© 2003 prentice hall, inc. 14-1 chapter 14 labor relations and collective bargaining

© 2003 Prentice Hall, Inc.14-1

Chapter 14

Labor Relations and Collective Bargaining


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


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


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


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


Chapter 14 Outline

The collective bargaining process What is collective bargaining? What is good faith? The negotiating team Bargaining items Bargaining stages Bargaining hints


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


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


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


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


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?


Union History

1790 Samuel Gompers formed the

American Federation of Labor - AFL

Decline and growth


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


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


What Do Unions Want?

Security Closed shop Union shop Agency shop Open shop Maintenance of membership arrangement

Improved wages, hours, and benefits


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


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)


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


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


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


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%


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


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


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


Union Drive and Election

5 Steps to recognition and representation

Initial Contact

Obtain Authorization Cards

Hold Hearing

The Campaign

The Election


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


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


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?


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


Step 5. The Election

Election held 30-60 Days after NLRB issues decision

Secret ballot Union wins if they get

majority of votes cast


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


Appointing a Committee

36% of losing companies appointed committees to handle the election

Promptness is essential Most members are NLRB neophytes Committees usually compromise


The Supervisor’s Role

First line of defense Sensitive to evolving employee attitude

problems Treat employees fairly and honestly Supervisors must know possible

consequences


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


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


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


What is collective bargaining?

Collective bargaining The process through which representatives of management and the union meet to negotiate a labor agreement.

Definition

Definition


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


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


Bargaining Items

Mandatory Voluntary or permissible Illegal


Bargaining Items (Cont.)


Bargaining Stages


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


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


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


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


Minimizing Strike Confusion

Pay Secure Notify Contact Arrange Notify Photograph Record Gather


Alternatives

Corporate campaign Boycott Inside games Lockout Injunction


The Contract Agreement

May be 20-30 pages or more Covers general declarations of

policy Often contains detailed rules


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


Common Grievances

Absenteeism Insubordination Overtime Plant rules


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


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


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


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”


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


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


HR.Net – Unions and the Internet

Unions e-mail announcements Reach supporters and government Web sites help in unionizing campaigns


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


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


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?


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


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

© 2003 prentice hall, inc. 14-1 chapter 14 labor relations and collective bargaining

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