11

COLLECTIVE BARGAINING

22

Chapter Objectives

Discuss whether or not an adversarial relationship exists between union and management.

Explain labor-management relations and individual bargaining.

Describe labor-management relations and collective bargaining.

Explain the psychological aspects of collective bargaining.

33

Chapter Objectives (Continued)

Describe the factors involved in preparing for negotiations.

Explain typical bargaining issues. Describe the process of negotiating the

agreement. Identify ways to overcome breakdowns

in negotiations.

44

Chapter Objectives (Continued)

Describe what is involved in ratifying the agreement.

Explain factors involved in administering the agreement.

Describe collective bargaining in the public sector.

55

Individual Bargaining

Employment at will – unwritten contract created when employee agrees to work, but no agreement exists as to how long parties expect employment to last

66

Individual Bargaining (Continued)

Seniority means little Concept of supply and demand

Employment at will

77

Collective Bargaining

Fundamental to management-organized labor relations in United States

88

Forms of Bargaining Structures

One company dealing with a single union

Several companies dealing with single union

Several unions dealing with a single company

Several companies dealing with several unions

99

Union/Management Relationships

Conflict Armed truce Power bargaining Accommodation Cooperation Collusion

1010

Collective Bargaining Process

Preparing for negotiation Bargaining issues Negotiation Negotiation breakdown Reaching the agreement Ratifying the agreement Administration of the agreement

1111

Psychological Aspects of Collective Bargaining

Difficult because process is an adversarial situation and must be dealt with as such

Psychological aspects vitally important

1212

Preparing for Negotiations

The Borg-Warner Doctrine, derived from the Supreme Court decision in the case of NLRB v. Wooster Division of Borg-Warner Corporation (1958), empowered the NLRB to categorize bargaining issues as:

Mandatory - wages, hours, etc. Permissive – may be discussed, i.e.,

representation of the union on the company Board of Directors. Also referred to as voluntary bargaining

Prohibited - statutorily outlawed, i.e., closed shop or proposing work rules that would violate the Civil Rights Act

1313

Bargaining Issues

Document that results from collective bargaining process is labor agreement or contract

Recognition Management Rights

Union Security Compensation and Benefits

Grievance Procedure Employee Security

1414

Recognition

Appears at the beginning of the labor agreement

Identifies the union that is recognized as the bargaining representative

Describes the bargaining unit

1515

Management Rights

Section that is often (but not always) written into labor agreement which spells out rights of management

1616

Union Security Closed Shop -Arrangement whereby

union membership is a prerequisite to employment – outlawed by Taft-Hartley, modified by Landrum-Griffin to allow for the construction industry only

Union Shop - Requires that all employees become members of the union after a specified period

Maintenance of Membership - Must continue their memberships until the termination of the agreement

1717

Union Security (Continued)

Agency Shop - Nonunion members pay union the equivalent of membership dues as a kind of tax

Exclusive Bargaining Shop - Company must deal with union that has achieved recognition, but employees are not obligated to join

Open Shop – Equal terms for union members and nonmembers

Dues Checkoff - Company agrees to withhold union dues

1818

Compensation and Benefits

Wage rate schedule Overtime and premium

pay Jury pay Layoff or severance pay Holidays Vacation Family care

1919

Grievance Procedure

Means by which employees can voice dissatisfaction with specific management actions

Procedures for disciplinary action by management

Termination procedure that must be followed

2020

Employee Security

Seniority Grievance handling procedures;

typical model: Complaint of ULP must be initiated

within a prescribed time period Normally filed with front-line

supervisor, who meets with Ee to attempt to resolve

IF unacceptable, union has prescribed time frame to appeal

Same basic process, escalated to higher levels of union/mgmt

IF unacceptable, then goes to officer level

IF unacceptable, then arbitration per labor contract terms

2121

Job-Related Factors

Many of rules governing employee actions on job are included

2222

Negotiating the Agreement

Begins with each side presenting initial demands

Suggests a certain amount of give and take

Each side does not expect to obtain all demands presented

2323

Breakdowns in Negotiations

Third party intervention Union strategies for

overcoming breakdowns

Management strategies for overcoming breakdowns

2424

Third Party Intervention

Mediation - neutral party comes in when impasse has occurred

Arbitration – impartial third party makes binding decision to settle dispute

Sources of mediators and arbitrators Federal Mediation and

Conciliation Service (FMCS), established under Taft-Hartley

American Arbitration Association (AAA)

2525

Union Strategies for Overcoming Negotiation Breakdowns

Strikes – union members refuse to work to pressure management in negotiations

Boycotts – union members agree to refuse to use or buy firm’s products

2626

Management Strategies for Overcoming Negotiation

Breakdowns

Lockout – keep employees out; operate firm by placing management and nonunion workers in striking workers’ jobs

Hire replacement for strikers

2727

Ratifying the Agreement

May be more difficult for union

Until approved by majority of members, proposed agreement is not final

2828

Administration of the Agreement

Larger and perhaps more important part of collective bargaining

Seldom viewed by public Agreement establishes the union-

management relationship for duration of the contract

2929

Collective Bargaining for Federal Employees

Executive Order 10988 (1962) established basic framework of collective bargaining in federal agencies

Later transferred to Title VII of the Civil Service Reform Act of 1978 Established Federal Labor Relations

Authority (FLRA), modeled after the NLRB, to manage the process of negotiation with unions that represent federal Ee’s

Title V of the U.S. Code, which dictates personnel rules for federal employees, narrows the EO somewhat by taking wages off the table, except for U.S. Postal Service workers