Académique Documents
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SUBJECT
PRESENTED TO
MR. ABDUL KHALIQ
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.
Before entering the actual report, I would like to thank my respected tutor
Mr. Abdul Khaliq for his support and guidance.
I hope that this report meets the criteria, which I asked to adhere to.
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ABSTRACT
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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
LABOUR LAWS...................................................................................9
LABOUR UNION.................................................................................12
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SWOT ANALYSIS OF THE ORGANIZATION..................................28
RECOMMENDATIONS...........................................................29
CONCLUSION....................................................................30
REFERENCES....................................................................31
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BACKGROUND
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.
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
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
Unfair dismissal
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Child labor
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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
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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.
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.
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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.
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
1. Prepare
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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
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
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
1. It is a group process.
2. Negotiations.
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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.
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Importance to employees
Importance to employers
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4. Collective bargaining plays a vital role in settling and preventing
industrial disputes.
Importance to society
1. National level
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3. Company/enterprise level
Strikes:
Lockouts
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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.
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.
Major Activities
Exploration & Development of Oil & Gas Resources.
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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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REVIEW OF THEORETICAL & PRACTICAL SITUATION
“If Corporation prospers, workers prosper and if corporation fails,
workers fail”. Trade Union
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.
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
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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.
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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.
STRENGTHS WEAKNESSES
OPPRTUNITIES THREATS
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RECOMMENDATIONS
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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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