1. Unions and Labor Management
Appendix IV

2. Introduction
This appendix is an expansion of material covered in the last section of Chapter 10
After reading it you should better understand how and why workers organize into labor unions, how unions and businesses relate to each other, and how the collective bargaining process works

3. Why Do Workers Unionize?
Labor Union
a group of individuals working together to achieve shared job-related goals, such as higher pay, shorter working hours, more job security, greater benefits, or better working conditions
Labor Relations
the process of dealing with employees who are represented by a union

4. Collective Bargaining
the process by which union leaders and managers negotiate common terms and conditions of employment for the workers represented by unions

5. The Emergence of the Major Unions
American Federation of Labor (AFL)
an association of craft unions formed in 1886 by Samuel Gompers and others; the AFL had no political or social agenda but simply sought to improve working conditions and pay for its members
Industrial Unionism
the organizing of employees by industry rather than by skill or occupation

6. Congress of Industrial Organizations (CIO)
an association of industrial unions formed in 1938 after being expelled from the American Federation of Labor (AFL)

7. Trends in Union Membership

8. Trends in Union Membership (cont.)

9. Contemporary Union Structure
Local Unions (locals)
organized at the level of a single company, plant, or small geographic region
Shop Steward
a regular employee who acts as a liaison between union members and supervisors
Business Agent or Business Representative
a full-time employee hired to act as a liaison between union members and supervisors if a local union is large

10. Organization of a Large National Union

11. The Major Labor Laws Norris-LaGuardia Act Yellow-Dog Contracts
act that imposed severe limitations on the ability of the courts to issue injunctions prohibiting certain union activities, including strikes
Yellow-Dog Contracts
requirements that workers state that they did not belong to and would not join a union

12. The Major Labor Laws (cont.)
National Labor Relations Act or Wagner Act
act that put labor unions on a more equal footing with management in terms of the rights of employees to organize and bargain
National Labor Relations Board (NLRB)
established by the Wagner Act to administer its provisions

13. The Major Labor Laws (cont.)
Fair Labor Standards Act
Addressed issues of minimum wages and maximum work hours
Closed Shop
a workplace in which only workers already belonging to a union may be hired by an employer
Right-To-Work Laws
such laws prohibit both union shops and agency shops, thus making it illegal to require union membership as a condition of employment

14. The Major Labor Laws (cont.)
Union Shop
requires employees to join a union within a specified period after being hired
Agency Shop
requires employees to pay union fees even if they choose not to join

15. Right-to-Work States

16. The Major Labor Laws
Landrum-Griffin Act or Labor- Management Reporting and Disclosure Act
amendment to the National Labor Relations Act that imposed regulations on internal union procedures

17. How Unions Are Organized
and Certified
Defining the bargaining unit
Interested organizers start by asking the NLRB to define the group of employees who will be represented by the union
Gaining authorization
Organizers must get 30 percent of the eligible workers within the bargaining unit to sign authorization cards requesting a certification election

18. How Unions Are Organized
and Certified (cont.)
Conducting an election
If the required number of signatures is obtained, the organizers petition the NLRB to conduct the election. The NLRB then holds a secret ballot election. If a simple majority of those voting approves the certification, the union becomes the official bargaining agent of eligible employees.
If a majority fails to approve certification, the process ends and an election cannot be called again for at least one year.

19. Decertification
The union must have served the unit as its official bargaining agent for at least one year
There must be no labor contract currently in effect

20. Collective Bargaining
The collective bargaining process begins when the union is recognized as the exclusive negotiator for its members
The bargaining cycle itself begins when union leaders meet with management representatives to agree on a contract
By law, both parties must sit down at the bargaining table and negotiate in good faith

21. Contract Issues Mandatory items Permissive items
matters over which both parties must negotiate if either wants to. This category includes wages, working hours, and benefits
Permissive items
may be negotiated if both parties agree. A union demand for veto power over the promotion of managerial personnel would be a permissive bargaining item

22. The Bargaining Zone

23. Compensation Cost-of-Living Adjustment (COLA) Wage Reopener Clauses
labor contract clause tying future raises to changes in consumer purchasing power
Wage Reopener Clauses
allow wage rates to be negotiated at preset times during the life of the contract

24. When Bargaining Fails Strike Economic strikes
occur when employees temporarily walk off the job and refuse to work
Economic strikes
strikes triggered by stalemates over mandatory bargaining items, including such noneconomic issues as working hours

25. Management Tactics Lockouts Strikebreakers
occur when employers deny employees access to the workplace
Strikebreakers
temporary or permanent replacements

26. Mediation and Arbitration
a neutral third party (the mediator) can advise, but cannot impose a settlement on the other parties
Voluntary Arbitration
a neutral third party (the arbitrator) dictates a settlement between the two sides, who have agreed to submit to outside judgment

27. Mediation and Arbitration (cont.)
Compulsory Arbitration
used to settle disputes between the government and public employees such as firefighters and police officers