1. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -1 Managing Human Resources Managing Human Resources Bohlander  Snell  Sherman Chapter 15 Collective Bargaining & Contract Administration Chapter 15 Collective Bargaining & Contract Administration

2. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -2 Learning Objectives  Discuss the bargaining process and the bargaining goals and strategies of a union and an employer.  Describe the forms of bargaining power that a union and an employer may utilize to enforce their bargaining demands.  Cite the principal methods by which bargaining deadlocks may be resolved.  Give examples of current collective bargaining trends.

3. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -3 Learning Objectives, cont.  Identify the major provisions of a labor agreement and describe the issue of management rights.  Describe a typical union grievance procedure.  Explain the basis for arbitration awards.

4. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -4 The Bargaining Process: Overview Good-Faith Bargaining Preparing for Negotiations Conducting Negotiations

5. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -5 Presentation Slide 15-1 The Bargaining Process 1. Prepare for negotiations. 2. Develop strategies 3. Conduct negotiations 4. Formalize agreement Pressures on bargaining parties: Legal requirements Strikes Lockouts Boycotts Strike replacements

6. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -6 Collective Bargaining Process Process of negotiating a labor agreement, including the use of economic pressures by both parties

7. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -7 Pattern Bargaining Bargaining in which unions negotiate provisions covering wages and other benefits that are similar to those provided in other agreements existing within the industry or region

8. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -8 Presentation Slide 15-2 Good-Faith Bargaining #1 The Taft-Hartley act requires that parties: Meet at reasonable times. Confer in good faith. Bargain over wages, hours, and working conditions. Execute a written agreement The law does not require: Agreeing to any proposal. Making a concession.

9. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -9 Presentation Slide 15-3 Good Faith Bargaining #2 The NLRB has determined that good-faith bargaining means: Making proposals and counterproposals Not engaging in stalling tactics Participating actively in negotiations Meeting at reasonable times and places Entering negotiations with an open mind Bargaining with competent individuals Avoiding evasive behavior

10. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -10 Bargaining Zone Area within which the union and the employer are willing to concede when bargaining

11. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -11 Nonadversarial Bargaining Problem-solving bargaining based on a win- win philosophy and the development of a positive long-term relationship

12. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -12 Presentation Slide 15-4 Nonadversarial Bargaining u Address mutual problems and concerns. Focus on specific issues -- not on individuals or past conflicts. u Explore interests of joint concern. Clearly define mutual issues. u Be open-minded to possibilities and/or future opportunities. Satisfy others’ interests as well as your own. u Define acceptable solutions measured against jointly developed standards. Use consensus decision making to reach solutions.

13. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -13 Union Power in Collective Bargaining Striking Boycotting Picketing

14. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -14 Union Power

15. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -15 Boycott Union tactic to encourage others to refuse to patronize an employer

16. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -16 Employer Power

17. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -17 Outsourcing Act of subcontracting operations to other employers

18. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -18 Lockout Strategy by which the employer denies employees the opportunity to work by closing its operations

19. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -19 Resolving Bargaining Deadlocks MediationArbitration Government Intervention

20. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -20 Resolving Bargaining Deadlocks

21. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -21 Mediator Third party in a labor dispute who meets with one party and then the other in order to suggest compromise solutions or to recommend concessions from each side that will lead to an agreement

22. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -22 Arbitrator Third-party neutral who resolves a labor dispute by issuing a final decision in the disagreement

23. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -23 Interest Arbitration Binding determination of a collective bargaining agreement by an arbitrator

24. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -24 Trends in Collective Bargaining Changing Relationships Management Labor Cooperation Concessionary Bargaining New Forms of Cooperation

25. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -25 Presentation Slide 15-5 Concessionary Bargaining Possible Union Concessions Limits on wage increases Reductions in wage rates or elimination of cost-of-living allowance Adjustments in employee benefits Elimination of union restrictions on work rules or production standards Possible Concessions Sought By Unions Comparable salary restraints or reductions for managers Employment security guarantees Provisions for gainsharing Elimination of “outsourcing” Consultation on plant closures Participation in decisions affecting member welfare Severance pay and transfer rights Retraining

26. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -26 Reserved Rights Concept that management’s authority is supreme in all matters except those it has expressly conceded to the union in the collective agreement

27. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -27 Defined Rights Concept that management’s authority should be expressly defined and clarified in the collective agreement

28. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -28 Grievance Procedure Formal procedure that provides for the union to represent members and nonmembers in processing a grievance

29. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -29 Presentation Slide 15-6 Grievance Procedure Immediate Supervisor Grievance Immediate Supervisor Union Steward Department Manager Chief Steward VP Industrial Relations Local Union Representative Arbitration Contract Violation Step 1 Step 2 Step 3 Step 4 Step 5

30. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -30 Grievance Mediation Process where a neutral party assists in the resolution of an employee grievance

31. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -31 Arbitration Sources of Arbitrators Decision to Arbitrate Submission Agreement Fair Representation Doctrine Rights Arbitration Arbitration Award

32. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -32 Presentation Slide 15-7 The Arbitration Process Arbitrator declares the hearing open and obtains the submissions agreement. Parties present opening statements. Each side presents its case using witnesses and evidence; witnesses can be cross examined. Parties make closing statements. Arbitrator closes hearing and gives time for rendering the award.

33. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -33 Rights Arbitration Arbitration over interpretation of the meaning of contract terms or employee work grievances

34. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -34 Fair Representation Doctrine Doctrine under which unions have a legal obligation to provide assistance to both members and nonmembers in labor relations matters

35. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -35 Submission Agreement Statement that describes the issues to be resolved through arbitration

36. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -36 Arbitration Award Final and binding award issued by an arbitrator in a labor-management dispute

37. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -37 Presentation Slide 15-8 The Arbitration Award Arbitrator renders decision based on: Contract language Submission agreement Testimony and evidence presented Arbitration criteria or standards

38. Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning 15 -38 Expedited Arbitration A faster, less expensive, and less legalistic way to resolve grievances regarding discipline cases, routine work issues, and cases of insignificant monetary cost to the disputing parties