1. Chapter Fifteen Labor Relations and Collective Bargaining December 11, 2007

2. Copyright © Houghton Mifflin Company. All rights reserved. 15–2 Chapter Outline Historical, Legal, and Global Context of Unions How Unions Are Formed: The Organizing Process Collective Bargaining When Collective Bargaining Breaks Down: Impasse When the Meaning of the Contract is in Dispute: The Grievance Procedure The Role of Labor Relations in Human Resource Management

3. Copyright © Houghton Mifflin Company. All rights reserved. 15–3 Labor Relations in Historical Context Historical Context –Industrial Revolution –American Federation of Labor (AFL) - craft unions –Congress of Industrial Organizations (CIO) - industrial unions –Public Sector Growth since 1960s –Change to Win Federation – organizing model

4. Copyright © Houghton Mifflin Company. All rights reserved. 15–4 Figure 15.1 Union Membership as a Percentage of the Nonagricultural Labor Force, 1940-2003 Source: Data points 1980 and earlier compiled from Bureau of Labor Statistics, Handbook of Labor Statistics, 1980, table 165. Data points from 1985 and later compiled from Bureau of Labor Statistics, Employment and Earnings, January 1986, 1991, 1996, 2001, and 2003.

5. Copyright © Houghton Mifflin Company. All rights reserved. 15–5 Legal Context - Private Sector National Labor Relations Act (Wagner Act) of 1935 –Employees have the right to organize and bargain collectively. Labor-Management Relations Act (Taft- Hartley Act) of 1947 –Employers have rights too Both laws are enforced by the National Labor Relations Board

6. Copyright © Houghton Mifflin Company. All rights reserved. 15–6 Unfair Labor Practices by Management Interfere with employee rights to unionize Dominate labor organization Discriminate against employees for legal union activities or sentiments Refuse to bargain in good faith with exclusive representative of employees

7. Copyright © Houghton Mifflin Company. All rights reserved. 15–7 ULP Hypothetical A retail workers union is involved in a prolonged negotiation with the Acme Company. The negotiations have broken down to the point that the Acme lead negotiator refuses to deal with the union negotiator. Union requests for information have not been fulfilled. In response, the union informs the Widget Company, a major supplier to the Acme Company, that it will persuade the public to stop doing business with Widget unless it stops doing business with Acme Company. What, if any, ULPs have been committed?

8. Copyright © Houghton Mifflin Company. All rights reserved. 15–8 Unfair Labor Practices by Unions Coerce employees to join Cause employer to discriminate in favor of union members Refuse to bargain in good faith Secondary boycotts Excessive dues or fees Featherbedding (i.e. “firemen for diesel trains”)

9. Copyright © Houghton Mifflin Company. All rights reserved. 15–9 Legal Context - Public Sector Executive Orders, Civil Service Reform Act of 1978, State laws Federal Labor Relations Authority (FLRA) Federal employees may not strike and may not bargain over wages

10. Copyright © Houghton Mifflin Company. All rights reserved. 15–10 How Unions Are Formed: The Organizing Campaign Steps in Becoming Certified as Exclusive Bargaining Representative –Authorization Card Campaign (30%) –Petition NLRB for election –NLRB Determines the Bargaining Unit –Secret Ballot Election (union needs >50% of those who voted)

11. Copyright © Houghton Mifflin Company. All rights reserved. 15–11 Conduct During Organizing Campaigns Management may not threaten, spy, or promise benefits Management may explain why union is unnecessary/undesirable Management may bar non-employees such as professional union organizers from their premises.

12. Copyright © Houghton Mifflin Company. All rights reserved. 15–12 Collective Bargaining Structure of Bargaining –Pattern Bargaining – UAW and Teamsters –Multiemployer Bargaining or Association Types of Bargaining –Distributive –Integrative Types of Bargaining Items –Mandatory Items –Permissive Items –Illegal Items

13. Copyright © Houghton Mifflin Company. All rights reserved. 15–13 Interest-based Exercise Fact: Chronically ill senior employees are exceeding their accumulated sick leave and losing pay. What is the issue? What are some potential interests? What are some potential options?

14. Copyright © Houghton Mifflin Company. All rights reserved. 15–14 Table 15.7 Bargaining Items with Examples Source: Adapted from R. Allen and T. Keaveny, Contemporary Labor Relations © 1988 by Addison Wesley Publishing Company. Reprinted with permission of the publisher.

15. Copyright © Houghton Mifflin Company. All rights reserved. 15–15 Other Contract Clauses Management Rights Clause Union Security Clauses –Closed Shop –Union Shop –Open Shop

16. Copyright © Houghton Mifflin Company. All rights reserved. 15–16 Table 15.9 Right-to-Work States Source: Adapted from Labor Management Relations in a Changing World, First ed., p. 69 by Michael Ballot. Copyright © 1992 by John Wiley & Sons, New York, N.Y. Reprinted by permission of John Wiley & Sons, Inc.

17. Copyright © Houghton Mifflin Company. All rights reserved. 15–17 Contemporary Views on Unions (I) “I think the unions have played a very important role in the history of this country to improve the plight and conditions of laboring Americans. I think that like many other monopolies, in some cases they have then serious excesses…I think the key to unions is that any American has the right and privilege to join a union but should never be forced to do so.”

18. Copyright © Houghton Mifflin Company. All rights reserved. 15–18 Contemporary Views on Unions (II) “The real fact is, unions are going to take a more prominent role in the future for one simple reason: A lot of American workers are finding that their wages continue to get strapped lower and lower while CEO salaries are higher and higher...[which will] create a level of discontent that's going to create a huge appetite for unions.”

19. Copyright © Houghton Mifflin Company. All rights reserved. 15–19 When Collective Bargaining Breaks Down: Impasse Permanent Replacement of Strikers – employer right upheld by Supreme Court Types of Strikes and Rights of Strikers –Economic Strikes – protected under NLRA –Unfair Labor Practice Strikes Refusal to bargain Delay Negotiators without authority –Wildcat Strikes – in defiance of “no strike” clause

20. Copyright © Houghton Mifflin Company. All rights reserved. 15–20 When Collective Bargaining Breaks Down: Impasse and ADR (cont’d) Mediation – Federal Mediation and Conciliation Services Interest Arbitration Conventional Interest Arbitration Final-Offer Arbitration –By Package –By Issue Fact Finding National Emergency Dispute Procedures –Cooling-Off Period – 80 day prohibition of strike

21. Copyright © Houghton Mifflin Company. All rights reserved. 15–21 When the Meaning of the Contract is in Dispute: The Grievance Procedure Steps in the Grievance Procedure –Aggrieved employee complains –Supervisor responds –If employee unsatisfied, writes up grievance to appeal to higher levels of management –If still unsatisfied, may go to arbitration

22. Copyright © Houghton Mifflin Company. All rights reserved. 15–22 Hypo: Discipline of Union Reps A union steward asked his foreman for a pass to investigate the discharge of a probationary employee. His foreman refused and referred him to the general foreman. The general foreman argued that the discharge of a probationary employee was not a grievable issue and told the steward to go back to his job or risk discharge. The steward refused and he was discharged. Was the steward properly discharged? What if the steward had been rough or belligerent? What if no grievance had been filed?

23. Copyright © Houghton Mifflin Company. All rights reserved. 15–23 Interesting Web Sites Labor Community and at Harvard –http://www.aflcio.orghttp://www.aflcio.org –http://www.nlrb.gov –http://www.bls.govhttp://www.bls.gov –http://www.laborrelations.harvard.eduhttp://www.laborrelations.harvard.edu –http://www.changetowin.orghttp://www.changetowin.org –http://www.pon.harvard.edu (Project on Negotiation at Harvard Law School)http://www.pon.harvard.edu