• Labor RelationsLabor Relations The relationship between an employer and unionized The relationship between an employer and unionized

employees.employees. Also referred to as union–management relations or Also referred to as union–management relations or

industrial relationsindustrial relations Refers to the system in which employers, workers Refers to the system in which employers, workers

and their representatives and, directly or indirectly, and their representatives and, directly or indirectly, the government interact to set the ground rules for the the government interact to set the ground rules for the governance of work relationships.governance of work relationships.

Labor UnionLabor Union

An organization of workers banded together to An organization of workers banded together to achieve economic goals.achieve economic goals.

Types of UnionsTypes of Unions

• Craft UnionsCraft Unions Workers in a specific skill, Workers in a specific skill,

craft, or trade.craft, or trade.

• Industrial UnionsIndustrial Unions Unions composed of all the Unions composed of all the

workers in an industry.workers in an industry.

• Employee AssociationsEmployee Associations Organizations that function Organizations that function

as labor unions.as labor unions.

Unions and Right-to-WorkUnions and Right-to-Work

• Closed ShopClosed Shop All prospective employees must be members of the recognized All prospective employees must be members of the recognized

union before they can be employed.union before they can be employed.

• Union ShopUnion Shop All employees must join the union within a specified period or be All employees must join the union within a specified period or be

fired.fired.

• Agency ShopAgency Shop All employees must pay union dues even if they choose not to All employees must pay union dues even if they choose not to

join the union.join the union.

• Maintenance-of-Membership ClauseMaintenance-of-Membership Clause An employee who has joined the union must maintain that An employee who has joined the union must maintain that

membership as a condition of employment.membership as a condition of employment.

Administration of Labor LawsAdministration of Labor Laws

• National Labor Relation Board (NLRB)National Labor Relation Board (NLRB) The five-person NLRB has the power to enforce the The five-person NLRB has the power to enforce the

basic labor laws.basic labor laws. Basic functions are:Basic functions are:

To hold an election to establish the bargaining agent for To hold an election to establish the bargaining agent for employees of a given firm.employees of a given firm.

To certify unions as the exclusive bargaining agent for To certify unions as the exclusive bargaining agent for employees.employees.

To investigate charges of unfair labor practices against the To investigate charges of unfair labor practices against the employer or the union.employer or the union.

To see that unfair labor practices either are not committed or To see that unfair labor practices either are not committed or are punished.are punished.

Rights of Employees

• To organize.

• To bargain collectively.

• To expect no discrimination against them by management because they are union members.

• To expect no discrimination against them by management if they bring charges of unfair labor practices against the employer.

• To get a job without first being a member of a union.

• Not to have to join a union unless the union and the employer have signed a valid union-shop agreement in one of the states that do not have right-to-work laws.

• Not to be charged exorbitant initiation fees and dues by a union with a valid union-shop agreement.

• To receive financial reports from the union.

Unfair Labor Practices of Unions

• To coerce employees into or restrain them from engaging in union activities.

• To force management to discriminate against employees in violation of the law.

• To refuse to bargain in good faith.

• To require managers to pay money for work not done.

• To engage in a strike or boycott to force management to commit illegal acts.

• To charge excessive initiation fees and dues where there is a union shop.

Unfair Labor Practices of Employers

• To interfere with, restrain, or coerce employees who are exercising their rights under the law.

• To dominate or interfere with the forming or administering of unions, or to contribute support to them.

• To discriminate in hiring or in any other terms of employment in such a way as to encourage or discourage membership in a union.

• To discharge or otherwise discriminate against employees for filing charges against the employer or testifying under the law.

• To refuse to bargain with the union representative.

Union Principles and ObjectivesUnion Principles and Objectives

• Union PrinciplesUnion Principles Strength through unity (solidarity)Strength through unity (solidarity) Equal pay for the same jobEqual pay for the same job Employment practices based on seniorityEmployment practices based on seniority

• Union ObjectivesUnion Objectives Higher payHigher pay Shorter working hours (daily, weekly, or annual basis)Shorter working hours (daily, weekly, or annual basis) Improved working conditions, both physical and Improved working conditions, both physical and

psychologicalpsychological Improved security for both the person and the jobImproved security for both the person and the job

Union Methods to Achieve Union Union Methods to Achieve Union ObjectivesObjectives• To organize a firm’s employees.To organize a firm’s employees.• To become recognized as the employees’ To become recognized as the employees’

exclusive bargaining agent.exclusive bargaining agent.• To engage in collective bargaining.To engage in collective bargaining.• To go on strike or threaten to strike.To go on strike or threaten to strike.• To process grievances.To process grievances.

Union Appeals to Employees’ DesiresUnion Appeals to Employees’ Desires

• Union organizers appeal to five main desires of Union organizers appeal to five main desires of employees:employees:

Job protectionJob protection

Interference runningInterference running

Participation in managementParticipation in management

Economic gainsEconomic gains

Recognition and participationRecognition and participation

Collective BargainingCollective Bargaining

• Collective BargainingCollective Bargaining The process by which representatives of the The process by which representatives of the

employer and the employees meet at reasonable employer and the employees meet at reasonable times and places to confer in good faith over wages, times and places to confer in good faith over wages, hours, and other terms and conditions of employment.hours, and other terms and conditions of employment.

• Alternatives to a Bargaining ImpasseAlternatives to a Bargaining Impasse Call in an outside mediator who will bring the parties Call in an outside mediator who will bring the parties

together and try to help them reach an agreement.together and try to help them reach an agreement. Agree to bring the issue to an outside arbitrator, who Agree to bring the issue to an outside arbitrator, who

will make a decision binding on both parties.will make a decision binding on both parties. For the union to go on strike or for management to For the union to go on strike or for management to

stage a lockout.stage a lockout.

Conducting a Strike or LockoutConducting a Strike or Lockout

• StrikeStrike When employees withhold their When employees withhold their

services from an employer.services from an employer.

• PicketingPicketing Striking employees walking back Striking employees walking back

and forth outside the place of and forth outside the place of employment, usually carrying a employment, usually carrying a sign.sign.

• LockoutLockout A closing of a company’s A closing of a company’s

premises to the employees and premises to the employees and refusing to let them work.refusing to let them work.

Reaching an AgreementReaching an Agreement

• Agreement or ContractAgreement or Contract A document prepared A document prepared

when an accord has been when an accord has been reached to bind the reached to bind the company, union, and company, union, and workers to specific workers to specific clauses in it.clauses in it.

Typical Agreement ClausesTypical Agreement Clauses1.1. Union recognitionUnion recognition

2.2. WagesWages

3.3. Vacation and holidaysVacation and holidays

4.4. Working conditionsWorking conditions

5.5. Layoffs and rehiringLayoffs and rehiring

6.6. Management prerogativesManagement prerogatives

7.7. Hours of workHours of work

8.8. SenioritySeniority

9.9. ArbitrationArbitration

10.10. Renewal clauseRenewal clause

Living with the AgreementLiving with the Agreement

• Supervisors’ Rights under the AgreementSupervisors’ Rights under the Agreement

1.1. To decide what work is to be done.To decide what work is to be done.

2.2. To decide how, when, and where it will be done.To decide how, when, and where it will be done.

3.3. To determine how many workers are needed to do the work safely.To determine how many workers are needed to do the work safely.

4.4. To decide who will do each job, as long as the skill classifications and To decide who will do each job, as long as the skill classifications and seniority provisions are observed.seniority provisions are observed.

5.5. To instruct, supervise, correct, and commend employees in the To instruct, supervise, correct, and commend employees in the performance of their work.performance of their work.

6.6. To require that work performance and on-the-job personal behavior To require that work performance and on-the-job personal behavior meet minimum standards.meet minimum standards.

7.7. To recommend promotions and pay increases, as long as they do not To recommend promotions and pay increases, as long as they do not violate the union agreement.violate the union agreement.

8.8. To administer discipline according to the agreed-upon procedure.To administer discipline according to the agreed-upon procedure.

Types of Legally Required BenefitsTypes of Legally Required Benefits

• Social Security and MedicareSocial Security and Medicare Retirement benefitsRetirement benefits Disability and survivorsDisability and survivors

• Workers’ CompensationWorkers’ Compensation On-the-job injury insuranceOn-the-job injury insurance

• Unemployment InsuranceUnemployment Insurance Benefits and compensationBenefits and compensation

• Family and Medical LeaveFamily and Medical Leave Up to 12 weeks unpaid leaveUp to 12 weeks unpaid leave Continued health care benefits and return to workContinued health care benefits and return to work