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EMPLOYEES AND UNION

RELATIONS
1. Different between labour movement and trade union
movement”-

Trade union:-Organization whose membership consists of workers and


union leaders, and whose principal purposes are to
(1)negotiate wages and working condition terms, (2) regulate relations between
workers (its members) and the employer, (3) take collective action to enforce the
terms of collective bargaining, (4) raise new demands on behalf of its members, and
(5) help settle their grievances. Trade unionsare generally classified as:
(a) Company union thatrepresents interests of only one firm and may not have
anyconnection with the trade union movement. Also calledhouse union,
a company union is often a bogus one and generally illegal. (b) General union that
represents workers from several firms from the same industry. Also calledindustrial
union. (c) Craft union that represents skilled workers in a particular field such as
carpentry or welding.

Labour movement:The labor movement (or labour movement) is a broad


term for the development of a collective organization of working people, to campaign
in their own interest for better treatment from their employers and political
governments. Labor unions and trade unions are common names for the specific
collective organizations within societies, organized for the purpose of representing
the interests of workers and the working class. Many elite-class individuals and
political groups may also be active in and part of the labour movement.

2.what is need for trade union movement:-

Frontline article by Charlie Kimber, December 2008

The scale of the crisis, and the avalanche of job losses, underlines the need for the working class to
fight. This is why it was so disappointing to see two unions that have led the resistance, the teachers'
NUT and the civil service's PCS, turn away from strikes earlier this month.The immediate issue at
stake was a response to Gordon Brown's pay curbs in the public sector. The NUT executive decided
that a 52 percent vote for action was not enough. Within hours, the government had authorised talks
with the PCS over the pay issues which led to a strike planned for 10 November. Again, the executive
decided to suspend action.In both cases Socialist Workers Party members on the executives voted for
strikes, against the majority.

3. What is the reason for outside leadership is trade union:-

The leadership of trade unions is a much neglected aspect in the field of contemporary leadership studies
despite the growing importance of the role as these organizations struggle to survive in the current
political and economic climate extant in most Western countries. By employing a methodology which
uses a series of biographical case studies of leaders to examine the leadership in a single trade union,
this article evaluates the significance of union leadership and demonstrates the importance of historical
context in leadership study. It also shows how leadership and the organization's environment inter-
connect to shape the way unions develop over time together and discusses some of the implications of
the study for theory.

4. what is labour union:


A "Labour Union" has been described as "a continuous association of wage earners for the purpose of
maintaining or improving the conditions of their working lives".

Historically, the term "Labour Union" was applied to the type of structure which welcomed all classes of
workers as opposed to the "Trade Union" which was an association of workers in a particular craft or trade.

Today, the "Labour Union" has assimilated trade/craft workers in an industry, fostering the concept of
solidarity of the working class and the "brotherhood of man."

(Harold S. Roberts, "Robert's Dictionary of Industrial Relations", BNA, 1971.)

5. what is settlement:-

A settlement, as well as dealing with the dispute between the parties is a contract between those parties,
and is one possible (and common) result when parties sue (or contemplate so doing) each other
in civil proceedings. The plaintiff(s) and defendant(s) identified in the lawsuitcan end the dispute between
themselves without a trial[1].
The contract is based upon the bargain that a party foregoes its ability to sue (if it has not sued already),
or to continue with the claim (if the plaintiff has sued), in return for the certainty written into the settlement.
The courts will enforce the settlement: if it is breached, the party in default could be sued for breach of
that contract. In some jurisdictions, the party in default could also face the original action being restored.
The settlement of the lawsuit defines legal requirements of the parties, and is often put in force by an
order of the court after a joint stipulation by the parties. In other situations (as where the claims have been
satisfied by the payment of a certain sum of money) the plaintiff and defendant can simply file a notice
that the case has been dismissed.

6. what is union security:-


Union Securities Corporation was an independent investment banking firm in existence from 1938 through its acquisition in 1956 although the name
would survive through 1972. Union Securities was created in 1938 as a spinoff of the investment banking operations of J. & W. Seligman & Co. as a
result of the Glass-Steagall Act.

In 1956, the firm merged with Eastman Dillon & Co.[1] The Union Securities name remained until 1972, when what was then known as Eastman Dillon
Union Securities merged with Blyth & Co. to form Blyth, Eastman Dillon & Co. That firm was later acquired by Paine Webber, which is today a part
of UBS

7. Name any four issues settled by collective bargaining:-

COLLECTIVE BARGAINING ISSUES

Labor unions were formed to help workers achieve common goals in the areas of wages,
hours, working conditions, and job security. These issues still are the focus of the collective
bargaining process, though some new concepts have become the subjects of negotiations.
Table 1 lists the issues most often negotiated in union contracts.

THE SETTLEMENT PROCESS

Union contracts are usually bargained to remain in effect for two to three years but may
cover longer or shorter periods of time. The process of negotiating a union contract,
however, may take an extended period of time. Once the management and union members
of the negotiating team come to agreement on the terms of the contract, the union
members must accept or reject the agreement by a majority vote. If the agreement is
accepted, the contract is ratified and becomes a legally binding agreement remaining in
effect for the specified period of time.

SOURCES OF POWER

If the collective bargaining process is not working as a way to settle the differences between
labor and management, both sides have weapons they can use to bolster their positions.
One of the most effective union tactics is the strike or walkout. While on strike, employees
do not report to work and, of course, are not paid. Strikes usually shut down operations,
thus pressuring management to give in to the union's demands. Some employees, even
though allowed to belong to unions, are not allowed to strike. Federal employees fall into
this category. The law also prohibits some state and municipal employees from striking.

Collective Bargaining Issues

Wages Hours Working Conditions Job Security

Regular Compensation Regular Work Hours Rest Periods Seniority

Overtime Compensation Overtime Work Hours Grievance Procedures Evaluation

Incentives Vacations Union Membership Promotion

Insurance Holidays Dues Collection Layoffs

Pensions Recalls

need to cross the picket line in order to do the jobs of the striking workers.

The boycott is another union strategy to put pressure on management to give in to the
union's demands. During a primary boycott, not only union members but also members of
the general public are encouraged to refuse to conduct business with the firm in dispute
with the union.

Though it is rarely done, management may use the lockout as a tactic to obtain its
bargaining objectives. In this situation, management closes down the business, thus
keeping union members from working. This puts pressure on the union to settle the contract
so employees can get back to their jobs and receive their wages.

GRIEVANCE PROCEDURES

Once a collective bargaining agreement is settled and a union contract is signed, it is


binding on both the union and management. However, disagreements with contract
implementation can arise and violations of the contract terms can occur. In these cases, a
grievance, or complaint, can be filed. The differences that must be resolved are usually
handled through a step-by-step process that is outlined in the collective bargaining
agreement. The grievance procedure begins with a complaint to the worker's immediate
supervisor and, if unresolved at that level, moves upward, step by step, to higher levels of
management. If no resolution is found at any of these levels, the two parties can agree to
have the grievance submitted to an impartial outside arbitrator for a decision binding to the
union and management.

8. What is productivity bargaining:-

Productivity Bargaining
 Productivity bargaining is a more specific type of collective bargaining that occurs when managers
begin to draw up specific ways that the employer/employee relationship will be changed. The goal of
management in this case is to increase the productivity of the workers without having to hire more labor.
In return, management agrees to raise the wages of the workers.

9. Define workers participation in management:-

Definitions:

The concept of WPM is a broad and complex one. Depending on the socio-political environment and
cultural conditions, the scope and contents of participation change.
International Institute of Labour Studies: WPM is the participation resulting from the practices
which increase the scope for employees’ share of influence in decision-making at different tiers of
organizational hierarchy with concomitant (related) assumption of responsibility.
ILO: Workers’ participation, may broadly be taken to cover all terms of association of workers and
their representatives with the decision-making process, ranging from exchange of
information,consultations, decisions and negotiations, to more institutionalized forms such as the
presence ofworkers’ member on management or supervisory boards or even management by
workersthemselves (as practiced in Yugoslavia).
The main implications of workers’ participation in management as summarized by ILO:
• Workers have ideas which can be useful;
• Workers may work more intelligently if they are informed about the reasons for and the
Intention of decisions that are taken in a participative atmosphere.

10. What is labour welfare?

Labour welfare has been defined in various ways, though no single definition has found
universal acceptance. The Oxford dictionary defines labour welfare as "Efforts to make
life worth living for workmen." Chambers dictionary defines welfare as "A state of faring
or doing well. Freedom from calamity, enjoyment of health and prosperity[2]".

The Encyclopedia of Social Science defines it as "the voluntary efforts of the employers
to establish, within the existing industrial system, working and sometimes living and
cultural conditions of employees beyond what is required by law, the customs of the
industry and the condition of market"[3].

PART – B

11(A) Describes peculiarities of labour movement in India:-

The term labour movement or labor movement is a broad term for the
development of a collective organization of working people, to campaign in their
own interest for better treatment from their employers and governments, in
particular through the implementation of specific laws governing labour
relations. Trade unions are collective organizations within societies, organized for
the purpose of representing the interests of workers and the working class.
Many ruling class individuals and political groups may also be active in and part
of the labour movement.
1. It is an association either of employers or employees or of independent workers. They may consist
of :-

o Employers’ association (eg., Employer’s Federation of India, Indian paper mill association,
etc.)

o General labor unions

o Friendly societies

o Unions of intellectual labor (eg, All India Teachers Association)

2. It is formed on a continuous basis. It is a permanent body and not a casual or temporary one. They
persist throughout the year.

3. It is formed to protect and promote all kinds of interests –economic, political and social-of its
members. The dominant interest with which a union is concerned is, however, economic.

4. It achieves its objectives through collective action and group effort. Negotiations and collective
bargaining are the tools for accomplishing objectives.

5. Trade unions have shown remarkable progress since their inception; moreover, the character of
trade unions has also been changing. In spite of only focusing on the economic benefits of workers,
the trade unions are also working towards raising the status of labors as a part of industry.

6.

(b) What are causes of labour problem:-

The labor problem" is an economics term widely used toward the turn of the twentieth century
with various applications.[1] It has been defined in various ways, such as "the problem of
improving the conditions of employment of the wage-earning classes.

Reduced quality of work because of


Discontinuance of business, changed Industrial
process, seasonal fluctuations in relation to
volume of business and Industrial depression etc.
were some of the reasons for occurrence of labour
turnover.
The nature of work, low wages, poor working
conditions, less opportunities for advancement & so
on also create the problems of labour turnover.
Bad relations of workers with the management also
cause labour turnover. When the management is not
satisfied with the performance of the employee, it
takes disciplinary actions against them.
Some times workers involve the activities of
union. In many situations these union base
activities of the workers create conflict with
the management. Due to that reason labour
turnover occur.
Labour turnover may be occur due to the
poor health of the employee, accidents,
death, superannuation etc. which are the
personal problems of employees.
12(a) what are the types of trade union:-
Trade unions now are of mainly 4 types:

1. Craft union- They stand for skilled laborers that work in a particular sector
or are employed in a particular craft.

These unions are also called as horizontal unions. For example carpenters
union.

2. Industrial unions- they represent the workers trading in an industry. All the
workers in that industry, not considering which occupation or which job
comes under that industry's union.
3. General unions- general unions represent laborers from all industries and
professions irrespective of what sector of the workforce they come from.
4. White collar unions- they stand for professionals who work from an office such as those who occupy a
managerial or administrative chair.

Generally trade unions prefer peaceful methods for achieving their demands, but they can also go to extends of
indefinite strikes and such practices

(b) Describe the aim and objectives of workers education:-

Workers' Educationis a means of providing


workers and their representatives with the
trainingthey need to play an effective role
in the economic and social life of their
societies

Objectives
1To promote critical awareness of problems, privileges
and obligations as workers and citizens;
2To enhance self confidence and build up scientific
attitude;
3To educate them to develop their organizations
through which they can fulfill socio-economicfunctions
andres pons ibilitiesin rural economy and strengthen
democratic, secular and socialist fibre of rural society;
4To motivate for family welfare planning and to combat
social evils.

13 (a) Define strike, Explain various types of strike:-


Strike action, often simply called a strike, is a work
stoppage caused by the mass refusal of employees to work. A strike usually takes
place in response to employee grievances. Strikes became important during
the industrial revolution, when mass labour became important
in factories and mines. In most countries, they were quickly made illegal, as factory
owners had far more political power than workers. Most western countries partially
legalized striking in the late 19th or early 20th centuries.

n Economic Strikes (Primary - Secondary - Partial)

Intended to resolve a “Bargaining Impasse”.

Can only occur in connection with contract negotiations.

n Unfair Labor Practice Strike

Purpose is to force the employer to cease committing what


the union believes to be unfair labor practices. It may or may not
occur during negotiations.

n Wildcat Strikes

Conducted by groups of workers without the authority and


consent of the union.
n Sympathy Strike

Refusal by one union to work for its employer to pressure


another (or the same) employer in it dealings with a second
union.

n Jurisdictional Strike

To pressure an employer to assign work to the members of


one bargaining unit rather than another or to pressure an
employer to recognize one union as representative of its
employees when it already recognizes another.

n Lockout

Management's equivalent of a strike. It can only occur


legally when an existing labor agreement has expired and there
is truly an impasse in contract negotiations.

(b) Describe the types of agreement:-

Meeting of minds (or an evidence of mutual accord or understanding) between two or


more legally competent parties, about their
relative duties and rights regardingcurrent or future performance. Although a
binding contractcan (and often does) result from an agreement, an agreement
typically documents the give-and-take of anegotiated settlement and a contract
specifies the minimum acceptable standard of performance.

Types of agreement;-

This quick guide provides an overview of the most common types of agreements made
between the university and outside organizations.
Most agreements set specific requirements for transfer of funds or other assistance from
one institution to another; other types of agreements do not include financial assistance.
The agreement types listed here are reviewed, negotiated, and approved by the
Sponsored Projects Office, on behalf of the Regents of the University of California, except
where noted otherwise.

SPONSORED AGREEMENTS

Sponsored agreements set out requirements for accepting funds in support of a specific
project or program. The requirements ("terms and conditions") included in these
agreements usually specify time periods for expending funds and contain provisions for
financial and technical reporting and intellectual property assignments, including patents
and copyrights.

Grant

A grant is type of financial or other assistance awarded to an organization for the


conduct of research or other program as specified in an approved proposal. A grant is
used when the sponsor anticipates no substantial programmatic involvement with the
recipient during the performance of the project. Terms and conditions on grants are
flexible, including fiscal management of awards. Grants are the most commonly used
type of sponsored agreement.

Contract

A contract is used when the principal purpose of the agreement is to provide tangible
results or other "deliverable" items or to carry out a prescribed service for the direct
benefit or use of the funding agency. Terms and conditions on contracts usually are
strict, and fiscal management normally is not flexible.
Many types of contracts exist. The most common type on campus is the cost-
reimbursement contract, in which the sponsor pays for the full costs incurred in the
conduct of the work up to an agreed-upon amount. The campus rarely accepts fixed-
price contracts, in which the awarding agency pays a predetermined amount rather than
reimbursing actual expenditures. Fixed-price contracts can create serious financial
burdens.

Cooperative Agreement

A cooperative agreement is used when the purpose of the agreement is similar to that of
a grant, but substantial programmatic involvement of or coordination by the funding
agency is anticipated during the project.

Sub award or Subcontract

A collaborative subaward is written under the authority of and consistent with the terms
and conditions of an award (a grant, contract or cooperative agreement) that transfers a
portion of the research or substantive effort of the Berkeley prime award to another
institution or organization. These agreements, commonly referred to as subcontracts,
can be in the form of a subgrant, subcontract, or subagreement.
SPO is responsible for issuing collaborative awards.

Intercampus Suballocation

An intercampus suballocation is the term for a subaward transferring funds between two
campuses of the University of California. The agreement takes the form of a brief memo
from one campus to the other. As with other subawards, an intercampus suballocation
from one UC campus typically passes on to the other campus the same terms and
conditions of the prime award from the funding agency.

Intra-university Transaction

An intra-university transaction (IUT) is the award mechanism for a Department of Energy


laboratory managed by the University of California to award research funds to a UC
campus. The IUT is governed by the policies of a master memorandum agreement.

Consulting Agreement

A consultant is an independent contractor hired to provide expert advice for short or


intermittent time periods. The Business Contracts Office writes consultant agreements for
contractors on campus.

UNFUNDED AGREEMENTS

Researchers often collaborate on research or share research tools with other scientists or
institutions without receiving funding. For many unfunded collaborations, a written
agreement is beneficial or necessary. Unfunded agreements set out expectations, terms,
and requirements to protect the interests of the investigators and the participating
organizations. Such agreements may also involve use of university property and space,
faculty time, students, protocol for human and animal subjects that must be approved by
university officials and compliance committees. Unfunded agreements from industry
often contain restrictive language that may conflict with basic academic and intellectual
property rights, and other terms that must be negotiated.

Memorandum of Understanding/Collaboration Agreement

A memorandum of understanding, or MOU, is an agreement that specifies mutually


agreed-upon expectations between two (or more) entities to collaborate on a project
without exchange of funds. MOUs take many forms and may be referred to by other
titles, for example, Memorandum of Agreement.

Teaming Agreement

A teaming agreement is used when two or more parties want to collaborate in producing
a proposal in response to a solicitation. All parties agree in advance how they will work
together and that they will work together if the award is made.

Visitor Agreement

An agreement is sometimes required by the employer of a visiting fellow or other


industrial visitor to campus. The visitor agreement specifies terms of their participation in
research on campus, often addressing issues such as intellectual property rights.

Material Transfer Agreement

A material transfer agreement (MTA) is a contract that governs the transfer of tangible
research materials (usually biological) between two organizations. The Industry Alliances
Office negotiates the MTA when a Berkeley investigator wishes to receive materials from
another institution. The Office of Technology Licensing handles MTAs to transfer research
materials from Berkeley to outside institutions.

GIFTS
Unlike funds governed by agreements, gifts are awarded irrevocably and without
contractual requirements ("no strings attached"). The Development Office, on behalf of
the Regents, accepts funds awarded by an external agency, institution, or individual in
the form of a gift or donation.

14(a) What are the factors favoring collective bargaining:-


collective bargaining has been around since world war 2 and has developed rapidly,
some collective bargaining agreements are registered with the labour court and are
binding by law, however others are only mutually accepted agreements.
the advantages of collective bargaining include:

· Its an open means of airing grievances in an orderly negotiating factor. employees


which has issues regarding certain aspects of their work can adress them in a calm
collectiveenvironment.
· Redrsses the imbalance of power. employers have major power within society the
use of collective bargaining restores a balance beteen employees and employers
· Flexible.
· Involves workers.
· Manages conflict. conflict between the social partners can be managed through
negoation which in turn creates industrial peace and a harmonised society.
· Requires consent of all representatives involved.
collective bargaining encourages industrial peace and less strikes which is a major
factor wich encourages FDI ( foreign direct investment)

(b) Explain the theories of collective bargaining:-


Collective bargaining is a process of voluntary negotiation between employers and trade
unions aimed at reaching agreements which regulate working conditions. 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
Collective bargaining theory refers to studies carried out by UK political
economist Alfred Marshall (1842-1924) into the negotiation of wage rates and
conditions of employment by representatives of the labor force (usually trade
union officials) and management.

15(a) how does trade union help to promote industrial


relations:-
The relationship between Employer and employee or trade unions is called Industrial Relation.
Harmonious relationship is necessary for both employers and employees to safeguard the
interests of the both the parties of the production. In order to maintain good relationship with the
employees, the main functions of every organization should avoid any dispute with them or
settle it as early as possible so as to ensure industrial peace and higher productivity.
Good industrial relations depend on a great variety of factors. Some of the more obvious ones
are listed below:
1. Industrial relations – No enterprise can escape its good and bad history of industrial
relations. A good history is marked by harmonious relationship between management
and workers. A bad history by contrast is characterized by militant strikes and lockouts.
Both types of history have a tendency to perpetuate themselves. Once militancy is
established as a mode of operations there is a tendency for militancy to continue. Or
once harmonious relationship is established there is a tendency for harmony to continue.
2. A trade union gives a professional businesslike view on current labour dealings with a
company. Often an individual is not verbally skilled to do this so management
perceives this to be naivete and...

Read more: To protect workers from unfair wage and benefit discrimination, ensure
safe working conditions, have input on the number of hours worked, including
holidays, fair overtime compensation, and act as...

(b) Discuss the reason for failure of workers participation in management in


india:-
n Modern Management practices, Workers of a company are also considered Partners of the
firm. Partner in the sense, they are partners in the success of the organization. The success of
an organization though partly depends upon the Management, participation of the workers in the
management heavily enhance the chances of success of the business.

Workers are to be recognized as a part and parcel of the Organization and must be given good
opportunity to represent themselves in managing at least their own work area and at the wider
perspective offering them opportunities of higher management as and when the actual higher
management cadre is on vacation or on some deputation etc.

Among workers, the talent must be recognized and fully utilized in order to make them future
managers of a given division or department.

Wherever there is failure in recognition and higher offering of position to workers, there would
be unionization, dissatisfaction and turmoil, which will result in all sorts of set back to the
progress of the organization.

This is a very wide subject to write, but here, I think, this suffice.
PART – C

16(A) Describe the industrial and social changes which have


tremendous impact on trade union in developing countries:-
in the early nineteenth century America was that members of the upper class?
A- came to hold the same cultural and religious values as wage earners in contrast to the elitism
that in the eighteenth century had kept the gentry and the "common people" apart.
B- openly distanced themselves by values and lifestyle from wage earners in contrast to the
shared cultural and religious values that had united the gentry and ordinary folk in the
eighteenth century
C-became more hypocritical, pretending to share cultural and religious values with wage
earners, but actually behaving very differently
D-tended to claim that they had risen from "rags to riches" and to flaunt their crude tastes and
rough manners in contrast to the "gentlemanly" values of the eighteeth-century elites.

Trade Unions in Developing Countries, Wake up!


Labour or trade unions are an important element in the production process of any economy. They are formed
mainly to protect the interests of their members, the workers who produce the wealth of the nation. In most cases,
labour unions engage in negotiations with the respective employers to squeeze out better working conditions for
their members. Labour unionism has been known all over the world to effect positive changes in the society.
Nigeria is not an exception, especially in the periods before and immediately after independence. In the recent past
too, labour unionism has produced several achievements in Nigeria.

However, by acts of commission or omission, labour unionism in Nigeria has suffered some setbacks in the more
recent past. The emergence of self-serving and corrupt governments in the country has led to the counter-
emergence of compromising, opportunistic and myopic labour unionism, particularly in the public sector. Their
motto now seems to be: ‘If you cannot beat them, join them.’

The employee compensation system is supposed to be related to the level of productivity, with labour unions
ideally mobilizing their members towards higher productivity. While this condition largely holds in the private
sector, it hardly does in its public counterpart. In Nigeria, labour unions generally ignore the productivity side of
the equation in favour of workers welfare and remuneration. Consequently, the Nigerian economy gets repeatedly
ruined, and more people get poorer.

In fairness to the labour unions, the process of economic ruination was actually started off through the
recklessness of the successive governments, which indulgently granted outrageous emoluments to
political officeholders, elected or selected. Such excessively big emoluments never had any
relationship to their respective productivities. Sometimes, government would voluntarily award some
wage increases to the public servants to preempt the reactions of workers and their leaders. At most
other times, labour unions would agitate for wage increases when they realize that top government
officials had had a raise. At any rate, such wage increases never had any productivity increase basis,
nor did they result in enhanced performance. Indeed, productivity has been observed to fall with some
wage increases!

Responsible and informed labour unionism ought to realize the danger of persistent arbitrary salary
and wages awards that are not related to productivity or the state of the economy. Patriotic labour
unions are expected to always seek to prevail on government to stop or reverse such awards rather
than merely agitate to have their own cut. Money is what money can buy. There is no sense fighting
for more money that eventually leads to commanding less goods and services.
It is even more annoying that the labour unions pretend to be helpless. They have often tied their own
hands, when it is convenient for them to do so, by claiming that labour laws preclude them from
engaging in matters not directly related to workers and workers’ welfare. According to them, for
instance, labour unions have no locu standi in matters pertaining to government’s corrupt and
excessive activities. Rather, they deceitfully claim that the only option open to them is to ask for a pay
rise and thereby reduce the funds available to government officials to steal or mismanage. How
wrong, deceitful and naïve! First, there is no way an irresponsible governmental action will not badly
rub off on workers and the general public. Second, there are instances when labour unions had
successfully ‘dabbled’ into non-labour matters, and saved the country from a deep mess. The ‘June 12’
mass action of 1993 that eventually led to the stepping aside of the then military president, Gen.
Ibrahim Babangida, is a case in point. Moreover, only recently, labour unions had threatened to take
action over the electoral reforms matter.

Reckless wages and salaries awards not based on actual or potential increase in productivity harm the
economy in certain ways, which include:

1. Declining Capital Development and Rising Infrastructural Decay:


The persistently rising personnel cost, arising from wage increases, pushes up the level of recurrent
expenditure, and consequently lowers the amount of resources available for capital development
projects and asset maintenance. This accounts for the escalating problem of infrastructural inadequacy
and decay that have beset Nigeria for a few decades now. Currently, some of the tiers of government
allocate up to 80% of their budgets to recurrent spendings.

2. Inflationary Financing:
With the unsustainably rising wages and salaries bills, and their deleterious effect on capital
development programmes, government often resorts to various inflationary ways to balance
the budgets. They involve merely printing more money not backed by any production of
goods and services. They include:

i) Ways and Means Advances: This is an overdraft facility granted to the federal government
by the central bank. It involves simply printing more money. We all know the implication of
‘too much money chasing too few goods and services’ – inflation.
ii) Currency Devaluation: The federal government has abused the use of currency
devaluation since 1986 when the Second-Tier Foreign Exchange Market was introduced
ostensibly to promote non-oil export and meet the IMF conditionalities for a loan. While it is
open to debate whether the devaluation has had the desired effect, what is clearer is that
government has found a convenient means in it to balance its budget. By the time the
foreign exchange earnings from oil and other non oil sources are converted, more funds in
local currency is available to the government. Unfortunately, because of the import
dependent nature of Nigeria, several local businesses, particularly manufacturing, die daily
owing to the resultant high costs. Government agencies are not left out. Infrastructural
decay abounds, as affects such critical services as electricity and water supplies. For them
to charge appropriately for their services through correct tariff structures is to send
consumers running away.

3. Debt Burden:
Government borrows both internally and externally to balance its accounts. While the
internal debt component of its debt stock usually ‘crowd out’ private sector borrowings, debt
service commitments generally retard economic progress, especially when such debts were
not profitably applied. Internal loans also have the effect of depressing local businesses
when the loans are not repaid on time, as it currently happens with local contractors.

4. Tax Abuse and Tax Evasion:


In an attempt to generate more revenue and be able to balance the budget, the various
levels of government have introduced many taxes/fees and increased the rates of some of
the existing ones. While tax multiplicity adds to business burden and compounds business
failure, it also encourages tax evasion, thereby stunting a veritable source of governmental
revenue in Nigeria.

5. Depletion of Strategic Accounts:.


The external reserves of Nigeria have been drawn down repeatedly to meet non-essential
local expenditures and balance the budget. The same thing applies to the Excess Crude
Account set up to save up the excess (above budgetary calculations) amounts earned from
oil exports in case of future uncertainties.

6. Mounting Unpaid Salaries and Pensions:


Often, government finds it difficult to meet up with the new wage bills. As such, a big
volume of arrears accumulates in salaries, wages and pensions. This often leads to new
strikes and agitations, and results in further bashing on the economy. For instance, the
existing N7,500/month minimum wage had created a lot of problems at the implementation
stage at all tiers of government. The same thing applies to the ‘monetization’ policy, though
noble, of the federal government. Some of its agencies have been engaging in strike actions
to get it implemented. Pensioners suffer most, as they get little or no raise at all, while their
existing little pensions get eroded by inflation. Most of them often wait long to get their
terminal entitlements paid, if at all before they die. Moreover, pensioners suffer because
they are no longer members of the labour unions, and their informal associations have no
teeth to bite.

7. Unfavourable Effects on the Private Sector and Employment:


The employee compensation system in the private sector is often based on profitability and
productivity. However, because of the pollutant effect of arbitrary salary awards in the
public sector, not a few small and medium scale enterprises have always had the relative
wage structure turned in their disfavour, making them incapable of hiring more, or retaining
existing, good hands. Indeed, the generation of employment further gets depressed in both
the private and the public sectors of the economy.

With the minimum wage now being contemplated for review to N18,000/month as a result
of the agitations by labour unions, the pollutant effect will definitely take place as usual.
Jobs and profitability will be badly affected.

By the way, some people have argued that, rather than labour unions asking for such a big
jump in the minimum wage, it could have settled for a reasonably lower increase but with
government putting some of the teeming unemployed youths to work. Government too
could have initiated this more patriotic option, and prevailed on labour unions to agree to it.
I quite agree with them.

At this juncture, certain clarifications need be made. The public sector workers are poorly
paid in Nigeria, when compared with what obtains generally in the private sector, and also
with the high cost of living facing them. The excessively import dependent nature of Nigeria
in the face of repeated devaluation of her currency has largely accounted for the high cost
of living. For these reasons, indeed, a N50,000/month minimum wage could not be said to
be too high. However, the problem lies with how government finances its high personnel
costs, and its destructive effect on the economy. With the revenue base and depth of
government not increasing, and the productivity of labour not improving, any arbitrary
salary increases will have to be financed from inadvisable sources, such as repeated
currency devaluation and others as enumerated earlier.
Labour unions need to change their attitudes and orientation. It is naïve to think that the
Nigerian politicians, most of whom are largely out to make undeserved money from their
positions, will allow their takes to get diminished. They would rather adopt destructive
measures to accede to the demands of labour unions. Such measures invariably make the
economy worse and workers poorer. Who wants big money that cannot buy big things
anyway? At present, labour unions look on when government makes and implements bad
policies and take irresponsible actions, and then react later to agitate for palliatives to
cushion the effects of such governmental recklessness. Such palliatives hardly last long nor
impact adequately. Prevention is always better than cure, and no disease is even cured by
treating only the symptoms. The high costs of living facing the workers are principally due
to governmental acts of omission and commission. Labour should vehemently and
adamantly say ‘no!’ to such acts henceforth, and the masses of the suffering masses will
support and join with them.

By way of illustration, the people are ready to support labour unions and other activism
organizations when they call their members out to protest against such governmental acts
as inflated contracts, poor contract execution, project abandonment, poor asset and
infrastructural management, funds mismanagement and embezzlement, outrageous pays
and allowances, enactment of oppressive and selfish laws, delay or non-passage of good
bills (such as the Freedom of Information Bill that has been stalled for over 2 years now),
etc. They, and similar others, are at the foundation of the Nigerian socio-political woes, and
they affect the welfare of labour and that of the general public. It is time Labour unions in
Nigeria and similar other countries woke up and save their countries from ruins.

16(b) Trace the growth and development of trade union movement in India:-
HISTORICAL DEVELOPMENT OF TRADE UNION IN INDIA

Trade Union formed in 1890, Bombay Mill Hands Association byMr.Lokhande to demand amendment of Factories Act
1918. Then severalother unions followed to fulfill specific demands andalso to lend supportto national movment.

In 1918:-Ahmedabad Textile Labour Association was borned when dispute
was settled by the intervention of Mahatma Gandhi.

In Madras B.P.Wadia formed Madras Labour Union

International Labour Organization (ILO) was established in 1919,This
influenced formation of All India Federation of Trade Unions.

After world war I, in 1919, large number of strong trade unions wereformed by Annie Besant in Madras and Mahatma
Gandhi in Ahmedabad.After 1924, all major All India Left-wing Trade Unions were formed forclass struggle.
TRADE UNION STRUCTURE
There are three types of unions:

A craft unions is formed by workers belonging to same occupation or
specialization irrespective of industry, e.g. Indian pilots, guild, electricians
etc

Industrial Union is formed on the basis of industry e.g. cotton textile
factories ( Rashtriya Mill Mazdoor Sangh)

General Union embraces all workers whatever kind ofindustry or craft
in a place e.g. Jamshedpur Labour Union

GROWTH OF TRADE UNION IN INDIA:-


The growth of trade unions in India started way back in 1850 when the economic conditions
of labor was poor, The industry was dominated by the Capitalism, and the industrialists
were more concerned about the productivity. Long working hours, Low wedges, poor living
conditions and exploitation by the management was common in the industry. Slowly in
many parts of the country the workforces united and Factories Act 1881 was incorporated
with a ban on Child labor, and conditions in working hours and improved working conditions.
In next phase many trade unions were incorporated in the country under the leadership of
Mahatma Gandhi in other parts of the country like West Bangal, Ahamdabad, Punjab and
others. All India trade union federation was formed. After independence this took the shape
of Indian Factory Act 1948 with regulation on working conditions, working hours, and other
facilities at workplace.

17 (A) discuss the problems of Indian trade union:-


Problems of Indian trade unions fall under these headings:

1. Uneven growth: Industry-wise and Area-wise: Trade unions haven't


grown in all types of industries. The only industries that have seen growth of
trade unions are in the area of plantations, coal mines, food, textiles,
printing press, chemicals, utility services, transport, communications and
commerce. Furthermore, trade union activities are limited to large scale
industry sector and manual labour, and trade unions are unevenly
distributed in different states. Trade unions don't exist for a variety of small-
scale businesses.

2. Small size of unions: The sizes of trade unions haven't been sufficient
enough to have adequate funds and provide legal help to members. The
sizes of trade unions in India have been increasing since 1930-31, but the
overall membership size has been decreasing recently. Various factors
contribute toward the small size of trade unions; the average size of a trade
union in India is about 800. Furthermore, the percentage of women
members is only 6-8%. This small size of trade unions weakens their
collective bargaining power, and makes legal help inaccessible.

3. Financial Weakness: Workers don't adequately contribute toward to


their trade union membership fees, except when necessary. Many workers
feel the services of their trade unions are not worth paying for. The lack of
necessary funds prevent trade unions from offering support for welfare
activities for labour, support strikes, and hire paid staff. One reason for
financial weakness in trade unions is due to the presence of rival trade
unions.
4. Multiplicity of Trade Unions and rivalries: Multiple trade unions are a
necessary evil. Powerful political parties have established their own trade
unions with the intention of spreading their political power. This causes an
inadequate and unhealthy growth of trade unions. Most trade unions have
developed inter-union rivalries and groups that are in constant competition
against each other. Members' energy has been wasted on deconstructive
activities, and unions have become more political.

5. Leadership issues: Some unions are managed by the educated class:


doctors, lawyers, politicians, etc., who have no experience or work history
with the corresponding union. This type of foreign leadership creates barriers
between lower-end workers and upper management, and is disadvantageous
to the proper development and management of the union. Leadership of a
union must only arise from within the labour class.

6. Political involvement in unions: Most unions today are run by rival


political parties. These political parties have nothing constructive to offer,
instead, use unions to spread their political agenda. Furthermore, decisions
related to unions are made by politicians. For example, the Indian National
Congress as formed the Swadeshi Movement, the Khilafat Movement, the
Civil Disobedience Movement, and the Noncorporation movement.

7. Problems with recognition of trade unions: The process that leads to


recognition of unions is a lengthy one. In the initial stages, union recognition
is very difficult, and even discourage. There is a long list of criteria that a
union must meet in order to become certified and recognized by the
industry.

17(b) what are the functions of trade union in India:-

Trade unions perform a number of functions in order to achieve the


objectives. These functions can be broadly classified into three
categories:

(i) Militant functions,

(ii) Fraternal
functions
MilitantFunctions

One set of activities performed by trade unions leads to the betterment


of the position of their members in relation to their employment. The
aim of such activities is to ensure adequate wages, secure better
conditions of work and employment, get better treatment from
employers, etc. When the unions fail to accomplish these aims by the
method of

collective bargaining and negotiations, they adopt an approach and put


up a fight with the management in the form of go-slow tactics, strike,
boycott, gherao, etc. Hence, these functions of the trade unions are
known as militant or fighting functions. Thus, the militant functions of
trade unions can be summed up as:

• To achieve higher wages and better working conditions

• To raise the status of workers as a part of industry

• To protect labors against victimization and injustice

Fraternal Functions

Another set of activities performed by trade unions aims at rendering


help to its members in times of need, and improving their efficiency.
Trade unions try to foster a spirit of cooperation and promote
friendly industrial relations and diffuse education and culture among their
members. They take up welfare measures for improving the morale of
workers and generate self confidence among them. They also arrange for
legal assistance to its members, if necessary. Besides, these, they
undertake many welfare measures for their members, e.g., school for the
education of children, library, reading-rooms, in-door and out-door
games, and other recreational facilities. Some trade unions even
undertake publication of some magazine or journal. These activities,
which may be called fraternal functions, depend on the availability of
funds, which the unions raise by subscription from members and
donations from outsiders, and also on their competent and enlightened
leadership. Thus, the fraternal functions of trade unions can be summed
up as:

• To take up welfare measures for improving the morale of workers

• To generate self confidence among workers

• To encourage sincerity and discipline among workers

• To provide opportunities for promotion and growth

• To protect women workers against discrimination

18(a)Describe the methods and strategies adopted


by trade union to achieved the aims:-

Strategies in trade union

The aim of this paper is to present theoretical thinking and empirical


data on 1)

the effects of the rise of atypical jobs on trade unions’ capacity of


representation and 2)

and the strategies of these unions toward workers with atypical jobs in
Europe. What
are atypical jobs? As Rogers has noted, “atypical work is more easily
defined by what

is not than by what it is; it covers a host of forms of work which deviate
from the

standard”

(1989:1), including temporary jobs, part-time jobs, self-employment,


work in

the black economy, etc.

The paper is divided into three parts. In the first part, I offer a critical
review of

the recent literature on the effects that atypical jobs have for the
capacity of

representation of European trade unions. Much of the literature


maintains that the rise

of this type of employment has been responsible for the crisis of the
European trade

unions, due to the difficulties that trade unions have faced in attracting
the support of

workers other than their traditional constituencies. However, I consider


that this

literature is excessively generalist and deterministic. In order to


understand the real

consequences of this type of employment for trade unions a number of


variables must
be studied in rather more depth than has generally been the case.
In the second part of paper, I focus on the strategies that trade unions
have

adopted towards atypical workers. More specifically, I propose a


theoretical framework

for analysing such strategies. In function of a number of different


variables, I suggest

that unions can adopt three possible strategies with respect to atypical
workers: a

totally inclusive strategy, a partial inclusive strategy, and an exclusive


strategy.

The final part of the paper brings together the two key issues discussed
in this

paper in a case study of the Spanish trade unions. I first analyse the
effects of the rise

of temporary job on union membership rates and the level of


participation in union

elections. Then, and following the theoretical framework I proposed in


the second part

of the paper, I consider the strategies these unions implement with


respect to
temporary workers.
Methods in trade union

Sec. II. The Methods Of Trade-Unions


1. The union's first aim is to get control of all the labor force in the market,
and to minimize competition among workers. Every labor federation aims to
extend its control to every branch of its trade. A sense of wrong is one of
the strongest forces to bring the workers into the organization. The appeal
to a common interest is effective in times of great grievance, as it was
effective in the dangerous times of the American Revolution, though failing
during the Confederation. The unwilling are first persuaded, then coerced
by threats, by petty persecutions, by the most cruel of all peaceful
weapons, social ostracism, and finally by personal violence. The "public
opinion" and class feeling fostered among workers by their organization are
analogous to the sense of patriotism and loyalty in the country at large, and
at times displace it, as is seen in the opposition to the militia land to the
maintenance of public order at times of strikes. The individual who declines
to enter the union is denounced as a traitor and made to feel the scorn of
his associates. When all these measures fail, pressure is brought to bear
upon the employer to. get him to force the unwilling workers into the union.

2. Its next aim is to use collective in the place of individual bargaining, to


force as much as the competitive wage, and more if possible. The term
collective bargaining has been much used to describe bargaining between
a group of labor leaders, the delegated representatives of the workingmen,
and a group of employers or directors. It is sometimes claimed that all
the trade-union seeks is to put the workman on an equality with the
employer in bargaining, enabling him to get all he would if competition were
free on both sides. It is said that organized labor simply prevents the
employer from following the maxim of Napoleon to "divide and conquer,"
from meeting his employees one by one and forcing his own terms upon
them. But the most effective argument in organizing the trade-union is that
it forces a higher wage, more than the market would warrant. It is
sometimes assumed by labor leaders that competitive wages would be
very low, almost starvation wages, and anything above that level is credited
to the work of the union; while in other cases where the wages are already
large, the purpose frankly avowed is to limit the labor supply in the
particular trade and to force a monopoly wage by any means possible.
One's opinion of trade-unions is likely to differ according as they work in
one or the other of these ways. The impartial onlooker sympathizes with
the efforts of the trade-unions in so far as they serve merely to put the
workers on an equality with the employers in bargaining. The public wants
to see "fair play," and up to a certain point the union is merely a device to
get fair play. But if the union is a device to defeat competition, to force
artificially high wages, it will be judged differently. The public readily sees
that if the unions force more than a fair and open market affords, it is rarely
at the expense of the employer; that in the long run it is at the expense of
the purchasing public itself, including the unprivileged workmen shut out
from the monopoly of labor.

18(b) Discuss the measure of union security:-


Your Privacy

Your privacy is important to Union Securities Ltd., ("Union"). We will respect


your privacy through the protection of your Personal Information.

Purpose and Content

Before collecting Personal Information from you, we will explain to you the
purpose of collecting it, and we will only collect, use and disclose your
Personal Information with your consent, except where otherwise permitted
or required by law.

Limiting Collection

Our collection of Personal Information is limited to what is reasonable under


the circumstances, and your information will be used only for the purposes
for which it is collected.

Security

Your Personal Information is kept confidential and secured and is not


disclosed to anyone outside our company without your consent, except
where otherwise permitted or required by law.

Access

You have the right to access to your own Personal Information and to correct
any inaccuracies.

Our 10 Privacy Principles


As part of our commitment, we have adopted the 10 Principles established
by the Canadian Standards Association's Model Code for the protection of
Personal Information. These principles form part of the Personal Information
and Electronic Documents Act, (the "Act"), which establishes rules governing
the collection, use, and disclosure of Personal Information.

Principle 1 - Accountability

Each Union employee is responsible for maintaining and protecting the


customer information under our control.

Principle 2 - Identifying Purposes

The purposes for which customer information is collected shall be identified


before or at the time the information is collected.

Principle 3 - Consent

The knowledge and consent of the customer are required for the collection,
use, or disclosure of customer information, except where otherwise
permitted or required by law.

Principle 4 - Limiting Collection

The customer information collected must be limited to those details


necessary for the purposes identified by Union. Information must be
collected by fair and lawful means.

Principle 5 - Limiting Use, Disclosure and Retention

Customer information may only be used or disclosed for the purpose for
which it was collected unless the customer has otherwise consented, except
where otherwise permitted or required by law. Customer information may
only be retained for the period of time required to fulfill the purpose for
which it was collected.

Principle 6 - Accuracy
Customer information must be maintained in as accurate, complete, and up-
to-date form as is necessary to fulfill the purposes for which it is to be used.

Principle 7 - Safeguarding Customer Information

Customer information must be protected by security safeguards that are


appropriate to the sensitivity level of the information.

Principle 8 - Openness

Union is required to make information available to customers concerning the


policies and practices that apply to the management of their information.

Principle 9 - Customer Access

Upon request, a customer shall be informed of the existence, use, and


disclosure of their information, and shall be given access to it. Customers
may verify the accuracy and completeness of their information, and may
request that it be amended if appropriate.

Principle 10 - Handling Customer Complaints and Suggestions

Customers may direct any questions or enquires with respect to the privacy
principles outlined above or about our practices by contacting the designated
person(s) accountable for privacy.

Personal Information We Collect

Personal information is information that refers to you specifically. With your


consent, we may gather personal information from you in person, at a
branch, over the telephone, or by corresponding with you via mail or the
internet.

The type of information we usually collect and maintain in your customer file
may include your:

• Name
• Mailing Address
• E-mail Address
• Telephone Number
• Social Insurance Number
• Date of Birth
• Place of Employment
• Annual Income
• Credit History
• Transaction History

For business customers, information may include the:

• Business Name
• Business Address
• Business Telephone Number
• Name(s) of Owner(s), Officer(s) and Director(s)
• Industry Type
• Financial Status

The choice to provide us with personal and financial information is always


yours. In financial dealings, however, your decision to withhold particular
details may limit or completely inhibit the services we are able to provide
and make it more difficult for us to advise you or suggest appropriate
alternatives.

If we are unable to accommodate your request based on the information


that has been provided, we may ask for additional details in order to identify
other ways to be of assistance. In some instances, Union may also maintain
a file containing contact history that is used for customer inquiry purposes.

When Information May be Disclosed to Outside Parties

At Union, we are obliged to keep your personal and financial information


confidential except under the following special circumstances:

• When authorized by you


• When required by law (i.e. complying with legal and/or regulatory
requirements)
• When permitted by law

When Authorized by You

Credit agencies and other financial institutions may contact us for credit and
financial information about clients. To comply with these requests, we
require our client's consent.

Client Agreement

A Client Agreement outlines the terms and conditions associated with


acquiring specific products or services. In general, it establishes the rights
and obligations of both parties as they relate to the provision of that product
or service.

With respect to the matter of privacy, the Client Agreement authorizes us:

• To collect credit and related financial information, (including


information related to transactions) from you, from credit agencies,
other financial institutions, and references provided by you.
• To use personal or business information to determine your financial
situation, to provide the services you have requested, and to offer
additional products and services that might benefit you.
• To use your Social Insurance Number for tax reporting and for credit
agencies matching purposes only.

When Required by Law

The type of information we are legally required to disclose most often relates
to government tax reporting requirements as well as regulatory reporting.

The choice to provide us with personal and financial In some instances such
as a legal proceeding or court order, we may also be required to disclose
certain information to authorities. Only the information specifically requested
is disclosed and we take precautions to satisfy ourselves that the authorities
who are making the request have legitimate grounds to do so.

The following are reasons Union may collect, use or disclose information:

• If we are unable to accommodate your request based on the


information that has been provided, we may ask for additional details in
order to identify other ways to be of assistance. In some instances,
Union may also maintain a file containing If we use an outside company
to process or store information. At times, Union uses the services of an
outside company to do work for us involving some of your information.
For example, processing your account information or the mailing of
shareholder information.
• Must disclose information for legal or contractual reasons. Union may
be compelled to release your information by a court of law, or by
another legal authority, regulatory authority, (including self regulatory
authority), or governmental body. In all cases, our policy is to release
information only to the extent that we are required to do so.
• For regulatory purposes. Canadian self regulatory organizations,
(collectively, "SROs") require access to personal information of current
and former clients, employees, agents, directors, officers, partners, and
others that has been collected or used by persons or firms under their
jurisdiction, ("Regulated Persons"). SROs collect, use or disclose such
personal information obtained from such Regulated Persons for
regulatory purposes, including:

a. surveillance of trading-related activity


b. sales, financial compliance, trade desk review, and other
regulatory audits
c. investigation of potential regulatory and statutory violations;
d. regulatory databases;
e. enforcement or disciplinary proceedings;
f. reporting to securities regulators; and
g. information-sharing with securities regulatory authorities,
regulated marketplaces, other selfregulatory organizations and law
enforcement agencies in any jurisdiction in connection with any of the
foregoing.

When Permitted by Law

There are some situations where we are legally permitted to disclose


personal information such as returning a cheque due to insufficient funds,
employing reasonable and legal methods to collect a delinquent account, a
medical emergency, or suspicion of illegal activities.

In certain circumstances, Union may have to collect, use or release


information for its protection. For example, Union may do so when collecting
an overdue account, when defending a legal action, to detect or prevent
fraud, or to detect or prevent any other illegal or improper activity.

Safeguards
Personal information shall be protected by security safeguards appropriate to
the sensitivity of the information. Security safeguards shall protect personal
information against loss or theft, as well as unauthorized access, disclosure,
copying, use, or modification. The safeguards may include, for example, the
physical security of offices and storage facilities or electronic security
measures such as passwords, encryption and personal identification
numbers.

Accessing your Personal Information

You may access and verify the accuracy of your Personal Information. At the
time of your request, we will need specific information from you to verify
your identity before we can provide you with the Personal Information we
hold.

There may be instances when we will not be able to provide you with the
Personal Information that you request. Examples are if the Personal
Information:

• Contains references to other persons


• Has already been destroyed due to legal requirements of because we
no longer needed it for our purposes
• Cannot be disclosed for legal reasons

Changing Your Personal Information

We are committed to maintaining the accuracy of your Personal Information


for as long as it is being used for the purposed we have identified. To help us
keep your Personal Information up to date, we encourage you to notify us of
inaccuracies or corrections. Notification of changes such as your address or
telephone number will help us provide the best possible service.

If you identify any incorrect or outdated information requiring amending


please contact us. We may ask you to put your request for a correction in
writing. We will make the proper changes and provide you with a copy of the
corrected information upon your request.

19(a) Discuss the process of collective bargaining:-


Collective bargaining is the process of negotiation between unions and employers
regarding the terms and conditions of employment of employees, and about the
rights and responsibilities of trade unions. It is a process of rule making, leading to
joint regulation.

The central role of collective bargaining between workers and employers and their
organisations in industrial relations in the Member States is recognised by the EU in
Article 28 of the Charter of Fundamental Rights of the European Union of December
2000 (‘Right of Collective Bargaining and Action’) and in Article 12 of the
Community Charter of the Fundamental Social Rights of Workers of 1989.

‘The Right to Bargain Collectively’ was also declared a fundamental right in the
1961 European Social Charter of the Council of Europe (Article 6). The
interpretation by the European Court of Human Rights in Strasbourg of the right to
freedom of association in Article 11 of the European Convention for the Protection
of Human Rights and Fundamental Freedoms has extended some protection also to
collective bargaining (Wilson and the National Union of Journalists; Palmer, Wyeth
and the National Union of Rail, Maritime and Transport Workers; Doolan and others
v. United Kingdom, decided 2 July 2002).

Just as collective bargaining receives legal support in the Member States, this array
of European legal guarantees provides the background for the EU’s recognition of
the centrality of collective bargaining. The operation of collective bargaining in EU
industrial relations is multi-faceted, as evident in the various functions attributed
to collective agreements by EU Directives and the growing role ofEuropean
collective agreements. At EU level, collective bargaining takes place at inter-
confederal/inter-sectoral, multi-sectoral, industry/sectoral, enterprise and inter-
regional level.

Collective bargaining is a means of implementing EU directives in the field of


employment and industrial relations. Therefore, one specific process of collective
bargaining takes place when negotiations develop ‘in the shadow of the law.’ This is
exemplified by Council Directive 94/45/EC of 22 September 1994 on the
establishment of a European Works Council, or a procedure in Community-scale
undertakings and Community-scale groups of undertakings, for the purposes of
informing employees and consulting with them – the European Works
Councils (EWC) Directive. The directive is characterised by a strategy, which is
apparently assuming greater prominence in the EU system: the delegation to the
social partners, management and labour, of the competence to negotiate the
relevant European labour standards . The EWC is to be negotiated by the central
management of the multinational enterprise and the representatives of the
workforce; they must negotiate ‘in a spirit of cooperation with a view to reaching an
agreement on the detailed arrangements for implementing the information and
consultation of employees’ (Article 6). However, the Directive shapes the
negotiating process by explicitly providing that, if agreement is not reached,
minimum (subsidiary) requirements laid down in an Annex to the Directive will
apply (Article 7(1)). In practice, therefore, the structure of negotiations between
the parties is influenced by the subsidiary requirements. Also in the case of the
establishment of a European company or a European Cooperative Society ,
management has to negotiate at European level with a special negotiating
body composed of representatives from various Member States.

The increasing number of transnational


enterprise undergoing restructuring represents another driver for collective
bargaining at European level. There are already cases in which European industry
federations and/or European Works Councils have signed framework
agreements concerning the social regulation of restructuring processes. Other
framework agreements that were negotiated at European level deal with labour
policies and labour standards.

As part of its Social Agenda for the period 2005-2010, the European
Commission initiated a discussion on setting up an optional legal framework for
transnational collective bargaining. With the growth of transnational enterprises,
the continuing pressure of takeovers and mergers and the extension and
development of European Works Councils, transnational collective bargaining is
expected to become more common. Therefore, the European Commission believes
that a legal framework might become necessary to regulate such issues as defining
the actors entitled to negotiate, the form and content of agreements, the legal
effect of agreements, links to national and sectoral agreements as well as the right
to collective action. Such an approach is anchored in the ‘partnership for change’
priority advocated by the Lisbon Strategy .

See also: coordination of collective bargaining; derogation; European social


dialogue; horizontal subsidiarity; multi-sector agreement ; pacts for employment
and competitiveness ; right of collective bargaining; social dialogue.

19(b) Discuss the characters of collective


bargaining:-
 It is a group process, wherein one group, representing the employers,
and the other, representing the employees, sit together to negotiate
terms of employment.
 Negotiations form an important aspect of the process
of collective bargaining i.e., there is considerable scope for
discussion, compromise or mutual give and take
incollective bargaining.

 Collective bargaining is a formalized process by which employers


and independent trade unions negotiate terms and conditions of
employment and the ways in which certain employment-related issues
are to be regulated at national, organizational and workplace levels.
• Collective bargaining is a process in the sense that 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. Moreover, it is flexible process and
not fixed or static. Mutual trust and understanding serve as the by
products of harmonious relations between the two parties.

• It a bipartite process. This means there are always two parties


involved in the process of collective bargaining. The negotiations
generally take place between the employees and the management.
It is a form of participation.

• Collective bargaining is a complementary process i.e. each party


needs something that the other party has; labor can increase
productivity and management can pay better for their efforts.

• Collective bargaining tends to improve the relations between


workers and the union on the one hand and the employer on the
other.

• Collective Bargaining is continuous process. It enables industrial


democracy to be effective. It uses cooperation and consensus for
settling disputes rather than conflict and confrontation.

• Collective bargaining takes into account day to day changes,


policies, potentialities, capacities and interests.

• It is a political activity frequently undertaken by professional


negotiators.
20(a) social responsibility of trade union:-
(1) The executives must accept the registered trade unions and must
respect them.
(2) The various problems of the employees presented by the trade union
must be solved peacefully.
(3) If some employees are to be dismissed due to the technical charges or
any other reasons, then it must be discussed with the trade unions.
(4) It must be seen that the laws are implemented for employees.
(5) The trade unions must be consulted while deciding about salaries,
recruitment, transfer or demoting the employee.
In present times the idea of social responsibility is becoming more
comprehensive. All the companies must perform their social responsibility
towards various parties honestly by considering the limitations of their
resources. It is obvious that they can increase or decrease according to
the changing value of the society. But it does not mean that by
presenting the reasons showing limitations they can escape from it. The
executives of the successful companies have performed their social
responsibility through the activities like eye donation camps, labour
camps, water boring pumps, schools etc., which is a very available step.
4. Guiding principles of the social responsibility of business : The idea of
social responsibility of the business is planned by the executives
according to their own viewpoint and implements them. For this there is
no international provision. If there is a personal selfishness of the
executives behind the idea of social responsibility, then it will prove
dangerous for the society. Therefore it is necessary to consider the
following mentioned suggestions :
(1) No profit on the cost of other parties : The business is an economical
activity done with the aim of profit. But if this profit is earned on the
cost of any one group of the society, then it is not proper. If the profit is
earned by the exploitation of customers or employees, then those parties
will not allow the business to run for a longer period. Therefore while
performing the social responsibility the executives must take care to
maintain the interests of all the parties.
(2) Earning reasonable profit in long run: The idea of earning maximum
profit in the short run can be dangerous for the society. Therefore the
aim of earning reasonable profit in long run must be kept. It is also not
proper to keep the aim of maximum profit in the long run.
(3) Considering the social expenses : While calculating the profit, besides
the direct and indirect expenses, the expenses such as training to the
employees, pollution effects, government expenses for social welfare,
water supply expenses etc. must also be considered.
(4) To establish target oriented standards : To perform the social
responsibility in a particular way, the target oriented standards must be
established for various social activities. The executives must consider the
necessities of the society to take the target oriented decisions.
(5) Competent management: Through the efficient management, the
executives can control the cost by keeping the control on wastage of
materials and other expenses and through it in the competitive position
also the social responsibility of the business can be performed by
maintaining the profit.
(6) Business combinations : When the competition among the companies
is going on in a wrong manner, then by combination or merger with
competitors the interests of the various parties of the society can be
maintained.
(7) Changes in the legal provisions : When due to sectional provision if
any activity becomes harden from the view point of business, then
application must be done to the government to make some changes in it.
e.g. Prohibition on the supply of food grains from one state to another
state restricts the executives to perform their social responsibilities. The
continuity of social responsibility can be maintained by doing the changes
in legal provisions by presenting before proper responsible personnel’s.
5. Conclusion : The idea of social responsibility have a special importance
from the view point of strategic management. The interests of all the
parties connected with the business comes in to conflict and so it is very
difficult work for the executives to keep equilibrium among the interests
of all the parties. Through the strategic management process the
executives can perform their social responsibility by satisfying various
parties.

20(b) discusses the various form of workers


participation in management:-
v Definition:
Participation refers to
v the mental and emotional involvement of a person in a group situation
v Which encourage him to contribute to group goals and share
responsibility of achieving them.
(- Keith Davis)
Three important ideas in this definition-
• Involvement: mental and emotional involvement rather than physical.
Participation is ego-involved rather than task-involved
• Contribution: It motivates people to contribute.
• Responsibility: Participation encourage people to accept
responsibility in
their activities participate in-group activities.
v Degree of participation:
a. Communication: It involves sharing information about all management
decision with workers.
b. Consultation: Under it workers express their their views on work related
issues. Final decisions are taken by management after consultation.
c. Codetermination: Here managers and workers jointly take decisions.
d. Self-management: Here workers enjoy complete autonomy right from
decision making to execution.
• Objectives of workers participation in Management:
1. Economic objectives: WPM aims at increasing productivity of labor by
improving labor between employer and labor.
2. Social Objective: Industry is considered as a social institution. The
purpose of participation is to ensure human dignity and to get the
workers
a respectable status in society.
3. Psychological objectives: WPM seeks to bring about a change in the
attitude of workers. Through participation the will consider themselves an
integral part of the industry rather than mere working hand.
v Method of workers participation in management:
1. Participation at the Board level: Management of public sector: : For
ex: Board of
Hindustan Antibiotics. Hindustan Organic Chemicals, In private sector
:Tatas,
DCM etc.
2. Participation through Ownership: for Ex: Sixty percent of the shares
of Otto
India, Calcutta, Forty percent share of Sehgal sanitary fittings arc
held by its employees.
3. Works Committees: Works committees deal with the matters of day-
to-day
functioning at the shop floor level. They are concerned with
1. Suggestion Schemes: Under this program suggestion boxes are
installed in all
department. For Ex: MICO, Bangalore has the scheme in operation
for the last
three decades.
2. TOM: Total Quality management refers to the commitment of an
organization to
quality. TQM is classified as a participative method because every
employee in
the organization is involved and is expected to take responsibility for
improving
quality.
6. Financial Participation: It is argued that the employee is more likely to
be
positively motivated and involved if he or she has a financial stake in the
company by having a share of profit.
7. Joint council and committees: Consist of equal representatives of mgt.
and
workers.
Functions:
• Consulted by management before introducing changes in the mode
of
production, production schedule, and general administration problem,
etc.
• The council is to receive information, discuss and give suggestions
on
general economic situation, state of the market production and
marketing
program.
• The council is to take up accident prevention, management of
canteens,
water, meal, safety etc.

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