TRADE UNION II Unit Ir-conversion-gate 02

7/17/2019 TRADE UNION II Unit Ir-conversion-gate 02

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II Unit

IR



Origin of trade union Trade union in India, as in the most other countries, have

bee the natural outcome of modern factory system. Thedevelopment of trade unionism in India has a history-

1. Early period:- Eorts towards organiing the wor!ersfor their welfare were made during the early period ofindustrial development by social wor!ers, philanthropistand other religious leaders mostly on humanitariangrounds.

the "rst #actories $ct, %&&%, was passed on the basis ofrecommendation of the 'ombay #actory (ommission.

)ue to the limitation of the $ct, the wor!ers in the'ombay Te*tile Industry under the leadership of +.o!hande demanded reduced hours of wor!, wee!ly restdays, mid day recess ad compensation for inuries.



The 'ombay ill owner/s $ssociation concededthe demand for wee!ly holidays.

(onse0uently, o!hande established the "rst1or!er/s Union in India in %&23 in the name of'ombay ill- hands $ssociation.

4ome other important unions established duringthis period.



2. Modest Beginning The beginning of the labour movement in the modern sense

started after the outloo! of 1orld 1ar I in the country. economic, social and political conditions of the day in5uenced

the growth of trade union movement in India.

Establishment of I6 in %2%2 helped the formation of tradeunions in the country.

$ number of trade unions were established between %2%2 7%289.

(ategory wise unions li!e 4pinner/s union and 1eaver/s unioncame into e*istence in $hmedabad under the inspiration ofahatma :handhi.

These unions were later federated into an industrial union!nown as $hmedabad Te*tile abour $ssociation.

This union has been formed on systematic lines and has beenfunctioning on sound lines, based on the :handhian ;hilosophyof mutual trust, collaboration and non-violence.



.nions

T!e period "etween 1#2$-1#3% :- The year %28%saw as the emergence of communist on the Indian

scene. The $ll India Trade Union (ongress <$ITU(=was captured by the communist .

The moderates formed a new organiation, calledthe $ll India Trade Union #ederation.

Ideological dierence and splits had their eect onstri!es too.

aority of stri!es were failed.

)uring this period, a number of important acts were

passed in the country such as-a. The ines $ct, %289

b.wor!men>s ( compensation $ct, %289

c. The Trade Union $ct, %28?

d. The Trade )isputes $ct, %282



The passing of Trade union $ct ,%28?, gave formalrecognition to the wor!er/s right to organie.

In @uly, %282, The Royal (ommission on labour wasappointed to en0uire into the e*isting conditions of labour

in industrial underta!ings and plantations. In %293, India came under the way of world wide

depression. employers introduced wage-cuts andretrenchment.

The government ultimately banned the communist partyand declared the Trade unions controlled by them as illegal.

$. &ncrease in Trade union acti'ity and unity mo'es <t!e period "etween 1#$(-1#$)* :- this periodwitnessed an increase in the number of registered tradeunions and their membership.

The +ational Trade Union #ederation <+TU#=, which claimeda larger membership than the $ITU( and the $ITU(

merged together in %29&. 6ne of the important reason of merger was that no political

decision should be ta!en unless it command a two- threeunions, it was "nally achieved in %2A3 with +.. @oshi whobecame the :eneral 4ecretary of the $ITU(.



%. nion +cti'ity during t!e && ,orld ,art!eperiod "etween 1#$(-1#$)*

The unity was shattered during the II 1orld 1ar

because of ideological dierence and mountingcost of living.

Industrial unrest increased and the governmentbanned stri!es and loc!outs.

1or!ers realie the need for an organiedmovement to secure relief.

The realiation lead to an increase in the numberof unions in ay %2AB, the Indian +ational Trade

union (ongress <I+TU(= was born. The I+TU( was the largest federation of trade

unions and therefore the most representativeorganiation of wor!ers in the country.



). T!e ost war and t!e postindependence period after 1#$/*

#or the "rst time, the I+TU( was recognied as the

most representative body of the wor!ing class inIndia in %2A& and its representatives constituted thelabour delegation to the I6 conference in %2A&, theCind adoor 4abha<C4= was formed and in %2A2the united trade congress was formed.

$s years went by, more unions and centralorganiation come into e*istence.

/. resent osition:- at present there are aboutD?,333 registered wor!ers union and %3 centrallabour organiations in our country.

$ very small percentage of these unions regularlysubmit data themselves.

$s it is dicult to !now about their individualcharacteristics and wor!ing.



union

The underlying idea of forming a trade union is tonegotiate and bargain with employers to improve the

service ad employment conditions of wor!ers on theirbehalf.

This collective bargaining process can be possible onlywhen the employer recognies the trade union as a

bargaining agent and agrees to negotiate with itbecause it is dicult to negotiate with multiple tradeunions is a single organiation.

The Trade Union $ct, %28?, the only (entral aw, whichregulates the wor!ing of the unions, does not have any

provision for recognition of trade unions 4ome attempts were made to include compulsory

recognition in the Trade Union $ct in %2AB, %2D3,%2B&ad %2&&, but these did not get materialied.



The usual methods used to determine union strength, whichis the basis for recognition are the followingF-

&. Election "y ecret Ballot:- Under this system, all eligiblewor!ers of an establishment may vote for their chose union

and the elections are to be conducted by neutral agent,generally the Register of Unions, in a manner very similarto the conduct of general elections. 6nce held, the result ofthe elections would remain valid for a minimum period.

&&.!ec- o4 met!od:- under this each individual wor!erauthories management in writing to deduct union feesfrom his wages and credit these to the chosen union. Thisgives management concrete evidence about the respectivestrengths of the union.

&&&.0ule of t!um":- it is one of intelligent guessing bymanagement or general observations to assess the union

strength, either by the response at gate meeting , stri!esor discussions with employees. This not a reliable method,particularly in large establishments can also be subect tochange at short intervals.



In the above methods, the "rst one is an universallyaccepted method used all over the world but there has beenno consensus among the trade unions on that in India.

The second +ational (ommission of abour<8339=considered the issues seriously and made the followingrecommendationsF-

a. 1e recommend that the negotiating agent should beselected for recognition on the basis of chec! o system. $union with ??G membership is entitled to be accepted asthe single negotiating agent, and if no union has the supportof more than 8DG should be given proportionaterepresentation on the negotiating table.

b. 4ecret ballot is logically and "nancially a dicult process incertain industries. (hec! o system has the advantage ofascertaining the relative strength of trade unions. (hec! osystem should be made compulsory for all establishmentsemploying 933 or more wor!ers. Recognition once granted,should be valid for a period of four years.



5nions

The right to raise issues with the management.

Right to collect membership fees within the premisesof the organiation.

$bility to demand chec!- o facility.

$bility to put up a notice board on the premises forunion announcements.

$bility to hold discussions with employees at asuitable place within the premises.

Right to discuss member/s grievance with employer.

$bility to inspect beforehand a place of employmentor wor! of its members.

+ominations of its representatives on committeesformed by the management for industrial relationspurposes as well as in statutory bipartite committees.



nions

The following reasons were identi"ed for the slowprogress of trade union in IndiaF-

1.Emergence of outside leaders!ip:- 6utsideleadership is playing an important role in the Indian

Trade Union ovement due to the inability of insidersto lead their movement.

In view of the low education standards and poorcommand over English language, low level of!nowledge about labour legislation, unsound "nancialposition, fear of victimiation by the employer and lac!of leadership 0ualities, outside leaders have come to

stay. The main reason for this trend is that the Trade Unions

$ct,%28? , itself provided the scope for outsideleadership.

T E E t O t



T e E' E ects o Outs eLeaders!ip

The evil eects of outside leadership analyed bythe +ational (ommission on abour are asfollowsF-

6utside leadership undermined the purposes of Trade Unions and wea!ened their authority,

personal bene"ts ,sometimes, weighed more thanunions

6utside leadership has been responsible for slowgrowth of Trade Unions.

Internal leadership has not been developed fully.

ost of the leaders cannot understand thewor!er/s problems as they do not live the life of awor!er.



2. Multiple nions:- ultiple unions both at the plant andindustry levels pose a serious threat to industrial peace adharmony in India.

The situation of multiple unions is said to prevail when twoor more unions in the same plant try to assert rival claimsover each other and function with overlapping urisdiction.

ultiple unions aects the industrial relations system bothpositively and negatively.

The negative impacts of multiple unions dominate thedemocracy, competition etc.

The nature of competition tends to convert itself into asense of unfair competition resulting in their union- rivalry.

The rivalry destroys mutual trust and cooperation amongleadership.

It is the maor cause for wea!ening the trade unionmovement I India.



9. nion 0i'alry:- The state of rivalry between twogroups of the same union is said to be inter-union rivalry.

Inter ad intra union rivalries have been a potent cause ofindustrial disputes in the country. They are responsible

for wea! bargaining power of trade unions in collectivebargaining. These rivalries are responsible for slow

growth of trade union movement in the country.

$.6inance :- ost of the trade unions in India suer from

inade0uate funds. The unsound "nancial position ismostly due to low membership and low rate ofmembership fee.

The Trade Union $ct, %28?, prescribed the membership feeH 8D paisa per month. 'ut the +ational (ommission on

abour recommended the increase of rate ofmembership subscription from 8D paisa to Rs. % in theyear %223. but the government did not accept thisrecommendation.



$s the +ational (ommission on abour observe, animportant factor limiting the eective functioning ofunions in our country has been their "nancial

wea!ness.JIn most unions, poor "nances are the result ofinade0uate membership strength. This, in turn canbe traced to the small sie of units. The generalpicture of "nances of unions is disappointing.

6ther factors responsible for the unsound functioningof trade union in India areF-

a. Uneven growth

b. Illiteracy

c. ow membership

d.Ceterogeneous nature of labour

e. ac! of interest

f. $bsence of paid oce bearers.



union in &ndia

1. nited la"our front:- unions must present a ointfront. ultiple union dissipate their energies, dilute

their power and reduce their eectiveness. Tradeunions should form a sort of labour party and all thetrade unions in the country should be aliated to it.It gives ade0uate strength to the trade unions bothin industry and ;arliament.

2. &nternal fees :- outside political leadership hasdeveloped due to the absence of internal leadership.6utside leadership is the main cause for the multipleproblems of the trade unions. These problems can beremoved through the development of leadershiptalents from within. anagement should encourageinternal wor!ers to lead their own movement.anagement and trade unions should provideeducational and training facilities for thedevelopment of internal leadership.



9. Mem"ers!ip fees:- the membership fees should beraised as the amount of wages of the wor!ers increasedsigni"cantly. Even the amended Rs. %8K- per annum is notsucient. 4ome other source of "nance may alsoe*plored to ma!e trade union "nancially healthy.

A. Ot!er measures:-

Trade union should e*tend welfare measures to themembers and actively pursue social responsibilities.

4ocial responsibility of trade union should go beyond theirlimited constituency within members only.

Trade union should ma!e eorts to raise their decliningmembership.

$ttracting and retaining new breed of wor!ers by scouting

and monitoring them. Trade union must reorient themselves from political

ideological obsession to 'usiness ;artners in progress,sharing the gains.



'ureaucratic organiation to democratic and serviceorganiation.

(omplacency to struggle.

;ower hunger to service orientation. Trade union should be smart, IT savvy, online wor!ing

to have connectivity to employers abroad as alsoInternational Trade Unions and other Trade bodies.

In order to ma!e members updated, Trade unions must

organie continuous training and developmentprograms.

The Trade Union $ct should be amended in order toavoid dual membership.

There should be legal provision for the recognition of

the representative union in central legislation also.Union should not intervene in day to day matters of

business. They must focus on important issuesaecting wor!ers.

trategies and tactics for



trategies and tactics forremaining union free

anagers develop long- term strategies and eectivetactics to present unioniation of their organiations.ost of them are-

6pen communication.

$ healthy and safe wor!ing environment. Eective remuneration.

Eective training and development programs.

Eective personnel planning, recruitment and selection.

Eective personnel research.

ersonnel researc!



ersonnel researc! The purpose of personnel research is to identify human

resource problems at an early date, so that remedialaction may be ta!en before the problem gets magni"ed.

$ wide range of problems are covered in the personnelresearch such asF- 1age survey Eectiveness of various recruitment sources Test validation

Eectiveness of training eorts 4upervisor/s eectiveness survey Recent labour settlements @ob analysis @ob satisfaction survey

4urvey of employee needs ;erformance appraisal validation $ttitude survey towards reward system $reas of high accident fre0uency Turnover analysis

(ustomer complaints survey



0easons for discouragingunioni5ation "y employers

Employers may discourage unioniation. Their fearabout unions stem fromF-

Increased cost because of higher remuneration andother non- monetary bene"ts and services.

oss of freedom to reward superior performance.

oss of control over operations- erosion ofmanagement/s authority.

ac! of ability to adapt 0uic!ly to changing demands

d i f d



&ntroduction of Tradenion

Employees associations are popularly !nown as tradeunions in IR. Trade unions are not con"ned to merestri!ing and negotiating on behalf of wor!ers. Their roleis wider.

Unions may ta!e their presence felt in recruitment and

selection. They may also decide who is to be hired andunder what conditions. Unions can also play animportant role in deciding who is to be promoted, givena new ob assignment, sent for training, terminated orlaid o. any programs which contribute to L1 andproductivity are underta!en by the management in

consultation with and with the cooperation of theunions

Unions decide wage and salary structure and negotiaterevision once in 9KD years.



7e8nition of Trade nion

Trade unions are voluntary organiations of wor!ersformed to promote and protect their interest throughcollective action.

The Trade Union $ct, %28? de"nes a Trade union ascombination, whether temporary or permanent,

formed- ;rimarily for the purpose of regulating the relation

between

a. 1or!men and employers.

b. 'etween wor!men and wor!men.c. 'etween employers and employers.

#or imposing restrictive conditions on the conduct ofany trade or business and includes any federation oftwo or more trade unions.



nions

+ssociation:- $ trade union is an association orcombination of employees. It has large number of

wor!er members from one or more occupations. 9oluntary :- embership of a trade union is

voluntary. :enerally, there is no legal or otherpressure to oin a trade union and a person can oin

or leave the union on his free will. ermanent :- $ trade union is a continuing or

permanent combination rather then a temporary orcasual combination. It has to be a long- term body

as otherwise it cannot achieve its obectives. nion of common interest:- embers of a

trade union have common interests and problems,which motivates them to unite. $ union see!s toregulate relations between employers and wor!ers.



ollecti'e action:- Trade unions always act

through united action by the members to protectand promote their economic and other interests.

u"- systems:- $ trade union is sub- system ofthe social system. Therefore its character

undergoes change with changes in economic,social, legal and political conditions in the country.$ union functions collectively to protect andpromote the interests of its members within a givensocio- economic system together uni"ed body.



O"ecti'es of Trade nions#ollowing are the obectives of trade unionsF-

To secure for the wor!ers fair wages in the light of thechanging cost of living and prevailing standards of living.

To improve wor!ing conditions by securing shorterwor!ing hours, better leave facilities, ade0uate socialsecurity, better housing and education and other welfarebene"ts.

To assure the wor!ers a share in the increased pro"tabilityof industry through payment of ade0uate bonus.

To ensure security of employment by resistingretrenchment.

To protect wor!ers against e*ploitation and victimiation

by the capitalists. To protect the larger interest of society by assisting in the

improvement of trade and industry.

y wor ers o n ra e



y wor ers o n ra enions;

1or!ers organie themselves into a trade union due to thefollowing reasonsF-

teady employment:- 1or!ers form a trade union tosecure their services. Unions ta!e political action to getlegislative protection against dismissal. They also resistany attempt of the employer to retrench wor!ers.

Economic "ene8ts:- $n individual wor!er is not in aposition to secure good pay and proper wor!ing conditionsfrom the employer. 1or!er oin union because union hasgreat bargaining power to get these economic bene"ts forwor!ers.

!ec on ar"itrary actions:- If wor!ers are not united,an employer may adopt arbitrary policies and proceduresto e*ploit them. 1or!ers form unions to ensure rationaland uniform personal policies and their unbiasedimplementation on the part of management.



Economic security:- Unions protect their membersfrom various possible economic haardous such asillness, accidental inury, unemployment. They

contact employers to pay compensation andretirement bene"ts. Unions also have funds toprovide "nancial support to distressed members.

elf- e<pression:- 1or!ers oin unions to

communicate with management. Union serves as aplatform through which a wor!er can ma!e his voiceheard by the employer.

ense of "elonging:- 'y oining the union wor!ercan associate with fellow wor!ers and gain socialrespect. Ce can also discuss his problems with tradeunion leader. Trade union generate a sprit of self-reliance and self respect among wor!ers.



0ecognition and participation:- wor!ers can gainrecognition as e0ual partners with employer by

oining unions. They can participate in managementof industry. They can in5uence decisions, aectingtheir interests, through collective bargaining.

&ndustrial relations:- $nother reason for wor!ers to

oin a union is the need for an ade0uate machinery tomaintain proper relations between management andlabour. Union provides this machinery throughcollective action.

Leaders!ip :- 4ome wor!ers oin trade unions to

ful"ll their political ambitions. They can use the unionas the stepping stone to become leaders. They mayrise in their political career by obtaining an ocer ofthe union.



6unctions of trade unions ;rotection of wor!ers

;roper standard of living

:rievance redressal

(ollective bargaining

;articipation

;rotests

Education

1elfare and recreation

egislation

Representation $dvice

communication

6unctions relating to &ndustrial



6unctions relating to &ndustrialorgani5ations

To highlight industrial organiation as a oint enterprisebetween wor!ers and management and to promote

identity of interest. To increase production 0uantitatively as well as

0ualitatively, by laying down the norms of productionand ensuring their ade0uate observance.

To help in maintenance of discipline.

To create opportunities for wor!ers participation inmanagement and to strengthen labour managementco-operation.

To create favorable opinion of the managementtowards trade unions and improve their status in

industrial organiation. To impress upon the management the need to adopt

reformative and not punitive, approach towardswor!ers fault.

6 ti l ti t t d i



6unctions relating to trade unionsorgani5ation

To formulate policies and plans consistent with thoseof the industrial organiation and society at large.

To improve "nancial position by "*ing highersubscription, by realiing the union dues and byorganiing special fund raising campaigns.

To train members to assume leadership position. To !eep away from advocating the adoption of unfairpractices.

To save the union organiation from the e*ploitationby vested interests personal and political.

To publicie the trade union obectives and functions,to !now people/s reaction towards them and to ma!enecessary modi"cations.

6unctions relating to



6unctions relating tosociety

To render all sorts of constructive cooperation in

the formulation and implementation of plans andpolicies relating to national development.

To actively participate in the development ofprograms of national development.

To launch social campaign against social evils ofcorruption, casteism, regionalism, linguism, pricerise, blac! mar!eting , smuggling, illiteracy, anddisease etc.

To create public opinion favorable to governmentspolicies and plans, and to mobilie people/sparticipation for the eective implementation.

To enable unorganied sector to organie itself.

Types of trade unions



Types of trade unions• raft union:- It is an organiation of wor!ers employed in

a particular craft, trade or occupation. Therefore, suchunions tend to be well cohesive.

)ue to their identical training and s!ills, members of acraft union tend to develop unity among them. embers are generally crafts concious rather than class

concious. $ craft union has strong bargaining power because its

wor!ers possess a specialied s!ills which cannot be easily

replaced in case of a stri!e. 'ut sometime due to dierent agreement in dierent

crafts, oint action by wor!ers belonging to dierent craftsin not easily possible.

(raft unions tend to oppose technological advancements. (raft unions are horiontal in character because their

members belong to a single process or group of processes. In India, crafty unions are found largely among white-collar

wor!ers and professional such as :overnment employees,ban! employees, doctors, lawyers, teachers etc.

There are very few craft unions of industrial wor!ers.



• &ndustrial unions:- $n industrial union is organied onan industry basis rather than a craft basis.

Its members belong to dierent crafts within the sameindustry.

$hmedabad Te*trile abour $ssociation, the Rashtriyaill adoor 4angh etc*.

These unions are vertical in nature because they consistof all type of wor!ers in an industry.

Industrial unions are more powerful because they consistof both s!illed and uns!illed wor!ers.

4uch a union cuts across s!ill and craft distinctions ofwor!ers.

It is easier for the employer to bargain with one union tocover all wor!ers of a particular industry.

1or!er is saved of the trouble of bargaining with a

number of unions established on a craft basis. Cowever, s!illed wor!ers may feel swamped by uns!illed

wor!ers and their speci"c demands may not be met In these days, technological and mass production have

obliterated the craft distinctions and therefore, industrialunions are the need of the hour.



• =eneral union:- This type of union consists ofwor!ers employed in dierent industries and crafts

within a particular city or region. The @amshedpurabour Union is the e*ample. In India there areseveral industry cum region unions due to theconcentration of some industries in particularregions.

• 6ederations:- These are national level bodies towhich plant level unions, crafts unions, industrialunions and general unions are aliated.

#ederations are the ape* organiations of wor!ers. They act as coordinating agencies. These are alsocalled central trade unions

entral trade unions in



entral trade unions in&ndia

Indian +ational Trade Union (ongress<I+TU(=,%2AB

$ll India Trade Union (ongress <$ITU(=, %283

(enter of Indian Trade Unions <(ITU=, %2B3

'hartiya adoor 4angh <'4=, %2DD

Cind adoor 4abha <C4=, %2A&

United Trade Union (ongress <UTU(=,%2B%

Cind adoor Mishan ;anchayat <CM;=, %2?8 +ational #ront of Indian Trade Unions <+#ITU= ,

%2?B

ollecti'e Bargaining



ollecti'e Bargaining

• (ollective bargaining is a procedure by which the termsand conditions of wor!ers are regulated by agreementbetween their bargaining agents and employers.

• The basic obective of collective bargaining is to arriveat an agreement on wages and other conditions ofemployment.

•

The underlying idea of collective bargaining is that theemployer and employee relations should not be decideunilaterally or with the intervention of any third party.

• 'oth parties must reconcile their dierence voluntarilythrough negotiations, yielding some concessions andma!ing sacri"ces in the process.

• 'oth parties have, more or less, realied theimportance of peaceful coe*istence for their mutualbene"t and continued progress.



• Industrial bargaining has three approaches-

I. Unilateral approach in which the employer alonedecides the terms and conditions of employment. This

is !nown as individual bargaining.II. 'ilateral approach in which the employer and wor!er

negotiate with each other. 1hen wor!er menK theirassociation and their representatives negotiate withone another, it is !nown as bipartite collective

bargaining.

III.Tripartite approach in which besides the two mainparties, a third party also intervenes to facilitatesettlement.

•(ollective bargaining is a process of oint decisionma!ing, a democratic way of life in industry. itestablishes a culture of bipartism and ointconsultations for establishing industrial harmony.

e n t on o co ect 'e



e n t on o co ect 'e"argaining

It is called collectiveJ because both employers and

wor!ers act as a group rather than as individuals, andit is described as bargainingJ because the method ofreaching an agreement involves approach proposalsand current proposals, oers and counter- oers and agive and ta!e approach.

$ccording to I6 it is de"ned as, negotiations aboutwor!ing conditions and terms of employment betweenan employer and one or group of employers or one ormore employees organiation. 6n the one hand, andone or more representatives of wor!er/s organiations

on the other, with a view to reaching agreement.J (ollective bargaining is a continuous process of solvingproblems, on the principle of give and ta!e andbalance of power.

6eatures of collecti'e



6eatures of collecti'e"argaining

• ollecti'e :- It is collective in two ways. 6ne is that all the

wor!ers collectively bargain for their common interests andbene"ts. 4econd is that wor!ers and management ointlyarrive at an amicable solution through negotiation.

• trengt!:- $cross the table both parties bargain from aposition of e0ual strength. It is industrial democracy at wor!.

•

6le<i"le:- it is a group action where representatives ofwor!ers and management e*pend energies in order to arriveat a consensus. This is the uni0ue feature of collectivebargaining is that usually the parties concerned startnegotiations with entirely divergent views but "nally reach amiddle point acceptable to both. It is a give and ta!e process.

•9oluntary:- 'oth wor!ers and management come to thenegotiating table voluntarily in order to have a meaningfulview on various troubling issues. They try to probe eachother/s views thoroughly before arriving at an acceptablesolution.



• ontinuous :- It is a continuous process. It does notcommence with negotiations and end with an agreement. The agreement is only a beginning of collective bargaining .

It is a continuous process which includes implementation ofthe agreement and also further negotiations.

• 7ynamic:- It is a dynamic process because the wayagreements are arrived at , the way they implemented themental ma!e 7 up of parties involved !eeps changing. $s aresult, the concept itself changes, grows and e*pands over

time.• ower relations!ip :- 1or!ers want to gain the ma*imum

from management and management wants to e*tract thema*imum from wor!ers by oering as little as possible. Toreach a solution, both have to retreat from such positionsand accept less than what is as!ed for and give more thanwhat is on oer. 'y doing so management tries to retain itscontrol on wor! place matters and unions attempt tostrengthen their hold over wor!ers without any seriousdilution of their powers.



• 0epresentation:- The chief participants incollective bargaining do not act for themselves.

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

• Bipartite process :- The employers and theemployee negotiate the issues directly, face to

face or across the table. There is no third partyintervention.

O"ecti'es of collecti'e



O"ecti'es of collecti'e"argaining

To settle disputes relating to wages and wor!ing conditions.

To protect the interests of wor!ers through collective action.

To resolve the dierences between wor!ers andmanagement through voluntary negotiations and arrive at

a consensus. To avoid third party intervention in matters relating to

employment.

Types of "argaining



Types of "argaining• onuncti'e "argaining :- The parties try to

ma*imie their respective gains. They to settleeconomic issues such as wages, bene"ts, and bonusetc through a ero sum game. Unions negotiate forma*imum wages. anagement wants to yield as littleas possible- while getting things done through wor!ers.

• o-operati'e "argaining:- 1hen companies are hitby recession. They can not oer the !ind of wages and

bene"ts demanded by wor!ers. $t the same time theycannot survive without the wor!er/s support. 'othparties realie the importance of surviving in suchdiculty and are willing to negotiate the terms ofemployment in a 5e*ible way.

abour may accept a cut in wages in return for obsecurity and higher wages when things improve.anagement agrees to modernie and bring in newtechnology and invest in mar!eting eorts in a phasedmanner.

d ti " i i I thi th d ! /



• roducti'e "argaining :- In this method wor!er/swages and bene"ts are lin!ed to productivity. $standard productivity inde* is "nalied throughnegotiations initially. 1or!ers do not have to perform

at e*ceptionally high levels to beat the inde*. If theyare able to e*ceed the standards productivity normswor!ers will get substantial bene"ts. $ managementgain control over wor! place relations and is able totighten the norms still further in future negotiations.

• omposite "argaining:- In this method labourbargains for wages as usual but goes a step furtherdemanding e0uity in matters relating to wor! norms,employment levels, manning standards,environmental haards, sub- contracting clauses etc.

Through composite bargaining unions are able toprevent the dilution of their powers and ensure ustice to wor!ers by putting certain limits on thefreedom of employers. #or the employer this is lesserevil when compared to stri!e and loc!outs.

rocess of collecti'e



rocess of collecti'e"argaining

;rocess of collective bargaining involves the following

stagesF-

• tep &: re->egotiation !ase :- This is the stage

before starting collective bargaining. $t this stage, themanagement wants to estimate the power and capacity

of labor unions. $t this stage, all the relevant data,information and "gures are collected so that the stage

may be prepared for negotiation.

• tep && : election of >egotiators:- at this stage,

both the management and labour unions select their

representatives who will ta!e part in negotiations fromtheir side. 6nly such persons are selected as negotiatorswho are fully ac0uainted with the problems on whichnegotiations are going to be held.



• tep &&& : trategy of Bargaining :- anagement

should decide the basic strategies and policies that willbe followed at the time of bargaining with employees.

Every thing must be made clear before going to thebargaining table. In addition to this, the managementshould get due powers to enter into agreements withwor!ers. 4imilarly, labor unions should also determinethe strategies on the basis of which they will ta!e partin negotiation.

• tep &9 : Tactics of Bargaining :- The techni0ue ofcollective bargaining depends upon the principle of

:ive and Ta!eJ. 'oth the parties try to get more than

they sacri"ce. $ll the aspects of contracts arediscussed in details. $fter this, the decisions areresolved and reviewed. The services of governmentmediators can also be used if re0uired.



• tep 9 : ontract :- "fth stage of the process of

collective bargaining is to enter into a collectiveagreement. 4uch agreements are made for a

certain time these agreements give full details ofsecurity of ob, grievance handling procedure,promotion policy, transfer policy, rules regardinglayo, rules regarding retrenchment, hour of wor!,

rules regarding leaves, incentive schemes,security and health, managerial liability etc

• tep 9& : &mplementation of t!e contract : The last stage of the process of collective

bargaining is the implementation of theagreements entered into between management adlabor unions. 'oth the parties should honor theseagreements implement them whole heartedly.

TRADE UNION II Unit Ir-conversion-gate 02

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Transcript of TRADE UNION II Unit Ir-conversion-gate 02