Labor Relations and Collective Bargaining 15 Labor Relations and Collective Bargaining The main purpose of this chapter is to help youdeal effectively with unions and grievances.After briefly discussing the history of theAmerican labor movement, we describe thebasic labor law, including unfair laborpractices. We explain labor negotiations,including the union actions you can expectduring the union campaign and election.And we explain what you can expect duringthe actual bargaining sessions, and how tohandle grievances. Union membership has declined in the past few decades. However, unions are trying to organize women and minorities, temporary and contingent workers, and those in jobs not traditionally unionized. With increasing aggressiveness, unions are targeting multinational companies to unionize workers around the world. Copyright © 2013 Pearson Education

Learning Objectives Give a brief history of the American labor movement. Discuss the main features of at least three major pieces of labor legislation. Present examples of what to expect during the union drive and election. At the conclusion of this chapter you will be able to: Give a brief history of the American labor movement. Discuss the main features of at least three major pieces of labor legislation. Present examples of what to expect during the union drive and election. Copyright © 2013 Pearson Education

Learning Objectives Describe five ways to lose an NLRB election. Illustrate with examples bargaining that is not in good faith. Develop a grievance procedure. You also will be able to: Describe five ways to lose an NLRB election. Illustrate with examples bargaining that is not in good faith. Develop a grievance procedure. Copyright © 2013 Pearson Education

A Brief History of theAmerican Labor Movement Unions have changed dramatically since their creation. Almost 12% of the people in this country are unionized. Unions, in many cases, are perceived in a negative light, but this is a poor assumption to make. Most unions are in the public sector as compared to the private sector. Copyright © 2013 Pearson Education

The Labor Movement Why do workers organize? What do unions want? The bottom line What do unions want? Union security Improved wages, hours, and benefits The AFL-CIO and the SEIU Why do workers organize? The urge to unionize often seems to boil down to the belief on the part of workers that it is only through unity that they can get their fair share of the pie. It is sometimes the result of workers trying to protect themselves from management’s whims. The bottom line is that unions have two sets of aims − one for union security and one for improved wages, hours, working conditions, and benefits for their members. The five types of union security are closed shop, union shop, agency shop, preferential shop, and maintenance of membership arrangement. The typical labor agreement also gives the union a role in other HR activities, including recruiting, selecting, compensating, promoting, training, and discharging employees. The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) is a voluntary federation of about 100 national and international labor unions in the United States. The three layers of structure in the AFL-CIO are the local union (a single chapter in a national union), the national union, and the national federation. Changes have occurred recently. Four big unions have withdrawn from the AFL-CIO and have established the Change to Win Coalition. The Service Employees International Union (SEIU) is one of coalition member.  They  are the fastest growing federation with more than 2 million members.   Copyright © 2013 Pearson Education

Review Why do workers organize? What do unions want? The AFL-CIO and the SEIU So far, we have discussed why workers organize and what they want. When we consider what was happening in the industrial revolution and the creation of factories, it becomes obvious. Workers came from farms to the cities and had no voice in what happened to them. Coming together as a group, however, made a difference. They wanted fairness and a chance to be heard. They got it. The American Federation of Labor and the Congress of Industrial Unions (AFL-CIO) joined forces to further promote the opportunities for labor to share the wealth with the owners and stockholders of the companies. Copyright © 2013 Pearson Education

The Main Features of at Least Three Major Pieces of Labor Legislation There were no special labor laws until about 1930, so employers were virtually unrestrained in their behavior toward unions. Since the Great Depression, in response to changing public attitudes, values, and economic conditions, labor law has gone through three clear changes. In the early days, labor law was positioned to include the strong encouragement of unions. The second stage moved to modified encouragement coupled with regulation. Finally, law has moved to detailed regulation of internal union affairs. Copyright © 2013 Pearson Education

Unions and the Law The Norris-LaGuardia (1932) and National Labor Relations (or Wagner) Acts (1935) Unfair employer labor practices From 1935 to 1947 During the period of strong encouragement of labor unions by laws, The Norris-LaGuardia Act guaranteed the right to bargain collectively free from interference, restraint, or coercion. However, it did little to restrain employers from fighting labor organizations. The Wagner Act prevented employers from interfering with employees who self-organized nor could they interfere with the formation or administration of labor unions. Employers could not discriminate against employees for exercising their rights associated with union activities. They cannot discharge or discriminate against employees who filed unfair practice charges. Finally, employers cannot refuse to bargain collectively with employee representatives. Union membership increased quickly after passage of the Wagner Act in 1935, but the tide had begun to turn by the mid-1940s. Copyright © 2013 Pearson Education

Unions and the Law The Taft-Hartley Act (1947) Unfair union labor practices Rights of employees Rights of employers National emergency strikes The Landrum-Griffin Act (1959) The second period of labor law, is referred to as the period of modified encouragement. During this time, The Taft-Hartley (or Labor Management Relations) Act reflected the public’sless enthusiastic attitude toward unions. It amended the National Labor Relations (Wagner) Act by limiting unions in four ways: Prohibiting unfair union laborpractices Enumerating the rights of employees as union members Enumerating the rights of employers Allowing the President of the United States to bartemporarily national emergency strikes Under the act, unions cannot restrain or coerce employees from exercising their guaranteed bargaining rights. Unions cannot cause an employer to discriminate in any way against an employee nor can the union refuse to bargain in good faith. Finally,unions cannot engage in featherbedding The Landrum-Griffin Act (1959) (officially, the Labor Management Reporting and Disclosure Act), is an amendment to the Wagner Act. It is aimed at protecting union members from possible wrongdoing on the part of their unions. Copyright © 2013 Pearson Education

Review The Norris-LaGuardia Act National Labor Relations Act The Taft-Hartley Act Unfair union labor practices The Landrum-Griffin Act The first national labor law acts, Norris-LaGuardia and the Wagner (National Labor Relations Act) were passed during the period of strong encouragement for labor union laws. These two acts defined the relationships between labor and management and defined specific features of how the two groups were to interact. During the period of modified encouragement, labor unions had gained substantial power with respect to both employees and employers. The Taft-Hartley (or Labor Management Relations) Act of 1947 reflected the public’s less enthusiastic attitude toward unions while further defining relationships between employees, their unions and employers. In the 1950s, Senate investigationsrevealed unsavory practices on the part of some unions. The result of the investigations was theLandrum-Griffin Act (officially, the Labor Management Reporting and Disclosure Act)of 1959. An overriding aim of this act was to protect union members from possiblewrongdoing on the part of their unions. Like Taft-Hartley, it also amended theNational Labor Relations (Wagner) Act. Copyright © 2013 Pearson Education

What to Expect During the Union Drive and Election It is through the union drive and election that a union tries to be recognized to represent employees. Supervisors need to understand this process, which has five basic steps. Copyright © 2013 Pearson Education

The Union Drive and Election Initial contact Labor relations consultants Union salting Obtaining authorization cards Hold a hearing The campaign The election In the initial contact, the union determines the employees’ interest inorganizing, and establishes an organizing committee. Both management and unions typicallyuse “labor relations consultants.” The consultants may be law firms, researchers,psychologists, labor relations specialists, or public relations firms. Unions are not without creative ways to win elections. TheNational Labor Relations Board defines union salting as “placing of union members onnonunion job sites for the purpose of organizing.” For the union to hold an election, it must show thata sizable number of employees are interested in organizing. The nextstep is to try to get employees to sign authorization cards. These cardsusually authorize the union to seek arepresentation election and state that the employee has applied to join the union. If theemployer chooses not to contest union recognition, the parties needno hearing, and a special “consent election” is held. If an employer does wish to contest the union’s right,it can insist on a hearing to determine those issues. TheNational Labor Relations Board then gets involved. During the campaign, union and employer appeal toemployees for their votes. The union will emphasize it will prevent unfairness,set up grievance and seniority systems, and improve wages. Managementwill emphasize the financial cost of union dues, that the union is an“outsider” and if the union wins, a strike may follow. It can even attack theunion on ethical and moral grounds. The election occurs within 30 to 60 days after the NLRB issues its Decision and Direction of Election. The union becomes the employees’ representative if it gets a majority of the votes cast, not a majority of the total workers inthe bargaining unit. Copyright © 2013 Pearson Education

Review – The Union Drive and Election There’s a basic five – step process involved in union drives and possible elections. The first step is to determine the interest of the employees of a target company in having an election. Distributing and retrieving authorization cards indicates interest level. Holding a hearing is the next step is to hold a hearing wherein the National Labor Relations Board gets involved. Finally, an election is held in which a majority of the votes cast determines if a union will represent employees. Copyright © 2013 Pearson Education

Five Ways to Lose an NLRB Election Over the years, unions typically won about 55% of elections held each year.Accordingto expert Matthew Goodfellow, there is no sure way employers can win elections.However, there are several sure ways to lose one. Let’s discuss these next. Copyright © 2013 Pearson Education

How to Lose an NLRB Election Asleep at the switch Appointing a committee Concentrating on money and benefits Delegating too much to divisions In losing an election, executives were caught unaware. In these companies, turnoverand absenteeism had increased, productivity was erratic, and safety was poor. Grievanceprocedures were rare. Of the losing companies, 36% formed a committee to manage the campaign. There are three problems in doing so: Committees are notoriously slow in taking action Most committee members are NLRB neophytes A committee’s decision is usually a compromise decision Copyright © 2013 Pearson Education

How to Lose an NLRB Election What to expect the union to do to win the election The supervisor’s role Rules regarding literature and solicitation Decertification elections: ousting the union The best way forunions to win is to pursue a “rank and file strategy.” It includes union tactics such as thefollowing: “Reliance on a slow, underground, person-to-person campaign using housecalls, small group meetings, and building active rank-and-file participation Pressure tactics Focus on respect, dignity, and fairness Supervisors are the first line of defense when it comes to the unionizing effort. Supervisors need some special training because they can discover the early signs of union activity or they can inadvertently take actions that hurt their employers’ union-related efforts. In terms of the rules regarding literature and solicitation, employers can address the following: Bar non-employees from soliciting or being inside the building Employees soliciting while on paid-duty time Bar non-employees from exterior locations if there is a valid business reason Bar anyone from inside or outside locations for reasons of production, safety, or discipline The same law that grants employees the right to unionize also gives them a way to legally terminate their union’s right to represent them, which is known as decertification. Copyright © 2013 Pearson Education

Review Asleep at the switch Committees Focus Over-delegating The union’s actions Supervisor Rules Decertification While there is no one way to win an NLRB election, there are several things you can do to lose one. These include being unaware and asleep at the switch, appointing slow, inexperienced committee, or focusing only on pay and benefits. Management can also put too much weight on supervisors. Unions and management have many tactics they can use to enhance their potential to win an election such as focusing on respect, dignity and fairness. Supervisors are always the first line of defense when it comes to know what’s happening and staying in touch with the rank-and-file. There are rules which employers can use to help them control distribution of literature and actual situation. For example, employers can forbid interior building access to non-employees. Finally, the same law that grants employees the right to unionize also gives them a way to terminate legally their union’s right to represent them. The process for decertification is much the same as the certification process. Copyright © 2013 Pearson Education

Bargaining that is not in Good Faith Let’s discuss what collective bargaining is all about and the nature of good-faith bargaining. Copyright © 2013 Pearson Education

The Collective Bargaining Process What is collective bargaining? What is good faith? The negotiating team Bargaining items Bargaining hints To bargain collectively is a mutual obligation to meetat reasonable times and confer in good faith with respect to wages, hours, terms and conditions of employment, the negotiation of an agreement, and other related matters.Good faith bargaining means that both parties communicate and negotiate, that they match proposalswith counterproposals, and that both make every reasonable effort to arrive at anagreement. A violation of the requirement for good faith bargaining may include the following: surface bargaining, inadequate concessions, and inadequate proposals and demands. Both union and management send a negotiating team to the bargaining table. It is vital that the team understand the impact, particularly the financial impact, of the things they either propose or accept in negotiations. Labor law sets out categories of items that are subject to bargaining: mandatory, voluntary, and illegal items. To bargain effectively and in good faith, here are a few hints. Set clear objectives Understand on what grounds the objectives are established Do not hurry Find out why the other party says and does what it says and does Be a good listener Copyright © 2013 Pearson Education

The Collective Bargaining Process Impasses, mediation, and strikes Third-party involvement Sources of third-party assistance Strikes Strike guidelines for employers Other “weapons” The contract agreement In collective bargaining, an impasse occurs when the parties are not able to move furthertoward settlement. An impasse usually occurs because one party is demanding morethan the other will offer. Three types of third-party interventions are used to overcome an impasse: mediation, fact-finding, and arbitration. Sources of third-party assistance come from various public and professional agencies. Strikes are a withdrawal of labor. The types of strikes are economic, unfair labor practice, wildcat, and sympathy. An economic strike results from a failure to agree on the terms of a contract. An unfair labor practice strikes to protest illegal conduct by the employer. A wildcat strike is an unauthorized strike occurring during the term of a contract.A sympathy strike occurs when one union strikes in support of the strikeof another union. Strike guidelines can help employers manage the overall process. Guidelines include securing the facility, establish alternative methods of obtaining supplies, record all facts and many more. Other “weapons” include a waging a corporate campaign and a lockout. A corporate campaign is an organized effort by the union that exerts pressure on the corporation. A lockout is a refusal by the employer to provide opportunities to work. The contract agreement includes eleven elements such asmanagement rights, union security and automatic payroll dues deduction, grievance procedures, and arbitration. Copyright © 2013 Pearson Education

Review Definition Good faith Team Items and hints Impasses Contract For this learning objective, we have discussed the definition of collective bargaining and what it means to bargain in good faith. Some of the issues in selecting a negotiating team and the bargaining items and hints were covered as well. We also found that involving third-parties, and what the type of strikes are and guidelines for managing strikes, can do to help employers resolve issues. Impasses usually result from one party demanding more than the other is capable of offering. Finally, the contract agreement is the culmination of the process covering all elements of labor management relations over the length of the collective bargaining agreement. Copyright © 2013 Pearson Education

Developing a Grievance Procedure Hammering out a labor agreement is not the last step in collective bargaining. No laborcontract can cover all contingencies and answer all questions. The grievance procedure provides an orderly system whereby both employer andunion determine whether some action violated the contract. Copyright © 2013 Pearson Education

Dealing with Disputes and Grievances Sources of grievances The grievance procedure Guidelines for handling grievances Employees may use just about any factor involving wages, hours, or conditions of employment as the basis of a grievance.The grievance procedure is specified in most collective bargaining contracts. It specifies the various steps in the procedure, time limits, and specificrules.    Examples of guidelines for handling grievances include investigating and handling each and every one of the grievances filed, talk with the employee and require the union to identify specific contractual provisions allegedly violated. Don’t discuss the case with the union steward alone – the grievant should be there. Don’t make arrangements with individual employees. Don’t hold back the remedy if the company is wrong and don’t admit the binding effect of a past practice. Copyright © 2013 Pearson Education

The Union Movement Today and Tomorrow Why union membership is down An upswing for unions? Card check High-performance work systems, employee participation, and unions The 1980s and 1990s were hard times for unions. About 35% of the non-farm U.S. workforce belonged to unions by the 1960s. Today, that figure had dropped to about 12%. Global competition and new technologies have forced employers to cut costs and reduce inefficiencies, which has squeezed unions. A slight majority of union workers are now white-collar, and nearly 40% of college faculties are unionized. The union election win rate has increased slightly, and the decline seems to have leveled off. Unions are becoming more aggressive, pressuring employers through class action lawsuits, and pushing Congress to pass legislation which would support a “card check” system. Instead of secret ballot elections, the union would win recognition when a majority of workers signed cards saying they want a union. Employee participation programs are now subject to serious legal challenge under the NLRA as unfair labor practices because they may be viewed as sham unions. Participation programs can be facilitated by taking the following steps: involve employees whenever possible, continually emphasize that committees exist for the exclusive purpose of addressing issues such as quality and productivity. Many other techniques can contribute to a successful employee participation program. Copyright © 2013 Pearson Education

Review Grievances Union membership Card checks Work systems, participation, and unions Grievances can arise from many sources but usually from issues related to the collective bargaining agreement. Fairness and good, systematic plans based on experience can make the difference in successfully handling a grievance. Card checks are one way unions are trying to eliminate secret balloting. Using work systems has advantages to the employer but may be seen as trying an “end run” around the collective bargaining agreement or getting more work out of workers without a concomitant increase in wages or benefits. Finally, participation in the work processes helps encourage commitment and improved communications between union workers and management. Copyright © 2013 Pearson Education

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