Chapter 13: Employee and Labor Relations

Objectives After reading this chapter, you should be able to: Explain why labor unions exist. Describe the main purpose and key points of the laws regulating labor relations. Discuss unfair labor practices. Understand the different types of unions and union shops. Explain the steps in the process of organizing a union. Describe the collective bargaining process. Explain the grievance process used in a union environment. Discuss issues in managing labor relations in the future.

History of Labor Union Movement in U.S. Skilled craftspeople first to unionize to keep out competition Strikes used to achieve union objectives By 1873, union membership in U.S. = 300,000 Membership dropped to 50,000 by 1878 due to Great Depression American Federation of Labor (AFL) formed in 1886 1933 unions became firmly entrenched in U.S. with prounion U.S. president and legislation making it easier to unionize By 2013, union membership reached record low of 11.3% of workforce

Reasons for Decline in Union Membership Globalization resulted in manufacturing, a heavily unionized sector, moving abroad Job growth in service sector and small businesses, sectors that typically don’t unionize Local unions reluctant to spend on unionizing efforts Workers more capable of negotiating workplace conditions for self

Government Regulation of Labor Unions Railway Labor Act of 1926 Norris-LaGuardia Act of 1932 Wagner Act (National Labor Relations Act) of 1935 Taft-Hartley Act of 1947 Landrum-Griffin Act of 1959

Norris-LaGuardia Act of 1932 Made it easier for employees to engage in union-organizing activities Outlined process for hearings Granted collective bargaining rights

Wagner Act (National Labor Relations Act) Most important piece of labor relations legislation Passed to: Protect rights of employees and employers Encourage parties to engage in collective bargaining Control activities so economy wouldn’t be adversely affected Established National Labor Relations Board (NLRB)

Employee Rights To form, or attempt to form, a union in the workplace To join a union, even if it’s not recognized by employer To assist in union-organizing efforts To engage in group activities (collective bargaining) such as attempting to modify wages or working conditions To refuse to do any or all of above unless clause requiring employees to join union exists

Protected Concerted Activity When two or more non-union employees act together to try to improve working conditions, or when a single employee approaches management after conferring with other employees on their behalf, or is acting on behalf of other employees, their actions are covered by NLRA

Unfair Labor Practices (ULP) Interfering with, restraining, or coercing employees in exercise of rights Dominating or interfering with formation or administration of any labor organization, or contributing financial or other support to it Discriminating against employees in terms of hiring, tenure, or other terms or conditions of employment, so as to encourage or discourage them from becoming members in a labor organization Discharging or otherwise discriminating against employees because they file charges or give testimony under the Act Refusing to bargain collectively with duly chosen representatives of employees

Taft-Hartley Act of 1947 To promote full flow of commerce To prescribe the legitimate rights of employees and employers in their relations affecting commerce To provide orderly and peaceful procedures for preventing employees and employers from interfering with legitimate rights of other party To protect rights of individual employees in their relations with labor organizations To protect rights of public in connection with labor disputes affecting commerce

Union Membership Right-to-work laws prevent workers from: Being forced to join a union as condition of employment Be prevented from joining a union as a condition of employment Be forced to pay dues to a labor union Be fired for not paying such dues

Types of Union Shops Closed shop Union shop Agency shop

Landrum-Griffin Act of 1959 Part of National Labor Relations Code Protects union members from being abused by unions Outlines responsibilities of union officers Provides a bill of rights for union members

Types of Unions Craft unions Industrial unions International unions

Union Organizing Process Bargaining unit Union authorization card Excelsior list Card checks Neutrality agreements

Collective Bargaining Good faith bargaining Mandatory bargaining topics Permissive topics Bad faith bargaining Negotiating the agreement Prepare Know the interests of other party

Bargaining Strategies Distributive bargaining Integrative bargaining Interest-based bargaining (IBB)

Consequences of Not Reaching Agreement Impasse Conciliation Mediation Arbitration

Other Issues National Labor Relations Board Decertification Corporate campaigns Public-sector labor relations

Trends in Labor Relations Changes in union activities Social media New forms of employee organizations Global trends