Course: Labor and Industrial Relations Chapter 7: Wage Issues under Collective Bargaining Lecturer: Ol Ro, Group 3 1.Roeun Nakry 4. Meach Chansothea 2.Hong Sothary5. Phorn Dara 3.Mor Taimeang PAÑÑĀSĀSTRA UNIVERSITY OF PAÑÑĀSĀSTRA UNIVERSITY OF CAMBODIA CAMBODIA Commitment to Excellence Commitment to Excellence
21
Embed
Chapter 7: Wage Issue Under the Collective Bargaining
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Course: Labor and Industrial Relations
Chapter 7: Wage Issues under Collective Bargaining
Lecturer: Ol Ro,Group 3
1.Roeun Nakry 4. Meach Chansothea
2.Hong Sothary5. Phorn Dara
3.Mor Taimeang
PAÑÑĀSĀSTRA UNIVERSITY OF PAÑÑĀSĀSTRA UNIVERSITY OF CAMBODIACAMBODIA
2. Determination of the Basic Wage Rate Comparative Norms Ability to Pay Cost of Living
1. Wage Adjustment
2. Wage Differentials
3. Overtime and Flextime
4. Job Evaluation and Comparison
5. Concessionary Bargaining
6. Two-tier Wage Systems
1. What is Collective Bargaining?
the negotiation, administration, and interpretation of a written agreement between two parties, at least one of which represents a group that is acting collectively, that covers a specific period of time
There are four major issues deal with in collective bargaining :
1. Wage Related Issues 2. Employee Benefits or Economic Fringe3. Institutional Issues4. Administrative Issues
2. Determination of the Basic Wage Rate
• Comparative NormThe presumption that the economics of a
particular bargaining relationship should neither fall substantially behind nor be greatly superior to that of other employer-union relationships. Generally, it is good to keep up with the crowd, or to lead it if necessary.
2. Determination of the Basic Wage Rate Cont.
• Ability to Pay
Ability to pay has limited usefulness; focus is on firm performance, not on employee performance.
Unions expect a firm in good financial condition to pay higher wages, but not reduce wages when the condition of the firm declines.
2. Determination of the Basic Wage Rate Cont.
• Cost of Living
The firms have to think about the expending of the worker in order to consider how much to pay for them in a good wage.
Employees have to pay for housing expenses, utilities, food costs, transportation, taxes, , and healthcare. etc.
3. Wage Adjustment
There two primary methods of wage adjustment during the life of the contract: escalator clauses and wage reopeners.
1.Escalator clauses: The philosophy behind the incorporation, also know as cost of living adjustment provisions.
3. Wage Adjustment Cont.
2. Reopeners
Collective bargaining contracts require that the party that desires to change wages give a written notice to the other party within a specified period.
Wage and Price Control
Comprehensive government restrictions on the maximum rate at which wages and prices may increase during a specified time period.
4. Wage Differentials
Collective bargaining contracts provide for
different rate of wages for different employees
performing the same kind of work and holding
down the same types of jobs.
4. Wage Differentials Cont.
Wage differentials base on the consideration:
The degree of skill The strain of work Experience involves Period of time The responsibility of undertaken The disagreeableness of task
• Job evaluation is the systematic process for assessing the relative worth of job within an organization.
• Job comparison is in many cases, the manager’s answer to intransigent union opposition to job evaluation where this remain a force.
7. Concessionary Bargaining
Concessionary Bargaining
is a term used in labor law. It is a kind of collective bargaining in which the trade unions surrender or give back previously gained improvement in pay and condition in exchange for some from of job security.
In conclusion, in this chapter focus about how employer and employee negotiate in wage issue.
There are three factors that determine the basic wage rate like comparative norm, ability to pay, and cost of living.
And we understand the two primary methods of wage adjustment during the life of the contract, wage differentials, overtime and flextime, and two tier wage system.