Assignment No: 01

Prepared by Farhad Ali Submitting To Lecturer

Sir Faiz Ahmed

UNDERSTANDING LABOUR RELATIONS OF COLLECTIVE BARGAINING

UNIONS A union is an organization composed in whole or in part of employees, in which employees participate and pay dues, and which has as a purpose the dealing with an agency concerning grievances and conditions of employment. Or Employee associations are popularly known as unions. However these unions are not confined to only strikes and negotiations. Their role is much wider than this. Unions make their presence felt in recruitment and selection, promotions, training, termination or lay off. Many programs, which contribute to the Quality of Work Life (QWL) and productivity, are undertaken by management in consultation with and with the cooperation of the unions. Unions also participate in deciding wage and salary structure and negotiate revisions once in 3 or 5 years. Trade unions are voluntary organizations of workers or employers formed to promote their interests through collective action. Trade unions Act 1926 defines a trade union as a combination, whether temporary or permanent formed primarily for the purpose of regulating the relation between 1) Workmen and Employers 2) Workmen and Workmen 3) Employers and Employers For imposing restrictive conditions on the conduct of any trade or business and includes any federation of two or more trade unions.

Q: Why Do Workers Join Unions? A: Worker's Join Union Primarily because of management failure to address organizational & job-related concerns. Q: What Do Unions Want? A: Unions have 2 Sets of aims: Union Security: Five Types of Union Security are possible: I. Closed Shop: The Company can hire only union members. II. Union Shop: The Company can hire non-union people, but they must join the union after the prescribed period of time and pay dues, or else they are fired. III. Agency shop: Employees who do not belong to the union still must pay union dues on the assumption that the union's efforts benefit all workers. IV. Open Shop: It is up to the workers whether or not they join the union, those who do not, do not pay dues. V. Maintenance of membership arrangement: Employees do not have to belong to the union. However, union members employed by the firm must maintain membership in the union for the contract period. Improved wages, hours, working conditions, and benefits for their members: The Constitution of Pakistan contains a range of provisions with regards to labor rights found in Part II: Fundamental Rights and Principles of Policy. I. Article 11 of the Constitution prohibits all forms of slavery, forced labor and child labor; II. Article 17 provides for a fundamental right to exercise the freedom of association and the right to form unions;

III. Article 18 proscribes the right of its citizens to enter upon any lawful profession or occupation and to conduct any lawful trade or business.

ROLE OF CONSTRUCTIVE AND POSITIVE UNION

Unions have a crucial role to play in Industrial Relations. Unions have following broad role or objectives as mentioned below. • To redress the bargaining advantage of the individual worker vis-à-vis the individual employer, by substituting joint or collective action for individual action. • To secure improved terms and conditions of employment for its members and the maximum degree of security to enjoy these terms and conditions. • To obtain improved status for the worker in his work or her work • To increase the extent to which unions can exercise democratic control over decisions, which affect their interests by power sharing at the national, corporate and plant levels. The union power is exerted primarily at two levels. Industry level to establish joint regulation on basic wages and hours with an employer’s association. Plant level, where the shop stewards organizations exercise joint control over some aspects of the organization of work and localized terms and conditions of employment. Unions are party to national, local and plant level agreements, which govern their actions to a greater or lesser extent, depending on their power and on local circumstances.

UNFAIR LABOR PRACTICES: Industrial Disputes Act 1947 specifies the following as unfair labor practices: • To interfere, restrain, coerce workmen in the exercise of their right to organize, form, join or assist a trade union. • Threatening workmen with discharge or dismissal. • Threatening of lockout or closure. • Granting wage increases to undermine trade union efforts. • To dominate, interfere with or support financially or socially by taking active interest in forming own trade union. • Showing partiality or granting favor to one of several trade unions to a non-recognized trade union. • To establish employer sponsored trade unions. • To encourage or discourage memberships in any trade union by discriminating workman by punishing or discharging, changing seniority ratings, refuse promotions, giving unmerited promotions, discharging union office bearers. • To discharge or dismiss workmen by victimizing, not in good faith, implicating in criminal case, for patently false reasons. • To abolish work of a regular nature. • To transfer workmen. • To show favoritism or partiality. • To replace workers. • To recruit workmen during legal strikes. • To indulge in acts of violence or force. • To refuse collective bargaining. • Proposing and continuing lockouts.

Q: What is Collective Bargaining or Negotiation? A: Collective Bargaining is bargaining between and/or among representatives of agencies and labor unions to set working conditions for all employees in an appropriate bargaining unit. Employees have the right to engage in negotiations (i.e., collective bargaining) over conditions of employment through their chosen union representatives. Negotiating or collective bargaining is the mutual obligation of management and the union to meet at reasonable times and bargain in a good faith effort to reach agreement with respect to conditions of employment affecting employees represented by the union. A condition of employment is a broad term which encompasses personnel policies, practices, and matters affecting working conditions. Certain matters are specifically excluded by law from being considered a condition of employment (e.g., the classification of a position). Q: What is an appropriate bargaining unit? A: An appropriate bargaining unit is a grouping of employees that a union represents or seeks to represent and that the Federal Labor Relations Authority finds appropriate for collective bargaining purposes.

Q: What is an exclusive recognition? A: The Statute provides that an agency shall recognize a
labor organization as the exclusive representative of employees in a bargaining unit, if that organization has been selected as the representative by a majority of the unit's employees who voted in a secret ballot election.

Q: What are conditions of employment? A: Conditions of employment means personnel policies, practices, and matters, whether established by rule, regulation, or otherwise [e.g., by custom or practice], affecting working conditions, except that such term does not include policies, practices, and matters— (A)Relating to political activities prohibited under subchapter III of chapter 73 of this title; (B) Relating to the classification of any positions; or (C) To the extent such matters are specifically provided for by Federal statute.

Q: What Rights do Employees have in the Labor Relations Statute? A: Employees have the right to form, join or assist a union or to refrain from doing so. Employees shall be free to exercise this right without fear of penalty or reprisal and shall be protected in exercising this right. Employees have the right to:

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Act as a union representative, and in that capacity, to present union views to agency management, the Congress or other authorities; Negotiate over conditions of employment through their chosen representative; Decide whether to be a union member, and if a union member, how actively engaged.

Q: What are the Representational Rights of the Union? A: A union that has been accorded exclusive recognition for a bargaining unit has a duty to fairly represent all employees in the bargaining unit. The union has the right to:
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Negotiate with management in good faith concerning conditions of employment Obtain data normally maintained by management that is reasonably available and necessary for full and proper discussion, understanding, and negotiation of the subjects appropriate for collective bargaining. Have employees representing the union on official time when negotiating agreements with management Be represented at certain discussions management may have with bargaining unit employees, including: Formal discussions; certain examinations of employees.

Q: What are Management Rights? A: Management rights are a term which defines those areas over which management exercises exclusive decisionmaking authority. These rights are spelled out in the Federal Service Labor-Management Relations Statute. There are two categories of management rights, "mandatory" or reserved rights, such as the right to determine mission, budget, and internal security and "permissive" rights. Permissive rights are those rights (e.g., numbers, types and grades of employees assigned to an organizational subdivision, work project, or tour of duty) that management may bargain, but is not statutorily required to do so.

Q: What is a negotiated Grievance Procedure?

A: The negotiated grievance procedure is a system for resolving disputes. It is a method, established by the union and management, for finding out where problems exist and solving those problems fairly and quickly. Every collective bargaining agreement must contain a negotiated grievance procedure. A grievance is defined in the Collective Bargaining Agreement and may cover any complaint:
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by any employee concerning any matter relating to the employment of the employee; by any labor organization concerning any matter relating to the employment of any employee; or by any employee, labor organization, or agency concerning: o The effect or interpretation, or a claim of breach, of a collective bargaining agreement; or o Any claimed violation, misinterpretation, or misapplication of any law, rule, or regulation affecting conditions of employment.

Q: What is Interest-Based Bargaining? A: Interest-Based Bargaining (IBB) (also sometimes called "mutual gains" bargaining or "win-win" bargaining) is a term that refers to a form of negotiating where the parties look for common ground and attempt to satisfy mutual interests through the bargaining process. Whereas traditional bargaining focuses on taking and defending positions, in IBB the emphasis is on exploring the interests of the parties and how can they be reconciled. IBB is an effort to look behind positions to determine the needs of the parties and whether there are mutually acceptable ways that labor and management can satisfy those needs. IBB differs substantially from traditional negotiating techniques in its reliance upon a variety of techniques to

promote open communication, such as brainstorming, facilitation, and information sharing. The purpose of exchanging ideas and information is to develop options. Those options are then evaluated both in terms of their effectiveness in resolving the problem and their acceptability to the parties. The objective of the entire process is to reach agreement by consensus. In consensus decision making, the intent is to achieve a resolution that everyone can accept and support even though that course of action might not be their first choice.

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