R OBERT L. M ATHIS J OHN H. J ACKSON PowerPoint Presentation by Charlie Cook The University of West Alabama Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. Union/Management Relations Chapter 17 SECTION 5 Employee Relations

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–2 Learning Objectives After you have read this chapter, you should be able to:  Describe what a union is and explain why employees join unions.  Identify several reasons for the decline in union membership.  Explain the acts that compose the National Labor Code.  Discuss the stages of the unionization process.  Describe the typical collective bargaining process.  Define grievance and explain why a grievance procedure is important for employers.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–3 Nature of Unions Union  A formal association of workers that promotes the interests of its members through collective action. Why Employees Unionize  They are dissatisfied with how they are treated by their employers.  They believe that unions can improve their work situations.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–4 Factors Leading to Employee Unionization Figure 17–1

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–5 Typical Division of HR Responsibilities: Labor Relations Figure 17–2

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–6 Global Labor Union Issues Union membership is falling in advanced countries. High unemployment is creating pressure for change. Child labor is an issue in some countries. Co-determination  A practice whereby union or worker representatives are given positions on a company’s board of directors.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–7 Union Membership as a Percentage of the Workforce for Selected Countries Figure 17–3

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–8 Unions in the U.S. Union Movement Emphases:  Focused on “bread-and-butter” economic issues— wages, benefits, job security, and working conditions.  Organized by kind of job and employer.  Seek multi-year collective agreements on economic issues as “contracts.”  Maintain competitive relations with management.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–9 Union Structure Craft Union  A union whose members do one type of work, often using specialized skills and training. Industrial Union  A union that includes many persons working in the same industry or company regardless of jobs held. Federation  A group of autonomous national and international unions.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–10 Union Structure (cont’d) Local Union  A union centered around either a particular employer or a particular geographic location. Business Agent  A full-time union official who operates the union office and assists union members. Union Stewart  An employee elected to serve as the first-line representative of unionized employees.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–11 Union Membership as a Percentage of the U.S. Workforce Figure 17–4 Source: U.S. Department of Labor, Bureau of Labor Statistics

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–12 Union Membership by Industry Figure 17–5 Source: U.S. Department of Labor, Bureau of Labor Statistics

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–13 Reasons for Union Decline in the U.S. Industrial Changes Industrial Changes Geographic Changes Workforce Changes Declining Union Membership

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–14 Union Targets for Membership Growth Professional Workers Contingent and Part-Time Workers Low-Skill Workers Union Organizing

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–15 The History of American Unions 1794Shoemakers’ strike 1806Shoemakers’ strike (“criminal conspiracy”) 1886American Federation of Labor (AFL) 1938Congress of Industrial Organizations CIO 1926Railway Labor Act 1935National Labor Relations Act (Wagner Act) 1932Norris-LaGuardia Act 1947Taft-Hartley Act 1957AFL-CIO merger 1959Landrum-Griffin Act 1978Civil Service Reform Act

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–16 National Labor Code Figure 17–6

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–17 Right-to-Work States Figure 17–7

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–18 Typical Unionization Process Figure 17–8

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–19 Legal Do’s and Don’ts for Managers During the Unionization Figure 17–9

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–20 Unfair Labor Practices: Employer Interfering with the organizing and collective bargaining rights of employees. Dominating or interfering with any labor organization. Encouraging or discouraging membership in a particular union. Discharging persons for organizing activities or union membership. Refusing to bargain collectively.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–21 Labor Relations: Key Terms Right-to-Work Laws  State laws that prohibit contracts requiring employees to join unions as a condition of obtaining or continuing employment. Closed Shop (outlawed)  A firm that requires individuals to join a union before they can be hired. Union Shop  A clause in a collective bargaining agreement that requires new employees to join the union, usually 30 to 60 days after being hired, or be fired. Agency Shop  Requires employees who do not join the union to pay fees for the union’s representation services. Maintenance-of-membership  Requiring workers to remain members of the union for the period of the labor contract.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–22 Unionization: Key Terms Salting  The practice in which unions hire and pay people to apply for jobs at certain companies. Union Authorization Card  A card signed by an employee to designate a union as his or her collective bargaining agent. Bargaining Unit  Employees eligible to select a single union to represent and bargain collectively for them. Certification  The NLRB’s grant of the union’s legal status as the employees’ representative. Decertification  The process whereby a union is removed as the representative of a group of employees.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–23 Bargaining Units “Community of Interest”  Wages, hours, and working conditions  Traditional industry groupings for bargaining purposes  Physical location and amount of interaction and working relationships among employee groups  Supervision by similar levels of management Supervisors and Bargaining Units  Supervisors are excluded from bargaining units.  Defined as any individual with the authority to hire, transfer, discharge, discipline, and who uses independent judgment with employees.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–24 Collective Bargaining Issues Collective Bargaining  The process whereby representatives of management and workers negotiate a labor agreement covering wages, hours, and other terms and conditions of employment. Management Rights  Those rights reserved to the employer to manage, direct, and control the workplace. Union Security Provisions  Contract provisions that aid the union in obtaining and retaining members. Dues Checkoff Provision  A contract provision for the automatic deduction of union dues from the paychecks of union members.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–25 Continuum of Collective Bargaining Relations Figure 17–10

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–26 Mandatory Bargaining Issues Issues identified specifically by labor laws or court decisions as subject to bargaining. Discharge of employees Grievances Work schedules Union security and dues checkoff Retirement and pension coverage Vacations Christmas bonuses Rest- and lunch-break rules Safety Rules Profit-sharing plans Required physical exam

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–27 Classification of Bargaining Issues Permissive Issues  Collective bargaining issues that are not mandatory but relate to certain jobs.  Benefits for retired employees  Product prices (e.g., employee discounts) for employees  Performance bonds Illegal Issues  Collective bargaining issues that would require either party to take an illegal action (e.g., discriminate in hiring).

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–28 The Bargaining Process Preparation and Initial Demands Continuing Negotiations in Good Faith Settlement and Contract Agreement Ratification Strikes and Lockouts Bargaining Impasse Conciliation Mediation Arbitration Bargaining Impasse Conciliation Mediation Arbitration

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–29 Bargaining Impasse Conciliation  A process by which a third party attempts to keep union and management negotiators talking so that they can reach a voluntary settlement. Mediation  A process by which a third party helps the negotiators reach a settlement. Arbitration  A process that uses a neutral third party to make a decision.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–30 Typical Items in a Labor Agreement Figure 17–11

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–31 Strikes and Lockouts Strike  A work stoppage in which union members refuse to work in order to put pressure on an employer. Lockout  Shutdown of company operations undertaken by management to prevent union members from working. Striker Replacements

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–32 Types of Strikes Economic Strikes  Strikes over economic issues (e.g., wages) Unfair labor practice strikes  Strikes over illegal employer actions (e.g., refusal to bargain) Wildcat strikes  Strikes not approved by the union Jurisdictional strikes  Strikes in dispute over the ownership of work Sympathy strikes  Expressions of support for other unions

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–33 Union-Management Cooperation Issues Employee Ownership (ESOPs) (ESOPs) Cooperation and Joint Efforts Cooperation and Joint Efforts Employee Involvement (Teams) Union- Management Cooperation

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–34 Grievance Management Complaint  Indication of employee dissatisfaction Grievance  A complaint formally stated in writing Grievance Procedures  Formal channels used to resolve grievances.  Union representation (Weingarten) rights Grievance Arbitration  Means by which a third party settles disputes arising from different interpretations of a labor contract.

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–35 Typical Division of HR Responsibilities: Grievance Management Figure 17–12

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.17–36 Steps in a Typical Grievance Procedure Figure 17–13