THE ROLE OF COLLECTIVE BARGAINING ON MANAGEMENT AND LABOUR RELATIONS A CASE STUDY OF FIRST ALUMINIUM COMPANY LIMITED AND WEST AFRICAN GLASS INDUSTRY LIMITED PORT HARCOURT

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ABSTRACT

Industrial relations are inherently a bipartite relationship between union and management, representing workers and the employer. Similar to other relationship, the union management relationship is also highly fragile and complex. Collective bargaining typically refers to the negotiation, administration and interpretation of a written agreement between two parties that covers a specific period of time. this agreement or contract lay out in a specific terms the condition of employment, puts some limits on employees and sets limits on managements authority. ILO has defined collective bargaining as negotiations about working conditions and terms of employment between an employer, a group of employers or one or more employees organization on the other with a view to reaching agreement where in the terms of an agreement serve as a pc defining the rights and obligations each party in their – employment relates with one another, it fixes a large number of detailed conditions of employment and during its validity more of the matters it deals with can in normal circumstances give grounds for dispute concerning an individual worker”. The unpalatable side of industrial relations and one which the public often associates unions is the strike. The strike indicates a break down of cordial relationships between labor and management and is usually the most negative commentary. To achieve this, case study approach was adopted and subsequently, questionnaire and personal interview methods were accepted as an important instrument to dispute resolution. Also we found out that dispute is both functional and dysfunctional and that the effect of it is born by the individual organization and the economy. The concept of management labor relations has attracted attention from academicians and practicing managers during the past decades. The economic interest of the union is matched by the sensitivity of the employer to market considerations particularly in situations where competition is very keen. Employers in this position are more likely to consolidate into one bargaining entity. In any event that each party has a defined interest in variable economic factors sets the basis for conflict with respect to wages and salaries. It is important to note that in resolving the conflicting economic interests of the union and management of the agreement that emerges is somewhere within the original offer by management and the original demand by the union. The interest and the formation of bargaining structure outlined in this project have been influenced by such factors as the economic and organizational environment, in the private sector thereby leaving room for further research especially in the public sector and or other tertiary institutions.

 

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

The encyclopedia of social sciences defines collective bargaining as a “process of discussion and negotiation between two parties, one or both of whom is a group of k6*s acting in concert. The resulting bargain is an understanding as to terms or conditions under which a continuing service is to be performed. More especially, collective bargaining is the procedure by which an employer or employers and a group of employees agree upon the conditions of work”. The Webb described collective bargaining as an economic institution, with trade unionism acting as a labor cartel by controlling entry into the trade. Professor Allan Flander argues that collective bargaining is primarily a political rather than an economic process. It is power relationship between a trade union organization and the management organization. The agreement arrived at is a compromise settlement of power conflicts. According to Harbinson, collective bargaining is “a process of accommodation between two institutions which have both common and conflict interests”.

The process is “collective” because representatives of employees in groups rather as individuals solve issues relating to terms and conditions of employment The term” bargaining “refers to evolving an agreement using methods like negotiations, discussions, exchange of facts and ideas, rather than confrontation. The process of collective bargaining is bipartite in nature, I .e. the negotiations are between the employers and the employees, without a third party intervention. Divergent view points are put forth by the parties concerned, and through negotiations, a settlement is reached. The objective is to arrive in agreement. Collective bargaining serves as a number of important functions.

It is a rule making or legislative process in the sense that it formulates terms and conditions under which labor and management may cooperate and work together over a certain stated period, It is also a judicial process for every collective agreement there is a provision or clause regarding the interpretation of the agreement and how many difference of opinion about the intention or scope of a particular clause is to be resolved, it is also an executive process for both management and union undertake to implement the agreement signed.

Salient features of collective barraging are:

 

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