|
 |




  

Presented By :
ȈShubhi Singh BBA4530/09
ȈMeenakshi Karhana BBA4537/09
 |

According to Trade Unionǯs ACT 1926, A Trade Union is any combination of

persons whether temporary or permanent primarily, for the purpose of
regulating the relations either between workers & employers or between
workers & workers , and for imposing restrictive conditions on the conduct of
any trade or business and includes the federation of two or more Trade Unions.
 |




1. To secure and, if possible, improve the living standards and economic

status of its members.
2. To enhance and, if possible, guarantee individual security against threats
and contingencies that might result from market fluctuations,
technological change, or management decisions.
3. To influence, power relations in the social system in ways that favour
and do not threaten union gains and goals.
4. To advance, the welfare of all who work for a living whether union
members or not.
5. To create mechanisms, against the use of arbitrary and capricious
policies and practices in the work place.
  |

 





mollowing factors play role in origin of Employee Unions:

1. Working Environment : Inadequate staffing , Mandatory overtime, Poor working
conditions.
2. Compensation : Non-competitive pay, Inadequate benefits, Inequitable pay raises.
3. Management style : Arbitrary Management Decision Making, Use of fear, lack of
recognition.
4. Organization treatment : Job insecurity, Unfair discipline and policies,
harassment and abusive treatments, not responsive to complaints.
Individuals join Unions for many different reasons, and these
reasons tend to change over the time. They may involve
dissatisfaction with management in terms of
compensation, job security and management attitude;
need for a social outlet to increase the sense of solidarity,
opportunity for leadership for the Union leaders into
managerial ranks as Supervisors,
forced Unionization because the right to work laws
instigated by Indian Government and,
peer pressure of the members of the work group.
A Union is an organization that represents Employeeǯs
interest to management on issues such as wages, working
hours and working conditions.
 


|



Under the Collective Bargaining system, Union and Management negotiate

with each other to develop the work rules. The performance of the mutual
obligation of the Employer and the Representative of the employees to meet
at reasonable times and confer in good faith w.r.t. wages, working hours and
other terms and conditions of employment, or the negotiation of an
agreement , or any question arising there under, and the execution of a
written contract incorporating any agreement reached if requested by either
party; such obligation does not compel either party to agree to a proposal or
require the making of a concession.
 


|


| 

The first step in the Collective Bargaining Process is preparing for

negotiations. This step is often extensive and on-going for both Union and
Management. After the issues to be negotiated have been determined, the
two sides confer to reach a mutually acceptable contract.
The next step is for the union membership to ratify the agreement. There is a
feedback loop from Dz Administration of the agreement Dz to Dzpreparing for
negotiationsdz.
Collective bargaining is a continuous and dynamic process, and preparing for
the next round of negotiations often begins the moment a contract is ratified.
 |
 |


|


In theory unions might exercise their  !""!#$ to

partially offset the purchasing power of an employer in a particular occupation
and in doing so achieve a mark-up on wages compared to those on offer to
non-union members.
But for this to happen, a union must have some "  %& 
'&##( available to an industry. In the past this was possible if a union
operated a closed shop agreement with an employer Ȃ i.e. where the employer
and union agreed that all workers would be member of a particular union.
However in most sectors, the closed shop is now history.  )&""
* +' in the 1980s brought an end to the closed shop in a bid to increase the
flexibility of the labour market. Closed shops still exist in a few occupations,
for example the actorǯs union but for the vast majority of workers, this is no
longer a relevant issue.
More frequently, a union may simply bid through , 
"!"' with employers to achieve an increase in wages
ahead of the rate of inflation so that real wages rise, and other
improvements to working hours and conditions. It is often the
case that employers will insist on some form of performance-
related element to any pay settlements, for example an
agreement on measures designed to boost productivity.

The balance of power between employers and trade union in their

periodic wage negotiations depends on a range of factors:

-. % *&"+#(+" - when labour is scarce, either in

a local labour market or taking a national perspective and
there are perceived shortages of skilled workers, then the
balance of power tilts towards unions.
V.+## ''& '"# )&+ /' Ȃ when
a firm is enjoying a dominant monopoly position and
high levels of abnormal profit, the unions will know that
the employer has the financial resources to meet a more
generous wage settlement (although unions rarely have
the full financial information available to a business at
their finger tips when negotiations are in progress).
When demand for a product is price inelastic, so the
demand for labour will tend to be relatively inelastic, this
gives the union the opportunity to boost the total
earnings of its members through collective bargaining.
The reverse is true in markets where demand for the final
output is highly elastic.

Globalization is making the derived demand for labour

more elastic and leading to a decline in the ability of
unions to drive wages high, independent of the level of
productivity in an industry.
ð. "+")"' - during a recession or where
competitive pressures in a market are intense and profit
margins have been squeezed the employer is far less likely to
accede to ambitious pay claims. The strength of the exchange
rate for example is often a key factor in pay discussions for
firms who export a large percentage of their total output.
When unemployment is rising, growing fears for job security
also affect pay demands. Unions are always less powerful when
the demand for labor is falling and labor is less scarce.
The diagram below shows how collective bargaining might
lead to the market wage rate being Dzbidded-updz or where a
union operating a closed shop might restrict the labour
supply to put upward pressure on wages. In theory wages for
union members can be raised above those of non-members,
but there is a potential trade-off with employment and the
extent to which unions are prepared to risk a loss of jobs
may determine how high they set their wage demands.
THANK YOU