Answer to Question #188208 in Management for Vaibhavi

Question

Swan Pharmaceuticals is a leading company with production unit in 2 states and HO in Mumbai. Being in the essential business, the factories were not shut during the lockdown period for pandemic. However, the staff in HO did not report to work for a few months and received their salaries in full. However, the workers in the factory worked all through the pandemic. Now, the workers are asking for extra compensation for the months they worked during the pandemic, however, the management feels, offering full salaries was enough. Workers have given a notice for a two days’ strike with a date. The young union leader Prakash wants approach the management and suggest Collective Bargaining. Please answer the following questions in reference to this case.a. Why do you think Prakash is suggesting Collective Bargaining for resolving the issue?

Answer 1

Collective bargaining is the line of negotiation between an employer and a group of employees to have an amicable solution or agreement to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers.

Resorting to collective bargaining to solve misunderstandings in a working environment between employers and employees, just like Prakash has done. The collective bargaining way will ensure that proper negotiation between the employees and HO. And will provide a strong bond between employees led by Prakash and HO as the employer. Therefore, Prakash preferred collective bargaining to give a chance for negotiations and have a peaceful agreement that serves both the employer and employees than a strike that halts operations. Through collective bargaining, negotiations will proceed as operation at work proceeds as usual.