PREPARATION FOR UPCOMING NEGOTIATION WITH THE UNION

PREPARATION FOR UPCOMING NEGOTIATION WITH THE UNION

by Mr. Supachai Manusphaibool

Regardless of the fact that Thailand (among others such as the US, UK, etc), does not ratify the ILO conventions 87, and 98, the Kingdom’s Labor Relation Act B.E.2518 provides for the rights of employees to organize and join a trade union of their own choosing, to bargain collectively, and to go on strike in support of their negotiation for improvements in their employment conditions.

Over a thousand trade unions were registered over the past 30 years. Some 1,100 trade unions currently exist for around 400,000 members. Their only function is to submit a list of demands for negotiation to improve employment conditions once every one, two, or three years when their CBA expire. Their wish list is simply more of the same i.e. higher pay raise, bigger bonus, increased allowances of all kinds, paid leave for union duties, more holidays, etc. It is not difficult to predict what the union want, or when the list would be made known. It is the duty of HR and employee relation managers to advise top management on what to yield and what to resist, as a guideline for the management negotiation team.

Effective HR department should succeed in convincing the union not to bargain every year, even not to bargain ever at all. Improvements could be made through regular consultative meetings as alternative to annual negotiation.

But negotiation still occurs almost yearly because

1. HR and ER staff turn blind eyes to employees’ grievances. Top management becomes aware of the problem only when work disruption occurs. Negotiation follows.
2. Lack of fairness and consistency in staff management leading to protest activities, and eventually a trade union to formally submit a list of demands.
3. Overlooking compensation relativity even in the wake of staff turn over, difficulties in recruiting. Accumulated grievances lead to protest and negotiation.
4. A blunt response of “no budget” to a reasonable request.

The lack of willingness and sincerity on the part of the management to recognize the union as a bargaining agent lead to foot dragging tactic. A bargaining in good faith to quickly settle the differences will prevent industrial actions such as a go-slow and overtime ban.

We recommend the following preparation to all unionized companies.

1. Check lists of demands in the past to see which ones are the point of conflict, unsettled, or withdrawn. Some will reemerge.
2. Check if management practices are in keeping with the agreement.
3. Check minutes of meeting of the Welfare Committee, and opinions submitted by staff to see what decisions or implementation were made.
4. Check the quality and regularity of staff communication, especially to keep employees informed of the company’s situations.
5. Consider which employment conditions put the company at the disadvantage, and should be brought in for renegotiating.
6. Check what union-management relationship improvements were made from last negotiation to the next.
7.  Supervisors/managers have received leadership training or not.
8. Prepare a list of management staff and develop them to assume the role of negotiators on behalf of the management.

Good preparation will make the next collective bargaining session friendly and fruitful – leading to a new employee relation scenario. We need a joint consultation to replace negotiation replacing the threat of strike and lockout.

Mr. Supachai Manusphaibool is labor relation consultant at MR & TS Company Limited : Labor Laws and Labor Relations Consultancy Company 160/240-242 ITF Bldg., 15th Fl., Silom Rd., Bangrak, Bangkok 10500 Tel : (662) 267-7906, 237-2421 Fax : (662) 233-7416 Email : mrts@truemail.co.th