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Redefining Union Prevention
Including an overview of theEmployee Free Choice Act (EFCA)
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Agenda Overview of EFCA NLRB Changes During Clinton Administration Why Companies Oppose Unions Company Employee Relations Strategy Why Employees Organize Managers and Supervisors Role in Maintaining Union Free
Status Do’s – Don’ts
Typical Unionization Process Early Warning Sign Union Authorization Cards Election Procedures Overview of Company Labor Audit
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What is a Union
A labor union is a group of employees that ban together to bargain collectively with their employer.
Unions just like companies are in business to make money.
Employees who are happy – who like their work and their supervisor – have no interest in a union.
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National Labor Relations BoardUnion Election StatisticsFiscal Year 2008
No. Union Elections 1,503 No. Won by Union 938 (62.4%) No. Lost by Union 565 (37.6%)
Total Employees Voting 104,382 Total Employees Unionized 61,950 Total Employees Remaining 42,432
Union Free
Overview of Employee Free Choice Act (EFCA)
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Employee Free Choice ACT (EFCA) is legislation to “Amend the
National Labor Relations Act”
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QUOTE“I support this bill because in order to restore a sense of shared prosperity and security, we need to help working Americans exercise their right to organize under a fair and free process and bargain for their fair share of the wealth our country creates.”
“The current process for organizing a workplace denies too many workers the ability to do so. The Employee Free Choice Act offers to make binding an alternative process under which a majority of employees can sign up to join a union. Currently, employers can choose to accept—but are not bound by law to accept—the signed decision of a majority of workers. That choice should be left up to workers and workers alone.”
Senator Barack Obama, 2007
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EFCA Can eliminate secret ballot elections NLRB can force union representation with
majority “card check” process Union can demand bargaining to begin after
certification If contract is not signed within 90 days union or
employer can request federal mediation Can lead to binding arbitration within 30 days
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EFCA cont. Damages of three times back pay for unlawfully
terminated employee EFCA would impose $20,000 penalty upon each
violation March 1, 2007 House of Representatives
passed the Act by vote of 241 to 185 March 30, 2007 Senate voted 51 – 48 to table
discussion. 60 votes are needed to re-address bill…stay tuned.
President Obama (co-sponsor) has promised to sign bill if passed.
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EFCASmall Business Exemption
Small businesses are excluded providing:$500,000 gross volume (1959)$3.3 million (based on inflation today)Must have minimum of 3 bargaining eligible
employees
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CURRENT NLRB Rules vs. EFCA
Current Union Authorization Cards
Secret Ballot Election within 42 days
NLRB Certified Election
If Union Wins: Both parties must bargain in
good faith
EFCA Union Authorization Cards
showing majority status
If Union Wins: Both parties must bargain in
good faith If no agreement in 90 days –
federal mediation If no agreement in 30 days of
mediation – binding arbitration for 2 year contract
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CURRENT NLRB Rules vs. EFCA
Current Re-instatement
EFCA Back pay plus 2X liquidated
penalties for improper termination
Civil penalties of up to $20,000 per violation
Improper Termination During Organization Process
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Section 8 Restrictions
Employers shall not Interfere with employees
engaging in concerted activity
Dominate or assist labor unions
Discriminate because of concerted activity
Retaliate for filing charge with the Board
Refuse to bargain collectively with Union
Unions shall not Restrain or coerce
employees engaged in concerted activity
Cause discrimination against employee b/c of union membership
Refuse to bargain collectively with Employer
Engage in unlawful strikes or boycotts or numerous other specified activities
Charge excessive or discriminatory fees
Engage in unlawful picketing
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Clinton Administration’s Impact on Organized Labor Reduced time from petition to election from 50 to 42
days
AFL-CIO loan of $10 MM to Teamsters strike fund
AFL-CIO devoted 34% of budget to organizing (3% previous)
AFL-CIO re-opened Organizing Institute and tripled in size
Linda Chavez-Thompson first female minority executive
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Clinton Administration’s Impact on Organized Labor Continue to offer 100% backing to Edward Kennedy
Union elections increased 12% with union winning 50.3%
Hiring and training new organizers at record rate and targeting women and minorities
College students recruited for summer organizing
Created long-term organizing strategies involving southern and midwestern United States
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Clinton Administration’s Impact on Organized Labor Increased visibility of local organizing efforts by
aligning with churches, religious and Civil Rights organizations
Increased lobbying efforts for more liberal changes in labor laws that support organizing efforts
Established corporate campaign strategies
Improved awareness through more effective use of Internet and web pages
Expanded use of celebrities
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New Organizing Tactics
Blitz Campaigns
Women organizers
Student organizers
Church support
Religious overtones
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Union Membership as a Percentage of the U.S. Civilian Workforce
36%
32.50%30.10%
22.00% 22%
16.10%13.50%
12.00%
0%5%
10%15%20%25%30%35%40%
Pe
rce
nta
ge
of
Un
ion
ize
d L
ab
or
Fo
rce
1945 1950 1960 1970 1980 1990 2000 2006
Year
Source: U.S. Department of Labor, Bureau of Labor Statistics, 2007.
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Union Membership by Industry
1.40%
2.30%
5.00%
10.90%
11.70%
13.00%
13.50%
17.60%
22.00%
28.20%
36.20%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Financial, Insuranace
Agriculture
Wholesale/Retail Trade
Mining
Manufacturing
Communications
Educational Services
Construction
Transportation
Utilities
Government
Ind
ust
ry
Union Members as Percentage of Total Workers in Industry
Source: U.S. Department of Labor, Bureau of Labor Statistics, 2007.
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Why Companies Oppose UnionsAccording to Economists Richard K. Vedder and Lowell E. Galloway
Economic cost of unions from 1947-2000 exceeds $50 trillion of lost income and output
States with a 10% unionized workforce can expect 0.7% increase in unemployment rate
Average UAW worker earns over $81.00 per hour in salary/ benefits with retiree health care. In 2000 economists predicted plan would begin bankruptcy auto industry by 2009.
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Why Companies Oppose Unions
Disruptions caused by strikes Labor contract provisions may put employer in a
uncompetitive situation Unions often create divisiveness between
employer and its employees – “us versus them” Employer loses the right to deal with employees
individually Increased expense and difficulty in administering
work rules, etc.
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Companies Disadvantages of Unionization Negative effect on Quality and Service Lack of managerial flexibility Management time wasted Divided loyalty between company and union employees Higher operating cost Dealing with job actions
Strikes
Sick outs
Slow downs
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Companies Disadvantages of Unionization Unions have employees file numerous and
erroneous charges
OSHA
EEO/State Human Rights Commission
Department of Labor
State Insurance Health Agencies
Increase in Workers Compensation claims
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Company Labor Relations Strategy
….Company Statement re: Unions
We want to maintain a positive ongoing relationship among all our employees.
We will respect our employees and maintain candid and honest communications concerning the business and the impact to our employees.
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Implementing An Effective Union Avoidance Strategy Example of company policy on unions:
The reason our employees haven’t wanted a union is simple. Over the past years we have consistently provided steady employment, safe working conditions, fair treatment and promotional opportunities as well as wages and benefits which are competitive in our industry and we are committed to maintaining these high employment standards for the future.
In addition, every employee is treated as an individual and respected as an important member of our team. This means you can speak directly with your supervisor or any other member of the management team and we can work directly with you without interference from a union. We want you to share your ideas and concerns with us because we believe that our growth is a direct product of our team efforts and contributions. A union can add nothing to our team nor can they get anything more than the company is willing to provide. We believe unions create artificial walls that hamper your individual success and the team success of this facility. We firmly believe that union is not necessary!
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Why Employees Organize
Favoritism Lack of Appreciation Concerns about Job Security Lack of Communication
Not feeling “in on things” Money is usually not a primary motivator
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Why Employees Organize
Working Environment• Inadequate staffing• Mandatory overtime• Poor working conditions
DESIRABILITY OFUNIONIZATION
Compensation• Non-competitive pay• Inadequate benefits• Inequitable pay raises
Management Style•Arbitrary management decision making•Use of fear and intimidation•Lack of recognition
Employee Treatment•Job insecurity•Unfair discipline and policies•Lack of response to complaints•Harassment & abusive treatment
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Maintain a Pro-Employee Environment
EVERYONE:
L.O.Y.A.L.
L = ListensO = Observes
Y = Doesn’t Yell
A = Advocates
L = Learns
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Front-line leaders role in preventative labor
The key to maintaining a union free status is being a dedicated and positive leader
It cannot be repeated enough that in the eyes of the employee, the supervisor/ manager is the employer.
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Traits of a good leader
AccurateAccurate when explaining policy, procedures
and providing feedback.One wrong word or forgotten sentence can
change the entire meaning of what was said.
KnowledgeableUnderstanding policies and procedures before
trying to interpret them for employees.
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Traits of a good leader cont… Clear
Uses words and terms that are sure to be understood by employees.
Impartial, does not take sides
Ask questionsGet employees to ask questions Doesn’t take it for granted that everyone
understands the point simply because no one asks any questions or everyone says they understand
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Traits of a good leader cont… Careful
Conscious of their facial expressions, gestures, posture and tone of voice
Rewards initiativeGives credit where credit is due If you take credit for an employee’s idea or
suggestion, you can be sure that employee will never suggest anything again
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Traits of a good leader cont… Acts with integrity
24-7Once lost/may not return
Most important executive traitFortune article
Guard it
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Communication is critical
A good leader has learned to listen…
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Best Ways to Remain Union FreeMake the Union Unnecessary
Maintain consistency Share timely and factual updates
Formally and Informally Be proactive Know and uniformly apply rules
Weigh cost/benefit and be able to justify any deviation from rule
Beware of the application of rules not previously applied in practice
Review disciplinary actions
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Best Ways to Remain Union FreeMake the Union Unnecessary
Avoid employee perceptions of unfairness or favoritism
Show greater appreciation for employees Feedback is critical – give praise along with
suggestions for improvement when needed
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Best Ways to Remain Union FreeMake the Union Unnecessary
Show employees they do not need a third party coming into the facility to ensure fair treatment and consideration As long as employees are treated fairly, there is no
need for a union Without a union, problems can be resolved
individually and there is more personal contact between employees and management
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Recognizing Unexplained Change
Before a Company can react to the attempted unionization of its employees, it must be aware of it’s existence
The Key: BE AWARE
Communicate “change” timely and accurately
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Typical Unionization Process
Organizing Campaign
Authorization Cards
Contract Negotiation(Collective Bargaining)
Certification
Representation Election
ORGANIZING CAMPAIGN
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Recognizing Early Warning Signs Good performers begin slipping Argumentative questions in front of employee
groups and supervisors Group complaints and petitions start to appear A “new” leader starts to appear Employees appear to be divided into two groups Increase in employee turnover An increase in union terms such as:
Seniority Grievance Bumping Security More questions regarding wage administration,
benefits and policies
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Recognizing Early Warning Signs Unwanted postings
Articles on unions
Strangers begin appearing in parking lots, entrances Union literature begins to appear Applicants who are over qualified Employees stop talking to supervisors Supervisors “grapevine” goes dead More group discussions/Employees get quiet when a
member of management comes up Employees start questioning supervisory authority
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Recognizing Early Warning Signs
More time spent in break rooms, restrooms and parking lot
More and more employees at local “watering holes” Former employees begin showing up at the facility
or hanging out Employees normally not seen together forming
groups Nature and frequency of employee complaints Anti-company graffiti Any other event out of the ordinary
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REMEMBER,
EARLY SIGNS ARE
USUALLY THE TIP
OF THE ICEBERG
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New Organizing Approaches
Blitz campaignsLarge amount of organizers
Weekend organizing
100% home visits from Friday – Monday
Specific union not identified No cards at work No visible organizing during initial card signing 70% cards signed prior to petition Utilize churches Personal attacks on management
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Importance of Front-line Supervisors and Local Management The front-line supervisor is the most
important factor influencing employee decisions in any attempt by a union to organize employees
The front-line supervisor has the most daily contact with employees
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Importance of Front-line Supervisors and Local Management
The front-line supervisor has the best opportunity to communicate management’s point of view – “eyeball-to- eyeball”
The front-line supervisor represents the “eyes and ears” of management
Simply put…to the Employee, the front- line supervisor is the “Company”
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Importance of Communicating with Employees
Communication is key: supervisors must give employees the opportunity to ask questions and create an atmosphere in which they are not afraid to ask questions Participate in two-way communications
Supervisors must listen to employees and inform management about any inkling of union activity
Recognize there are problems in every group of employees
Role of Supervisor
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Importance of Communicating with Employees
Bring problems to the attention of top management for resolution
Solve problems either by explaining the policy or taking steps to correct the situation
Seek to learn what the employees think of the company Sell company benefits Know employee’s background and relationships Discipline consistently Avoid favoritisms in scheduling, assignments, overtime,
etc. Supervise people – not a file
Role of Supervisor
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What Supervisors Can Do and Say
TAKE ACTION Silence is not golden
Silence implies support/lack of opposition Supervisors have the right to speak out
about unions.
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“What can I share (Do)???”
F.O.R.E.
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FACTS
Communicate facts and correct any false or inaccurate statements made by the union Example:
Cost of union dues and assessments Strike replacements
Discuss the unions false promise
Don’t guess at answers to a question
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OPINIONS
Supervisors should express their opinions about the union However, they should not threaten, nor promise
employees any benefits. Supervisors can and must tell employees why a
union is unnecessary at the company.
“…In my opinion, unions are out to protect their own interest before the interest of the employees.”
…”and here are some examples”
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RULES
Establish clear lines and limits of tolerance Clearly communicate work rules to
employees Administer discipline uniformly and avoid
making “exceptions” for anyone Follow the employee handbook and insure
it is being followed by your employees
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EXPERIENCES
Share your experiences, co-workers, and others personal experiences regarding unions.
Give personal and real work examples to employees about the many disadvantages of a union.
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What Supervisors Cannot Do and SayFor supervisors and managers, these “don’ts” are
largely common sense rules and can be remembered by the acronym…
S.P.I.T.
Don’t make any statement if there is any doubt in your mind as to their correctness or interpretation.
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SPY
Supervisors cannot:Ask employees if they have signed cards or
attended meetingsGive the impression that they are observing
the employees union activity Don’t take notes if you see employees meeting in
groupsTell employees that co-workers are informing
you about union activity
“I heard you said a lot at the Union meeting last night.”
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PROMISE
Supervisors cannot: Promise increased wages, promotions, or benefits to
obtain support for the employer Do not speculate over what ‘could’ happen or
‘what you think was meant’ by something sent out by the company
Do not negotiate with employees
“If you vote against the union, I’ll see to it that you get a promotion.”
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INTERROGATE Supervisors cannot:
Ask employees what they think about the union Ask employees if they have signed a union
authorization card Ask employees how they intend to vote Call employees individually or in small groups into
offices or private areas to talk about the union
“Who is going to the Union meeting tonight?”
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THREATEN Supervisors cannot:
Threaten loss of job or reduction of income or benefits if union wins
Say there will be a strike if the union winsThreaten that the operation will be moved or
shut down if the union wins
“I’ll see to it that you’ll never get another promotion or wage increase.”
Union Authorization Cards
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Union Authorization Cards
May file petition for election with 30% signed cards May demand recognition with more than 50% With more than 50% cards signed and an Unfair
Labor Practice, company may be forced to bargain in good faith without election
With more than 50% cards signed and union loses election if company has committed Unfair Labor Practice, the company may be forced to bargain in good faith
Representation Election
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Representation Election
NLRB orders within 42 days of petition Agreement of eligible voting employees Secret ballot Monitored by NLRB representative Simple majority wins Election certification
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Most Important Aspect of Contract Negotiation The need for a Management’s Rights Clause
Termination
Layoffs
Hiring practices
Transfers
Suspensions
Discipline
Size of workforce
Work schedule
Safety rules
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Overview of HR Labor Audit(Full Audit with Book) On-going training of managers/supervisors
No longer wait until signs of activity Unions will have
Your company information Wage data Employee’s home address Manager’s names
Card signing has already began Section on why companies oppose unions
Employer impact Front-line supervisor impact Sample company policy on unions
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Overview of HR Labor Audit
Overview of National Labor Relations Act (NLRA)Relevant NLRB procedures with elections
Filing election petition Processing petition
Voting eligibility Election day Certification
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Union Authorization Cards
30% required for election Assume they have 70%
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Overview of Management’s Response to Activity Identify internal organizers Identify external organizers Identify problem department/shifts Develop employee profile=1, 2 or 3 (red light,
yellow light, green light) Identify union/local/city Identify issues Identify supervisor training needs Contact legal support team
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Handling demand for recognition prompt and unconditional rejection Review legal issues
Best ways to remain union free
Common early warning signs
Supervisor’s Do’s/Don’tsSP IT
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Avenues of company communicationSmall groupsHandoutsVideosPostersOne-on-one conversations
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Management response to union propagandaDuesStrikesNegotiationsCurrent wage/benefit statusCompany philosophyUnion fines/assessments
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Audit discipline procedures
The only way to guarantee a company victory in a union election is
NOT TO HAVE AN
ELECTION
THANK YOU
