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1 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. The Dynamics of Labor Relations 1–1 The Challenges of Human Resources Management

2 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 of 46 Test Your Labor Relations Know-How

3 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3 of 46 (cont.) Test Your Labor Relations Know-How (cont.)

4 15–4 The Labor Movement 1790Skilled craftsmen organize into trade unions. 1869The Knights of Labor seek social and political reform. 1886American Federation of Labor pursues bread-and-butter issues and improved working conditions. 1935National Labor Relations Act fosters organizing and the rapid growth of labor unions. 1947Taft-Hartley Act regulates union activities. 1955AFL and CIO merge. 1970sUnion membership peaks and begins to steadily decline.

5 15–5 The AFL-CIO The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)  A voluntary federation of about 56 national and international labor unions in the United States Structure of the AFL-CIOStructure of the AFL-CIO  Local unions  National unions  National federation Change to Win CoalitionChange to Win Coalition  Six large unions that split from the AFL-CIO

6 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 6 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 6 of 46 Structure and Functions of the AFL-CIO GENERAL BOARD Executive members and principal officer of each international union affiliate Meets upon call of federation president of executive council GENERAL BOARD Executive members and principal officer of each international union affiliate Meets upon call of federation president of executive council Standing committees Staff departments Affiliated national and international unions Local unions of national and international unions Local unions affiliated directly with AFL-CIO Affiliated state bodies Local bodies

7 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 7 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 7 of 46 Structure and Functions of the AFL-CIO (cont.) The “House of Labor”The “House of Labor”  Disseminates labor policy developed by leaders of affiliated unions.  Coordinates organizing activities among affiliated unions.  Provides research and other assistance through its various departments.  Lobbies before legislative bodies on labor subjects  Publicizes the concerns and benefits of unionization  Resolves disputes between different unions

8 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8 of 46 Structure and Functions of National Unions National UnionsNational Unions  set the broad guidelines for governing union members and for formulating collective bargaining goals in dealing with management  establishes the rules and conditions under which the local unions may be chartered Other services:Other services: 1.training of union leaders, 2.legal assistance, 3.leadership in political activity, 4.educational and public relations programs, and 5.discipline of union members.

9 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 of 46 Structure and Functions of Local Unions Local Union Meeting (Normally Monthly) President Business Representative Various Committee Chairpersons Vice-Presidents Secretary/Treasurer Sergeant at Arms Training and Education Grievance Committee: Chief Steward and Shop Stewards Collective Bargaining Social Local Union Members

10 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 of 46 Structure and Functions of Local Unions (cont.) Local OfficersLocal Officers  Elected officials who lead the union and serve on the bargaining committee for a new contract. Union StewardUnion Steward  An employee, as a nonpaid union official, represents the interests of members in their relations with management. Business UnionismBusiness Unionism  The term applied to the goals of U.S. labor organizations, which collectively bargain wages, hours, job security, and working conditions.

11 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11 of 46 Why Employees Unionize As a result of their economic needs (wages and benefits)As a result of their economic needs (wages and benefits) Dissatisfaction with managerial practicesDissatisfaction with managerial practices To fulfill social and status needs.To fulfill social and status needs. Social and leadership concernsSocial and leadership concerns Conditions favoring employee organizationConditions favoring employee organization  Low morale  Fear of job loss  Arbitrary management actions

12 15–12 What Do Unions Want? Increased workplace security for the union Improved wages, hours, working conditions, job security, and benefits Union Bargaining Aims

13 15–13 Union Security Closed shop Open shop Union shop Types of Union Security Agency shop Membership maintenance

14 15–14 Union Security (cont’d) Right to Work LawsRight to Work Laws  Section 14(b) of the Taft-Hartley Act  Permits states to ban the requirement of union membership as a condition of employment and to forbid the negotiation of compulsory union membership provisions.  Twenty-three “right to work” states ban all forms of union security which greatly inhibits union formation in those states.

15 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 15 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 15 of 46 Union Avoidance Practices PayPay Promote more employees from withinPromote more employees from within Conduct cultural auditsConduct cultural audits Offer job rotations and training programsOffer job rotations and training programs Share information with employeesShare information with employees Have desirable working conditionsHave desirable working conditions

16 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16 of 46 Government Regulation of Labor Relations Major Labor LawsMajor Labor Laws  Railway Labor Act (RLA) of 1926  Norris LaGuardia Act (Anti-Injunction Act)  Wagner Act (National labor Relations Act) of 1935 – National Labor Relations Board  Taft-Harley Act (Labor-Management Relations Act) of 1947  Landrum-Griffin Act (Labor-Management Disclosure Act) of 1959

17 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17 of 46 Government Regulation of Labor Relations (cont.) Railway Labor Act (RLA) of 1926Railway Labor Act (RLA) of 1926  Purpose of the act is to avoid service interruptions resulting from disputes between railroads and their operating unions.  National Mediation Board  National Railway Adjustment Board Norris-LaGuardia Act of 1932Norris-LaGuardia Act of 1932  Restricts the ability of employers to obtain an injunction against unions for their lawful activities.

18 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18 of 46 Wagner (NLRA) Act Wagner Act (National Labor Relations Act) of 1935Wagner Act (National Labor Relations Act) of 1935  Protects employee rights to organize and bargain collectively through representatives of their choice.  Created the National Labor Relations Board (NLRB) to govern labor relations in the United States. – Holds secret ballot union representation elections. – Prevents and remedies unfair labor practices.

19 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 19 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 19 of 46 (cont.) Wagner (NLRA) Act (cont.) Section 7 of the Act guarantees employee rights:Section 7 of the Act guarantees employee rights:  To self-organization, to form, join, or assist labor organizations, to bargain collectively through freely chosen representatives.  To engage in concerted activities, for the purpose of collective bargaining or other mutual aid or protection.  To refrain from any or all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment.

20 15–20 Unfair Employer Labor Practices To “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 unions To discriminate against employees for legal union activities To discharge or discriminate against employees who file unfair practice charges against the company To refuse to bargain collectively with their employees’ representatives

21 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 21 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 21 of 46 (cont.) Wagner (NLRA) Act (cont.) Section 8 of the Wagner Act outlawed employer practices that deny employees their rights and benefits:Section 8 of the Wagner Act outlawed employer practices that deny employees their rights and benefits:  Interference with Section 7 rights  Domination of a union (company union)  Discrimination against union members  Arbitrary discharge of union members  Refusal to bargain with the union

22 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 22 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 22 of 46 Amendments to the Wagner Act Taft-Hartley Act (The Labor-Management Relations Act) of 1947Taft-Hartley Act (The Labor-Management Relations Act) of 1947  Balances rights and duties of labor and management in collective bargaining by defining unfair union practices.  Created the Federal Mediation and Conciliation Service (FMCS) to help resolve negotiating disputes. Landrum-Griffin Act (Labor-Management Reporting and Disclosure Act) of 1959Landrum-Griffin Act (Labor-Management Reporting and Disclosure Act) of 1959  Safeguards union member rights and prevents racketeering and other unscrupulous practices by employers and union officers.

23 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 23 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 23 of 46 Taft-Hartley Act (Unfair Union Practices ) Unions are prohibited from:Unions are prohibited from:  Interfering with Section 7 rights of employees  Interfering with representation elections  Influencing employers to discriminate with regard to union membership  Refusal to bargain collectively with employer  Interference with certified employee representative’s relationship with employer  Assessment of excessive initiation fees and dues on bargaining unit members  “Featherbedding”

24 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 24 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 24 of 46 Landrum-Griffin Act (Bill of Rights of Union Members) Union members have the right to:Union members have the right to:  Nominate candidates for union office  Vote in union elections or referendums  Attend union meetings  Participate in union meetings and vote on union business  Examine union accounts and records  Bring suit against union officers as necessary to protect union funds

25 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 25 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 25 of 46 The Labor Relations Process

26 15–26 The Union Drive and Election Step 1. Initial ContactStep 1. Initial Contact  The union determines employees’ interest in organizing, and sets up an organizing committee.  Labor relations consultants  Union salting Step 2. Obtaining Authorization CardsStep 2. Obtaining Authorization Cards  30% of eligible employees in an appropriate bargaining unit must sign cards authorizing the union to petition the NLRB for an election.

27 15–27 The Organizing Drive Obtaining Authorization CardsObtaining Authorization Cards  Let the union seek a representation election.  Designate the union as a bargaining representative in all employment matters.  State that the employee has applied for membership in the union and will be subject to union rules and bylaws.  Can be collected and distributed by unions through the Internet.

28 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 28 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 28 of 46 United Food and Commercial Workers International Union Authorization Card

29 15–29 The Organizing Drive (cont’d) Employer Responses to OrganizingEmployer Responses to Organizing  Can attack the union on ethical and moral grounds and cite the cost of union membership  Cannot make promises of benefits  Cannot make unilateral changes in terms and conditions of employment that were not planned to be implemented prior to the onset of union organizing activity  Can inform employees of their right to revoke their authorization cards

30 15–30 The Organizing Drive (cont’d) Union Activities During OrganizingUnion Activities During Organizing  Unions can picket the firm, subject to three constraints:  It must file a petition for an election within 30 days after the start of picketing.  The firm cannot already be lawfully recognizing another union.  There cannot have been a valid NLRB election during the past 12 months.

31 15–31 The Union Drive and Election (cont’d) Step 3. Hold a HearingStep 3. Hold a Hearing  Consent election  Employer chooses not to contest union recognition at all.  Stipulated election  The employer chooses not to contest: –The union’s right to an election –Scope of the bargaining unit –Which employees are eligible to vote in the election  Contesting the union’s right to an election  An employer can insist on an NLRB hearing to determine if employees wish to elect a union to represent them.

32 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 32 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 32 of 46 The Labor Relations Process

33 15–33 NLRB Form 852: Notice of Representation Hearing

34 15–34 NLRB Hearing Officer’s Duties Determining if the record indicates there is enough evidence to hold an electionDetermining if the record indicates there is enough evidence to hold an election  Did 30% of the employees in an appropriate bargaining unit sign the authorization cards? Deciding what the bargaining unit will beDeciding what the bargaining unit will be  The bargaining unit is the group of employees that the union will be authorized to represent and bargain for collectively.

35 15–35 The Union Drive and Election (cont’d) Step 4. The CampaignStep 4. The Campaign  Both sides present their platforms. Step 5. The ElectionStep 5. The Election  Held within 30 to 60 days after the NLRB issues its Decision and Direction of Election.  The election is by secret ballot; the NLRB provides and counts the ballots.  The union becomes the employees’ representative by getting a majority of the votes cast in the election.

36 15–36 Sample NLRB Ballot

37 15–37 How to Lose a NLRB Election Reason 1.Asleep at the SwitchReason 1.Asleep at the Switch Reason 2.Appointing a CommitteeReason 2.Appointing a Committee Reason 3.Concentrating on Money and BenefitsReason 3.Concentrating on Money and Benefits Reason 4.Industry Blind SpotsReason 4.Industry Blind Spots Reason 5.Delegating Too Much to DivisionsReason 5.Delegating Too Much to Divisions

38 15–38 The Union Drive and Election (cont’d) The Supervisor’s RoleThe Supervisor’s Role  Unfair labor practices by supervisors:  Could cause the NLRB to hold a new election after the company has won a previous election.  Could cause the company to forfeit the second election and go directly to contract negotiation.

39 15–39 Union 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:

40 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 40 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 40 of 46 Employer Tactics Opposing Unionization Stressing favorable employer-employee relationship experienced without a union.Stressing favorable employer-employee relationship experienced without a union. Emphasize current advantages in wages, benefits, or working conditions the employees may enjoyEmphasize current advantages in wages, benefits, or working conditions the employees may enjoy Emphasize unfavorable aspects of unionism: strikes, union dues, abuses of legal rightsEmphasize unfavorable aspects of unionism: strikes, union dues, abuses of legal rights Use statistics to show that unions commit large numbers of unfair labor practices.Use statistics to show that unions commit large numbers of unfair labor practices. Initiate legal action when union members and leaders engage in unfair labor practicesInitiate legal action when union members and leaders engage in unfair labor practices

41 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 41 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 41 of 46 Employer “Don’ts” during Union Organizing Campaigns

42 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 42 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 42 of 46 Labor Relations in the Public Sector Challenges to Public Sector Unionization:Challenges to Public Sector Unionization:  No national-level public sector labor relations laws  Public employees’ wages and working conditions set by law – Collective bargaining for federal employees governed by executive orders and the Civil Service Reform Act of 1978 – Various public civil service systems address public employee complaints or grievances  Substitution of compulsory binding arbitration for the guaranteed right to strike

43 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 43 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 43 of 46 The Collective Bargaining Process

44 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 44 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 44 of 46 The Bargaining Process Collective Bargaining ProcessCollective Bargaining Process  The process of negotiating a labor agreement, including the use of economic pressures by both parties. – Preparing for Negotiations – Gathering Bargaining Data – Developing Bargaining Strategies and Tactics – Negotiating the Labor Agreement Bargaining ZoneBargaining Zone  Area within which the union and the employer are willing to concede when bargaining.

45 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 45 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 45 of 46

46 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 46 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 46 of 46 (cont.) The Bargaining Process (cont.) Good Faith Bargaining RequirementsGood Faith Bargaining Requirements  Meetings to be held at reasonable times and places to discuss employment conditions.  Proposals and counterproposals submitted by each party must be realistic and reasonable.  Both parties must sign a written document of the agreement reached through negotiations Interest-based BargainingInterest-based Bargaining  Problem-solving bargaining based on a win-win philosophy and the development of a positive long- term relationship.

47 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 47 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 47 of 46 Management and Union Power in Collective Bargaining Bargaining PowerBargaining Power  The power of labor and management to achieve their goals through economic, social, or political influence. Union Bargaining PowerUnion Bargaining Power  Strikes, pickets, and boycotts Management Bargaining PowerManagement Bargaining Power  Hiring permanent replacement workers  Continuing operations staffed by management  Locking out employees

48 15–48 Bargaining 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

49 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 49 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 49 of 46 Administration of the Labor Agreement The bulk of labor relations activity comes from the day-to-day administration of the agreement because no agreement could possibly anticipate all the forms that disputes may take.The bulk of labor relations activity comes from the day-to-day administration of the agreement because no agreement could possibly anticipate all the forms that disputes may take. Once the agreement is signed, each side will naturally interpret ambiguous clauses to its own advantage. These differences are traditionally resolved through the grievance procedure.Once the agreement is signed, each side will naturally interpret ambiguous clauses to its own advantage. These differences are traditionally resolved through the grievance procedure.

50 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 50 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 50 of 46

51 15–51 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

52 15–52 Sample Online Grievance Form

53 15–53 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.

54 15–54 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.

55 15–55 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.

56 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 56 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 56 of 46 Grievance Arbitration Rights ArbitrationRights Arbitration  Arbitration over interpretation of the meaning of contract terms or employee work grievances. Fair Representation DoctrineFair Representation Doctrine  The doctrine under which unions have a legal obligation to provide assistance to both members and nonmembers in labor relations matters.

57 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 57 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 57 of 46 Grievance (Rights) Arbitration Submission agreement and awards Rights arbitration and EEO conflicts Issues in deciding to use arbitration as a method for dispute resolution Use of binding arbitration Fair Representation Doctrine Methods for choosing an arbitrator

58 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 58 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 58 of 46 Arbitration Hearing The arbitrator declares the hearing open and obtains the submission agreement.The arbitrator declares the hearing open and obtains the submission agreement. Parties present opening statements.Parties present opening statements. Each side presents its case using witnesses and evidence; witnesses can be cross examined.Each side presents its case using witnesses and evidence; witnesses can be cross examined. Parties make closing statements.Parties make closing statements. Arbitrator closes hearing and designates date and time for rendering the award.Arbitrator closes hearing and designates date and time for rendering the award.

59 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 59 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 59 of 46 Arbitration Award Factors arbitrators use to decide cases:Factors arbitrators use to decide cases:  The wording of the labor agreement (or employment policy in nonunion organizations).  The submission agreement (statement of problem to be solved) as presented to the arbitrator.  Testimony and evidence offered during the hearing.  Arbitration criteria or standards (similar to standards of common law) against which cases are judged.

60 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 60 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 60 of 46 Contemporary Challenges to Labor Organizations Decrease in Union MembershipDecrease in Union Membership  A shift from traditional unionized industries (manufacturing, mining) to high technology industries (computers, pharmaceuticals).  Growth in the employment of part-time and temporary workers.  Growth in small businesses, in which unionization is more costly and difficult to perform.  Globalization of the workforce particularly among low wage employers

61 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 61 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 61 of 46 (cont.) Contemporary Challenges to Labor Organizations (cont.) Globalization and Technological ChangeGlobalization and Technological Change  Offshoring: work that was previously carried out in one country moved to another  most of the recent growth in U.S. companies comes from outside of the country Employers need to pay more attention to the relevant stakeholders such as unions, employees and communities in which they operateEmployers need to pay more attention to the relevant stakeholders such as unions, employees and communities in which they operate Most job loss in America is not due to offshoring, but rather to technological changes.Most job loss in America is not due to offshoring, but rather to technological changes.

62 15–62 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

63 15–63 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.

64 15–64 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  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


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