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© 2003 Prentice Hall, Inc. 14-1 Chapter 14 Labor Relations and Collective Bargaining.

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Presentation on theme: "© 2003 Prentice Hall, Inc. 14-1 Chapter 14 Labor Relations and Collective Bargaining."— Presentation transcript:

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2 © 2003 Prentice Hall, Inc Chapter 14 Labor Relations and Collective Bargaining

3 © 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

4 © 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

5 © 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

6 © 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

7 © 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

8 © 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

9 © 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

10 © 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

11 © 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

12 © 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?

13 © 2003 Prentice Hall, Inc Union History  1790  Samuel Gompers formed the American Federation of Labor - AFL  Decline and growth

14 © 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

15 © 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

16 © 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

17 © 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

18 © 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)

19 © 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

20 © 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

21 © 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

22 © 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%

23 © 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

24 © 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

25 © 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

26 © 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

27 © 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

28 © 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

29 © 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?

30 © 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

31 © 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

32 © 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

33 © 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

34 © 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

35 © 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

36 © 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

37 © 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

38 © 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

39 © 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

40 © 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

41 © 2003 Prentice Hall, Inc Bargaining Items  Mandatory  Voluntary or permissible  Illegal

42 © 2003 Prentice Hall, Inc Bargaining Items (Cont.)

43 © 2003 Prentice Hall, Inc Bargaining Stages

44 © 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

45 © 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

46 © 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

47 © 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

48 © 2003 Prentice Hall, Inc Minimizing Strike Confusion  Pay  Secure  Notify  Contact  Arrange  Notify  Photograph  Record  Gather

49 © 2003 Prentice Hall, Inc Alternatives  Corporate campaign  Boycott  Inside games  Lockout  Injunction

50 © 2003 Prentice Hall, Inc The Contract Agreement  May be pages or more  Covers general declarations of policy  Often contains detailed rules

51 © 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

52 © 2003 Prentice Hall, Inc Common Grievances  Absenteeism  Insubordination  Overtime  Plant rules

53 © 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

54 © 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

55 © 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

56 © 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”

57 © 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

58 © 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

59 © 2003 Prentice Hall, Inc HR.Net – Unions and the Internet  Unions announcements  Reach supporters and government  Web sites help in unionizing campaigns

60 © 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

61 © 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

62 © 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?

63 © 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

64 © 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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