1. Chapter 9: Managing Labor Relations and Collective Bargaining Trevor Fillingame, Michael Mallette, Hayes Norris, Cameron Roten, Alexandra Williams

2. Unions: The Labor Movement Union: an organized group of workers who collectively use their strength to have a voice in their workplace. Why They Organize: Higher pay, managerial mistreatment, availability of an effective union According to Bureau of Labor Statistics: Decline: 20.1% in 1983 to 11.1 in 2014 Private Sector Union Membership: 6.6% in 2014 Public Sector Union Membership: 35.7% in 2012; decreased bargaining rights

3. Union Security Union Security: Acting as firm’s worker’s representative and exclusive bargaining agent for all employees in the unit. 1.Closed Shop: Company can hire only union members; illegal in 1947 1.Union Shop: co. can hire nonunion people, but they must join union after certain period and pay dues 1.Agency Shop: all employees( union or not) must pay dues 1.Preferential Shop: Union members get preference in hiring 1.Maintenance of Membership Agreement: Employee do not have to belong to union. Existing union members must maintain membership for contract period.

4. Unions and the Law Wagner Act(1935): Banned certain unfair labor practices, provided secret-ballot election and majority rule when determining unionization of a firm’s employees, and created the National Labor Relations Board. Taft Hartley Act(1947): Introduced Right-To-Work Laws in 19 States, employers given full freedom to express their views of union organization. Right to Work Laws: state statutory or provision banning requirement of union membership as a condition of employment. ●Outlaw any type of Union Security within designated state

5. Handling Grievances Grievance Process: Not to be used to renegotiate contract points ➔ Wages, hours & conditions of employment = basis for grievances ◆ Ex: Cleveland Browns and American Postal Workers Union ➔ Typically multistep procedure + appeal process ➔ In the case a contingency is not covered, contract administration ➔ Interpersonal relations influence team’s grievance rate

6. How to Handle a Grievance DO: ●Handle every case as if it may result in hearing ●Require union to specify provisions violated ●Establish any witnesses ●Inform supervisor of grievance matters DONT: ●Hold back remedy if company is wrong ●Stray from labor agreement ●Trade settlement for withdrawal ●Relinquish your rights as manager

7. The Union Drive and Election Means by which employees can vote for or against union representation. 5 steps: 1.Initial Contact 2.Authorization cards 3.Hearing 4.Campaign 5.Election

8. Initial Contact Union gauges employee interest Initiative can come from employees or unions ●Unions may or may not already represent employees of the firm Guidelines: ●Cannot endanger employees’ performance or safety ●Union-employee meetings generally take place outside the workplace Union salting

9. Authorization Cards Union must prove sufficient interest to NLRB - 30% This stage: union vs. management ●Must advocate their side NO threats, bribes, or coercion No retroactive policies by management

10. The Hearing (or not) 3 possible outcomes of authorization cards: 1.Firm does not contest union recognition 2.Firm does not contest union’s right to an election 3.Firm does contest union’s right to an election NLRB sends hearing officer Bargaining unit

11. The Campaign Union: ●improve working conditions ●raise wages ●increase benefits ●make work more rewarding Management: ●improvements don’t require unions ●wages are better than with a union ●Cost of union dues ●possible strikes ●“outsider” ●ethical, moral attacks on unions Union and employer appeal to employees for their votes

12. The Campaign Acronyms for proper and improper behavior during a campaign: ●TIPS: avoid these behaviors ○Threaten ○Interrogate ○make Promises to ○Spy on employees Supervisors can prohibit ●solicitation during work hours ●entry onto workspace (depends on type of firm) ●employee entry onto workspace if can prove rule is required for reasons of production, safety, discipline ●FORE: perform these behaviors ○give Facts ○express Opinions ○explain Rules ○share Experiences

13. The Election May be held 30-60 days after NLRB issues Decision and Direction of Election Union victory less likely with more voters Union needs a majority of votes cast, not majority of workers in bargaining unit Violation of unfair labor practices can result in overturning the election Decertification

14. What’s Next for Unions? 40 Years Later: Union membership has declined 67% since 1975 ➔ Reasons for decline: blue-collar workers, globalization, deregulations Free Choice Act: persuade employers not to inhibit formation of new unions ➔ new means of union recognition → “Card Check” system ➔ class action lawsuits for non-unionized companies Cooperative clauses: joint committees to review drug problems/safety issues

15. Collective & Good Faith Bargaining Collective Bargaining: both management and labor are required by law to negotiate wages, hours, and terms of employment “in good faith” Good Faith Bargaining: proposals must be matched with counterproposals and both parties make every reasonable effort to arrive at an agreement - neither party is compelled to agree to a proposal

16. When is bargaining NOT in good faith? 1.Proposals and Demands -advancement of proposals are considered positive factors 1.Withholding Information -management failing to provide usable info on wages, hours, and other terms of employment 1.Dilatory Tactics -must meet at reasonable times and intervals 1.Unilateral changes in conditions -strong indication of employer not bargaining with the intent to reach an agreement

17. Bargaining Items Mandatory: wages, hours, rest periods, layoffs, transfers, etc. Voluntary: through joint agreement of management and union Illegal: forbidden by law

18. Negotiating Guidelines -set clear objectives -do not rush the process -be well prepared with supporting data -always strive for some felxibility -constantly be alert of opposite party’s true intention -consider the impact of present negotiation on future operations

19. Impasses and Strikes -Impasses: usually occurs because one party demands more that the other offers -Strikes: withdrawal of labor 1.economic strike 2.unfair labor practice strike 3.wildcat strike - unauthorized during contracted time 4.sympathy strike - in support of another strike

20. The Boeing Unionization at South Carolina Plant: April 2015 ●Employee needs ●CEO Response ○contradictory to previous behavior? ●Charges Filed ○unfair labor tactics ●Likely outcomes ○State unionization rate= 2.2% of all employees ○Community Involvement