SYEDA MAHMOONA

KAZMI
ROLL # AH523781
MBA HRM
SMESTER AUTUMN
2010
“ASSIGNMENT 2”
 Collective
bargaining in an
organization
Contents:
Introduction
History
International protection
Procedures and process of collective
bargaining in Pakistan
Negotiation Process
Analysis
Planning
Practical study
History of Telenor
Vision, Mission, Core Values
Collective Bargaining in telenor
SWOT Analysis
Conclusion& recommendation
References

Collective bargaining
is a process of
negotiations between employers and the representatives of
a unit of employees aimed at reaching agreements which
regulate working conditions. Collective agreements usually
set out wage scales, working hours, training, health and
safety, overtime, grievance mechanisms and rights to
participate in workplace or company affairs.
The union may negotiate with a single
employer (who is typically representing a company's
shareholders) or may negotiate with a federation of
businesses, depending on the country, to reach an industry
wide agreement. A collective agreement functions as a
labor contract between an employer and one or more
unions. Collective bargaining consists of the process of
negotiation between representatives of a union and
employers (generally represented by management, in some
countries[which?] by an employers' organization) in respect of
the terms and conditions of employment of employees,
such as wages, hours of work, working conditions and
grievance-procedures, and about the rights and
responsibilities of trade unions. The parties often refer to
the result of the negotiation as a collective bargaining
agreement (CBA) or as a collective employment
agreement.

History
The union may negotiate with a single employer (who is
typically representing a company's shareholders) or may
negotiate with a federation of businesses, depending on the
country, to reach an industry wide agreement. A collective
agreement functions as a labor contract between an
employer and one or more unions. Collective bargaining
consists of the process of negotiation between
representatives of a union and employers (generally
represented by management, in some countries[which?] by an
employers' organization) in respect of the terms and
conditions of employment of employees, such as wages,
hours of work, working conditions and grievance-
procedures, and about the rights and responsibilities of
trade unions. The parties often refer to the result of the
negotiation as a collective bargaining agreement (CBA) or
as a collective employment agreement.

International protection
 The right to collectively bargain is
recognized through international human rights conventions.
Article 23 of the Universal Declaration of Human Rights
identifies the ability to organize trade unions as a
fundamental human right.Item 2(a) of the International
Labour Organization's Declaration on Fundamental
Principles and Rights at Work defines the "freedom of
association and the effective recognition of the right to
collective bargaining" as an essential right of workers.
In June 2007 the Supreme Court of Canada extensively
reviewed the rationale for regarding collective bargaining
as a human right.
The right to bargain collectively with an employer
enhances the human dignity, liberty and autonomy of
workers by giving them the opportunity to influence the
establishment of workplace rules and thereby gain some
control over a major aspect of their lives, namely their
work... Collective bargaining is not simply an instrument
for pursuing external ends…rather [it] is intrinsically
valuable as an experience in self-government... Collective
bargaining permits workers to achieve a form of workplace
democracy and to ensure the rule of law in the workplace.
Workers gain a voice to influence the establishment of
rules that control a major aspect of their lives.

History, procedures and process of

collective bargaining in Pakistan:
 The objective
of collective bargaining as enunciated in the ILO
conventions ratified by Pakistan, is achieved when there is
an effective labour organisation, which is independent of
control or influence of the employer. It is based on the
assumption that the employers have more power inherently
in the equation with employees, being at a comparative
disadvantage in the matters related to determining terms
and conditions of employment. Collective bargaining tends
to enhance the bargaining power of the trade unions and
puts them, during the process, relatively at par. In the
background of collective bargaining is always the threat of
economic force and sanctions. The employer can 'lock out'
the work force from the work place and unions can shut off
the supply of labour. Both the parties would, therefore,
appear to be willing and in good faith when they come to
the bargaining table to discuss, rather than to dispute all
issues that are of common interest. Although the organised
settlement of disputes between the employers and
employees has received due recognition in Pakistan over
the last 25 years, the concomitant and relevant legal
systems started developing in British India since at least
from the middle of last century.

Negotiation Process:
Union-management relations
provide an additional challenge for the human resource
function. The necessity of working through these problems
is just as much a part of the managerial responsibility as is
the development of budgets, work schedules and issuing of
orders. While negotiation and consultation are time-
consuming, frequently frustrating, and certainly sometimes
even threatening, they require some of the same personnel
skills and persistence that are necessary to carryout other
organisational functions. These responsibilities cannot be
avoided, nor would it be healthy for the organization to
engage in such an exercise of avoidance. What is
negotiation? It is the process by which at least two parties
with essentially different perceptions, needs, motivations
try to agree on a common ground of mutual interest. All
human interactions are characterized by some kind of
negotiation between (or among) people trying to give to
and take from one another. Negotiation exists when
somebody is trying to influence another person through the
use of various media. The process of negotiations may be
broadly divided into three stages: analysis, planning and
discussion.

Analysis:
Management may carryout a survey of
comparable companies doing similar business, to gather
information on the prevailing trends and levels of salaries
and benefits given to the non-management or unionized
staff. The objective and results of such surveys should be to
provide meaningful data in order to justify the time taken
and effort made in completion the task. The result should
reflect the surveying company's position vis-à-vis other
companies as accurately as possible in order to draw
realistic conclusions and direction for the ensuing process
of planning and discussions.

Planning:
Management has to take an informed
decision as to where does it want to progress from the
existing position. Whether the traditional pattern of
increases in the cash package is to be maintained or a
change is to be brought about in order to compete with
other companies particularly in view of the changing
market trends. Following are some of the aspects, which
are discussed and agreed during the planning stage.
Impact of proposed agreement cash package on the
company, demands and pressure points expected from the
union and how will they be tackled by management,
composition of management negotiation team,
management's strategy if things do not move forward is
planned, or if the negotiations fail, actual rate of inflation,
industrial relations situation and the general economy in the
country and government's labour policy etc.
Practical study
History of Telenor:
Telenor Pakistan’s parent organization Norwegian
Telegraph Administration was founded in 1855 as a
telegraph services provider. In 1969 The Norwegian
Telegraph Administration changed its name to Norwegian
Telecommunications.
In 1995 Norwegian Telecommunications changed its name
to Telenor. Today Telenor is an international provider of
high quality telecommunications, data and media
communication services. It ranks as world’s 7th largest
mobile operator with a total of 164 million subscribers in its
mobile operations.
Telenor Pakistan:
Telenor Pakistan launched its operations in March 2005 at
that time it was the largest direct European investment in
Pakistan. It is a leading telecom operator of Pakistan.
Telenor Pakistan is the fastest growing network in Pakistan.
It provides coverage in many remote areas.
Telenor Pakistan has 2500 direct and 25000-plus indirect
employees. It has a network of twenty three sales and
service centers, more than 200 franchisees and about
100,000 retail outlets

Mission:
“Telenor’s primary goal is to create greater value for our
shareholders,
customers, employees and partners, and for society in
general”
Vision:
Telenor’s vision is simple: “We're here to help”
Core Values:
• Telenor has four core values
• Keep Promises
• Make it Easy
• Be Inspiring
• Be Respectful

Collective Bargaining:
In Telenor the line managers of
the concerned department are responsible to raise the voice
of their subordinates and they act as arepresentative
whenever the issues of collective bargaining are needed.
Responsibility to Bargain collectively:
Telenor
recognizes the right to freedom of association and
collective bargaining in mature labor environments.
In such environments Telenor allows its employees to
freely elect representatives among the employees,
unless this would represent a breach of national laws
and regulations.

SWOT Analysis:
Strengths:
• In Telenor all the matters concerning the employee’s issues
with job or in terms of relations with the corporate are all
written in the company policies and procedures in a
structured manner.
• There is a comprehensive demarcation between the moral
and legal codes of conduct which is communicated to the
employees at induction program and also written in the
employee portal.
• Employee relation and moral guidelines are an integral part
of the corporate culture of Telenor.
• Employee rights at work place that are promulgated by the
law of the land and the rights that are prevailed in the
corporate charters both are implemented in Telenor.
• In Telenor, employer relation with employees is highly
feasible, accessible and encouraged at all levels of
organization hierarchy.
 • The special arrangement by the Telenor as the “Regulatory
and Interconnection Strategy Department” acts as a precedent
to handle corporate legal affairs.
Weaknesses:
• In Telenor, due to the rigid shift structures, social integration
among employees is not of satisfactory level. Due to the non
unionization culture of Telenor the employee
• representativeness is not appropriate.
• Opportunities:
• By working in Telenor an employee can have an exposure of
multinational organization where the legal and employee
rights issues are fully intact.
• The egalitarian culture prevailing in Telenor gives an
insight to its employees a transparent and fair
treatment through which an employee can fully utilize
his abilities

Opportunities:
• Favorable Macroeconomic indicators
• Low cellular market penetration
• Inefficiency & poor performance of other mobile
networks
• Co branding e.g. Ufone with ABN AMRO
• Strategic Alliances & Infrastructure Sharing Facilities
• E-commerce usage.
• Mobile Number Portability
• International Mobile Equipment Identity System

Threats:
• Rolling Customers
 • Privatizations & deregulations- increased
competitions.
• Grey Traffic
• MNP mobile number portability
• Wireless technology at boom
• Public pay phones & calling cards usage where
network is not available
• Propagandas attacking brand image
Conclusion & recommendations:
Association and the Right to Collective Bargaining the supplier
shall ensure and ... proportion the workforce agree, collective
bargaining of employees and/or workers ... to freedom of
association and collective bargaining are restricted under national
law.
The traditional collective bargaining process has served the region
well and remains indispensable to the maintenance of good
industrial relations practices. However, the prevailing scope of
collective bargaining as a system of management-labor relations
cannot adequately address many of the challenges faced by
Caribbean enterprises in new era of globalization .The study
revealed that it is the common view of trade unionists, human
resource managers and labor administrators that the prevailing
approach to collective bargaining does not fully address all issues
of common concern to management and workers. In particular, the
agenda does not adequately address the issue of competitiveness of
companies, human resource development and company policy
decisions affecting workers.
References:
• Herman, Jerry J. "With Collaborative Bargaining, You
Work with the Union--Not Against It." The American School
Board Journal (1985)
Smith, Patricia; and Russell Baker. "An Alternative Form of
Collective Bargaining." Phi Delta Kappan 67 (1986)