Effective collective bargaining & negotiation skills

EFFECTIVE COLLECTIVE BARGAINING &

NEGOTIATION SKILLS

DR.BALAKRISHNAN MUNIAPANEmail: [email protected]

INTRODUCTION & ICE BREAKER

INTRODUCTION & ICE BREAKER

Your NameYour OrganizationYour current understanding of

collective bargaining & negotiation &What do you hope to achieve from

this 2 days seminar?

DR. BALAKRISHNAN MUNIAPAN

Born and received early education in Sg Petani, Kedah.

Holds BEcons (UKM), MSc (HRM) (Portsmouth, UK)CIWT,(ACAP, AUST), DBA (Philippines).

Brings over 18 years of experience from various fields suchas, manufacturing management, corporate training,consultancy and education.

Presented papers at seminars & international conferences inseveral countries in Asia, Australia, Africa & Europe.

Currently based in Kuching, Sarawak with an Australianbranch campus university involved in teaching & research inHRM. Facilitates international DBA/MBA programs in OB &HRM.

PROGRAM OBJECTIVES

Understand the framework of industrialrelations & collective bargaining in Malaysia;

Plan strategies & tactics for collectivebargaining & negotiation;

Handle stressful negotiation at the bargainingtable with a positive mindset; &

Develop the skills of an effective negotiator.

PROGRAM METHODOLOGY

Short lectures, group discussions, presentations,role play and case studies approach will be used toenhance your learning experience.

You are encouraged to discuss, contribute & sharefrom your own knowledge & experience on issuesrelated to collective bargaining, negotiation &industrial relations.

This is in accordance with research on adultlearning which shows that a deeper level of learningoccurs when there is active participation on the partof the participants

GROUND RULES FOR LEARNING

Active listening (not just hearing)Appreciate others viewpoint (diversity)Off your mobile or in silent mode

Have fun as you LEARN

INDUSTRIAL RELATIONS

What is Industrial Relations?

What is Employee Relations ?

INDUSTRIAL RELATIONS

Industrial relations (IR) is be defined as the studyof relations between employers, employees andtheir trade union.

Industrial relations is also known as employee orlabor relations.

However, IR as a separate function in anorganization only exist when the employees areunionized. Normally employee relations (ER) is theterm used when workers are not members of aunion.

FOCUS OF INDUSTRIAL RELATIONS

laws & rules which impact on the workenvironment.

terms & conditions of work.

the process which the rules & terms aremade.

rights of employers & employees.

MALAYSIAN INDUSTRIAL RELATIONS SYSTEM

Malaysian & almost all IR system are tripartite,i.e., they are made up of three parties.

The parties or the participants in an IR systemsare the employers, employees and thegovernment.

Rules and regulations on compensation, workers'right, discipline and the duties and performance ofemployees can be made in any of 3 ways –unilaterally, bilaterally or in a tripartite way.

MINISTRY OF HUMAN RESOURCES

The seven departments in MHR are:-

Department of Labor, Peninsular Malaysia Department of Labor, Sabah Department of Labor, Sarawak Department of Industrial Relations Department of Trade Unions Department of Occupational Safety & Health

Department of Manpower

MINISTRY OF HUMAN RESOURCES

Organization which are independent butreports to the MHR are:-

Social Security Organization. Employees Provident Fund. Human Resource Development Fund. Industrial Court.

INDUSTRIAL CONFLICT

Conflict in terms ofdivergence interestsbetween managers &workers can be seen interms of the employerswish to maximize profitsand employees want higherwages & better terms &conditions of service.

Higher wages can only bepaid at the expense oflowering profits. Thus,wants of employees &employees leads toconflict.

PRACTICAL ACTIVITY

GOOD INDUSTRIAL RELATIONS

Good IR will lead bothparties to work for acommon goal -increasing growth andsuccess of theorganization so that itsfuture is guaranteed &both profits & wagescan be assured.

GOOD INDUSTRIAL RELATIONS

Outcomes of good IR: communication understanding & trust co-operation mutual commitment to shared objectives

Good IR arise from managers whobelieve that ‘people are the company’smost important asset’.

PSYCHOLOGICAL CONTRACT

• Psychological contract is an unwritten agreementthat sets out what the employers expects from theemployees & what the employees expects from theiremployers.

• It consists of mutual expectations & satisfaction ofneeds.

• It covers a range of issues, rights & underlyingassumptions about fairness and equity.

EMPLOYEES EXPECTATIONS

• Safe & hygienic working conditions

• Job security

• Challenging work

• Fair policies & participation

• Creativity/opportunities

• Consideration/understanding

• Feedback

EMPLOYERS EXPECTATIONS

• Obedience & commitment

• Motivation & loyalty

• Not to abuse goodwill

• To uphold image of theorganization

• To accept the beliefs of the organization


When either the employers or theemployees expectations are not metfriction, difficulties & unharmoniousrelationship will occur.


The extent of matches between employers &employees expectations will influence theorganization productivity, its profitability, jobsatisfaction, loyalty, etc.

Understanding and matching thepsychological contract is essential in creatingand maintaining a harmonious IR in anyorganization.


How do you think your organizationhas meet your employee’sexpectations?

As leaders what can you do toincrease the level of job satisfactionsof your employees?

COLLECTIVE BARGAINING

IRA 1967 defines collective bargaining asnegotiating with a view to conclusion of acollective agreement.

Collective agreement is an agreement inwriting concluded between an employer or atrade union of employers on one hand, and atrade union of workmen on the other relating tothe terms and conditions of employment andwork of workmen or concerning relationsbetween such parties.

COLLECTIVE BARGAINING

For effective collective bargaining, the union

1. Must be recognized by the employer2. Must have financial strength3. Members must have solidarity

Registration gives the union the legal right to exist but recognition means employer accepts the union as the rightful representative of his workers.

MANAGEMENT PREROGATIVES

Section 13(3) of IRA 1967 states no tradeunion of workmen may include forproposal for collective agreement thefollowing matters:-

• The promotion by an employer of anyworkman from a lower grade or categoryto a higher grade or category;


• The transfer by an employer of a workmanwithin the organization of employer’sprofession, business, trade or work,provide that such transfer does not entaila change to the detriment of a workman inregard to his terms of employment;


• Employment by an employer of any personthat he may appoint in the event of avacancy arising in his establishment;

• The termination by an employer of servicesof a workman by reason of redundancy orby reason of reorganization of anemployer’s profession, business, trade orwork or the criteria for such termination;


• The dismissal and reinstatement of aworkman by an employer

• The assignment or allocation by anemployer of duties or specific tasks to aworkman that are consistent or compatiblewith terms of his employment

CASE STUDY

Kassim has a MBA in HRM is offered the position of Manager – IndustrialRelations at a local manufacturing company. He does well during theprobationary period & is confirmed in his position. Soon after, theNational Union representing companies in his industry, are recognizedto represent the employees. Kassim has never worked with Unionsbefore and has a hard time negotiating the first CA with the mandategiven by the management. He does little to build rapport with theUnion, who start picketing outside the Company’s premises. Kassimcalls in the Police (who are his good friends), who arrest the Unionleaders for causing public disturbance . The Union had overlooked hisrelationship with the local Police & did not seek a permit for picketing.After 2 days, the Union leaders are released…now they refuse toproceed with negotiations over the CA & are working to rule.Production & quality suffers & employee morale falls. The MD calls fortermination of Kassim.

COLLECTIVE BARGAINING PROCESS – 3 PHASES

1. PREPARATION FOR NEGOTIATION

Monitoring the environment and collectinginformation

Analyzing market practice & industry norms Analyzing the union proposals Determining management’s position Selecting the bargaining team Securing top management approval


2. FACE-TO-FACE BARGAINING

Negotiating with the union Bargaining strategies Signing of the collective agreement


3. ADMINISTRATIVE OF COLLECTIVEAGREEMENT

Briefing of all management staff Adjusting compensation & policies Ensuring compliance from management & union

PREPARATION FOR NEGOTIATION

Monitoring the environment & collectinginformation.

Know the employment laws Know the court awards Study the current collective agreement Collective agreements of other organizations Documentation of experiences in administration of

the agreement


Analyzing market practices & industry norms

Understand the economic indicators Learn the practices in other organizations in the

industry & surrounding geographical area(includes salary & benefits survey)


Analyzing theunion proposals

Compare it withexisting CA

Various clausesshould be analyzedin detail


Determining Management Position

Evaluate the union demands & determine what arethe realistic clauses

Work out the costing of each demands of the union Where increments are concerned, IC Award 117/82

– CPI may be used as a guide to what is reasonable


Selecting the bargaining team

Should CEO be in the bargaining team? Why & whynot?

Management team = 3-4 negotiator with a chiefnegotiator

What are the criteria for selection?


Securing top management approval

Once the management negotiating team has beenappointed, they should meet out the goals &strategy for the team

Top management should approve the overallbargaining goals or give a mandate to thebargaining team, so that they have a guide towhat they can & cannot offer

FACE-TO-FACE BARGAINING

Negotiating with the union

What are the do’s & don’ts of bargaining? How to avoid deadlock?

Signing of CA – 10 copies to Industrial Court forcognizance within 1 month of the agreement

ADMINISTRATIVE OF COLLECTIVE AGREEMENT

Briefing of all management staff

Responsibility of the management to ensure allmanagement staff are familiar with the newcollective agreement

This done through meetings and training sessions

ADMINISTRATIVE OF COLLECTIVE AGREEMENT

Adjusting compensation policies

What is the role of HR?

Ensuring compliance from management &union

What is the role of HR?

NEGOTIATION SKILLS

Negotiation occurs when conflict existsbetween groups and both parties areprepared to seek a resolution throughbargaining.

Negotiation helps to develop mutuallybeneficial solutions in situation of conflict.

NEGOTIATION SKILLS

Do you consider yourself a negotiator?

What is your strength & weaknesses as anegotiator?

Find out the your partner’s negotiationstrengths & weaknesses

NEGOTIATION – SELF ASSESSMENT

Increase Your Self-Awareness:

Assess Your Self-Esteem

Assess Your Locus of Control

Assess Your Negotiation Skills

FUNDAMENTALS OF NEGOTIATION8 Pillars of Negotiation Wisdom

1. Be conscious of the difference between positions and interests

2. Be creative3. Be fair4. Be prepared to commit

5. Be an active listener6. Be conscious of the

importance of the relationship

7. Be aware of the BATNAs

8. Enhancing negotiations skills

The Convergence of Corporate & Human Issues

NEGOTIATION MYTHBUSTERS

You don’t have to be in businessman to be a good negotiator.

Negotiating is NOT the same as fighting.

Negotiating effectively is not a privilege of certain people.

You don’t have to have the upper hand to negotiate effectively.

Negotiating is not a time-wasting activity.

Negotiating is not always the sum of clearly defined procedures or

parameters. It is the sum and substance of human give and take.

NEGOTIATION & CONFLICT

Ways of Handling Conflict

Competition

Collaboration

Compromise

Accommodation

Avoidance

What is your conflict handling style?

Conflict Handling Style #1THE TURTLE

Key Characteristic: DENIAL

Key Response: AVOID

Key Aim: TO WEATHER THE STORM

Favorite Statement: What conflict?

Conflict Handling Style #1THE TURTLE

Refuses to even consider the fact that a conflictexists and would prefer that others do the same.Because of this, he refuses to dialogue andgather information to fix it.

Key Strategies: Flee, avoid, deny, ignore,withdraw, delay, hope & pray.

Leadership Qualities: Passive & timid, tends tospiritualize everything.

Conflict Handling Style #2THE SHARK

Key Characteristic: COMPETITION

Key Response: FORCE

Key Aim: TO WIN AT ALL COST

Favorite Statement: It’s my way or noway.

Conflict Handling Style #2THE SHARK

He is impatient with dialogue and informationgathering and would rather everyone just submits.

Key Strategies: Compete, coerce, control, fight,outwit, outdo.

Leadership Qualities: Authoritarian, seeks tomaintain the status quo, feels threatened by any actof defiance and so will quash it all the time.

Conflict Handling Style #3 THETEDDY BEAR

Key Characteristic: GIVE IN

Key Response: ACCOMODATE

Key Aim: TO KEEP THE PEACE

Favorite Statement: Whatever you say.

Conflict Handling Style #3THE TEDDY BEAR

Interested in other’s approval and would ratherothers insist on their way.

Key Strategies: Agree, give in, appease, flatter

Leadership Qualities: Ineffective in any groupdiscussion because he doesn’t have a solid opinion,could be easily swayed either way

Conflict Handling Style #4 THE FOX

Key Characteristic: TOLERATE

Key Response: COMPROMISE

Key Aim: GIVE EACH ONE A MEASURE OF VICTORY

Favorite Statement: Meet me half way.

Conflict Handling Style #4THE FOX

Tolerates the exchange of ideas but finds thisuncomfortable so he would rather bargain quickly.

Key Strategies: Reduce the expectations and Splitthe difference

Leadership Qualities: Good negotiator, cautiousbut open, urges everyone to speak out but not toomuch

Conflict Handling Style #5THE OWL

Key Characteristic: COOPERATION

Key Response: DIALOGUE

Key Aim: COLLABORATION BETWEEN ALLPARTIES

Favorite Statement: My preference is…Butwhat is yours?

Conflict Handling Style #5THE OWL

Focuses heavily on information gathering andalways prefers collaboration over compromise.

Key Strategies: Gather information, dialogue openly,explore alternatives

Leadership Qualities: Focuses on the process, opento change & growth

TEDDY BEAR:Lose-Win

Values relationshipsOver goal

SHARK:Win-Lose

Values goal overrelationships

OWL:Win-Win

Values both goal& relationship

TURTLE:Lose-Lose

Low concern for eithergoal or relationship

FOX: Win some-Lose some

Values both but iswilling to sacrifice

certain aspects of either under certain circumstances

High Concern for Personal Goals

Low Concern for Personal Goals

HighConcernForRelationships

LowConcernForRelationships

Turtle Shark

Teddy Bear

Fox

Owl

WHICH “ANIMAL” ARE YOU ?

Turtle Shark

Teddy Bear

Fox

Owl

WHICH “ANIMAL” DO YOU HAVE IN YOUR NEGOTIATING TEAM?

COMPLEX NEGOTIATION ISSUES

In your groups communicate on acomplicated negotiation issuesexperienced

Share your experience and the lessonslearnt

Present your group discussions to others

CONFIDENCE

“Confidence, like art, never comes from having all the answers; it comes from being open to all the questions”

-- Earl Gray Stevens

TEAM ROLES & RESPONSIBILITIES

Lead Negotiator Main Speaker Only Member permitted to make

Signals Movement

Recorder Records Key Arguments Records Final Agreement

Analyst Monitors overall team strategy Monitors other teams strategy Identifies areas of Common Ground Monitors Movement

TEAM CONTROL

Discipline Self Team

Never interrupt the Lead Negotiator

Respect Silence -NEVER Interrupt

Decide and Agree the strategy early on

Always keep to the agreed strategy

Negotiate through the Leader

Support one another openly

Portray a United Front

PERSONAL CONTROL

Always Be Polite - It never reduces your argument Firm - Removes Perceptions of Weakness Calm - Facilitates Persuasion and

Compromise

Don’t ever take things personally

Be aware of yourself and use your Emotional Intelligence

EMOTIONAL INTELLIGENCE

Definition The capacity for recognizing our own feelings and those of

others, for motivating ourselves, and for managing emotionswell in ourselves and in our relationships

Uses in during negotiation Effective and sustainable relationships Should not be regarded as a ‘soft’ element of negotiation but

as a critical negotiation skill Maximize input from personnel by treating them well Change of focus: Technical Skills to People Skills Development of relationships

ARISTOTLE CHALLENGE

“Anyone can be angry—that is easy. But to beangry with the rightperson, to the rightdegree, at the righttime, for the rightpurpose, and in theright way — that is noteasy.”

EMOTIONAL INTELLIGENCE

Self OthersAware-ness

UnderstandingYourself

UnderstandingOthers

Actions ManagingYourself

ManagingOthers

PERSUASION

Persuasion is the art of finding the bestavailable means influence the behavior orattitude of another person or group

It may elicit a negative reaction from somepeople who would view it as being ‘pushy’

May end up in a win-lose situation where youwin and they lose

PERSUASION IS LIKE MAKING A CANDLE

Melt

Mold

Harden & Ignite!

MELTING RESISTANCE

To Melt Resistance

•Be honest•Find common ground•Use humor carefully•Appreciate what they are already doing•Give realistic pros and cons•Ask them to make your case

Try to melt resistance before meetings

HANDLING OBJECTIONS

To handle objections raised during thepersuasion process:

Listen to what the objection is Focus on the issue NOT individuals Think and evaluate the situation Act by either: incorporating some of the contribution

from the other person Presenting a rationale for why you

disagree

OBJECTIONS HANDLING PROCESS

Listen to andUnderstand what the objection is

Transition

Handle and Overcomethe Objection

PERSUASIVE BEHAVIOUR

It is important that your behavior supports theargument that you are putting across:

Use a strong and enthusiastic voice Speak fluently and without hesitation Use open questions Use silences Have eye contact at least 50% of the time Hold eye contact for at least 5 seconds at a time

PERSONAL CONTROL

Always Be

Polite - It never reduces your argument Firm - Removes Perceptions of Weakness Calm - Facilitates Persuasion and

Compromise

Don’t ever take things personally!

DEVELOPING STATIMA TO PERSERVE

Don’t talk too much

Be firm

Stake out issues that are Non-negotiable

Don’t care too much

Keep things moving

Play to your advantage

Stay Focused

ROLE PLAY – DEVELOPING STAMINA

Each one to determine a product or service tosell. Obtain or sketch the product, ordescribe the product or service, ordemonstrate.

Form into teams of 2 persons –Seller &Prospect.

Seller will attempt to sell the product orservice; Prospect will reject the offer. Bothwill use as many of the different styles learnt.

PREPARING A STRONG BATNA

Determining your BATNA (Best Alternative To aNegotiated Agreement) Develop a list of actions you might take if no agreement is

reached Improve the promising ideas and convert them into practical

options Select the one option that seems best

Factors to be considered Which alternative is most affordable and feasible? Which has the most impact in the shortest time? What are the social costs (if any)?

Consider alternatives available to the other side

NEGOTIATING OUT-SIDE THE BOX

Break away from tradition

Think “Outside the Box”

Exercises

REASONS WHY SOME NEGOTIATION FAILS?

Negotiations can be lost by:

Monopolization of the conversation

Lack of knowledge

Over-stated conditions

Lack of confidence

Poor emotional intelligence

NEGOTIATION SUCCESS QUALITIES

The following are qualities that lead tosuccessful negotiations

– Competitiveness– Knowledge– Self drive & determination– Self reliance– Persistence– Energy / stamina– Positive attitude

WHAT MAKES A GOOD NEGOTIATOR?

Good Negotiators are individuals who developthemselves to be sensitive and allows:

– Understanding of other people– Understanding of the organization– Ability to manage, lead and influence– Ability to use the most valuable resource that your

organization has –its people– Generation of above average results in the long term

WORKSHOP – LET’S NEGOTIATE

TRADE DISPUTE

When employers and employees or their tradeunions are unable to resolve their differences, anindustrial dispute or trade dispute may said toexist.

Section 2 of the Industrial Relations Act, 1967defines a ‘trade dispute’ as follows:

“any dispute between an employer and his workmenwhich is connected with the employment or non-employment of the terms employment or conditionsof work of any such workmen”

DISPUTE RESOLUTION

The Industrial Relations Act 1967 recognizes a number ofways, which can be used to resolve an industrial disputepeacefully namely direct negotiation, conciliation andarbitration and it also identifies the techniques or agenciesinvolved such as grievance procedures, Department ofIndustrial Relations and the Industrial Court.

The preamble to the Act states:

“An Act to provide for regulation of the relations betweenemployers and workmen and heir trade unions and theprevention and settlement of any differences or disputesarising from their relationship and generally to deal with tradedispute and matters arising there from”

DISPUTE RESOLUTION

The Act also makes the resolution of trade disputesas simple as possible. Section 30(5) of the Actspecifies,

“The Court shall act according to equity, good conscience andsubstantial merits of the case without regard totechnicalities ad legal form”.

Dato’ Gopal Sri Ram, JCA in Harris Solid State case,stated as follows:

“Section 30(5) of the Act imposes the duty upon the IndustrialCourt to have regard to the substantive merits of the caserather than technicalities. It also requires the IndustrialCourt to decide a case in accordance with equity and goodconscience. Parliament has imposed these solemn dutiesupon the Industrial Court in order to give effect to thepolicy of democratically elected government to dispensesocial justice to the nation’s workforce”.

DISPUTE RESOLUTION

The Act also gives wide powers to the Court tosettle a trade dispute. Section 30(6) states:

“In making its award, the Court shall not be restricted to thespecific relief claimed by the parties or to the demandsmade by the parties in the course of the dispute or in thereference to it under section 20(3) but may include in theaward any matter or thing which it thinks necessary orexpedient for the purpose of settling the trade dispute orthe reference to it under section 20(3)”

DIRECT NEGOTIATION

Direct negotiation is the ideal method for settling a dispute iswhere both employer and employee come together fordiscussion until a satisfactory compromise is reached.Voluntary negotiations are encouraged in the IndustrialRelations Act.

“Both sides must always leave their channels of communication open;this is one of the basic requirement of a good industrial relationsthat parties must adhere to” (Industrial Court Award – No.328 of1986)

“We sense a lack of communication between the company and the unionbut we do not know who is to blame for this. Like in marriagemanagement and employees can only be productive and look aftereach other’s welfare if they have a good taking relationship”(Industrial Court Award – No 10 of 1988)

CONCILIATION

If however, direct negotiation between the parties reaches adeadlock, any party to the trade dispute may report it to theDirector General of Industrial Relations (DGIR) forconciliation.

Alternatively, even if both parties do not report the disputethe DGIR may in public interest take the role of conciliator.

It must be remembered that at the conciliation stage, theDGIR is a not empowered with any legal force and partiesconcerned are not legally bound to abide by his decisions.

On average, 70 –80% of trade disputes are settled annuallythrough conciliation.

CONCILIATION

“Should they (employer & employee) encounter any industrialproblem, they should seek the guidance and advice of theIndustrial Relations Division of the Ministry of Labour andManpower (known known as Ministry of Human Resources)to overcome them, for in any business undertaking,industrial peace is vital to progress and development” –Industrial Court Award – No.4 of 1982

“The statutory function of the Director General of IndustrialRelations is to conciliate between the parties and, if he failsto bring about a settlement, to recommend to the Ministerwhich cases merit reference to the Industrial Court andwhich cases do not” - Industrial Court Award – No. 85 of1987

COLLECTIVE BARGAINING IN ACTION

Kinta Rubber Works Sdn Bhd in Ipoh & National Union ofEmployees in Companies Manufacturing Rubber Products wereunable to agree on terms & conditions to be included in their10th CA. The dispute was not settled at conciliation and wasreferred to Industrial Court. At this stage, items which werestill not agreed upon included medical benefits, bonus,retirement benefits, retrenchment benefits, allowances, salarystructure & salary adjustment. When the matter was called forhearing at the Court in March 2006, the parties informed theCourt that they had reached an agreement on all of thedisputed items & presented their agreement for a ConsentAward.

ARBITRATION

Where the Industrial Relations department conciliates butthere is still a deadlock, the dispute can then be referred tothe Industrial Court for arbitration

This decision to refer to the Industrial Court may be madeby the Minister of Human Resources at the joint request inwriting of both parties or the Minister can himself refer thedispute to the Court

The Minister, will exercise his discretionary powers to referthe dispute to the Industrial Court or otherwise. When areference is made to Industrial Court, the court willadjudicate the dispute

In arbitration, decisions of the Industrial Court are bindingon both parties.

DISPUTE RESOLUTION PROCESS

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INDUSTRIAL ACTION - UNIONS

Strike: withdrawal of labour Go Slow: work on rules Bans: refusing particular jobs or refusal to

work with certain people Boycott: preventing others from doing business

with the company Picket: preventing employees, customers &

suppliers from entering the work site Industrial tribunal: union seeks assistance of

an industrial tribunal eg. Industrial RelationsDepartment

INDUSTRIAL ACTION

In April 2007, 120 members of the National Union of TobaccoWorkers picketed in front of JT International Tobacco SdnBhd in Shah Alam, Selangor over the company’s refusal tostart negotiating a new collective agreement, the previousone having expired in January 2006.

In October 2006, TM Bhd workers picketed in 3 locations,including Menara Telekom in Bangsar, Kuala Lumpur. Theywere protesting the outsourcing of certain departments,including the company’s call centres to another company.Employees concerned had been given option papers to jointhis company although the trade union was opposing thechange until such time as the terms of transfer of theemployees to the company were clarified.

CASE STUDY

Rahim is the General Secretary of N.U.C.W. and a clerk withAjanta Sdn Bhd in KL. On the 30th July 2003, he was to clearall the vouchers for claims made by officers in the company.At 10.00 a.m. he came to know that his members in AlkaTrading Co. in Kedah had gone strike over the suspension ofa storekeeper. Rahim applied for leave to go to Kedah butthe Manager, Abdul Rahman rejected his application as theclaims had to be paid off by the 31st. However Rahim felt hisresponsibility was with his union members in Alka TradingCo. and left for Kedah. He returned to work on the 4th August2003 having settled the strike but was given a suspensionletter in which he was asked to show cause why his servicesshould not be terminated for having stayed away from workwithout permission for more than 2 days.

CASE STUDY

Nathan called the meeting to silence. ‘Gentlemen’, he said, “it’stime for action. We have been patient but management isonly taking advantage of us. Our union representatives havemet with the company 5 times already and there’s beenalmost no progress towards signing a CA. I propose we startto picket every day at lunch & for an hour after work until themanagement come to their senses & agree to our demands.”

Kamil stood up & said, “ I second that motion. After all, we areonly asking for 1 more day annual holiday & increase in ourbasic salary of RM 50.00 per month. That’s peanuts.Workers at Golden Corporation get far more than we do.”One by one the workers present stated agreement. Theywere in the mood to call a strike but leaders from thenational union advised them to be patient.

INDUSTRIAL ACTION -MANAGEMENT

Lockout: employees not to enter workplace Injunction: civil court order to stop union from

taking industrial action Strike breakers: company uses non-union

labour to fill jobs of striking union members Employer associations: company uses

employer’s association to exert influence onunion

Industrial tribunal: company seeks assistanceof an industrial tribunal eg. IndustrialRelations Department

LOSSES OF INDUSTRIAL ACTION

The union: loss of wages loss of goodwill with management loss of public image loss of security of a united employee front

The management: loss of profits or market position loss of status with other management, board

of directors or shareholders loss of public image

HARMONIOUS INDUSTRIAL RELATIONS (IR)

IR, is essentially ‘human relations’ and understanding the‘humane’ and ‘human’ aspect of management is the first step increating a harmonious IR

The employers should adopt participative management orparticipative decision-making as the authoritarian or directivemanagement styles is not suitable in many organizations in thecurrent business environment.

Handling of employee grievance with an effective grievancehandling machinery is must to resolve disputes at the supervisorylevel. A grievance is like a small fire, the earlier you put it out isbetter.

Effective HRM strategies in terms of employee selection,induction, training and development, performance managementand appraisal, compensation management and employeerelations are essential in creating a cooperative and harmoniousIR.

CONCLUSION

You can foul up on almost anything, you willget another chance. But, if you screw upeven a little bit on ‘people management’(industrial relations) you are gone. That’s it.Top performer or not.

Productivity Through People – The MissingLink by V.T. Shanbhag (cited in Dcruz, 1999)

PROGRAM OBJECTIVES

Understand the framework of industrialrelations & collective bargaining in Malaysia;

Plan strategies & tactics for collectivebargaining & negotiation;

Handle stressful negotiation at the bargainingtable with a positive mindset; &

Develop the skills of an effective negotiator.

DR. BALAKRISHNAN MUNIAPAN Email: [email protected]

http://www.freewebs.com/balakrishnanmuniapan/

Business

Effective collective bargaining & negotiation skills