Examples of Workplace Rules

Copyright 2000 - South-Western College Publishing Module 6 - 1

Examples of Workplace Rules• How much to be paid?• How much of an increase?• What will be the criteria for increases?• When will increase be given?• Any fringe benefits associated with the job?• What will be the criteria for promotion?• What will be the criteria for layoffs, if necessary?• Who will be trained?• Who will be disciplined?• How will discipline occur?• What hours will be worked?• Who will work what shift? For how long?• Who is assigned what work?• Pay for part-time workers.• Procedure for moving from part-time to full-time.


How are the rules made?

• Individual Bargaining

• Employer Unilateral Determination

• Collective Bargaining– With a union\labor organization as

representative of employees– Usually done pursuant to legal procedures


Forms of Rules• Unarticulated - ad hoc (created as needed)• Oral statements of intent• Written statements of intent• Oral policies• Written polices • Oral contracts • Written contracts

– individual bargaining– collective bargaining


Procedures for Modifying Rules• Modified at will of employer

– Unarticulated - ad hoc (created as needed)– Oral statements of intent– Written statements of intent– Oral policies– Written policies– Oral contracts?

• Modified only with agreement of both parties or at an agreed-upon date– Written contracts– Collective agreements


Collective Bargaining and Governance

• Focuses on how decisions are made– Unilaterally - no CB – Jointly - CB

• Permits workers to participate in decisions affecting them

• Transference of notions of democracy to the workplace– property rights only provide authority over property– does not necessarily provide authority over people


Actions Associated with Employee Dissatisfaction

• Traditional View - Exit– When workers are dissatisfied they leave the

firm– Quit

• Governance View - Voice– When Workers are dissatisfied they attempt to

change terms and conditions of employment in the firm

– Negotiate


Democracy Rationale for Unionism

• Workplace is analogous to society

• Cannot have democracy in society without democracy in the workplace


Economic View of Collective Bargaining

• Unions a disruption to competitive markets

• Unions cause a misallocation of resources


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Union Characteristics

• Unions are democratic organizations– corporations generally hierarchical– union leadership directly and fairly

immediately answerable to membership

• Administered by – elected officials– staff appointed by elected officials


Constraints on Union Strategy

• Minimal options for provision of services/representation (can’t get out of “business of representing workers)– collective bargaining

– organizing

– political action

• Unions have an institutionalized adversary in firms that question existence of unions– a firm will exist without a union

– a union cannot perform main function without employers


Internal Structure of Labor Movement in U.S.

• AFL-CIO– Federation of unions– Does not bargain with employers– Supports efforts of affiliates

• (Inter)national Union– Main component of U.S. Labor Movement– Constitution

• defines officers, how elected, authority, terms of office, full-time/part-time status, etc.

– Examples: UAW, Teamsters, etc.– Regular activities financed by dues revenue


Structure (cont.)

• Local Union– Chartered by international union– Charter and int’l constitution determine

jurisdiction and autonomy• jurisdiction - the occupational or industrial group of

workers that the union may (attempt to) represent

– Wide variation in size, complexity, etc.• one-plant locals (typical UAW structure)• locals that cover employees all over a geographic area


Structure (cont.)

• Intermediate Bodies– Services to locals from international

• UAW Regions

• UPIU Regions

– Coordinate activities among locals with common interests

• e.g., Corporate Councils in UAW

– Internal governance• UAW Regions


HRM and Collective Bargaining Views of Employment

• HRM– EMPLOYMENT IS

FOR BENEFIT OF ORGANIZATION

– RULES ARE EMPLOYER DETERMINED

– CONGRUENCE IS ENCOURAGED, CONFLICT AVOIDED

• CB– EMPLOYMENT IS FOR

BENEFIT OF ORGANIZATION AND EMPLOYEE

– RULES ARE NEGOTIATED

– CONGRUENCE AND DIVERGENCE OF INTERESTS EXIST TOGETHER

• MANAGE CONFLICT


Business Strategy and Industrial Relations

• TWO DISTINCT PERIODS– 1930’s - 1970’s– Since 1970’s


Three Post-1970’s Employer Strategies

• DEUNIONIZATION– CONFLICT– INVESTMENT

• TRADITIONAL ADVERSARIALISM

• COOPERATION


Deunionization - Conflict• Use of legal right to bargain without concessions

• Union Options– accept an “unacceptable” contract– strike and risk replacement

• ER may permanently replace strikers

• Claim “good faith doubt” about union’s majority status

• “Pyramiding” of legal rights by employer


Deunionization-ConflictExamples

• Module– Phelps Dodge

• Other Examples– Detroit Newspapers– Greyhound– Continental Airlines (mid ‘80’s)– Caterpillar?


Different Bargaining and Contract Administration Models

• Adversarial: Positional Bargaining– Each side provides position to other party– Listens – Modifies position based on rationale and bargaining

power

• Cooperative– Parties define problems and interests– Parties discuss problems and interests– Parties develop recommendations for possible solutions– Parties determine solutions


Traditional Adversarialism/Coexistence

• Examples– Trucking Industry

• United Parcel Service (module)

– Aerospace– Airlines


Examples of Cooperative Relationships

• Philip Morris and BCTW Local 13

• National Steel and United Steelworkers of America

• Ford and UAW

• Philip Morris (Trenton, Ohio) and UAW


Cooperation

• Creation of non-adversarial structures for communication

• Reduce labor costs by reducing the costs of adversarialism

• Permits firm to better exploit knowledge of workers

• Focus on common, rather than conflicting, interests


Examples of Cooperative Relationships

• Ford (module)

• Xerox


Fundamental Question

• Does Management challenge the institutional legitimacy/status of the union?– No

• Cooperation

• Institutionalized Adversarialism

– Yes• Deunionization


Basic Legal Framework• National Labor Relations Act

• Employee Choice to chose to be represented• Some Exclusions

– Some Employers• Railway Labor Act

– Some Employees

– Independent Contractors


Basic Legal Framework (cont.)• Representation by “Bargaining Unit”

– Majority Rule– Exclusive Representation - only one

representative

• Unfair Labor Practices– Employer may not discriminate against

employee for union activity– Employer must bargain for union representing

employees


Basic Legal Framework (cont.)

• Bargaining– Limited to terms and conditions of employment

in U.S.– Broader in Canada

• Use of Economic Weapons to Determine Outcomes

Documents

Examples of Workplace Rules