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14-1McGraw-Hill/Irwin Copyright 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved.

fundamentals of

Human Resource Management 4theditionby R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright

CHAPTER 14

Collective Bargaining and Labor

Relations

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What Do I Need to Know?

1. Define unions and labor relations and their

role in organizations.

2. Identify the labor relations goals of

management, labor unions, and society.

3. Summarize laws and regulations that affect

labor relations.

4. Describe the union organizing process.

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What Do I Need to Know? (continued)

5. Explain how management and unions

negotiate contracts.

6. Summarize the practice of contract

administration.

7. Describe more cooperative approaches to

labor-management relations.

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Role of Unions

In the U.S., most workers act as individuals toselect jobs that are acceptable to them and tonegotiate pay, benefits, flexible hours, and

other work conditions. At times, workers have believed their needs

and interests do not receive enoughconsideration from management.

One response by workers is to act collectivelyby forming and joining labor unions.

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Unions and Labor Relations

Unionsorganizations

formed for the purpose

of representing their

members interests indealing with employers.

Labor relationsfield

that emphasizes skills

managers and union

leaders can use tominimize costly forms of

conflict (such as strikes)

and seek win-win

solutions todisagreements.

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Labor relations involves three levels of

decisions:

1. Labor relations strategy

2. Negotiating contracts

3. Administering contracts

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National and International Unions

Most Union members belong to a nationalorinternationalunion. These unions may be: Craft unions: labor unions whose members all

have a particular skill or occupation.

Industrial unions:labor unions whose membersare linked by their work in a particular industry.

Most national unions are affiliated with theAmerican Federation of Labor and Congressof Industrial Organizations (AFL-CIO).

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Figure 14.1: 10 Largest Unions in the

United States

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Figure 14.2: Union Membership Density amongU.S. Wage and Salary Workers, 1973-2009

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The decline in union membership has

been attributed to:

Change in the structure of the

economy

Management efforts to controlcosts

Human resource practices

Government regulation

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Figure 14.3: Union Membership Rates and

Coverage in Selected Countries

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Many Union Workers HoldGovernment Jobs

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Impact of Unions on Company

Performance

Harley-Davidson and the

International Association of

Machinists and Aerospace

Workers have cooperated to

produce good results.

In general, though,

companies wishing to

become more competitive

need to continually monitortheir labor relations

strategies.

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Goals of Management

Management goals are to increase theorganizations profits. Managers tend to preferoptions that lower costs and raise output.

When an employer has recognized a union,managements goals continue to emphasize

restraining costs and improving output.

Managers prefer to keep their organizationsoperations flexible.

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Goals of Management (continued)

In their labor relations, managers prefer to:

Limit increases in wages and benefits, and

Retain as much control as they can over work

rules and schedules.

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Goals of Labor Unions

Labor unions have the goals of obtaining pay

and working conditions that satisfy their

members and of giving members a voice in

decisions that affect them.

They obtain these goals by gaining power in

numbers.

Unions want to influence the waypay and

promotions are determined.

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Goals of Labor Unions (continued)

The survival and security of a union depend

on its ability to ensure a regular flow of new

members and member dues to support the

services it provides.

Unions place high priority on negotiating two

types of contract provisions that are critical to

a unions security and viability:

Checkoff provisions

Union membership or contribution provisions

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Goals of Labor Unions (continued)

Checkoff Provision

Contract provision

under which the

employer, on behalf ofthe union,

automatically deducts

union dues from the

employees paychecks.

Membership Security

Closed shop

Union shop

Agency shop

Maintenance of

membership

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Goals of Society

The activities of unions and management take

place within the context of society.

Societys values drive the laws and regulations

that affect labor unions.

Societys goal for unions is to ensure that

workers have a voice in how they are treated

by their employers.

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Laws Affecting Labor Relations

National Labor Relations Act

(NLRA) of 1935

Taft-Hartley Act of 1947

Landrum-Griffin Act of 1959

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Laws Affecting Labor Relations (continued)

Right-to-work laws:

state laws that make

union shops,

maintenance ofmembership, and

agency shops illegal.

National Labor

Relations Board

(NLRB):Federal

government agencythat enforces the NLRA

by conducting and

certifying

representationelections and

investigating unfair

labor practices.

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Figure 14.4:

States with Right-to-Work Laws

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Test Your Knowledge

True (A) or False (B)

1. The NLRA established unfair labor practices on the partof the union.

2. The NLRB determines which states are Right-to-Work3. In Right-to-Work states, employees do not have to

become members of the union

4. In states without Right-to-Work laws unions can refuse

to hire non-union members.5. Protection from union misconduct was established by

the Landrum-Griffin Act.

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The Process of Organizing

Signing authorization cards

Petition for election

Election campaign

Election and certification

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Signing Authorization Cards

A document indicating that an employee

wants to be represented by a labor

organization in collective bargaining

Is there sufficient interest on the part of

employees to justify the unit

Evidence of interest when at least 30 percent

of the employees in a work group sign an

authorization card

Usually need 50% to proceed

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Figure 14.5:

Example of an Authorization Card

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Petition for Election

After authorization cards have been signed, a

petition for election is made to the regional

NLRB office

NLRB will ordinarily direct that an election be

held within 30 days

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Election and Certification

NLRB monitors the secret-ballot election on

the set date

Board will issue a certification of the results to

the participants

Majority of the employees vote for union.

NLRB will certify.

Process does not require either party to make

concessions; it only compels them to bargain

in good faith

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Table 14.1: What Supervisors Should andShould Not Do to Discourage Unions

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Union Strategies

Organizers call or visit employees at home to

talk about issues like pay and job security.

Offer workers associate union membership.

Conduct corporate campaigns.

Negotiate employer neutralityand card-check

provisions into a contract.

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Union Decertification

Taft-Hartley Act made it possible for

employees to decertify a union

Essentially the reverse of the process that

employees must follow to be recognized as an

official bargaining unit

Employees have used decertification petitions

with increasing frequency and success

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Decertification Procedure

At least 30 percent must petition for election

Petition submitted 60-90 days prior to

expiration of current contract

Schedule decertification election

If majority votes against union, employees will

be union free

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Collective Bargaining

In collective bargaining a union negotiates onbehalf of its members with managementrepresentatives to arrive at a contract defining:

Recognition Management Rights

Union Security

Compensation and Benefits

Grievance Procedure

Employee Security

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Table 14.2: Typical Provisions in Collective

Bargaining Contracts

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Test Your Knowledge: Which of the Followingis an Unfair Labor Practice (ULP)?

1. Enforcing disciplinary policies only to those who have

expressed interest in a union

2. Showing employees articles about negative aspects of unions

that occurred elsewhere

3. Email employees asking them to respond with how they plan

to vote in the union election

4. Tell employees the disadvantages of having a union

5. Enforcing disciplinary policies when deserved to a pro-unionemployee

6. Promise employees an additional week of vacation if they

vote against the union

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Bargaining Over New Contracts

Distributive Bargaining

Integrative Bargaining

Attitudinal Bargaining

Intraorganizational Bargaining

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When Bargaining Breaks Down

Strikes

Strike: a collective

decision by union

members not to workuntil certain demands

or conditions are met.

Alternatives to Strikes

Mediation

Fact Finder

Arbitration

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Figure 14.6:

Strikes Involving 1,000 or More Workers

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Alternatives to Strikes

Mediation

Conflict resolution

procedure in

which a mediator

hears the views ofboth sides and

facilitates the

negotiation

process but has

no formalauthority to

dictate a

resolution.

Fact Finder

Third party to

collective

bargaining who

reports thereasons for a

dispute, the views

and arguments of

both sides, and

possibly arecommended

settlement, which

the parties may

decline.

Arbitration

Conflict resolution

procedure in

which an

arbitrator orarbitration board

determines a

binding

settlement.

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Contract Administration

Contract Administration

Includes carrying out

the terms of the

agreement andresolving conflicts over

interpretation or

violation of the

agreement.

Grievance Procedure

The process for

resolving union-

management conflictsover interpretation or

violation of a collective

bargaining agreement.

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Figure 14.7: Stepsin an Employee-Initiated GrievanceProcedure

b i

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Labor-Management Cooperation

Employee involvement in decision

making

Self-managing employee teams

Labor-management problem-solving

teams

Broadly defined jobs

Sharing of financial gains and business

information with employees

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Test Your Knowledge

True (A) or False (B)

1. Mediation requires each party to abide by themediators decision.

2. Clearly written contracts require less contractadministration time due to fewer disagreements overinterpretation.

3. Integrative bargaining involves a win-lose approachbecause the issues are considered a fixed pie.

4. A union steward represents the issues concerningunion employees and is elected by them.

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Summary

A union is an organization formed for the purpose ofrepresenting its members in resolving conflicts withemployers.

Labor relations is the management specialty

emphasizing skills that managers and union leaderscan use to minimize costly forms of conflict and toseek win-win solutions to disagreements.

Management goals are to increase the organizations

profits. Managers generally expect that unions willmake these goals harder to achieve.

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Summary (continued)

Labor unions have the goal of obtaining pay andworking conditions that satisfy their members. Theyobtain these results by gaining power in numbers.

Societys values have included the hope that the

existence of unions will replace conflict or violencebetween workers and employers with fruitfulnegotiation.

In contrast to the traditional view that labor and

management are adversaries, some organizationsand unions work more cooperatively.