1. Copyright ©2012 by Cengage Learning. All rights reserved.11- 1 Chapter 11 Managing Labor Relations Prepared by Joseph Mosca Monmouth University

2. Copyright ©2012 by Cengage Learning. All rights reserved.11- 2 Learning Objectives 1.Describe the role of labor unions in organizations. 2.Identify and summarize trends in unionization. 3.Discuss the unionization process. 4.Describe the collective-bargaining process. 5.Discuss how labor agreements are negotiated. 6.Describe how impasses get resolved and agreements are administered. 7.Discuss emerging labor issues in the twenty-first century.

3. Copyright ©2012 by Cengage Learning. All rights reserved.11- 3 The Role of Labor Unions in Organizations Labor relations is the process of dealing with employees who are represented by a union. A labor union is a legally constituted group of individuals working together to achieve shared, job- related goals, including higher pay and shorter working hours.

4. Copyright ©2012 by Cengage Learning. All rights reserved.11- 4 What is Collective Bargaining? It is the process by which managers and union leaders negotiate acceptable terms and conditions of employment for those workers represented by the unions.

5. Copyright ©2012 by Cengage Learning. All rights reserved.11- 5 Historical Development of Unions The Knights of Labor was an important early union that expanded its goals and its membership to include workers in numerous fields rather than a single industry. The American Federation of Labor (AF of L) was another early union. It focused its efforts on improved working conditions and better employment contracts rather than getting involved in legislative and political activities.

6. Copyright ©2012 by Cengage Learning. All rights reserved.11- 6 Legal Context of Unions The National Labor Relations Act, passed in 1935 and more commonly referred to as the Wagner Act, granted power to labor unions on a footing more equal with managers in terms of the rights of employees. The National Labor Relations Board (NLRB) administers most labor laws in the United States.

7. Copyright ©2012 by Cengage Learning. All rights reserved.11- 7 Legal Context of Unions (cont’d) A union shop agreement includes various types of union security agreements in addition to a requirement that a nonunion member can be hired, but he or she must join the union within a specified time to keep his or her job. The Landrum-Griffin Act (officially called the Labor Management Reporting and Disclosure Act) was passed in 1959 and focused on eliminating various unethical, illegal, and undemocratic union practices.

8. Copyright ©2012 by Cengage Learning. All rights reserved.11- 8 Union Structures Locals are unions organized at the level of a single company, plant, or small geographic region. The shop steward, an elected position in a local union, is a regular employee who functions as a liaison between union members and supervisors.

9. Copyright ©2012 by Cengage Learning. All rights reserved.11- 9 Setting Parameters for Collective Bargaining Mandatory items, including wages, working hours, and benefits, must be included if either party expresses a desire to negotiate one or more items. Permissive items may be included if both parties agree.

10. Copyright ©2012 by Cengage Learning. All rights reserved.11- 10 Barriers to Effective Negotiations (con’t) A strike occurs when employees walk off their jobs and refuse to work. Picketing occurs when workers representing the union march at the entrance to the employer’s facility with signs explaining their reasons for striking. A boycott occurs when union members agree not to buy the products of a targeted employer.

11. Copyright ©2012 by Cengage Learning. All rights reserved.11- 11 Barriers to Effective Negotiations (con’t) A slowdown occurs when workers perform their jobs at a much slower pace than normal. A wildcat strike occurs during the course of a labor contract and is usually undertaken in response to a perceived injustice on the part of management. A lockout occurs when an employer denies employees access to the workplace.

12. Copyright ©2012 by Cengage Learning. All rights reserved.11- 12 Resolving Impasses (cont’d) In arbitration both sides agree in advance that they will accept the recommendations made by an independent third party. Under final-offer arbitration, the parties bargain until impasse and then the two parties’ final offers are submitted to the arbitrator.

13. Copyright ©2012 by Cengage Learning. All rights reserved.11- 13 “Replacement” Sources of Labor Both unions and employers are becoming involved in the hiring of prisoners and paying them the rate of the minimum wage.

14. Copyright ©2012 by Cengage Learning. All rights reserved.11- 14 Unions and the Electronic Age The internet presents many interesting problems for labor unions, such as:  Computers and technology mean that work can be done by fewer employees.  Unions have no input when organizations move operations to foreign lands for cheaper labor costs.  Technology often reduces the number of employees required to work.

15. Copyright ©2012 by Cengage Learning. All rights reserved.11- 15 How Has Technology Been Positive for Unions? Unions can communicate more easily with members. Prospective members are easily reached in spite of no-solicitation rules.