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Labor Relations and Collective Bargaining

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1 Labor Relations and Collective Bargaining
Chapter 14 Labor Relations and Collective Bargaining

2 Chapter 14 Outline The labor movement
A brief history of the American union movement Why do workers organize? Research insight What do unions want? Union security Improved wages, hours, and benefits for members The AFL-CIO

3 Chapter 14 Outline Unions and the law
Period of strong encouragement: The Norris-LaGuardia (1932) and National Labor Relations or Wagner Acts (1935) Unfair employer labor practices From 1935 to 1947 Period of modified encouragement coupled with regulation: The Taft-Hartley Act (1947) Unfair union labor practices Rights of employees Rights of employers National emergency strikes

4 Chapter 14 Outline Unions and the law (cont.)
Period of detailed regulation of internal union affairs: The Landrum- Griffin Act (1959) Entrepreneur’s HR: Dot-coms and unions The union drive and election Step 1. Initial contact Labor relations consultants Union salting Step 2. Obtaining authorization cards

5 Chapter 14 Outline The union drive and election (cont.)
Step 3. Hold a hearing Step 4. The campaign Step 5. The election How to lose an NLRB Election The supervisor’s role Rules regarding literature and solicitation The new workplace: Unions go global Decertification elections: Ousting the union

6 Chapter 14 Outline The collective bargaining process
What is collective bargaining? What is good faith? The negotiating team Bargaining items Bargaining stages Bargaining hints

7 Chapter 14 Outline The collective bargaining process (cont.)
Impasses, mediation, and strikes Third-party involvement Strikes Other alternatives The contract agreement Strategic HR: and unionization Grievances Sources of grievances The grievance procedure Guidelines for handling grievances

8 Chapter 14 Outline The future of unionism Summary
Why union membership is declining What’s next for unions? Unions and the Internet Employee participation programs and unions Summary

9 After Studying This Chapter You Should Be Able To:
Give a brief history of the American labor movement Discuss the main features of at least three major pieces of labor legislation Present examples of what to expect during the union drive and election Describe five ways to lose an NLRB election Illustrate with examples bargaining that is not in good faith Develop a grievance procedure Page 395

10 Strategic Overview How to deal effectively with unions and grievances
The basics of labor legislations Explain labor negotiations What you can expect during the actual bargaining sessions Page 395 The previous chapter focused on employee benefits and services—always important when dealing with unions. This chapter starts a new part of the book. The main purpose of this chapter is to provide you with information you’ll need to deal effectively with unions and grievances. After briefly discussing the history of the American labor movement, we describe some basics of labor legislations, including the subject of unfair labor practices. We explain labor negotiations, including the union actions you can expect during the union private election. And we explain what you can expect during the actual bargaining sessions, and how to handle grievances, an activity often called contract administration. In the following chapter, Employee Safety and Health, we’ll turn to the techniques managers use to provide employees with a safe and healthy workplace.

11 The Labor Movement US 14% Canada 37% Mexico 43% Brazil 44% Japan 24%
16 Million U.S. workers belong to unions – about 14% of all working men and women US 14% Canada 37% Why are unions important? How did they get that way? Mexico 43% Page 396 Instructor’s notes: There are no right or wrong answers at this point and the questions are meant only to begin the discussion. The answers to these questions will come over the course of this chapter. It might be interesting to ask if any students belong to unions (e.g., musician’s union) or if their parents do or did and what positive and negative consequences occurred as a result of membership. Why do workers join them? Brazil 44% How do employers and unions hammer out agreements? Japan 24%

12 Union History 1790 Samuel Gompers formed the American Federation of Labor - AFL Decline and growth Page 397 As early as 1790, skilled craftsmen like shoemakers, tailors, and printers organized into trade unions In 1886, Samuel Gompers formed the American Federation of Labor - AFL Union membership declined in the 1930’s but hit a high of 21 million in the 1970’s

13 Why Organize? Weekly earnings of union members are much higher than of nonunion workers Better benefits Low morale, fear of job loss, and poor communication help foster unionization Page 397 It does seem clear that workers don’t unionize just to get more pay or better working conditions, though these are very important. In fact, weekly earnings of union members are much higher than those of nonunion workers: about $50 a week more in service jobs, $60 in manufacturing, $130 in government, and as much as $300 a week more in construction jobs, for instance. Union workers receive significantly more holidays, sick leave, unpaid leave, insurance plan benefits, long-term disability benefits, and various other benefits than do nonunion workers. Yet the urge to unionize often seems to boil down to the belief on the part of workers that it is only through unity that they can get their fair share of the pie and also protect themselves from management whims.

14 Research Insight Dissatisfaction with basic bread-and- butter issues
Not non-economic issues Workers must feel helpless to change things If they collectively feel change can occur then unionization may occur Page 397 Studies demonstrate the complexities driving pro-union voting. In one study, it was dissatisfaction with basic bread-and-butter issues like job security and pay, rather than with noneconomic issues like type of work and supervision, that led to pro-union voting (although noneconomic issues were somewhat important, too). Dissatisfied employees must first believe they are without the ability to influence the conditions causing the dissatisfaction. Then enough employees have to believe they could improve things through collective action. Thus, dissatisfied employees who believe the union can help them achieve their goals present a potent combination. Here is how one writer describes the motivation behind the early unionization of automobile workers: “In the years to come, economic issues would make the headlines when union and management met in negotiations. But in the early years the rate of pay was not the major complaint of the autoworkers Specifically, the principal grievances of the autoworkers were the speed-up of production and the lack of any kind of job security. As production tapered off, the order in which workers were laid off was determined largely by the whim of foremen and other supervisors The worker had no way of knowing when he would be laid off, and had no assurance when, or whether, he would be recalled Generally, what the workers revolted against was the lack of human dignity and individuality, and a working relationship that was massively impersonal, cold, and nonhuman. They wanted to be treated like human beings—not like faceless clockcard numbers.”

15 What Do Unions Want? Security Improved wages, hours, and benefits
Closed shop Union shop Agency shop Open shop Maintenance of membership arrangement Improved wages, hours, and benefits Page 398 ff. 1. Closed shop. The company can hire only union members. Congress outlawed this in 1947, but it still exists in some industries (such as printing). 2. Union shop. The company can hire nonunion people, but they must join the union after a prescribed period of time and pay dues. (If not, they can be fired.) 3. Agency shop. Employees who do not belong to the union still must pay union dues on the assumption that the union’s efforts benefit all the workers. 4. Open shop. It is up to the workers whether or not they join the union—those who do not, do not pay dues. 5. Maintenance of membership arrangement. Employees do not have to belong to the union. However, union members employed by the firm must maintain membership in the union for the contract period.

16 The AFL-CIO 3 Union Layers
Gompers’ AFL and the Congress of Industrial Organizations (CIO) merged in 1955, with George Meany as its first president 3 Union Layers Page 399 The American Federation of Labor and Congress of Industrial Organizations (AFLCIO) is a voluntary federation of about 100 national and international labor unions in the United States. The AFL and CIO merged in 1955, with the AFL’s George Meany as its first president. For many people in the United States, it is synonymous with the word union. About 2.5 million workers belong to unions not affiliated with the AFL-CIO. Of these workers, about half belong to the largest independent union, the United Auto Workers (about 1 million members). There are three layers in the structure of the AFL-CIO (and other U.S. unions). First, there is the local union. This is the union the worker joins, and to which he or she pays dues. The local union also usually signs the collective bargaining agreement determining the wages and working conditions. The local is in turn a single chapter in the national union. The third layer in the structure is the national federation, in this case, the AFL-CIO. This federation is composed of about 100 national and international unions, which in turn are comprised of over 60,000 local unions. Local Chapter National federation

17 Unions And The Law 1932-1947 Norris-LaGuardia Act of 1932
National Labor Relations (or Wagner) Act Banned certain unfair labor practices Provided for secret-ballot elections Created the National Labor Relations Board (NLRB) Page 399 Norris-LaGuardia Act (1932) This law marked the beginning of the era of strong encouragement of unions and guaranteed to each employee the right to bargain collectively “free from interference, restraint, or coercion.” National Labor Relations (or Wagner) Act This law banned certain types of unfair practices and provided for secret-ballot elections and majority rule for determining whether or not a firm’s employees want to unionize. National Labor Relations Board (NLRB) The agency created by the Wagner Act to investigate unfair labor practice charges and to provide for secret-ballot elections and majority rule in determining whether or not a firm’s employees want a union.

18 Wagner Act Deemed five unfair labor practices used by employers as “statutory wrongs”: Right to organize Formation or administration of labor unions Discrimination for legal union activities Employees file charges Must bargain collectively Page 400 Unfair Employer Labor Practices The Wagner Act deemed “statutory wrongs” (but not crimes) five unfair labor practices used by employers: 1. It is unfair for employers to “interfere with, restrain, or coerce employees” in exercising their legally sanctioned right of self-organization. 2. It is unfair practice for company representatives to dominate or interfere with either the formation or the administration of labor unions. Among other management actions found to be unfair under practices 1 and 2 are bribing employees, using company spy systems, moving a business to avoid unionization, and blacklisting union sympathizers. 3. Employers are prohibited from discriminating in any way against employees for their legal union activities. 4. Employers are forbidden to discharge or discriminate against employees simply because the latter file unfair practice charges against the company. 5. Finally, it is an unfair labor practice for employers to refuse to bargain collectively with their employees’ duly chosen representatives.

19 Unions And The Law 1947 – The Taft-Hartley Act
Amended Wagner Act in 4 ways: Prohibit unfair labor practices Rights of employees Rights of employers Some strikes can be prohibited NLRB form 501 Page 400 The Taft-Hartley (or Labor Management Relations) Act of 1947 reflected the public’s less enthusiastic attitude toward unions. It amended the National Labor Relations (Wagner) Act by limiting unions in four ways: (1) prohibiting unfair labor practices, (2) enumerating the rights of employees as union members, (3) enumerating the rights of employers, and (4) allowing the President of the United States to temporarily bar national emergency strikes.

20 Unfair Labor Practices
Unions banned from restraining or coercing employees from exercising their own bargaining rights Can’t make an employer discriminate Can’t refuse to bargain in good faith Can’t engage in featherbedding Page 401 1. First, it banned unions banned from restraining or coercing employees from exercising their guaranteed bargaining rights. Some specific union actions the courts have held illegal under this provision include stating to an anti-union employee that he or she will lose his or her job once the union gains recognition, and issuing patently false statements during union organizing campaigns. 2. It is also an unfair labor practice for a union to cause an employee to discriminate in any way against an employee in order to encourage or discourage his or her membership in a union. In other words, the union cannot try to force an employer to fire a worker because he or she doesn’t attend union meetings, opposes union policies, or refuses to join a union. There is one exception: Where a closed or union shop prevails (and union membership is therefore a prerequisite to employment), the union may demand discharge for a worker who fails to pay his or her initiation fees and dues. 3. It is unfair labor practice for a union to refuse to bargain in good faith with the employer about wages, hours, and other employment conditions. Certain strikes and boycotts are also unfair practices. 4. It is an unfair labor practice for a union to engage in “featherbedding” (requiring an employer to pay an employee for services not performed).

21 Taft-Hartley Act Rights Employees
Protects rights of employees against unions Right-to-work laws sprang up in 19 mostly southern states Union membership varies by state 27% Page 402 Rights of Employees The Taft-Hartley Act also protected the rights of employees against their unions. New right-to-work laws sprang up in 19 states (mainly in the South and Southwest). These outlawed labor contracts that made union membership a condition for keeping one’s job. Even today, union membership varies widely by state, from a high of 26.8% in New York to a low of 3.7% in South Carolina (other representative membership densities are California, 16.5%; Florida, 7.4%; Texas, 6.5%; Michigan, 23.9%; and Ohio, 19.4%). 24% 17% 4% 20% 7% 7%

22 Taft-Hartley Act Rights of Employers
Freedom to express their views Can set forth the union’s record Cannot meet with employees on company time within 24 hours of an election Suggest they vote against the union while they are at home Page 402 Rights of Employers The Taft-Hartley Act also explicitly gave employers certain rights. First, it gave them full freedom to express their views concerning union organization. Employers can set forth the union’s record concerning violence and corruption, if appropriate. In fact, the only major restraint is that employers must avoid threats, promises, coercion, and direct interference with workers who are trying to reach a decision. There can be no threat of reprisal or force or promise of benefit. The employer (1) cannot meet with employees on company time within 24 hours of an election or (2) suggest to employees that they vote against the union while they are at home or in the employer’s office, although he or she can do so while in their work area or where they normally gather.

23 Unions And The Law 1959 - Landrum-Griffin Act
A period of detailed regulation of internal union affairs Bill of rights and due process Rules regarding union elections Greatly expanded list of unlawful employer actions Page 403 In the 1950s, Senate investigations revealed unsavory practices on the part of some unions, and the result was the Landrum-Griffin Act (officially, the Labor Management Reporting and Disclosure Act) of An overriding aim of this act was to protect union members from possible wrongdoing on the part of their unions. Like Taft-Hartley, it also amended the National Labor Relations (Wagner) Act. First, the law contains a bill of rights for union members. Among other things, it provides for certain rights in the nomination of candidates for union office. It also affirms a member’s right to sue his or her union and ensures that no member can be fined or suspended without due process, which includes a list of specific charges, time to prepare a defense, and a fair hearing. This act also laid out rules regarding union elections. And it regulates the kind of person who can serve as a union officer. Senate investigators also discovered flagrant examples of employee wrongdoing. Employers and their “labor relations consultants” had bribed union agents and officers, for example.

24 Entrepreneurs+HR – Dot.coms and Unions
Not immune to unionization Many dot.coms doing old company tasks Benefits evaporated after bubble broke Many are overly lax Don’t lose touch with your employees Page 403 There are many reasons why dot-coms are not immune from unions as their entrepreneur founders thought they’d be. For one thing, many employees at “new economy” online retailers such as are doing very “old economy” tasks like loading and unloading trucks and packing shipments—precisely the sorts of jobs that unions successfully organize in traditional bricks-and-mortar companies. Even many of the Web designers, programmers, and other high-tech employees—who traditionally see themselves playing big roles in their dot-com companies—got increasingly frustrated as stock options lost most of their value in 2000–2001 and dot-coms went out of business or shrank drastically. And when it comes to attracting unions, many of these entrepreneurs have been their own worst enemies. Focusing almost all their resources on building scales and meeting customer demand, many paid little attention to writing personnel policies, developing effective performance appraisal systems, or staying in touch with employees’ concerns. As one labor attorney puts it, “they have been lax about overtime, pay scales, and just having an employee handbook with policies and procedures clearly defined The high-tech industry has always been so confident that none of their own would ever want the union that they’ve been amazingly ignorant of basic labor law.”

25 Union Drive and Election
5 Steps to recognition and representation Initial Contact Obtain Authorization Cards Hold Hearing Page 404 The Campaign The Election

26 Step 1. Initial Contact Determine employee interest
Rules say can’t endanger the performance or safety of the employees Both sides use labor relations consultants Union salting Page During the initial contact stage, the union determines the employees’ interest in organizing, and establishes an organizing committee. The initiative for the first contact between the employees and the union may come from the employees, from a union already representing other employees of the firm, or from a union representing workers elsewhere. In any case, there is an initial contact between a union representative and a few employees. The union must follow certain rules when it starts contacting employees. The law allows organizers to solicit employees for membership as along as the effort doesn’t endanger the performance or safety of the employees. Therefore, much of the contact takes place off the job, for example, at home or at eating places near work. Organizers can also safely contact employees on company grounds during off hours (such as lunch or break time). Labor Relations Consultants Both management and unions now use outside advisers, and these labor relations consultants are increasingly influencing the unionization process. The consultants may be law firms, researchers, psychologists, labor relations specialists, or public relations firms. Union salting is an organizing tactic by which full time undercover union organizers are hired by unwitting employers.

27 Step 2. Obtaining Authorization Cards
Union must petition NLRB to hold an election 30% must sign authorization cards Propaganda phase Picketing subject to: Petition for election Cannot already recognize another union No valid NLRB election during past 12 months Page 406 For the union to petition the NLRB for the right to hold an election, it must show that a sizable number of employees may be interested in organizing. The next step is thus for union organizers to try to get the employees to sign authorization cards. Among other things, these usually authorize the union to seek a representation election and state that the employee has applied to join the union. Thirty percent of the eligible employees in an appropriate bargaining unit must sign before the union can petition the NLRB for an election. During this stage, both union and management use various forms of propaganda. The union claims it can improve working conditions, raise wages, increase benefits, and generally get the workers better deals. Management can attack the union on ethical and moral grounds and cite the cost of union membership. Management can also explain its track record, express facts and opinions, and explain the law applicable to organizing campaigns. However, neither side can threaten, bribe, or coerce employees. And an employer may not make promises of benefit to employees or make unilateral changes in terms and conditions of employment that were not planned to be implemented prior to the onset of union organizing activity. It is an unfair labor practice to tell employees they can’t sign a card. What you can do is prepare supervisors so they can explain what the card actually authorizes the union to do. One thing management should not do is look through signed authorization cards if confronted with them by union representatives. The NLRB could construe that as an unfair labor practice, as spying on those who signed. During this stage, unions can picket the company, subject to three constraints: (1) The union must file a petition for an election within 30 days after the start of picketing; (2) the firm cannot already be lawfully recognizing another union; and (3) there cannot have been a valid NLRB election during the past 12 months. Unions today use the Internet to distribute and collect authorization cards.

28 Step 3. Hold a Hearing NLRB hearing addresses: No contest –
No hearing – Consent election No contest – No hearing – Election Contest – Hearing held NLRB hearing addresses: Does record show sufficient interest What bargaining unit will be NLRB hearing notice Page 407 Once the union collects the authorization cards, one of three things can occur. If the employer chooses not to contest union recognition, the parties need no hearing, and a “consent election” is held immediately. If the employer chooses not to contest the union’s right to an election, and/or the scope of the bargaining unit, and/or which employees are eligible to vote in the election, no hearing is needed and the parties can stipulate an election. If an employer does wish to contest the union’s right, it can insist on a hearing to determine those issues. Most companies do contest the union’s right to represent their employees, claiming that a significant number of them don’t really want the union. It is at this point that the National Labor Relations Board gets involved. The union usually contacts the NLRB, which requests a hearing. The hearing addresses several issues. First, does the record indicate there is enough evidence to hold an election? (For example, did 30% or more of the employees in an appropriate bargaining unit sign the authorization cards?) Second, the examiner must decide what the bargaining unit will be. The latter is a crucial matter for the union, for employees, and for the employer. The bargaining unit is the group of employees that the union will be authorized to represent and bargain for collectively. If the results of the hearing are favorable for the union, the NLRB will order holding an election. It will issue a Notice of Election (NLRB Form 707) to that effect, for the employer to post. Does the employer qualify for coverage by the NLRB? Is union recognized by National Labor Relations Act? Does prior bargaining agreement prevent an election?

29 Step 4. The Campaign Let the campaign begin!
Union says it will prevent unfairness and improve wages Management says union promises won’t make any difference Page 408 The union emphasizes that it will prevent unfairness, set up grievance and seniority systems, and improve unsatisfactory wages. Union strength, they’ll say, will give employees a voice in determining wages and working conditions. Management will stress that improvements like the union promises don’t require unionization, and that wages are equal to or better than they would be with a union. Management will also emphasize the financial cost of union dues; the fact that the union is an “outsider”; and that if the union wins, a strike may follow.

30 Step 5. The Election Election held Days after NLRB issues decision Secret ballot Union wins if they get majority of votes cast Page 408 The election is held within 30 to 60 days after the NLRB issues its Decision and Direction of Election. The election is by secret ballot. The union becomes the employees’ representative if it wins the election, and winning means getting a majority of the votes cast, not a majority of the total workers in the bargaining unit. (Also keep in mind that if an employer commits an unfair labor practice, the NLRB may reverse a “no union” election.

31 How to Lose an NLRB Election
Employers lost ½ of the elections because: Asleep at the switch Appointed a committee Concentrated on money and benefits Industry blind spots Delegate too much to divisions Page 409 1. Reason 1. Asleep at the switch. In one study, in 68% of the companies that lost to the union, executives were caught unaware. In these companies, turnover and absenteeism had increased, productivity was erratic, and safety was poor. Grievance procedures were rare. When the first reports of authorization cards began trickling back to top managers, they usually responded with a barrage of letters describing how the company was “one big family” and calling for a “team effort.” 2. Reason 2. Appointing a committee. Of the losing companies 36% formed a committee to manage the campaign. According to the expert, there are three problems in doing so: (1) Promptness is essential in an election situation, and committees are notorious for moving slowly. (2) Most committee members are NLRB neophytes. Their views therefore are mostly reflections of wishful thinking rather than experience. (3) A committee’s decision is usually a compromise decision. 3. Reason 3. Concentrating on money and benefits. In 54% of the elections studied, the company lost because top management concentrated on the wrong issues: money and benefits. 4. Reason 4. Industry blind spots. The researcher found that in some industries, employees felt more ignored and disregarded than in others. In highly automated industries (such as paper manufacturing and automobiles), there was some tendency for executives to ignore hourly employees, although this is changing today as firms implement more quality improvement programs. Here (as in reason 3), the solution is to pay more attention to employees’ needs and attitudes. 5. Reason 5. Delegating too much to divisions. For companies with plants scattered around the country, organizing several of the plants gives the union a wedge to tempt other plants’ workers. Unionizing one or more plants tends to lead to unionizing others.

32 Appointing a Committee
36% of losing companies appointed committees to handle the election Promptness is essential Most members are NLRB neophytes Committees usually compromise Page 409 The result of appointing a committee is often close to the most conservative opinion—but not necessarily the most knowledgeable or most effective one. This expert suggests giving full responsibility to a single decisive executive. A human resource director and a consultant or adviser with broad experience in labor relations should in turn assist this person.

33 The Supervisor’s Role First line of defense
Sensitive to evolving employee attitude problems Treat employees fairly and honestly Supervisors must know possible consequences Page 410 Supervisors are an employer’s first line of defense when it comes to the unionizing effort. They are often in the best position to sense evolving employee attitude problems, for instance, and to discover the first signs of union activity. Supervisors therefore need special training. Specifically, they must be knowledgeable about what they can and can’t do to legally hamper organizing activities. Unfair labor practices could (1) cause the NLRB to hold a new election after your company has won a previous election, or (2) cause your company to forfeit the second election and go directly to contract negotiation.

34 Literature and Solicitation Rules
Soliciting employees during work time No soliciting except break times Bar non-employees from the building’s interiors and work areas Deny access for safety, production or discipline reasons Page 410 1. Employers can always bar non-employees from soliciting employees during their work time—that is, when the employee is on duty and not on a break. Thus, if the company cafeteria is open to whoever is on the premises, union organizers can solicit off-duty employees who are in the cafeteria, but not the cafeteria workers (such as cooks who are not on a break. 2. Employers can usually stop employees from soliciting other employees for any purpose if one or both employees are on paid-duty time and not on a break. 3. Most employers (not including retail stores, shopping centers, and certain other employers) can bar non-employees from the building’s interiors and work areas as a right of private property owners. They can also sometimes bar non-employees from exterior private areas—such as parking lots—if there is a business reason (such as safety) and the reason is not just to interfere with union organizers. 4. Employers can deny on- or off-duty employees access to interior or exterior areas only if they can show the rule is required for reasons of production, safety, or discipline.

35 The New Workplace - Global Unions
Can’t avoid unions by going abroad Trading partnerships lets union membership span countries U.S. owned offshore factories are organizing Raising offshore wages removes impetus to relocate factories UEW Page 411 Any company that thinks it can avoid unionization by sending manufacturing and jobs abroad is sorely mistaken. Today, as we’ve seen, most businesses are “going global,” and regional trade treaties like the North American Free Trade Agreement will further boost the business firms do abroad. This fact is not lost on unions, some of which are already expanding their influence abroad. U.S. unions gain several things by forming alliances with unions abroad. By helping workers in other countries unionize, they help raise the wages and living standards of local workers. That may in turn discourage corporate flight from the United States in search of low wages. Unions also help their own positions in the U.S. with the added leverage they get from having unions abroad that can help them fight their corporate campaigns.

36 Ousting the Union Definition 450-500/Year Unions win 30%
Decertification is the legal process for employees to terminate a union’s right to represent them Handled much like certification process Page 412 Winning an election and signing an agreement do not necessarily mean that the union is in the company to stay—quite the opposite. The same law that grants employees the right to unionize also gives them a way to legally terminate their union’s right to represent them. The process is called decertification. There are around 450 to 500 decertification elections each year, of which unions usually win around 30%.46 That’s actually a more favorable rate for management than the rate for the original, representation elections. /Year Unions win 30% Management wins 70%

37 What is collective bargaining?
Definition Collective bargaining The process through which representatives of management and the union meet to negotiate a labor agreement. Page 412 For the purpose of [this act,] to bargain collectively is the performance of the mutual obligation of the employer and the representative of the employees to meet at reasonable times and confer in good faith with respect to wages, hours, and terms and conditions of employment, or the negotiation of an agreement, or any question arising thereunder, and the execution of a written contract incorporating any agreement reached if requested by either party, but such obligation does not compel either party to agree to a proposal or require the making of a concession.

38 Good Faith Good faith bargaining is the cornerstone
Both parties communicate and negotiate The following are not good faith methods: Page 412 Good faith bargaining is the cornerstone of effective labor–management relations. It means that both parties communicate and negotiate, that these proposals match with counterproposals, and that both make every reasonable effort to arrive at an agreement. It does not mean that one party compels another to agree to a proposal. Nor does it require that either party make any specific concessions (although as a practical matter, some may be necessary). 1. Surface bargaining. Going through the motions of bargaining without any real intention of completing a formal agreement. 2. Inadequate concessions. Unwillingness to compromise, even though no one is required to make a concession. 3. Inadequate proposals and demands. The NLRB considers the advancement of proposals to be a positive factor in determining overall good faith. 4. Dilatory tactics. The law requires that the parties meet and “confer at reasonable times and intervals.” Obviously, refusal to meet with the union does not satisfy the positive duty imposed on the employer. 5. Imposing conditions. Attempts to impose conditions that are so onerous or unreasonable as to indicate bad faith. 6. Making unilateral changes in conditions. A strong indication that the employer is not bargaining with the required intent of reaching an agreement. 7. Bypassing the representative. The duty of management to bargain in good faith involves, at a minimum, recognition that the union representative is the one with whom the employer must deal in conducting negotiations. 8. Committing unfair labor practices during negotiations. Such practices may reflect poorly upon the good faith of the guilty party. 9. Withholding information. An employer must supply the union with information, upon request, to enable it to understand and intelligently discuss the issues raised in bargaining. 10. Ignoring bargaining items. Refusal to bargain on a mandatory item (one must bargain over these) or insistence on a permissive item (one may bargain over these). Surface bargaining Inadequate concessions Inadequate proposals and demands Dilatory tactics Imposing conditions Making unilateral changes in conditions Withholding information Bypassing the representative Committing unfair negotiations Ignoring bargaining items

39 The Negotiating Team Both sides come to bargaining table having done their homework Management compiles data that bolsters its case Workers have issues they need resolved Page 414 Both union and management send a negotiating team to the bargaining table, and both teams usually go into the bargaining sessions having “done their homework.” Union representatives will have sounded out union members on their desires and conferred with representatives of related unions. Management compiles data on pay and benefits that include comparisons with local pay rates and to rates paid for similar jobs within the industry. Data on the distribution of the workforce (in terms of age, sex, and seniority, for instance) are also important, because these factors determine what the company will actually pay out in benefits.

40 Bargaining Items Mandatory Voluntary or permissible Illegal Page 414
Voluntary bargaining items Items in collective bargaining over which bargaining is neither illegal nor mandatory—neither party can be compelled against its wishes to negotiate over those items. Illegal bargaining items Items in collective bargaining that are forbidden by law; for example, a clause agreeing to hire “union members exclusively” would be illegal in a right-to-work state. Mandatory bargaining items Items in collective bargaining that a party must bargain over if they are introduced by the other party—for example, pay.

41 Bargaining Items (Cont.)
Page 414

42 Bargaining Stages Present Demands Reduce Demands Subcommittee Study
Page 414 The actual bargaining typically goes through several stages. First, each side presents its demands. At this stage, both parties are usually quite far apart on some issues. Second, there is a reduction of demands. At this stage, each side trades off some of its demands to gain others. Third come the subcommittee studies; the parties from joint subcommittees to try to work out reasonable alternatives. Fourth, the parties reach an informal settlement, and each group goes back to its sponsor. Union representatives check informally with their superiors and the union members; management representatives check with top management. Finally, once everything is in order, the parties fine-tune and sign a formal agreement. Informal Settlement Formal Agreement

43 Bargaining Hints Set clear objectives for each bargaining item
Do not hurry When in doubt, caucus with associates Have firm data supporting your position Keep some flexibility in your position Control your emotions Find out why other party says what it does Let other party save face Be a good listener Page 415 Bargaining Hints Expert Reed Richardson has the following advice for bargainers: 1. Be sure to set clear objectives for every bargaining item, and be sure you understand the reason for each. 2. Do not hurry. 3. When in doubt, caucus with your associates. 4. Be well prepared with firm data supporting your position. 5. Always strive to keep some flexibility in your position. 6. Don’t concern yourself just with what the other party says and does; find out why. 7. Respect the importance of face saving for the other party. 8. Be alert to the real intentions of the other party—not only for goals, but also for priorities. 9. Be a good listener. 10. Build a reputation for being fair but firm. 11. Learn to control your emotions and use them as a tool. 12. As you make each bargaining move, be sure you know its relationship to all other moves. 13. Measure each move against your objectives. 14. Pay close attention to the wording of every clause negotiated; they are often a source of grievances. 15. Remember that collective bargaining is a compromise process. There is no such thing as having all the pie. 16. Try to understand people and their personalities. 17. Consider the impact of present negotiations on those in future years.60 Determine real intentions of others Monitor objectives Build a reputation as being fair but firm All about compromise Know bargaining interrelationships Read fine print Understand people Consider impact in future years

44 Impasses and Mediation
Definitions Impasse - collective bargaining situation that occurs when the parties are not able to move toward a settlement Mediation - intervention in which a neutral third party tries to assist the principals in reaching agreement Page 415

45 Impasses and Mediation
Definitions Fact finder - a neutral party who studies the issues in a dispute and makes a public recommendation for a reasonable settlement Arbitration - the most definitive type of third-party intervention, in which the arbitrator usually has the power to determine and dictate the settlement terms Page 415

46 Strikes 4 Main types of strikes:
Economic – results from failure to get contract Union labor practice – protests illegal conduct Wildcat – unauthorized Sympathy – in support of another strike Page 416 Strikes A strike is a withdrawal of labor, and there are four main types of strikes. An economic strike results from a failure to agree on the terms of a contract. Unions call union labor practice strikes to protest illegal conduct by the employer. A wildcat strike is an unauthorized strike occurring during the term of a contract. A sympathy strike occurs when one union strikes in support of the strike of another union.64

47 Minimizing Strike Confusion
Pay Secure Notify Contact Arrange Photograph Record Gather Page 416 Two experts say that following these guidelines can minimize confusion: Pay all striking employees what you owe them on the first day of the strike. Secure the facility. Management should control access to the property. The company should consider hiring guards to protect replacements coming to and from work and to watch and control the picketers, if necessary. Notify all customers, and prepare a standard official response to all queries. Contact all suppliers and other persons who will have to cross the picket line. Establish alternative methods of obtaining supplies. Make arrangements for overnight stays in the facility and for delivered meals in case the occasion warrants such action. Notify the local unemployment office of your need for replacement workers. Photograph the facility before, during, and after picketing. If necessary, install videotape equipment and devices to monitor picket line misconduct. Record all facts concerning strikers’ demeanor and activities and such incidents as violence, threats, mass pickets, property damage, or problems. Record the police response to requests for assistance. Gather the following evidence: number of pickets and their names; time, date, and location of picketing; wording on every sign carried by pickets; and descriptions of picket cars and license numbers.68

48 Alternatives Corporate campaign Boycott Inside games Lockout
Injunction Page 417 Corporate campaign An organized effort by the union that exerts pressure on the corporation by pressuring the company’s other unions, shareholders, directors, customers, creditors, and government agencies, often directly. Boycott The combined refusal by employees and other interested parties to buy oruse the employer’s products. Inside games Union efforts to convince employees to impede or to disrupt production—for example, by slowing the work pace. Lockout A refusal by the employer to provide opportunities to work. Injunction A court order compelling a party or parties either to resume or to desist from a certain action.

49 The Contract Agreement
May be pages or more Covers general declarations of policy Often contains detailed rules Page 418 The main sections of a typical contract cover subjects such as these: (1) management rights, (2) union security and automatic payroll dues deduction, (3) grievance procedures, (4) arbitration of grievances, (5) disciplinary procedures, (6) compensation rates, (7) hours of work and overtime, (8) benefits: vacations, holidays, insurance, pensions, (9) health and safety provisions, (10) employee security seniority provisions, and (11) contract expiration date.

50 Grievances Definitions
Grievance - any factor involving wages, hours, or conditions of employment that is used as a complaint against the employer Most serious and difficult involve discipline, seniority, and job evaluations Usually caused by a bad supervisor – subordinate relationship Page 419 Hammering out a labor agreement is not the last step in collective bargaining; in some respects, it is just the beginning. No labor contract can cover all contingencies and answer all questions. For example, suppose the contract says you can only discharge an employee for “just cause.” You subsequently discharge someone for speaking back to you in harsh terms. Was it within your rights to discharge this person? Was speaking back to you harshly “just cause”? The labor contract’s grievance procedure usually handles problems like these. This procedure provides an orderly system whereby both employer and union determine whether some action violated the contract.76 It is the vehicle for administering the contract on a day-to-day basis.

51 Common Grievances Watch the grievance video Absenteeism
Insubordination Overtime Plant rules Page 419 Watch the grievance video

52 Grievance Procedures Most contracts contain specific grievance procedures A simple one is 2 steps Representatives discuss complaint If unsolved, 3rd party arbiter hears case Grievance form Page 420

53 Do’s for Handling Grievances
Investigate each case Talk with the employee Union must identify specific provisions Comply with the time limits Visit the work area Page 420 1. Investigate and handle each case as though it may eventually result in arbitration. 2. Talk with the employee about his or her grievance; give the person a full hearing. 3. Require the union to identify specific contractual provisions allegedly violated. 4. Comply with the contractual time limits for handling the grievance. 5. Visit the work area of the grievance.

54 Do’s for Handling Grievances
Were there any witnesses? Examine personnel records Prior grievance records The union representative as an equal Private grievance discussions Fully inform your own supervisor Page 420 6. Determine whether there were any witnesses. 7. Examine the grievant’s personnel record. 8. Fully examine prior grievance records. 9. Treat the union representative as your equal. 10. Hold your grievance discussions privately. 11. Fully inform your own supervisor of grievance matters.

55 Don’ts for Handling Grievances
Discuss the case Make arrangements with individual employee Hold back the remedy Admit to past practices Relinquish your rights as a manager Settle grievances based on what is “fair” Page 421 12. Discuss the case with the union steward alone—the grievant should be there. 13. Make arrangements with individual employees that are inconsistent with the labor agreement. 14. Hold back the remedy if the company is wrong. 15. Admit to the binding effect of a past practice. 16. Relinquish to the union your rights as a manager. 17. Settle grievances based on what is “fair.” Instead, stick to the labor agreement.

56 Don’ts for Handling Grievances
Bargain over items not covered Treat claims demanding the discipline or discharge of managers Give long written answers Trade a settlement for a withdrawal Deny grievances because “your hands have been tied by management” Agree to informal amendments Page 421 18. Bargain over items not covered by the contract. 19. Treat as subject to arbitration claims demanding the discipline or discharge of managers. 20. Give long written grievance answers. 21. Trade a grievance settlement for a grievance withdrawal. 22. Deny grievances because “your hands have been tied by management.” 23. Agee to informal amendments in the contract.

57 Why Unions Are Declining?
% Why Unions Are Declining? % Shift of workforce to white-collar jobs Permanent layoffs of millions of jobs caused by relocating jobs elsewhere EEO laws enacted which offer many rights previously negotiated Page 421 Several factors contributed to the decline. Most easily organized workers in industries like mining, transportation, and manufacturing were unionized years ago. More recently, unions faced a declining proportion of blue-collar jobs, and more service sector, high-tech, and white-collar service jobs. The permanent layoff of hundreds of thousands of union members, the permanent closing of company plants, the relocation of companies to nonunion settings (either in the United States or overseas), and mergers and acquisitions further eliminated union jobs and affected collective bargaining agreements. And, ironically, the (EEO), safety, and similar laws described elsewhere now provide the sort of protection that up to a few years ago only unions could provide.

58 HR.Net – Unions and the Internet
Unions announcements Reach supporters and government Web sites help in unionizing campaigns Page 422 The Internet is also revolutionizing union activity, much as it revolutionized how firms do business. and the Internet mean unions can mass announcements to collective bargaining unit members, and use mass to reach supporters and government officials for their corporate campaigns. Union-based Web sites are becoming integral parts of many such unionization campaigns; provides a good example. Managed by the communications workers of America, seeks to encourage IBM employees to join the Communications Workers of America. It does so by providing information on a range of issues, such as why IBM employees need a union, questions and concerns about unions, and how employees can join the union and get involved.

59 Employee Participation Programs
Preventing the perception of “sham unions” Involve employees Address issues like quality and productivity Not when unions are organizing Use volunteers and rotate frequently Do not dominate committees Minimize daily oversight Page 423 Involve employees in the formation of these programs to the greatest extent practical. Continually emphasize to employees that the committees exist for the exclusive purpose of addressing issues such as quality and productivity. They are not intended as vehicles for dealing with management on mandatory bargaining type items such as pay and working conditions. Don’t try to establish such committees at the same time union organizing activities are beginning in your facility. Fill the committees with volunteers rather than elected employee representatives, and rotate membership to ensure broad employee participation. Minimize your participation in the committees’ day-to-day activities, to avoid unlawful interference or, worse, the perception of domination.

60 Chapter 14 Summary Major union milestone was creation of the AFL in 1886 by Samuel Gompers Unions have been courting white-collar workers as blue-collar membership declines Unions seek improved wages, working conditions, and security We discussed the closed shop, union shop, agency shop, open shop, and maintenance of membership Page 424

61 Chapter 14 Summary The Norris-LaGuardia Act and the Wagner Act marked a shift in labor law from repression to strong encouragement of union activity The Taft-Hartley Act reflected the period of modified encouragement coupled with regulation Can you name some things the Taft-Hartley act enumerated? Page 424 Instructor’s notes: The Taft-Hartley Act reflected the period of modified encouragement coupled with regulation. It enumerated the rights of employees with respect to their unions, enumerated the rights of employers, and allowed the U.S. president to temporarily bar national emergency strikes. Among other things, it also enumerated certain unfair union labor practices. And employers were explicitly given the right to express their views concerning union organization.

62 Chapter 14 Summary The Landrum-Griffin Act reflected the period of detailed regulation of internal union affairs Can you name the five steps in a union drive and election? Can you list at least five surefire ways to lose an NLRB election? Bargaining collectively in good faith is the next step if and when the union wins an election Page 424 Instructor’s notes: There are five steps in a union drive and election: the initial contact, obtaining authorization cards, holding a hearing with the NLRB, the campaign, and the election itself. There are five surefire ways to lose an NLRB election: Be caught sleeping at the switch, form a committee, emphasize money and benefits, have an industry blind spot, and delegate too much to divisions.

63 Chapter 14 Summary How are bargaining items categorized?
Third-party involvement—namely, arbitration, fact-finding, or mediation—is one alternative when bargaining breaks down Grievance handling has been called day-to-day collective bargaining Most agreements contain a carefully worded grievance procedure ranging from two to six or more steps Page 424 Instructor’s notes: Bargaining items are categorized as mandatory, voluntary, or illegal.

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