The mission is and has always been to negotiate the
best employment terms and conditions for union members. This is mostly done
under the Industrial Relations Laws, through the collective bargaining process.
Generally, the resulting collective employment contract relates to only one
entity, organization, operation, or company, not the entire industry or sector.
However, the industry leader's collective agreement, with what should be the industry
largest union, would naturally have an effect on other organizations within
that sector. It is the monopolistic operation which presents the greatest
challenge. Hence, very simplistic solutions, would be to breakup all monopolies
and to transition
workers into owners.
Collective bargaining sees union leaders, representing
company’s employees, in discussions with the company’s management, to hammer
out periodic employment contracts within and under Industrial Relations Laws. Noting
that, the employees can select any and many unions, it is the union with the
largest number of members, employed with this operation, which is recognized to
send its leadership team. The management of such an operation is hired, via
personal contract, by the entity's Board of Directors, who themselves, have been
elected or appointed by the entity's shareholders. Such discussions, over many
meetings, sees management and union presenting changes, each would like to make
to the last signed contract.
Such a newly negotiated collective agreement is signed
and implemented for only this organization, addressing pay and pay increases,
work time and overtime, health and safety, pensions and severance, etc. Pay and
annual pay increases across the organizational chart is normally the most contentious
issue in the discussions, mainly because of rising cost of living, inflation,
management bonuses and maintaining shareholders' dividends. Adjustments to
working hours and overtime will also be discussed as it can affect the
organization's payroll. However, health and safety conditions tend to be a redline
for the union, as it should be. While, the management sees pension
contributions and severance pay as they breaking-point.
Other operations within the same industry or sector,
within the same jurisdiction, country, nation, or state, collective workers'
contracts would tend to follow the same economic model, as not to lose key
personnel to competitors. Noting that, in a heavily competitive industry, the
union's bargaining position is naturally strengthened. While, in a lesser
competitive sector, both management and union are equally empowered. And if an
entity holds a monopoly position in the nation, the union's negotiation
position is weakened. More importantly, if the elected executive branch of
Government is the sole owner or majority shareholder, the union is most vulnerable,
to dismissals, wage and hiring freezes and can only respond by further economically
damaging strikes.
So, to strengthen workers’ unions and their negotiating
positions, one must first understand the issues. Technological advancements have
been known to destroy whole industries. While, there is no stopping progress, displaced
and dismissed workers should be offered retraining options as part of their severance
package. It is often the first and only solution when sales revenue drastically
declines to fire staff to maintain dividend levels. An (ESOP) Employee Share Option
Program can help displaced and dismissed workers, who loses wages but will not lose
dividends. Breaking up monopolies, before there are judged to big to fail, is
essential. Hence, Workers’ Unions must, therefore, evolve to retrain, support
and keep their members, by transitioning from Workers into Owners and by negotiating
contracts in newly structured entities.
Rationale
T.A.J
& Associates Company Limited uses
this occasion to comment on topics that have been covered, both academically and
by the mainstream media, to add its opinion and point out investment opportunity,
not to invoke any social action.
