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Bargaining Process For Amico Holdings-Tutorial

The document summarizes a meeting between union representatives from the Amico Union Group and the Malaysian Trade Union Congress regarding collective bargaining negotiations with Amico Holdings, a timber manufacturing company. The union was formed in 2008 to address working conditions and negotiate wages, benefits, and other employee rights and protections. While the union was approved, Amico Holdings has appealed the decision. The MTUC president recommends pursuing the matter in high court and trying to reach a compromise with the company to avoid a potential strike.

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1K views

Bargaining Process For Amico Holdings-Tutorial

The document summarizes a meeting between union representatives from the Amico Union Group and the Malaysian Trade Union Congress regarding collective bargaining negotiations with Amico Holdings, a timber manufacturing company. The union was formed in 2008 to address working conditions and negotiate wages, benefits, and other employee rights and protections. While the union was approved, Amico Holdings has appealed the decision. The MTUC president recommends pursuing the matter in high court and trying to reach a compromise with the company to avoid a potential strike.

Uploaded by

KacangHitam
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© © All Rights Reserved
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Download as DOC, PDF, TXT or read online on Scribd
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Bargaining Process for Amico Holdings

Tom had just returned from a meeting with his union friends at the Malaysian Trade Union
Congress (MTUC) and was reflecting on what the meeting was about. He had been working for
Amico Holdings (a timber manufacturing company) for the past 10 years and had seen the
company through ups and downs. The meeting with officials at the MTUC was fruitful, as some
terms and conditions had been drawn up.
Tom had seen that the work conditions had not improved much over the years, and
together with four other colleagues – Muhammad, Taib, Chong, and Sugu – he had formed the
Amico Union Group (AUG) on August 25, 2008. As the leader of the union, Tom felt that it was
time to enter into a collective bargaining agreement between Amico and the newly formed union.
“An application for union recognition was sent out to the minister in December 2009, and it has
already been approved. We now have the green light to enter into a collective bargaining
agreement with Amico Holdings. However, the management of Amico Holdings filed an appeal
against the High Court decision,” said Muhammad. “We need to fight for more wages,
allowances, sick leave, annual leave, retirement, and termination benefits. It is our right!” Tom
exclaimed. “Those are our basic rights,” a crowd of union supporters chanted at the meeting.
The atmosphere at the MTUC office was getting chaotic.
“Several letters have been sent to the industrial relations court. I think we should now
proceed to the high courts,” said the MTUC president. “Tom, please get the documents ready so
we can pursue this matter, and how hopefully we can reach a compromise on this with Amico
Holdings.”
“I hope this matter can be resolved as soon as possible; otherwise, I think we should all
go on strike,” Tom remarked to his secretary.

(a) Why would the management of Amico Holdings not want to go through the process
of collective bargaining?

The reason why management of Amico Holdings does not want to go through the process
of collective bargaining because before a union can negotiate a contract, it must first be
formed or certified. The primary law governing the relationship of companies and unions
is the NLRA, as amended. Collective bargaining is one of the key parts of the act. The act
defines collective bargaining, which we described as the process of negotiation between
union representatives and representatives of management to agree on a collective
bargaining agreement or contract. Although the act requires the representative to be
selected by the employees, it does not require any particular procedure to be used so
long as the choice clearly reflects the desire of the majority of the employees in the
bargaining unit. When workers desire to become the bargaining representative for a
group of employees, several steps leading to certification have to be taken.

Prior to observing the distribution of authorization cards, there are usually signs
of an upcoming union organizing attempt. Some indications might be an increase in the
number or intensity of employee complaints on wages, hours, working conditions, or
management practices;
(b) Explain TWO (2) benefits of going through a collective bargaining process?

Preparation: At the very first step, both the representatives of each party prepares the
negotiations to be carried out during the meeting. Each member should be well versed
with the issues to be raised at the meeting and should have adequate knowledge of the
labor laws. The management should be well prepared with the proposals of change
required in the employment terms and be ready with the statistical figures to justify its
stand. On the other hand, the union must gather adequate information regarding the
financial position of the business along with its ability to pay and prepare a detailed
report on the issues and the desires of the workers. Collective bargaining raises the
wages and benefits more for low-wage workers than for middle-wage workers and least
for white-collar workers, thereby lessening wage inequality.

Collective bargaining is the process in which working people, through their unions,
negotiate contracts with their employers to determine their terms of employment,
including pay, benefits, hours, leave, job health and safety policies, ways to balance work
and family, and more. Collective bargaining is a way to solve workplace problems..
Indeed, through collective bargaining, working people in unions have higher wages,
better benefits and safer workplaces.

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