1. Labor Relations 2

2. The Labor Relations Process 1. 1. Union organizing Demonstrating interest NLRB Election 2. Collective bargaining “Good faith” bargaining “Good faith” bargaining 3. Contract administration Hiring, training, and job design Hiring, training, and job design Grievance procedures Grievance procedures

3. Impact of Unionization on Managers Control of Labor Costs Loss of Supervisory Authority

4. Labor Relations Strategy  Labor Relations Strategy  Overall plan for dealing with labor unions  Ranges from open conflict to labor- management cooperation

5. The Bargaining Process Collective Bargaining Process The process of negotiating a labor agreement, including the use of economic pressures by both parties. The process of negotiating a labor agreement, including the use of economic pressures by both parties. Bargaining Zone Area within which the union and the employer are willing to concede when bargaining. Area within which the union and the employer are willing to concede when bargaining. Interest-based Bargaining Problem-solving bargaining based on a win-win philosophy and the development of a positive long- term relationship. Problem-solving bargaining based on a win-win philosophy and the development of a positive long- term relationship.

6. Hold meetings at reasonable times and places to discuss employment conditions Proposals and counterproposals submitted by each party must be realistic and reasonable Good Faith Bargaining

7. Try to understand others’ needs and objectives Create a free flow of information Emphasize commonalities Minimize differences Search for solutions that meet all parties’ goals and objectives Develop flexible responses to other proposals Guidelines for Interest based Bargaining

8. Good Faith Bargaining Mandatory Subjects Permissive Subjects Illegal Subjects Bargaining Subject Categories

9. Bargaining Topics  Mandatory  Wages, hours, and employment conditions  Permissive  Both parties must agree  E.g. board service, retiree benefits  Illegal  Featherbedding  Discriminatory practices, etc.

10. Management and Union Power in Collective Bargaining Bargaining Power The power of labor and management to achieve their goals through economic, social, or political influence. The power of labor and management to achieve their goals through economic, social, or political influence.

11. Picketing Striking Union Power in Collective Bargaining Boycotting Boycott Our Employer This Union On Strike Unfair On Strike Don’t Buy Here

12. Employer Power in Collective Bargaining Management Bargaining Power Hiring permanent replacement workers Hiring permanent replacement workers Continuing operations staffed by management Continuing operations staffed by management Locking out employees Locking out employees

13. Items in a Labor Agreement

14. Union Security Agreements Dues Checkoff Gives the employer the responsibility of withholding union dues from the paychecks of union members who agree to such a deduction. Gives the employer the responsibility of withholding union dues from the paychecks of union members who agree to such a deduction. “Shop” Agreements Require employees to join or support the union. Require employees to join or support the union. Union shop requires employee membership. Union shop requires employee membership. Agency shop allows voluntary membership; employee must pay union dues and fees. Agency shop allows voluntary membership; employee must pay union dues and fees.

15. The Labor Relations Process 1. 1. Union organizing Demonstrating interest NLRB Election 2. 2. Collective bargaining “Good faith” bargaining 3. Contract administration Hiring, training, and job design Hiring, training, and job design Grievance procedures Grievance procedures

16. Grievance Procedure Step by step process used to settle disputes Step by step process used to settle disputes Union steward—advocate for the employee Union steward—advocate for the employee Arbitration—last step in grievance process Arbitration—last step in grievance process Contract Administration  Two Types of Grievances  Contract interpretation  Employee discipline

17. Five-Step Grievance Procedure

18. Grievance Arbitration Rights Arbitration Arbitration over interpretation of the meaning of contract terms or employee work grievances. Arbitration over interpretation of the meaning of contract terms or employee work grievances. Fair Representation Doctrine The doctrine under which unions have a legal obligation to provide assistance to both members and nonmembers in labor relations matters. The doctrine under which unions have a legal obligation to provide assistance to both members and nonmembers in labor relations matters.

19. The Arbitration Hearing The arbitrator declares the hearing open and obtains the submission 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 designates date and time for rendering the award.

20. The Arbitration Award Factors arbitrators use to decide cases: The wording of the labor agreement (or employment policy in nonunion organizations). 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. The submission agreement (statement of problem to be solved) as presented to the arbitrator. Testimony and evidence offered during the hearing. Testimony and evidence offered during the hearing. Arbitration criteria or standards (similar to standards of common law) against which cases are judged. Arbitration criteria or standards (similar to standards of common law) against which cases are judged.

21. Areas for Union Organizing Retail workers Wal-Mart ( 3,300 stores and one million workers) Wal-Mart ( 3,300 stores and one million workers) Health care workers HMO doctors and nurses HMO doctors and nurses High-tech workers Yahoo and Amazon Yahoo and Amazon Auto industry U.S.-based foreign makers U.S.-based foreign makers Supplier companies Supplier companies Government and Education

22. Adversarial Nature of Labor-Management Relations Adversarial Nature of Labor-Management Relations Shrinking Union Membership Shrinking Union Membership Labor Relations in the U.S.

23. Union Challenges Anti-union efforts Over the last four years, the National Labor Relations Board has filed more than 40 complaints against Wal-Mart, accusing managers in more than two dozen stores of: including improperly firing union supporters including improperly firing union supporters intimidating workers intimidating workers threatening to deny bonuses if workers unionized. threatening to deny bonuses if workers unionized.Decertification July 2002 LOS ANGELES - Local Boeing Co. engineers have voted to throw out the union that has represented them for 56 years in one of the nation's largest union decertifications in history, according to the National Labor Relations Board.

24. Union Challenges Wal-Mart Stores Inc. said Wednesday it will close a Canadian store whose workers are on the verge of becoming the first ever to win a union contract from the world's biggest retailer. Wal-Mart said it was shuttering the store in Jonquiere, Quebec, in response to unreasonable demands from union negotiators, that would make it impossible for the store to sustain its business. Wal-Mart said it was shuttering the store in Jonquiere, Quebec, in response to unreasonable demands from union negotiators, that would make it impossible for the store to sustain its business. AP 2.9.05

25. Union Challenges Making the case for collective bargaining Making the case for collective bargaining Oct 2001 Nissan North America's plant in Smyrna, Tenn., voted resoundingly against joining the UAW. Oct 2001 Nissan North America's plant in Smyrna, Tenn., voted resoundingly against joining the UAW. Honda of America Manufacturing Inc.'s 10,000 workers in Ohio have also resisted unionization. Honda of America Manufacturing Inc.'s 10,000 workers in Ohio have also resisted unionization. The UAW holds up its relationships with the Big 3 as evidence of a better way, but transplant workers instead see evidence of recurring layoffs and adversarial working relations. The UAW holds up its relationships with the Big 3 as evidence of a better way, but transplant workers instead see evidence of recurring layoffs and adversarial working relations. Workers see profitability, generous benefits, company expansions and advancement opportunities. Workers see profitability, generous benefits, company expansions and advancement opportunities.

26. Unions—thrive when employees are dissatisfied and lack influence with mgmt Managers should be aware of labor relations laws Union-management relationship historically adversarial Strategy: acceptance vs. avoidance Unions impact almost every area of HRM Summary and Conclusions