Collective Bargaining - Case Study Example

Collective bargaining Introduction Under conditions of the modern globalized world, there is a need to show greater respect to employees and take into account their individual concerns. It should be noted that modern employees have a perfect opportunity to establish and develop relations between them and their organizations voluntarily. The workers are much more concerned about worker’s right to infringe their freedom. Employers should stay aside from employee’s rights to protect their own interests. The way forward supporting creation of unions is a good chance to discuss the most crucial aspect of work collectively. Moreover, the workers have a chance to protect their social and economic interests within their organizations. As a result of collective bargaining, the organizations of these countries have a perfect opportunity to solve social and economic problems and create a favorable working environment. It is claimed in the paper that collective bargaining is a voluntary process or voluntarily taken activities of workers or employees, when they regulate their relations within their organizations. A freedom of association often leads to positive consequences. The paper is divided into four main sections. The first section discusses collective bargaining in China with respect to employees, employers and the state. The second section is focused on collective bargaining in Australia and its main players. The third section considers collective bargaining from HRM and IR prospects and in the fourth section the main points of collective bargaining are summarized and analyzed. Collective bargaining in China There is no need for modern employers to develop associations within their organizations. They are much more concerned about the stable relations within the organizations, and, if necessary, they have an opportunity to improve labor relations within the organizations. The first and foremost concern of the future promotion is to set minimum wage standards and promote salaries increase within the companies. There is an evident promotion of collective bargaining in China, which may be illustrated by Foxconn Technology Group and its first signing of collective bargaining agreement with the labor union of the company. This contract concerned more than 410,000 employees. Many issue of labor were discussed in this document, such as working hours, vacation and holidays, employee’s benefits and insurance. The most noticeable concern of the contract was a claim that the salary would increase by 3% in 2010. Therefore, other Chinese campaigns are much focused on the development and introduction of the collective bargaining, because the employees gain benefits from potential promotion of their salaries and social protection (Fisac & Fernández-Stembridge 2003, p. 53). This program was initiated at the governmental level, when the Rainbow Plan was issued. There is a need to advance and support governmental efforts directed on promotion of collective bargaining system in China. There is a need to improve the quality of the Rainbow Plan and collective bargaining. Moreover, the needs of the employees will be supported and promoted by the developments of the collective bargaining (Collective Bargaining, 2006, p. 14). Unfortunately, very often there is a lack of innovations in the field of collective bargaining and many jurisdictions do not have proper terms to protect workers’ rights. Moreover, in the modern legal context of China, there is no essential mechanism directed on implementation of effective collective bargaining (New China Government Policy Goal: More Collective Bargaining in the Private Sector, 2010).  There is an overview of a modernized collective bargaining in China. It implies that if there is no way to solve challenges between the employers and employees amicably, there is an option to apply for arbitrary labor court and the latter would solve the conflict within 15 days (Eitches 2007, p. 196). Moreover, different organizations and companies, where more than 300 workers are employed, should sign collective contracts with workers in order to focus on such issues as labor discipline and the company may set its own minimum wage, which may differ from the statutory minimum.  The regulations of the new Fair Work Act are focused on significant changes of collective bargaining. To promote the principle of the good faith bargaining is the important issue for the modern businesses (Eskenazi 2010, p. 27). First of all, this concept implies a possible imbalance between the rights of employers and employees under the previous legislation, and it provides the companies with the opportunity of stalled negotiations. There are the following requirements of collective bargaining, which should be followed by the employees: attend meetings, disclose relevant information in time, respond to and discuss the proposals of other bargaining representatives and be protected from unfair conduct or infringe in any other way the principles of the collective bargaining (Mccrystal, 2010, p. 38). Collective bargaining in Australia In Australia the issue of collective bargaining is also of high importance in the modern context. In case the major part of the employees in the organization is focused on having a collective bargaining, it will be promoted. There is a core difference of wages regulations and increase in Australia. Since the early 1990s, minimum wages should be correlated with performance criteria in place of indexation. Currently, the wage indexation system in Australia has inspired unions to focus of potential wage increase in terms of good performance and productivity levels. There is an option of arbitration, just like in China. Nevertheless, it occurs to the organizations that compulsory arbitration returned in the form of bargaining. In accordance with Cai (2010) there is a need to focus on collective participation because of the following facts: the processes of globalization, the development of workforce education, changes in production technologies (P. 36). With regards to the study conducted by Godard and Delaney (2000) there is a new model of business relations: “….new work and human resource management (HRM) practices have replaced unions and collective bargaining as core innovative force in IR” (referred by Falkum p. 482). Employee’s participation in the field of business should imply an overall involvement of the employees to the organizational and business improvements. There are strong moral grounds for employee’s participation in the management of the company. Therefore, it should be noted that collective concerns are very important for the modern unions. The specific needs of the employees should be considered in a proper way. For this purpose, the employees from the Australian Industry Group are on their way for a workplace agreement overturn and thus there is a need to get details from the Electrical Trades Union. For example, the employers are focused on promotion of individual’s concerns and the freedom of entry into workplace unions. Moreover, from the pluralist prospect, the unions have a chance to take control over big projects controlling. HRM and IR prospect on collective bargaining From democratic perspective, a participation of employees at the work place underlines the possibility of a citizen to participate in the social life of the country. From the pluralist perspective: “Unions expect improved productivity and profits to be shared with the participating workers as a democratic legitimated right in line with rights to influence decisions and business development” (Ekberg 2005, p. 181). Nevertheless, that participation of an employee should be justified and efficient within the organization. HRM intrusion in the industrial relations also underlines a tendency of adversarialism promotion. In terms of HR, there is no need to promote trade unions within the organizations. Very often the supporters of the unitarist claim underline that there is more weaknesses about industrial analysis of relations (Falkum). IR approach is more focused on collective concerns, while HRM is focused on individuals. IR perspective implies that workers should be able to take control over the employment relations and employer response, the principles of HRM concern management efforts to direct and control the employment relationship (Collective Bargaining, 2006). The basic difference between these two approaches concerns the fact that Employment Relations underline the conceptual and practical considerations which result from discussing employment relationships openly addressing the dynamic interchange between the internal environment of organizations and the outer context of their operations. There is a need to implement different strategies in order to facilitate the process of collective bargaining facilitation. Moreover, it is indicated that the work labor gain positive benefits from introduction of collective bargaining. Nevertheless, the employers did not reach the desired balance in relations between employers and employees. Very often unions threaten the companies with the legal strike actions. In accordance with the modern researches and studies: “labor productivity growth has averaged less than 0.5 per cent a year since 2005, compared with average growth of 2 per cent through the 1990s” (Falkum). Reflections and Recommendations All members of organization should work hard in the name of harmonious labor relations within the organization. Under modern conditions of a rapidly changed global market, there are many challenges. Very often employers need support from their employees in order to deal with challenges collectively. Therefore, there is a need to develop a dialogue between workers and employees in order to understand the problems of each other and develop strategies for solving them. The main goal of collective bargaining is to reach the principle of a good faith. In other words, it is the way for successful completion of the organization’s goals with regards to the individual concerns of employers and employees. Works cited Cai, Y. (2010). Collective Resistance in China: Why Popular Protests Succeed or Fail. Stanford, CA: Stanford University Press. Retrieved December 27, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=117711052 Collective Bargaining. (2006). Education Next, 6(3), 13+. Retrieved December 27, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=5028546348 Eitches, E. (2007). Federal Unions in the United States as Agents of Social Change: Comparisons with China. Nature, Society, and Thought, 20(2), 193+. Retrieved December 27, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=5037733898 Ekberg, J. (2005). Decentralised Wage Setting-A Study of the Outcomes of Collective Bargaining Reform in the Civil Services in Australia, Sweden and the UK.Economic Record, 81(253), 181+. Retrieved December 27, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=5009896171 Eskenazi, M. G. (2010). Notes on Collective Bargaining in Economic Crisis: Mediated Multi-party Negotiation Simulation. Labor Law Journal, 61(1), 25+. Retrieved December 27, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=5042787798 Falkum, E. HRM and IR perspectives – antagonistic or compatible? Conceptual constraints in studies of participation and performance. Retrieved Dec. 27, 2012 from: http://www.fafo.no/pub/rapp/937/937.pdf Fisac, T. & Fernández-Stembridge, L. (Eds.). (2003). China Today: Economic Reforms, Social Cohesion, and Collective Identies. New York: Routledge Courzon. Retrieved December 27, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=103956848 Mccrystal, S. (2010). Protected Industrial Action and Voluntary Collective Bargaining under the Fair Work Act 2009. Economic and Labour Relations Review, 21(1), 37+. Retrieved December 27, 2011, from Questia database: http://www.questia.com/PM.qst?a=o&d=5046752522 New China Government Policy Goal: More Collective Bargaining in the Private Sector. (2010). Retrieved December 27, 2011, from Questia database: http://www.globalautoindustry.com/article.php?id=5487&jaar=2010&maand=6&target=China Read More