Beruflich Dokumente
Kultur Dokumente
ROLL - 2007
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ACKNOWLEDGEMENT
All praises to Almighty , the most Gracious, the most Beneficent and the most Merciful, who
I feel great pleasure in expressing my since gratitude to my teacher, for her guidance and
topic
Management for providing me all relative information, guidance and support to compile the
I will keep my hopes alive for the success of given task to submit this report to my honorable
teacher , whose guidance; support and encouragement enable me to complete this assignment.
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The objectives of the study cannot be overemphasized .The main
objectives are ;
1. To know what is collective bargaining and the process
involved in it.
2. To emphasize upon the importance of collective bargaining
in industrial dispute in an organization.
HYPOTHESIS
The researcher is employed in the use of books and internet
materials in order to study over the topic. The researcher also
explained in the project on how the method used to gather
data intends to emphasize that collective bargaining is an
important tool in resolving industrial disputes.
SOURCES OF DATA
The researcher will be relying on both primary and secondary
sources to complete the project.
1.Primary sources : Books
2. Secondary sources : Material available on the internet
CONTENTS:
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Title page…...………………………………………………………………………… 1
Acknowledgement………………………………………………………….. ……. 2
Contents...……………………………………………. …………………………….. 4
Introduction……………………………………………………..…………………… 17
Conclusion.……………………………………………………………………………. 24
Recommendations………………………………………………………………… 25
INTRODUCTION
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Collective bargaining generally includes negotiations between the two parties
agreements. Procedural agreements deal with the relationship between workers and
disputes.
and discipline. Frequently, procedural agreements are put into the company rule
entitlements, hours of work, etc. In many companies, agreements have a fixed time
scale and a collective bargaining process will review the procedural agreement
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The collective bargaining process comprises of five core steps:
1. Prepare: This phase involves composition of a negotiation team. The
negotiation team should consist of representatives of both the parties with adequate
knowledge and skills for negotiation. In this phase both the employer’s
representatives and the union examine their own situation in order to develop the
issues that they believe will be most important. The first thing to be done is to
required.
2. Discuss: Here, the parties decide the ground rules that will guide the
negotiations. A process well begun is half done and this is no less true in case of
3. Propose: This phase involves the initial opening statements and the possible
options that exist to resolve them. In a word, this phase could be described as
‘brainstorming’. The exchange of messages takes place and opinion of both the
parties is sought.
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4. Bargain: negotiations are easy if a problem solving attitude is adopted. This
stage comprises the time when ‘what ifs’ and ‘supposals’ are set forth and the
5. Settlement: Once the parties are through with the bargaining process, a
consensual agreement is reached upon wherein both the parties agree to a common
decision regarding the problem or the issue. This stage is described as consisting of
Distributive bargaining
Integrative bargaining
Attitudinal restructuring
Intra-organizational bargaining
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Distributive bargaining
It involves haggling over the distribution of surplus. Under it, the economic issues
like wages, salaries and bonus are discussed. In distributive bargaining, one party’s
gain is another party’s loss. This is most commonly explained in terms of a pie.
Disputants can work together to make the pie bigger, so there is enough for both of
them to have as much as they want, or they can focus on cutting the pie up, trying
Integrative bargaining
This involves negotiation of an issue on which both the parties may gain, or at least
neither party loses. For example, representatives of employer and employee sides
may bargain over the better training programmed or a better job evaluation
method. Here, both the parties are trying to make more of something. In general, it
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Attitudinal restructuring
This involves shaping and reshaping some attitudes like trust or distrust,
friendliness or hostility between labor and management. When there is a backlog
of bitterness between both the parties, attitudinal restructuring is required to
maintain smooth and harmonious industrial relations. It develops a bargaining
environment and creates trust and cooperation among the parties.
Intra-organizational bargaining
achieve consensus with the workers and management. Even within the union, there
may be differences between groups. For example, skilled workers may feel that
they are neglected or women workers may feel that their interests are not looked
after properly. Within the management also, there may be differences. Trade unions
1. It is a group process, wherein one group, representing the employers, and the
employment.
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3. Collective bargaining is a formalized process by which employers and
steps. It begins with the presentation of the charter of demands and ends
with reaching an agreement, which would serve as the basic law governing
it is flexible process and not fixed or static. Mutual trust and understanding
5. It a bipartite process. This means there are always two parties involved in
something that the other party has; labor can increase productivity and
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7. Collective bargaining tends to improve the relations between workers and
the union on the one hand and the employer on the other.
Collective bargaining includes not only negotiations between the employers and
unions but also includes the process of resolving labor-management conflicts.
Thus, collective bargaining is, essentially, a recognized way of creating a system of
industrial jurisprudence. It acts as a method of introducing civil rights in the
industry, that is, the management should be conducted by rules rather than arbitrary
decision making. It establishes rules which define and restrict the traditional
authority exercised by the management.
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Importance to employees
movement.
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Importance to employers
management.
making.
Importance to society
which helps the pace of a nation’s efforts towards economic and social
considerably.
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3. The discrimination and exploitation of workers is constantly being checked.
1. National level
3. Company/enterprise level
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bargaining patterns. Bargaining may be either broadly or narrowly defined in terms
Strikes:
the union.
Lockouts:
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1. After expiry of collective bargaining agreement, when employers desires to
favorable to the employers, by law, employer can lock out its employees.
Now I would like to compare theoretical aspects with practical aspects, which I
have studied about OGDCL Pakistan.
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INTRODUCTION TO OGDCL PAKISTAN
Office Venue:-
OGDCL House, Plot No.3, Sector F-6/ G-6, Jinnah Avenue, Blue Area, Islamabad.
Regional Offices:-
OGDCL Regional Offices are located in Karachi and Multan. Besides this OGDCL
has its Liaison Offices in Hyderabad, Sukkur, and Quetta for operational activities.
The company head office is located in Islamabad but carrying out exploration in all
Historical Perspective :-
The Oil & Gas Development Company Limited (OGDCL) was created under an
Pakistan’s oil and gas prospects. In July 1989, OGDCL was off-loaded from
converted into Public Limited Company and is now governed by the Companies
Ordinance 1984. In Nov 2003, the GOP divested 5% of its shares in the company
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through an initial Public Offering (IPO). The company is now listed on all the
OGDCL holds the largest share of oil and gas reserves in the country, i.e. 48% of
total oil and 34% of total gas reserves. Its percentage share of the total oil and gas
production in Pakistan is 52% and 23% respectively. On the basis of its activities
MISSION STATEMENT
MAIN PRODUCTLINE
Crude Oil
Gas
Sulphur
MAJOR ACTIVITIES
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REVIEW OF THEORETICAL & PRACTICAL SITUATION
Oil and gas Development Corporation was established in 1961 for the exploration
The working pattern of OGDC is a different from other organizations. The oil and
gas fields are located in remote areas. Most of the unskilled labour is hired from
the nearby areas, while skilled staff is hired from all over the country. The
workings conditions are tough and frustrations of worker during stay in fields
Labour Demand
At this situation, labour can demand the incentives and other reasonable facilities
because the labour is far away from their families and home. There are following
demands of labour:
Living facility.
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Safety measures.
Medical facility.
The above mentioned demands of labour working in the remote areas of all over
the country have been summarized and then presented to the OGDCL higher
management for their early consideration. In this charter of demand it has also
emphasized that the fulfillment of these demands will help in smooth functioning
of the company and for the betterment and progress of the organization.
Management’s Action
In response to the above charter of demand which was submitted by the Labour
meeting for fulfillment of these demands and for this purpose management told the
Union Representatives in writing that they required two weeks time for taking any
decision in this regard. But unfortunately after the lapse of these two weeks,
management did not decided any thing in favour or against OGDCL labour /
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Strikes are to be takenDue to this situation labour union serve a three days strike
notice to the management. They said that during the strike no work will be done in
After receiving the above mentioned strike notice, OGDCL management arranged
Sector F-6, Islamabad. In this meeting both the stake holders (union and
OGDCL union and bargain very comprehensively and forced the management to
workers OGDC adopted a policy through which field workers spend 45 days
in filed and is allowed 15 days off to live with their families. This helps them
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Management has taken the steps such as higher compensation and extended
facilities of life insurance, free medical for workers and their families, good
The Corporation also provides all safety measures and use of helmet and
STRENGTHS WEAKNESSES
Highly Skilled People Political Influences
Vast Experience Target Customer is limited
Partner are the biggest Players Market model is not scalable
in the market
First mover advantage Third party dependence
High market cap and revenue Inadequate Financing
OPPRTUNITIES THREATS
Great positioning in the Technology
market
Expanding into vertical Fear of unproductive wells
market
Few substitutes Vast Market
New Entrants Customers have more
CONCLUSION
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From the above example we can see that how collective bargaining is formed and
done. It is legal tool for the labour to fight their rights. Management realizes that
the positive role of trade union has helped in implementation of their policies. It
considers the workers as valuable assets of the corporation and union activities as
their genuine right. The labour union feels that good industrial relations are key to
the success of any organization. Workers have the responsibility to put their best
efforts and management has to reward them by giving them fair share in the profits
RECOMMENDATIONS
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Whereas in the past negotiations tended to be focused around a union claim,
Change' sets down a strategy for a more participative and non-adversarial style of
collective bargaining within the context of the global competitive environment for
business.
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