ASSIGNMENT NO.

SUBJECT

HUMAN RESOURCE MANAGEMENT

CODE: 527

PRESENTED TO
MR. ABDUL KHALIQ

ALLAMA IQBAL OPEN UNIVERSITY

ISLAMABAD

PRESENTED BY

ANEEL IJAZ

ROLL# AD512380
MBA (NEW) SEMESTER-II
AUTUMN 2009

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 ISSUES IN
LABOUR MANAGEMENT
RELATIONS

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 ACKNOWLEDGMENT

First of all, thanks to The Almighty who gave me the courage and knowledge to
complete my report within the given time period.

This report is written to fulfill the partial requirements of Masters in Business

Administration, Marketing & HRM from Allama Iqbal Open University, Islamabad.

Before entering the actual report, I would like to thank my respected tutor
Mr. Abdul Khaliq for his support and guidance.

I am deeply grateful to my friends and especially Mr. Fayyaz-ul-Haq, Assistant

Manager, OGDCL Pakistan, who unconditionally participated in this report and took
out time to patiently respond to different queries of my survey efforts.

I hope that this report meets the criteria, which I asked to adhere to.

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 ABSTRACT

Harmonious relations in every sphere of human activity are a prerequisite for

socio-economic progress. Establishing and maintaining smooth and cordial relations
between labour and management, in particular, is of utmost importance,
especially in Pakistan which occupies a low position in the national industrial
scenario, where resources are limited, population is growing at an alarming rate
and hence industrial progress is the prime need. Mere technical efficiency, modern
machinery, good plant layout and dynamic organizations etc, are not enough to
make a business profitable and lead to economic growth and social improvements.
It is harmonious and constructive labour-management relationship in industry,
which plays almost a decisive role in this respect.

Unfortunately, increasing complexity of modern industrial system has widened the

gap between the employers and the employees more than ever before, the
distributional disparities have worsened and discontent and frustration at the
lower levels of organizations have heightened. This gap has created serious types
of industrial conflicts in labour-management relations, resulting in fall of
production, increase in prices and creation of adverse balance and maximization of
national wealth and can easily be transcribed as threats to the welfare of the
people. Therefore, there has always been a need to study the factors, which result
in industrial unrest and those which lead to cordial labour-management relations,
with a view to evolve and implement the policies and strategies relating to
industrial relations, keeping the all important aim of socio-economic development
of the economy in view.

This assignment is a research-oriented activity, which represents both the

theoretical and practical implication of the topic. In the first section of this
assignment, I explain the theoretical aspect of the topic and all major parts has
been explained which are involved in the method of collecting primary &
secondary data for research in business research. For empirical study, I select

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OGDCL Pakistan. And compare their ways of the collective bargaining process for
research in business instruments.

At the end of this report, I have tried to provide some suggestions and
recommendations for the betterment of the company. These suggestions and
recommendations are based on the finding during my practical study on OGDCL and
the role of labour management in this company. I hope that those will be helpful
for the company as well as students of human resource management.

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 TABLE OF CONTENTS

ACKNOWLEDGMENT.............................................................3

ABSTRACT ........................................................................4

BACKGROUND....................................................................8

HISTORY OF LABOUR RELATIONS.............................................................7

LABOUR LAWS...................................................................................9

CHARACTERISTICS OF PAKISTANI LABOUR LAW............................................11

LABOUR UNION.................................................................................12

INDUSTRIAL RELATIONS SYSTEM.............................................................13

ACTORS IN THE IR SYSTEM...................................................................13

THEORETICAL STUDY – COLLECTIVE BARGAINING.......................15

COLLECTIVE BARGAINING PROCESS.........................................................15

BARGAINING FORM AND TACTICS............................................................17

CHARACTERISTICS OF COLLECTIVE BARGAINING.........................................17

IMPORTANCE OF COLLECTIVE BARGAINING.................................................18

LEVELS OF COLLECTIVE BARGAINING........................................................20

BARGAINING DEAD LOCKS.....................................................................21

PRACTICAL STUDY – OGDCL PAKISTAN.....................................23

PERSONNEL (HR) MANAGEMENT IN OGDCL.................................................24

REVIEW OF THEORETICAL & PRACTICAL SITUATION......................................26

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SWOT ANALYSIS OF THE ORGANIZATION..................................28

RECOMMENDATIONS...........................................................29

CONCLUSION....................................................................30

REFERENCES....................................................................31

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 BACKGROUND

HISTORY OF LABOUR RELATIONS

In the United States, labor relations gained a huge boost with the passage of
the National Labor Relations Act in 1935. This act covered a wide range of
labor rights, including the right to strike, the right to bargain as a union,
and a general right to protest and take action to achieve their desires. The
National Labor Relations Act, also known as the Wagner Act, gave most
employees these rights. It was upheld by the Supreme Court in 1937.

To protect the rights mentioned above, the Wagner Act also created a new
federal agency, the National Labor Relations Board. The sphere of the
National Labor Relations Board, and the Wagner Act itself, was limited only
to employees operating in the private sector. Government employees, along
with the employees of some mass transit (rail and air), were covered under
a separate labor relations act, the Railway Labor Act.

In 1947, the National Labor Relations Act was changed substantially through
the passage of the Taft-Hartley Act. The Taft-Hartley Act substantially
undermined the National Labor Relations Act and the power it had granted
unions.

While the National Labor Relations Act is the largest and most well-known
piece of legislation pertaining to labour relations, a large amount of
legislation can be accurately described as labor relations. Minimum wage
laws, fair-practice rules, and legislation dictating danger pay are all
examples of labor relations.

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As a theoretical field, labour relations can be thought of as examining the
interface between employees and the world at large. This may include
labour relations with employers, but it also includes how the employee
sector is affected by everything from globalization to a falling economy.
Labour relations in this sense attempts to minimize negative impact on the
work force by identifying potential disasters and coming up with methods of
damage control.

LABOUR LAW

Labor law (or employment law) is the body of laws, administrative rulings,
and precedents which address the legal rights of, and restrictions on,
working people and their organizations. As such, it mediates many aspects
of the relationship between trade unions, employers and employees.

There are two broad categories of labor law.

First, collective labor law relates to the tripartite relationship between

employee, employer and union.

Second, individual labor law concerns employees' rights at work and through
the contract for work. The labor movement has been instrumental in the
enacting of laws protecting labor rights in the 19th and 20th centuries.
Labor rights have been integral to the social and economic development
since the industrial revolution.

Contract of employment

The basic feature of labor law in almost every country is that the rights and
obligations of the worker and the employer between one another are
mediated through the contract of employment between the two.

Minimum wage

There may be law stating the minimum amount that a worker can be paid
per hour. The minimum wage is usually different from the lowest wage

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determined by the forces of supply and demand in a free market, and
therefore acts as a price floor. Each country sets its own minimum wage
laws and regulations, and while a majority of industrialized countries has a
minimum wage, many developing countries have not.

Working time

Before the Industrial Revolution, the workday varied between 11 and 14

hours. The 10-hour day was established in 1848, and shorter hours with the
same pay were gradually accepted thereafter.

Health and safety

Other labor laws involve safety concerning workers. The earliest English
factory law was drafted in 1802 and dealt with the safety and health of
child textile workers.

Anti-discrimination

This clause means that discrimination against employees is morally

unacceptable and illegal, on a variety of grounds, in particular racial
discrimination or sexist discrimination.

Unfair dismissal

Convention No. 158 of the International Labour Organization states that an

employee "can't be fired without any legitimate motive" and "before offering
him the possibility to defend himself". Thus, on April 28, 2006, after the
unofficial repeal of the French First Employment Contract (CPE), the
Longjumeau (Essonne) conseil des prud'hommes (labour law court) judged
the New Employment Contract (CNE) contrary to international law, and
therefore "illegitimate" and "without any juridical value". The court
considered that the two-year period of "fire at will" (without any legal
motive) was "unreasonable", and contrary to convention No. 158, ratified by
France.

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Child labor

Child labor is the employment of children under an age determined by law

or custom. This practice is considered exploitative by many countries and
international organizations. Child labor became a disputed issue with the
beginning of universal schooling and the concepts of laborers' and children's
rights.

CHARACTERISTICS OF PAKISTANI LABOR LAW

Pakistans labour laws trace their origination to legislation inherited from

India at the time of partition of the Indo-Pak subcontinent. The laws have
evolved through a continuous process of trial to meet the socio-economic
conditions, state of industrial development, population and labour force
explosion, growth of trade unions, level of literacy, Government’s
commitment to development and social welfare. To meet the above named
objectives, the government of the Islamic Republic of Pakistan has
introduced a number of labour policies, since its independence to mirror the
shifts in governance from martial law to democratic governance.

Under the Constitution, labour is regarded as a ‘concurrent subject’, which

means that it is the responsibility of both the Federal and Provincial
Governments. However, for the sake of uniformity, laws are enacted by the
Federal Government, stipulating that Provincial Governments may make
rules and regulations of their own according to the conditions prevailing in
or for the specific requirements of the Provinces. The total labour force of
Pakistan is comprised of approximately 37.15 million people, with 47%
within the agriculture sector, 10.50% in the manufacturing & mining sector
and remaining 42.50% in various other professions.

The Constitution of Pakistan contains a range of provisions with regards to

labour rights found in Part II: Fundamental Rights and Principles of Policy.

• Article 11 of the Constitution prohibits all forms of slavery, forced labour

and child labour;

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• Article 17 provides for a fundamental right to exercise the freedom of
association and the right to form unions;

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

• Article 25 lays down the right to equality before the law and prohibition
of discrimination on the grounds of sex alone;

• Article 37(e) makes provision for securing just and humane conditions of
work, ensuring that children and women are not employed in vocations
unsuited to their age or sex, and for maternity benefits for women in
employment.

LABOR UNION

A labor union (or trade union) is an association of fair wage-earners uniting

for the purpose of maintaining and improving the conditions of their
employment. Over a three-hundred-year period, labor unions have
developed into a number of forms, influenced by various political and
economic regimes. Immediate objectives and activities of trade unions often
vary according to industry. Despite such differences, however, the
fundamental ideals upheld by traditional labor unions include the provision
of member benefits, the right to collectively bargain, and the right to take
industrial action. Early trade unions, like Friendly Societies, provided a
range of benefits to accommodate their members in times of
unemployment, ill health, old age, and death, many of which have
subsequently been assumed by the state. Union members are also protected
when taking industrial action, such as striking to achieve particular goals.
Unions often promote political legislation favorable to the interests of their
members or workers as a whole. Thus, provided cooperative relationships
are maintained between management and labor unions, their work is
generally beneficial to society, ensuring that workers are well-cared for and
thus able to make their best contribution to society as a whole.

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INDUSTRIAL RELATIONS SYSTEM
An industrial relations system is characterized by having certain active
institutions, a context in which they operate, and a certain output. It is
important to think of industrial relations as being a system because the
concept of a system focuses attention on interrelationships among the
system’s parts. Infact, the industrial relation system of each country
constitutes a method of dealing with certain problems of labour relations
that exist in all countries, but that assume different forms as a result of the
particular form in which they occur.

Industrial relations systems can be defined as first the systems is industrial

in nature because we don not include in it the relationships that exist in the
agricultural sector, which explicitly involves the growing of crops and
husbandry of animals. In most countries these activities still consume most
of the labor force.

“Labour Relations” is a broad field encompassing all the countless

interchanges between employers and employees. While the term “labour
relations” is most often used to discuss this exchange as it pertains to
unionized employees, it may also refer to non-union employees as well.
Labor relations are dictated in a large part by the government of a nation
and the various regulations it provides to industry regarding the treatment
of employees.

ACTORS IN THE IR SYSTEM

Three main parties are directly involved in industrial relations:

Employers: Employers possess certain rights vis-à-vis labors. They have the
right to hire and fire them. Management can also affect workers’ interests
by exercising their right to relocate, close or merge the factory or to
introduce technological changes.

Employees: Workers seek to improve the terms and conditions of their

employment. They exchange views with management and voice their

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grievances. They also want to share decision making powers of
management. Workers generally unite to form unions against the
management and get support from these unions.

Government: The central and state government influences and regulates

industrial relations through laws, rules, agreements, awards of court ad the
like. It also includes third parties and labor and tribunal courts.

ISSUES IN INDUSTRIAL RELATIONS

The concept of industrial relations has a very wide meaning and

connotation. In the narrow sense, it means that the employer, employee
relationship confines itself to the relationship that emerges out of the day
to day association of the management and the labor. In its wider sense,
industrial relations include the relationship between an employee and an
employer in the course of the running of an industry and may project it to
spheres, which may transgress to the areas of quality control, marketing,
price fixation and disposition of profits among others.

The scope or “industrial relations” is quite vast. The main issues involved
here include the following:

1. Collective bargaining
2. Machinery for settlement of industrial disputes
3. Standing orders
4. Workers participation in management
5. Unfair labor practices

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THEORETICAL STUDY - COLLECTIVE BARGAINING

Collective Bargaining Process

Collective bargaining generally includes negotiations between the two

parties (employees’ representatives and employer’s representatives) that
determine the conditions of employment. Often employees are represented
in the bargaining by a union or other labor organization. The result of
collective bargaining procedure is called the collective bargaining
agreement (CBA). Collective agreements may be in the form of procedural
agreements or substantive agreements. Procedural agreements deal with
the relationship between workers and management and the procedures to
be adopted for resolving individual or group disputes.

This will normally include procedures in respect of individual grievances,

disputes and discipline. Frequently, procedural agreements are put into the
company rule book which provides information on the overall terms and
conditions of employment and codes of behavior. A substantive agreement
deals with specific issues, such as basic pay, overtime premiums, bonus
arrangements, holiday entitlements, and hours of work, etc. In many
companies, agreements have a fixed time scale and a collective bargaining
process will review the procedural agreement when negotiations take place
on pay and conditions of employment.

The collective bargaining process comprises of five core steps

1. Prepare

This phase involves composition of a negotiation team. The negotiation

team should consist of representatives of both the parties with adequate
knowledge and skills for negotiation. Both the employer’s representatives
and the union examine their own situation in order to develop the issues
that they believe will be most important. The first thing to be done is to
determine whether there is actually any reason to negotiate at all. A
correct understanding of the main issues to be covered and intimate

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knowledge of operations, working conditions, production norms and other
relevant conditions is required.

2. Discuss

Here, the parties decide the ground rules that will guide the negotiations.
An environment of mutual trust and understanding is also created so that
the collective bargaining agreement would be reached.

3. Propose

This phase involves the initial opening statements and the possible options
that exist to resolve them. The exchange of messages takes place and
opinion of both the parties is sought.

4. Bargain

Negotiations are easy if a problem solving attitude is adopted. This stage

comprises the time when ‘what ifs’ and ‘supposals’ are set forth and the
drafting of agreements take place.

5. Settlement

Once the parties are through with the bargaining process, a consensual
agreement is reached upon wherein both the parties agree to a common
decision regarding the problem or the issue. This stage is described as
consisting of effective joint implementation of the agreement through
shared visions, strategic planning and negotiated change.

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BARGAINING FORM AND TACTICS

A collective bargaining process generally consists of four types of activities-

Distributive or Conjunctive bargaining

Under it, the economic issues like wages, salaries and bonus are discussed.
In distributive bargaining, one party’s gain is another party’s loss.

Integrative bargaining

This involves negotiation of an issue on which both the parties may gain, or
at least neither party loses. For example, representatives of employer and
employee sides may bargain over the better training programmed or a
better job evaluation method.

Attitudinal restructuring

This involves shaping and reshaping some attitudes like trust or distrust,
friendliness or hostility between labor and management which is required to
maintain smooth and harmonious industrial relations.

Intra-organizational bargaining

It generally aims at resolving internal conflicts. This is a type of

maneuvering to achieve consensus with the workers and management. Even
within the union, there may be differences between groups. For example,
skilled workers may feel that they are neglected or women workers may feel
that their interests are not looked after properly. Within the management
also, there may be differences.

CHARACTERISTICS OF COLLECTIVE BARGAINING

1. It is a group process.

2. Negotiations.

3. Certain employment-related issues are to be regulated at national,

organizational and workplace levels.

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 4. It consists of a number of steps. It begins with the presentation 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.

5. It is a flexible process and not fixed or static. Mutual trust and

understanding serve as the by products of harmonious relations
between the two parties.

6. It is a bipartite process because there are always two parties

participate in this process. The negotiations generally take place
between the employees and the management.

7. Collective bargaining is a complementary process.

8. Collective bargaining tends to improve the relations between workers

and the union on the one hand and the employer on the other.

9. Collective Bargaining is continuous process. It enables industrial

democracy to be effective. It uses cooperation and consensus for
settling disputes rather than conflict and confrontation.

10.Collective bargaining takes into account day to day changes, policies,

potentialities, capacities and interests.

11.It is a political activity frequently undertaken by professional

negotiators.

IMPORTANCE OF COLLECTIVE BARGAINING

Collective bargaining includes not only negotiations between the employers

and unions but also includes the process of resolving labor-management
conflicts. Thus, collective bargaining is, essentially, a recognized way of
creating a system of industrial jurisprudence. It acts as a method of
introducing civil rights in the industry, that is, the management should be
conducted by rules rather than arbitrary decision making. It establishes
rules which define and restrict the traditional authority exercised by the
management.

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Importance to employees

1. Collective bargaining develops a sense of self respect and

responsibility among the employees.

2. It increases the strength of the workforce, thereby, increasing their

bargaining capacity as a group.

3. Collective bargaining increases the morale and productivity of

employees.

4. It restricts management’s freedom for arbitrary action against the

employees. Moreover, unilateral actions by the employer are also
discouraged.

5. Effective collective bargaining machinery strengthens the trade

unions movement.

6. The workers feel motivated as they can approach the management on

various matters and bargain for higher benefits.

7. It helps in securing a prompt and fair settlement of grievances. It

provides a flexible means for the adjustment of wages and
employment conditions to economic and technological changes in the
industry, as a result of which the chances for conflicts are reduced.

Importance to employers

1. It becomes easier for the management to resolve issues at the

bargaining level rather than taking up complaints of individual
workers.

2. Collective bargaining tends to promote a sense of job security among

employees and thereby tends to reduce the cost of labor turnover to
management.

3. Collective bargaining opens up the channel of communication

between the workers and the management and increases worker
participation in decision making.

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 4. Collective bargaining plays a vital role in settling and preventing
industrial disputes.

Importance to society

1. Collective bargaining leads to industrial peace in the country

2. It results in establishment of a harmonious industrial climate which

supports which helps the pace of a nation’s efforts towards economic
and social development since the obstacles to such a development
can be reduced considerably.

3. The discrimination and exploitation of workers is constantly being

checked.

4. It provides a method or the regulation of the conditions of

employment of those who are directly concerned about them.

LEVELS OF COLLECTIVE BARGAINING

Collective bargaining operates at three levels:

1. National level

Economy-wide (national) bargaining is a bipartite or tripartite form of

negotiation between union confederations, central employer associations
and government agencies. It aims at providing a floor for lower-level
bargaining on the terms of employment, often taking into account
macroeconomic goals.

2. Sector or industry level

Sector oral bargaining, which aims at the standardization of the terms of

employment in one industry, includes a range of bargaining patterns.
Bargaining may be either broadly or narrowly defined in terms of the
industrial activities covered and may be either split up according to
territorial subunits or conducted nationally.

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3. Company/enterprise level

The third bargaining level involves the company and/or establishment. As a

supplementary type of bargaining, it emphasizes the point that bargaining
levels need not be mutually exclusive.

BARGAINING DEAD LOCKS

Strikes:

1. There is a chance of strike after labour negotiation if bargaining

demands of employee are not met by the management.

2. The right of employees to strike in support of their bargaining

demands is protected by the Landrum-Griffin Act.

3. A lawful labour dispute may result work stoppage by employees,

which may not violation of an existing agreement between
management and the union.

Lockouts

1. After expiry of collective bargaining agreement, when employers

desires to hold economic pressure on union to settle a contract
on terms favorable to the employers, by law, employer can lock
out its employees.

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 2. It also is a legal for a company to replace the locked outworkers with
temporary replacement in order to continue operations during the
lock out. However, the use of permanent replacement is not
permissible.

Third party involvement

When the parties fail to reach at the stage of settlement, litigation or third
party is involved to resolve the issue.

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 PRACTICAL STUDY - OGDCL PAKISTAN

Office Venue
OGDCL House,
Plot No.3,
Sector F-6/ G-6,
Jinnah Avenue,
Blue Area,
Islamabad.
Voice: 051-9209811-18,
Fax:-051-9209792

Regional Offices
OGDCL Regional Offices are located in Karachi and Multan. Besides this
OGDCL has its Liaison Offices in Hyderabad, Sukkur, and Quetta for
operational activities. The company head office is located in Islamabad but
carrying out exploration in all the four provinces of Pakistan.

Historical Perspective
The Oil & Gas Development Company Limited (OGDCL) was created under an
Ordinance in 1961, to undertake comprehensive exploratory program and
promote Pakistan’s oil and gas prospects. In July 1989, OGDCL was off-
loaded from Government Budget, making it a self-financing entity. And In
1997, it was converted into Public Limited Company and is now governed by
the Companies Ordinance 1984. In Nov 2003, the GOP divested 5% of its
shares in the company through an initial Public Offering (IPO). The company
is now listed on all the major stock exchanges of the country.

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OGDCL holds the largest share of oil and gas reserves in the country, i.e.
48% of total oil and 34% of total gas reserves. Its percentage share of the
total oil and gas production in Pakistan is 52% and 23% respectively. On the
basis of its activities since inception, the company has made 60 discoveries.

Mission Statement
“Our mission is to become a competitive, dynamic and growing E & P
Company, rapidly enhancing our reserves through world class work force.

Main Product Line

Crude Oil, Gas and Sulphur.

Major Activities
Exploration & Development of Oil & Gas Resources.

PERSONNEL (HR) MANAGEMENT IN OGDCL

In OGDCL, the personnel department performs the human resource
management services. The EOBI / PENSION or the Welfare Section works as
a bridge between the union and management. Major functions of personnel
(HR) department are as follows:

1. Maintenance of service record of employees from their induction to

retirement and beyond.
2. Transfers – Postings.
3. Maintenance of seniority.
4. Handling of personnel grievances.
5. Processing of Pension / EOBI and retirement cases.
6. Implementation of CBA Management’s agreements after every two
years.
7. Maintenance of Database-Computerization.

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8. Responses to Senate, National Assembly Questions / Other
Government Agencies.
Functions of EOBI/PENSION (Welfare) Section
• To deal with union matters.
• To provide facilities to the staff members of their families.
• Grant of house building advance.
• Conveyance advance, to give amount to the staff members after five
years in OGDCL for conveyance.
• Distress grant: At the time when any staff member die, the amount
will be given to his wife.
• Benevolent fund, in extra fund by pension (i.e., Rs.15/- are
deducted from personnel’s income every month). Similarly large number
of facilities they provide to the staff member, due to the arrangement
with management. The union and management make on agreement after
every two years. Welfare section negotiates with union from the
management side.

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26
 REVIEW OF THEORETICAL & PRACTICAL SITUATION
“If Corporation prospers, workers prosper and if corporation fails,
workers fail”. Trade Union

How Situation Occurs

The working pattern of OGDC is a different from other organizations. The oil
and gas fields are located in remote areas. Most of the unskilled labour is
hired from the nearby areas, while skilled staff is hired from all over the
country. The workings conditions are tough and frustrations of worker
during stay in fields create problems for the management.

Labour Demand
At this situation, labour can demand the incentives and other reasonable
facilities because the labour is far away from their families and home.
There are following demands of labour:
• Living facility.
• Life insurance facility.
• Safety measures.
• Medical facility.

Charter of Demand Submitted to the Management

The above mentioned demands of labour working in the remote areas of all
over the country have been summarized and then presented to the OGDCL
higher management for their early consideration. In this charter of demand
it has also emphasized that the fulfillment of these demands will help in
smooth functioning of the company and for the betterment and progress of
the organization.

Management’s Action
In response to the above charter of demand which was submitted by the
Labour Union Representatives the management of OGDCL decided to have
an internal meeting for fulfillment of these demands and for this purpose

27
management told the Union Representatives in writing that they required
two weeks time for taking any decision in this regard. But unfortunately
after the lapse of these two weeks, management did not decided any thing
in favour or against OGDCL labour / workers of remote areas.

Strikes are to be taken

Due to this situation labour union serve a three days strike notice to the
management. They said that during the strike no work will be done in field
as well as in offices.

Union and Management Meeting

After receiving the above mentioned strike notice, OGDCL management
arranged an emergency meeting with the union representatives in OGDCL
Headquarters at Sector F-6, Islamabad. In this meeting both the stake
holders (union and management) resolved these problems.
OGDCL Labour Union President Chaudhry Mohammad Akram represent the
OGDCL union and bargain very comprehensively and forced the management
to accept the labour demands.

Steps That Are Taken By the Management

There are following steps which are taken by the management:

• Considering the field hardships and homesickness of the non –

resident workers OGDC adopted a policy through which field workers
spend 45 days in filed and is allowed 15 days off to live with their
families. This helps them to regain their energies and remove their
frustration.

• Management has taken the steps such as higher compensation and

extended facilities of life insurance, free medical for workers and their
families, good residence and mess facilities at work place.

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 • The Corporation also provides all safety measures and use of helmet
and needed instruments are obligatory for the worker in the field.

SWOT ANALYSIS OF THE ORGANIZATION

SWOT analysis table for OGDCL

STRENGTHS WEAKNESSES

Highly Skilled People Political Influences

Vast Experience Target Customer is limited

Partner are the biggest Players in

Market model is not scalable
the market

First mover advantage Third party dependence

High market cap and revenue Inadequate Financing

OPPRTUNITIES THREATS

Great positioning in the market Technology

Expanding into vertical market Fear of unproductive wells

Few substitutes Vast Market

New Entrants & High Customers have more

International Market opportunities in global market

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 RECOMMENDATIONS

Whereas in the past negotiations tended to be focused around a union

claim, companies adopting a human resources management approach, tend to want
to set the agenda, which in an unionized environment places unions in the position
of responding to management's demands. Congress, in its policy document
'Managing Change' sets down a strategy for a more participative and non-
adversarial style of collective bargaining within the context of the global
competitive environment for business.

30
 CONCLUSION

From the above example we can see that how collective bargaining is
formed and done. It is legal tool for the labour to fight their rights. Management
realizes that the positive role of trade union has helped in implementation of their
policies. It considers the workers as valuable assets of the corporation and union
activities as their genuine right. The labour union feels that good industrial
relations are key to the success of any organization. Workers have the
responsibility to put their best efforts and management has to reward them by
giving them fair share in the profits and meeting their legitimate and law full
demands.

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 REFERENCES

• http://www.google.com
• http://www.scribd.com
• http://en.wikipedia.com
• Statistics for Management (Seventh Edition) by Richard I. Levin and David S.
Rubin (Chapter 8)
• Business Research Methods (Tenth Edition) by Donald R. Cooper and Pamela
S. Schindler

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