2. chapter 15
Labor Relations and Collective Bargaining

3. Labor Union
Organization of employees that uses collective action to advance its members’ interests in regard to wages and working conditions
Industrial union
Craft union

4. Labor Relations
The continuous relationship between a defined group of employees and management
The relationship includes:
The negotiation of a written contract concerning pay, hours, and other terms and conditions of employment
The interpretation and administration of this contract over its period of coverage

5. Legal Overview Commonwealth v. Hunt (1842) Arbitration Act of 1888
Railway Labor Act of 1926
Norris-LaGuardia Act of 1932
National Labor Relations Act (1935 Wagner Act)
Labor Management Relations Act (1947 Taft-Hartley Act)
Labor-Management Reporting and Disclosure Act (1959 Landrum-Griffin Act)

6. National Labor Relations Act of 1935 (Wagner Act) (1 of 2)
Objective was to encourage the growth of trade unions and restrain management from interfering with this growth
Made the government take an active role in union-management relationships by restricting the activities of management
Established the National Labor Relations Board (NLRB)

7. National Labor Relations Act of 1935 (Wagner Act) (2 of 2)
As originally drafted, included seven topics:
1. Recognition of employees’ rights to bargain collectively
2. Limitation on collective bargaining
3. Representation
4. Certification and decertification elections
5. Terms of collective bargaining agreements
6. Problem of company unions
7. Right to strike

8. Unfair Labor Practices by Employers (1 of 2)
Interfering with, restraining, or coercing employees in the exercise of their rights to organize
Dominating or interfering with the affairs of a union
Discriminating in regard to hiring, tenure, or any employment condition for the purpose of encouraging or discouraging membership in any union organization

9. Unfair Labor Practices by Employers (2 of 2)
Discriminating against or discharging an employee because he or she has filed charges or given testimony under the Wagner Act
Refusal to bargain collectively with representatives of the employees; that is, bargain in good faith

10. Labor Management Relations Act of 1947 (Taft-Hartley Act) (1 of 2)
Amended and supplemented the Wagner Act
Guaranteed employees’ bargaining rights
Specified unfair labor practices by a union
Denied supervisors legal protection in organizing their own unions
Prohibited unions from deducting union dues from members’ paychecks without prior written permission

11. Labor Management Relations Act of 1947 (Taft-Hartley Act) (2 of 2)
Provided the president of the United States the right to seek an 80-day court injunction against strikes or lockouts that could affect the nation’s health
Allowed employers to express their views against unions as long as they made no attempt to threaten or bribe employees
Allowed states to pass right-to-work laws that ban compulsory union membership

12. Unfair Labor Practices by Unions (1 of 2)
Restraining or coercing employees in the exercise of their right to join or not to join a union, except when an agreement is made by the employer and union that a condition of employment will be joining the union
Causing an employer to discriminate against an employee other than for nonpayment of dues or initiation
Charging excessive or discriminatory membership fees

13. Unfair Labor Practices by Unions (2 of 2)
Causing an employer to give payment for services not performed (featherbedding)
Inducing, encouraging threatening, or coercing any individual to engage in strikes, refuse to work, or boycott where the objective is to:
Force or require any employer or self-employed person to recognize or join any labor organization or employer organization
Force or require an employer or self-employed person to cease using the products of or doing business with another person
Force an employer to apply pressure to another employer to recognize a union

14. Labor-Management Reporting and Disclosure Act of 1959 (Landrum-Griffin Act) (1 of 2)
Regulates the internal affairs of unions
Gives every union member the right to:
1. nominate candidates for union office
2. vote in union elections
3. attend union meetings
4. examine union accounts and records
Union is required to submit an annual financial report to the Secretary of Labor

15. Labor-Management Reporting and Disclosure Act of 1959 (Landrum-Griffin Act) (2 of 2)
Employers must report any payments or loans made to unions, the officers, or members
Sweetheart contracts are eliminated
i.e., union leaders and management agree to terms that work to their mutual benefit, but maintain poor working conditions for other employees

16. Structure and Management of Unions
1. Federation of
Unions
2. Intermediate
Union Bodies
3. National
4. Local Unions 4

17. Why Employees Join Unions
Employees generally join unions to satisfy needs that are important to them, including:
Job security
Socialization and group membership
Safe and healthy working conditions
Communication link to management
Fair compensation

18. Authorization Card Campaign
Authorization card – document indicating that an employee wants to be represented by a union in collective bargaining
At least 30 percent of the employees must sign authorization cards before the NLRB can be petitioned to hold a representation election
If over 50 percent of the employees sign up, the union can ask the company directly that it be named representative without a certification election

19. Certification Election
Union petitions the NLRB for a certification election after the authorization cards demonstrate employees’ interest
NLRB conducts a secret-ballot election
Union must receive a simple majority of votes cast (50 percent plus one vote) to be certified as the exclusive bargaining representative
Collective bargaining begins

20. Levels of Union Security
4. Preferential
Shop
5. Closed Shop
6. Union Shop
2. Restricted
3. Agency
1. Open Shop 5

21. Right-to-Work Requirements
Section 14B of the Taft-Hartley Act
States may prohibit labor contracts that make union membership a condition of retaining employment (i.e., union shop)
Employees are permitted to resign from union membership at any time
22 states have enacted right-to-work laws

22. Public Sector Labor Legislation
Executive Order (1962)
Executive Order (1969)
Executive Order (1975)
Civil Service Reform Act (1978)
Federal Labor Relations Authority (FLRA)
Office of Labor-Management Relations

23. Collective Bargaining:
Process by which the representatives of the organization meet and attempt to work out a contract with the employees’ representative – the union

24. Forces Influencing the Bargaining Process
The Bargaining Arena
State of the economy
Bargaining Process
Public sentiment
Union representative
Management representative
Goals of the bargaining parties
Issues being discussed
Precedents in bargaining
Labor law

25. Mandatory Bargaining Issues
Wages
Working Hours
Other Terms and Conditions of Employment

26. Types of Collective Bargaining (1 of 2)
Distributive bargaining
Occurs when labor and management are in conflict on an issue and when the outcome is a win-lose situation
Integrative bargaining
Occurs when two sides face a common problem
Both parties seek a win-win outcome
Can result in accommodation of both sides’ needs without cost or through a simultaneous gain

27. Types of Collective Bargaining (2 of 2)
Concession bargaining
Exists when something of importance is given back to management
Concessions can consist of:
wage cuts
wage freezes of previously negotiated increases
benefits reductions
changes in work rules that result in increased flexibility for management

28. Steps to the Collective Bargaining Process
4. Using the
best tactics
5. Reaching a
formal contractual
agreement
6. Ratifying the
contract
2. Selecting
negotiators
3. Developing a
bargaining
strategy
1. Prenegotiation 5

29. Negotiating Tactics (1 of 2)
Conflict-based
Each party is uncompromising, takes a hard line, and resists any overtures for compromise or agreement
Armed truce
Each party views the other as an adversary
Recognition that an agreement must be worked out under the guidelines specified by the law

30. Negotiating Tactics (2 of 2)
Power bargaining
Each party accepts the other party with the knowledge that a balance of power exists
Accommodation
Both parties adjust to each other
Cooperation
Each side accepts the other as full partner

31. Content of a Labor Agreement
Purpose and intent of the parties
Scope of the agreement
Management rights
Responsibilities of the parties
Union membership and checkoff
Adjustment of grievance
Arbitration
Suspension and discharge cases
Rates of pay
Hours of work
Overtime and holidays
Vacations
Seniority
Safety and health
Military service
Severance allowance
Savings and vacation plan
Supplemental unemployment benefits program (S.U.B.)
S.U.B and insurance grievances
Prior agreements
Termination date

32. Failure to Reach Agreement: Work Stoppages
Strikes
Economic strike
Jurisdictional strike
Wildcat strike
Sit-down strike
Lockouts
Permanent Replacements

33. Failure to Reach Agreement: Third-Party Intervention
Mediation
Fact-Finding
Interest Arbitration

34. Administering the Contract
Discipline
Grievances
Arbitration

35. A Grievance Procedure: A Unionized Situation
Arbitrator
Step 4
Top union leadership
Step 3
Top management
Union committee or business agent
Middle management
Step 2
Step 1
Supervisor
Shop steward
Aggrieved employee

36. Key Factors in the Erosion of Unions’ Power
Increased competition in a global market
Shift in workforce from manufacturing to an economy based on service, knowledge, and information
New waves of immigration
Slowing or decreasing demand by non-unionized employees for union representation
Growing size of the contingent labor force

37. Summary
The future of American unions and whether or not they will remain an important part of our economy will depend on the following critical factors:
Quality of union leadership
Willingness to experiment with innovative organizing techniques
Frequent involvement with the rank-and-file employee
Ability to appeal to better-educated professional, service, and knowledge workers
Genuine cooperation with management