1 CONTRACT ADMINISTRATION Traditional collective bargaining during the term of the collective agreement Normally carried out through the grievance procedure –Substitute for right to strike Means by which the collective agreement is enforced on day-to-day basis Traditional Roles of Parties –Management acts –Union reacts through the grievance procedure

2 Administration of the Grievance Procedure In almost all cases, it is a multistep procedure involving successfully higher levels of union and management –decision-making authority –increasing detachment and objectivity

3 Steps in a Typical Grievance Procedure Employer -Reps –1 - F/L Supervisor –2 - Plant/Site Labor Relations Director –3 - Corp. Labor Relations/Reg. LR –4 - Arbitration Union Reps –1 - Steward/ Committeeperson –2 - Local President/ Chief Steward/ Chair of Barg Committee (highest plant level) –3 - Int. Rep./Local Pres./Bus. Agent –4 - Arbitration

4 How is a Grievance Filed? A grievance is normally filed by initiating the grievance procedure –Starts the process at Step 1 –Union legally obligated to file a grievance if employee insists Duty of Fair Representation Legal obligation to represent the employee fairly and in a non-arbitrary and non-capricious manner

Why Are Grievances Filed? Relationship Determinants –Nature of the relationship – adversarial or cooperative? Individual Determinants –less satisfied with their jobs – poorer attitudes toward supervisors – greater feelings of pay inequity –stronger beliefs that workers should participate in decision-making – were less satisfied and more active in unions, less educated –more likely to be African-American Organizational Determinants –Cost of leaving high (high wages and high unemployment –Perceived strictness of management/supervision Union Determinants –Union policies (such as writing all grievances) –Union politics 5

What is a Contractual/Legal Grievance? Defined by the collective agreement –any dispute over the interpretation of the agreement –“express, written terms of the agreement” –“any difference of opinion” –“(a)ny difference of opinion, controversy, or dispute... concerning conditions of employment, or concerning the interpretation or application of this agreement” Typically a grievance will cite the contract provision that is alleged to be violated 6

Processing of Grievance As cases go through the steps of the procedure, formality increases Union –Controls the grievance procedure –Grievant (Grievor) has no right to have case taken beyond Step 1 7

8 Grievance Procedure – Prior to Arbitration Most grievances are resolved prior to final and binding arbitration Law generally requires the parties to share information with each other during grievance process –Somewhat analogous to the bargaining process –Purpose is to enhance chances for agreement Grievance procedure a blend of the formal and the informal

9 Resolutions Grievance Withdrawn –Outright but without prejudice (to future cases) –With an agreement on the matter for the future Grievance Granted –Outright but without prejudice (to future cases) –With an agreement on the matter for the future Compromise –Discharge Employee monetary settlement Last chance agreement Almost all grievances are resolved prior to arbitration

Should Union Go Arbitration? Yes Merits of the grievance –Union – contract violated –Employer- no violation Test case, need certainty in a matter Legal obligation to fairly represent employees Union policy No Merits of the grievance –Union – no violation –Employer – violated contract Not a strong enough case to use as a test case Cost is high relative to benefit (non-discharge case) 10

Concepts of the Grievance Procedure Legalistic Concept –As a series of steps that must be followed prior to going to arbitration Bargaining Concept –As a vehicle for meeting and solving problems that arise during the term of the collective agreement By resolution By creating agenda items for bargaining 11

Examples of Bargaining Concept City in Michigan Housing Case Soft-Drink Company Pay Case 12

13 Arbitrator Selection Systems Ad Hoc – Administering Agencies –Federal Mediation and Conciliation Service –State Agency (Michigan Employment Relations Commission) –American Arbitration Association (private) Permanent Panel –Rotate –Earliest hearing date Single Umpire

14 Issues Associated with Selection Systems Ad Hoc –Arbitrator clean slate, absence of preconceptions –Not familiar with industry or parties Permanent Panel –Familiar with parties –May have preconceptions of parties Single Umpire –Similar to permanent panel – Certainty