Mgmt 583 Chapter 10: Non Wage Issues in Bargaining Fall 2008

Non Wage Components of the CBA Union security (level of compulsory membership) Check off clause Individual security/ seniority Layoff and rehiring Bumping privileges Hours and overtime Management rights No strike/no lockout Discipline/discharge Contract term/duration Contract administration Vacations (entitlements, eligibility, etc.) Working conditions and workplace safety EEO protections

Union Security - Compulsory Union Membership Exclusive Bargaining Rights Agency Shop Maintenance of Membership Shop Modified Union Shop Union Shop Preferential Union Shop Closed Shop Open Shop

Union Security  Open Shop - non union  Exclusive Bargaining Rights The union is the certified/recognized bargaining agent of the bargaining unit. Membership is strictly voluntary. Only union members must pay dues.

Union Security  Agency Shop The union is the certified/recognized bargaining agent of the bargaining unit. Membership is still strictly voluntary. Union members must pay dues; nonunion members of the BU pay equivalent of dues.

Union Security  Maintenance of Membership Shop The union is the certified/recognized bargaining agent of the bargaining unit. Membership is voluntary in a limited sense. Union members must pay dues; nonunion members of the BU pay equivalent of dues. However, once a member joins the union they must remain a member in good standing as a condition of employment

Union Security  Modified Union Shop The union is the certified/recognized bargaining agent of the bargaining unit. All new hires must join the union old nonunion employees may remain non union. Union members must pay dues; nonunion members of the BU pay equivalent of dues. However, once a member joins the union they must remain a member in good standing as a condition of employment.

Union Security  Union Shop The union is the certified/recognized bargaining agent of the bargaining unit. All employees must join the union. Union members must pay dues. Union membership is a condition of continued employment.  This is not Closed Shop (one must be a union member before applying for the job) which is illegal under the LMRA.

Union Security  Preferential Union Shop Applicable only to building & construction trade unions (§ 8 (f)). Allows temporary (7-day) assignment of nonunion workers to the local. Temporary members must pay dues. Temporary union membership is renewable.

Union Security  Within these provisions, union and management negotiate the time frame under which a new hire must bring HR proof of joining the union. Conventionally 30 to 60 days. Sometimes at the conclusion of the probationary period.  If the employee fails to do so, management must fire the employee or be found guilty of a ULP.

Individual Security/ Seniority  Two types: Benefit Seniority - benefit entitlements based on seniority (i.e., vacation length). Competitive Status Seniority – entitlement to bid on promotions, transfers, and avoid layoffs.  Often defines how seniority will be determined : Time in the job/position, Time in the facility, or Time with the company.

Individual Security/ Seniority  Superseniority – an artificial employment seniority system that considers factors over and above length of service. It is used as a means of retaining key employees who might otherwise be laid off. Usually the union negotiates superseniority for shop stewards and its Executive Council. Superseniority is assigned to the office, not to the individual. If unions can have it, so can management.

Competitive Status Seniority  The formula for layoffs is usually LIFO.  Recall/rehiring is usually based on seniority as well.  May contain bumping privileges. More senior employees may take the positions of less senior employees during layoffs or RIFs provided they are minimally qualified.

Checkoff Clause  A.k.a. Dues Checkoff. Employer agrees to payroll deduction of BU member’s union dues or equivalent. The advantage is to the union.  Without it, shop stewards must collect dues.  Members can be disciplined by the union for being late in paying dues.  The union is guaranteed a uniform and consistent cash flow.

Hours and Overtime  Often establishes work schedules and determines when the work week begins and ends.  Establishes entitlement and/or restrictions for overtime. Bumping privileges Right to refusal. When overtime occurs (anything in excess of eight hours in a 24 consecutive hour period, e.g.).

Management Prerogatives  The following rights should be expressly reserved in the the Management Rights clause of the CBA: The right to direct work The right to promulgate work rules The right to establish company policies (i.e., safety, attendance, pilferage, good order, etc.) The right to establish production levels The right to discipline employees The right to establish employee performance standards and conduct performance appraisal

Management Prerogatives  There should be a general management rights statement in the Management Rights clause: Those rights not expressly contracted away by a specific provision of the bargaining agreement are retained by management.

Management Rights  If there are foreseeable circumstances in which supervisory personnel may be needed to perform production work, include it in Management Rights.  Caveat: Unions often insert provisions in CBAs that prevent supervisors from performing any BU work at any time.

Management Rights  In the event that there is a conflict between a provision in the Management Rights Provision and another clause in the CBA, there is a potential grievance (and arbitration)

Other Clauses Conflicting with Management Rights  Other clauses in the CBA that may conflict with, hence diminish management rights: Restrictions on the assignment of personnel  Limitations on assignments outside a worker’s job category  Limitations on assignments outside a worker’s job description Restrictions on who can work overtime  Voluntary v. involuntary overtime  Bumping privileges  Limitations on total hours per overtime period

Other Clauses Conflicting with Management Rights Restrictions on promotion policies  Seniority considerations  Affirmative action  Challenges/appeals Restrictions on pay raises  Seniority considerations  Incentives, differentials Restrictions on hiring  Job posting

Other Clauses Conflicting with Management Rights Restrictions on discipline Restrictions on outsourcing  Subcontracting  Temporary employees  Part-time employees Restrictions work scheduling  Time-off  Hours of work

Management Rights  Why clearly delineated management rights are important: They reduce exposure to unfair labor practice challenges. They reduce exposure to meritorious grievances. They reduce exposure to arbitration.

Typical Management Rights Clause  The Company acknowledges that it has no natural rights over individual persons within the organization, but it reserves rights to maintain a company those physical assets, property, and rights that are real and lawfully enforceable.  The Company reserves the exclusive right and responsibility to manage the business and to direct the employees who may be subject to this Agreement.  Management reserves, among the other customary rights of management, the sole and exclusive discretion to hire qualified employees and to transfer, assign, deploy and direct their work.

Typical Management Rights Clause  The Company further reserves the right to evaluate the performance of employees to determine their qualification and fitness for continued duty or employment; the right to relieve them from duty; the right to suspend or discharge them for a lawful cause; and the right to layoff employees because of lack of work or for other lawful reasons.  This provision may only be limited by the company’s obligation to bargain in good faith about matters over which it is lawfully required to bargain

No Strike/No Lockout  For the duration of the contract both parties agree to resolve any disagreements arising from the contract according to the contraction administration provisions. Management cannot lockout the union. The union cannot strike (other than a ULP Strike, any strike would become a Wildcat Strike). This why unions cannot strike during negotiations until the contract expires.

Discipline and Discharge  Most CBAs state that employees may be discharged only for just cause.  Contains the provisions for due process guarantees.  May establish progressive discipline provisions.  Note that union employees enjoy far more procedural rights than nonunion counterparts.  May specify what actions are subject to discipline.

Discipline and Discharge  ULPs claims may arise when: Management does not consistently impose discipline. When procedural requirements are not meticulously met.

Reopener Clause  Provisions in the CBA specifying the conditions under which one or either party can reopen for renegotiation the agreement or designated parts of the agreement. Some CBAs contain mutual consent reopeners. May be triggered by certain events which compel the other party to renegotiate (particular level of the CPI, e.g.)

Zipper Clause  A zipper clause may constitute a waiver of the right to bargain over issues negotiated in or outside the terms of a contract until its expiration.  During the life of the contact, the issue may not be reopened.  "[t]he Parties agree that all negotiable items have been discussed during the negotiations leading to this Agreement, and, therefore, agree that negotiations will not be reopened on any items, whether contained herein or not, during the life of this Agreement, unless by mutual agreement of both Parties."

Contract Term/Duration  By convention most are three years. Usually state in specific dates (i.e., January 1, 2008to December 30, 2011).  If a no strike no lockout clause is in place, no economic strike or lockout can occur until after the CBA expires.

Contract Administration  Contains provisions for handling grievances (how disagreements over the contract’s interpretation will be resolved).  Establishes procedures for filing a grievance. Time frames Points of contact Requirements for formalization  Often establishes procedures for taking issues to rights arbitration.

Effect of Unions on Non Wage Outcomes  Hiring Unions, through the CBA, exert influence on how internal recruiting is conducted.  Promotions Unions use seniority to dilute the use of performance appraisal in making such decisions.  Retirement Earlier eligibility