GUIDED BY: Mr.

PRADEEP MURAGUNDI PRESENTED BY: WAQAR MOHSINI 110607014 PHARMACEUTICAL ADMINISTRATION MCOPS

Contents

Trade union Functions Classification Problems Collective Bargaining Process Role Position Types Causes Suggestions Conclusion

Trade Union
Organisation of workers acting collectively, who seek to protect and promote their mutual interests through collective bargaining. An association of workers in one or more profession- an association carried on mainly for the purpose of protecting and advancing the members economic interest connection with their daily work. G.D.H. Cole

Indian Trade Union Act, 1926 defined Trade Union as, Any combination whether temporary or permanent formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, between employers and employers or for imposing restrictive conditions on the conduct of any trade or business and include any federation of two or more trade unions.

Functions

Militant Or Intra-mural Functions

Fraternal Or Extramural Functions

Political Functions Social Functions Ancillary Functions, include-

Communication

Welfare Activities
Education Research

Classification
Based on Ideology

Revolutionary Unions

Believe in destruction of existing social/economic order and creation of a new one. They want shift in power and authority and use of force.

Reformist or Welfare Unions

Work for changes and reforms within existing socio-political framework of society - European Model.

Uplift Unions

Advocate extensive reforms well beyond the area of working condition i.e., change in taxation system, elimination of poverty etc.

Based on Trade

Membership based on trade they represent Craft union(WEST), represents members certified to do certain craft like pipe fitting, Carpentry not in INDIA & SRILANKA. BLUE-COLLAR WORKERS Workers employed on the Production floor or Outdoor Trades(Construction site). WHITE COLLAR WORKERS Employees in shops & offices clerical & allied functions. Not in management grades.
Industry they work Agricultural Labour union or Forest workers union.

Based on Agreement

Closed Shop Union would have sole responsibility and authority for the recruitment of workers. The Taft-Hartley Act of 1947.

Union Shop - All new recruits should join the union within the fixed period after employment.
Preferential shop Union members given preference in filling the vacancy. Agency Shop A non union member has to pay the union a sum equivalent to a members subscription in order to continue employment with the employer. Open Shop - No compulsory membership before & after recruitment - no unions at all.

Problems in Trade Unions

Union Rivalry Political & Outside Leadership

Small size of Unions

Low membership Victimization

Poor Financial Position

Inactive Functioning

Some Solutions to Trade Union problems

United Labour force with ONE objective, policy and programme. Developing efficient leaders. Raising membership fees. Keeping transactions ethical and transparent. Amend the Trade Union Act.

Important Trade Unions of India

AITUC- All India Trade Union
Congress 1920

INTUC- Indian National Trade Union

Congress - 1947

HMS- Hind Mazdoor Sabha- 1948 UTUC- United Trade Unions

Congress- 1949

NFITU- National Front of Indian Trade

Unions- 2008

NLO- National Labour Organization1969

Collective Bargaining

Collective : group action through its representatives Bargaining: negotiating

Collective bargaining is a process of discussion and negotiation between two parties, one or both of whom is a group of persons acting in concern. The resulting bargain is an understanding as to the terms and conditions under which a continuing service is to be performed

According to Indian Labour OrganisationNegotiation about working conditions and terms of employment between an employer and a group of employees or one or more employees 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, relations with one another; fix a large number of detailed conditions of employment; and, during its validity, none of the matters it deals with can in normal circumstances be given as a ground for a dispute concerning an individual worker.

Evolution of Collective Bargaining

Coined by Sydney and Beatrice Webb Industrial Revolution Great Britain The Indian Scenario:
Gandhiji - the leader of the Ahmedabad textile workers -

advocated the resolution of conflict through Collective Bargaining agreements in 1918.

Idea gathered interest only after the Second World War Government took steps like setting up of machinery for

negotiations, conciliation and arbitration. The trade union movement and also Collective Bargaining agreements became popular after Indian independence.

Features of Collective Bargaining

It is a group action as opposed to individual action and is initiated through the representatives of workers. It is flexible and mobile. It is a two party process. It is a continuous process. Collective bargaining is not competitive process but is essentially a complementary process. It is dynamic and not static.

Process of Collective Bargaining

Union Claim Management Proposal

Negotiations Revision / Renewal 3rd Party Referral

Collective Agreement

Role of Collective Bargaining

Increases economic strength of unions. Establishes uniform conditions of work. Ensures prompt and fair redressal of grievances. Avoids conflicts, strikes lock outs, etc. thus avoiding interruptions in work. Is a flexible means of reaching a solution. Promotes stability and prosperity of industry. Lays down fair wages and working norms. Acts as a vehicle of peace.

Position of Collective Bargaining In India

Outsiders in the Process of Collective bargaining

The Trade Unions Act, 1926, permits outsiders to be the office bearers of a

union to the extent of half the total number of office bearers.

Politicization of Trade-Union Movement in India

It is well known that the trade-union movement in India is divided on political lines and exists on patronage of various political Parties.

Critical Evaluation

In Indian labour arena, multiplicity of unions and Inter-union rivalry.

Statutory provisions for recognizing unions as bargaining agents are absent.

Types of Bargaining

Distributive Bargaining Issues like wages, salaries are discussed. One partys gain is another partys loss. Attitudinal Bargaining Efforts are made to change thinking, trust, freindliness and attitude of both the parties. Integrative Bargaining Equal gain of both the parties is ensured, at least neither loses.

Intra-Organisational Bargaining Both the parties prefix their own strategy by consensus.

Levels of Collective Bargaining

National Level Is a bipartite or tripartite form of negotiation between union confederations, central employer associations and government agencies. Industry/Sector Level Aims at the standardization of the terms of employment in one industry, includes a range of bargaining patterns. Company/Enterprise Level Industrial activities covered and may be either split up according to territorial subunits or conducted nationally.

Reasons for Limited Success

Problems with unions. Problems from government.

Legal problems.
Political interference. Attitude of management.

Suggestions for Effective Functioning

Change in attitude of both- employer employees.

Negotiations will be successful, based on facts and figures to support their point of view.

Unfair labour practices should be avoided and abandoned by both. The terms of contract should be put in writing and documented.

Once an agreement is reached, it must be honoured and fairly

implemented.

A provision for arbitration should be incorporated in the agreement.

Case Study

The General Motors- United Auto Workers deal -2007- US Labour unrest at Honda Motorcycle and Scooter India (private) Limited -2005

Conclusion

Existence of unions will replace conflict or violence between workers and employers with fruitful negotiation. Collective Bargaining is the proper way of differentiating the management/executive from its labour workforce. Negotiations should be guided by good faith. Parties shall not negotiate on matters they do not have control.

Reference
1.

Subba Rao P. Essentials of Human Resource Management And Industrial Relations. 2nd edition. Mumbai: Himalaya. 2006. p. 506-537, 571-590. Labour Union and Collective Bargaining [internet] 2007 [cited 2012 February 12]; Available from: http://4ltrpress.cengage.com/busn/app/app1-unions.pdf Labour Unrest at Honda Motorcycle & Scooter India (Private) Limited [internet] 2008 [cited 2012 February 15]; Available from: http://www.icmrindia.org/casestudies/catalogue/Human%20Resou rce%20and%20Organization%20Behavior/HROB104.htm

2.

3.

4.

Collective Bargaining Process in India: a Critique [internet] 2008 [cited 2012 February 18]; Available from: http://www.articlesbase.com/organizational-articles/collectivebargaining-process-in-india-a-critique-539870.html Collective Bargaining In India [internet] 2006 [cited 2012 February 15]; Available from: http://www.scribd.com/doc/26670160/Collective-Bargaining-inIndia-Project Collective Bargaining: The General Motors-United Auto Workers Deal [internet] 2008 [cited 2012 February 15]; Available from: http://www.icmrindia.org/casestudies/catalogue/Human%20Reso urce%20and%20Organization%20Behavior/HROB109.htm

5.

6.

Where trade unions are most firmly organized, there are the rights of people most respected
Samuel Gompers, first president of the American Federation of Labour