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© 2003 Prentice Hall, Inc.14-1
Chapter 14
Labor Relations and Collective Bargaining
© 2003 Prentice Hall, Inc.14-2
Chapter 14 Outline
The labor movement A brief history of the American union movement Why do workers organize?
Research insight What do unions want?
Union security Improved wages, hours, and benefits for
members The AFL-CIO
© 2003 Prentice Hall, Inc.14-3
Chapter 14 Outline
Unions and the law Period of strong encouragement: The Norris-
LaGuardia (1932) and National Labor Relations or Wagner Acts (1935) Unfair employer labor practices From 1935 to 1947
Period of modified encouragement coupled with regulation: The Taft-Hartley Act (1947) Unfair union labor practices Rights of employees Rights of employers National emergency strikes
© 2003 Prentice Hall, Inc.14-4
Chapter 14 Outline
Unions and the law (cont.) Period of detailed regulation of internal union affairs:
The Landrum- Griffin Act (1959) Entrepreneur’s HR: Dot-coms and unions
The union drive and election Step 1. Initial contact
Labor relations consultantsUnion salting
Step 2. Obtaining authorization cards
© 2003 Prentice Hall, Inc.14-5
Chapter 14 Outline
The union drive and election (cont.) Step 3. Hold a hearing Step 4. The campaign Step 5. The election How to lose an NLRB Election The supervisor’s role Rules regarding literature and solicitation The new workplace: Unions go global Decertification elections: Ousting the union
© 2003 Prentice Hall, Inc.14-6
Chapter 14 Outline
The collective bargaining process What is collective bargaining? What is good faith? The negotiating team Bargaining items Bargaining stages Bargaining hints
© 2003 Prentice Hall, Inc.14-7
Chapter 14 Outline
The collective bargaining process (cont.) Impasses, mediation, and strikes
Third-party involvement Strikes Other alternatives
The contract agreement Strategic HR: Amazon.com and unionization
Grievances Sources of grievances The grievance procedure Guidelines for handling grievances
© 2003 Prentice Hall, Inc.14-8
Chapter 14 Outline
The future of unionism Why union membership is declining What’s next for unions? HR.net: Unions and the Internet Employee participation programs and
unions
Summary
© 2003 Prentice Hall, Inc.14-9
After Studying This Chapter You Should Be Able To:
Give a brief history of the American labor movement
Discuss the main features of at least three major pieces of labor legislation
Present examples of what to expect during the union drive and election
Describe five ways to lose an NLRB election Illustrate with examples bargaining that is not in
good faith Develop a grievance procedure
© 2003 Prentice Hall, Inc.14-10
Strategic Overview
How to deal effectively with unions and grievances
The basics of labor legislations Explain labor negotiations What you can expect during the actual
bargaining sessions
© 2003 Prentice Hall, Inc.14-11
The Labor Movement
16 Million U.S. workers belong to unions – about 14% of all working men and women
Why are unions important?How did they get that way?
Why do workers join them?
How do employers and unions hammer out agreements?
© 2003 Prentice Hall, Inc.14-12
Union History
1790 Samuel Gompers formed the
American Federation of Labor - AFL
Decline and growth
© 2003 Prentice Hall, Inc.14-13
Why Organize?
Weekly earnings of union members are much higher than of nonunion workers
Better benefits Low morale, fear of job loss, and poor
communication help foster unionization
© 2003 Prentice Hall, Inc.14-14
Research Insight
Dissatisfaction with basic bread-and- butter issues
Not non-economic issues Workers must feel helpless to change
things If they collectively feel change can occur
then unionization may occur
© 2003 Prentice Hall, Inc.14-15
What Do Unions Want?
Security Closed shop Union shop Agency shop Open shop Maintenance of membership arrangement
Improved wages, hours, and benefits
© 2003 Prentice Hall, Inc.14-16
The AFL-CIO
Gompers’ AFL and the Congress of Industrial Organizations (CIO) merged in 1955, with George Meany as its first president
National federation
Chapter
Local
© 2003 Prentice Hall, Inc.14-17
Unions And The Law1932-1947
Norris-LaGuardia Act of 1932 National Labor Relations (or Wagner) Act
Banned certain unfair labor practices Provided for secret-ballot elections Created the National Labor Relations Board
(NLRB)
© 2003 Prentice Hall, Inc.14-18
Wagner Act
Deemed five unfair labor practices used by employers as “statutory wrongs”: Right to organize Formation or administration of labor unions Discrimination for legal union activities Employees file charges Must bargain collectively
© 2003 Prentice Hall, Inc.14-19
Unions And The Law 1947 – The Taft-Hartley Act
Amended Wagner Act in 4 ways: Prohibit unfair labor practices Rights of employees Rights of employers Some strikes can be prohibited
NLRB form 501
© 2003 Prentice Hall, Inc.14-20
Unfair Labor Practices
Unions banned from restraining or coercing employees from exercising their own bargaining rights
Can’t make an employer discriminate Can’t refuse to bargain in good faith Can’t engage in featherbedding
© 2003 Prentice Hall, Inc.14-21
Taft-Hartley Act RightsEmployees
Protects rights of employees against unions
Right-to-work laws sprang up in 19 mostly southern states
Union membership varies by state27%
4%17%
20%
24%
7%7%
© 2003 Prentice Hall, Inc.14-22
Taft-Hartley Act Rightsof Employers
Freedom to express their views Can set forth the union’s record Cannot meet with employees on
company time within 24 hours of an election
Suggest they vote against the union while they are at home
© 2003 Prentice Hall, Inc.14-23
Unions And The Law 1959 - Landrum-Griffin Act
A period of detailed regulation of internal union affairs
Bill of rights and due process Rules regarding union elections Greatly expanded list of unlawful
employer actions
© 2003 Prentice Hall, Inc.14-24
Entrepreneurs+HR –Dot.coms and Unions
Not immune to unionization Many dot.coms doing old company tasks Benefits evaporated after bubble broke Many are overly lax Don’t lose touch with your employees
© 2003 Prentice Hall, Inc.14-25
Union Drive and Election
5 Steps to recognition and representation
Initial Contact
Obtain Authorization Cards
Hold Hearing
The Campaign
The Election
© 2003 Prentice Hall, Inc.14-26
Step 1. Initial Contact
Determine employee interest Rules say can’t endanger the
performance or safety of the employees Both sides use labor relations
consultants Union salting
© 2003 Prentice Hall, Inc.14-27
Step 2. Obtaining Authorization Cards
Union must petition NLRB to hold an election 30% must sign authorization cards Propaganda phase Picketing subject to:
Petition for electionCannot already recognize another unionNo valid NLRB election during past 12 months
© 2003 Prentice Hall, Inc.14-28
Step 3. Hold a Hearing
NLRB hearing addresses: Does record show sufficient interest What bargaining unit will be
No contest –No hearing –
Consent election
No contest –No hearing –
Election
Contest –Hearing held
NLRB hearing notice
Does the employer qualify for coverage by the NLRB?
Is union recognized by National Labor Relations Act?
Does prior bargaining agreement prevent an election?
© 2003 Prentice Hall, Inc.14-29
Step 4. The Campaign
Let the campaign begin! Union says it will prevent unfairness and
improve wages Management says union promises won’t
make any difference
© 2003 Prentice Hall, Inc.14-30
Step 5. The Election
Election held 30-60 Days after NLRB issues decision
Secret ballot Union wins if they get
majority of votes cast
© 2003 Prentice Hall, Inc.14-31
How to Lose an NLRB Election
Employers lost ½ of the elections because: Asleep at the switch Appointed a committee Concentrated on money and benefits Industry blind spots Delegate too much to divisions
© 2003 Prentice Hall, Inc.14-32
Appointing a Committee
36% of losing companies appointed committees to handle the election
Promptness is essential Most members are NLRB neophytes Committees usually compromise
© 2003 Prentice Hall, Inc.14-33
The Supervisor’s Role
First line of defense Sensitive to evolving employee attitude
problems Treat employees fairly and honestly Supervisors must know possible
consequences
© 2003 Prentice Hall, Inc.14-34
Literature and Solicitation Rules
Soliciting employees during work time No soliciting except break times Bar non-employees from the building’s
interiors and work areas Deny access for safety, production or
discipline reasons
© 2003 Prentice Hall, Inc.14-35
The New Workplace -Global Unions
Can’t avoid unions by going abroad Trading partnerships lets union
membership span countries U.S. owned offshore factories are
organizing Raising offshore wages removes impetus
to relocate factories
© 2003 Prentice Hall, Inc.14-36
Ousting the Union
Decertification is the legal process for employees to terminate a union’s right to represent them
Handled much like certification process
Definition
Definition
© 2003 Prentice Hall, Inc.14-37
What is collective bargaining?
Collective bargaining The process through which representatives of management and the union meet to negotiate a labor agreement.
Definition
Definition
© 2003 Prentice Hall, Inc.14-38
Surfacebargaining
Good Faith
Good faith bargaining is the cornerstone Both parties communicate and negotiate The following are not good faith methods:
Inadequate concessions
Inadequate proposals and demandsDilatory
tacticsImposing
conditionsMaking unilateral
changes in conditionsWithholdinginformation
Bypassing the representative
Committing unfairnegotiationsIgnoring
bargaining items
© 2003 Prentice Hall, Inc.14-39
The Negotiating Team
Both sides come to bargaining table having done their homework
Management compiles data that bolsters its case
Workers have issues they need resolved
© 2003 Prentice Hall, Inc.14-40
Bargaining Items
Mandatory Voluntary or permissible Illegal
© 2003 Prentice Hall, Inc.14-41
Bargaining Items (Cont.)
© 2003 Prentice Hall, Inc.14-42
Bargaining Stages
© 2003 Prentice Hall, Inc.14-43
Bargaining Hints
Set clear objectives for each bargaining item
Do not hurry When in doubt, caucus with associates
Have firm data supporting your position
Keep some flexibility in your position
Find out why other party says what it does
Let other party save face Be a good listener
Determine real intentions of others
Build a reputation as being fair but firm
Control your emotions
Know bargaining interrelationships
Monitor objectives
Read fine print
All about compromise
Understand people Consider impact in future years
© 2003 Prentice Hall, Inc.14-44
Impasses and Mediation
Impasse - collective bargaining situation that occurs when the parties are not able to move toward a settlement
Mediation - intervention in which a neutral third party tries to assist the principals in reaching agreement
Definitions
Definitions
© 2003 Prentice Hall, Inc.14-45
Impasses and Mediation
Fact finder - a neutral party who studies the issues in a dispute and makes a public recommendation for a reasonable settlement
Arbitration - the most definitive type of third-party intervention, in which the arbitrator usually has the power to determine and dictate the settlement terms
Definitions
Definitions
© 2003 Prentice Hall, Inc.14-46
Strikes
4 Main types of strikes: Economic – results from failure to get contract Union labor practice – protests illegal conduct Wildcat – unauthorized Sympathy – in support of another strike
© 2003 Prentice Hall, Inc.14-47
Minimizing Strike Confusion
Pay Secure Notify Contact Arrange Notify Photograph Record Gather
© 2003 Prentice Hall, Inc.14-48
Alternatives
Corporate campaign Boycott Inside games Lockout Injunction
© 2003 Prentice Hall, Inc.14-49
The Contract Agreement
May be 20-30 pages or more Covers general declarations of
policy Often contains detailed rules
© 2003 Prentice Hall, Inc.14-50
Grievances
Grievance - any factor involving wages, hours, or conditions of employment that is used as a complaint against the employer Most serious and difficult involve discipline,
seniority, and job evaluations Usually caused by a bad supervisor –
subordinate relationship
Definitions
Definitions
© 2003 Prentice Hall, Inc.14-51
Common Grievances
Absenteeism Insubordination Overtime Plant rules
© 2003 Prentice Hall, Inc.14-52
Grievance Procedures
Representatives discuss complaint
If unsolved, 3rd party arbiter hears case
Grievance form
Most contracts contain specific grievance procedures
A simple one is 2 steps
© 2003 Prentice Hall, Inc.14-53
Do’s for Handling Grievances
Investigate each case Talk with the employee Union must identify specific provisions Comply with the time limits Visit the work area
© 2003 Prentice Hall, Inc.14-54
Do’s for Handling Grievances
Were there any witnesses? Examine personnel records Prior grievance records The union representative as an equal Private grievance discussions Fully inform your own supervisor
© 2003 Prentice Hall, Inc.14-55
Don’ts for Handling Grievances
Discuss the case Make arrangements with individual
employee Hold back the remedy Admit to past practices Relinquish your rights as a manager Settle grievances based on what is “fair”
© 2003 Prentice Hall, Inc.14-56
Don’ts for Handling Grievances
Bargain over items not covered Treat claims demanding the discipline or
discharge of managers Give long written answers Trade a settlement for a withdrawal Deny grievances because “your hands
have been tied by management” Agree to informal amendments
© 2003 Prentice Hall, Inc.14-57
Why Unions Are Declining?
Shift of workforce to white-collar jobs Permanent layoffs of millions of jobs
caused by relocating jobs elsewhere EEO laws enacted which offer many
rights previously negotiated
© 2003 Prentice Hall, Inc.14-58
HR.Net – Unions and the Internet
Unions e-mail announcements Reach supporters and government Web sites help in unionizing campaigns
© 2003 Prentice Hall, Inc.14-59
Employee Participation Programs
Preventing the perception of “sham unions” Involve employees Address issues like quality and productivity Not when unions are organizing Use volunteers and rotate frequently Do not dominate committees Minimize daily oversight
© 2003 Prentice Hall, Inc.14-60
Chapter 14 Summary
Major union milestone was creation of the AFL in 1886 by Samuel Gompers
Unions have been courting white-collar workers as blue-collar membership declines
Unions seek improved wages, working conditions, and security
We discussed the closed shop, union shop, agency shop, open shop, and maintenance of membership
© 2003 Prentice Hall, Inc.14-61
Chapter 14 Summary
The Norris-LaGuardia Act and the Wagner Act marked a shift in labor law from repression to strong encouragement of union activity
The Taft-Hartley Act reflected the period of modified encouragement coupled with regulation
Can you name some things the Taft-Hartley act enumerated?
© 2003 Prentice Hall, Inc.14-62
Chapter 14 Summary
The Landrum-Griffin Act reflected the period of detailed regulation of internal union affairs
Can you name the five steps in a union drive and election?
Can you list at least five surefire ways to lose an NLRB election?
Bargaining collectively in good faith is the next step if and when the union wins an election
© 2003 Prentice Hall, Inc.14-63
Chapter 14 Summary
How are bargaining items categorized? Third-party involvement—namely, arbitration,
fact-finding, or mediation—is one alternative when bargaining breaks down
Grievance handling has been called day-to-day collective bargaining
Most agreements contain a carefully worded grievance procedure ranging from two to six or more steps