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© 2003 Prentice Hall, Inc Chapter 14 Labor Relations and Collective Bargaining
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc Chapter 14 Outline The collective bargaining process What is collective bargaining? What is good faith? The negotiating team Bargaining items Bargaining stages Bargaining hints
© 2003 Prentice Hall, Inc Chapter 14 Outline The collective bargaining process (cont.) Impasses, mediation, and strikes Third-party involvement Strikes Other alternatives The contract agreement Strategic HR: Amazon.com and unionization Grievances Sources of grievances The grievance procedure Guidelines for handling grievances
© 2003 Prentice Hall, Inc Chapter 14 Outline The future of unionism Why union membership is declining What’s next for unions? HR.net: Unions and the Internet Employee participation programs and unions Summary
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc The Labor Movement 16 Million U.S. workers belong to unions – about 14% of all working men and women Why are unions important? How did they get that way? Why do workers join them? How do employers and unions hammer out agreements?
© 2003 Prentice Hall, Inc Union History 1790 Samuel Gompers formed the American Federation of Labor - AFL Decline and growth
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc What Do Unions Want? Security Closed shop Union shop Agency shop Open shop Maintenance of membership arrangement Improved wages, hours, and benefits
© 2003 Prentice Hall, Inc The AFL-CIO Gompers’ AFL and the Congress of Industrial Organizations (CIO) merged in 1955, with George Meany as its first president National federation Chapter Local
© 2003 Prentice Hall, Inc Unions And The Law 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)
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc 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% 4% 17% 20% 24% 7%
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc Unions And The Law 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
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc Union Drive and Election 5 Steps to recognition and representation Initial Contact Obtain Authorization Cards Hold Hearing The Campaign The Election
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc Step 3. Hold a Hearing NLRB hearing addresses: Does record show sufficient interest What bargaining unit will be No contest – No hearing – Consent election No contest – No hearing – Election Contest – Hearing held NLRB hearing notice Does the employer qualify for coverage by the NLRB? Is union recognized by National Labor Relations Act? Does prior bargaining agreement prevent an election?
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc Step 5. The Election Election held Days after NLRB issues decision Secret ballot Union wins if they get majority of votes cast
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc Appointing a Committee 36% of losing companies appointed committees to handle the election Promptness is essential Most members are NLRB neophytes Committees usually compromise
© 2003 Prentice Hall, Inc The Supervisor’s Role First line of defense Sensitive to evolving employee attitude problems Treat employees fairly and honestly Supervisors must know possible consequences
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc Ousting the Union Decertification is the legal process for employees to terminate a union’s right to represent them Handled much like certification process Definition
© 2003 Prentice Hall, Inc What is collective bargaining? Collective bargaining The process through which representatives of management and the union meet to negotiate a labor agreement. Definition
© 2003 Prentice Hall, Inc Surface bargaining Good Faith Good faith bargaining is the cornerstone Both parties communicate and negotiate The following are not good faith methods: 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
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc Bargaining Items Mandatory Voluntary or permissible Illegal
© 2003 Prentice Hall, Inc Bargaining Items (Cont.)
© 2003 Prentice Hall, Inc Bargaining Stages
© 2003 Prentice Hall, Inc Bargaining Hints Set clear objectives for each bargaining item Do not hurryWhen in doubt, caucus with associates Have firm data supporting your position Keep some flexibility in your position Find out why other party says what it does Let other party save faceBe a good listener Determine real intentions of others Build a reputation as being fair but firm Control your emotions Know bargaining interrelationships Monitor objectives Read fine print All about compromise Understand peopleConsider impact in future years
© 2003 Prentice Hall, Inc Impasses and Mediation 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 Definitions
© 2003 Prentice Hall, Inc Impasses and Mediation 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 Definitions
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc Minimizing Strike Confusion Pay Secure Notify Contact Arrange Notify Photograph Record Gather
© 2003 Prentice Hall, Inc Alternatives Corporate campaign Boycott Inside games Lockout Injunction
© 2003 Prentice Hall, Inc The Contract Agreement May be pages or more Covers general declarations of policy Often contains detailed rules
© 2003 Prentice Hall, Inc Grievances 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 Definitions
© 2003 Prentice Hall, Inc Common Grievances Absenteeism Insubordination Overtime Plant rules
© 2003 Prentice Hall, Inc Grievance Procedures Representatives discuss complaint If unsolved, 3 rd party arbiter hears case Grievance form Most contracts contain specific grievance procedures A simple one is 2 steps
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc 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”
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc HR.Net – Unions and the Internet Unions announcements Reach supporters and government Web sites help in unionizing campaigns
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc 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?
© 2003 Prentice Hall, Inc 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
© 2003 Prentice Hall, Inc 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
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