Week 11: Labor Relations Agenda for Today Discuss the historical antecedents of current labor relations environment Discuss goals of unions Discuss reasons for the decline of unions Understand different labor-management strategies Discuss labor relations management process Debate: Pros and Cons of Unionization

Historical Overview of Labor Relations Little protection for labor rights before 1930s First federal labor law: Railway Labor Act (RLA) 1926. Gave right to organize and bargain collectively only to railroad employees. In 1936, extended to airline employees Norris-LaGuardia Act (1932): Extended right of workers to organize to other industries. Also restricted issuance of court injunections in labor disputes. “National Labor Code”: Far reaching impact of 3 major pieces of legislation.

“National Labor Code” Acts The Wagner Act of 1935 (or National Labor Relations Act) protected employees’ rights to form & join unions Created the National labor Relations Board (NLRB) Major function of NLRB is to prevent and remedy unlawful five unfair labor practices The Taft-Hartley Act of 1947: limits some of the unions power and protects management rights Identified six unfair union practices Introduced right-to-work law (WI does not have it) Made closed shops illegal; created Federal Mediation & Conciliation Service The Landrum-Griffin Act of 1959: established to protect union members & their participation in union affairs

Labor Relations: State of Unions Decline in private sector unions: Percentage of private-sector workforce unionized declined from 24% (1975) to less than 14% in 2002 (Bureau of Labor Statistics) Still over 70,000 local unions and 173 national unions: of these 110 belong to AFL-CIO AFL-CIO represents about 80% of all unionized employees Only 16% of Americans believe union leaders had a “high” or “very high” ethical standards. But only 17% thought business leaders were honest or ethical.

Private-Sector Decline Due to: Shift from Industrial to Service Economy Service workers more difficult to organize Hold pro-management views Spread out across organizations Foreign Competition and Technological Change NAFTA (Manufacturing moved to other countries) Layoffs and retirement especially in the last two years Narrowing of union/nonunion wage gap in construction industries Management interventions: Improved management practices & union acceptance strategy Preventative labor-relations practices (e.g., union avoidance strategies) Union-busting

Public Sector Unions Growth in Public-Sector Unions: Approximately 40% of workers unionized Comprise 45% of all union members These employees have less bargaining power: Government power is diffuse: no one person is in charge (e.g., pay increases approved by city council) Right to strike is limited (varies by state and region: e.g., teachers can’t strike in CO and WI; can in PA) Results in: Mandated arbitration and mediation Broader focus on quality of work life and safety issues (e.g., safety equipment, class size, academic freedom, job security) Members vote: well-organized public-sector union powerful figure in local and national politics

Union Goals Union Security: Union Shop Agency Shop All new employees must join (usually within 30 days of hire) Right-to-work states (about 21) prohibit union shops Agency Shop Employee not required to join shop, but must pay dues (which can be spend only on collective bargaining activities, not on political campaign/lobbying) Maintenance-of-Membership Shop Not required to join, but those who do join must remain until contract expires or designated “escape period” occurs Closed Shop: not permitted under the Taft-Hartley Act (construction industry an exception); illegal requirement that employee must be union member at time of hire (happens in practice in union hiring halls); Open Shop: employees free to decide on membership

Union Goals (contd.) Job Security Improved Economic Conditions Seniority system Subcontracting (ie., use laid-off workers rather than sub-contractors) Retraining rights, advance notice, outplacement Make-work activities Improved Economic Conditions Wages, benefits, pensions Improved Working Conditions Safety, shorter work weeks, less mandatory overtime, clean/healthy work environment Social Actions (lobbying)

Labor Relations Strategy Classified into two broad types: Union Acceptance Strategy or Union Avoidance Strategy Union Acceptance: Management believes labor unions are an ally and accepts collective bargaining as a foundation for workplace rules Union Avoidance: Management does not believe in labor unions and tries to prevent its employees from unionizing through: Union Suppression: Mgmt. uses hardball tactics to prevent union from organizing or to get rid of a union. Union Substitution: Mgmt. becomes so responsive to employees’ needs that it removes incentives for unionization.

Managing the Labor Relations Process Daily HR activities carried out by Management and its representatives Objectives & goals affect (1) Workers desire collective representation (2) Unions begin organizing process (3) Collective negotiations lead to a contract (4) Contract is administered May result in Objectives & goals affect Labor and its representatives Laws and Regulations

Labor Relations Debate! Pro-Labor Views: Pro-Management Views: