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COLLECTIVE BARGAINING Definitions: Collective Bargaining is a mode of fixing the terms of employment by means of bargaining between an organized body of employees and an employer, or an association of employers usually acting through organized agents. The essence of collective bargaining is a bargain between interested parties, and not a decree from outside parties. - Hoxie. Collective Bargaining takes place when a number of work-people enter into a negotiation as bargaining unit with an employer or group of employers with the object of reaching an agreement on the conditions of employment of the work-people. - Richardson. Features of CB: Collective: o Workers collectively bargain for their common interests and benefits. o Workers and management jointly arrive at an amicable solution through negotiations. Strength: o With industrial democracy at work, both the parties bargain from the position of equal strength. Flexible: o CB cannot be rigid or inflexible as its aim is to arrive at a consensus.

Voluntary: o Both the parties negotiate voluntarily in order to have a meaningful dialogue. o Through negotiations, they try to probe each others views thoroughly before arriving at an acceptable solution. o The implementation of the agreement resulting from such a bargaining process is also voluntary. Continuous: o This process begins with negotiations but does not end with an agreement. o Implementation of such an agreement, which is an on-going process, is also a part of CB. Dynamic: o The whole process of CB is influenced by the mental make-up of the parties involved. o As a result, the concept of CB changes, grows, and expands over time. Power relationship: o Each party wants to extract the maximum from the other. o To reach a consensus, both have to retreat from their original positions and accept less than what is asked for and give more than what is on offer. o While doing so, the management tries to retain its control on workplace matters and unions attempt to strengthen their hold over workers without any serious dilution of their powers. Representation: o The participants in CB do not act for themselves. o They represent the claims of labour and management while trying to reach an agreement. o Each participant is an authorized representative of workers and employers. Bi-partite process: o This process does not have third party intervention. Importance of CB: It helps increase the economic strength of both the parties at the same time protecting their interests. It helps establish uniform conditions of employment with a view to avoid occurrence of industrial disputes. It helps resolve disputes when they occur. It lays down rules and norms for dealing with labour. It helps usher in democratic principles into the industrial world. Bargain able Issues: Any issue relevant to management and workers. Traditionally: o Management not too keen on negotiating work methods arguing that is their exclusive right to decide how the work is to be done. o Unions do not want negotiations on production norms and disciplinary matters. They believe that an agreement in this regard would put limits on their freedom to demand at a later stage. o Wages and working conditions have been the primary focus areas of CB. In recent times, CB has extended to a lot many areas. o Examples: Wages and working conditions; Work norms; Incentive payments; Job security;

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Changes in technology; Work tools, techniques and practices; Staff transfers and promotions; Grievances; Disciplinary matters; Health and safety; Insurance and benefits; Union recognition; Union activities/responsibilities; Management rights.

Types of Bargaining: Conjunctive/Distributive Bargaining: Here, the parties try to maximize their respective gains. o In this method, the parties try to settle economic issues through a zero-sum game. Zero-sum game is where my gain is your loss and your gain is my loss. Neither party is willing to yield an inch. Co-operative Bargaining: o Both parties are more open to coming down from their high horses and co-operating. o They are willing to negotiate the terms of employment in a flexible way. o This willingness is because of recession and the need to be able to survive in such difficult times. This would not be possible without each others support and hence co-operative bargaining. o TELCO and Ashok Leyland resorted to co-operative bargaining when the automobile sector was going through a period of recession. o Employees may now be willing to accept a cut in wages in return for job security. o Management may also agree to modernize and bring in new technology and invest in marketing efforts in a phased manner. Productivity Bargaining: In this method, workers wages and benefits are linked to productivity. o Initially, a standard productivity index is finalized through negotiations. o This index is not fixed at an exceptionally high level. o Workers crossing the standard productivity norms will get substantial benefits. o This method of bargaining helps in making the workers realize the importance of raising productivity for organizational survival and growth. Composite Bargaining: o Workers tend to argue that productivity bargaining increases their workload. o Rationalization, introduction of high technology, tight productivity norms hit the unions and workers below the belt. o As a result, workers tend to favour composite bargaining? o In this method, labour bargains for wages as usual. o In addition, they also bargain for such issues that, if permitted, may result in lower employment in some other plant, diluting the bargaining powers of unions. Eg. Workers demand further equity in matters relating to work norms, employment levels, manning standards, environmental hazards, sub-contracting clauses, etc. o We see that workers are no longer solely interested in the monetary aspects to the exclusion of work related matters. o Through composite bargaining, unions are able to prevent the dilution of their powers and ensure justice to workers by putting certain limits on the freedom of employers. o For the employer, this is the lesser evil when compared to strikes and lockouts. The Collective Bargaining Process Identification of the problem: o Nature of the problem influences the CB process. Is the problem very important? Yes; to be discussed immediately. No; can be postponed for some other convenient time. Is the problem minor? Yes; can be solved immediately after its presentation. No; involves the long process of CB. o Nature of the problem also influences the selection of representatives, their size, period of negotiations, and duration of the agreement that is ultimately reached. Preparation for negotiation: o This means that the problem can be solved only through CB. o Representatives have to be selected. Qualities of representatives: patience, composure while carrying out negotiations, and the ability to present views effectively. Selected representatives have to be educated about the complete problem and its pros and cons. o Powers and authority of the negotiating representatives should be clarified. o Fix up the time for negotiations, duration of negotiations, etc.

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But once the negotiations begin, the actual period may vary depending upon circumstances. Negotiation of Agreement: o These are the people most likely to be found at the negotiating table: Chief negotiator generally from the side of management. Representatives of both the parties. o Chief negotiator presents the problem, its intensity and nature, and the views of both the parties. o Then, the representatives of both the parties are invited to present their views. o Principle to be followed by both the parties at the time of negotiations `being attentive to the other party While negotiating, each party, instead of paying attention to the point of view of the other party, tends to think more about their counter arguments and how to say `no to their offer. Both the parties need to maintain a positive attitude and should `think rather than `feel their way through the problem under consideration. o Both parties should try to reach an amicable solution. o When a solution is reached at, it is put on paper, taking into consideration the concerned legislations. o Thereafter, both the parties sign the agreement, which, in turn becomes a binding contract for both the parties. o On the other hand, if no amicable solution is reached, both parties may consider arbitration. Implementation: o The agreement resulting from CB may be temporary. In this case, before its expiry, both parties consult each other and can terminate or renew the agreement depending upon the circumstances. Depending on the attractiveness of the agreement for either of the parties, one may want a renewal while the other may want a termination. This leads to further negotiations. o So, in reality, CB is a continuous process and not a temporary accommodation. Collective Bargaining vs. Negotiation Skills: CB is a process by which the terms and condition of employment of workers are regulated by agreements between their bargaining agent and their employers. Negotiation, on the other hand, is a process of resolving conflicts between two or more parties wherein both or all modify their demands to reach a workable compromise. The process of CB also uses negotiations to reach a mutual consensus. While negotiating issues, parties shift their stand from an ideal position to a settlement point, which is mutually agreed upon. o The position of the settlement point depends on the relative bargaining strength and skill of the negotiator. The sacrifices to be made and the concessions to be yielded, depend to a large extent on the negotiating skills of the bargaining agent. If he is powerful, he will have his way. If this power is challenged on justifiable grounds where other people see reason, he may have to yield his ground. Evolution of Collective Bargaining: CB rose and grew with the trade union movement. Roots of CB lie in Great Britain where it developed in response to the conditions created by the Industrial Revolution. Along with trade unions, the idea of bargaining collectively gained strength in the early part of the 18th Century. Initially, the negotiations were carried out at plant level. By early 1900, industry and national level agreements became quite common. The idea spread across to France, Germany, and USA. And today, through the process of CB, organizations have learnt to cope with industrial conflict.

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THE INDIAN SCENARIO

o In India, trade unions gained prominence much later only after 1900. o In 1918, Gandhiji - as the leader of the Ahmedabad textile workers advocated the resolution of conflict through CB agreements. o But the idea gathered interest only after the Second World War. The Government of that time took steps like setting up of machinery for negotiations, conciliation and arbitration. o The trade union movement and also CB agreements became popular after Indian independence. Moving from agreements at the plant level, such agreements spread to industries such as chemicals, petroleum, tea, coal, oil and aluminum. In ports and docks, banking and insurance, collective agreements were arrived at, right at the national level. Assessment of Collective Bargaining in India: o Other than in Ahmedabad and Mumbai, so far, collective agreements have not made much headway in India. Reasons: Lack of statutory recognition of unions by the country as a whole. Lack of provisions requiring employers and workers to bargain in good faith. The historical problem of lack of trust between the parties Have all stood in the way of collective agreements contributing towards industrial harmony. o Proper conditions have to be created for the success of CB for promoting industrial peace. Encouragement to strong and powerful trade unions. Satisfactory arrangements for union recognition by statute. Creation of conditions in which collective agreements have a chance to succeed. Causes of limited success of CB in India: o Problems with unions: CB mainly depends on the strength of unions. Weak trade unions cannot initiate strong arguments during negotiations. Not many strong unions in India. Indian unions are bogged down by the problems of: multiplicity, inter and intra-union rivalry, weak financial position and nonrecognition. So, unanimous decision is unlikely to be presented at the negotiating table. o Problems from Government: The Government has not been making any strong efforts for the development of CB. Imposition of many restrictions regarding strikes and lockouts has removed the `edge` of the CB process. o Political interference: Interference of political leaders in all aspects of union matters has increased over the years. Almost all unions are associating themselves with some political party or the other. o Legal problems: Now that adjudication is easily accessible, the CB process is losing its importance. o Management attitude: In India, managements have a negative attitude towards unions. They do not appreciate their workers joining unions. Suggestions for better functioning of CB: o The Indian Institute of Personnel Management has offered the following suggestions: A progressive and strong management that is conscious of its obligations and responsibilities to the various stakeholders. A truly representative enlightened and strong trade union should come into being and should function on strictly constitutional lines. There should be unanimity between labour and management on the basic objectives of the organization and a mutual recognition of their rights and obligations. When there are several units of the company, there should be a delegation of authority to the local management. A fact-finding approach and a willingness to use new tools should be adopted for the solution of industrial problems. Pre-requisites of successful bargaining: Employers recognition of the trade union. Bargaining must precede other measures: o Neither party should take any unilateral action. Results of bargaining should be awaited. Employers and employees attitude calls for a change: o The workers and the employers should be quite clear that they are not looking for third party intervention in the form of litigation and adjudication. o They want to sort out their differences in a peaceful way. Top priority to plant level bargaining: o The representatives of the employees must have a firm resolution to have an agreed solution to their individual matters. Negotiations on differences: o Both the parties should negotiate on their points of differences or demands with the sole purpose of making an agreement. Reliance on facts and figures:

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o In order to make the negotiations result into success, the workers and the management agents must rely on facts and figures to substantiate their claims. Giving up unfair labour practices. Written agreement: o The final decisions should be incorporated in a written agreement. o The agreement should include the validity of the agreed matters as also the frequency of its review. Progress review: o Agreements should not be signed and forgotten. o During their implementation, regular meetings should be held between the representatives of both the parties to watch the progress of the implementation. This way any changes, adjustments and amendments can be effected. Respect of agreement: o Both the parties must respect the agreement and see that it is implemented in a fair and justifiable manner. Arbitration provision: o The agreement must include an arbitration clause. o Whenever the parties have any differences pertaining to the interpretation of the terms and conditions, the arbitration clause can be resorted to.

Recommendations of the National Commission on Labour: The NCL (1969) offered the following recommendations. Gradually, withdraw the easy accessibility to adjudication and shift the emphasis to CB. Create the conditions to promote CB. How? o Make the recognition of a representative union as the sole bargaining agent, statutory. o Define the employees right to `strike work and place it in the overall scheme of things. Intensify workers education for building up internal union leadership and make workers more knowledgeable.

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List of Indian entrepreneurs

From Wikipedia, the free encyclopedia

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This is an incomplete list of Indian entrepreneurs and businesspeople.

A. M. Murugappa Chettiar, founder of the Murugappa Group Aditya Jha, Canadian entrepreneur, philanthropist and philosopher; Active in Canadian public affairs Anant Koppar, founder, and former president, of Kshema Technologies Anant Tripathi, founder, and CEO, of Maffick Consultancy Services (www.maffickcs.com) Brijmohan Lall Munjal (1923- ), founder of The Hero Group, which owns Hero Motors Capt. G. R. Gopinath, founder of Air Deccan, vice-chairman of Kingfisher Red Dhirubhai Ambani (19332002), founder of Reliance Industries G. Kuppuswamy Naidu, founder of Lakshmi Mills Ghanshyam Das Birla (18941983), prominent member of the Birla family

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J. C. Mahindra, co-founder of the Mahindra Group J.R.D. Tata, founder of Air India and Chairman of the Tata Group for 52 years. Jamsetji Tata (18391904), pioneering Indian industrialist, founder of the Tata Group of companies K. C. Mahindra, co-founder of the Mahindra Group Karsanbhai Patel (1945- ), founder of the Nirma Group Kasturbhai Lalbhai (18941980), textile baron, founder of Arvind Mills Kiran Mazumdar-Shaw (1953- ), founder of Biocon, the first biotechnology company in India N. R. Narayana Murthy (1946- ), co-founder of Infosys Technologies Raj Anand (1982-), founder of the Kwiqq and winner of Business Week Europe's Young Entrepreneur 2007 Ramji Raghavan (1958- ), Social Entrepreneur, founder of Agastya International Foundation Sabeer Bhatia (1968- ), co-founder of Hotmail Sam Pitroda (1942- ), inventor, entrepreneur, policymaker Subhash Chandra (1950- ), chairman of the Essel Group, launched Zee TV, the first Hindi satellite television channel Suhas Gopinath (1986- ), notable for founding Globals Inc., an Information Technology (IT) company, at age 14 Sunil Mittal (1957- ), chairman and managing director of Bharti Enterprises T. V. Sundaram Iyengar (18771955), founder of the TVS Group Venkat Rangan, Founder of Yodlee.com and Vice Chancellor of Amrita University Vijay Mallya (b. 1955), chairman of the United Breweries Group and Kingfisher Airlines, member of the upper house of the Indian Parliament, and owner of several sports franchises and teams {Bangalore Royal Challengers}

Vishal Gondal (b. 1976), founder of Indiagames Vivin Varghese Meleadan (b. 1988), co-founder of MVS Info Tech Prasad & Praveen (b.2010), Founders of P2 Web Solutions

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