6 Unions Today Fall of Big Labor since 1970s has been dramatic Unionized share of private sector workforce is 9 percent
7 Percentage of the Private Workforce That is Unionized Percentage of Workforce4040303020201010919501955196019651970197519801985199419962002Year
8 The Union Movement Today and Tomorrow Declining membershipLaws have taken over much of the union’s traditional role as the workers’ protector.Automation, globalization and technology have reduced jobs in unionized manufacturing sectors.Unions have fail to organize new plants.Unions have been more successful in organizing workers in the public sector.Management has become better at resisting union organizing efforts
9 Why Do Workers Organize? SolidarityTo get their fair share of the pie.Improved wages, hours, working conditions, and benefitsTo protect themselves from management whims.Conditions favoring employee organizationLow moraleFear of job lossArbitrary management actions
38 The Collective Bargaining Process What Is collective bargaining?Both management and labor are required by law to negotiate wage, hours, and terms and conditions of employment “in good faith.”What Is good faith bargaining?Both parties communicate and negotiate.They match proposals with counterproposals in a reasonable effort to arrive at an agreement.It does not mean that one party compels another to agree to a proposal or make any specific concessions.
39 Violations of Good Faith Bargaining Surface bargainingInadequate concessionsInadequate proposals and demandsDilatory tacticsImposing conditions.Making unilateral changes in conditions.Bypassing the representative.Committing unfair labor practices during negotiations.Withholding informationIgnoring bargaining items
41 Collective Bargaining Process Preparing for negotiationBargaining issuesNegotiationNegotiation breakdownReaching the agreementRatifying the agreementAdministration of the agreement
42 Psychological Aspects of Collective Bargaining Difficult because process is an adversarial situation and must be dealt with as suchPsychological aspects vitally important
43 Preparing for Negotiations Sources of negotiating informationLocal and industry pay and benefits comparisonsDistribution demographics of the workforceBenefit costs, overall earnings levels, and the amount and cost of overtimeCost of the current labor contract and the increased cost—total, per employee, and per hour—of the union’s demands.Grievances and feedback from supervisorsCounteroffers and arguments.
44 Preparing for Negotiations (cont’d) Sources of negotiating information (cont’d)Attitude surveys to test employee reactions to sections of the contract that management may feel require changeinformal conferences with local union leaders to discuss the operational effectiveness of the contract and to send up trial balloons on management ideas for change.
45 Preparing for Negotiations Mandatory bargaining issues - wages, hours, etc.Permissive bargaining issues – may be raisedProhibited bargaining issues – statutorily outlawed
46 Classes of Bargaining Items Voluntary (permissible) bargaining itemsItems 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 itemsItems 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 itemsItems in collective bargaining that a party must bargain over if they are introduced by the other party—for example, pay.
47 Bargaining Items Mandatory Permissible Illegal Rates of pay Wages Hours of employmentOvertime payShift differentialsHolidaysVacationsSeverance payPensionsInsurance benefitsProfit-sharing plansChristmas bonusesCompany housing, meals, and discountsEmployee securityJob performanceUnion securityManagement–union relationshipDrug testing of employeesPermissibleIndemnity bondsManagement rights as to union affairsPension benefits of retired employeesScope of the bargaining unitIncluding supervisors in the contractAdditional parties to the contract such as the international unionUse of union labelSettlement of unfair labor changesPrices in cafeteriaContinuance of past contractMembership of bargaining teamEmployment of strike breakersIllegalClosed shopSeparation of employees based on raceDiscriminatory treatmentSource: Michael B. Carnell and Christina Heavrin, Labor Relations and Collective Bargaining (Upper Saddle River, NJ: Prentice Hall, 2001), p. 177.
48 Bargaining HintsBe sure to set clear objectives for every bargaining item, and be sure you understand the reason for each.Do not hurry.When in doubt, caucus with your associates.Be well prepared with firm data supporting your position.Always strive to keep some flexibility in your position.Don’t concern yourself just with what the other party says and does; find out why.Respect the importance of face saving for the other party.Be alert to the real intentions of the other party—not only for goals, but also for priorities.Be a good listener.
49 Bargaining Hints (cont’d) Build a reputation for being fair but firm.Learn to control your emotions and use them as a tool.As you make each bargaining move, be sure you know its relationship to all other moves.Measure each move against your objectives.Pay close attention to the wording of every clause negotiated; they are often a source of grievances.Remember that collective bargaining is a compromise process. There is no such thing as having all the pie.Try to understand people and their personalities.Consider the impact of present negotiations on those in future years.
50 Compensation and Benefits Bargaining IssuesDocument that results from collective bargaining process is labor agreement or contractRecognitionManagement RightsUnion SecurityCompensation and BenefitsGrievance ProcedureEmployee Security
51 Recognition Appears at the beginning of the labor agreement Identifies the union that is recognized as the bargaining representativeDescribes the bargaining unit
52 Management RightsSection that is often (but not always) written into labor agreement which spells out rights of management
53 Union SecurityClosed Shop -Arrangement whereby union membership is a prerequisite to employmentUnion Shop - Requires that all employees become members of the union after a specified periodMaintenance of Membership - Must continue their memberships until the termination of the agreement
54 Union Security (Continued) Agency Shop - Nonunion members pay union the equivalent of membership dues as a kind of taxExclusive Bargaining Shop - Company must deal with union that has achieved recognition, but employees are not obligated to joinOpen Shop – Equal terms for union members and nonmembersDues Checkoff - Company agrees to withhold union dues
55 Compensation and Benefits Wage rate scheduleOvertime and premium payJury payLayoff or severance payHolidaysVacationFamily care
56 Grievance ProcedureMeans by which employees can voice dissatisfaction with specific management actionsProcedures for disciplinary action by managementTermination procedure that must be followed
58 Job-Related FactorsMany of rules governing employee actions on job are included
59 Negotiating the Agreement Begins with each side presenting initial demandsSuggests a certain amount of give and takeEach side does not expect to obtain all demands presented
60 Breakdowns in Negotiations Third party interventionUnion strategies for overcoming breakdownsManagement strategies for overcoming breakdowns
61 Third Party Intervention Mediation - neutral party comes in when impasse has occurredArbitration – impartial third party makes binding decision to settle disputeSources of mediators and arbitrators
62 Union Strategies for Overcoming Negotiation Breakdowns Strikes – union members refuse to work to pressure management in negotiationsBoycotts – union members agree to refuse to use or buy firm’s products
63 Management Strategies for Overcoming Negotiation Breakdowns Lockout – keep employees out; operate firm by placing management and nonunion workers in striking workers’ jobsHire replacement for strikers
64 Ratifying the Agreement May be more difficult for unionUntil approved by majority of members, proposed agreement is not final
65 Administration of the Agreement Larger and perhaps more important part of collective bargainingSeldom viewed by publicAgreement establishes the union-management relationship for duration of the contract
66 Grievances Grievance Sources of grievances Any factor involving wages, hours, or conditions of employment that is used as a complaint against the employer.Sources of grievancesAbsenteeismInsubordinationOvertimePlant rules
67 Grievance ProcedureGrievant and shop steward meet with supervisor. If not resolved,Employee files formal grievanceGrievant and shop steward meet with supervisor’s boss. If not resolved,Meeting with higher-level managers.If not resolved, matter goes to arbitration.
68 Handling Grievances: Do Investigate and handle each case as though it may eventually result in arbitration.Talk with the employee about his or her grievance; give the person a full hearing.Require the union to identify specific contractual provisions allegedly violated.Comply with the contractual time limits for handling the grievance.Visit the work area of the grievance.Determine whether there were any witnesses.Examine the grievant’s personnel record.Fully examine prior grievance records.Treat the union representative as your equal.Hold your grievance discussions privately.Fully inform your own supervisor of grievance matters.
69 Handling Grievances: Don’t Discuss the case with the union steward alone—the grievant should be there.Make arrangements with individual employees that are inconsistent with the labor agreement.Hold back the remedy if the company is wrong.Admit to the binding effect of a past practice.Relinquish to the union your rights as a manager.Settle grievances based on what is “fair.” Instead, stick to the labor agreement.Bargain over items not covered by the contract.Treat as subject to arbitration claims demanding the discipline or discharge of managers.Give long written grievance answers.Trade a grievance settlement for a grievance withdrawal.Deny grievances because “your hands have been tied by management.”Agree to informal amendments in the contract.