DR. M.W. SHAIKH'S CONDUCT OF ROLEPLAY : ON COLLECTIVE BARGAINING PERFORMED BY IES-MCRC 2nd YEAR H.R. STUDENTS

COLLECTIVE BARGAINING:

Collective bargaining is a process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms etc.

ABC PVT. LTD.

       The company in which the collective bargaining process is being carried out is ABC PVT. LTD. which manufactures automobiles. The company is based in Mumbai. It has earned reasonable profits this year. However the profits earned this year are less than the profits earned in the previous year where a 10% hike in wages was granted by the Management to all the workers. This year the Union wants a 50% hike in their wages.

PARTIES INVOLVED AND CHARACTERS PLAYED
MANAGEMENT		UNION
Kaiwan Avari	Managing Director	Shahzad Bhiwandiwala	Union Representative
Tushar  Gupta	Marketing Manager	Mamta Khurana	Treasurer-Union
Neha Khan	Production Manager	Vidhi Timbe	Union Representative
Yohaan Bhagwagar	HR Manager	Sunayna Langeh	General Secretary -Union
Priyanka Patil	Finance Manager	Kainaz Patel	Labour Commissioner
		Advita Sejekan	Union Member

 SCENE 1

       The Labour Union sends a notice to the management which contains a charter of demands to be fulfilled by the management such as a hike/increment in the wages of the workers by 50% of the CTC.

MANAGEMENT TEAM MEETING:

       The Management Team comprising of the HR Manager, the Marketing Manager, the Finance Manager and the Production Manager have a discussion with the M.D. regarding how much increment/hike in salary should be granted to the workers based on the facts and figures given by the various department managers  as regards the balance sheet performance of the company, finances, profits made, cost of raw materials, product performance, H.R. budget and technology expenditure. All the departmental managers agree to the decision of the M.D. of granting a 15% hike in the wages of the workers.

1^st MEETING BETWEEN THE MANAGEMENT AND THE UNION

       The M.D. calls the General Secretary of the Union  and fixes a meeting to discuss the charter of demands.The management representatives in the form of the departmental managers tell the union representatives that they can offer a maximum of 15% hike in their wages based on the profits earned by the company. The Union representatives are adamant as they are not willing to accept anything less than a 50% hike in wages. Thus no agreement is reached between the management and the Union and the meeting is adjourned.

1^st UNFAIR LABOUR PRACTICE BY THE MANAGEMENT

       The HR manager calls the Treasurer of the Union and warns her that it the Union does not agree to the 15% hike in the wages, she will get transferred to another city.

        The Union treasurer is irked by the call and discusses the matter with the Union.

SCENE 2

       The M.D. in consultation with his respective departmental managers agrees to increase the hike in wages from 15% to 25% of the CTC. The 2^nd meeting is fixed.

2^nd  MEETING BETWEEN THE MANAGEMENT AND THE UNION

     The management representatives in the form of the departmental managers tell the union representatives that they can offer a maximum of 25% hike in their wages after considering the percentage of profit and the cost incurred by the company on the new technology. The Union representatives are still adamant as they are not willing to accept anything less than a 40% hike in wages. Thus, once again no agreement is reached between the parties and the meeting is adjourned.

ILLEGAL THREATENING BY THE UNION

     The Union sends one of their Union members who comes and threatens to kill the HR Manager and the Finance manager if they do not agree to the demand of the Union of granting a 40% hike in the wages. The Union member also physically assaults the Marketing manager while he is returning back home and gives him a “warning”.

UNION MEMBER WHO ILLEGALLY THREATENED THE MANAGEMENT

SCENE 3

      The M.D. in consultation with his respective departmental managers agrees to increase the hike in wages from 25% to 30% of the CTC. The M.D. invites the General Secretary-Union for some snacks as a means for discussing the 30% hike in wages. The Union can sense the real motive behind the invitation. The 3^rd meeting between the management and the Union is fixed.

3^rd  MEETING BETWEEN THE MANAGEMENT AND THE UNION

     The management representatives agree with the M.D. to offer a 30% hike in the wages. The Union representatives are still very adamant as they are not willing to accept anything less than a 40% hike in wages as they feel they deserve that much at any cost as the company is earning reasonable profits. They are not willing to change their stand. Thus, once again no agreement is reached between both the parties and they agree to report the  matter/issue is reported to the Labour Commissioner.

2^nd UNFAIR LABOUR PRACTICE BY THE MANAGEMENT

      The production manager offers a bribe of Rs. 5,00,000 to the Union representative to persuade her to agree to the 30% hike in wages and end the matter so that it does not go to the notice of the Labour Commissioner. However the Union representative does not accept the bribe(offer). The Union representative is angry naturally and reports the matter to the General Secretary-Union.

HEARING BY THE LABOUR COMMISIONER AND THE OUTCOME

      The matter is reported to the Labour Commissioner. This is known as 3^rd party conciliation where the Labour Commissioner assists both the parties in the collective bargaining process by giving a final verdict. The Labour Commissioner listens to the management’s side of the case in which the management accuses the union of indulging in illegal threatening. Also the Labour Commissioner listens to the Union representatives’ story and finally the Labour Commissioner announces the final decision of granting 30% hike in the wages to which both the parties agree. Thus the matter is resolved as both the parties reach a consensus (that is, a general agreement) and celebrate the same by having a party at Taj Lands Ends, Bandra. Thus the collective bargaining has taken place between the Union and the Management.