ACTRAV

Programme for Workers Activities

International Training Centre of the ILO- Turin, Italy

Federation of Trade Unions-Burma

Federation of Trade Unions-Burma

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ACTRAV
Programme for Workers Activities
International Training Centre of the ILO- Turin, Italy

Federation of Trade Unions-Burma

FoA and Collective Bargaining Enabling Conditions for

Decent work

Pre- requisite for promoting democratic & harmonious labour relations- address power
imbalance between K & L

Voice, representation & participation- to reach mutually agreeable solutions while

respecting each others needs.

Role in economic development promotes sharing in growth, improves workers

purchasing power & thereby widens domestic markets and demand putting money in
workers pockets will help growth

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

So, what is Collective Bargaining Agreement?

Image v/s concept

CBAs is like a constitution for a company
-It is not (or should not be) a mere document for just getting some wage rise BUT a
document of rights & obligations of parties to the agreement- a mean to ensure
that union has right to company information

So- need for union vision- for the Company, workers-then a strategy and actions
to achieve that vision

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Pre-requisites for CB

A SUITABLE FRAMEWORK FOR EFFECTIVE FUNCTIONING OF IR

RIGHT TO ORGANIZE AND RIGHT TO COLLECTIVE BARGAINING

STRONG & STABLE TRADE UNIONS

RECOGNITION OF TRADE UNION

ATITUDE OF EMPLOYERS & UNIONS- Enlightened Self Interest

GOOD FAITH= fair practices

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Issues dealt by CB

Traditional issue wage rates/ pay, working hours& other working conditions,
employment policies, productivity agreement

New areas: demanding equity in matters relating to work norms, employment levels,
staffing standard, environmental hazards, company management issue such as
outsourcing, sub-contracting clauses, investment policies, management decisions over
diversification, choice of technologies, etc. since all these affect workers employment

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

On what basis do unions negotiate wages?

wages are set taking into account (generally speaking)- Productivity, company budgets,
inflation rate, economic growth & prospects, rates of unemployment & employment,
labour supply & demand

& collective bargaining

It is value added and not profits of a company that should form the basic for negotiating
for pay rise.

What is value added?

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Index linking system for pay (inflation compensation)

Belgium: pay and social security benefits linked to CPI

Cyprus: earning are adjusted every 6 months on the basis of CPI changes

Luxembourg: pay, pensions and social security benefits adjusted if CPI rises by
2.5%

Malta: Cost of living allowance added to the pay, based on inflation over the last 2
months

Indias Dearness Allowance system

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Negotiation Productivity linked wage Agreements

Productivity v/s Worker Intensity

Productivity does not only mean increasing only working time; it can also mean
finding ways to produce more output within the same time or same output within
lesser time thru
Technological improvement
Methods & Systems improvement
Line balancing

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Typical problem within the company

Out date and rigid work norms
Restrictive and narrow job description
Too many non value adding actives
Idle manpower on one hand & high incidents of overtime on other hand
Maladjusted production schedule
Shortages of critical items on one hand & growing inventory on the other hand
Unbalanced work load and bottlenecks
Break- downs
Rejection and reworks
absenteeism and labour turn over
Lack of accountability
Discontent, low morale
Mismatch between authority and responsibilities
Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Considerations before signing productivity agreement

Work intensity differs from worker to worker, from dept to dept, some workers put in 5-6
hours of effective working time, some work for 7or 8 houses- When management asks for
20 % higher production- Workers working for less hours have no problem but those who already put in 8 hours at
work, their workload increases intolerably
- management demand for 20% increase is based on the highest working time- which
means that workers as a whole end up giving much more while being paid for only 20%

need for work study & line balancing to bring down overloaded workers while bringing
up under load workers.

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

What should Union do?

Before productivity linked linked wage agreement can singed, Union should
demand:
Work Study systematic examination of the methods & time taken for carrying
out activities at work place so as to improve use of resources (human, machine,
material ) & set up performance standardsJoint participation of union & management required in this process

Note: It is not only labour but also machine & methods productivity that needs to be
looked into.

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

What study should aim at

Simplifying or modifying the methods of operation
Reduce unnecessary or excess work, reduce ineffective time spent by workers in
doing things due to poor design, layout of the workplace or in material handling, etc
Stop wasteful use of resources
Contribute to industrial; safety by identifying hazardous work and developing
safer methods
Cut down the time for performing certain activities after introducing system &
methods improvement & line balancing.
work study includes not only labour but also period required to recover from
fatigue.

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Working time in a day

General Norm:
Out of 480 minutes (8 hour), at best 420 minutes of working time should be there- 60
minutes are set aside for rest, lunch break (half hour) and 2 breaks of 15 minutes each
for tea-coffee, etc

Out of 420 minutes available for work, following deductions from working time need to
be considered:
- Personal needs allowance
- fatigue allowance- different job stations
- hazard allowance- for certain hazardous job
down time (disturbance in production cycle due to material not available, machine
break down, etc- record should be kept of this by the workers)

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

What should Union negotiate for?

Issues of interest (thu CB) v/s issues of rights (as per law)
-What is provided for by law- ideally should not be part of CB employers are expected
to abide by law (MW, rates of OT pay) CB is for getting more than the law

Negotiate compensation system & compensation package, not just wages ( some
companies pay more wages, less benefits, or vice versa)- total costs of the
compensation package matter & should be calculated.

Employment stability v/s wages question.

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma

Elements of compensation
Pay for work 8 hrs of work

pay for performance-productivity linked component

pay for time not worked ( paid leave, Sunday, etc)
Lay off compensation ( for temporary situation- India: 50% of the pay,
lorea:70 )
Deferred equivalent payment (allowances)
Health, accident and liability protection
Company performance bonus

Federation of Trade Unions-Burma

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Federation of Trade Unions-Burma