Collective bargaining.

IR & ER.
I R - Relation ship between Management and Employees Collective based. ER Employer employee relationship individual based.

Negotiation
Part and parcel of every day life Communication is very vital Through communication each party puts forth their points Both parties discuss. Come to a Mutual understanding win win This process is negotiation.

 Personal life Negotiation between husband and wife on day to day affairs. Ultimate : usually a compromise to come to a meeting point in the interest of both the parties involved in the negotiation.

Collective bargaining
Performance of mutual obligation of the employer and their representatives of the employees to meet at reasonable times and confer in good faith with respect to wages, hours and other terms and conditions of employment.

Employee of pre 1990

Employee not much educated More supply of labour Less demand Worker was ready to do any work Salary was dictated by employer No migrant labour

Employee of post 1990

Knowledgeable More demand for work force Limited supply Employee is able to choose his employer Bargaining power of employee goes up. Heavy mobility of labour cultural impact.

 Pre 1990 - Lots of strikes and lock outs. Post 1990s - No body is interested in strike; (Both cannot afford) Employer and employee want WIN WIN situation.

Role of Trade Unions in pre 1990

Very strong Highly respected by employee since he did not know things. Strikes and lock out were the order of the day Trade Union leaders were very knowledgeable.

Trade Unions of post 1990

- Very week and fragmented - Mostly community/political party oriented - No mature leadership - Real cause is not helping both the sides, but to make hay while sun shines.

Impact of LPG
Management - Fierce competition QCD Faster development of tech. Impatient share holders for ROI. Union Heavy demand less supply Uncertainty of jobs Erosion of bargaining power Wages linked- productivity/efficiency. Less aggressive labor movements. Government Less political will to take strong decisions.

Role of a good Trade Union

In a democratic set up two parties Ruling Party (Management) Opposition (Trade Union).

Qualities of a good TU leader:

Extend max cooperation to Management not only in maintaining Ind peace/productivity but also finding reasonable solution to every issue on labour in a democratic way. He must be with the Management - not giving up the rights of the workmen. He must be a democrat; autocrat; paternalistic; and strong believer in Lazza fairre.

Handling a Union
Not easy as it looks No fixed solutions Each organization has its style culture Values *Each union/leader has distinctive behavior attitude Be always proactive/ Reactive means weakness

Mind set
Employer is interested in getting more from workers at a lesser cost.

Employee wants the maximum by wages and benefit (without being honest) in giving their best to the Management by productivity.

Shift in employees mental thinking

Not much relying on outside support Prefers to deal in house Goes to outside only in stray cases. Not ready to strike based on outside advice.

 Accumulation of grievances leads to disputes.

Myths the Management carries

Management has a upper hand Management has all the relevant statistics More number of sitting will weaken the bargaining power.

What WC expects
Total support in terms of demands convincing the team implementation opposing outside criticism. name maligning

Areas of caution on WC
More by election than by selection Not perceived as Management boys Totally empowered team Facilities offered like Notice board; place to sit and discuss; etc., View their opinion in right perspective.

Legal angles to WC
- No official standing - R 25 (1) of TN ID Rules: Settlement can be signed by any 5 workmen duly elected in a meeting.

Negotiation process
Five core steps 1. Prepare - Understand the core issues properly. 2.Discuss environment of mutual trust and understanding. 3. Propose : various options / brainstorming 4. Bargain : 5. Settlement

Prepare
Who are the Management reps? Who is the leader/spoke person What are the main issues to be negotiated? What is the history of the issues? What is the demand now? Where do you want to be?

Prepare (Contd)
- Survey similar units on all angles -Make a case to case history -- What is the maximum you can offer -Direct and indirect benefits.

Discuss
Treat the representatives as your equal No individual opinion/matters Give a helping hand whenever needed especially in WC. Make the meeting cordial and useful

Discuss
Mutual trust is most important Total understanding of the situation from other side of the table also issue wise State your point /demand with logic/ make them see reason.

Propose
What is it that you propose to the other side in return for your demands. Brain storm the various options open to both the sides keeping in mind both the demands. Areas of compromise Every meeting should end with progress over that of the previous one.

Bargain/Reconsider
Proper attitude is very important Having finalized the areas of discussion / compromise - to what extent can it be frozen. Draft every point meticoulsy Ensure no matter is left to gossip

Settlement
Step after bargaining and the final step. All agreed items to be written with specific targets/time frames agreed. Joint implementation.

Proactive management exercise in IR

Creation of a knowledgeable, reasonable work force Seamless top down communication on common topics of interest to workmen. Full fill commitments and assurances made in the committed time frame -Interaction with workers by seniors at all levels/dept to workmen to show interest. - Rapport with union is not only the responsibility of HR/IR manager.

Proactive management exercise in IR(contd)

Humane approach ; treated with respect & compassion will make the workmen Positive, reasonable Flow of information at all/some levels Mngmt will have a say against Unions call for strike etc.,

Timing
Do not under estimate or overestimate Strike the iron when it is hot Today is the best day; Now is the right time Once over relief to all. Peace for next 3 years

Factors contributing to positive mindset in Unionized workforce

Communication 2 way; all spheres; Trust building ee should be able to share his views in appropriate manner. Confidence building Words translated into action; promises kept up; fair and transparent, time factor.

Be careful of :
Information/ Statistics you give Language Personnel information avoid. Courtesy extended Communication to those other than office bearers. Closing the meeting

Communicate
To keep your team intact To boost morale of your team
Discourage opponents. How/when you are the judge

Communication (Retd)
Help the WC to effectively communicate Shop floor supervisors to play a vital role Establish that Management is with them. Moral booster

Areas of caution
Rumors Heterogeneous mindset of negotiating team Emotional outburst

Rumors
Awe inspiring rumors Inter union/ intra unionthey know their demands are unreasonable - they have to stage drama for mass appeal.

Mind set
Heterogeneous mind set Uniform thinking Anxiety to talk more

Emotional outburst
When want we want is not accepted When opposite demand is high/unreasonable When there is a deadlock Undue delay

Important factors
Empathy Patience
Understand of the other team.

Do
Stick to the issue of negotiation Have a time frame Be open to understand other sides demands/options/ideas Never think any one is winning or loosing.

Factors contributing to positive mindset in Unionized workforce(ctd)

Training & Development: proper TNI and follow up. Timely recognition: Rewards and compensation Any action fair and firm.

Common postures of Union during negotiations.

Abuse of privileges granted to TU office bearers Emotional outburst HR staff used as feelers.

Common postures of Union during negotiations(contd)

Biased communication to workman Engineered performance Intense desire for participation in in-house programmes .

Tips for negotiators

General opinion disgusting/avoidance Do not take instant decisions Anticipate areas of discussion Brainstorm before going to the table Body language Be fair and strong Do not be a victim of personal remarks

Charter of Demands (COD) sequence

On receipt of a reasonable COD circulate it to all HOD concerned. Collect data in similar industries-preferably competitor. Compute the growth of facilities in your unit over period of time. Convert the above into money

Charter of Demands (COD) sequence

Single excel sheet summaries all the above Management demand be specific Negotiation team Do not change. Evolve a strategy Record minutely all that happens on the table. (only for official purpose).

Charter of Demands (COD) sequencectd

Be a good listener Get clear signals from the Management Use different techniques to put your point Have a positive attitude.

Charter of Demands (COD) sequencectd

Inter Union rivalry Intra Union rivalry

Areas of interest for Management

Productivity Are the norms updated and revised based on skill; capacity etc., Are we as per norms? Is the norms known to employees Is it being achieved? Scope for improvement. PPM Formation of Quality circles/SGA Number of suggestions offered Any incentive schemes that can be linked to Productivity Quality Attendance Any other matters.

- Quality -

Incentives :

Participative mode of employees

Grievance handling procedures.

Pro active steps with the union to avoid unrest

- Keep the channels open always Show keen interest to discuss and resolve issues Be friendly with the office bearers Clearly explain the problems faced by the Management competition. Caution line supervisors role is important.

Standard Chartered bank vs Hindustan Engg and General Mazdoor Union - 2002 I LLJ 1009 Every citizen has freedom of speech and to form Union, but no right to hold meetings and shout slogan in others premises. Freedom is shackled by responsibility- No freedom without responsibility.

IOC vs Joint Commissioner of Labour 1990 I LLN 377

Conciliation officer should apply his mind before signing any settlement even though mutually agreed.

Role of Trade Union today:

Socially committed Technology driven Professionally managed Forward looking.

Both are passengers in a boat