Working with Organized Labor 15 Working with Organized Labor

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?

What is a Union? Unions – An organization that represents employees’ interests to management on such issues as wages, work hours, and working conditions As the textbook indicates, The union’s best ally is bad management.

Why do Employee’s Join Unions? Job dissatisfaction Employees lack influence with management to make needed changes As the textbook indicates, The union’s best ally is bad management.

Role of the Manager in Labor Relations Labor Relations Specialists Managers: day-to-day labor-management relations Need to understand workplace issues associated with unions: Unions start where employees are dissatisfied If there is a union managers are responsible for the day-to-day operations of the labor agreement Need to have a basic understanding of the labor laws so as to not create a liability The Wagner Act was passed during the Great Depression in 1935. It was designed to protect employees’ rights to form and join unions and to engage in activities such as strikes, picketing, and collective bargaining. The Wagner Act created the National Labor Relations Board, an independent federal agency charged with administering U.S. labor law. The Wagner Act also established the five illegal labor practices outlined here.

Labor Relations and the Legal Environment Laws enacted to try and balance: Employer Rights To operate business free from unnecessary interference Union Rights To organize and bargain for their members Individual Rights To choose their representatives or to decide they do not want representation by a union The Wagner Act was passed during the Great Depression in 1935. It was designed to protect employees’ rights to form and join unions and to engage in activities such as strikes, picketing, and collective bargaining. The Wagner Act created the National Labor Relations Board, an independent federal agency charged with administering U.S. labor law. The Wagner Act also established the five illegal labor practices outlined here.

Wagner Act (National Labor Relations Act) (1935) Designed to protect employee rights to form and join unions Created the National Labor Relations Board (NLRB): Administer certification elections Prevent and remedy unlawful acts (unfair labor practices) Identified 5 illegal labor practices The Wagner Act was passed during the Great Depression in 1935. It was designed to protect employees’ rights to form and join unions and to engage in activities such as strikes, picketing, and collective bargaining. The Wagner Act created the National Labor Relations Board, an independent federal agency charged with administering U.S. labor law. The Wagner Act also established the five illegal labor practices outlined here.

Wagner Act (National Labor Relations Act) (1935) Five illegal labor practices: Do not keep employees from forming unions or collective bargaining Do not dominate or interfere with the formation or administration of a union or 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 The Wagner Act was passed during the Great Depression in 1935. It was designed to protect employees’ rights to form and join unions and to engage in activities such as strikes, picketing, and collective bargaining. The Wagner Act created the National Labor Relations Board, an independent federal agency charged with administering U.S. labor law. The Wagner Act also established the five illegal labor practices outlined here.

Taft Hartley Act (1947) Designed to limit some of the power unions acquired under the Wagner Act Right-to-work law (most controversial) – a state law that makes it illegal within that state for a union to include a union shop clause in its contract (currently 22 states) Made closed shops illegal (Landrum-Griffin Act later made an exception for the construction industry) Allows for decertification of a union Created the Federal Mediation and Conciliation Service The Taft-Hartley Act, enacted in 1947, was designed to limit some of the power that unions acquired under the Wagner Act and to protect the rights of management and employees. The Taft-Hartley Act was favorable to management’s interests, but its goals were to adjust the regulation of labor-management relations to ensure a level playing field for both parties. The Taft-Hartley Act established the six unfair union labor practices outlined here and on the next illustration.

Taft Hartley Act (1947) Six unfair union labor practices: Cannot influence employer’s choice of representation in collective bargaining Causing or attempting to cause an employer to discriminate against any employee who is not a member of the union Refusing to bargain with employer in good faith Asking or requiring its members to boycott products made by a firm engaged in a labor dispute with another union 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 The Taft-Hartley Act, enacted in 1947, was designed to limit some of the power that unions acquired under the Wagner Act and to protect the rights of management and employees. The Taft-Hartley Act was favorable to management’s interests, but its goals were to adjust the regulation of labor-management relations to ensure a level playing field for both parties. The Taft-Hartley Act established the six unfair union labor practices outlined here and on the next illustration.

Landrum-Griffin Act (1959) Designed to protect union members and their participation in union affairs, allows the government to regulate union activities: 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 The Landrum-Griffen Act was enacted in 1959 to protect union members and their participation in union affairs. To protect this right, Landrum-Griffen allows the government, through the Department of Labor, to regulate union activities. The key provisions of the Landrum-Griffen Act are shown here.

New Proposed Legislation Employee Free Choice Act (EFCA) - Amend the Wagner Act (NLRA) Change the currently existing procedure to require the NLRB to certify the union as the bargaining representative without directing an election if a majority of employees signed cards It would take away employers' present ability to decide whether to use only the card-check process or to hold a secret-ballot election The proposed legislation would also establish stricter penalties for employers who violate provisions of the NLRA when workers seek to form a union, and set in place new mediation and arbitration procedures for disputes The Landrum-Griffen Act was enacted in 1959 to protect union members and their participation in union affairs. To protect this right, Landrum-Griffen allows the government, through the Department of Labor, to regulate union activities. The key provisions of the Landrum-Griffen Act are shown here.

Union Membership in the United States, 1930 - 2000 40 35 30 25 20 This graphic illustrates the percentage of the U.S. labor force that belonged to a union from 1930 to the present. 15 10 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000

Labor Relations Strategy A company’s labor relations strategy is its management’s overall plan for dealing with unions. As shown here, a company’s labor relations strategy sets a tone that can range from open conflict with the union to labor-management cooperation.

Labor Relations Policy – Union Acceptance Strategy Management chooses to view union and its employees as legitimate representatives and accepts collective bargaining as an appropriate mechanism for establishing workplace rules. Under a union acceptance strategy, management chooses to view the union as its employees’ legitimate representative and accepts collective bargaining as an appropriate mechanism for establishing workplace rules. Management tries to obtain the best possible labor contract with the union, and then governs employees according to the contract’s terms. An example of a union acceptance strategy is shown here and in the next illustration.

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 Union Substitution Strategy Union Suppression Strategy

3 Phases of Labor Relations Union organizing: Union solicitation Pre-election conduct Certification election Collective bargaining Contract administration

Union Organizing Union Solicitation: Union needs at least 30% of employees to sign authorization cards to show NLRB there is a significant interest in organizing Union web sites have organizing information Some companies have no-solicitation rules The acronym TIPS is a quick way to remember the following guidelines developed by labor lawyers and consultants to guide managers’ pre-election conduct – do not threaten, intimidate, promise or conduct surveillance. It is unlawful to threaten employees with theoretical dire consequences should the union win the election. Employers by law cannot intimidate or coerce employees to vote against the union. Management cannot promise employees benefits or reward if they vote against the union. It is unlawful to secretly or overtly spy on organizing meetings.

Pre-election conduct: Union Organizing Pre-election conduct: Management cannot Threaten Intimidate Promise Conduct surveillance The acronym TIPS is a quick way to remember the following guidelines developed by labor lawyers and consultants to guide managers’ pre-election conduct – do not threaten, intimidate, promise or conduct surveillance. It is unlawful to threaten employees with theoretical dire consequences should the union win the election. Employers by law cannot intimidate or coerce employees to vote against the union. Management cannot promise employees benefits or reward if they vote against the union. It is unlawful to secretly or overtly spy on organizing meetings.

Pre-election conduct: Union Organizing Pre-election conduct: Management can: Make speeches as to why union not needed Employ a consultant Send personal letters to employees Show videos and other material portraying union negatively Summarize and communicate all the good things company has done for employees The acronym TIPS is a quick way to remember the following guidelines developed by labor lawyers and consultants to guide managers’ pre-election conduct – do not threaten, intimidate, promise or conduct surveillance. It is unlawful to threaten employees with theoretical dire consequences should the union win the election. Employers by law cannot intimidate or coerce employees to vote against the union. Management cannot promise employees benefits or reward if they vote against the union. It is unlawful to secretly or overtly spy on organizing meetings.

Union Organizing Certification Election Supervised by NLRB If vote is against union, can’t hold another election for 12 months The acronym TIPS is a quick way to remember the following guidelines developed by labor lawyers and consultants to guide managers’ pre-election conduct – do not threaten, intimidate, promise or conduct surveillance. It is unlawful to threaten employees with theoretical dire consequences should the union win the election. Employers by law cannot intimidate or coerce employees to vote against the union. Management cannot promise employees benefits or reward if they vote against the union. It is unlawful to secretly or overtly spy on organizing meetings.

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 Once the NLRB certifies a union as the bargaining agent for a unit of employees, both management and the union have a duty to bargain with each other in “good faith.” Shown here are some characteristics of “good faith” bargaining.

Bargaining Power Distributive bargaining Integrative bargaining Attempt to understand the other negotiator’s real needs and objectives Create a free flow of information Emphasize the commonalities, and minimize the differences, between the parties Search for solutions that meet both parties’ goals and objectives Develop flexible responses to the other negotiators proposals Once the NLRB certifies a union as the bargaining agent for a unit of employees, both management and the union have a duty to bargain with each other in “good faith.” Shown here are some characteristics of “good faith” bargaining.

Mandatory Bargaining Topics Mandatory bargaining topics are wages, hours, and employment conditions. These are the topics that both union and management consider fundamental to the organization’s labor relations. Some examples of each of these mandatory topics are shown here.

Economic Strike Wildcat Strike Lockout Impasse in Bargaining Mandatory bargaining topics are wages, hours, and employment conditions. These are the topics that both union and management consider fundamental to the organization’s labor relations. Some examples of each of these mandatory topics are shown here.

Contract Administration Union Grievance Procedure Employee with a Grievance Immediate Supervisor Verbal Presentation Written Grievance Business Representative, Grievance Committee Department Manager Labor Relations Director Most union grievance procedures have three or four steps leading up to arbitration, the final step. This illustration outlines a four-step union grievance procedure. National Union Representative and Local Union Arbitration