CHP 2 IR CBA Edited
CHP 2 IR CBA Edited
CHP 2 IR CBA Edited
Chapter Two
Approaches to Industrial Relations
& Context of Bangladesh
Collective
Bargaining
History of Collective Bargaining
• The term "collective bargaining" was first used in 1891 by Beatrice Webb, a founder of
the field of industrial relations in Britain.
• Refers to the collective negotiations and agreements
• In the United States, the National Labor Relations Act of 1935 made it illegal for any
employer to deny union rights to an employee.
• The issue of unionizing government employees in a Public-sector trade union was much
more controversial until the 1950s.
• In 1962 President John F Kennedy issued an executive order granting Federal
employees the right to unionize.
Collective Bargaining
Collective bargaining is a process of negotiations between employers and the
representatives of a unit of employees aimed at reaching agreements that regulate
working conditions.
Collective agreements usually deals with - wage scales, working hours, training,
health and safety, overtime, grievance mechanism, rights to participate in
workplace or company affairs.
Collective Bargaining 3 distinct functions
Prof. Neil Chamberlain, a noted Labor Economist, has made 3 distinct functions of
collective bargaining.
Collective bargaining may be looked upon from three angles:
• A market or economic function - outlines the basic terms and conditions under which
a worker will be employed in an organization.
• A governmental function –Implementation of legislations
• A decision-making function – Workers are allowed to participate in the determination
of policies which affect the terms and conditions of their employment.
Types of Collective Bargaining
Negotiation
Propose
Discuss
Prepare
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Process of CBA
Process of CBA
1. Prepare:
• Composition of a negotiation team.
• The negotiation team should consist of representatives of both the parties with adequate
knowledge and skills for negotiation.
• examine their situation in order to develop the issues
• Discuss:
• The parties decide the ground rules that will guide the negotiations.
• An environment of mutual trust and understanding is also created so that the collective
bargaining agreement would be reached.
Process of CBA
Process of CBA
3. Propose: This phase involves the initial opening statements and the possible options
that exist to resolve them. In a word, this phase could be described as
‘brainstorming’. The exchange of messages takes place and opinion of both the
parties is sought.
4. Negotiation:
• Negotiations are easy if a problem solving attitude is adopted.
• Final drafting of agreements take place.
ADR – Alternative dispute resolution
• If there is a dispute it's not necessary we always take to trade Union or collective
bargaining, there are steps before that which we can use to solve the problem bracket
(open phone gallery check NO NEED FOODL) Step 1- Open door policy – IUB VC
,DEAN example .... We directly meet and resolve
Step 2- PR review- Before incorporating any policy we take review/feedback from various
personnel so that idea is more accurate and efficient
Step 3- Mediation- like an agent, 3rd party, middle ground , his verdict should be
accepted by both party Both party should chose a trusted mediator trusted by 2 sides, he
will analyze problem and give solution. It's not necessary we have to listen to the
mediator ,It can be our friend A mutual one.
Step 4- Arbitrator- There are legally recruited Mainly government agency or master
Union (BGMEA)unlike Mediator when arbitrator gives some decision we usually accept
that decision because it is mostly unbiased
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Roles of Collective Bargaining Agents
Main purpose is to establish a communication channel between 2 parties
To promote mutual trust, understanding and co operation between the employer and the workers;
To adopt measures for improvement of welfare services for the workers and their families;
To fulfill production target, reduce production cost, and wastes and raise quality of products.
Practices of CB in Bangladesh
Practices of CB in Bangladesh
Collective bargaining is generally carried out at three levels,
i) Plant level
ii) industry or corporation level
iii) National level.
In public sector, the issues which cannot be settled at the plant level
become the subject matter of bargaining at the corporation/ or national
level.
In private sector, collective bargaining is generally held at the plant level
between the representative of workers (CBA) and representatives of
employers.
PARTIES TO INDUSTRIAL
RELATIONS
Employees
Government Employers
Parties to
Industrial
relations
Employers
Associations
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Systems approach (Dunlop 1958)
• Difference between:
– Comparative (analyzing different countries)
– International (transnational institutions and phenomena)
• Importance of comparative approach
– Inform public policy debate
– Changing world economy
– Development of ‘fair’ international employment standards
• Problems of comparison
– Lack of common terminology and definitions
– Differences between stated institutional framework and reality of actual
practice
– Problems of transferability
Labor Market - how work is distributed within society
• Issues
– increase in women’s activity rates
– level + nature of unemployment, long vs. short-term jobs
– manufacturing or service + globalization vs. local
– market regulation strategies
• Economic labor market model
Pay = price mechanism (Supply/Demand, elasticity & equilibrium)
– One market (same £ for all) or differentiated by skill, job, location etc.
– assumes Pricing +
• Work - disutility. Wages compensate for less leisure
• Marginal productivity gain from using one extra unit of labor
• “institutionalized” labor market - wage floor, "going rate", range, collective
bargaining vs. individual negotiation.
A Safe Workplace
Can
Can the
the ILO’s
ILO’s Better
Better Factories
Factories Cambodia
Cambodia Program
Program
Benefit
Benefit Bangladesh’s
Bangladesh’s Dangerous
Dangerous Garment
Garment Factories?
Factories?
Bangladesh
• Safety: More than 2000 people have died in Bangladesh since 2006,
according to the Clean Clothes Campaign.(3 parts -1health
hazard,2-harassment &violence 3- Safety measures)
• Fair Wage- more than minimum wage to enjoy life a bit better ,can
ensure minimum living standard, after spending he can save some
money SAVINGS
Garment Industry Deaths since 1990-2010
• 21 killed at Garib and Garib Factory, Gazipur, 2010
• 62 killed at KTS Garments, Chittagong, 2006
• 23 killed at Shan Knitting, Narayanganj, 2005
• 74 killed at Spectrum Sweater, Dhaka, 2005
• 23 killed at Chowdhury Knitwear, Narsingdi, 2004
• 23 killed at Macro Sweater, Dhaka, 2000
• 12 killed at Globe Knitting, Dhaka, 2000
• 24 killed at Shanghai Apparels, Dhaka, 1997
• 20 killed at Jahanara Fashion, Narayanganj, 1997
• 22 killed at Lusaka Garments, Dhaka, 1996
• 32 killed at Saraka Garments, Dhaka, 1990
• Built on marshland
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Minimum wage
Minimum wage
Minimum wage by country : Asia
●
176 Indian rupees ($3) for RMB2,420 ($348.02)
● 17500 Pakistani
●
US$182 per month,
●
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