Management, Organizational Policies &
Practices
Lecture 19
Dr. Amna Yousaf
PhD (HRM)
University of Twente,
the Netherlands
Recap Lecture 18
 What is Equal Employment Opportunity?
 What is sexual Harassment?
 Defenses against discrimination allegations
 Adverse Impact
 Bona fide occupational qualifications
 Business Necessity
 Discriminatory Employment Practices
– Recruitment
– Selection standards
 Diversity Management
©
Recap Lecture 18
 Workforce Diversity in Practice
 Diversity’s Benefits
 Equal Employment Opportunity versus
Affirmative Action
 Steps in Affirmative Action Program
 Improving Productivity through Diversity
Management
 Recruiting Minorities Online
 Reverse Discrimination
© 2005 Prentice Hall Inc. All rights reserved.
15–3
Labor Relations and Collective Bargaining
Lecture 19
Learning Outcomes
1.
2.
3.
4.
Why workers form unions?
5.
6.
Conditions for good faith bargaining
The collective bargaining process
Violations of good faith bargaining
Illustrate with examples bargaining that is
not in good faith.
Parties in negotiations
© 2005 Prentice Hall Inc. All rights reserved.
14–5
Learning Outcomes
7. Bargaining items
8. Bargaining stages and process
9. Impasses, strikes
10.Mediations and Arbitration
11.Grievances
12.Develop a grievance procedure.
13.Labor Laws in Pakistan
© 2005 Prentice Hall Inc. All rights reserved.
14–6
Why Do Workers Organize?
 Solidarity
– To get their fair share of the pie.
• Improved wages, hours, working conditions, and benefits
– To protect themselves from management whims.
 Conditions favoring employee organization
– Low morale
– Fear of job loss
– Arbitrary management actions
© 2005 Prentice Hall Inc. All rights reserved.
14–7
The Collective Bargaining Process
 What Is collective bargaining?
– Both management and labor are required by law
to negotiate wage, hours, and terms and
conditions of employment “in good faith.”
 What Is good faith bargaining?
– Both parties communicate and negotiate.
– They match proposals with counterproposals in a
reasonable effort to arrive at an agreement.
– It does not mean that one party compels another
to agree to a proposal or make any specific
concessions.
© 2005 Prentice Hall Inc. All rights reserved.
15–8
Violations of Good Faith Bargaining
 Surface bargaining
– Going through motions of bargaining without any real
intention of completing a formal agreement.
 Inadequate concessions
– Unwillingness to compromise , even though no one is
required to make a concession
 Inadequate proposals and demands
– Advancement of proposals to be a positive factor in
determining overall good faith
 Dilatory tactics
– Meeting at reasonable time intervals
 Imposing conditions
– That are unreasonable
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15–9
Violations of Good Faith Bargaining
 Making unilateral changes in conditions
– Strong indication that the employer not bargaining
with good intent
 Bypassing the representative
– Employer must recognize that he must deal with
employee representative
 Committing unfair labor practices during
negotiations.
– Such practices may impact poorly upon employer
intentions
© 2005 Prentice Hall Inc. All rights reserved.
15–10
Violations of Good Faith Bargaining
 Withholding information
– Must supply with necessary information upon
request to union
 Ignoring bargaining items
– Refusal to bargain on mandatory items
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15–11
7/29/2017
Conditions for Successful
Bargaining
1. Freedom of association
– Workers and employers are free to form their own
associations to represent their interests.
2. Stability of union
– Unions have to be stable for collective bargaining to
be effective  union is able to honor the
agreement.
3. Recognition of union by employer
– Collective bargaining begins after employer
recognizes the union that claims to represent the
specific group of workers.
NPO Management Course/Compliance
12
Conditions for Successful
Bargaining
4. Good faith
– Both parties must be willing to resolve
differences to reach an agreement.
5. Mutual respect
– Relationship affected and process becomes tense
and difficult if any party used unfair practices
such as victimization.
6. Supportive legal system
– Employment laws to ensure process takes place
in an orderly manner.
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NPO Management Course/Compliance
13
Preparing for Negotiations
 Sources of negotiating information
– Local and industry pay and benefits comparisons
– Distribution demographics of the workforce
– Benefit costs, overall earnings levels, and the
amount and cost of overtime
– Cost of the current labor contract and the
increased cost—total, per employee, and per
hour—of the union’s demands.
– Grievances and feedback from supervisors
– Counteroffers and arguments.
© 2005 Prentice Hall Inc. All rights reserved.
15–14
Preparing for Negotiations (cont’d)
 Sources of negotiating information (cont’d)
– Attitude surveys to test employee reactions to
sections of the contract that management may
feel require change
– informal conferences with local union leaders to
discuss the operational effectiveness of the
contract and to send up trial balloons on
management ideas for change.
© 2005 Prentice Hall Inc. All rights reserved.
15–15
Classes of Bargaining Items
 Voluntary (permissible) bargaining items
– Items in collective bargaining over which bargaining is
neither illegal nor mandatory—neither party can be
compelled against its wishes to negotiate over those items.
 Illegal bargaining items
– Items in collective bargaining that are forbidden by law; for
example, a clause agreeing to hire “union members
exclusively” would be illegal in a right-to-work state.
 Mandatory bargaining items
– Items in collective bargaining that a party must bargain over
if they are introduced by the other party—for example, pay.
© 2005 Prentice Hall Inc. All rights reserved.
15–16
Bargaining Items
Mandatory
Permissible
Illegal
Rates of pay
Indemnity bonds
Closed shop
Wages
Management rights as to
union affairs
Separation of employees
based on race
Pension benefits of
retired employees
Discriminatory treatment
Hours of employment
Overtime pay
Shift differentials
Holidays
Scope of the bargaining unit
Vacations
Including supervisors
in the contract
Severance pay
Insurance benefits
Additional parties to the
contract such as the
international union
Profit-sharing plans
Use of union label
Christmas bonuses
Settlement of unfair labor changes
Company housing, meals,
and discounts
Prices in cafeteria
Pensions
Employee security
Job performance
Union security
Management–union
relationship
Drug testing of employees
© 2005 Prentice Hall Inc. All rights reserved.
Continuance of past contract
Membership of bargaining team
Employment of strike breakers
Source: Michael B. Carnell and Christina Heavrin,
Labor Relations and Collective Bargaining (Upper
Saddle River, NJ: Prentice Hall, 2001), p. 177.
Table 15–1
15–17
Bargaining Stages
 Presentation of initial demands
– Both parties are usually quite far apart on some issues.
 Reduction of demands
– Each side trades off some of its demands to gain others.
 Subcommittee studies
– The parties form joint subcommittees to try to work out
reasonable alternatives.
 An informal settlement
– Each group goes back to its sponsor. Union seeks to have
members vote to ratify the agreement.
 Signing the formal agreement
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15–18
Bargaining Hints
 Be sure to set clear objectives for every bargaining item, and be
sure you understand the reason for each.
 Do not hurry.
 When in doubt, caucus with your associates.
 Be well prepared with firm data supporting your position.
 Always strive to keep some flexibility in your position.
 Don’t concern yourself just with what the other party says and
does; find out why.
 Respect the importance of face saving for the other party.
 Be alert to the real intentions of the other party—not only for
goals, but also for priorities.
 Be a good listener.
© 2005 Prentice Hall Inc. All rights reserved.
15–19
Bargaining Hints (cont’d)
 Build a reputation for being fair but firm.
 Learn to control your emotions and use them as a tool.
 As you make each bargaining move, be sure you know its
relationship to all other moves.
 Measure each move against your objectives.
 Pay close attention to the wording of every clause negotiated;
they are often a source of grievances.
 Remember that collective bargaining is a compromise process.
There is no such thing as having all the pie.
 Try to understand people and their personalities.
 Consider the impact of present negotiations on those in future
years.
© 2005 Prentice Hall Inc. All rights reserved.
15–20
Labor Laws in Pakistan
 The National Labor Policy 2010 (preceding five policies of
1955, 1959, 1969, 1972 and 2002) provides a legal
framework to organizations and constitutes a compilation
of rules and regulation on various facets of labor relations
and laws in Pakistan. The previous policies were mostly
complex, irregular, and difficult to interpret. However, the
NLP 2010 outlines and safeguards 11 key characteristics
of labor which includes:
– Workers’ right to form unions and provide protection to
the union
– Equitable adjustment of rights between workers and
employers
– Consultations between workers and employers on
matters of interest to the establishment and welfare of
workers
© 2005 Prentice Hall Inc. All rights reserved.
15–21
Labor Laws in Pakistan
– Adequate security of jobs should be available
to the workers and their grievances be
addressed
– Conditions should be created that workers and
employers engage in labor productivity
– Promotion to higher jobs (through fair means)
– Facilities for proper matching of job opportunities
– Social insurance schemes
– Just and humane conditions of work be
guaranteed
– Elimination of forced labor
– Provisions relating to the employment of women
and children
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15–22
Constitution of Pakistan
– Every citizen shall have the right to form
associations or unions, subject to any
reasonable restrictions imposed by law in the
interest of [13] sovereignty or integrity of Pakistan,
public order or morality.
– No employee can join more than one unions at a time
– No union member can force others to join unions
– Employer can not coerce the employees not to
become members of unions
7/29/2017
NPO
Managem
ent
Course/C
omplianc
e 23
Constitution of Pakistan
– Union can not force employer to enter in
discriminatory labor practices or hire or fire
employees for union activity
– Union can not engage in illegal strikes during
office hours
– Employers can not force unions not to do legal
strikes
– Union can be formed where organization consists
of at least 50 workers 80% of which should be
union members
© 2005 Prentice Hall Inc. All rights reserved.
15–24
Impasses, Mediation, and Strikes
 An impasse
– Usually occurs because one party is demanding
more than the other will offer.
– Sometimes an impasse can be resolved through a
third party—a disinterested person such as a
mediator or arbitrator.
– If the impasse is not resolved in this way, the
union may call a work stoppage, or strike, to put
pressure on management.
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15–25
Third-Party Involvement
 Mediation
– A neutral third party (mediator) tries to assist the
principals in reaching agreement by holding
meetings with each party to find common ground
for further bargaining.
– The mediator is a go-between and has no
authority to dictate terms or make concessions.
– The mediator communicates assessments of the
likelihood of a strike, the possible settlement
packages available, and the like.
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15–26
Third-Party Involvement (cont’d)
 Arbitration
– An arbitrator often has the power to determine
and dictate the settlement terms.
– Arbitration can guarantee a solution to an
impasse.
© 2005 Prentice Hall Inc. All rights reserved.
15–27
Strikes
 Economic strike
– Results from a failure to agree on the terms of a
contract.
 Unfair labor practice strikes
– Called to protest illegal conduct by the employer.
 Wildcat strike
– An unauthorized strike occurring during the term
of a contract.
 Sympathy strike
– Occurs when one union strikes in support of the
strike of another union.
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15–28
Picketing
 Having employees carry signs announcing
their concerns near the employer’s place of
business
– Employers can shut down the operations till strike
is over
– Contract out work to blunt the effects of strike
– Continue operations with non striking employees
or supervisors
– Hiring replacements for strikers
• Permanent replacement workers cant be hired in case of
strikes on account of unfair labor practices
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15–29
Guidelines under strikes
 Pay striking employees all dues day one
 Secure facility-hiring guards to protect
replacements
 Notify customers; prepare standard response
to all queries
 Contact suppliers who have to cross picket
line. Devise alternate methods of obtaining
supplies
 Arrangements for overnight stay and meals
 Arrangements for replacement workers
© 2005 Prentice Hall Inc. All rights reserved.
15–30
Guidelines under strikes
 Install cameras and photograph facilities
before and after .
 Look for picket line misconduct
 Note number of pickets, time date and
location of picketing, wording on signs carried
by pickets, description of picket cars and
numbers
© 2005 Prentice Hall Inc. All rights reserved.
15–31
Main Sections of a Contract Agreement











Management rights
Union security and automatic payroll dues deduction
Grievance procedures
Arbitration of grievances
Disciplinary procedures
Compensation rates
Hours of work and overtime
Benefits: vacations, holidays, insurance, pensions
Health and safety provisions
Employee security seniority provisions, and
Contract expiration date.
© 2005 Prentice Hall Inc. All rights reserved.
15–32
Grievances
 Grievance
– Any factor involving wages, hours, or conditions of
employment that is used as a complaint against
the employer.
 Sources of grievances
–
–
–
–
Absenteeism
Insubordination
Overtime
Plant rules
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15–33
Grievance Procedure
 Grievant and shop steward meet with
supervisor. If not resolved,
 Employee files formal grievance
 Grievant and shop steward meet with
supervisor’s boss. If not resolved,
 Meeting with higher-level managers.
 If not resolved, matter goes to arbitration.
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15–34
Handling Grievances: Do
 Investigate and handle each case as though it may eventually result in
arbitration.
 Talk with the employee about his or her grievance; give the person a
full hearing.
 Require the union to identify specific contractual provisions allegedly
violated.
 Comply with the contractual time limits for handling the grievance.
 Visit the work area of the grievance.
 Determine whether there were any witnesses.
 Examine the grievant’s personnel record.
 Fully examine prior grievance records.
 Treat the union representative as your equal.
 Hold your grievance discussions privately.
 Fully inform your own supervisor of grievance matters.
© 2005 Prentice Hall Inc. All rights reserved.
15–35
Handling Grievances: Don’t
 Discuss the case with the union steward alone—the grievant should be
there.
 Make arrangements with individual employees that are inconsistent
with the labor agreement.
 Hold back the remedy if the company is wrong.
 Admit to the binding effect of a past practice.
 Relinquish to the union your rights as a manager.
 Settle grievances based on what is “fair.” Instead, stick to the labor
agreement.
 Bargain over items not covered by the contract.
 Treat as subject to arbitration claims demanding the discipline or
discharge of managers.
 Give long written grievance answers.
 Trade a grievance settlement for a grievance withdrawal.
 Deny grievances because “your hands have been tied by
management.”
 Agree to informal amendments in the contract.
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15–36
Thank You
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