1. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 1 15 Working with Organized Labor

2. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 2 Challenges Why do employees join unions? What agencies and laws regulate labor practices? What is union organizing, collective bargaining and contract administration? What is the managerial and HR role in resolving union grievances?

3. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 3 Why do Employee’s Join Unions? Job dissatisfaction Employees lack influence with management to make needed changes

4. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 4 Labor Relations: Wa gner Act Do not keep employees from forming unions or collective bargaining Do not provide financial support for union Do not discriminate against employee to encourage or discourage union membership Do not discharge or discriminate against employee who filed charges (gave testimony) under Act Do not refuse to bargain collectively with the union that employees chose

5. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 5 Labor Relations: Taft Hartley Act Limited some union power obtained under Wagner Act Cannot influence employer’s choice of representation in collective bargaining Bargain with employer in good faith Never charge employees excessive or discriminatory union dues as a condition of membership Never ask an employer to pay for services that are not performed

6. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 6 Labor Relations: Landrum-Griffen Act Each union has a bill of rights to ensure minimum standards of internal union democracy Each union must give their constitution to Department of Labor Each union must report its financial activities and financial interests of leaders to Department of Labor Union elections are regulated by government Union leaders have fiduciary responsibility to use union money and property for the membership, not for own personal gain

7. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 7 Union Membership in the United States, 1930 - 2000 10 15 25 30 35 40 19301935194019451950195519601965197019751980198519901995 20 2000

8. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 8 How Unions Differ Globally U.S. Unions -- less emphasis on political issues French Unions -- politically involved and less concerned with economic issues Chinese unions -- low in economic, political involvement due to Communist Party Swedish unions -- have a high degree of economic, political involvement

9. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 9 Types of Labor and Management Relations Open Conflict Armed Truce Working Harmony Labor Management Cooperation

10. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 10 Labor Relations Policy – Union Acceptance Strategy Our objective is to establish a labor relations policy that is consistent and fair. The purpose is to develop an agreeable working relationship with the union while retaining our full management rights. The rationale behind our labor relations policy is consistency, credibility, and fairness to union representatives and the workers who are in the union. To make our policy effective, the Company will:

11. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 11 Union Acceptance Policy (cont’d) Accept union representation of employees in good faith, provided the union represents the majority of our employees; Maintain the right of management to manage; Adopt procedures by which top management continuously supports the positions of its representatives in implementing the firm’s policies and practices in the area of industrial relations; Enforce disciplinary policies in a fair, firm and consistent manner;

12. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 12 See to it that union representatives follow all Company rules except those from which they are exempted under provisions of the labor contract; Handle all employee complaints fairly, firmly, and without discrimination; See that every representative of management exercises a maximum effort to follow Company policies fairly and consistently; and See to it that all decisions and agreements pertaining to the present contract are documented in writing. Union Acceptance Policy (cont’d)

13. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 13 Union Avoidance Strategy management tries to prevent its employees from joining a union, either by removing the incentive to unionize or by using hardball tactics.

14. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 14 3 Phases of Labor relations Union organizing Collective bargaining Contract administration

15. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 15 T.I.P.S. for pre-election conduct Management cannot Threaten Intimidate Promise Conduct surveillance

16. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 16 Good Faith Bargaining Behavior Both parties meet and confer with each other at reasonable time and place Both parties negotiate over wages, hours and conditions of employment (mandatory topics) Both parties sign a written contract that formalizes their agreement Each party gives the other a 60-day notice of termination or modification of the labor agreement before it expires

17. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 17 Mandatory Bargaining Topics Wages Base pay Overtime Retirement benefitsTravel pay Health benefitsIncentives Working ConditionsPromotionsSeniority Safety rulesWork rules Grievance proceduresLayoffs HoursOvertimeHolidays VacationShifts

18. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 18 Union Grievance Procedure Employee; Possible Union Steward Arbitration Business Representative, Grievance Committee National Union Representative and Local Union Representative Immediate Supervisor Department Manager Labor Relations Director Written Grievance Verbal Presentation 5 workdays 5 workdays 10 workdays 15 workdays Employee with a Grievance

19. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 19 Impact of Unions on HR Management Staffing Employee Development Compensation Employee Relations

20. © 2004 by Prentice Hall Terrie Nolinske, Ph.D. 15 - 20 Graduate students who are teaching assistants work long hours for low salaries. The National Labor Relations Board ruled in favor of grad students at New York University to form a union organized by United Auto Workers. Divide into two groups. Group one should argue against formation of a union. Group two should argue in favor of a union. (If you were a teaching assistant, why would you join?) Case