1. BANGOR TRANSFER ABROAD PROGRAMME EMPLOYMENT RELATIONS

2. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–2 Why Do Workers Organize? SolidaritySolidarity  To get their fair share  Improved wages, hours, working conditions, and benefits  To protect themselves from management whims Conditions Favoring Employee OrganizationConditions Favoring Employee Organization  Low morale  Fear of job loss  Arbitrary management actions

3. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–3 What Do Unions Want? Increased workplace security for the union Improved wages, hours, working conditions, job security, and benefits Union Bargaining Aims

4. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–4 Union Security Closed shop Open shop Union shop Types of Union Security Agency shop Membership maintenance

5. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–5 Unfair Employer Labor Practices To “interface with, restrain, or coerce employees” in exercising their right of self-organizationTo “interface with, restrain, or coerce employees” in exercising their right of self-organization To dominate or interfere with either the formation or the administration of labor unionsTo dominate or interfere with either the formation or the administration of labor unions To discriminate against employees for legal union activitiesTo discriminate against employees for legal union activities To discharge or discriminate against employees who file unfair practice charges against the companyTo discharge or discriminate against employees who file unfair practice charges against the company To refuse to bargain collectively with their employees’ representativesTo refuse to bargain collectively with their employees’ representatives

6. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–6 Unfair Union Labor Practices To restrain or coerce employees from exercising their guaranteed bargaining rights.To restrain or coerce employees from exercising their guaranteed bargaining rights. To cause an employer to discriminate against employees in order to encourage or discourage their membership in a union.To cause an employer to discriminate against employees in order to encourage or discourage their membership in 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.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. To engage in “featherbedding” (requiring an employer to pay an employee for services not performed).To engage in “featherbedding” (requiring an employer to pay an employee for services not performed).

7. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–7 FIGURE 15–4Union Avoidance: What Not to Do Watch what you say. Angry feelings of the moment may get you in trouble. Never threaten workers with what you will do or what will happen if a union comes in. Do not say, for example, that the business will close or move, that wages will go down or overtime will be eliminated, that there will be layoffs, etc. Don’t tell union sympathizers that they will suffer in any way for their support. Don’t terminate or discipline workers for engaging in union activities. Don’t interrogate workers about union sympathizers or organizers. Don’t ask workers to remove union screensavers or campaign buttons if you allow these things for other organizations. Don’t treat pro-union or anti-union workers any differently. Don’t transfer workers on the basis of union affiliation or sympathies. Don’t ask workers how they are going to vote or how others may vote. Don’t ask employees about union meetings or any matters related to unions. You can listen, but don’t ask for details. Don’t promise workers benefits, promotions, or anything else if they vote against the union. Avoid becoming involved—in any way—in the details of the union’s election or campaign, and don’t participate in any petition movement against the union. Don’t give financial aid or any support to any unions. Any one of these practices may result in a finding of “unfair labor practices,” which may in turn result in recognition of a union without an election, as well as fines for your firm. Human resources professionals must be very careful to do the following during union activities at their firms:

8. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–8 Violations of Good Faith Bargaining 1.Surface bargaining 2.Inadequate concessions 3.Inadequate proposals and demands 4.Dilatory tactics 5.Imposing conditions 6.Making unilateral changes in conditions 7.Bypassing the representative 8.Committing unfair labor practices during negotiations 9.Withholding information 10.Ignoring bargaining items

9. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–9 Preparing for Negotiations Sources of Negotiating InformationSources of Negotiating Information  Local and industry pay and benefits comparisons  Distribution of demographics of the workforce  Benefit costs, overall earnings levels, and the amount and cost of overtime  Cost of the current labor contract and the increased cost—total, per employee, and per hour—of the union’s demands  Grievances and feedback from supervisors  Attitude surveys of employees  Informal conferences with local union leaders

10. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–10 Classes of Bargaining Items Mandatory items Illegal items Bargaining Item Categories Voluntary items

11. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–11 TABLE 15–1Bargaining Items MandatoryPermissibleIllegal Rates of pay Wages Hours of employment Overtime pay Shift differentials Holidays Vacations Severance pay Pensions Insurance benefits Profit-sharing plans Christmas bonuses Company housing, meals, and discounts Employee security Job performance Union security Management–union relationship Drug testing of employees Indemnity bonds Management rights as to union affairs Pension benefits of retired employees Scope of the bargaining unit Including supervisors in the contract Additional parties to the contract such as the international union Use of union label Settlement of unfair labor charges Prices in cafeteria Continuance of past contract Membership of bargaining team Employment of strike breaker Closed shop Separation of employees based on race Discriminatory treatment

12. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–12 Bargaining Stages 1.Presentation of initial demands  Both parties are usually quite far apart on some issues. 2.Reduction of demands  Each side trades off some of its demands to gain others. 3.Subcommittee studies  The parties form joint subcommittees to try to work out reasonable alternatives. 4.An informal settlement  Each group goes back to its sponsor.  Union members vote to ratify the agreement. 5.Signing the formal agreement

13. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–13 Bargaining Hints 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 data supporting your position. 5.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 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.

14. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–14 Bargaining Hints (cont’d) 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.Remember that collective bargaining is a compromise process. There is no such thing as having all the pie. 15.Try to understand the people and their personalities.

15. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–15 When Bargaining Stops An ImpasseAn Impasse  Usually occurs because one party is demanding more than the other will offer.  Sometimes an impasse can be resolved through a third party—a disinterested person such as a mediator or arbitrator.  If the impasse is not resolved:  The union may call a work stoppage, or strike, to put pressure on management.  Management may lock out employees.

16. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–16 Resolution of an Impasse Mediation Arbitration Third Party Involvement Fact finding

17. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–17 Third-Party Involvement MediationMediation  A neutral third party (mediator) tries to assist the principals in reaching an agreement by holding meetings with each party to find common ground for further bargaining.  The mediator is a go-between and has no authority to dictate terms or make concessions.  The mediator communicates assessments of the likelihood of a strike, the possible settlement packages available, and the like.

18. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–18 Third-Party Involvement (cont’d) Fact FinderFact Finder  A neutral party who studies the issues in a dispute and makes a public recommendation for a reasonable settlement. ArbitrationArbitration  An arbitrator often has the power to determine and dictate the settlement terms.  Binding arbitration can guarantee a solution to an impasse.  Interest arbitration for labor agreements  Rights arbitration defines the terms of existing contracts

19. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–19 Resolving an Impasse: Union Strikes Economic strike Unfair labor practice strike Wildcat strike Sympathy strike Types of Strikes

20. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–20 Pressure Tactic Alternatives UnionsUnions  Picketing  Corporate campaign  Boycott  Inside games  Injunctions EmployersEmployers  Replacement workers  Lockouts  Injunctions

21. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–21 Main Sections of a Contract Agreement Management rightsManagement rights Union security and automatic payroll dues deductionUnion security and automatic payroll dues deduction Grievance proceduresGrievance procedures Arbitration of grievancesArbitration of grievances Disciplinary proceduresDisciplinary procedures Compensation ratesCompensation rates Hours of work and overtimeHours of work and overtime Benefits: vacations, holidays, insurance, pensionsBenefits: vacations, holidays, insurance, pensions Health and safety provisionsHealth and safety provisions Employee security seniority provisionsEmployee security seniority provisions Contract expiration dateContract expiration date

22. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–22 Grievances GrievanceGrievance  Any factor involving wages, hours, or conditions of employment that is used as a complaint against the employer Sources of GrievancesSources of Grievances  Discipline  Seniority  Job evaluations  Work assignments  Overtime  Vacations  Incentive plans  Holiday pay  Problem employees  Absenteeism  Insubordination  Plant rules

23. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–23 Grievance Procedure Grievant and shop steward meet with supervisor.Grievant and shop steward meet with supervisor.  If not resolved, employee files formal grievance Grievant and shop steward meet with supervisor’s boss.Grievant and shop steward meet with supervisor’s boss.  If grievance is not resolved, meeting with higher-level managers. If not resolved, matter goes to arbitration.If not resolved, matter goes to arbitration.

24. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–24 Handling Grievances: Do 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. 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.

25. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–25 Handling Grievances: Don’t 1.Discuss the case with the union steward alone—the grievant should be there. 2.Make arrangements with individual employees that are inconsistent with the labor agreement. 3.Hold back the remedy if the company is wrong. 4.Admit to the binding effect of a past practice. 5.Relinquish to the union your rights as a manager. 6.Settle grievances on what is “fair.” Stick to the labor agreement. 7.Bargain over items not covered by the contract. 8.Treat as subject to arbitration claims demanding discipline or discharge of managers. 9.Give long written grievance answers. 10.Trade a grievance settlement for a grievance withdrawal. 11.Deny grievances because “your hands are tied by management.” 12.Agree to informal amendments in the contract.

26. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–26 The Union Movement Today and Tomorrow Reasons for the Decline in Union MembershipReasons for the Decline in Union Membership  Laws have taken over much of the union’s role as the workers’ protector.  Automation, globalization, and technology have reduced jobs in unionized manufacturing sectors.  Unions have failed to organize new plants.  Management has become better at resisting union-organizing efforts. Upswing Coming?Upswing Coming?  Unions have been more aggressive lately in organizing public sector workers and white-collar workers.

27. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–27 Public Employees and Unions Size of Public UnionsSize of Public Unions  The National Education Association; the American Federation of State, County, and Municipal Employees; and the American Federation of Teachers—are among the largest U.S. unions. Laws Supporting Public Sector OrganizingLaws Supporting Public Sector Organizing  Executive Order 10988  Recognized organizing rights of public sector employees  Title VII of the Civil Service Reform Act of 1978 (known as the Federal Labor Relations Act)  Established the Federal Labor Relations Authority

28. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–28 Organizing professionals and white-collar employees Pushing “card check” for union recognition Filing class action lawsuits to support workers Forming alliances with overseas unions New Union Tactics

29. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall15–29 High-Performance Work Systems, Employee Participation, and Unions To avoid having participation programs viewed as sham unions:To avoid having participation programs viewed as sham unions:  Involve employees in the formation of programs.  Emphasize that programs exist only to address issues such as quality and productivity.  Don’t establish programs when union organizing activities are beginning.  Use volunteers and rotate membership.  Minimize management participation in programs to avoid interference or the perception of domination.