TRADE UNIONS & Collective Bargaining

8/8/2019 TRADE UNIONS & Collective Bargaining

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TRADE UNION THEORIES

Karl Marx- Class conflict and communist

manifesto Natural outcome of capitalism

Sydney and Beatrice Webb-The socialist pattern

of society-To usher in socialism through politicalaction

Robert Hoxie-Unions under the American

Capitalist System-Less dogmatic more pragmatic

Mahatma Gandhi-The concept of Trusteeship-stewardship of ones possessions to increase

wealth using ones talent and deploying the

surplus wealth in public causes


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TRADE UNIONS

Definitions:

A continuous association of wage earners for the purposeof maintaining or improving the conditions of their workinglives- Sydney & Beatrice Webb

A trade union means an association of workers in one ormore occupations-an association carried on mainly for thepurpose of protecting and advancing the memberseconomic interest in connection with their daily work.-GDH Cole

Any combination, whether temporary or permanent,formed primarily for the purpose of regulating the relationsbetween workmen and employers or workmen andworkmen or employers and employers or for imposingrestrictive conditions on the conduct of any trade orbusiness and includes any federation of two or more tradeunions Defined in Trade Union Act 1926


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The year 1918 was an important one for the Indian trade unionmovement.

The industrial unrest that grew up as a result of grave economic

difficulties created by war. The rising cost of living prompted theworkers to demand reasonable wages for which purpose theyunited to take resort to collective action.

The swaraj movement intensified the movement, widened the gulfbetween the employers and the employees and brought about amass awakening among the workers demanding racial equalitywith their British employers.

The success of the Russian Revolution of 1917 created arevolutionary wave of ideas and a new self-respect andenlightenment, and added momentum to the feeling of class-consciousness among laborers.

The establishment of the I.L.O., in 1919, gave dignity to theworking class and also an opportunity to send a delegation to theannual conference of this body.

The non-co-operative movement of Gandhiji during 1920-21 andhis support to the demands of industrial labour also greatlyinfluenced the working class movement.


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In 1924, a violent and long-drawn-out strike by unions led to the arrest,prosecution, conviction and imprisonment of many communist leaders. The rapidgrowth of the trade unionism was facilitated by several factors, such as:

The growth of anti-imperialist national movement;

The brutal violence and repressive measures let loose by the British government,particularly the Jallianwala Bagh massacre, Rowlatt Act, indiscriminate arrestsand imprisonment of national leaders and Satyagrahis,

The phenomenal profits earned by the capitalists in the face of falling real wagesduring the post-war period


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As pointed out earlier, when attempts to restructure the AITUC failed, thosebelieving in the aims and ideals other than those of the AITUC separated from theorganization and established the Indian National Trade Union Congress (INTUC) inMay, 1947.

It reads: Congressmen in general and particularly those working in the field oflabour have found it very difficult to co-operate any longer with the AITUC which

has repeatedly been adopting a course completely disregarding, or even in oppositionto the declared policy and advice of the Indian National Congress.

The HMS was launched ostensibly with a view to keep the trade union movementfree from domination by government and political parties and the methods to beemployed were to be peaceful, legitimate and democratic.

In 1958, the HMS and the UTUC reached an agreement to create a joint front

against the AITUC which was working inroads in their membership.

THE POST-INDEPENDENCE PERIOD (FROM 1947 TO-DATE)


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As regards leadership, all the four organizations have their politicalaffiliations, and the leadership, therefore, lies in the hands of thepoliticians, and not in those of the working class, which is yet illiterate andbackward to wield any influence.

The AITUC is pro-communist. It is led by the Right CPI. Its attitudetowards the government is not entirely hostile, but of course highly critical

of the government.

The UTUC is radical, non-communist and anti-INTUC. It is led by someindependent trade union leaders, the Forward Block and the RevolutionarySocialist Party.

On the international level, the INTUC is affiliated to the InternationalConfederation of Free Trade Unions (ICFTU) an organization mainly

supported by the Anglo American block; while the AITUC is affiliated to theWorld Federation of Trade Unions (WFTU), supported by the Communistblock.

POLITICAL AFFILIATIONS


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THE OBJECTIVES OF ANY TRADE UNION ARE

AS FOLLOWS:

(i) To protect the working conditions and conditions of work of theemployees.

(ii) To promote the working conditions and conditions of work of theemployees.

(iii) To promote with special care and interest the social, cultural andeducational interest of the employees.

(iv) To improve the quality of work life by inducing better work culture. (v) To develop and grow the knowledge, skill, performance and potential

of the employees to enable them to take up better and higher positions withinthe company.

(vi) To provide for various type of welfare facilities not only at the place ofwork but also at the place of residence, for their comfort, entertainment andleisure.

(vii) To help employees in redress of their individual as well as collective

grievance by effectively and efficiently taking it up with management fromtime to time.

(viii) To provide counseling services in general and with special care andconcern to employees who are habitually absentees, drunkard, drugaddicts, womanizers, gambler and indebtors.

(ix) To provide various services and information to improve the quality offamily life.


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Registration of Trade Unions:

The procedure for registration of Trade Unions is givenunder the Trade Unions Act 1926. Although there is nolegal obligation on a Trade Union to get itself registered

under the Act, but a registered Trade Union has certainprivileges and advantages vis--vis a unregistered Union.

(a) Procedure for registration(b) Application for registration

(i) The names, occupations and addresses of

members making the application.(ii) The name of the trade union and the address

of its head office.(iii) The titles, names, ages, addresses and

occupation of the officers of the trade union.


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(c) Provisions to be made in the rules of a Trade Union:In order to be eligible for registration, a Trade Union should constitute

its executive in the accordance with the provisions of Trade Union Act, 1926and make rules for following matters:

(i) The name of the Trade Union.(ii) The whole of the objects for which are Trade Union has been formed.(iii) The whole of the purpose for which the general funds of a Trade Unionshall be applicable, all of which shall be lawful purpose under the Act.(iv) The maintenance of a list of the members of the Trade Union andAdequate facilities for the inspection thereof by the office bearers andmembers of the Trade Union.(v) The admission of ordinary members who shall be persons actuallyengaged or employed in the industry with which the Trade Union is connectedand also the admission of the number of honorary or temporary members asoffice bearers as required under section 22 to form the executive of the TradeUnion.(vi) The payment of the subscription by members of the Trade Union whichshall be not less than twenty five naya paise per month per member.(vii) The conditions under which any member shall be entitled to any benefitassured by the rules and under which any fine or forfeiture may be imposed onthe members.(viii) The manner in which the rules be amended, varied or rescinded.(ix) The manner in which the members of the executive and other officebearer of the trade union shall be appointed and removed.(x) The safe custody of the funds of the Trade Unions, and annual audit insuch manner may be prescribed, of the account and adequate facility forinspections of the account books by the officer bearers and members of theTrade Union.(xi) The manner in which the Trade Union may be dissolved.


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Over and above framing rules on the above matter, the Trade Union mayframe any other rules for governing the conduct of its office bearer as wellas members. All the rules are to be framed before the Trade Union appliesfor registration. These rules do not acquire any statutory force, once the

registration is granted by the registrar. These rules are contractualobligation between members and its office bearer for their mutual conductof behaviour and governance of the Trade Union as a separate legalentity. All these provisions under the Act has been made keeping in mindthe permanent interest of the members and his right to have access to alltypes of information in which he may be interested.

Status and Privileges of Registered Trade Union

(a) Status:(b) Privileges:Over and above all these, a registered trade union has following privilegesin law;(i) Fund for Political activities.(ii) Immunity from Punishment for criminal conspiracy(iii) Immunity from civil suit

(iv) Right to declare as Protected workman(v) Right to represent its members(vi) Right to consultation(vii) Enforceability of agreement(viii) Right to inspect books of trade union


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Distinction between Registration & recognition

Privileges of recognised unions

Trade union recognition

y Closed shop/Union shopy Membership verification

y Check-off

y Secret ballot

The problem of Free Riders Non-Union Firms


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TYPOLOGY OF TRADE UNIONS

Occupational unions

Industrial unions

General Unions

Territorial unions

Enterprise unions

State sponsored unions


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CHALLENGES FACING TRADE UNIONS

Decline in membership

Decline in state support

Deregulation, decentralisation of job

Repudiation of their right by employers,consumers

Changing aspiration of new generation workforce

Direct communication, participation by workers

Reduced capacity to mobilise worker for conflict

Imperative need to cooperate with management


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INTERNAL CHALLENGES

Low membership density

Declining union membership

Representativity-CTUOs-4state & 4 industries

Poor finances

EXTERNAL CHALLENGES

Global competition

Rapid changes in technology

Shifting attitude of Govt

Managerial strategies & HRM policies

Assertion of right by consumers & community


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COLLECTIVE BARGAINING - CONCEPT

The term collective bargaining extends to allnegotiations that take place between anemployer, a group of employers, or one or moreemployers organisations, on the one hand, and

one or more workers organisations, on the otherto

y Determine the working conditions and terms ofemployment and/or

y Regulate relations between employers and workers

and/ory Regulate relations between employers or their

organisations and a workers organisations

It is a method by which trade unions protect, safeguard,and improve the conditions of their membersworking lives.


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COLLECTIVE BARGAINING Collective Bargaining is a process in which the representatives of

a labour organization & the representatives of businessorganization meet and attempt to negotiate a contract oragreement, which specifies the nature of employee-employer unionrelationship.

FLIPPO

Process involving discussions and negotiations

collective group

'bargaining' proposals and counter proposals

to reconcile their conflicting interests

is a flexible approach


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EVOLUTION OF COLLECTIVE

BARGAINING

Coined by Sydney and Beatrice Webb

Industrial Revolution Great Britain

The Indian Scenario:

y Gandhiji - the leader of the Ahmadabad textile

workers

y

Idea gathered interest only after the Second WorldWar

y GOI took steps like setting up of machinery for

negotiations, conciliation and arbitration.


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CHARACTERISTICS OF

COLLECTIVE

BARGAINING

It is a group process, wherein one group, representing

the employers, and the other, representing the

employees, sit together to negotiate terms of

employment.

Negotiations form an important aspect of the process

of collective bargaining i.e., there is considerable scope

for discussion, compromise or mutual give and take incollective bargaining.


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Collective bargaining is a process in the sense that it

consists of a number of steps. It begins with thepresentation of the charter of demands and ends with

reaching an agreement, which would serve as the basic law

governing labor management relations over a period of time

in an enterprise. Moreover, it is flexible process and not

fixed or static. Mutual trust and understanding serve as theby products of harmonious relations between the two

parties.


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It is a bipartite process. This means there are always

two parties involved in the process of collectivebargaining. The negotiations generally take place

between the employees and the management. It is a

form of participation.

Collective bargaining is a complementary process i.e.

each party needs something that the other party has;

labor can increase productivity and management can

pay better for their efforts.


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COLLECTIVE BARGAINING

PROCESS

Prepare

Discuss

Propose

Bargain

Settlement


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LEVEL OF BARGAINING &AGREEMENT

National Level Agreements

Industry-cum-Region-wide agreements

Firm/Plant-level agreements

Duration of agreement

Coverage

COLLECTIVE BARGAINING & STAKEHOLDERS

The Government

The employers/ Management The workers/Trade unions

The consumers and community

Relations within the enterprise


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NEGOTIATING TECHNIQUES & SKILLS

Result in

WIN-LOSE

LOSE-WIN LOSE-LOSE

WIN-WIN


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IMPORTANT POINTS FOR GETTING WIN-

WIN RESULT

Focus on their interests, not take position

Focus on the problem, not the person

Invent multiple solutions

Be creative Expand the pie

Non-specific compensation

Log rolling-CoD long-go for common interest

Bridge the gap in perceptions thro reformulationof the issue-how issue is framed-examine both

side


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FACTORS CONTRIBUTING TO THE SUCCESS

OR FAILURE OF CB

Knowledge, awareness & skill

Centralisation vs decentralisation and delegation

The use of language, patience, civility, courtesy

and decorum Back seat pedaling/driving-extraneous influence

Openness/transparency in info sharing


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COLLECTIVE BARGAINING

AGREEMENT

Written document regarding workingconditions and terms of employment

Legally, a CBA binds only the parties

to it.


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CONTENTS OF COLLECTIVE BARGAINING

AGREEMENT The date of commencement of the

agreement

Its duration

A definition of terms

The procedure for settling disputesregarding interpretation, as well as otherdisputes.

The consequences in the event of breachesof the agreement

As regards wages, exactly how conversionof employees' wages to the new scales is tobe effected.


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CLOSURE & AGREEMENT

Define the scope

Define timeframe/duration

Write clearly on what agreed

Specify the conditions Lay down the procedure for dealing with

interpretation

Take your party members into confidence

Sign the agreement, if legal framewok warrantsregister it

Circulate among members

Be tactful at press

TRADE UNIONS & Collective Bargaining

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