Professional Documents
Culture Documents
ACTRAV-ILO
not a mere document for just getting some wage rise BUT a
document of rights & obligations of parties to the agreement
a means of joint regulation of workplace issues, including
union right to information & negotiate management policy
So need for union vision for the workers, for the Company,
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
Elements of compensation
Pay for work 8 hours of work
Example:
Two companies in car Industry for 8 hours work, Company
N pays higher wages but has lower labour costs, while
Company G pays lower wages but has higher labour costs.
How can this be?
Productivity plays a major role.
Company N makes 1 car in 40% less time than Company G
Focus on costs, not Wages - what are major costs in a
company? What do Managers spend their maximum time on?
8%) BUT targeting saving in material & energy costs by 10% would give
8.8% cost savings. Management had no answer but to accept unions
proposal and in this way Union saved the jobs as well as wages.
YEARS
2008
2009
2010
2011
2012
15096
26425
33100
54190
54519
INCOME
29214
26555
37446
47511
54880
23211
30319
40130
47439
VALUE ADDITION
3989
3344
7127
7381
7441
1545
1551
1836
2294
2691
2445
1793
5291
5087
4750
39
46
26
31
36
61
54
74
69
64
16
16
Gross Profit
2576
1079
3749
2196
1341
Net Profit
2029
1001
2240
1811
1242
315000
315000
2200
2200
143
143
8000
8800
56
61.6
600
600
9.31
10.26
2400
2400
2.33
2.56
PARTICULARS
PRODUCTION PER MONTH
NO. OF WORKERS
OUTPUT PER WORKER PER MONTH
company
Where do you get this information from? Balance Sheet and Profit &
Capabilities needed
For effective collective bargaining, Unions need
capacity for
Understanding countrys economic situation, impact of external
events
Group Discussion
Workers want 20% wage hike the situation facing the
company is:
The input prices (Cost of raw material, electricity, water
Reduction in wastage
Inventory management
Energy saving
Competition in price:
selling at lower margin but at a mass level. For this we need to
improve productivity. Productivity improvement involves
various factors such as:
updated technology
Concluding Remarks
FoA & CB are not just about workers rights but are also