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Collective bargaining in an Organization

MBA (Banking & Finance) Semester 1st

Assignment # 2
Submitted To: Submitted By:
Roll # : Course: Management Course Code:

Prof. Sajid sb Bilal Amjad


AM551498

Human Resource

(MBA-8502)

Department of Business Administration


Allama Iqbal Open University, Islamabad

This assignment is dedicated: To My Beloved Parents, Family, Friends & My Respected Teacher

Prof. Sajid sb
They help and support me to make it possible.

Acknowledgemen t
"All praises are for the Almighty Allah". My deepest and whole-hearted appreciation is for those who helped me in this assignment. Many people each in special and valuable ways have earned my gratitude. I am greatly thankful to my respectable and honorable teachers with whom I ever have spiritual relations. I have taken the honor to praise my teacher Prof. Sajid sb
including all those whose guidance and encouragement is including in this assignment.

Bilal Amjad
MBA (Banking & Finance) Roll # AM 551498

Abstract

1-In this report I discussed about the collective bargaining in an organization.

2-The history of the bargaining is also discussed in this report , how an effective bargaining is takes place in an organization. 3-Whats the merits annd demerits of the collective

bargaining in an organizatin with the help of SWOT analysis. 4-Whats the negotiation process of collective bargaining in the organization. 5- Practical study

Collective bargaining
History:
The union may negotiate with a single employer (who is typically representing a company's shareholders) or may negotiate with a federation of businesses, depending on the country, to reach an industry wide agreement. A collective agreement functions as a labor contract between an employer and one or more unions. Collective bargaining consists of the process of negotiation between representatives of a union and employers (generally represented by management, in some countries[which?] by an employers' organization) in respect of the terms and conditions of employment of employees, such as wages, hours of work, working conditions and grievanceprocedures, and about the rights and responsibilities of trade unions. The parties often refer to the result of the negotiation as a collective bargaining agreement (CBA) or as a collective employment agreement.

DEFINITION:
It is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements which regulate working conditions.

Explantion:
Collective agreements usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms and rights to participate in workplace or company affairs. The union may negotiate with a single employer (who is typically representing a company's shareholders) or may negotiate with a federation of businesses, depending on the country, to reach an industry wide agreement. A collective agreement functions as a labor contract between an employer and one or more unions. Collective bargaining consists of the process of negotiation between representatives of a union and employers (generally represented by management, in some countries[which?] by

an employers' organization) in respect of the terms and conditions of employment of employees, such as wages, hours of work, working conditions and grievanceprocedures, and about the rights and responsibilities of trade unions. The parties often refer to the result of the negotiation as a collective bargaining agreement (CBA) or as a collective employment agreement.

International protection:
The right to collectively bargain is recognized through international human rights conventions. Article 23 of the Universal Declaration of Human Rights identifies the ability to organize trade unions as a fundamental human right.Item 2(a) of the International Labour Organization's Declaration on Fundamental Principles and Rights at Work defines the "freedom of association and the effective recognition of the right to collective bargaining" as an essential right of workers. In June 2007 the Supreme Court of Canada extensively reviewed the rationale for regarding collective bargaining as a human right. The right to bargain collectively with an employer enhances the human dignity, liberty and autonomy of workers by giving them the opportunity to influence the establishment of workplace rules and thereby gain some control over a major aspect of their lives, namely their work... Collective bargaining is not simply an instrument for pursuing external endsrather [it] is intrinsically valuable as an experience in self-government... Collective bargaining permits workers to achieve a form of workplace democracy and to ensure the rule of law in the

workplace. Workers gain a voice to influence the establishment of rules that control a major aspect of their lives.

History, procedures and bargaining in Pakistan:

process

of

collective

The objective of collective bargaining as enunciated in the ILO conventions ratified by Pakistan, is achieved when there is an effective labour organisation, which is independent of control or influence of the employer. It is based on the assumption that the employers have more power inherently in the equation with employees, being at a comparative disadvantage in the matters related to determining terms and conditions of employment. Collective bargaining tends to enhance the bargaining power of the trade unions and puts them, during the process, relatively at par. In the background of collective bargaining is always the threat of economic force and sanctions. The employer can 'lock out' the work force from the work place and unions can shut off the supply of labour. Both the parties would, therefore, appear to be willing and in good faith when they come to the bargaining table to discuss, rather than to dispute all issues that are of common interest. Although the organised settlement of disputes between the employers and employees has received due recognition in Pakistan over the last 25 years, the concomitant and relevant legal systems started developing in British India since at least from the middle of last century.

Negotiation Process:

Union-management relations provide an additional challenge for the human resource function. The necessity of working through these problems is just as much a part of the managerial responsibility as is the development of budgets, work schedules and issuing of orders. While negotiation and consultation are time-consuming, frequently frustrating, and certainly sometimes even threatening, they require some of the same personnel skills and persistence that are necessary to carryout other organisational functions. These responsibilities cannot be avoided, nor would it be healthy for the organization to engage in such an exercise of avoidance. What is negotiation? It is the process by which at least two parties with essentially different perceptions, needs, motivations try to agree on a common ground of mutual interest. All human interactions are characterized by some kind of negotiation between (or among) people trying to give to and take from one another. Negotiation exists when somebody is trying to influence another person through the use of various media. The process of negotiations may be broadly divided into three stages: analysis, planning and discussion.

Analysis:

Management may carryout a survey of comparable companies doing similar business, to gather information on the prevailing trends and levels of salaries and benefits given to the non-management or unionized staff. The objective and results of such surveys should be to provide meaningful data in order to justify the time taken and effort made in completion the task. The result

should reflect the surveying company's position vis--vis other companies as accurately as possible in order to draw realistic conclusions and direction for the ensuing process of planning and discussions.

Planning:

Management has to take an informed decision as to where does it want to progress from the existing position. Whether the traditional pattern of increases in the cash package is to be maintained or a change is to be brought about in order to compete with other companies particularly in view of the changing market trends. Following are some of the aspects, which are discussed and agreed during the planning stage. Impact of proposed agreement cash package on the company, demands and pressure points expected from the union and how will they be tackled by management, composition of management negotiation team, management's strategy if things do not move forward is planned, or if the negotiations fail, actual rate of inflation,

industrial relations situation and the general economy in the country and government's labour policy etc.

Practical study

History

of Telenor:

Telenor Pakistans parent organization Norwegian Telegraph Administration was founded in 1855 as a telegraph services provider. In 1969 The Norwegian Telegraph Administration changed its name to Norwegian

Telecommunications.
In 1995 Norwegian Telecommunications changed its name to Telenor. Today Telenor is an international provider of high quality telecommunications, data and media communication services. It ranks as worlds 7th largest mobile operator with a total of 164 million subscribers in its mobile operations.

Telenor

Pakistan:

Telenor Pakistan launched its operations in March 2005 at that time it was the largest direct European investment in Pakistan. It is a leading telecom operator of Pakistan. Telenor Pakistan is the fastest growing network in Pakistan. It provides coverage in many remote areas. Telenor Pakistan has 2500 direct and 25000-plus indirect employees. It has a network of twenty three sales and service centers, more than 200 franchisees and about 100,000 retail outlets

Mission:

Telenors primary goal is to create greater value for our shareholders, customers, employees and partners, and for society in general

Vision:

Telenors vision is simple: We're here to help

Core Values:
Telenor has four core values Keep Promises Make it Easy
Be Inspiring Be Respectful

Collective Bargaining:
In Telenor the line managers of the concerned department are responsible to raise the voice of their subordinates and they act as arepresentative whenever the issues of collective bargaining are needed.

Responsibility to Bargain collectively: Telenor recognizes the right to freedom of association and collective bargaining in mature labor environments. In such environments Telenor allows its employees to freely elect representatives among the employees, unless this would represent a breach of national laws and regulations.

SWOT Analysis:

Strengths:

In Telenor all the matters concerning the employees issues with job or in terms of relations with the corporate are all written in the company policies and procedures in a structured manner. There is a comprehensive demarcation between the moral and legal codes of conduct which is communicated to the employees at induction program and also written in the employee portal. Employee relation and moral guidelines are an integral part of the corporate culture of Telenor. Employee rights at work place that are promulgated by the law of the land and the rights that are prevailed in the corporate charters both are implemented in Telenor. In Telenor, employer relation with employees is highly feasible, accessible and encouraged at all levels of organization hierarchy. The special arrangement by the Telenor as the Regulatory and Interconnection Strategy Department acts as a precedent to handle corporate legal affairs.

Weaknesses:

In Telenor, due to the rigid shift structures, social integration among employees is not of satisfactory level. Due to the non unionization culture of Telenor the employee representativeness is not appropriate. Opportunities: By working in Telenor an employee can have an exposure of multinational organization where the legal and employee rights issues are fully intact. The egalitarian culture prevailing in Telenor gives an insight to its employees a transparent and fair treatment through which an employee can fully utilize his abilities

Opportunities:

Favorable Macroeconomic indicators Low cellular market penetration Inefficiency & poor performance of other mobile networks Co branding e.g. Ufone with ABN AMRO Strategic Alliances & Infrastructure Sharing Facilities E-commerce usage. Mobile Number Portability International Mobile Equipment Identity System

Threats:

Rolling Customers Privatizations & deregulationsincreased competitions. Grey Traffic MNP mobile number portability Wireless technology at boom Public pay phones & calling cards usage where network is not available Propagandas attacking brand image

Conclusion recommendations:

&

Association and the Right to Collective Bargaining the supplier shall ensure and ... proportion the workforce agree, collective bargaining of employees and/or workers ... to freedom of association and collective bargaining are restricted under national law. The traditional collective bargaining process has served the region well and remains indispensable to the maintenance of good industrial relations practices. However, the prevailing scope of collective bargaining as a system of management-labor relations cannot adequately address many of the challenges faced by Caribbean enterprises in new era of globalization .The study revealed that it is the common view of trade

unionists, human resource managers and labor administrators that the prevailing approach to collective bargaining does not fully address all issues of common concern to management and workers. In particular, the agenda does not adequately address the issue of competitiveness of companies, human resource development and company policy decisions affecting workers.

References:

Herman, Jerry J. "With Collaborative Bargaining, You Work with the Union--Not Against It." The American School Board Journal (1985) Smith, Patricia; and Russell Baker. "An Alternative Form of Collective Bargaining." Phi Delta Kappan 67 (1986)

Annexes:
Are attached.