ppt on collective bargaining

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Presentation Transcript

Slide 1: 

COLLECTIVE BARGAINING

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Meaning : Collective Bargaining is negotiation between an employer or group of employers and a group of work people to reach an agreement on working conditions. Representatives of employers and employees negotiate, administer and enforce an agreement.

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Critical Success Factors : Interaction in good faith While safeguarding the interests of employees, Union cannot ignore the survival and success of organization. Management must protect the rights of trade unions Bargaining agent must truly represent majority of workers. Management must not exploit worker’s disunity Both Management and Union must be vigilant about politicians who normally exploit

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Definition : Negotiation about working conditions and terms of employment between an employer, a group of employers, or one or more employers organizations on the one hand and one or more representative workers organizations on the other with a view to reaching agreement

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Meaning : Group process Involves negotiations Bipartite exercise involving representatives of union of employees and employers Objective is to reach an agreement Purpose is to improve working conditions of employees viz. wages, welfare, security, freedom, etc., Not merely an economic process but socio-economic process (mutual respect to views, values, aspirations, etc)

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Scope of Collective Bargaining : Wages fixation, increments and bonus payment Hours of work and overtime Terms and conditions of work, safety, welfare and health care Grievance procedure Labour productivity, labour standard and modernization Union-Management relations including workers participation

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Types of Collective Bargaining : Plant level Agreement settled between management and representatives of workers union Industry level Number of mfg. units within an industry where workers face similar problems Union of Unions (Industry Union) National level Common problems cutting across industries, regions are discussed Eg. Agreement between labour and management to “Rationalize Work Practices”

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Process of Collective Bargaining : Phase I : Charter of demands by Bargaining Agent Phase II : Preparation for Negotiation Phase III : Bargaining Phase IV : Collective Agreement Phase V : Contract Administration

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Phase I : Steps Registration of Union Recognition of Union Recognition of Bargaining Agent (Union having majority membership) Charter of Demands Present it to management for agreement, for and on behalf of employees.

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Phase II : Preparation by Management Data Collection : Internal and External Policy Formulation : wage level , concessions they could allow, balancing between viability and labour costs, balancing between interests of share holders vs. labourers, constraints on pricing vs. competition Management Strategy : Prioritization of demand; stand against Union (tough or accommodative), etc. Preparation by Union : collect data, formulate policy (strike or not; management’s capacity to pay, public support, etc.,), formulate strategy

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Phase III : Options available Total rejection Reject outright a few, and offer to consider some Temporary suspension of negotiation for the management to study the implication of demands and come prepared for re-start of negotiations While agreeing union’s demands, management put forth counter demands

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Phase III : Criteria for Bargaining Give and take attitude from both sides Keep communication channel open Capacity to read others “hidden agenda” (by negotiation or by collection of intelligence data) Identify “sticking point” (if offered less will lead to industrial strife)

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Phase III : Strategies for Bargaining (identified by Watton & Mckersie) Intra-organizational bargaining Management and Union prefix strategy Limits up to which they are prepared to go down on their own as well as others demands Attitudinal Structuring Ongoing relationship instead of ad hoc arrangement Involves trust and confidence; Work together as partners

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Phase III : Strategies for Bargaining (identified by Watton & Mckersie) Intra-organizational bargaining Management and Union prefix strategy Limits up to which they are prepared to go down on their own as well as others demands Attitudinal Structuring Ongoing relationship instead of ad hoc arrangement Involves trust and confidence; Work together as partners

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Phase III : Strategies for Bargaining (identified by Watton & Mckersie) Distributive Bargaining One Gain – Another Lose (eg. Wage rise for labourers is reduction in profit for management) Interactive Bargaining (Best Strategy) Win-Win situation Eg. Workers increase productivity and claim higher compensation; Management assist workers achieve their objective by taking supportive role.

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Phase III : Strategies for Bargaining (identified by Watton & Mckersie) Bargaining power of parties Management has upper limit; Union has sticking point; Two points are called “Anchors” Factors determining bargaining power Styles, objectives and motives of negotiators Persuasion and coercion skills and techniques Competition

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Phase IV : Writing down Collective Agreement Also known as “Labor Contract”, “Union Contract” or “Labor-Management Contract” Written statement of terms and provisions of the agreement

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Phase V : Contract Administration Transparency Management has right to manage & involves fairness, equity, transparency of administration and free flow of information. Procedure for handling contractual disputes Spell out detailed procedure in implementation of provisions of contract Follow the spirit of agreement

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Criteria for making Collective Bargaining effective : Proper selection of negotiating team Consider Union as a Partner Understand views and interests of other party with open mind Adequate homework Sense of belongingness (on part of union) Strikes and Lockouts are to be the last resorts

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Policies : Collective Bargaining be considered as an educational process Collective Bargaining must be treated as a form of finding out an optimum solution to a given problem Both parties have equal power Have trust and confidence Leadership qualities Follow State laws

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THANK YOU

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