Labor Relations Overview & basic facts  Historical perspective  Some statistics Legal issues Unions and union structure The organizing process Collective bargaining Unions today

Labor Relations: The Historical Perspective (1) Early Phases ( )  Beginning of Industrial Revolution; local economies  Little pressure for unions, due to scarcity of labor  Unions generally of doubtful legality Labor-Management Conflict ( )  U.S. becoming industrialized; railroad growth creates regional and national economy  Massive immigration to U.S. resulted in abundant supply of labor  Union gain legitimacy, but much violent conflict

Labor Relations: The Historical Perspective (2) Union Growth ( )  Political and social climate more accepting of workers’ rights  Unions gain legal protection and membership grows (high in 1953)  Major federal labor legislation passes Union Decline (1960 to present)  Shift in economy from manufacturing to service and information jobs  Entry of women into paid workforce  Union membership and importance declines

Samuel Gompers and the AFL Samuel Gompers:  Joined cigar-makers union at age 13 (1863)  President of cigar-makers by 1874  Did not believe in organizing labor politically; focused on basics (wages, hours and working conditions) AFL founded in 1886 Source:

Department of Labor Idea had been around since just after the Civil War  Various state departments created  Federal Bureau of Labor created in 1884  Department of Commerce and Labor created in 1903 Sulzer Act signed (very reluctantly) by President William H. Taft on March 4, 1913 First Secretary of Labor was William B. Wilson (former officer of the United Mine Workers of America)

Child Labor In 1900, census data indicated 2 million children working in mills, mines, fields, factories, stores, and as street vendors; probably a vast underestimate Beginnings of a movement to outlaw child labor The first child labor bill, the Keating-Owen Act (1916) banned the interstate sale of products from any factory, shop, or cannery that employed children under the age of 14, from any mine that employed children under the age of 16, and from any facility that had children under the age of 16 work at night or for more than 8 hours during the day; ruled unconstitutional A second child labor bill was passed in 1918, taxing child labor; also found unconstitutional Movement for a Constitutional amendment No meaningful curtailment of child labor until Fair Labor Standards Act (1938) Source:

Sweated Homework “Mrs. Battaglia, Tessie (age - 12 years), Tony (age - 7 years), 170 Mulberry St. Rear house, 5th floor. Garment workers. Husband crippled by a fall, tends to basement. Mrs. Battaglia works in shop except Saturdays, when the children sew with her at home. Get 2 or 3 cents a pair finishing men's pants. Said they earn $1 to $1.50 on Saturday. Father disabled and can earn very little. New York, 01/25/1908” Source:

“Welch Mining Co., Welch, W. Va. Boy running "trip rope" at tipple. Overgrown, but looked 13 years old. Works 10 hours a day. Welch, W. Va., 09/1908” Coal Mining Source:

Frances Perkins Frances Perkins (right) along with Eleanor Roosevelt (left) and Mrs. Percy Pennypacker in New York City, January Source:

Flint Sit-Down Strike, 1937

Jimmy Hoffa ? James Hoffa and Family Present day Teamsters During WWII Sources: immy_hoffa/1.htmlhttp:// The Red Fox Restaurant, Bloomfield Township, Michigan (last known location of Hoffa)

Union Membership as a Percentage of the Total Workforce %

Union Membership in 2007: Who Belongs?

Union Membership in 2007: Where Employed? Government: Federal = 26.8% State = 30.4% Local = 41.8%

Major Labor Laws (1) Norris-LaGuardia Act (1932)  Outlaws “yellow-dog” contracts  Closely regulates right of federal courts to issue injunctions National Labor Relations Act / Wagner Act (1935)  Unions’ right to exist  Strikes legal  Union certification procedures  National Labor Relations Board established  Unfair labor practices banned Fair Labor Standards Act (1938)

Major Labor Laws (2) Taft-Hartley Act / amendments to NLRA (1947)  Forbids unfair labor practice by unions (secondary boycotts, closed shops)  Permits states to pass “right-to-work” laws  Provides for emergency dispute resolution if national safety threatened Landrum-Griffin Act (1959)  regulation of unions’ internal financial affairs TEAM Act (passed by Congress in 1996, vetoed by President Clinton)  Permits companies to form employee committees without violating NLRB ban on company unions’  Is this necessary?

Right to Work States Source: Note that this is a partisan source – the map is the only one I can find, though.

Employee Involvement Teams Electromation case (1992)  Found that some employee involvement teams violated NLRB provisions against company unions  These teams dealt with employer on employment issues  But, team members selected by employer How to avoid problems  Suggestion programs and work teams ok  Teams settling workplace grievances -- don’t attempt to control these  Don’t imply that team members are representing other employees

The Union Representation Process Certifying a union as the bargaining agent for a group of employees The steps  The organizing campaign  The election  Certification Carried out under NLRB supervisionNLRB

Why Do Employees Join (Or Not Join) Unions? Social Pressure Knows union supporters Type of people the union attracts Union Attitudes General Specific Job Satisfaction / Dissatisfaction Pay Supervision The work itself Other issues Union Instrumentality Fair treatment Better pay Better employee / management relations Employee Vote For union Against union

What Can Employers Do? Remember the high-performance work practices???  Eliminate or reduce symbols of status differences (i.e., executive dining rooms, reserved parking)  Promote employment security  Promote from within  Competitive pay and benefits  Management that listens  Management training Keep individual facilities small Locate in non-union settings (such as the South)

The Organizing Campaign Begins with the union recruiting potential members  “Salting”  Handbills  Meetings  Direct contacts Determine bargaining unit Authorization cards – do not commit an employee to join union, only that an election be held More than one union may participate in an election (i.e., FPA and ALPA at FedEx) Unfair Labor Practices

Unfair Labor Practices: Employers Forbidden: Any type of coercion or discrimination Refusal to bargain in good faith Individual promises or threats (such as promotion, termination) Group promises or threats (such as closing facility) Spying on union meetings Speaking to employees within 24 hours of the election Asking employees how they plan to vote Asking employees to speak to other employees Acceptable: Providing information about wages, hours, working conditions Pointing out the disadvantages of a union Forbidding union activities in work areas during work hours Enforcing policies and rules fairly and consistently

Unfair Labor Practices: Unions (I) Closed shop  Individual cannot be hired unless already a member of the union Forcing an employer to negotiate if another union already is certified at the facility Force employers to assign work to one group of employees “Hot Cargo” agreements  Union members do not handle non-union goods

Unfair Labor Practices: Unions (II) Secondary boycott  Union members refuse to handle goods from a third party, so that the third party will put pressure on primary employer  The “shop-in” – union members clog up a retail establishment handling a product from a company where there is a labor dispute Featherbedding  Requiring employer to pay for work that is not performed (often as a result of technological advances)

The Election (1) Requires 30% of employees to sign authorization cards  Employer has option to recognize at 50%  Union typically waits for a majority – 60% to 80% before filing petition Certification requires a majority of those voting by secret ballot Who is eligible to vote?  People employed on the date of the election  The bargaining unit

Bargaining Units “Community of interests” defined by NLRB  Employer / employee interests  Commonality of wages, hours, working conditions, training, skills  History of collective bargaining in the company  Transfer of employees among facilities  Geographical / physical proximity of workplaces  Employer’s administrative divisions  Degree of separation or distinctiveness of the work

Who is Not Included? Supervisors and managers Plant guards as part of the plant (potential for conflict of interest) Confidential employees, family members HR staff

Bargaining Units in Health Care Established by 1989 NLRB ruling to apply to all acute-care hospitals:  RNs  Physicians  All other professionals  Technical employees  Skilled maintenance  Business office clerical  Guards  All other non-professional

The Election (2) Held under NLRB supervision At workplace, during working hours (mail ballots allowed by NLRB if appropriate) Union certification requires simple majority (50% + 1) Decertification processes similar to certification

Union Structure - Overall

Union Structure - Local

Types of Unions Craft (traditionally, AFL)  Members are organized by craft or skill  Electricians, plumbers, etc.plumbers Industrial (traditionally, CIO)  Members organized by industry  Mine workers, rubber workers, automobileautomobile

Union Membership: Top Five (2003)

Collective Bargaining Types of bargaining Bargaining issues Management rights Strikes

Types of Bargaining Pattern bargaining  Agreement negotiated at one employer is adopted by others in same industry  Found in automobile industry Multiemployer bargaining  Multiple employers bargain with union  Typical of transportation industry

Bargaining Issues Mandatory issues  Wages  Benefits  Nature of jobs  Job security  Union security (union shop, dues checkoff)  Safety rules / medical exams  Vacations, time off, breaks Permitted issues  Retiree benefits  Product prices  Performance bonds  Union label  No-strike, no-lockout Illegal issues  Featherbedding  Hiring preferences  Closed shop

Typical Bargaining Issues Benefits Funeral pay Clothing allowance Jury duty pay Vacations Discipline Grievance Procedure Conditions of Employment Employment security Workload Union security Layoff Provisions Recall after layoffs Seniority rights during layoffs Recall procedures Pay Call-out pay Hiring rate Holiday pay Pay progression Shift differential Overtime Transfers Seniority Provisions

Management Rights “Employer retains all rights to manage, direct, and control its business in all particulars, except as such rights are expressly and specifically modified by the terms of this agreement or any subsequent agreement” Typical rights (just a sampling)  Schedule work shifts  Work standards  Discharge for just cause  Change or modify production techniques  Establish or revise pay grades

What if the Bargaining Doesn’t Succeed? Sides may reach impasse (unable to agree) Alternatively, union members may not ratify agreement Then what?  May work without a contract  Or may strike

Strikes Economic  Occurs during negotiations Unfair labor practices  Such as refusal to bargain or discharge of employee for labor activities Wildcat (illegal)  Not supported by union; these are violations of the labor agreement Sit-down (illegal) Sick-out Secondary  Work stoppages to support another union’s strike Boycotts Management responses  Replacement workers  The lockout

Days Lost Due to Work Stoppages