1. Chapter 13: Employee and Labor Relations

2. Objectives After reading this chapter, you should be able to:
Explain why labor unions exist.
Describe the main purpose and key points of the laws regulating labor relations.
Discuss unfair labor practices.
Understand the different types of unions and union shops.
Explain the steps in the process of organizing a union.
Describe the collective bargaining process.
Explain the grievance process used in a union environment.
Discuss issues in managing labor relations in the future.

4. History of Labor Union Movement in U.S.
Skilled craftspeople first to unionize to keep out competition
Strikes used to achieve union objectives
By 1873, union membership in U.S. = 300,000
Membership dropped to 50,000 by 1878 due to Great Depression
American Federation of Labor (AFL) formed in 1886
1933 unions became firmly entrenched in U.S. with prounion U.S. president and legislation making it easier to unionize
By 2013, union membership reached record low of 11.3% of workforce

6. Reasons for Decline in Union Membership
Globalization resulted in manufacturing, a heavily unionized sector, moving abroad
Job growth in service sector and small businesses, sectors that typically don’t unionize
Local unions reluctant to spend on unionizing efforts
Workers more capable of negotiating workplace conditions for self

7. Government Regulation of Labor Unions
Railway Labor Act of 1926
Norris-LaGuardia Act of 1932
Wagner Act (National Labor Relations Act) of 1935
Taft-Hartley Act of 1947
Landrum-Griffin Act of 1959

8. Norris-LaGuardia Act of 1932
Made it easier for employees to engage in union-organizing activities
Outlined process for hearings
Granted collective bargaining rights

9. Wagner Act (National Labor Relations Act)
Most important piece of labor relations legislation
Passed to:
Protect rights of employees and employers
Encourage parties to engage in collective bargaining
Control activities so economy wouldn’t be adversely affected
Established National Labor Relations Board (NLRB)

10. Employee Rights To form, or attempt to form, a union in the workplace
To join a union, even if it’s not recognized by employer
To assist in union-organizing efforts
To engage in group activities (collective bargaining) such as attempting to modify wages or working conditions
To refuse to do any or all of above unless clause requiring employees to join union exists

11. Protected Concerted Activity
When two or more non-union employees act together to try to improve working conditions, or when a single employee approaches management after conferring with other employees on their behalf, or is acting on behalf of other employees, their actions are covered by NLRA

12. Unfair Labor Practices (ULP)
Interfering with, restraining, or coercing employees in exercise of rights
Dominating or interfering with formation or administration of any labor organization, or contributing financial or other support to it
Discriminating against employees in terms of hiring, tenure, or other terms or conditions of employment, so as to encourage or discourage them from becoming members in a labor organization
Discharging or otherwise discriminating against employees because they file charges or give testimony under the Act
Refusing to bargain collectively with duly chosen representatives of employees

13. Taft-Hartley Act of 1947 To promote full flow of commerce
To prescribe the legitimate rights of employees and employers in their relations affecting commerce
To provide orderly and peaceful procedures for preventing employees and employers from interfering with legitimate rights of other party
To protect rights of individual employees in their relations with labor organizations
To protect rights of public in connection with labor disputes affecting commerce

14. Union Membership Right-to-work laws prevent workers from:
Being forced to join a union as condition of employment
Be prevented from joining a union as a condition of employment
Be forced to pay dues to a labor union
Be fired for not paying such dues

16. Types of Union Shops
Closed shop
Union shop
Agency shop

18. Landrum-Griffin Act of 1959
Part of National Labor Relations Code
Protects union members from being abused by unions
Outlines responsibilities of union officers
Provides a bill of rights for union members

19. Types of Unions
Craft unions
Industrial unions
International unions

20. Union Organizing Process
Bargaining unit
Union authorization card
Excelsior list
Card checks
Neutrality agreements

22. Collective Bargaining
Good faith bargaining
Mandatory bargaining topics
Permissive topics
Bad faith bargaining
Negotiating the agreement
Prepare
Know the interests of other party

23. Bargaining Strategies
Distributive bargaining
Integrative bargaining
Interest-based bargaining (IBB)

24. Consequences of Not Reaching Agreement
Impasse
Conciliation
Mediation
Arbitration

26. Other Issues National Labor Relations Board Decertification
Corporate campaigns
Public-sector labor relations

27. Trends in Labor Relations
Changes in union activities
Social media
New forms of employee organizations
Global trends