1. Week 11: Labor Relations Agenda for Today
Discuss the historical antecedents of current labor relations environment
Discuss goals of unions
Discuss reasons for the decline of unions
Understand different labor-management strategies
Discuss labor relations management process
Debate: Pros and Cons of Unionization

2. Historical Overview of Labor Relations
Little protection for labor rights before 1930s
First federal labor law: Railway Labor Act (RLA) Gave right to organize and bargain collectively only to railroad employees. In 1936, extended to airline employees
Norris-LaGuardia Act (1932): Extended right of workers to organize to other industries. Also restricted issuance of court injunections in labor disputes.
“National Labor Code”: Far reaching impact of 3 major pieces of legislation.

3. “National Labor Code” Acts
The Wagner Act of 1935 (or National Labor Relations Act) protected employees’ rights to form & join unions
Created the National labor Relations Board (NLRB)
Major function of NLRB is to prevent and remedy unlawful five unfair labor practices
The Taft-Hartley Act of 1947: limits some of the unions power and protects management rights
Identified six unfair union practices
Introduced right-to-work law (WI does not have it)
Made closed shops illegal; created Federal Mediation & Conciliation Service
The Landrum-Griffin Act of 1959: established to protect union members & their participation in union affairs

4. Labor Relations: State of Unions
Decline in private sector unions:
Percentage of private-sector workforce unionized declined from 24% (1975) to less than 14% in 2002 (Bureau of Labor Statistics)
Still over 70,000 local unions and 173 national unions: of these 110 belong to AFL-CIO
AFL-CIO represents about 80% of all unionized employees
Only 16% of Americans believe union leaders had a “high” or “very high” ethical standards.
But only 17% thought business leaders were honest or ethical.

5. Private-Sector Decline Due to:
Shift from Industrial to Service Economy
Service workers more difficult to organize
Hold pro-management views
Spread out across organizations
Foreign Competition and Technological Change
NAFTA (Manufacturing moved to other countries)
Layoffs and retirement especially in the last two years
Narrowing of union/nonunion wage gap in construction industries
Management interventions:
Improved management practices & union acceptance strategy
Preventative labor-relations practices (e.g., union avoidance strategies)
Union-busting

6. Public Sector Unions Growth in Public-Sector Unions:
Approximately 40% of workers unionized
Comprise 45% of all union members
These employees have less bargaining power:
Government power is diffuse: no one person is in charge (e.g., pay increases approved by city council)
Right to strike is limited (varies by state and region: e.g., teachers can’t strike in CO and WI; can in PA)
Results in:
Mandated arbitration and mediation
Broader focus on quality of work life and safety issues (e.g., safety equipment, class size, academic freedom, job security)
Members vote: well-organized public-sector union powerful figure in local and national politics

7. Union Goals Union Security: Union Shop Agency Shop
All new employees must join (usually within 30 days of hire)
Right-to-work states (about 21) prohibit union shops
Agency Shop
Employee not required to join shop, but must pay dues (which can be spend only on collective bargaining activities, not on political campaign/lobbying)
Maintenance-of-Membership Shop
Not required to join, but those who do join must remain until contract expires or designated “escape period” occurs
Closed Shop: not permitted under the Taft-Hartley Act (construction industry an exception); illegal requirement that employee must be union member at time of hire (happens in practice in union hiring halls);
Open Shop: employees free to decide on membership

8. Union Goals (contd.) Job Security Improved Economic Conditions
Seniority system
Subcontracting (ie., use laid-off workers rather than sub-contractors)
Retraining rights, advance notice, outplacement
Make-work activities
Improved Economic Conditions
Wages, benefits, pensions
Improved Working Conditions
Safety, shorter work weeks, less mandatory overtime, clean/healthy work environment
Social Actions (lobbying)

9. Labor Relations Strategy
Classified into two broad types:
Union Acceptance Strategy or Union Avoidance Strategy
Union Acceptance: Management believes labor unions are an ally and accepts collective bargaining as a foundation for workplace rules
Union Avoidance: Management does not believe in labor unions and tries to prevent its employees from unionizing through:
Union Suppression: Mgmt. uses hardball tactics to prevent union from organizing or to get rid of a union.
Union Substitution: Mgmt. becomes so responsive to employees’ needs that it removes incentives for unionization.

10. Managing the Labor Relations Process
Daily HR activities carried out by
Management and its representatives
Objectives & goals affect
(1)
Workers desire collective representation
(2)
Unions begin organizing process
(3)
Collective negotiations lead to a contract
(4)
Contract is administered
May result in
Objectives & goals affect
Labor and its representatives
Laws and Regulations

11. Labor Relations Debate!
Pro-Labor Views:
Pro-Management Views: