1 Labor Relations Paul L. Schumann, Ph.D. © 2011 by Paul L. Schumann. All rights reserved

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Labor RelationsLabor Relations

Paul L. Schumann, Ph.D.Paul L. Schumann, Ph.D.

© 2011 by Paul L. Schumann. All rights reserved.© 2011 by Paul L. Schumann. All rights reserved.

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Labor RelationsLabor Relations

Goal: resolve management-worker Goal: resolve management-worker conflicts in a way that minimizes conflicts in a way that minimizes stakeholders’ costsstakeholders’ costs• Minimize costly forms of conflictMinimize costly forms of conflict• Maximize integrative solutionsMaximize integrative solutions

Strategic level choicesStrategic level choices Functional level choicesFunctional level choices Workplace level choicesWorkplace level choices

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UnionsUnions

Types:Types:• Craft unionCraft union• Industrial unionIndustrial union

Federation of unions: AFL-CIOFederation of unions: AFL-CIO Collective bargainingCollective bargaining

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Major LawsMajor Laws

Railway Labor ActRailway Labor Act National Labor Relations ActNational Labor Relations Act

• National Labor Relations Board (NLRB)National Labor Relations Board (NLRB) Civil Service Reform ActCivil Service Reform Act

• Federal Labor Relations AuthorityFederal Labor Relations Authority State lawsState laws

• Minnesota: PELRA (law), MMB Minnesota: PELRA (law), MMB (employer), BMS (administers PELRA)(employer), BMS (administers PELRA)

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National Labor Relations ActNational Labor Relations Act

NLRB: NLRB: http://www.nlrb.gov Employee rights include:Employee rights include:

• Forming, or attempting to form, a unionForming, or attempting to form, a union• Joining a unionJoining a union• Using a union to try to modify the terms Using a union to try to modify the terms

& conditions of employment (pay, & conditions of employment (pay, benefits, working conditions, etc.)benefits, working conditions, etc.)

• Refusing to do any of these thingsRefusing to do any of these things• See: See: http://www.nlrb.gov/rights-we-protect/employee-rights

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National Labor Relations ActNational Labor Relations Act

Unfair Labor Practices (ULPs)Unfair Labor Practices (ULPs)• EmployersEmployers

Employers are prohibited from interfering Employers are prohibited from interfering with, restraining, or coercing employees in with, restraining, or coercing employees in the exercise of their rightsthe exercise of their rights

• UnionsUnions Unions may not restrain or coerce Unions may not restrain or coerce

employees in the exercise of their rightsemployees in the exercise of their rights

• Examples:Examples: http://www.nlrb.gov/rights-we-protect/employerunion-rights-obligations

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Union Organizing ConceptsUnion Organizing Concepts

Why do workers join unions?Why do workers join unions? Why does management frequently Why does management frequently

oppose unions?oppose unions?• Methods of “union avoidance”Methods of “union avoidance”• Why might management take a neutral Why might management take a neutral

stance or support unions?stance or support unions?

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Legal FrameworkLegal Framework

Authorization cardsAuthorization cards• Voluntary recognitionVoluntary recognition• Dispute over representation & showing Dispute over representation & showing

of “sufficient interest”of “sufficient interest” Appropriate bargaining unitAppropriate bargaining unit Majority vote winsMajority vote wins

• ““Exclusive representation”Exclusive representation”• ““Duty to bargain in good faith”Duty to bargain in good faith”

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Union SecurityUnion Security

Dues checkoff provisionsDues checkoff provisions Membership provisions:Membership provisions:

• Closed shopClosed shop• Union shopUnion shop

““Beck rights”Beck rights”

• Agency shopAgency shop• Maintenance of membershipMaintenance of membership• ““Right-to-work” state lawsRight-to-work” state laws

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Contract NegotiationsContract Negotiations

Types of issues:Types of issues:• MandatoryMandatory

““Duty to bargain in good faith”Duty to bargain in good faith”

• PermissivePermissive• Prohibited (or illegal)Prohibited (or illegal)

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Contract NegotiationsContract Negotiations

Types of bargaining:Types of bargaining:• Distributive bargainingDistributive bargaining• Integrative bargainingIntegrative bargaining• Attitudinal structuringAttitudinal structuring• Intraorganizational bargainingIntraorganizational bargaining

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Stages of BargainingStages of Bargaining

Early: trade initial positionsEarly: trade initial positions• ““Agenda rule”Agenda rule”

Middle: trade concessionsMiddle: trade concessions• Commitment tacticsCommitment tactics

ExampleExample

End: mutually agreeable settlement End: mutually agreeable settlement or impasseor impasse

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Bargaining PowerBargaining Power

My bargaining power in negotiations My bargaining power in negotiations with you:with you:• Is defined in terms of my ability to get a Is defined in terms of my ability to get a

settlement on my termssettlement on my terms• Depends on:Depends on:

demandsmy toagreeing ofyou cost to

demandsmy togdisagreein ofyou cost to

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Impasses in NegotiationsImpasses in Negotiations

StrikesStrikes LockoutsLockouts MediationMediation Interest arbitrationInterest arbitration

• Conventional interest arbitrationConventional interest arbitration• Final offer interest arbitrationFinal offer interest arbitration

By packageBy package By issueBy issue

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Contract AdministrationContract Administration

GrievancesGrievances Grievance procedureGrievance procedure

• Grievance arbitrationGrievance arbitration