• The working pattern of OGDC is a The working pattern of OGDC is a

different from other different from other organizations. organizations.

• The oil and gas fields are located The oil and gas fields are located in remote areas. Most of the in remote areas. Most of the unskilled labor is hired from the unskilled labor is hired from the nearby areas, while skilled staff is nearby areas, while skilled staff is hired from all over the country. hired from all over the country.

• The workings conditions are The workings conditions are tough and frustrations of worker tough and frustrations of worker during stay in fields create during stay in fields create problems for the management.problems for the management.


Labor DemandLabor Demand19th April 2011, the 19th April 2011, the

following demands following demands of labor are:of labor are:Living facility.Living facility.Life insurance Life insurance

facility.facility.Safety measures.Safety measures.Medical facility.Medical facility.


Management’s ActionManagement’s Action In response to the above demands, management decided In response to the above demands, management decided

to have an internal meeting for fulfillment of these to have an internal meeting for fulfillment of these demands and for this purpose management told the Union demands and for this purpose management told the Union Representatives required two weeks time for taking any Representatives required two weeks time for taking any decision in this regard.decision in this regard.

After the lapse of these two weeks, management did not After the lapse of these two weeks, management did not decide anything in favors or against OGDCL labor of remote decide anything in favors or against OGDCL labor of remote areas. areas.


Strikes are to be takenStrikes are to be takenDue to this situation, 4 thousand labors serve a Due to this situation, 4 thousand labors serve a

three days strike notice to the management. three days strike notice to the management. They said that during the strike no work They said that during the strike no work would be done in field as well as in offices. would be done in field as well as in offices.


Union and Management MeetingUnion and Management Meeting• After receiving the above mentioned strike notice, After receiving the above mentioned strike notice,

OGDC management arranged an emergency meeting OGDC management arranged an emergency meeting with the union representatives in OGDC Headquarters. with the union representatives in OGDC Headquarters.

• OGDC Labor Union President Chaudhry Mohammad OGDC Labor Union President Chaudhry Mohammad Akram represents OGDC union, bargain very Akram represents OGDC union, bargain very comprehensively, and forced the management to comprehensively, and forced the management to accept the labor demands.accept the labor demands.


Steps That Are Taken By the ManagementSteps That Are Taken By the ManagementThere are following steps are taken by the management:There are following steps are taken by the management:• Workers spend 45 days in filed and is allowed 15 days Workers spend 45 days in filed and is allowed 15 days

off to live with their families. This helps them to regain off to live with their families. This helps them to regain their energies and remove their frustration.their energies and remove their frustration.

• Management has taken the steps such as facilities of Management has taken the steps such as facilities of life insurance, free medical for workers.life insurance, free medical for workers.

• The Corporation also provides all safety measures and The Corporation also provides all safety measures and use of helmet for the worker in the field. use of helmet for the worker in the field.


SWOT SWOT AnalysisAnalysis


STRENGTHS:STRENGTHS:• Highly Skilled People.Highly Skilled People.• Vast Experience.Vast Experience.• Partner are the biggest Players in Partner are the biggest Players in

the market.the market.• High market capital and revenue.High market capital and revenue.


WEAKNESSESWEAKNESSES• Political InfluencesPolitical Influences• Target Customer is limitedTarget Customer is limited• Market model is not scalableMarket model is not scalable• Third party dependenceThird party dependence• Inadequate FinancingInadequate Financing


OPPORTUNITIESOPPORTUNITIES• Great positioning in the marketGreat positioning in the market• Expanding into vertical marketExpanding into vertical market• Few substitutesFew substitutes• High international MarketHigh international Market


THREATSTHREATS

• TechnologyTechnology• Fear of unproductive wellsFear of unproductive wells• Vast Market Vast Market • Customers have more opportunities Customers have more opportunities

in global marketin global market


CONCLUSIONCONCLUSION• From the above report, concluded that how collective From the above report, concluded that how collective

bargaining is formed and done. bargaining is formed and done. • It is legal tool for the labor to fight their rights.It is legal tool for the labor to fight their rights.• Management realizes that the positive role of trade union Management realizes that the positive role of trade union

has helped in implementation of their policies.has helped in implementation of their policies.• It considers the workers as valuable assets of the It considers the workers as valuable assets of the

corporation and union activities as their genuine right. corporation and union activities as their genuine right. • The labor union feels that good industrial relations are key The labor union feels that good industrial relations are key

to the success of OGDCL.to the success of OGDCL.


RECOMMENDATIONSRECOMMENDATIONS• Use latest technology.Use latest technology.• Hire Skilled labor.Hire Skilled labor.• Hire Engineers from China.Hire Engineers from China.• Provides latest instruments to labor.Provides latest instruments to labor.• Provide batter medical facility. Provide batter medical facility.

Collective bargaining

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