Human resource management

A project report
Submitted by

Rohail Mahmood Siddique Rana Bilal Ahmad Aamir Saleem Topic: Organizations: Submitted to: Semester:

MBE-10-57 MBE-10-58 MBE-10-21

Labor relations
(Wapda SNGPL WASA)

Dr.Shaukat Malik 2 MBA (Evening)

Date of submission:

02/05/2011

Labor relations

Page 1

ACKNOWLEDGEMENT

First of all we convey our sincere thanks to God the Almighty for having granting us the Wisdom and energies to complete our assignments in the shortest possible time In the process of the preparation of report we required lot of guidance which we could receive from most learned experience and dedicated teacher Mr. Shaukat Malik. Let us admit that without his dedicated guidance and most useful advises the task was uphill. We have a lot and added to our experience. For all this we extend our gratitude and most sincere thanks. We are also thankful to all others who assisted us in completion of our assignment.

Labor relations

Page 2

PREFACE
The pre-requisite of report is to make the students of MBA aware of the practical expertise and to acquaint them with the real management process. With an attention of grooming the best executives of future the report have been assigned. All of us were assigned in leading organizations of business arena to gain firsthand knowledge and insight into management and working. So when we were given the chance of selecting organizations, we opted for WAPDA (MEPCO) SNGPL (Sui Gas) WASA (Water and sanitation Authority) Getting a chance for working on report proved to be very beneficial for us. We gained comprehensive insight into the working of above organizations. But nothing could have been possible without the cooperation and guidance of officers of these organizations. This report has been prepared just in accordance with these practical exposures. It has been our endeavor to stipulate our experience that the reader may clearly understand the core concepts.

Labor relations

Page 3

Table of Content:
Acknowledgement Preface.. Executive Summary 1. Introduction.. 2 3 5 6

2. Collective Bargaining

10

3. Grievances.

13

4. Methodology (Organization profiles, questionnaire and analysis) Conclusion. .

15 16-28 29

Recommendations.

30

Bibliography.

31

Annexures (references).

32

Articles attached..end

Labor relations

Page 4

Labor relations

Page 5

EXECUTIVE SUMMARY
When relations between management and union are sound, there is a substantial degree of peace between the parties. Strikes occur only infrequently. There is an acceptance by each party of the need of the other to exist as an institution. Also both management and the union believe they are getting a fair deal in relationship with each other. The attitudes and philosophies of the leaders in management and the union are powerful determinants of the character of the relationship. Research has shown that where harmonious relations occur, management fully accepts the union as an institution and understands its need to exist. It accepts collective bargaining as a desirable way of handling employment relationships. Management understands the political nature of the union leader dealing with private companies accept the enterprise system and the need of the firms to make a profit. They are concerned for the continued validity of the organization. Both parties recognize they have shared interests. They understand that they will continue to live and deal with each other for many years to come. The problem that is of serious concern to one party must of necessity be addressed by the other. It cannot be ignored. Differences and conflicts inevitably do occur between management and union leader (CBA) from time to time, but these are resolved through rational process of problem solving and a reconciling of positions. Neither side tries to overwhelm the other by the use of power and force, flexibility, give and take, nor some comprises occur from time to time. Thus today in every organization sound labor management relations are necessary for the betterment of organization and establishment. Different organization face different issues relating labor and employees so we have visited three organizations which are WAPDA (MEPCO), SNGPL, and WASA .We gathered data through questionnaire and interviews of both management and labor union members. For the preparation of report on Labor Relations first we got the introduction of topic from our respected teacher Prof. Dr.Shaukat Malik .He told us the procedure of making a report. In this regard we collected material about our topic. The questionnaire was prepared and was approved. We visited organizations and took interviews of related officers and managers. During our visit we learn about the labor relations practiced in the organizations. We were given ample information on the labor relations. We got our questionnaires filled by the organizations and Labor relations Page 6

we interviewed the management and labor representatives. We also collected some data from the Internet. The report was then composed and submitted on the due date.

Labor relations

Page 7

Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.

1. Introduction:
Among the surge of political, economic and demographic factors elevating the importance of labor relations skills, the most important motivation for HR professionals to strengthen their labor relations expertise might be personal. Each organization needs the sounds labor relations to become the live organism. Organized labor exerts a strong influence upon the individual organization and upon the economic, social and political climate. When the employees of an establishment are represented by a union ,policies and practices affecting the employment relationship that were formerly decided by management alone become subject to joint determination Wages hours and other term of employment are bargained jointly between union representatives and employer representatives. The decisions reached in contract negotiations reached in contract negotiations on economic matters and often impact upon the pricing of company products and services. This in turn may influence the competitive position of the organization in the market place. When management contemplates taking certain personnel actions, it must give consideration to the attitude and position of the union on such matters. The attitudes of the union leaders and the members affect management programs of technological innovations, productivity improvement, job evaluation, and setting of workLabor relations Page 8

load standards. In the broader social economic and political sphere we find that organized labor plays a significant role.

1.1 Labor Relations:

Labor relations and labor-management relations are terms used to define the business activities between labor unions and employers. Large organizations employ labor relations or employee relations specialists who operate as a liaison between labor and management. In smaller organizations, an attorney or a human resources manager knowledgeable about labor and employment law handles labor relations matters. Labor relations activities include contract negotiations, employee grievances, arbitration and mediation, and business matters such as check-off responsibilities. Check-off refers to collecting labor union dues through payroll deduction.

1.2 Unions:
Unions are groups of workers within an industry who band together to support their collective interests. Unions usually charge their members a fee for membership to support the administration of the union. By banding together throughout an industry, they can command more from employers, since they are assured other workers in their field will not undermine their efforts by taking jobs when they take action against employers. Unions also command a lot of political capital due to their size and oftentimes prove formidable lobbyists for policies and regulations that support their interests.

1.3 Union Goals:

Given the trade- off between wages and employment, all unions tend to have certain predictable goals:
1) Reduce the elasticity of demand for union labors

Labor relations

Page 9

2) Increase the demand for union labors 3) Decrease the supply of union labors

1.4 Labor unions objectives:

Unions have two sets of aims, one for union security and one for improved wages, hours, working conditions, and benefits for their members Benefits Negotiation Dues Collective bargaining and grievances

1.5 Forming of unions:

Forming a new union can be a long and complex process. However, there are some basic stages that are common to the formation of most of these organizations. First, the need for unionizing becomes apparent to the workforce. This is often because working conditions are poor, benefits are inadequate or wages are low. Employees may have attempted to negotiate a better deal on an individual basis and failed. Sometimes, union representatives from other, similar industries initiate a conversation with employees about the advantages of collective bargaining. For example, a labor organization that represents hotel workers might approach employees in other service and hospitalityrelated industries. It may distribute informational materials that spark interest in unionizing. Labor relations Page 10

A core group of workers who are committed to creating a union is generally formed early on. This committee gets in touch with local or national labor associations for assistance. Such organizations can provide education about the logistical and legal issues surrounding the formation of a new union. A union organizer and an attorney who specializes in labor law may be retained to provide additional help. The core committee draws up a list of the goals it hopes to accomplish through unionizing

Labor relations

Page 11

1.6 Labor Relations Process:

1. Workers desire collective representation 2. Union begins its organizing campaign 3. Collective negotiations lead to a contract 4. The contract is administered

Labor relations

Page 12

2. Collective bargaining:

Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements which regulate working conditions. Collective bargaining is another term for workplace unionization. Globally, countries with more coordinated collective bargaining systems have less wage inequality than countries with less developed systems. It is concerned with the relations between employers acting through their management representatives and organized labor .It is concerned not only with the negotiation of a formal labor agreement but also with the day to day dealings between management and the union. Because the management of people in so many organizations is closely intertwined with union labor relationship. Furthermore the effect of collective bargaining extends beyond those establishments that are unionized. It impact upon the economy as a whole. Collective bargaining is the process whereby company employees or workers within an entire industry---and sometimes across industries---band together to make demands from employers. In such a way, workers can represent their collective interest by leveraging their collective human capital against employers in order to gain rights and privileges they may not have otherwise been able to command Negotiating a collective bargaining agreement (CBA) with a single union representing 300 to 400 employees financially commits a company to millions of dollars during the course of the agreement. The roots of collective bargaining lie in the late nineteenth century, when workers began to agitate for more rights in their places of employment. Many skilled trades started using their skills as bargaining tools to force their employers to meet their workplace needs. Other workers relied on sheer numbers, creating general strikes to protest poor working conditions. Several labor pioneers started to establish a collective bargaining system so that labor negotiations could run more smoothly. Labor relations Page 13

Typically, the employees are represented by a union. Collective bargaining actually begins with joining a union, agreeing to abide by the rules of the union, and electing union representatives.

Labor relations

Page 14

Collective Bargaining is the negotiation between representatives of management and workers to produce a written agreement covering terms and conditions of employment. It is essentially a compromise and balancing of opposing pressures of two social groups who have enough mutual interests to work together. Pressures at the bargaining table usually are framed in economic and technical terms. Bargaining is really a social process. Collective Bargaining Agent (CBA) in relation to an establishment or group of establishments means the trade union of workers or federation of trade unions which, under chapter XIII, is the agent of the workers in the establishment, or group of establishments in the matter of collectively bargaining.

2.1. Objectives of Collective Bargaining:

Collective bargaining objectives among other are to: a) settle disputes/conflicts relating to wages and working conflicts relating to wage and working conditions; b) protect the interests of workers through collective action; and c) resolve the differences between workers and management through voluntary negotiations and arrive at a consensus;

2.2. Functions of CBA:

a)

Undertake collective bargaining with the employer on matters connected with employment, non-employment, terms of employment and conditions of work. Represent all or any of the workmen in any work proceedings. Give notice of strike according to the provisions of the chapter. Nominate representatives of worker on the Board of Trustees of any welfare institutions or provident funds, and of the workers participation fund established under Chapter XV. Page 15

b) c) d)

Labor relations

e)

Undertake legal proceedings on behalf of single or collective workers.

2.3. Collective Bargaining Activities:

Collective bargaining is the oldest form of labor management negotiation in the industrial relations in Bangladesh. Because of the doctrine of multiple union systems the practice has been developed to select a collective bargaining agent (CBA) from among the registered unions in an enterprise or group of enterprises to undertake collective bargaining with the employer on behalf of the workers in that enterprise or group of enterprises. The main activities of CBA are as follows: 1. To undertake collective bargaining with the employer or employees on matters connected with employment, non-employment, terms of employment or the conditions of work; 2. To represent all or any of the workmen in, any proceedings; 3. To give notice of and declare a strike in accordance with the provisions of law; 4. To nominate representatives of workmen on the board of trustees of any welfare in institution or provident fund and of the workers participation fund. In any enterprise if there is only one registered union with membership, equivalent to a minimum of one third of the total number of workers employed in an enterprise, that union is, legally authorized to work as the CBA without any election. But in case, if there exist more than one legal union, a CBA is elected from among those unions on the basis of secret balloting under the supervision of the Registrar of Trade Unions. It is stipulated in the law that a union even if it wins in the balloting cannot be declared as the CBA, unless votes castled in its favor amount to at least one third of the total number of workers employed in that enterprise or group of enterprise.

2.4. Importance of Collective Bargaining:

Collective bargaining is useful device to help preserve labor management autonomy in a free society. Disputes are natural since workers may demand more than what they deserve and employers may have proneness to pay less since the money paid to employees redline profit volume. Reference to third parties for dispute settlement may reduce freedom of both labor and management. So collective bargaining is expected to serve the long run interests of labor and management. It is indispensable. Practice of collective bargaining developed out of the situation that individual employee has neither the knowledge nor the resources to Labor relations Page 16

discover and take advantage of the best opportunities. Collective bargaining enables him to get more compensation.

3. Grievances:
Formal applicant over the application, interpretation or administration of the collective agreement

3.1 Grievance procedure:

the five steps of our grievance procedure

Step one: At this step, a discussion is held between the griever and the crew shop steward, and the party being grieved (usually the shift supervisor). If the employee is not satisfied with the resolution offered at this step, a formal grievance may be initiated. Step two: If the member is not satisfied with the resolution offered above, the union then may advise the department supervisor that the employee intends to proceed with the grievance. Grievances other than those of individual employees may be initiated at Step Two by either party. Step three: At this stage, if there is no satisfactory resolution at step two, the grievance may be referred to Standing Committee by advising the Standing Committee chair (Local president) of the intention to proceed with the grievance. Step four: If there is no satisfactory resolution at the third step, then the question may be referred to the President of the Local and the General Manager, Pulp and Paper Manufacturing. In our present system, both of these individuals reside on Standing Committee, so, as our contract allows, either party may elect to involve outside help at this step such as a regional union representative and/or a management representative from outside of Prince George.

Labor relations

Page 17

Step five: If there is no satisfactory resolution at fourth step then the matter may be referred to an Arbitrator.

3.2 The purpose of the grievance procedure:

The grievance procedure is at the heart of the collective agreement. It allows the union steward to draw up a grievance on behalf of the members. It is recognition by the employer that members have the right to be heard by management. The procedure can have two to four steps. At each step, representatives of the union and the employer meet. Make sure you know the time limits for each step of the procedure. When a case is settled through a grievance, it can serve as a precedent, or a model on which the merits of similar cases will be assessed in the future. Precedents are usually very important because they establish how the union and the employer will interpret the collective agreement from then on.

This diagram shows the steps involved in grievance procedure:

Labor relations

Page 18

4. Methodology:
For data collection: We have collected data with the help of questionnaire and interviews of HR personnel and management persons of each organization. For discussion of data: In this report the data of the three organizations is discussed in the comparison form means the same question is discussed for each organization, which helps us to make the critical analysis of the practices taking place in the different organization. I. At first a profiles of the three organizations are shown. Page 19

Labor relations

II.

Then the detail questionnaire and analysis of organization are shown.

4.1 Discussion of Organizational data:

We visited HR departments or admin departments of three organization and collected information about labor relation and the union offices. We also meet with non CBA union leaders to get information about any past disputes.

4.2 Organizations Visited:

We have visited following three GOVT organizations. WAPDA (MEPCO) SNGPL ( sui northern gas pipelines limited ) WASA (Water and sanitation authority MULTAN)

Comparison of the organizations Visited: We have visited three governments based organizations and collect information from the relevant departments and persons they guide us so well and answer our questionnaire. We collect information about unions and their relations with management in detail and compare the three organizations in detail.

Organizations profile:
1) WAPDA: (MEPCO)

Labor relations

Page 20

WAPDA, the Pakistan Water and Power Development Authority, was created in 1958 as a Semi-Autonomous Body for the purpose of coordinating and giving a unified direction to the development of schemes in Water and Power Sectors, which were previously being dealt with, by the respective Electricity and Irrigation Department of the Provinces. MEPCO the Multan Electric Power Company is one of the biggest Distribution Company of WAPDA. It's area of operation is from Sahiwal to Sadiqabad, Bahawalnager to Bahawalpur and Tounsa Sharif to Rajanpur and bordering with Sind, Balochistan and NWFP Map.

Mission:
Ensure convenient availability of high quality electric power to the people at affordable price, retaining financial viability of the Company.

HR Department structure:
.

MEPCO is a mechanistic organization with a strong HR department they highly believe on strong labor management relation for the progress of organization.

2) SNGPL (Sui-Gas):

Labor relations

Page 21

Sui Northern Gas Pipelines Limited (SNGPL) is the largest integrated gas company serving more than 3.4 million consumers in North Central Pakistan through an extensive network in Punjab and Khyber Pakhtoon Khwa. The Company has over 46 years of experience in operation and maintenance of high-pressure gas transmission and distribution systems. It has also expanded its activities to undertake the planning, designing and construction of pipelines, both for itself and other organizations. SNGPL operates in a region of the nation that has a rapidly growing demand for natural gas and power generation due to significant industrial development.

Mission Statement:
A commitment to deliver natural gas to all door steps in our chosen areas through continuous expansion of our network, by optimally employing technological, human and organizational resources, best practices and high ethical standards

HR Department:
The backbone of any successful company is the HR department. and without a talented group of professionals, who can hire, culture, and train employees, the company is doomed for failure. Corporations are always searching for better ways to produce goods and services. A large part of this growth is the Human Resource department of a company, who are responsible for hiring the people with the knowledge to bring new technology and fresh ideas into the company. The SNGPL HR department situated at LAHORE but in future in two to three years MULTAN SNGPL HR department will also made according to MD (SNGPL).

Labor relations

Page 22

3) WASA:
The city of Multan, having a population of 1.9 Million, is spread over an area of 304 Sq. Km. WASA Multan, which was established in year 1992, has been functioning to provide water supply and sewerage facilitate to the citizens in Multan. Presently, WASA has been able to facilities 60% of the population by producing and supplying at least 31.5 million gallons of drinking water daily. People themselves by their own means are producing at least 12 million gallon water per day. In this way, WASA has to collect, lift and dispose 43.5 million gallons of sewage daily through its sewer network and Disposal Stations, which is maximum in summer months as 48 mg/D and minimum in winter months as 39 mg/D.

Mission Statement:
Mission of the WASA Multan is to be a Customer Oriented Organization, providing Excellent Water and Sewerage Services in a cost effective, environmentally &socially responsible manners. 1. Improvement of service level of existing Water Supply and Sewerage facilities. 2. Extension of these facilities for entire population of the City including newly developed 3. Improvement of recovery of user charges to make it the self-financing Agency.

HR Department:
As WASA is the organization of MDA (Multan Development Authority) so the HR department of WASA is in progress to establish and WASA has a great source of workers Labor relations Page 23

above 1900 so to handle the human relations WASA now like MEPCO is going establish labor department which deals the labor problems with unions.

Questionnaire: Comparison of three organizations:

Sr no 1
QUESTIONS

WAPDA (MEPCO) yes

SNGPL (SUIGAS)
No

WASA

Is there any human resource department in your organization? Any union exists in your organization? What is the aim behind forming the union?

No but in progress

2 3

yes
To ensure the labor interests

yes

yes

Representative of labor and employees to ensure the interests According to workers they want to join the unions because of benefits.

To secure the labor future and work for the betterment of employees Most of the workers want to join the union but in WASA management only allow on job workers to join unions. 1)pension funds 2)annual increment Page 24

Is it necessary for every worker to join the union?

Not necessary its depend upon on their will if organization stop to join then they can breech the labor law

What benefits (gratuity) a labor avail from joining the union?

Labor relations

1) pension funds 2)security benefits

1)pension funds 2)gratuity and security.

Rs 200 according to Rs 200 How much a labor has to pay monthly for the union? the PIRO 2010

Rs 200 according to PIRO 2010 2 years

How much tenure a union framed for?

2 years but 2 years if previously it was for possible then 3 years but due to referendum. new law it change
Under the act of PUNJAB INDUSTRIAL RELATION ethics 2010 registrar conducts the CBA elections or referendum.

Who conducts CBA elections?

Under the act of PUNJAB INDUSTRIAL RELATION ethics 2010 registrar conducts the CBA elections or referendum.

Under the act of PUNJAB INDUSTRIAL RELATION ethics 2010 registrar conducts the CBA elections or referendum.

9 10 11

Any non CBA union exists in your organization? How many types of union registered? What type of relation exists between CBA and non CBA union in your organization?

yes

yes

yes

Two types

two types

Three types

Good and sharp relations

Like a competitor relation with each other.

According to CBA of WASA they have well but according to our exposure its bad. No disputes current year.

12

Any disputes between union and management in current year? What type of role unions play on behalf of labor grievances? Do you agree most of the leaders just play a political
Labor relations

No since previous 3 years there are no disputes arises A strong role

No disputes raised since last 3 or 4 years Strong role

13

A very strong role

14

No because they do their own work.

Most of the employees

If they play so then they have Page 25

game (pocket union)? 15 What type of union management relations in your organization? What is the impact of union on management decision? What law your organization unions follow? Any role of labor courts in disputes? What type of labor relations are necessary for the establishment of an organization? What type of role a legal advisor play in handling of conflicts? If legal consolatory fail to solve the disputes then who solve the conflicts?
Good relations

satisfied with their work Good relations

pay for their will. But not. Not so good but moderate

16 17 18 19

Not too much but impact happens if disputes arises

Relied on some points

Punjab Industrial relation act 2010

Strong impact

Punjab Industrial relation Act 2010 Yes as a last resort

Punjab Industrial relation Act 2010

Yes Strong role

Yes

Strong and good relations

Strong and good relations

Strong and good relations are necessary.

20

As a consolatory a medium between two parties. Then labor courts solve the problem.

Consolatory and disputes solver medium

consolatory

21

Labor courts also Then disputes high court. will be solved in labor courts. Highly centralized no Two members No

22 23

Management take Any input of labor before putting the extra work load? the decision

How many members are involved from union side in solving of disputes?

Two members from labor side

Two or three members

Labor relations

Page 26

24

How many members are involved for management side in solving of disputes? From management side, What you think unions have to exist in future or not?

Two members or more from management side Yes they have to exist because union work for both side benefits.

Two members

Two or more but at most 5

25

Yes they have to exist for welfare of employees.

Director recovery WASA says union has no role so they dont have exist.

Labor relations in WAPDA (MEPCO)

The labor relation in MEPCO is very cordial. The Union activities are allowed
under PIRA 2010 which has recently replaced IRA 2008. Under the new law in every organization there is CBA (collective bargaining agency) which is true representative of employees on job related issues. Employees can join trade union which is registered under the law and CBA is selected through referendum. The CBA is a legal body to negotiate and bargain with management on labor issues. At present Pakistan WAPDA labor union is enjoying the status of CBA in MEPCO. The CBA have right to submit agenda to management for arranging the meeting of work council within 15 days. The meeting is normally held twice in a quarter. During work council meeting the representative of union and management sit side by side to discuss the agenda point raised by the CBA union and decisions are taken after lot of deliberations to redress the genuine grievances. The environment during meeting is quite conductive .Both management and CBA often mutually agrees on the labor issues The good relationship can be viewed from the fact that the CBA union has never reported to strikes or agitations for getting their demands approved by the management .The main aim of the CBA union is work for the welfare of the employees .The management of MEPCO is always willing to redress the genuine concerns of the CBA union .

Labor relations

Page 27

CBA now provincial:

According to the assistant director legal and labor of the MEPCO, now the CBA of MEPCO is in the provincial list instead of Central CBA which was in under the federation now the CBA of MEPCO is in under the provincial government.

Issues :
There are three types of issues in handling the labor relations which are given below 1) Admin 2) CBA or non CBA 3) Legal issues

Labor relations

Page 28

These issues then are solved with the help of different committees for example if the labor issues arise then a committee is made which consist of following members Two management members

Two labor union members One consolatory Then a consolatory member solves the disputes between the labor and the management

CBA in MEPCO: In
MEPCO the CBA is very strong and contain well motivated union leader. We saw in our survey that there is a very good labor management relation in MEPCO employees has a free will to join the union and if organization stops the employees to join the union then they breech the labor laws if they do so. Registrar conducts elections after every 3 years or in 1 year if possible for the union representative and their tenure depends upon the working of the union leader their performance . The most important thing they say that there was no disputes arises in between labor and management because of the hardworking of CBA because also of the reason that management believe that good relations are necessary for the progress of every organization i.e. labor management relations are necessary . Thus the CBA in MEPCO is very strong and all the workers are satisfied with labor management relations.

Grievances: CBA
also play a key role in the grievances and MEPCO follow the formal grievance procedure to end the grievances of the employees. . During work council meeting the representative of union and management sit side by side to discuss the agenda point raised by the CBA union and decisions are taken after lot of deliberations to redress the genuine grievances.

Labor relations

Page 29

The CEO in WAPDA is the ultimate competent authority who gives instructions to HR department if disputes arise.

Labor relations

Page 30

Legal Constraints:
MEPCO is facing a number of legal constraints. In order to deal such legal constraints MEPCO has set up a legal department under Manager ( labor and legal) to effectively deal such problems . Common legal constraints are

1). Transfer of union office bearers:

Under labor Laws / I.R.A 2008 no Union office bearers (shop steward) can be transferred. Whenever any office bearer is found involved in corruption or irregularities he takes shelter of IRA 2008

2) Award of punishment:
The unwanted employees cannot be fired without adopting a legal lengthy procedure. Any legal discrepancy in taking disciplinary action against the employee is challenged in the courts. The Enquiry officers are not trained and exultancy in most of the cases employees gets relief from the court

3). Ban imposed by Government:

Most of the time Government put a ban on recruitment. Resultantly the work suffers because fresh blood cannot enter the organization due to ban. Government often bans the purchase of office equipment like computers vehicles fax machine photocopier. The management cannot provide necessary support to the managers for smooth working to achieve the desired goals.

4). Quota system in employment:

The government has imposed provincial quota system in recruitment of employees. This practice is against the spirit of merit. The company is bound to follow the quota system although competent person from a particular province may not be available. This results into recruitment of in competent and sometime unwilling workers.

5). Unfair labor practice:

The management cannot involve into unfair labor practice against employees under IRA 2008 which is offence under the law. The management cannot victimize any worker on involvement in union activities. Labor relations Page 31

Labor relations in SNGPL (SUIGAS):

The labor relations in SNGPL are very good in conditions. The HR department
of SNGPL is located at LAHORE in the main headquarter but in Multan all the relations handle by Admin officer and they perform the Hr. Functions which is not a very good sign. In SNGPL there is one CBA union (PEER employee union MULTAN) which is registered union under PIRA and one non CBA union (Itehad Mazdoor group union) . The tenure of the CBA union is two years and CBA union selected in 2008 elections. The relation between the management and the unions are in good sense during our visit we see that relations between the employees and the management are very good because they believe that labor relations are of extreme importance. Without this management cant do its job Management of Sui gas said that there is no role of management in creating unions and management also doesnt motivate and employee to join the unions. It is just on an employee wills that whether he want to join union or not. Most of the employees we find that they want to join the union because of many benefits of unions given to employees by the union like pension and security benefits.

CBA in SNGPL:
The CBA in SUIGAS is very strong because of their union leader name CH.G.Rasool Gujjar . He is well motivated person and works a lot for their union and workers Relationship between CBA & Non CBA Unions is quite similar to the relationship which can exist between two competitors. This means that there are conflicts that occur every now and then but when one union is elected and declared as CBA then the other union the Non CBA follows the decisions of CBA union. When we talk to CBA Leader about this, he said that every decision of CBA Union affects both CBA & Non CBA union Labor relations Page 32

workers, so we cant take wrong decision for our own workers.CBA in SNGPL now provincial according to the new act of 2010.

Labor relations

Page 33

In general the relationships between management and labor are very good. No strikes what so ever. They solve their matters which mutual consent. So one can say that the role of management and union is quite good and they are positively contributing towards organization. CBA union also seems to be quite satisfied with this whole scenario. Because of the no role of management CBA itself contributing toward the matters and solve it clearly. Although that there is no major conflict between management and labors but still few of the labor believe that things can get even better if management cooperate with them relating to their transfers. So overall there is a healthy relationship between management and union labor.

Grievances Handling:
In case of any grievances, they usually create a panel who listens to them and then try to take reasonable measures according to each in every case. The panel consists of the following persons Two persons form management side Two members from union side One arbitrator (legal person)

Whatever the decision is made if it is against the labor then the labor courts are the last resorts for them like in every organizations Although that there is no major conflict between management and labors but still few of the labor believe that things can get even better if management cooperate with them relating to their transfers. So overall there is a healthy relationship between management and union labor. GM and MD are the two major persons in that regard, who are competent authority to solve such issues because main HR department is in headquarters which is located in Lahore. So here the main issues are just all about transfers or perhaps leave issues. So no serious issues matters here related to HR department.

Labor relations

Page 34

Labor relations

Page 35

Labor relations in WASA (water and sanitation authority MULTAN)

The labor relations in WASA are in moderate condition not very strong but are in smooth
manner according to the CBA (GHAZI) CEO. Under the new law in every organization there is CBA (collective bargaining agency) which is true representative of employees on job related issues. Employees can join trade union which is registered under the law and CBA is selected through referendum. The CBA is a legal body to negotiate and bargain with management on labor issues. There are three unions registered for WASA one CBA and two non CBA UNIONS. The tenure of the CBA union was 3 years but now according to the new PIRA (Punjab Industrial Relation Act) now the tenure of the union is 2 years after 2 year elections are conducted which is conducted by registrar because of the new act now unions are in provincial list but in old days it was central and in federation list.

CBA in WASA:
In

WASA there three unions registered which are of the following

1) One CBA union (GHAZI union) 2) non CBA union (SHAHEEN union) 3) non CBA union local

A CBA union was elect in 2006 in elections of labor union and due to his consistent good performance was elected once again in referendum of 2009 and working till their tenure at end of 2011. There was no disputes arises with management and their relations with management are very smooth but the most important thing we observe is that the relation between the CBA and the Non CBA is not very strong . Non CBA leader have some serious personal clashes with CBA leader thus its all just a political game. Management is satisfied with the union environment which can be shown by this is that there was no clashes Labor relations Page 36

between management and union. But in past many serious clashes were occur between management and the unions in the year 2000. A serious clash occur between previous director recovery (Mr. M. Jan Malik) in year 2000 who was involved in corruption and union take action against him after a serious deadlock between union and management at last union was successfully to get rid of director ,in this serious issue 13 cases were filed against the union by the management . In WASA there is a strong impact of union (ghazi). CBA union gives many benefits to the workers and labors like security and pension funds; they totally follow the PIRA ethics and structure.

Union leader:
Union leader of CBA in WASA is playing a key role for their union .He is very kind to their union members during our visit he guide us and tell us a key issues is in progress. CBA union play the following role in WASA which are given below

1) security for labors

2) benefits for labors like pension funds

3) spokesperson on behalf of labors 4) grievances

Grievance procedure:
If disputes arise between the labor and the management then the committee is formed to solve the disputes. CBA union in WASA plays a key role in grievances and provides a solid support to the aggrieved party. The committee consists of two members from management and two members from union and arbitrator which is a legal advisor from high court play a medium role. If disputes not solved then the aggrieved party has a right to knock the door of labor courts which play a role of last resort. Labor relations Page 37

MD WASA is the ultimate competent authority in WASA and issues orders and to solve the problems.

4.3
WAPDA:

Conclusion

Wapda is highly centralized government organization, the labor relations in wapda(mepco) are very strong because of the good labor management relations .Management believes that good labor management relations are necessary for the development of an organization therefore the CBA in Wapda play a key role in the relations because they believe that a strong support can build a power base for a developing organization thus a sound labor relations can be working in Mepco. SNGPL: The labor relations in Sngpl are good in conditions but In Multan section there is absence of Hr department all the Hr functions are performed by Admin Officer who handle all the labor relations and disputes if arises .The CBA in SNGPL are very strong in position and they also of the view that good labor relations are necessary for the establishment of an organization thats why they working on this agenda fairly.

WASA: In Wasa the labor management relations are moderate. The CBA working there is highly competent and it can be says that good relations will be found in future because both management and union working on one agenda but due to absence of HR department in WASA there is a strong need to handle the relations because above 1400 workers and employees are working there . Labor relations Page 38

The trend of data shows that every organization has its own organizational culture, values, and practices. Management of each organization has its own rights & wrongs, its own preferences, & perspectives therefore labor relations play a key role in the development of an organization because if both labor and management are competent then it can give a strong position.

4.4

Recommendations:

As we have visited three different organizations and the data we have collected and analyzed shows that whatever relations are being exercised in the organization, there are certain recommendations on the basis of our experience and observation, we had during our visit to these organizations, which are given below: labor relations are very much necessary for the organization but in most of the organization it can be ignored because of continuous involvement of the union most of the union leader just play the political game to build their support so it can be necessary both management and the union have to be fair in their working to give the working role for their organization. There is absence of HR department in WASA Multan and SNGPL Multan sector due to absence of this they have to face most of the issues so they have to develop the department in order to cope with different labor situation. The labor representatives to have to give a chance to have a say in most of the management decisions because in most of the points we saw that management ignored the labor unions and took the decisions .At least they have to give a chance to clear their points. The relations between the CBA and the non CBA are very much necessary for the harmonious labor relations so it is necessary for the organizations development that Labor relations Page 39

relations have to exist between them and Non CBA has to play role of friendly opposition. Full participation from both sides is critical to effective labor-management relationships. Both parties should staff labor- management committees with individuals who have the authority to problem-solve, make decisions and set appropriate goals for action and future follow-up.

Bibliography:
Human Resource Management Dessler Personnel the Management of People at Work Dale S.Beach Gray

References:
The Rebirth of Labor Relations Vol. 54 No. 2 A convergence of forces will make labor relations expertiseand HR professionals who have itmore valuable. By Eric Krell.

Chase, Richard B. and Nicholas J. Aquilano. Production and Operations Management. Homewood, Illinois: Irwin, 1985 .Hughes, Charles L. Making Unions Unnecessary. New York: Executive Enterprises Publications Co., Inc., 1976.
Khan Sarfaraz Ali and Dr.Nasima Khatun. A Handbook on HR Solution (2009). (ISBN: 978-984-33-0505-3). Dhaka.

Labor relations

Page 40

Internet Sources:

www.wapda.gov.pk/ www.mepco.com.pk/ www.sngpl.com.pk/ http://www.mda.gop.pk/Organisation.asp www.ehow.com/

Labor relations

Page 41

Annexures: (References)
(Visiting cards)

Labor relations

Page 42