Trade unions and collective bargaining agents are differentiated by

the results of a majority vote by union workers. To become the

collective bargaining agent for a group of union workers, the trade
union must be elected by those workers to be their representative
in negotiating the terms of their pay, benefits and other working
conditions, such as health and safety provisions, and retirement or
pension contributions. That said, all collective bargaining agents
may be trade unions, but all trade unions may not be collective
bargaining agents.

trade union

An organization whose membership consists

of workers and union leaders, united to protect
and promote their common interests.
The principal purposes of a labor union 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. A
trade union may be: (a) A company
union that represents interests of only one company and may
not have any connection with other unions.
Also called house union, a company union is often a bogus one
and generally illegal. (b) A general union that represents
workers from several companies in the same industry. Also
called industrial union. (c) A craft union that
represents skilled workers in a particular field such as
carpentry or welding.

COLLECTIVE BARGAINING AGENT :-

Generally a bargaining power of the employees is very poor as

compared to employers. So they adopt the way of collective
bargaining to obtain the proper reward of their services. So for this
purpose trade unions are organized. Trade unions do the bargaining
with the employers on behalf of the worker. Trade unions perform
the duty of an agent in the matters of collective bargaining for the
workers.
COLLECTIVE BARGAINING
Collective bargaining is the negotiation process that takes
place between an employer and a group of employees when
certain issues arise. The employees rely on a union member to
represent them during the bargaining process, and the
negotiations often relate to regulating such issues as working
conditions, employee safety, training, wages, and layoffs.
When an agreement is reached, the resulting collective
bargaining agreement, or CBA, becomes the contract
governing employment issues. To explore this concept,
consider the following collective bargaining definition.
Noun
1. Negotiation of issues or conditions of employment by an
organized body of employees and the employer.
Origin

First used in 1891 Beatrice Webb, founder of industrial relations

in Britain

What is Collective Bargaining

The National Labor Relations Act, or NLRA, was established in
1935. The Act set the standards for U.S. labor laws, which
guarantee employees certain basic rights, such as the right to
organize into trade unions, and the ability to engage in
collective bargaining negotiations. The Act requires officials
elected to head a union to meet with the employer to negotiate
conditions. Specific rules in support of collective bargaining
include:
There is a limit of one representative for each unit of
employees
All representatives must promote the practice, and follow
all procedures, of collective bargaining
Employers must bargain with the employees
representatives
Employees and their representatives have the right to
discuss wage issues

Not all employers and employees are covered under the act.
For example, independent contractors and government
workers are excluded from the NLRA. However, the Act does
stipulate that these workers cannot be prevented from joining
labor unions if they wish to do so.

Unfair Labor Practices

Part of the National Labor Relations Acts responsibilities
includes ensuring employers do not engage in unfair labor
practices. Under the Act, employers are obligated to follow
certain laws, and are prohibited from certain actions, including:

Interfering with, coercing, or restraining employees right

to form, join, or assist in the formation of labor
organizations
Dominating or interfering with the formation of any labor
union organization
Discrimination in hiring or tenure of employees in order to
discourage participation in union organization
Discriminating against any employee who files charges or
testifies against the employer
Refusing to bargain with the employees representative

The National Labor Relations

Board
The National Labor Relations Board (NLRB) was formed in
1935 to oversee compliance with the National Labor Relations
Act. This federal agency is charged with managing legal
disputes between employees and an employer. The agency is
also responsible for taking action against employers in
violation of the NLRA.

Good Faith Bargaining

Both employees and employers are required to partake in good
faith bargaining. While this term may involve many issues, it
typically includes (1) refusal of either party to meet and
attempt to bargain with the other party, (2) engaging in sham
or misleading negotiations, and (3) making changes to the
terms of an existing CBA without consulting the other party.
The NLRB helps ensure all employers and employee
representatives adhere to these conditions as, when principles
of good faith bargaining are not adhered to, the negotiation
process between employer and employees may be more
difficult.

Mandatory Bargaining Issues

Employers do not have to engage in good faith bargaining over
every issue that arises as some may be considered trivial and
are not covered under the labor laws. There are some issues,
however, that are considered mandatory bargaining issues for
which employers must participate in collective bargaining,
including wages, layoff procedures, and hours. When an
employee group desires changes to be made in an issue
subject to collective bargaining, it must give advanced notice
to the employer. If the employer refuses to meet in collective
bargaining over the issue, it may be charged with unfair labor
practices, and the NLRB may step in. This often results in an
investigation by the NLRB, and potentially in a labor strike.
Collective Bargaining Process
The collective bargaining process involves five core steps:

1. Preparation Choosing a negotiation team and

representatives of both the union and employer. Both
parties should be skilled in negotiation and labor laws, and
both examine available information to determine whether
they have a strong standing for negotiation.
2. Discussion Both parties meet to set ground rules for
the collective bargaining negotiation process.
3. Proposal Both representatives make opening
statements, outlining options and possible solutions to the
issue at hand.
4. Bargaining Following proposals, the parties discuss
potential compromises, bargaining to create an agreement
that is acceptable to both parties. This becomes a draft
agreement, which is not legally binding, but a stepping
stone to coming to a final collective bargaining agreement.
5. Final Agreement Once an agreement is made
between the parties, it must be put in writing, signed by the
parties, and put into effect.

Continuous Bargaining
Continuous bargaining is a method of collective bargaining in
which ongoing negotiations between the employer and the
union representative take place. This may occur when the
employer and union representative have a good working
relationship that enables them to continually make small
changes to ensure positive employment policies.

Concession Bargaining
Concession bargaining is a method of collective bargaining that
sometimes takes place when the employer is in distress. In this
situation, the union may give the employer back a previous
agreement in exchange for job security for the largest number
of employees. For example, a union may give up paid time off
in exchange for protection for layoffs.

Benefits of Collective Bargaining

According to studies, employees covered by collective
bargaining often have better working conditions, higher wages,
and better benefit packages than employees who are not
members of a labor union. For example, union workers are
more than 18 percent more likely to have affordable health
insurance, and 22 percent more likely to have pension
coverage. Wage advantages offered by collective bargaining
mostly benefit earners of middle and lower wages, reducing
wage gaps. Membership in labor unions and collective
bargaining also benefits employees by decreasing the wage
gap that exists between male and female employees.

Collective Bargaining in
Education
Collective bargaining in education consists of a process in
which faculty and the board of trustees at a school interact and
negotiate terms of employment. The collective bargaining
process in education, similar to other forms of collective
bargaining, results in legally binding agreements that cannot
be changed by only one side. If changes are needed, both
parties must participate in negotiations to reach a new
agreement.

Some reasons educational employees are encouraged to

engage in the collective bargaining process include:
1. It creates a feeling of shared control over employment
issues and the decision making process.
2. Clearly defined employment policies reduce uncertainty.
3. A fair and effective grievance procedure increases faculty
confidence that problem issues will be handled in a fair and
timely manner.
4. A negotiated agreement that addresses faculty concerns
provides a sense of security.
5. The policy of collective bargaining puts pressure on both
sides to act in good faith in regard to employment
practices.

Employer Duty to Supply

Information
While the employer has an obligation to supply pertinent
information to the union during the collective bargaining
process, only certain information is required to be supplied. For
example, if an employer claims it cannot grant a wage increase
request due to financial problems, the union has the right to
request documents supporting the employers claims. The
employer must also provide the employees current salary
rates and benefit information upon request.

Union Duty of Fair

Representation
When an employee is a member of a union, the union has a
duty to provide fair representation to the employee. While the
union is not required to act on every request that an employee
makes, it must treat each and every request fairly regardless of
the employees race, age, sex, or education. If an employee
feels that the union has breached its duty of fair
representation, he may follow certain procedures to file a
grievance. If there are no grievance procedures available, the
employee may hire an attorney to help ensure his rights are
protected. Because employment law can be complex, an
attorney experienced with employment issues is best suited in
this situation.

When a Deal is Not Reached

When a collective bargaining dispute cannot be resolved
through ordinary means, the issue falls into the hands of the
NLRB. The board investigates the claims over which a deal was
not reached, and looks at information from both sides in
determining whether future proceedings are necessary. The
NLRB may make a decision siding with either party, as long as
fair labor laws are not violated.

Paying for Representation

In many states, employee union members are required to pay
for a portion of the cost of representation during the collective
bargaining process. Employees may also be required to pay
monthly dues, which may be equal to 1% or 2% of their pay. In
some jurisdictions, the dues may not be used for
representation during collective bargaining, while in other
jurisdictions the dues are specifically for such representation.

International Collective
Bargaining
Collective bargaining is an international human right
recognized in Article 23 of the Universal Declaration of Human
Rights. The right to international collective bargaining is
promoted through international labor standards, and though
not all countries recognize the National Labor Relations Act or
National Labor Relations Board, many countries have their own
associations or agencies that oversee labor rights.

Related Legal Terms and Issues

Coercing persuading or forcing a person to do
something through the use of manipulation or threats.
Dues the cost of membership when a person joins a
union or club. Dues many be required weekly, or annually.
Grievance a formal complaint filed by an employee or
agent. Some employers or agencies have specific
procedures that must be followed.
Independent Contractor a person who agrees to do
work for someone else using his own methods.
Layoff a permanent or temporary discharge of
employees.
Strike the act of employees organizing and protesting
employment practices in an attempt to induce changes.
Union an organized group of employees that is formed
to protect workers from unfair labor practices.

Trade Union
Know more about Trade Union in Pakistan. Workers are entitled to join a union without
previous authorization; however, they can become members of only one union at a time. If a
worker joins more than one union at a time, his earlier membership will get cancelled.
What is a trade union and what are relevant laws in Pakistan for trade union activities?
Labor law in Pakistan defines trade union as a combination of workmen whose primary
purpose is to promote and defend workers rights and interests in an industry or
establishment.
The right to join association is guaranteed under article 17 of the Constitution of Islamic
Republic of Pakistan, which says, Every citizen shall have the right to form associations or
unions, subject to any reasonable restrictions imposed by law in the interest of sovereignty
or integrity of Pakistan, public order or morality. Article 17 of the Constitution not only
guarantees freedom of association but also collective bargaining as a fundamental right.
 Keeping in view this provision, labour law in Pakistan allows formation and joining of trade
unions/associations to both the employers and the employees. There is a special law in
Pakistan for trade union registration and settlement of industrial disputes i.e., Industrial
Relations Act. After passage of 18th Constitutional amendment, labor is no longer a subject
on concurrent list i.e. central government can no longer legislate in labor related matters.
Though provinces are allowed to legislate in labor matters now, yet only Punjab province has
enacted its Punjab Industrial Relations Act 2010 so far. The other three provinces and
federal capital territory are still in the process of consultation on new legislation.
Workers are entitled to join a union without previous authorization; however, they can
become members of only one union at a time. If a worker joins more than one union at a
time, his earlier membership will get cancelled. Moreover, both workers and employers have
the right to join federations and confederations, which have the right to affiliate with
international organizations.
Can I join a union?
Every Worker can join a union except those working in;
1. Police or defense services of Pakistan
2. Administration of state other than Pakistan Railways and Pakistan Post
3. Pakistan Security Printing Corporation or the Security Papers Limited
4. Hospital or institution for the treatment or care of sick, infirm, destitute or mentally
unfit persons excluding those run on commercial basis (only trusts are exempted);
5. Watch and ward, security or fire service staff of an oil refinery or an airport;
6. Security or fire service staff of an establishment engaged in the production,
transmission or distribution of natural gas or liquefied petroleum gas
7. Any services or installations exclusively connected with or incidental to the Armed
Forces of Pakistan
8. Export Processing Zone Workers (Notification S.R.O.1004 (1)/82 which exempted
EPZs from labour laws)

Other than these, Industrial Relations laws are also not applicable to agriculture sector where
around 45% of the labor force is employed (Labor Force Survey 2008-09). Agriculture
workers are free to join and form associations, however, they cant collectively bargain under
the Industrial Relations Act as this law is not applicable to the agriculture sector.
How can we register a union? What are the requirements? Please guide.
A trade union can apply for registration to the office of Registrar of trade union in a province.
While submitting the application for registration, you need to attach a statement showing
name and address of trade union, its date of formation, relevant information of its office
bearers (like titles, names, ages, addresses and occupations), name of establishment and
industry to which this union relates, total number of workers employed in establishment and
the total paid membership, etc. Above-mentioned are called the requirements of application.
There are also registration requirements, which require that:
All members of a trade union should be workmen, engaged in same establishment
(you cant take members outside your establishment)
If there are two or more unions in your establishment, your membership must not be
less 20% (some laws stipulate 25%) of total employed workforce (it means only 4-5 unions
can exist in your establishment)
Only up to 25% of the executive body members can be outsiders (those who are not
actually employed as workmen in your establishment)
The Constitution of your trade union should also provide information on
 1. Name and address of trade union
2. Objectives of your trade union
3. Usage of funds (purpose)

There are other requirements as well. Please go through the Industrial Relations Act of your
province or capital territory, depending upon your location, for further information. After
registration, the Registrar of trade unions will issue you a certificate of registration as a
conclusive evidence of your trade unions registration.
Registration of your union can be cancelled either by Registrar of trade unions or Labor
Court. The Registrar can cancel your unions registration if it:
Did not apply for determination of CBA within 2 months of registration (in case no
CBA already exists)
Did not contest in a referendum for determining CBA
Secured less than 15% of polled votes in a referendum for determining CBA

Please keep in mind that these are not the only reasons for cancellation of registration.
What is a Collective Bargaining Agreement and how is it determined?
Collective Bargaining Agent is a trade union, which is the elected agent of workers in an
establishment. A collective bargaining agent is elected after holding a secret ballot election if
there is more than one union in an establishment. However if there exists only one union and
its members are at least one-third of total workers in an establishment and it makes an
application for certification, then it can be certified as CBA by Registrar. In case of more than
one union, Registrar is to hold a secret ballot election within 15 or 30 days (depending on
establishment size) after having received application for determining status of CBA. Those
who are eligible to vote are i) with at least 3 months of service, ii) members of a trade union
contesting the elections and iii) registered as voters in the voters list. A trade union cant be
certified as CBA unless the votes received by it are at least 33% of total employed workers in
an establishment. If no union receives at least 33 of total votes (of employed workers), a
second election will be held between two unions, who have secured highest number of
votes. Thus, the union that wins this run-off election will be certified as CBA. The CBA
engages in collective bargaining with employer on any matter of employment, non-
employment, terms of employment and working conditions. CBA also represents workers in
any proceedings, gives notice of strike and nominates workers on boards of Provident Fund
and Workers Participation Fund in an establishment.
Can you please tell us the process for declaring strike and lockout?
Strike is the cessation of work by a worker in establishment acting in combination or a
concerted refusal of employed workers to continue to work to accept employment while
lockout is closure. Similarly, suspension (of work) or refusal on employers part to continue
employment of workers where this action is related to an industrial dispute or where aim of
this action is to compel workers to accept certain conditions of employment also falls in the
ambit of strike/lockout. It must be emphasized here that strike and lockout are not
fundamental rights, in contrast to right to association and collective bargaining (under a 1997
Supreme Court decision).
Strike or lockouts can be declared only for industrial disputes and not for individual
grievances. Only an employer or CBA can raise industrial disputes, while following certain
steps. They first need to negotiate on any arising industrial dispute. If disputant parties are
unable to resolve matter through negotiation, they can go for conciliation. On the request of
employer or CBA, Federal or Provincial Governments can appoint a tripartite Board of
Conciliators. If conciliation fails, both the parties can either go for arbitration (by an agreed
upon arbitrator). The award of arbitrator is final and cant be appealed against. However, if
they dont refer the matter to an arbitrator, CBA can go on a strike or employer can declare a
lockout (both after serving necessary notices). While during the strike/lockout, any party can
apply to Labor Court for adjudication.
Can Government prohibit a strike or lockout?
Government can prohibit an ongoing strike or lockout (before completion of 30 days), if it is
satisfied that it is causing serious hardship to community or harmful for the national interest.
Strikes and Lockouts are also prohibited in public utility services and disputes are referred by
government for compulsory arbitration.
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workers) and the Employer. Complaint forms are available in PDF and online version.
efinition: The Collective Bargaining is the process wherein the unions
(representatives of employees or workers), and the employer (or their
representative) meet to discuss the issues related to wage, the number of
working hours, work environment and the other terms of the
employment.

There are four types of Collective Bargaining classified on the basis of

their nature and the objectives, and can be practiced depending on the
different situation requirements.
 Types of Collective Bargaining

1. Conjunctive or Distributive Bargaining: In this form of

collective bargaining, both the parties viz. The employee and the
employer try to maximize their respective gains. It is based on the
principle, my gain is your loss, and your gain is my loss i.e. one party
wins over the other.

The economic issues such as wages, bonus, other benefits are discussed,
where the employee wishes to have an increased wage or bonus for his
work done, whereas the employer wishes to increase the workload and
reduce the wages.

2. Co-operative or Integrative Bargaining: Both the employee and

the employer sit together and try to resolve the problems of their
common interest and reach to an amicable solution. In the case of
economic crisis, such as recession, which is beyond the control of either
party, may enter into a mutual agreement with respect to the working
terms.

For example, the workers may agree for the low wages or the
management may agree to adopt the modernized methods, so as to have
an increased production.

3. Productivity Bargaining: This type of bargaining is done by the

management, where the workers are given the incentives or the bonus for
the increased productivity. The workers get encouraged and work very
 hard to reach beyond the standard level of productivity to gain the
additional benefits.

Through this form of collective bargaining, both the employer and the
employee enjoy the benefits in the form of increased production and the
increased pay respectively.

4. Composite Bargaining: In this type of collective bargaining, along

with the demand for increased wages the workers also express their
concern over the working conditions, recruitment and training policies,
environmental issues, mergers and amalgamations with other firms,
pricing policies, etc. with the intention to safeguard their interest and
protect the dilution of their powers.

Thus, the purpose of the Collective Bargaining is to reach a mutual

agreement between the employee and the employer with respect to the
employment terms and enjoy a long term relationship with each other

Read more: http://businessjargons.com/types-of-collective-

bargaining.html#ixzz4hmBvm2z2

Coz of failure
Transcript of CAUSES AND EFFECT OF FAILED
COLLECTIVE BARGAINING IN AN ORGA
PREPARED BY:
MUHAMMAD FAKHRUL ZAMAN BIN HAMIL (2013459634)
NURUL AZIRA BINTI JUNAIDI (2013495522)
NURUL SYAFIQAH BINTI NAZARUDDIN (2013234312)
PUTERI SHEREEN ROHAYU BINTI ALIAS (2013415458)
Incompetence of trade unions leader in handling the collective
bargaining process
leader himself is lack of knowledge and skill
not fulfil the requirement and does not competence enough to settle
the collective bargaining process that lastly leads to the grievances in
the union.
Instead, as a leader he or she must have an adequate knowledge and
skills in order to settle any disputes that arise
lack of communication skill that will leads to misunderstanding or
misinterpreting in the sending and receiving the message during the
negotiation process
INTRODUCTION
a process by which representatives of the employees meet together
with the employer to negotiate and decide upon workers wages and
other terms and conditions of service.
objectives of collective bargaining are:
to improve wages and conditions of works and employment among
employees
to protect employees welfare
to avoid arbitrary action by employers
By having a successful of collective bargaining or negotiation, it will
result to a collective agreement.
to avoid any violation towards the right of the employees that could
lead to the failure of the collective bargaining.
CAUSES OF FAILED COLLECTIVE BARGAINING
UNFAIR LABOR PRACTICES
FAILURE TO RECOGNIZE THE UNION
willing to accept the union as a rightful representatives of his workers.
medium for workers to channel all their complaints, grievances,idea
and demand towards their employer
individual workers has limited bargaining power compared to the
employer
For example, CUEPACS wants government to increase the salary of civil
servant by 35 per cent on 2016 and hoping that government will
increase the incentives for civil servants in Malaysia
GRIEVANCES IN UNION
a reasonable and legitimate complaint by the employee concerned
which he brings to the attention of his immediate supervisor or officer
and which is subsequently not settled to the satisfaction of the
employee.
usually happen when violation of an employees right on the job have
been occurred.
can be caused by incompetence of trade unions leader in handling the
collective bargaining process and reluctant of employer to proceed
with the collective bargaining process.
CAUSES AND EFFECT OF FAILED COLLECTIVE BARGAINING IN AN
ORGANISATION
PREPARED FOR:
MADAM NURUL AKMA BINTI KAMARUDIN
Unfair labor practices becomes one of the causes that can make a
collective bargaining fail is because employer or trade unions involve
in prohibited activities or conduct that is considered as unlawful labor
practices or activities.
Firstly is in term of unfair labor practices by the employer.
Example of unfair labor practices by employers is discrimination
against the employees to encourage or discourage membership in a
trade union.
Reluctant of employer to proceed with the collective bargaining
process
In the Industrial Relations Act 1967 (Section 13), it clearly explain on
the process that need to be followed by parties involved in the
negotiation process.
The employer must reply to the invitation within 14 days after receive
an invitation to begin the negotiation from the trade union.
If the employer or organisation agrees to begin the negotiations, the
first bargaining process must start within 30 days.
However, if the unions invitation is ignored or rejected by the
employer or organisations, the union may inform the Director General
of Industrial Relations and request for conciliation.
EFFECTS THE FAILURE OF COLLECTIVE BARGAINING
Employer and Employees Participation Decrease
being discriminate, violated or being coercion by the employers or the
unions
feel that they are not treated fairly and justly.
violated by the employers
just waste their time
cant get any benefit, instead their demand cannot be uphold as well.
do not satisfy with the unfair labour practices done by the employers
or the union, its indirectly could also make them demotivated to
involve or participate in the collective bargaining.
not legally declared by the employer to be as a representatives of their
employees.
simply exploit and discriminate their workers easily because the right
of employees had been denied by the employers
For example, in March 2013, the Workers Union of the West Territory
Electronic Industries picketed outside the Human Resources Ministry to
protest against their employers for the refusal to acknowledge the
existence of unions in their companies
ECONOMIC SITUATION
It happens between trade unions and employers.
The reasons of the economic situation problems is when the trade
unions cannot get opportunity or chance to increase their salary based
on their long term of period of working in organization.
This is always happen in private sector organization.
It will effect to the failure collective bargaining among trade unions and
employers due to economic situation
EMPLOYEES FEEL DEMOTIVATED
make someone less eager to work or study
they feel insecure in the organization and within the workplace.
employer had ignore employees right to participate in union activities
and also their demand, complaint or any grievances from the
employees.
For example, in Hong Kong, trade union are denied its right to get
recognition and are denied to conduct collective bargaining
Strikes and Picketing
Strike and picketing happen when there are trade disputes occur
among the employer and employee within the organisation.
Strikes and picketing may occur because of certain factors such:
failure of the grievance procedures to conclude a satisfactory results
the refusal of employer to accord recognition
the non-implementation of an agreement or award and so on.
STRIKE
strike occur when the employee refuse or stop doing their work which
also include in delaying or slow down the production of works on
purpose.
This happen because of the employer did not accept the demands of
the employees and may also happen due to the fails from the
collective bargaining process.
For example, on 14 March 2013, about 2000 foreign workers of a
textile and polyester manufacturer in Negeri Sembilan and a furniture
maker in Johor went on a strike on Tuesday to press for the minimum
wage of RM900 a month.
PICKETING
refers to a situation whereby workmen may attend at or near to their
workplace when a trade dispute arise involving the workers and it
exists for the purpose of peacefully and giving information to the public
and other workers only.
one of the important mechanism or tactic for the unions to pressure
the employers in order to get an attention to the demands required by
the employees.
For example, about 100 members of Malaysia Airline System
Employees Union (Maseu) held a peaceful picket over their
dissatisfaction with Malaysia Airlines (MAS) management over its plan
to sell its engineering division.
GROUP:
S3 AM110 5F
Second is in term of unfair labor practices by the unions.
Example of unfair labor practices by the unions that become the
causes of the collective bargaining are fail is causing or trying to cause
an employers to discriminate against employee for the purpose of
encouraging or discouraging union membership.
EMPLOYEE TURNOVER
Defined as based on human resources terms where is employee
turnover is a measurement of how long your employees stay with your
union or company and how often you replace them.
Employee turnover can be divided by two types of turnover.
Employee turnover may happen when there is no collective bargaining
between trade union and employer
CONCLUSION
collective bargaining is important part in trade union in order to
negotiate with their employers in order to improve the needs and
wants of trade union towards employers
act as a principal means of improving the terms and conditions of
employees employment and promoting their socio-economic interest
Without the right of collective bargaining, it may cause a big problem
due to the bad relationship among trade union and employer.