LL and Collective Bargaining.pptLL and Collective Bargaining.ppt

LL and Collective Bargaining.ppt

1. Management, Organizational Policies &
Practices
Lecture 19
Dr. Amna Yousaf
PhD (HRM)
University of Twente,
the Netherlands

2. Recap Lecture 18
What is Equal Employment Opportunity?
What is sexual Harassment?
Defenses against discrimination allegations
Adverse Impact
Bona fide occupational qualifications
Business Necessity
Discriminatory Employment Practices
–Recruitment
–Selection standards
Diversity Management
©

3. Recap Lecture 18
Workforce Diversity in Practice
Diversity’s Benefits
Equal Employment Opportunity versus
Affirmative Action
Steps in Affirmative Action Program
Improving Productivity through Diversity
Management
Recruiting Minorities Online
Reverse Discrimination
© 2005 Prentice Hall Inc. All rights reserved. 15–3

4. Labor Relations and Collective Bargaining
Lecture 19

5. Learning OutcomesLearning Outcomes
1.Why workers form unions?
2.The collective bargaining process
3.Violations of good faith bargaining
4.Illustrate with examples bargaining that is
not in good faith.
5.Conditions for good faith bargaining
6.Parties in negotiations
© 2005 Prentice Hall Inc. All rights reserved. 14–5

6. Learning OutcomesLearning Outcomes
7.Bargaining items
8.Bargaining stages and process
9.Impasses, strikes
10.Mediations and Arbitration
11.Grievances
12.Develop a grievance procedure.
13.Labor Laws in Pakistan
© 2005 Prentice Hall Inc. All rights reserved. 14–6

7. © 2005 Prentice Hall Inc. All rights reserved. 14–7
Why Do Workers Organize?
Solidarity
–To get their fair share of the pie.
•Improved wages, hours, working conditions, and benefits
–To protect themselves from management
whims.
Conditions favoring employee organization
–Low morale
–Fear of job loss
–Arbitrary management actions

8. © 2005 Prentice Hall Inc. All rights reserved. 15–8
The Collective Bargaining Process
What Is collective bargaining?
–Both management and labor are required by
law to negotiate wage, hours, and terms and
conditions of employment “in good faith.”
What Is good faith bargaining?
–Both parties communicate and negotiate.
–They match proposals with counterproposals in
a reasonable effort to arrive at an agreement.
–It does not mean that one party compels
another to agree to a proposal or make any
specific concessions.

9. © 2005 Prentice Hall Inc. All rights reserved. 15–9
Violations of Good Faith Bargaining
Surface bargaining
–Going through motions of bargaining without any real
intention of completing a formal agreement.
Inadequate concessions
–Unwillingness to compromise , even though no one is
required to make a concession
Inadequate proposals and demands
–Advancement of proposals to be a positive factor in
determining overall good faith
Dilatory tactics
–Meeting at reasonable time intervals
Imposing conditions
–That are unreasonable

10. Violations of Good Faith Bargaining
Making unilateral changes in conditions
–Strong indication that the employer not
bargaining with good intent
Bypassing the representative
–Employer must recognize that he must deal
with employee representative
Committing unfair labor practices during
negotiations.
–Such practices may impact poorly upon
employer intentions
© 2005 Prentice Hall Inc. All rights reserved. 15–10

11. Violations of Good Faith Bargaining
Withholding information
–Must supply with necessary information upon
request to union
Ignoring bargaining items
–Refusal to bargain on mandatory items
© 2005 Prentice Hall Inc. All rights reserved. 15–11

12. NPO Management Course/Compliance
Conditions for Successful Bargaining
1.Freedom of association
–Workers and employers are free to form their
own associations to represent their interests.
2.Stability of union
–Unions have to be stable for collective bargaining
to be effective  union is able to honor the agreement.
3.Recognition of union by employer
–Collective bargaining begins after employer
recognizes the union that claims to represent the
specific group of workers.
05/13/25 12

13. NPO Management Course/Compliance
Conditions for Successful Bargaining
4.Good faith
–Both parties must be willing to resolve
differences to reach an agreement.
5.Mutual respect
–Relationship affected and process becomes
tense and difficult if any party used unfair
practices such as victimization.
6.Supportive legal system
–Employment laws to ensure process takes
place in an orderly manner.
13
05/13/25

14. © 2005 Prentice Hall Inc. All rights reserved. 15–14
Preparing for Negotiations
Sources of negotiating information
–Local and industry pay and benefits
comparisons
–Distribution demographics of the workforce
–Benefit costs, overall earnings levels, and the
amount and cost of overtime
–Cost of the current labor contract and the
increased cost—total, per employee, and per
hour—of the union’s demands.
–Grievances and feedback from supervisors
–Counter offers and arguments.

15. © 2005 Prentice Hall Inc. All rights reserved. 15–15
Preparing for Negotiations (cont’d)
Sources of negotiating information (cont’d)
–Attitude surveys to test employee reactions to
sections of the contract that management may
feel require change
–informal conferences with local union leaders
to discuss the operational effectiveness of the
contract and to send up management ideas for
change.

16. © 2005 Prentice Hall Inc. All rights reserved. 15–16
Classes of Bargaining Items
Voluntary (permissible) bargaining items
–Items in collective bargaining over which bargaining is
neither illegal nor mandatory—neither party can be
compelled against its wishes to negotiate over those
items.
Illegal bargaining items
–Items in collective bargaining that are forbidden by law;
for example, a clause agreeing to hire “union members
exclusively” would be illegal in a right-to-work state.
Mandatory bargaining items
–Items in collective bargaining that a party must bargain
over if they are introduced by the other party—for
example, pay.

17. © 2005 Prentice Hall Inc. All rights reserved. 15–17
Bargaining Items
Table 15–1
Mandatory
Rates of pay
Wages
Hours of employment
Overtime pay
Shift differentials
Holidays
Vacations
Severance pay
Pensions
Insurance benefits
Profit-sharing plans
Christmas bonuses
Company housing, meals,
and discounts
Employee security
Job performance
Union security
Management–union
relationship
Drug testing of employees
Permissible
Indemnity bonds
Management rights as to
union affairs
Pension benefits of
retired employees
Scope of the bargaining unit
Including supervisors
in the contract
Additional parties to the
contract such as the
international union
Use of union label
Settlement of unfair labor changes
Prices in cafeteria
Continuance of past contract
Membership of bargaining team
Employment of strike breakers
Illegal
Closed shop
Separation of employees
based on race
Discriminatory treatment
Source: Michael B. Carnell and Christina Heavrin,
Labor Relations and Collective Bargaining (Upper
Saddle River, NJ: Prentice Hall, 2001), p. 177.

18. © 2005 Prentice Hall Inc. All rights reserved. 15–18
Bargaining Stages
Presentation of initial demands
–Both parties are usually quite far apart on some issues.
Reduction of demands
–Each side trades off some of its demands to gain others.
Subcommittee studies
–The parties form joint subcommittees to try to work out
reasonable alternatives.
An informal settlement
–Each group goes back to its sponsor. Union seeks to
have members vote to ratify the agreement.
Signing the formal agreement

19. © 2005 Prentice Hall Inc. All rights reserved. 15–19
Bargaining Hints
Be sure to set clear objectives for every bargaining item, and be
sure you understand the reason for each.
Do not hurry.
When in doubt, caucus with your associates.
Be well prepared with firm data supporting your position.
Always strive to keep some flexibility in your position.
Don’t concern yourself just with what the other party says and
does; find out why.
Respect the importance of face saving for the other party.
Be alert to the real intentions of the other party—not only for
goals, but also for priorities.
Be a good listener.

20. © 2005 Prentice Hall Inc. All rights reserved. 15–20
Bargaining Hints (cont’d)
Build a reputation for being fair but firm.
Learn to control your emotions and use them as a tool.
As you make each bargaining move, be sure you know its
relationship to all other moves.
Measure each move against your objectives.
Pay close attention to the wording of every clause negotiated;
they are often a source of grievances.
Remember that collective bargaining is a compromise process.
There is no such thing as having all the pie.
Try to understand people and their personalities.
Consider the impact of present negotiations on those in future
years.

21. Labor Laws in Pakistan
The National Labor Policy 2010 (preceding five policies of
1955, 1959, 1969, 1972 and 2002) provides a legal
framework to organizations and constitutes a compilation
of rules and regulation on various facets of labor relations
and laws in Pakistan. The previous policies were mostly
complex, irregular, and difficult to interpret. However, the
NLP 2010 outlines and safeguards 11 key characteristics
of labor which includes:
–Workers’ right to form unions and provide
protection to the union
–Equitable adjustment of rights between workers
and employers
–Consultations between workers and employers on
matters of interest to the establishment and welfare
of workers
© 2005 Prentice Hall Inc. All rights reserved. 15–21

22. Labor Laws in Pakistan
–Adequate security of jobs should be available to
the workers and their grievances be addressed
–Conditions should be created that workers and
employers engage in labor productivity
–Promotion to higher jobs (through fair means)
–Facilities for proper matching of job opportunities
–Social insurance schemes
–Just and humane conditions of work be guaranteed
–Elimination of forced labor
–Provisions relating to the employment of women
and children
© 2005 Prentice Hall Inc. All rights reserved. 15–22

23. Constitution of Pakistan
–Every citizen shall have the right to form
associations or unions, subject to any reasonable
restrictions imposed by law in the interest of [13]
sovereignty or integrity of Pakistan, public order or
morality.
–No employee can join more than one unions at a
time
–No union member can force others to join unions
–Employer can not coerce the employees not to
become members of unions
NPO
Managem
ent
Course/C
omplianc
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24. Constitution of Pakistan
–Union can not force employer to enter in
discriminatory labor practices or hire or fire
employees for union activity
–Union can not engage in illegal strikes during
office hours
–Employers can not force unions not to do legal
strikes
–Union can be formed where organization
consists of at least 50 workers 80% of which
should be union members
© 2005 Prentice Hall Inc. All rights reserved. 15–24

25. © 2005 Prentice Hall Inc. All rights reserved. 15–25
Impasses, Mediation, and Strikes
An impasse
–Usually occurs because one party is demanding
more than the other will offer.
–Sometimes an impasse can be resolved
through a third party—a disinterested person
such as a mediator or arbitrator.
–If the impasse is not resolved in this way, the
union may call a work stoppage, or strike, to
put pressure on management.

26. © 2005 Prentice Hall Inc. All rights reserved. 15–26
Third-Party Involvement
Mediation
–A neutral third party (mediator) tries to assist
the principals in reaching agreement by
holding meetings with each party to find
common ground for further bargaining.
–The mediator is a go-between and has no
authority to dictate terms or make concessions.
–The mediator communicates assessments of
the likelihood of a strike, the possible
settlement packages available, and the like.

27. © 2005 Prentice Hall Inc. All rights reserved. 15–27
Third-Party Involvement (cont’d)
Arbitration
–An arbitrator often has the power to determine
and dictate the settlement terms.
–Arbitration can guarantee a solution to an
impasse.

28. © 2005 Prentice Hall Inc. All rights reserved. 15–28
Strikes
Economic strike
–Results from a failure to agree on the terms of a
contract.
Unfair labor practice strikes
–Called to protest illegal conduct by the employer.
Wildcat strike
–An unauthorized strike occurring during the term
of a contract.
Sympathy strike
–Occurs when one union strikes in support of the
strike of another union.

29. Picketing
Having employees carry signs announcing
their concerns near the employer’s place of
business
–Employers can shut down the operations till
strike is over
–Contract out work to blunt the effects of strike
–Continue operations with non striking
employees or supervisors
–Hiring replacements for strikers
•Permanent replacement workers cant be hired in case of
strikes on account of unfair labor practices
© 2005 Prentice Hall Inc. All rights reserved. 15–29

30. Guidelines under strikes
Pay striking employees all dues day one
Secure facility-hiring guards to protect
replacements
Notify customers; prepare standard response
to all queries
Contact suppliers who have to cross picket
line. Devise alternate methods of obtaining
supplies
Arrangements for overnight stay and meals
Arrangements for replacement workers
© 2005 Prentice Hall Inc. All rights reserved. 15–30

31. Guidelines under strikes
Install cameras and photograph facilities
before and after .
Look for picket line misconduct
Note number of pickets, time date and
location of picketing, wording on signs carried
by pickets, description of picket cars and
numbers
© 2005 Prentice Hall Inc. All rights reserved. 15–31

32. © 2005 Prentice Hall Inc. All rights reserved. 15–32
Main Sections of a Contract Agreement
Management rights
Union security and automatic payroll dues deduction
Grievance procedures
Arbitration of grievances
Disciplinary procedures
Compensation rates
Hours of work and overtime
Benefits: vacations, holidays, insurance, pensions
Health and safety provisions
Employee security seniority provisions, and
Contract expiration date.

33. © 2005 Prentice Hall Inc. All rights reserved. 15–33
Grievances
Grievance
–Any factor involving wages, hours, or
conditions of employment that is used as a
complaint against the employer.
Sources of grievances
–Absenteeism
–Insubordination
–Overtime
–Plant rules

34. © 2005 Prentice Hall Inc. All rights reserved. 15–34
Grievance Procedure
Grievant and shop steward meet with
supervisor. If not resolved,
Employee files formal grievance
Grievant and shop steward meet with
supervisor’s boss. If not resolved,
Meeting with higher-level managers.
If not resolved, matter goes to arbitration.

35. © 2005 Prentice Hall Inc. All rights reserved. 15–35
Handling Grievances: Do
Investigate and handle each case as though it may eventually result in
arbitration.
Talk with the employee about his or her grievance; give the person a
full hearing.
Require the union to identify specific contractual provisions allegedly
violated.
Comply with the contractual time limits for handling the grievance.
Visit the work area of the grievance.
Determine whether there were any witnesses.
Examine the grievant’s personnel record.
Fully examine prior grievance records.
Treat the union representative as your equal.
Hold your grievance discussions privately.
Fully inform your own supervisor of grievance matters.

36. © 2005 Prentice Hall Inc. All rights reserved. 15–36
Handling Grievances: Don’t
Discuss the case with the union steward alone—the grievant should be
there.
Make arrangements with individual employees that are inconsistent with
the labor agreement.
Hold back the remedy if the company is wrong.
Admit to the binding effect of a past practice.
Relinquish to the union your rights as a manager.
Settle grievances based on what is “fair.” Instead, stick to the labor
agreement.
Bargain over items not covered by the contract.
Treat as subject to arbitration claims demanding the discipline or
discharge of managers.
Give long written grievance answers.
Trade a grievance settlement for a grievance withdrawal.
Deny grievances because “your hands have been tied by management.”
Agree to informal amendments in the contract.

37. Thank You
© 2007 Prentice Hall Inc. All rights reserved.