Introduction to Business s2

CHAPTER 9

LABOR RELATIONS

Brief history of unionism in Turkey has been provided in the pages following this chapter for your study. A more indebt study is expected to be completed by the end of our studies and findings.

TURKISH LABOR LEGISLATION

In 1936 the first Labor Law 3008 passed the parliament and remained in effect for 31 years. In 1967 the Labor Law was re-enacted under the number 1475. Following Turkey’s enterance to the United Nations, and the democratisation movement which led to multiple party application, the need for additional laws in the social area became apparent. This led to the enaction Labor Courts Law, Marine Labor Law, and Press Labor Law, to cover the workers in those areas.1

During the following years the Labor Law, and the supporting laws, together with their related regulations, have been amended to meet the needs of the country, and the workers, in the labor field.

Following are the applicable laws in this field.

THE APPLICABLE LAWS RELATED WITH LABOR RELATIONS ARE:

ACT 1475 LABOR LAW (İŞ KANUNU)

ACT 5953 PRESS LABOR LAW (BASIN İŞ KANUNU)

ACT 854 MARINE LABOR LAW (DENİ Z İŞ KANUNU)

ACT 2821 TRADE UNIONS ACT (SENDİ KALAR KANUNU)

ACT 2822 COLLECTIVE BARGAINING, STRIKE AND LOCKOUT LAW (TOPLU İŞ SÖZLE Ş MES İ , GREV VE LOKAVT KANUNU)

ACT 3308 APPRENTICESHIP AND OCCUPATIONAL TRAINING LAW (ÇIRAKLIK VE MESLEK EĞİ T İ M İ KANUNU)

ACT 506 SOCIAL SECURITY LAW (SOSYAL Sİ GORTALAR KANUNU)

ACT 5521 LABOR COURT LAW (İŞ MAHKEMELER İ KANUNU)

LABOR UNIONS

The first Unions Law was passed in 1947 enabling unionism in Turkey but did not have a very long life. It was not until the acceptance of the 1961 Constitution that the workers were given the benefits of; right to work, freedom of unionism and collective bargaining and strike rights. The Trade Unions Act, still in effect today, was originally passed in 1963 under number 274. This en- abled the workers to bind together to fight the poor wages, inefficient and disturbing working con - ditions, long working hours, ill treatment of the management towards the workers and bad child labour practices which were even exercised by the government institutions.

The first few years were a big struggle between the workers who wanted to get their right extend- ed as soon as possible and the employers who did not want to loose the grip they had on the work force, until things started settling down with professional look of both sides to the issue. Finally, the Trade Unions Act 2821 was passed by the parliament in line with the 1982 Constitution. WHY WORKERS JOIN UNIONS

Labor Union is an organisation of employees that is formed to deal collectively with an employer so as to advance the employees’ interests. Employees join unions for a number of reasons. 1. More pay 2. Better working conditions 3. Strength in number. 4. Union members are represented in collective bargaining by professional negotiators. 3 5. There is a feeling of power the employees get from union membership. There is a strong belief among the employees that the union membership keeps employers interested in and concerned with their well being.

WHY EMPLOYERS RESIST UNIONS

In general, the employers believe Unions:

1. Restricts management’s freedom of action. 2. Reduces employees’ loyalty to the firm. 3. Productivity problems arise on restrictive work rules.

HOW ARE UNIONS ORGANIZED

TYPES OF UNIONS

CRAFT UNIONS Labor Unions that are organised by craft or trades such as Printers (Bası m- İş ), Airline Captains (Türk Hava Yollar ı Pilotları Sendikas ı ), Press Workers (Bas ı n- İş , etc.)

INDUSTRIAL UNIONS Labor Unions that are organised by and according to industries (textile, metal working metal working, mining, war industry).

LOCAL, NATIONAL & INTERNATIONAL UNIONS

LOCAL UNIONS Relatively small union groups, usually part of a national union or a labor federation, made up of those who work in a certain geo- graphic area. (Ankara Harb-İş Sendikas ı )

NATIONAL UNION Nation wide labor organised to represent workers in a particular craft or industry, nation wide. (TOLEYİ S)

UNION CONFEDERATION (TURK-İŞ Konfederasyonu, DISK and HAK- İŞ )

INTERNATIONAL UNION FEDERATION (AFL-CIO) AFL (American Federation of Labor) - CIO (Congress of Industrial Organisations) has over 13.7 million members throughout the world in almost 100 affiliated unions.

UNION OBJECTIVES

 Improving Member’s Working Condition and Standard of Living

1. Unions seek to improve their members’ standard of living by bargaining over pay and benefits.

100 2. Unions bargain for better working conditions for their members. 3. Job security. A very important objective for its members..

Turkish Daily News, July 26, 2000

 Improving Union Security

Union Security is the right of the Union to represent a firm's workers. There are 4 types of union security: 1. Closed Shop Employer may hire only union members. Very much pro-union. hardly acceptable by management. 2. Union Shop A business may hire non-union workers even if its employees are unionised. But new workers must join the union within a reason- able time. 3. Agency Shop All employees for whom the Union bargains must pay dues but need not join the union. 4. Open Shop An employer may hire both Union and non-union labor. Employ- ees need not pay dues to the union.

 Right to work laws

 Lobbying is efforts to influence the passage of laws or their administration or en- forcement.

HOW UNIONS GET NEW MEMBERS

 Direct contact  Hearing  Election

In Turkey the only method of getting new workers is direct contact, where the new worker is ap- proached by a Union Official, Union Jobsite Representative or Union Shop Steward and the worker is persuaded to join the Union having majority at that particular workplace. 101 THE COLLECTIVE BARGAINING PROCESS

A- The Collective Bargaining Process. Collective bargaining is the discussions between the employer and the authorised union representatives to set the working conditions, wages and fringe benefits, working hours.

1. Preparing to bargain. The union representing the workers at a certain jobsite (work place) has the rigtht to invite the Employer to Collective Bargaining to cover its members. However, in order for the union to be elligible to sit for bargaining it has to; a) Represent over 10% of the workers in that industry, or, b) Represent over 50% of the workers at that work place, to have the authority for this purpose. If the employer recognises the union as the authorized party two sides meet to set the date of the first meting within six days. If no agreement can be reached by the parties on the commencement date of the negotiations then the matter is taken by either party to the Regional Labor Directorate who decides within six days when the meetings are to start.

In case the employer does no believe that the subject Union is elligible to negotiate for the employees of the work place, it can take the matter to the Labor court within six days from the receipt of the invitation. If the Labor court decides the Union to have authority at that work place, the employer has the right to take the matter to the Supreme Court within eight (8) days with their objection. The Supreme Court has to decide on this matter within 15 days from the date and time of application. If the Supreme Court refuses the objection, the Union will have the authority to represent the workers. If it accepts the issue the Union will not be given the authority to represent the workers at that work place.

Once the auhority is obtained by the Union, they have to invite the employer to meet for collective bargaining within 15 days from the date of the decision. If this is not done, if 15 days is passed, the Union will loose the right to bargain with the employer.

It is obvious that timing is very important in the labor matters. The stated times will finish at 1700 hours on the last specified day.

2. Bargaining in good faith. If we look at the collective bargainig pproposals lately we can see that there it is very difficult to alk of good faith in most cases. The unions usually bases its demands on the monetary issues and they come forth with rather high demands. There are two reasons for this purpose. (1) is to show to the members how much they are thinking of their needs, (2) to leave a margin for bargaining. In exchange for this demand the employers usually reply with a (0) increase pointing out the economic hardships. Thus from minute one the parties are upset with each other’s proposals which leads to tense discussions from the start.

3. Dealing with Union – Management disputes.  Conciliation (uzlaş t ı rma)  Mediation (arabuluculuk)  Arbitration (tahkim, hakem)

4. Signing the agreement. Once an agreement is reached on the issues of the collective bargaining a document is prepared and signed by the two sides, showing the duties and obligations of the employer and the union. This document is the Collective Labor Agreement. One signed copy of the collective labor agreement is given to either party and three copies are presented to the Regional Labor Directorate for their use.

B- Grievance Procedures. Grievance is a complaint that is filed against a condition thought to be unjust or wrong. Labor Agreements usually have procedures incorporated in their body to handle griveances. These procedures would differ from agreement to agreement.

102 One effective way would be to form a Grievance Commitee at each work place to handle complaints and problems. These commitees could be organised with representatives of the two sides (employer and union) to jointly look into and handle such issues.

Weapons of Labor and Management.

Labor’s weapons ► Strike Temporary stopage of work by workers who want management to accept their union’s demands. ► Picket Labor activity in which union members march in front of the company enterence to persuade non-striking employees to walk off the job and to inform customers and others to stop doing business with the company ► Boykott A union activity in which members an sympathisers refuse to buy or handle the product of the subject company. ► Corporate campaigne

Turkish Daily News, April 27, 2000

Management’s weapons ► Lockout A management tactic whereby workers are not permitted to enter the work place to force the union to accept management’s terms. ► Injunction ► Strikebreaker ► Contracting work our ► Employer’s associations (MESS)

İş Yasaları ve ilgili Mevzuat – Tankut CENTEL BETA Basım Yayım Dagıtım A.Ş., 9. Bası, İstanbul 1995

DISCUSSION

1. Why do employee choose to join unions? 103 2. Which are the most important isues in the collective bargaining process?

3. How can worker movement influence the politics? 4

KEY WORDS

agency shop arbitration authorisation cards boycott closed shop collective bargaining corporate campaigne craft unions decertification grievence industrial unions injunction labor federation labor relations labor unions lobbying local union lockout mediation national union open shop picketing right-tp-work laws shop steward slowdown strike strikebreaker union confederation union shop

104 HIGHLIGHTS of the HISTORY of UNIONS and THEIR ACTIVITIES in TURKEY

By Mustafa BOZCAADALI, Attorney at Law

There are some views which dates unionism in Turkey back to XII or XII the centuries. I would envision that it would not be useful to date unionism that is exactly an institution that has arisen with the advent of the industrial revolution.

Following the industrial revolution in Europe, production in the Ottoman Empire took place at enterprises (worksites) where 3-4 people were employed. It was only during the 1840’s that factories producing goods for the palace and the military started their establishments.

Provisions of the Police Regulation were issued in 1845. This regulation gave authority to the police force to punish workers who left their jobs intentionally. Although these were precautions taken against the individu- als, during this period existence of some groups with tendencies towards union organisations were observed and formation of groupings started in the factories.

The first workers organisation, “Amele Perver Cemiyeti” was formed in 1871. In 1872 the dockyard workers organised the first strike.

The next organisation in the form of a union, “Osmanlý Amele Cemiyeti” was established in 1895.

There was a succession of fifty strikes organised after the second constitutional monarchy was proclaimed in 1908. Although the reason for the strikes appeared to be of a social content which happened to be improve- ment of working conditions, later these strikes were to be referred to as strikes of liberty. “Tatili Eþgal Kanunu”, which was enacted as a reaction to these strikes, banned the formation of unions and associations, and organisation of strikes.

It was in 1909 that the Law of Associations (Cemiyetler Kanunu) was enacted to regulate the right for forming organisations.

Following the proclamation of the republic, the right and freedom of forming associations were granted. In 1923 the economic policies of the new state was determined at the Izmir Economy Congress (Izmir Iktisat Kongresi), where the importance of the workers for the economic development of the country was empha- sised. Following this significant event, the “Amele Teali Cemiyeti” was formed.

However, “Takrir-i Sukun Kanunu” came into effect in 1925 prohibiting all worker organisations until 1926 when the Law of Obligations (Borçlar Kanunu) came into effect creating an environment of freedom on the contracts. It was it 1936 when the first Labor Law 3008 was enacted and remained in force for 31 years.

Here are some of the historic events and periods in the labor area in Turkey:

1. Law of Associations was enacted in 1938 and the first Department of Labor was established within the Ministry of Economy.

2. In 1945 Ministry of Labor was established and organised throughout the country. Same year the workers social insurance was introduced.

3. The Labor Assembly convened for the first time in 1947. The first Union Law was enacted that year.

4. Employers Association in textile and metal industries was established in 1949.

5. In 1950 the Confederation of Free World Labor Unions team visited Turkey.

6. The first confederation under the name of TURK-IS was formed in 1952

7. In 1957 the government closed down seven labor federations representing unions of various branches of industry.

105 8. In 1960 the TURK-IS Confederation became a member of the Confederation of Free World Labor Unions.

9. In 1963 the Unions Law and the Collective Labor Agreement, Strike and Lockout Law was enacted. The first Collective Labor Agreement was concluded between the Hacı Bekir Müesse- sesi and Gı da-I ş Union. The first strike took place at Bursa organised by the Motor Vehicles Workers’ Union.

10. Central Management offices of the Confederation of Employers Association of Turkey (TISK) moved from Istanbul to Ankara in 1965. Displaying solidarity, the employers implemented lock out at 54 worksites against Deri-IŞ Union.

11. The second Labor Law came into effect in 1967.

12. The famous 23 Principles of the Turk-IŞ Confederation was accepted at the General Congress in 1968.

13. 12 March ultimatum to the government was issued in 1970. The third Labor Law No. 1475 came into force.

DISK organised meetings in protest of the State Security Courts and illegal strikes were effected.

The fundamentalist HAK-IŞ Confederation was formed.

14. The new Unions Law and Collective Labor Agreement, Strike and Lockout Law was enacted in 1968.

15. The Unions Law and Collective Labor Agreement, Strike and Lockout Law was amended once more in 1988.

A strike was called by Seluloz-Iş strike at SEKA jobsites that lasted for four months.

Ankara, 22 August 1997

LABOR LAW 1475

Date passed : 25 August 1971 Date published : 01 September 1971

SECTION I - GENERAL PROVISIONS 1. Definitions 2. Area of jurisdiction 3. Notification of workplace 4. Date of application 5. Excemptions 6. Industrial and commercial work 7. Requirement for written notification 8. Continious and temporary work

SECTION II - SERVICE CONTRACT 9. Written contract 10. Group contract 11. Format of the written agreement 12. Trial period 13. Notification at termination 14. Severance pay 15. Employer’s responsibility 16. Worker’s right to terminate without notice 17. Employer’s right to terminate without notice 18. The right to use the termination right 19. Leave for new job search 20. Employment document 21. Employment and ID certificate 22. Opening of Canteen 23. Employer’s obligation to pay 24. Result of termination from work 25. Employment requirement

SECTION III - WAGE 26. Definition of the wage 27. Work requirement arising from the law 28. Protected part of the wage 29. Duties of the public entities, its side entities 30. Wage slip 31. Deductions for damages 32. Deductions from wages 33. Minimum salary 34. Half-salary 35. Overtime pay 36. Compulsory overtime 37. Force major overtime 38. Saturday pay 39. Closing on holidays and general off days 40. Protected rights 41. Weekly day of rest pay 42. General holiday pay 43. Weekly day of rest during the week 44. Temporary unemployment 45. Weekly day of rest pay according to pay status 46. Pay not within weekly day of rest pay 47. Payment of percentages 48. Documentation of the percentages 49. Annual leave with pay 50. Determination of annual leave with pay right 51. Conditions considered as worked 52. Application of the annual leave with pay 53. Change of the employer 54. Leave pay 55. Prohibition of working during leave period 56. Leave pay at termination of contract 57. Regulation (covering leaves) 58. Leave log 59. Insurance premium 60. Prohibition on reduction of pay

SECTION IV - ORGANIZATION OF THE WORK 61. Work period 62. Periods considered as working time 63. Mean time 64. Rest period 65. Night period 66. Preparation, completion, and cleaning time 67. Employment age and prohibitions on child labor 68. Prohibition of employment under ground and under water 69. Prohibition to work at night 70. Prohibition to work at maternity 71. Employee registers 72. Regulations

SECTION V - WORKER HEALTH AND SAFETY 73. Health and safety conditions 74. Health and safety regulations 75. Seizure of work and closing of work place 76. Worker health and work safety board 77. Prohibition of alcohol and drug use 78. Heavy and dangerous work 79. Health report for heavy and dangerous work 80. Health report for workers under 18 81. Regulation for pregnant and breast feeding women 82. Various regulations

SECTION VI - WORK AND WORKER RECRUITING 83. Duties of work and worker seeking 84. Duties of Work and Worker Recruiting Organisation 85. Prohibitions 86. Regulation 87. Priority at transportation

SECTION VII - AUDIT AND CONTROL OF WORK 88. Authority of the government 89. Responsible authority and persons 90. Duties of the responsible person 91. Exception 92. Inspections by other sources 93. Inspection register 94. Responsibilities of Employee and employer 95. Assistance of the security forces

SECTION VII - SOCIAL INSURANSE 96. Function of the government

SECTION IX - PENALTY CLAUSES 97. Penalty related to general provisions 98. Penalty related to employment contract 99. 99. Penalty related to payPenalty related to job scheduling 100. Penalty related to worker health and security 101. (Penalty for illegal opening of the jobsite 102. (Penalty for disregarding “Worker’s Health and Job Security” provisions) 103. (Penalty for not abiding with provisions of Article 75) 104. Penalty related to work and worker organization 105. Penalty related to audit and inspection 106. 107.

SECTION X - FINAL CLAUSES 109 109. 110. (Various laws amended by effect of this law