Brief Summary:

In the First Phase of my report, I explain the labor and the

management relations, in the union’s representations, type of
collective bargaining, bargaining agent, nature of the bargaining
agent, issues relating to the collective bargaining, unionization
procedural justice, open door policies, Participations
management system and ethical decision makings.
In the Second Phase of the summary, I discuss the Practical study
of the PTCL I n which I have discussed the privatization of the
company related issue, agreement of meeting by management,
meetings with PTCL, and achievement or role of the Collective
bargaining agent.
In the third phase of the summary, I give the Data Collection
method, swot analysis of the Ptcl, and then conclusions and
recommendations also explained.
Before explaining about the role of the collective bargaining, I would
like to explain first that;

What is Collective Bargaining?

A collective bargaining is concerned with the relations between
employees acting through their management representatives and
organized labors. It is concerned not only with the vegetative of a
formal labor agreement but also with the day to day dealings between
management and the unions.

The bargaining is collective in the sense that the chosen

representatives of the employees acts as the bargaining agent for all
the employees in carrying out negotiations and dealings with
management.

Collective bargaining is a process of voluntary negotiation between

employers and trade unions 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 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 (CEA).

What Is Bargaining Agent?

An employee’s organization is certified by the Public Service Labor

Relations Board to represent employees in a bargaining unit.

A bargaining agent is basically, a person who is nominated by the

employees through which, they resolve there issues with the
management and also it solves the management problems also and
ultimately act as a bridge between the management ant the
employees. It is the leader of the labor union which represents the
employee’s issues to the managements and solves the crucial issues of
the labor unions and the management also in some cases.

The main function of bargaining agent, is to intercede on behalf of the

employees interest collectively.

What is Bargaining unit?

A group of two or more employees that is determined by the Public

Service Labor Relations Board to constitute a unit appropriate for
collective bargaining.

Clear days: a number of days between two events, in calculating that

number of days the days on which the events happen are excluded.
What is Collective agreement?

An agreement in writing, entered into by the employer and a

bargaining agent, containing provisions respecting terms and
conditions of employment and related matters.

What is Conciliation?

A dispute resolution process chosen by the bargaining agent to resolve

a dispute or difference arising from negotiations carried out as part of
the collective bargaining process. On recommendation from the Public
Service Labor Relations Board Chairperson, a Public Interest
Commission is established and will issue a public report as to its
findings and recommendations. Should there still be disagreement; the
bargaining agent can declare a strike providing conditions are met.

Dispute / Impasse:

A disagreement or difference that arises in connection with the

entering into, renewing or revising a collective agreement and in
respect of which arbitration or conciliation may be requested.

Types of Collective bargaining:

There are two main types of the collective bargaining which are as
follows.
Distributive Bargaining
Integrative Bargaining

Distributive Bargaining:
Being the most common kind of bargaining, distributive bargaining is
the situation in which there are “zero sum” conditions which mean that
a gain of one party is balanced by an equal loss of the other party wins
something.

Labor markets are very clear and wide applications of the distributive
bargaining. Typically, labor representatives come to the bargaining
table, determined to raise the wages as much as possible. Since
increases of every rupee cost higher of the management, therefore the
atmosphere is aggressive and each party treats the other as an
opponent who must compelled to bow down.

In distributive bargaining, each party has well defined target point that
it would like to achieve. Each also has a resistance point that is the
most unfavorable but acceptable situation. The areas between the
parties resistance point is called settlement range.

Integrative Bargaining:
Unlike distributive bargaining, integrative bargaining operates under
the assumptions that there is at least one settlement that can create a
situation highly favorable to both the parties. It is the kind of
bargaining that seeks one or more settlement that can creates a win-
win situation, where at the end no party is unhappy to lose.

The sales on credit, offices operate under the kind of bargaining. The
Integrative bargaining is more preferred than the distributive
bargaining because it creates a long term relationship based on the
goodwill and no grudge. It bonds negotiators together and lets each
feels that he or she has achieved the victory. Distributive bargaining
however leaves one party feeling that it has lost something in the deal.
It depends, the division between people who may work together on
ongoing basis.

However, Integrative bargaining is not as much seem as distributive

bargaining because it requires a very pleasant and relaxed
atmosphere, frankness between parties and sensitivity for the
opponent party. It requires ability to trust one another and willingness
from both parties to maintain flexibility. Because many organizational
cultures and inter-organizational relationships are not characterized by
opinions, trust and flexibility, It is not surprising that bargaining often
take the approach of win at any cost.

Issues Relating Collective Bargaining:

What are the issues about which the management and labor negotiate
when they meet at the bargaining table? This is a general list, any
individual agreement would necessarily contain certain items particular
to the situation. The order of topics varies from one agreement to
another.

1. Union recognition and scope of bargaining unit

2. Management rights ( Managements security )
3. Union security
4. Strikes and lock outs
5. Union activities and responsibilities:

a. Check off dues

b. Union offices and stewards
c. Union bulletin boards
d. Wildcat strikes and slowdown
6. Wages:

a. General wage adjustment

b. Wages structure
c. Job evaluation
d. Wage incentives and time study
e. Reporting and call in pay
f. Shift differentials

7. Working time and time of polices:

a. Regular hours of work

b. Holidays
c. Vacations
d. Overtime regulations
e. Leave of absence
f. Rest periods
g. Meal periods

8. Job rights and seniority:

a. Seniority regulations
b. Transfers
c. Promotions
d. Layoffs and recalls
e. Job posting and bidding
9. Discipline, suspension and discharge
10. Grievance handling and arbitration
11. Health and safety
12. Insurance and benefit programs:
 a. Group life insurance
b. Health insurance
c. Pension program
d. Supplemental unemployment benefits

Law of Collective Bargaining:

The law of collective bargaining encompasses four basic points:

• The employer may not refuse to bargain over certain subjects

with the employees' representative, provided that the
employees' representative has majority support in the bargaining
unit.
• Those certain subjects, called mandatory subjects of bargaining,
include wages, hours, and other terms and conditions of
employment.
• The employer and the union are not required to reach agreement
but must bargain in Good Faith over mandatory subjects of
bargaining until they reach an impasse.
• While a valid collective bargaining agreement is in effect, and
while the parties are bargaining but have not yet reached an
impasse, the employer may not unilaterally change a term of
employment that is a mandatory subject of bargaining. But once
the parties have reached an impasse, the employer may
unilaterally implement its proposed changes, provided that it had
previously offered the changes to the union for consideration.
 Practical Study of
Organization with
Reference to

“Role of Collective Bargaining in

Company”
 Organization
visited

Pakistan Telecommunication Company Limited:

Introduction:
Mr. Walid Mohammad and Ahmad Suleiman Irshad, are the
President and CEO of PTCL.
PTCL Stands for Pakistan Telecommunication Company Limited. The
Company is in the process of enchancing organizational and busniness
proficiency through vertical integration and horizontal diversification.
At the same time, cross-national ownerships, operations and
partnerships are being evaluated with a view to developing and
diversifying the business.
History:
• Posts and Telegraph Dept. ( 1947)
• Pakistan Telegraph and Telephone Department.
(1962)
• Pakistan Telecommunication Corporation. ( 1990-91)
ALIS: 850,000
• Waiting list: 900,000 Expansion Programs of 900,000
lines initiated (500,000 lines by Private Sectors
Participation 400,000 lines PTC/ GOP own resources).
• About 5% PTCL Assets Transferred to PTA, FAB An
NTC. (1995)
• PTCL Formed Listed on all Stock Exchange of
Pakistan (1996)
• Mobile and Internet subsidiaries established (1998)
• Telecom Policy Finalized (2000)
• Telecom Deregulation Policy Announced (2003)

Review of Theoretical And Practical Analysis:

Lets Review and compare the theoretical and practical aspects of
labors and the management relations in the PTCl.

Privatization of Company Related Issues:

• Labor and management relations disturbed when the
Government decided to privatize the organization.
• Employees were concerned about their future and this cause
a great trouble for the management.
• Workers unions of PTCL took Action against the PTCL
Privatization Decisions.

Agreement of Meeting by Management:

In this regard, Management arranged the meeting for Collective
Bargaining.

Role of Collective Bargaining Agent:

The role of Collective Bargaining agent is very important, in that
cases because it is the responsibility of the collective bargaining
agent to listen the employees problems and then representing
the particular demands of the labors to the management of the
Company like PTCL. A CBA of PTCl at that time are very much
active in the sense that they are worried about the labor future
as the news are spreading that the PTCL company is wholly
privatized and the workers of the company may leave from here
on any cases. At that time the CBA listened each of the
employees union member and then make the following demands
of the employees to the management

Demands of the PTCL Worker Union:

1. The wages of PTCL workers should be increased by 15%
2. The employees should be given PTCL Pay Scales
3. The workers who deserves promotion should be promoted
immediately
4. The quota of the deceased worker should be restored
5. The quota for the recruitment of children of duty staff
should be restored.
6. The daily wages employees of telecom foundation should
be regularized.
7. The employees should be paid bonuses according to the
proportion of the profit of the company.
8. The medical Facilities of the workers should immediately
be restored.
9. The fake cases against the C.B.A union should immediately
be withdrawn.

Results of the Management Meetings:

In the result of the meetings, PTCL Workers Unions Action
Committee postponed its plane to jam countrywide
telecommunication system for an indefinite period but did not
called off their strike, on the day of bidding for 26 percent
shares of the company.

The Unexpected move came only 30 minutes before the

deadlines, the Collective bargaining agent or the union
leaders had given to the Government for jamming the
network of the Pakistan Telecommunication Company.
After President Zia-ud-din and Secretary- General Rana Tahir
of the Pakistan Telecommunication, Employees “Union had
called off the strike after talks with the management.

Meeting with PTCL:

Zia-ud-din and Tahir held meeting with the PTCL President
and Chief Executive Junaid I. Khan and accepted the over 5
billion package for allowing the privatization of the company.
The union leaders said the workers were satisfied that 62
percent share of the PTCl Would remain with the Government
and added that the management had accepted all demands of
the Unions, the statement said.
Mr. Khan said that the agreement with the PTCL’s Collective
Bargaining Agent would be given final touches within two
days, the statement added.
There are over 650,000 telephone lines were currently out of
order.
Initially management and the regime took this as something
routine. They are not the least concerned about these
demands. This turned the workers violent and the aggression
and the anger of the workers continued to increase. There
was a good response to the strike call of the union. In many
Cities the workers participation in the strike made the regime
tremble and on the evening of October 12, the regime
accepted all the demands of the workers and requested them
to call off the strike.
After settlement of this very crucial matter of the privatization
of the company, It is settled that 28% of the share are with
the privatization and the remaining will be with the
Governmental shares but the ultimate authority of the
company remains with the private Authority of the PTCL. Mr
Ite-Selat, who purchases the PTCL shares of about 28%.

Achievement of the Collective Bargaining Agent On

Behalf of Labor Union:
The Collective bargaining agent played a vital role, in this
serious matter and hence protects the rights of the employees
and performed their duties according to the requirement of
the circumstances. If the Collective bargaining agents are not
their, then the employees might not get their rights in time.
It is a great victory for the workers of the Communication
Industry in Pakistan and will strengthen the cause of labor.
The Workers are still facing many challenges now and also in
the future but this will effect a lot on these upcoming matters.
 Data Collection Method:
To collect the data, I have personally visited the company and
with the due permission of their branch manager, I visited the
head of the human resource department and also with the
managerial staff after waiting for a long time in it, then they
have given me the opportunity to interview the different
employees as well as the Collective bargaining agents of the
unions in the Company. I analyze the relations between the
management and the labor unions after discussing with the
agents of the labor unions. After taking these interviews with
leaders of the unions and some managerial staff, I ensure you
that all the information which I am going to present is
basically based on the grounds of reality and which are given
to me by the head of the union leader (CBA) of the employees
and some managerial staff also.

SWOT Analysis (changeable)

Strengths:
• Demands and suggestions are taken from the employees by
the Collective bargaining agents.
• CBA protects the rights of the employees by putting up the
demands to the management.
• CBA acting as a bridge between the labors and the
management.
 • Suitable CBA selection solved many crucial matters, like PTCL
privatization matter.
• CBA reduces the gaps between the labors and the
management.
• Strong Collective Bargaining agents are there in the Company.
• Friendly behavior of Collective Bargaining agent with the
employees.

Weaknesses:
• Unnecessary demands of increase in pay benefits etc can create
problems between the labor union and the management.
• Weak CBA selection can create problems to the employees.

Opportunities:
• Opportunities for CBA to protect the rights of the labors.
• Giving the proper opportunities to the employees to talk openly
the matters or issues of the company to the CBA and then with
the management.

Threats:
• When the rights of the employees are not putting up to the
management by the Collective bargaining agent then they
should not work in an efficient manner.
• The biasness between the CBA and management is a huge threat
for labor rights, so the CBA selection is very much important.

Conclusions:
It is concluded that the PTCL company having good management and
labor relationship between each other and with the due consent of each
other the most complicated issue of the privatization of the PTCL was
settle down by the efforts of the Collective bargaining agent and the
labor union members. The collective bargaining agent had given the
proposal from the labor to the management which in the end, settle
down with the due consent of each other. So it is concluded that the
PTCL is having a good collective bargaining agents and labor unions and
having a good labor and management relations with each other,
although they might have some matters on which the management and
the labor are not agreed but still they cooperate with each other and
solve their issues.

Recommendation

• After conclusion, I Recommend, that with increasing of labor-

management cooperation, they can get more, better working
environment in future.
• The Collective bargaining agent stands and supports, the rights of the
employees with reasonable demands.
• Strike of (workers) and lockout (management) should be avoided to
maintain the positive relationship with each other.
• Undue influence by Collective bargaining agents should be
minimized.
• Unnecessary demands of increase in pay benefits etc can create
problems between the labor union and the management. So CBA
should avoid unnecessary demands of the labors.
•

References and Sources used

I have consulted following references to make this report useful and a

viable informatory document.
Books: Prof. Dr. Khawaja Amjad Saeed and Qazi Awais Amin
PRIMARY DATA
 Personal Observation
 Interview with employees and legal advisors of the PTCL
Company.
 Informal meetings with the employees of the PTCL Company.
 Lectures

SECONDARY DATA
 Internet
 Legal documents of the PTCL Company.