UNIVERSITY OF WALES INSTITUTE, CARDIFF

Contemporary Issues in Human

Resource Management
Assignment-1
Safiuddin Ahmed Shaikat
ID# 0045OTOT1008

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Executive summary

This assignment is about the advantages of flexible attitude during collective bargaining

negotiation for both the union and the management. The assignment also focuses on the

disadvantages of rigid stand in a negotiation. In the discussion and analysis the two types of

collective bargaining process are described and the steps of negotiation process are shown.

Advantages of flexible attitude are discussed along with the examples and disadvantages of rigid

stand are also discussed along with examples to support the topic. The role of union and the

management are briefly discussed and a critical reflection is done to support the findings about

the topic.

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Contents
Executive summary ................................................................................................................................... 2
1.0 Introduction ........................................................................................................................................ 4
1.1 Collective bargaining ........................................................................................................................... 4
2.0 Discussion and Analysis....................................................................................................................... 6
2.1 Centralised collective bargaining ........................................................................................................ 6
2.2 Decentralised collective bargaining .................................................................................................... 7
3.0 Negotiation process ............................................................................................................................ 8
4.0 Good faith bargaining ....................................................................................................................... 10
5.0 Benefits of flexible attitudes towards collective bargaining ............................................................. 11
5.1 Standardizing the terms and conditions through flexible attitude................................................... 13
5.2 Flexible attitude enhancing productivity and performance ............................................................. 14
6.0 Reasons for pursing Rigid Stand during the Negotiation Process..................................................... 14
7.0 Disadvantages of rigid stand during negotiation process ................................................................. 15
7.1 Other reasons for disputes ............................................................................................................... 16
8.0 Role of trade unions and management ............................................................................................ 18
9.0 Trade union and the role of management around the world........................................................... 20
10. Critical reflection ............................................................................................................................... 20
11. Conclusion and Recommendation .................................................................................................... 21
12. References ........................................................................................................................................ 23
13. Bibliography ...................................................................................................................................... 28
14. Appendices ........................................................................................................................................ 32

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1.0 Introduction
One of the vital ways behind the achievement or failure of all organisation will be the

effectiveness of the organisations human resources (Mondy and Mondy, 2009). To be able to

improve the level of safety and comfort in an organisation, workers build a trade union, Vall

(2010) states an organisation consisting primarily of the workers who united with each other to

attain a typical objective and market their curiosity by collective actions. A trade union is

basically “an organisation of workers” where everyone comes together, to make sure success of

distinctive objectives and purposes which may represent variant types such as working

conditions. This is actually the way by which a union has the tendency to signify the union

members and contracts of labour are negotiated, also generally known as “collective-bargaining”

with the management. Collective bargaining tends to incorporate negotiations concerning the

subsequent elements and it is “binding” in between members of the union and employers.

1.1 Collective bargaining

Wilken (2008) mentioned that collective bargaining process is the procedure by which a

representative with the workers along with a representative with the employers talk about to set

up the terms and circumstances under which labour will probably be engaged in a job. This is a

procedure of cooperation in between the unions and employers. It concerns the requisites and

circumstances of the workers who are been employed, and the rights and duties of trade unions

are clarified to them (Caisley, 2007). Whereas Sims (2007) says that workers unite with each

other to build a union and choose representatives who will negotiate with the representative from

the employers’ and talk about the guidelines, working hours, wages, operating conditions and

advantages in the workplace. They deliver ahead their wants and also the employers’ negotiate

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till each event arrives to typical conditions (Sharma, 2009). The conditions on which the events

are agreed is place on the agreement and approved. This agreement is known as the collective

bargaining agreement. In many years business organisations have more compensated under

minimal interest in the direction of the affordability and social needs of their workers.

Furthermore, they accepted more authority within the circumstances of employment relations

and to be able to run profitably as being a industrial entity, a lot of the strategies by management

reflect abusing of power and authority. In accordance to Shen (2008) numerous instances of

violence for the rights of the workers, labour disputes and so on exist because of misusing the

workers. It's because of this kind of unethical manner of organisations that several labour

conflicts took place, and collective-bargaining has more and more turn out to be an observable

reality. In Japan most unions are plainly enterprise-based, organize a significant quantity of

workers inside the organisation beneath center management, and therefore are generally the only

union inside the organisation. Within the United Kingdom and Australia, typically there

continues to be a combination of craft/occupational, industrial, and common unions, with

complex authority in the workplace. Nevertheless, lately, there continues to be a rising pattern in

the direction of mergers, much more open unions, and much more single unionism inside the

workplace (Benson and Gospel, 2008) (Ex-1). Within the Austrian steel business collective

bargaining is carried out at sectoral level, as a part of the general metalworking settlement,

whereas within the United Kingdom steel business collective bargaining happens exclusively in

the level of person steel plants. (Beguin and Carley, 2005) (Ex-2) (Collective bargaining issues

are listed in appendix A)

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2.0 Discussion and Analysis

There are two types of collective bargaining. They are centralised collective bargaining and the

other one is known as decentralised collective bargaining.

Fig 1: types of collective bargaining

2.1 Centralised collective bargaining

Fig 2: centralised collective bargaining

According to Delpo (2009) centralised collective bargaining happens whenever a group of

employers along with a trade union negotiate a collective contract, supporting for joint

negotiations. Based on Caisley (2007) centralised collective bargain with one or even more

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unions who signify the workers of these employers. Nevertheless, it could also happen in

between a group of businesses or in the nationwide or regional level of an organisation. In

Ireland centralised collective bargaining via nationwide agreements have already been supported

by an prolonged time period of industrial serenity which has created noteworthy results, because

within the third-quarter of 2007, there have been no days misplaced to industrial disputes.

(Tansey, 2007) (Ex-3). Toyota nine years back signed a union agreement using the

Amalgamated Engineering and Electrical Union (AEEU) through the starting of manufacturing

at its Buraston plant in Derbyshire and also the subsequent absence of industrial unrest

encouraged the Honda to join into a contract in the year 2001 using the AEEU in their plant

located at Swindon. (Monetary Occasions, 2001) (Ex-4). In 2006, the collective agreement of the

Volkswagen Company was idle, the organisation threatened to transfer manufacturing from the

Polo model to its Bratislava plant from its plant in Pamplona, because it had formerly used the

model SEAT Ibiza. The organization did this to weaken the position of the union. (Artiles, 2006)

(Ex-5)

2.2 Decentralised collective bargaining

Fig 3: Decentralised collective bargaining

Howell (2007) says decentralised collective bargaining occurs when collective bargaining moves

through the macro level which is multi-employer bargaining in the direction of the micro level

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which is enterprise-bargaining. Whereas Auer, Ernst and Berg (2006) recommend that

decentralised collective bargaining happens once the collective bargaining moves from

centralised collective bargaining to nearby level of collective bargaining. Peru includes a

decentralised collective bargaining program. Peru’s independent union motion is acknowledged

to higher state participation in addition to the dominance of little companies (Howell, 2007) (Ex-

6). Chile also includes a decentralised collective bargaining program. Within this nation, firms

and unions have predominant level of bargaining. Chile’s program is extremely regulated in

procedure and it permits significant autonomy from the events in immediate negotiations (Cook,

2007). (Ex-7) (other types of bargaining are listed in appendix B)

3.0 Negotiation process

Fig 4: Steps of negotiation process

Prepare: This stage entails composition of the negotiation group. The negotiation group ought to

include representatives of the union and the management with sufficient understanding and

abilities for negotiation. Within this stage representatives of union and management inspect their

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very own scenario to develop the problem they think will probably be most significant. The

primary thing to carry out would be to figure out whether or not there's really any cause to

negotiate at all. Circumstances and understanding of operations, manufacturing norms along with

other related circumstances are the first things to understand before negotiation. (Noe,

Hollenbeck, Gerhart and Wright, 2003)

Discuss: In this step, the parties determine the ground rules which will provide guidelines for the

negotiations. A procedure nicely started is fifty percent carried out and this really is no less

accurate just in case of collective bargaining. An atmosphere of mutual trust and understanding

can also be produced to ensure that the collective bargaining arrangement could be reached.

(Noe, Hollenbeck, Gerhart and Wright, 2003)

Propose: This stage entails the preliminary opening statements and also the feasible choices that

exist to solve them. This stage might be explained as “brainstorming.” The proposals and

viewpoint of the union and the management are listed. (Noe, Hollenbeck, Gerhart and Wright,

2003)

Bargain: Negotiation becomes very easy if perspective to solve a problem is accepted. This step

involves time when “what ifs” and “supposals” are set forward and also draft of the agreements

are done. (Noe, Hollenbeck, Gerhart and Wright, 2003)

Settlement: As soon as the parties are through using the bargaining procedure, a consensual

arrangement is reached upon wherein both the parties concur to come in a common term

concerning the issue or the problem. This stage is explained as consisting of efficient joint

implementation with the arrangement through shared visions, strategic preparing and negotiated

change. (Noe, Hollenbeck, Gerhart and Wright, 2003)

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4.0 Good faith bargaining

In accordance to Holley, Jennings and Wolters (2008), good faith bargaining basically indicates

every party should show a sincere and truthful intention to achieve a labour agreement and be

affordable within their bargaining positions, techniques and actions. Good faith represents a state

of thoughts that is hard to outline exactly. The duty to discount in good faith doesn't need a party

to achieve a settlement, concur to a particular proposal, or create a specific concession towards

the other party. However for settlement to happen, an underlying presumption in collective

bargaining prevails that concessions will usually be produced by each party. (Ex-8)

The important thing components of good faith in collective bargaining as stated by Caisley

(2007) are:

 There should be truthful and open conduct in between the parties

 The bargaining should be genuine- the duty of good faith doesn't permit a party to merely

“undergo the motions”

 The parties should conclude a collective agreement unless there are genuine factors

according to affordable grounds not to do so

Within the support sector, labour expenses signify a significant proportion of complete expenses;

therefore matching workers’ numbers to consumer need are important. At Sätra Brunn, a well

being spa in Sweden, the management and also the nearby union have signed a collective

bargaining agreement, which entails substantially maximizing the level of versatility and

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growing the affect that workers can exert more than their function schedules. The operating time

agreement and also the utilization of the computer-based scheduling program, has caused in

reconciling management interests and worker interests. (Ex-9) (Hammarström, 2007). Siemens

Vdo Automotive, that is component from the multinational organizations of German electronics,

signed a collective bargaining agreement with its workplace trade concerning continuous-cycle

manufacturing in a shift of three to eight hours, which incorporated a decline within the complete

weekly operating time, the recruitment of sixteen workers were taken on the basis of open-ended

contracts, along with a monthly gross expense rise. The organisation benefitted from productivity

gains whilst workers benefitted through the reduction in weekly operating time and elevated

wages. (Ex-10) (Tapia and Telljohan, 2007). GE unions thought the business’s communication

campaign directed at bargaining unit members represented a work by management to undermine

the union’s legal standing because the workers bargaining agent by trying a bypass coping with

union negotiators in the bargaining table in favor of dealing directly with all the workers. (Ex-

11) (Holley, Jennings and Wolters, 2008). In July 1985 Common Motors entered into a contract

using the United Auto Workers (UAW) setting forth the terms and conditions of the long term

motor vehicle facility, known as the Saturn Corporation. The contract consists of worker

participation and enhanced task safety; restructure the work area in exchange for financial

concessions from its workers. (Ex-12) (crouch, 1988).

5.0 Benefits of flexible attitudes towards collective bargaining

According to Gerhart (2007) if a company introduces flexible attitude, such changes usually

form an overlapping agreement to become part of a complete package which constitutes

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flexibility in the organisation. Wright (2003) stated that the terms and conditions of flexibility

will depend on such factors as the state of union management relations, the bargaining

environment and the nature of technology employed. The interactions between the parties in a

flexible attitude leads to team working, semi-skilled workers undertaking some craftwork and

vice versa, changes in manning levels and flexibility amongst staff grades. Jackson (1991) stated

that companies that accepted flexible agreements, the workers have been offered a variety of

benefits including a rise in wage, enhanced status and much better job security. Thus, trade

unions were forced to bargain for better conditions on the basis of making concessions allow

significant changes in the labour process. Communications Workers of America (CWA) had a

flexible negotiation scheduling with BellSouth Telecommunications. The agreement mentions

that every worker should work during 'core hours,' which cover 60% of the usual workday.

However, the beginning and ending times of every worker may vary within the schedule time

(Ex-13) (newecon.org, 2011). International Brotherhood of Electrical Workers (IBEW) achieved

a flextime policy which will allow workers to be flexible in their everyday start end times, under

the policy the workers should arrive at 6:30 am and leave the work at 6:00 pm. The policy says

that every worker should work seven and half hours daily and they must work in the core hours

which are 9-11:30 am and 12-2:30 pm (Ex-14) (newecon.org, 2011). International Brotherhood

of Electrical Workers (IBEW) and PG&E agreed regular part-time workers who works less than

40 hours a week will get the benefits such as life insurance, retirement benefits, vacation

allowance, sick leave, medical, dental and vision coverage and paid holidays (Ex-15)

(newecon.org, 2011). American Federation of State, County and Municipal Workers (AFSCME)

bargained with the State of Oregon to approve the participation job sharing fir the eligible

workers. Workers will be allowed to share a job only if the worker is in a vacation or for illness.

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The workers sharing a job will be entitled to share life insurance of a full time worker (Ex-16)

(newecon.org, 2011). Philadelphia Coca-Cola Bottling Company and Teamsters negotiated a

'flexible work week." The agreement will allow particular number of workers to work three days

a week (three consecutive 13.33 hour days), four days a week (four consecutive 10 hour days), or

a regular practice of five days a week (five consecutive 8 hour days). (Ex-17) (newecon.org,

2011)

5.1 Standardizing the terms and conditions through flexible attitude

According to Hollenbeck (2005), flexible attitude towards collective bargaining minimizes

transaction expenses by standardizing the terms and conditions of employment, it also provides a

tool of collective regulation for the employer and the workers, another benefit of flexible attitude

is that it supplements incomplete individual agreement and reduced skepticism by providing

continuous terms and conditions. A flexible attitude in collective bargaining also raises training

intensity and human capital accumulation in companies, which therefore is a major reason for the

growth of productivity. In 2004, Banca Nazionale del Lavoro (BNL) and the trade unions signed

a collective bargaining contract that centered on constant lifetime training. The contract provides

customized training measures for worker and training provide based around the expert region. A

revolutionary component from the agreement will be the introduction from the “training credit”

to be able to assure the proper of training to get a lengthier time period and also to optimize the

presence around the training program because it enhances high quality and flexibility from the

workforce by growing BNL’s competitiveness (Ex-18) (Dazzi, 2007).The fact of Denmark,

which includes a nationwide vocational training program by which the curriculum is worked out

via collective bargaining between the unions and management using the state shouldering most

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of the expenditures concerned. This professional training program continues to be an essential

institutional assistance for Danish competitiveness because it aided workers turn out to be much

more experienced. (Ex-19) (Campbell and Pederson, 2006)

5.2 Flexible attitude enhancing productivity and performance

Howell (2005) also stated that flexible attitude in collective bargaining agreement rises

cooperation along with other combined actions between the unions and companies because it

offers a mechanism for communication in between workers and organisations. A flexible attitude

results in elevated workplace participation, improve believe in and dedication in employment

relations, which outcomes in enhanced productivity and performance. Ferrari Auto, the Italian

automotive producer agreed to a collective bargaining agreement using the sectoral trade union

organisations, which launched higher versatility in operating time, produced part-time function

much more available and appealing and improved performance-related spend. This generated

elevated productivity and versatility for Ferrari, whilst in the exact same time supplied

advantages for those workers also. (Ex-20) (Tapia and Telljohan, 2007)

6.0 Reasons for pursing Rigid Stand during the Negotiation Process

According to Forashuddin (2010), trade unions and management tend to pursue rigid stand due

to the past conflicts that had taken place after a negotiation between the parties. It is also seen

that organisations that are not performing well especially economically, shuts down their

productivity or even they started layoff without any advance notice to the workers. Wage is also

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an important issue, due to the increase in expenses and for a better living workers bargain for a

rise in their wage and for which the management tend to pursue rigid stand. In the developing

countries rigid attitude are mostly seen as there is not a good relationship between the trade

union and the management (the daily star, 2010). There was a huge dispute done by the workers

of Bangladesh garments industry in 2010 as the union wanted a wage rise and the management

shut down their factories for an unpredictable time. (Ex-21) (the daily star, 2010)

7.0 Disadvantages of rigid stand during negotiation process

Narlikar (2010) recommend that deadlocks happen when there is a rigid stand taken either by the

management or by the labour union, that is the negotiations in between the employers and

workers stay nonetheless because of the lack of compromise by both party. Nevertheless

whenever a deadlock isn't resolved it produces a dispute in between the employer and also the

workers which results in lockouts or strikes (Mathis and Jackson, 2007). According to (Blanpain,

2010) lockouts happen once the management shuts down the operations with the business which

prevents union members to function. This primarily happens once the employer isn't happy

through the actions with the trade union and protests in opposition to it. The cabin crew of

British Airways union declared a strike simply because they had a dispute using the airline for

bad operating circumstances (Ex-22) (bbc.co.uk). Due to the lockouts or strikes the company has

to count a heavy loss in productivity. Lufthansa Airlines of Germany was a victim of rigid stand

negotiation, the workers went for a strike and the company had to come to an agreement to settle

down the five day strike called by Verdict Union in 2008. The strike was to increase the payment

of the workers by two percent from the middle of the year 2009. It caused the airlines over five

million Euros each day of strike (Ex-23) (bbc.co.uk). The workers of Honda manufacturing plant

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in China went for strike simply because they had been compensated reduced wages throughout

the period of inflation (Ex-24) (Barboza and Bradsher, 2010). Peter, (2009) mentioned that

Toyota manufacturing plant in Philippines sacked more than two hundred union members and

officers as well as suspended more than 64 other workers for taking part inside a nonviolent

union meeting. The workers had been signifying in front from the Division of Workers and

Employment to dispute the organisation's rejection to collectively discount using the trade union,

Toyota Motor Philippine Corporation Workers Association (TMPCWA). The employers might

perform a lockout also by which the employers closed down the operations stopping the workers

from operating. Throughout each lockouts and strikes the organisation ceases to perform leading

to financial losses (Ex-25) (Colosi and Berkeley, 2006). (types of strikes are listed in appendix

C)

7.1 Other reasons for disputes

Wages and allowance: the cost of living expense is increasing, the workers generally bargain for

higher wages to meet the expenses and to increase their standard of living. In India 20.4% of

disputes were held in 2003 for the demand of higher wages, where as in 2004 it has increased to

26.2%. (Ex-26) (the hindu business times, 2004)

Personnel and retrenchment: the personnel and retrenchment is also an important factor which

causes disputes to take place. In India disputes caused for personnel was 11.2% and for

retrenchment it was 2.2% in 2003, where as in 2003 it has been raised to 14.1% for personnel

and 2.4% for retrenchment. (Ex-27) (the hindu business times, 2004)

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Bonus, leave and working hours: bonus is an important factor for industrial disputes, 6.7% of

industrial disputes occurs every year in India for bonus. Leave and working hours are not been

an important issue for industrial disputes, even though 0.4% disputes occur every year for leave

and working hours in India. (Ex-28) (the hindu business times, 2004)

Fig 5: Unfair labour practices done by employers. (Noe, Hollenbeck, Gerhart and Wright,

2003)

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Fig 6: Unfair labour practices done by labour unions. (Noe, Hollenbeck, Gerhart and Wright,
2003)

8.0 Role of trade unions and management

Based on Broderick and Gerhart (1997), improve in worker advantage expenses really are a main

problem for employers and it is prone to be considered an obstacle for growing competitiveness.

Labour unions effect on non-wage types of compensation can lead to each constructive and

unfavorable financial and social result. Based on Smethurst and Carter, (2009) there are two

faces of unionism, the monopoly face and the other collective voice or institutional response

face. Budd (2007) says that each predict that unionized workers may have much more generous

advantage deals than similar non-union worker, even though the financial and social effects of

those raises is dependent on whether or not the improve is because of the monopoly or

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collective-voice face. In accordance to Budd (2007) the monopoly impact of labour unions on

worker advantages states that unions increase advantages because they can utilize their

monopoly energy to extract higher compensation, such as advantages from employers. Dorey

(2009) says, evaluation with the monopoly face of unionism should face the important issue with

the supply of union monopoly energy. If unions worked in totally viable markets, and when all

they did had been to boost wages over aggressive ranges, unions would possess an extremely

hard time current, for organized companies would basically have greater expenses of

manufacturing than other companies. The monopoly face of unions may be observed among the

workers of Common Motors (GM), who bargained a rule which permitted some workers to

depart having a full-day’s spend following fifty percent day’s function (Ex-29) (Mathis and

Jackson, 2007). Based on a survey by Amicus (bbc.co.uk) the monopoly face of unionism may

be observed within the motor vehicles, shipbuilding and aerospace, business within the United

Kingdom (Ex-30). According to Budd (2007) the collective-voice impact of unions on worker

advantages supports the view that unions improve advantages, because as being a democratic,

collective institution will support the preferences of typical instead of marginal workers. Typical

workers are usually presumed to need much more advantages and much less financial

compensations, because they have higher seniority and much less mobility (Budd, 2007). The

collective voice of unionism essentially customizes the method of the labour sector and,

therefore, the nature with the labour agreement. To summarize, the collective voice of unions

also mainly customizes the societal associations with the workplace (Bell, 2008). The worker

representative, from the union of Nokia, a globalised communications corporation, meets the

management twice a year to discuss problems which impact the workers (Ex-31) (Nokia, 2010).

The Russian Mining Workers Trade Union (MWTU) is a properly controlled union in Russia.

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The domestic unions handle to obtain via contracts that provide the workers greater requirements

than are now being set within the central contracts. The collective voice effect from the union

enabled them to possess enhanced industrial relationship. (Ex-32) (Daniels and Mcllroy, 2009).

9.0 Trade union and the role of management around the world

Collective bargaining is there all around the world where industrialization has taken place. The

trade union and the management come in common terms for the betterment of the industry and as

well as betterment of the workers. In many developed countries, such as in Europe, the presence

of powerful trade unions and employers' organisations have resulted in lots of important contract

becoming concluded in the industry level or nationwide, increased by some enterprise level

bargaining (Ex-33) (Mattera, 2010). Within the USA, nevertheless, bargaining in the enterprise

level continues to be the much more typical apply, apart from in particular sectors like coal,

steel, trucking and building (Ex-34) (Schloesser, 2009). National level bargaining in Japan

continues to be the exception, and it's been increased by a big quantity of enterprise level

bargaining, aided partially by the structures of the union that are enterprise-based (Ex-35)

(Colosi and Berkeley, 2006). In lots of Asian nations low rates of unionization have militated in

opposition to nationwide and organisation level bargaining, and enterprise level bargaining

continues to be much more regular. (Ex-36) (Dessler, 2008).

10. Critical reflection

The literature review is done above on the advantageous perspective of flexible collective

bargaining negotiation and the disadvantages of rigid stand during collective bargaining

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negotiation between the trade unions and the management. After doing the research it can be

seen that flexible attitude during negotiation process benefitted both the workers and the

employers. Collective bargaining negotiations help the unions and the management to build up a

relationship and work efficiently as they have agreed to a common terms and conditions. A

flexible collective bargaining helps an organisation to standardize the terms and condition and

also enhances the performance and productivity. During a bargaining process if a rigid stand is

taken, the above findings has shown that the workers go for a strike or the management shut

down the productivity and layoff the workers which are not beneficial for both the parties.

Neither the unions nor the management want to take a rigid stand during a collective bargaining

negotiation. A flexible attitude always create a healthy relationship between the trade unions and

the management where as a rigid stand leads to conflicts and create a rivalry between the

management and the union members because they both sticks to their own opinions. After all

the findings it is easy to say that it is always advantageous for both the union and the

management to remain flexible during collective bargaining negotiation.

11. Conclusion and Recommendation

Unions are a source by which the workers get strength in collective bargaining process where

they are able to communicate their problems to the management. Through a collective bargaining

agreement the unions achieve their rights regally. In a collective bargaining process flexibility is

very much advantageous where as a rigid stand can be fatal. The above literature shows that a

flexible collective bargaining negotiation benefitted both the unions and the organisation by

increasing efficiency and productivity, whereas a rigid stand has lead to strike or lockouts. It can

be conclude that it is always wise to remain flexible during a collective bargaining process. It can

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be recommended that the management should arrange a collective bargaining negotiation twice a

year to hear the problems of the workers and what they are willing to get from the organisation in

near future. It will build a good relationship between the union and the management if frequent

negotiation takes place as they both will know each other’s problem and will work for the

beneficial for both the parties. Frequent collective bargaining negotiation is more likely for both

the parties to remain flexible.

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12. References

Books

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Monopoly Power, Collective Voice, and Fascilitation”, in Bennet, J.T. and Kaufman, B.E. (eds),

What do unions do?: a twenty-year perspective, New Jersey: Transaction Publishers”

 “Cooke, W.N. (2003) Multinational companies and global human resource strategies. California:

Greenwood Publishing Group”

 “Decenzo, D.A. and Robbins, S.P. Human Resource Management. 7th edn. Singapore: John Wiley

& Sons (Asia) Pte Ltd”

 “Dessler, G. (2005) Human Resource Management. 10th edn. New Jersey: Pearson Prentice Hall.”

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Resource Management. 7th Edition. McGraw-Hill Irwin.”

 “Sims, R.R. (2007) Human Resource Management: contemporary issues, challenges and

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 “Howell, C. (2005) Trade Unions and the State: The Construction of Industrial Relations

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 “Sims, R.R. (2002) Organizational success through effective human resources management.

California: Greenwood Publishing Group”

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 Journals and Articles

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performance: a review”, Industrial Relations Journal, vol. 39, no. 4, pp. 258-295”

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 “Card, D. and De La Rica, S. (2006) “Firm-Level Contracting and the Structure of Wages in

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 “Gatchalian, J.C. (1998) “Principled negotiations – a key to successful collective bargaining”,

Management Decisions, vol. 36, no. 4, pp. 222-225”

 “Gerlach, K, and Stephan, G (2005) “Wage Distributions by Wage Setting”

 “Regime.” IAB Discussion Paper No. 9/2005 (April). Nuremberg, Germany: Institute for

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 “Plasman, R. and Rusinek,M. and Rycx, F. (2007)” “Wages and the Bargaining Regime Under

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 “European Journal of Industrial Relations, vol. 13, no. 2, pp. 161-180.”

 Symeonidis, G. (2008) “Downstream Competition, Bargaining, and Welfare.”, “Journal of

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 Economics & Management Strategy, vol. 17 no. 1, pp 247-270. [Online] Buiness Source Premier

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(Accessed 25 April 2009)”

 “Rose, E. and Woolley, T. (1992) “Shifting sands? trade unions and productivity at Rover Cars”,

Industrial Relations Journal, vol. 23, no. 4, [Online] Business Source Premier. Available at

“http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=4671046&site=ehost-live

(Accessed 15 April 2009)”

 Tansey, P. (2007) “Wanted: new model for pay agreements”’

 “Irish Times (Dublin), 30 Nov, p. 4. [Online] NewsUK. Available at

http://gateway.proquest.com/openurl?ctx_ver=Z39.88-

2003&res_dat=xri:pqil:res_ver=0.2&res_id=xri:newsuk&rft_id=xri:newsuk:newsart:1390770541

(Accessed 25 April 2009)”

 “The Economist (2001) “Business: Getting organised, with western help; Asian trade unions” “1

Jan, p. 77, [Online] NewsUK. Available at http://gateway.proquest.com/openurl?ctx_ver=Z39.88-

2003&res_dat=xri:pqil:res_ver=0.2&res_id=xri:newsuk&rft_id=xri:newsuk:newsart:93286775

(Accessed 25 April 2009)”

 “The Economist (2008) “Business: Membership required; Trade unions in China”, “2 Aug, p. n/a.

[Online] NewsUK. Available at http://gateway.proquest.com/openurl?ctx_ver=Z39.88-

2003&res_dat=xri:pqil:res_ver=0.2&res_id=xri:newsuk&rft_id=xri:newsuk:newsart:1527174871

(Accessed 25 April 2009)”

 “Zagelmeyer, S. (2005) 'The employer's perspective on collective bargaining centralization: an

analytical framework', The International Journal of Human Resource Management, vol. 16, no.

25
 9, pp. 1623 — 1639 [Online] Informaworld Database. Available at

http://dx.doi.org/10.1080/09585190500239150 (Accessed 15 April 2009)”

Newspaper

 The daily star

 The hindu business times

Websites

 “Campbell J.L. and Pederson O.K. “Institutional Competitiveness in the Global Economy:

Denmark and the United States” Available at http://brie.berkeley.edu/conf/DK-

USA%20Competitiveness-11.pdf (Accessed 25 April 2009)”

 “Chivu, L (2008) “Pay deal follows major strike at Automobile Dacia”, Available at

http://www.eurofound.europa.eu/eiro/2008/04/articles/ro0804029i.htm (Accessed 25 April

2009)”

 “Dazzi, D. (2007) “BNL, Italy: Fostering employability” Available at

http://www.eurofound.europa.eu/areas/qualityofwork/betterjobs/cases/it01bnl.htm”

 “(2010) Collective pay bargaining on rise, BBC NEWS,

[URL:http://news.bbc.co.uk/2/hi/business/4613469.stm] (accessed: 19 Dec 2010)”

 “(2010) Nokia – Consultation and communication CR Report 2007,

[URL:http://www.nokia.com/corporate-responsibility/cr-report-

2007/employees/consultation-and-communication] (accessed: 19 Dec 2010)”

26
 “Eurofound (2007) Right of collective bargaining. Available at

http://www.eurofound.europa.eu/areas/industrialrelations/dictionary/definitions/rightofcollectiveb

argaining.htm (Accessed 25 April 2009)”

 “Hassett, K. (2009) Auto union drove GM to trouble Available at

http://marketplace.publicradio.org/display/web/2009/03/30/pm_auto_unions/ (Accessed 25 April

2009)”

 “Tapia, M. and Telljohan, V. (2007) “Ferrari Auto, Italy: Towards a balanced flexibility”

Available at http://www.eurofound.europa.eu/areas/qualityofwork/betterjobs/cases/it05ferrari.htm

(Accessed 12 April 2009)”

 “Tapia, M. and Telljohan, V. (2007a) Siemens Vdo Automotive, Italy: Towards a balanced

flexibility”, Available at

http://www.eurofound.europa.eu/areas/qualityofwork/betterjobs/cases/it05siemens.htm(Accessed

12 April 2009)”

27
13. Bibliography

 “Budd, J.W. (2007) “The Effect of Unions on Employee Benefits and Non-Wage Compensation:

Monopoly Power, Collective Voice, and Fascilitation”, in Bennet, J.T. and Kaufman, B.E. (eds),

What do unions do?: a twenty-year perspective, New Jersey: Transaction Publishers”

 “Cooke, W.N. (2003) Multinational companies and global human resource strategies. California:

Greenwood Publishing Group”

 “Decenzo, D.A. and Robbins, S.P. Human Resource Management. 7th edn. Singapore: John Wiley

& Sons (Asia) Pte Ltd”

 “Dessler, G. (2005) Human Resource Management. 10th edn. New Jersey: Pearson Prentice Hall.

 Noe, R.,Noe, R.A.,Hollenbeck, J., Gerhart, B. and Wright, P.M. (2009) Human Resource

Management. 7th Edition. McGraw-Hill Irwin.”

 “Sims, R.R. (2007) Human Resource Management: contemporary issues, challenges and

opportunities. IAP.”

 “Howell, C. (2005) Trade Unions and the State: The Construction of Industrial Relations

Institutions in Britain, 1890-2000 New Jersey: Princeton University Press”

 “Sims, R.R. (2002) Organizational success through effective human resources management.

California: Greenwood Publishing Group”

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 “Aidt, T.S. and Tzannatos, Z. (2008) “Trade unions, collective bargaining and macroeconomic

performance: a review”, Industrial Relations Journal, vol. 39, no. 4, pp. 258-295”

 “Benson, J and Gospel, H (2008)'The emergent enterprise union? A conceptual and comparative

analysis',The International Journal of Human Resource Management, vol.19, no. 7, pp.1365 —

1382”

 “[Online] Informaworld. Available at http://dx.doi.org/10.1080/09585190802110281 (Accessed 25

April 2009)”

 “Card, D. and De La Rica, S. (2006) “Firm-Level Contracting and the Structure of Wages in

Spain.” Industrial and Labour Relations Review vol. 59, no 4, pp. 573-592.”

 “Farndale, E. and Brewster, C. and Poutsma, E. (2008) 'Coordinated vs. liberal market HRM: the

impact of institutionalization on multinational firms',The International Journal of Human

Resource Management, vol. 19, no. 11,pp. 2004 — 2023. [Online] Informaworld. Available at

http://dx.doi.org/10.1080/09585190802404247”

 “Financial Times (2001) “Trade unionists hail Honda recognition vote”, 11 Dec, p. 1. [Online]

NewsUK. Available at http://gateway.proquest.com/openurl?ctx_ver=Z39.88-

2003&res_dat=xri:pqil:res_ver=0.2&res_id=xri:newsuk&rft_id=xri:newsuk:newsart:94262429”

 “Gatchalian, J.C. (1998) “Principled negotiations – a key to successful collective bargaining”,

Management Decisions, vol. 36, no. 4, pp. 222-225”

 “Gerlach, K, and Stephan, G (2005) “Wage Distributions by Wage Setting Regime.” IAB

Discussion Paper No. 9/2005 (April). Nuremberg, Germany: Institute for Employment Research.”

 “Kohn, K. and Lembcke, A. (2007) “Wage Distributions by Bargaining Regime: Lined Employer-

Employee Data Evidence from Germany.” pp. 247-261.”

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 “Milne, R. and Williamson, H (2006) “Selective bargaining: German companies are driving a

hidden revolution in labour flexibility”, Financial Times (London), January 06 . [Online]

NewsUK. Available at http://gateway.proquest.com/openurl?ctx_ver=Z39.88-

2003&res_dat=xri:pqil:res_ver=0.2&res_id=xri:newsuk&rft_id=xri:newsuk:newsart:958638141

(Accessed 25 April 2009)”

 “Plasman, R. and Rusinek,M. and Rycx, F. (2007) “Wages and the Bargaining Regime Under

Multi-Level Bargaining: Belgium, Denmark and Spain.”

 “European Journal of Industrial Relations, vol. 13, no. 2, pp. 161-180.”

 “Symeonidis, G. (2008) “Downstream Competition, Bargaining, and Welfare.”, Journal of

Economics & Management Strategy, vol. 17 no. 1, pp 247-270. [Online] Buiness Source Premier

Available at

http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=28651789&site=bsi-live

(Accessed 25 April 2009)”

 “Rose, E. and Woolley, T. (1992) “Shifting sands? trade unions and productivity at Rover Cars”,

Industrial Relations Journal, vol. 23, no. 4, [Online] Business Source Premier. Available at

 http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=4671046&site=ehost-live

(Accessed 15 April 2009)”

 “Tansey, P. (2007) “Wanted: new model for pay agreements”

 “Irish Times (Dublin), 30 Nov, p. 4. [Online] NewsUK. Available at

http://gateway.proquest.com/openurl?ctx_ver=Z39.88-

2003&res_dat=xri:pqil:res_ver=0.2&res_id=xri:newsuk&rft_id=xri:newsuk:newsart:1390770541

(Accessed 25 April 2009)”

30
 “The Economist (2001) “Business: Getting organised, with western help; Asian trade unions” 1

Jan, p. 77, [Online] NewsUK. Available at http://gateway.proquest.com/openurl?ctx_ver=Z39.88-

2003&res_dat=xri:pqil:res_ver=0.2&res_id=xri:newsuk&rft_id=xri:newsuk:newsart:93286775

(Accessed 25 April 2009)”

 “The Economist (2008) “Business: Membership required; Trade unions in China”, 2 Aug, p. n/a.

[Online] NewsUK. Available athttp://gateway.proquest.com/openurl?ctx_ver=Z39.88-

2003&res_dat=xri:pqil:res_ver=0.2&res_id=xri:newsuk&rft_id=xri:newsuk:newsart:1527174871

(Accessed 25 April 2009)”

 “Zagelmeyer, S. (2005) 'The employer's perspective on collective bargaining centralization: an

analytical framework', The International Journal of Human Resource Management, vol. 16, no.

9, pp. 1623 — 1639 [Online] Informaworld Database. Available at

http://dx.doi.org/10.1080/09585190500239150 (Accessed 15 April 2009)”

 The daily star

 The hindu business times

 “Campbell J.L. and Pederson O.K. “Institutional Competitiveness in the Global Economy:

Denmark and the United States” Available at http://brie.berkeley.edu/conf/DK-

USA%20Competitiveness-11.pdf (Accessed 25 April 2009)”

 “Chivu, L (2008) “Pay deal follows major strike at Automobile Dacia”, Available at

http://www.eurofound.europa.eu/eiro/2008/04/articles/ro0804029i.htm (Accessed 25 April

2009)”

 “Dazzi, D. (2007) “BNL, Italy: Fostering employability” Available at

http://www.eurofound.europa.eu/areas/qualityofwork/betterjobs/cases/it01bnl.htm”

31
  “(2010) Collective pay bargaining on rise, BBC NEWS,

[URL:http://news.bbc.co.uk/2/hi/business/4613469.stm] (accessed: 19 Dec 2010)”

 “(2010) Nokia – Consultation and communication CR Report 2007,

[URL:http://www.nokia.com/corporate-responsibility/cr-report-

2007/employees/consultation-and-communication] (accessed: 19 Dec 2010)”

 “Eurofound (2007) Right of collective bargaining. Available at

http://www.eurofound.europa.eu/areas/industrialrelations/dictionary/definitions/rightofcollectiveb

argaining.htm (Accessed 25 April 2009)”

 “Hassett, K. (2009) Auto union drove GM to trouble Available at

http://marketplace.publicradio.org/display/web/2009/03/30/pm_auto_unions/ (Accessed 25 April

2009)”

 “Tapia, M. and Telljohan, V. (2007) “Ferrari Auto, Italy: Towards a balanced flexibility”

Available at http://www.eurofound.europa.eu/areas/qualityofwork/betterjobs/cases/it05ferrari.htm

(Accessed 12 April 2009)”

 “Tapia, M. and Telljohan, V. (2007a) Siemens Vdo Automotive, Italy: Towards a balanced

flexibility”,Availableathttp://www.eurofound.europa.eu/areas/qualityofwork/betterjobs/cases/it05

siemens.htm(Accessed 12 April 2009)”

14. Appendices
Appendix A: Collective Bargaining issues

“Carrell and Heavrin (2009) stated that variety of issues may be addressed throughout collective

bargaining. Bargaining issues are defined in three approaches such as mandatory, permissible

and illegal.”

32
 "Permissible issues: - Torrington, Hall,
"Mandatory issues: - Dessler (2008)
and Taylor (2008) stated that collective
stated that collective bargaining issues "Illegal issues: - Sims (2007) stated that
bargaining issues which are neither
which are acknowledged by labor laws collective bargaining issues which are
illegal nor mandatory are referred to as
or a court choice as topic to bargaining forbidden by law and would need both
permissible issues. They turn out to be
is called mandatory issues. If any from party to consider illegal action are
part of negotiations only via the joint
the party demands for that issue within referred to as illegal issues. For
agreement of each management and
this class to become topic to example a clause agreeing to employ
union. Neither party can force another
bargaining, then that should consider union members solely could be illegal
to discuss more than permissible
location. Mandatory issues relate to inside a right-to-work state."
issues. Advantages for retirees may be
wages."
an example."

Fig: collective bargaining issues

Appendix B: Other types of bargaining

“Walton and McKersie (2003) suggested that there are other types of bargaining apart from

centralized and decentralized. They are: distributive bargaining, integrative bargaining,

attitudinal structuring, and intraorganisational bargaining.”

“Distributive bargaining focuses on dividing a fixed-economic “pie” between the two sides. For

example (8): in case of wage increase the union gets a larger share of the pie and the

management a smaller share. It is a win-lose situation. Walton and McKersie (2003)”

“Integrative bargaining is the part of the labour-management negotiation process that seeks

solutions beneficial to both sides. For example (9): if management needs to reduce labour costs,

they could reach an agreement with the union to avoid layoffs in return for the union agreeing to

changes in work rules that might enhance productivity (Richard, 2003).”

33
“Attitudinal structuring is the aspect of the labour-management negotiation process that refers to

the relationship and level of trust between the negotiators. For example (10): the union may be

reluctant to agree to productivity enhancing work rule changes to enhance job security if, in the

past, it has made similar concessions but believes that management did not stick to its assurance

of greater job security. Thus the long-term relationship between the two parties can have

important impact on negotiations and their outcomes (Walton and McKersie, 2003).”

“Intraorganizational bargaining is the part of the labour-management negotiation process that

focuses on the conflicting objectives of factions within labour and management. For example

(11): high seniority workers, who are least likely to be laid off, may be more willing to accept a

contract that has layoffs, whereas less senior workers would likely feel very differently. So the

negotiators and union leaders must simultaneously satisfy both the management side and their

own internal constituencies (Robert, 2003).”

Appendix C: types of strike

“Meiners, Ringleb and Edwards (2008) have mentioned about five kinds of strike they're:”

“Financial strikes: it occurs once the events fall short to achieve contract through collective

bargaining. Unfair labor practice strikes: it occurs to protest illegal conduct through the

employer.”

“Wildcat strikes: it occurs throughout the phrase of the agreement.”

“Jurisdictional strikes: it occurs when a single union’s members stroll out to force the employer

to assign function to them rather than to an additional union.”

34
“Sympathy strikes: it occurs when a single union strikes in assistance with the strike of an

additiona

35