The Dynamics of Labor Relations Managing Human Resources Bohlander • Snell 14 th edition Power. Point Presentation by Charlie Cook The University of West Alabama
Objectives After studying this chapter, you should be able to: 1. Identify and explain the principal federal laws that provide the framework for labor relations. 2. Explain the reasons employees join unions. 3. Describe the process by which unions organize employees and gain recognition as their bargaining agent. 4. Discuss the bargaining process and the bargaining goals and strategies of a union and an employer. 5. Differentiate the forms of bargaining power that a union and an employer may utilize to enforce their bargaining demands. © 2007 Thomson/South-Western. All rights reserved. 2
Objectives (cont’d) After studying this chapter, you should be able to: 6. Describe a typical union grievance procedure and explain the basis for arbitration awards. 7. Discuss some of the contemporary challenges to labor organizations. © 2007 Thomson/South-Western. All rights reserved. 3
Major Labor Laws • Railway Labor Act (RLA) of 1926 • Norris La. Guardia Act (Anti-Injunction Act) • Wagner Act (National labor Relations Act) of 1935 • Taft-Harley Act (Labor-Management Relations Act) of 1947 • Landrum-Griffin Act (Labor-Management Disclosure Act) of 1959 © 2007 Thomson/South-Western. All rights reserved. 4
Government Regulation of Labor Relations • The Railway Labor Act (RLA) of 1926 Ø Purpose of the act is to avoid service interruptions resulting from disputes between railroads and their operating unions. Ø National Mediation Board Ø National Railway Adjustment Board • The Norris-La. Guardia Act of 1932 Ø Restricts the ability of employers to obtain an injunction against unions for their lawful activities. © 2007 Thomson/South-Western. All rights reserved. 5
Government Regulation of Labor Relations • The Wagner Act (National Labor Relations Act) of 1935 Ø Protects employee rights to organize and bargain collectively through representatives of their choice. Ø Created the National Labor Relations Board (NLRB) to govern labor relations in the United States. Holds secret ballot union representation elections. v Prevents and remedies unfair labor practices. v © 2007 Thomson/South-Western. All rights reserved. 6
Wagner (NLRA) Act • Section 7 of the Act guarantees these rights: Ø To self-organization, to form, join, or assist labor organizations, to bargain collectively through freely chosen representatives. Ø To engage in concerted activities, for the purpose of collective bargaining or other mutual aid or protection. Ø To refrain from any or all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment. © 2007 Thomson/South-Western. All rights reserved. 7
Unfair Labor Practices (ULPs) • Section 8 of the Wagner Act outlawed employer practices that deny employees their rights and benefits: Ø Interference with Section 7 rights Ø Domination of a union (company union) Ø Discrimination against union members Ø Arbitrary discharge of union members Ø Refusal to bargain with the union © 2007 Thomson/South-Western. All rights reserved. 8
Amendments to the Wagner Act • The Taft-Hartley Act (The Labor-Management Relations Act) of 1947 Ø Balances the rights and duties of labor and management in the collective bargaining arena by defining unfair union practices. • The Landrum-Griffin Act (Labor-Management Reporting and Disclosure Act) of 1959 Ø Safeguards union member rights and prevents racketeering and other unscrupulous practices by employers and union officers. © 2007 Thomson/South-Western. All rights reserved. 9
Unfair Union Practices (Taft-Hartley Act) ØInterfering with Section 7 rights of employees ØInterfering with representation elections ØInfluencing employers to discriminate with regard to union membership ØRefusal to bargain collectively with employer ØInterference with certified employee representative’s relationship with employer ØAssessment of excessive initiation fees and dues on bargaining unit members Ø“Featherbedding” © 2007 Thomson/South-Western. All rights reserved. 10
Labor Relations Process 1. Workers desire collective representation 2. Union begins its organizing campaign 3. Collective negotiations lead to a contract 4. The contract is administered © 2007 Thomson/South-Western. All rights reserved. 11
Why Employees Unionize • As a result of economic needs (wages and benefits) • Dissatisfaction with managerial practices • To fulfill social and status needs. • Unionism is viewed as a way to achieve results they cannot achieve acting individually • To comply with union-shop provisions of the labor agreement in effect where they work © 2007 Thomson/South-Western. All rights reserved. 12
Figure 14– 1 The Labor Relations Process © 2007 Thomson/South-Western. All rights reserved. 13
Organizing Campaigns Steps in the Organizing Process © 2007 Thomson/South-Western. All rights reserved. Unio n/E mpl oyee Initia Cont l act Orga For nizat mati ional on Meet of In ing Elec tion Hou Petit se ion Com and mitt Voti ee ng Cont Prep ract arati Neg on otiat ions 14
Highlights in HRM 2 United Food and Commercial Workers International Union Authorization Card © 2007 Thomson/South-Western. All rights reserved. 15
Aggressive Organizing Tactics • Political Involvement • Union Salting • Organizer Training • Corporate Campaigns • Information Technology Union NOW!! © 2007 Thomson/South-Western. All rights reserved. 16
Employer Tactics Opposing Unionization • Stressing favorable employer-employee relationship experienced without a union. • Emphasize current advantages in wages, benefits, or working conditions the employees may enjoy • Emphasize unfavorable aspects of unionism: strikes, union dues, abuses of legal rights • Use statistics to show that unions commit large numbers of unfair labor practices. • Initiate legal action when union members and leaders engage in unfair labor practices © 2007 Thomson/South-Western. All rights reserved. 17
Highlights in HRM 3 Employer “Don’ts” during Union Organizing Campaigns • Attending union meetings, spying on employee-union gatherings, or questioning employees about the content of union meetings • Questioning present or current employees about their union sentiments, particularly about how they might vote in a union election • Threatening or terminating employees for their union support or beliefs • Changing the working conditions of employees because they actively work for the union or simply support its ideals • Supplying the names, addresses, and phone numbers of employees to union representatives or other employees sympathetic to the union • Promising employees improvements in working conditions (wage increases, benefit improvements, and so on) if they vote against the union • Accepting or reviewing union authorization cards or prounion petitions, because employees’ names are listed on these documents © 2007 Thomson/South-Western. All rights reserved. 18
How Employees Become Unionized • Bargaining Unit Ø A group of two or more employees who share common employment interests and conditions and may reasonably be grouped together for purposes of collective bargaining. • Exclusive Representation Ø The legal right and responsibility of the union to represent all bargaining unit members equally, regardless of whether employees join the union or not. © 2007 Thomson/South-Western. All rights reserved. 19
Highlights in HRM 4 NLRB Election Poster © 2007 Thomson/South-Western. All rights reserved. 20
Impact of Unionization on Managers • Challenges to Management Prerogatives Ø Management prerogatives versus union participation in decision-making in the work place. • Loss of Supervisory Authority Ø Constraints on management in directing and disciplining the work force by terms of the collective bargaining agreement. © 2007 Thomson/South-Western. All rights reserved. 21
Structures, Functions, and Leadership of Labor Unions • Craft unions Ø Unions that represent skilled craft workers • Industrial unions Ø Unions that represent all workers—skilled, semiskilled, unskilled—employed along industry lines • Employee associations Ø Labor organizations that represent various groups of professional and white-collar employees in labormanagement relations. © 2007 Thomson/South-Western. All rights reserved. 22
Structure of the AFL-CIO GENERAL BOARD Executive members and principal officer of each international union affiliate Meets upon call of federation president of executive council Standing committees Staff departments Local unions affiliated directly with AFL-CIO Affiliated national and international unions Affiliated state bodies Local unions of national and international unions Local bodies © 2007 Thomson/South-Western. All rights reserved. 23
Structure and Functions of the AFL-CIO • The “House of Labor” Ø Disseminates labor policy developed by leaders of affiliated unions. Ø Coordinates organizing activities among affiliated unions. Ø Provides research and other assistance through its various departments. Ø Lobbies before legislative bodies on labor subjects Ø Publicizes the concerns and benefits of unionization Ø Resolves disputes between different unions as they occur (preventing “raiding”) © 2007 Thomson/South-Western. All rights reserved. 24
Typical Organization of a Local Union Meeting (Normally Monthly) Business Representative President Secretary/Treasurer Vice-Presidents Sergeant at Arms Various Committee Chairpersons Training and Education Grievance Committee: Chief Steward and Shop Stewards Collective Bargaining Social Local Union Members © 2007 Thomson/South-Western. All rights reserved. 25
Structure and Functions of Local Unions • Local Officers Ø Elected officials who lead the union and serve on the bargaining committee for a new contract. • Union Steward Ø An employee, as a nonpaid union official, represents the interests of members in their relations with management. • Business Unionism Ø The term applied to the goals of U. S. labor organizations, which collectively bargain wages, hours, job security, and working conditions. © 2007 Thomson/South-Western. All rights reserved. 26
Types of Arbitration • Compulsory Binding Arbitration Ø A process for employees such as police officers, firefighters, and others in jobs where strikes cannot be tolerated to reach agreement. • Final-offer Arbitration Ø The arbitrator must select one or the other of the final offers submitted by the disputing parties with the award is likely to go to the party whose final bargaining offer has moved the closest toward a reasonable settlement. © 2007 Thomson/South-Western. All rights reserved. 27
Figure 14– 2 The Collective Bargaining Process © 2007 Thomson/South-Western. All rights reserved. 28
The Bargaining Process • Collective Bargaining Process Ø The process of negotiating a labor agreement, including the use of economic pressures by both parties. • Bargaining Zone Ø Area within which the union and the employer are willing to concede when bargaining. • Interest-based Bargaining Ø Problem-solving bargaining based on a win-win philosophy and the development of a positive longterm relationship. © 2007 Thomson/South-Western. All rights reserved. 29
Figure 14– 3 The Bargaining Zone and Negotiation Influences Source: Adapted from Ross Stagner and Hjalmar Rosen, Psychology of Union-Management Relations (Belmont, CA: Wadsworth Publishing Company, 1965), 96. Adapted with permission from Brooks/Cole Publishing Co. © 2007 Thomson/South-Western. All rights reserved. 30
Highlights in HRM 5 Items in a Labor Agreement Typical clauses will cover • Wages • Vacations • Holidays • Work schedules • Management rights • Union security • Transfers • Discipline • Training • Grievance procedures • No strike/no lockout clause • Overtime • Safety procedures • Severance pay • Seniority • Pensions and benefits • Outsourcing • Work rules © 2007 Thomson/South-Western. All rights reserved. Progressive clauses will cover • Employee access to records • Limitations on use of performance evaluation • Elder care leave • Flexible medical spending accounts • Protection against hazards of technology equipment (VDTs) • Limitations against electronic monitoring • Procedures governing drug testing • Bilingual stipends • Domestic partnership benefits • Employee involvement programs 31
Management and Union Power in Collective Bargaining • Bargaining Power Ø The power of labor and management to achieve their goals through economic, social, or political influence. • Union Bargaining Power Ø Strikes, pickets, and boycotts • Management Bargaining Power Ø Hiring permanent replacement workers Ø Continuing operations staffed by management Ø Locking out employees © 2007 Thomson/South-Western. All rights reserved. 32
Union Power in Collective Bargaining On ke Stri Unfair Boycott Our Employer Don’t re uy He B This Union On Strike Striking © 2007 Thomson/South-Western. All rights reserved. Boycotting Picketing 33
Employer Power in Collective Bargaining Management methods for applying economic pressure during bargaining: Outsourcing normal work Locking out workers Hiring replacement workers Demanding concessions © 2007 Thomson/South-Western. All rights reserved. 34
Union Security Agreements • Dues Checkoff Ø Gives the employer the responsibility of withholding union dues from the paychecks of union members who agree to such a deduction. • “Shop” Agreements Ø Require employees to join or support the union. Ø Union shop requires employee membership. Ø Agency shop allows voluntary membership; employee must pay union dues and fees. © 2007 Thomson/South-Western. All rights reserved. 35
Figure 14– 4 Five-Step Grievance Procedure © 2007 Thomson/South-Western. All rights reserved. 36
Highlights in HRM 6 Grievance Form: Phoenix Transit System and Teamsters, Local 104 Source: Courtesy of Phoenix Transit System and Teamsters, Local 104, Phoenix, Arizona. © 2007 Thomson/South-Western. All rights reserved. 37
Grievance Arbitration • Rights Arbitration Ø Arbitration over interpretation of the meaning of contract terms or employee work grievances. • Fair Representation Doctrine Ø The doctrine under which unions have a legal obligation to provide assistance to both members and nonmembers in labor relations matters. © 2007 Thomson/South-Western. All rights reserved. 38
Grievance (Rights) Arbitration Significant issues in using arbitration as a method for dispute resolution: Deciding to use binding arbitration Rights arbitration and EEO conflicts Fair Representation Doctrine Methods for choosing an arbitrator Submission agreement and awards © 2007 Thomson/South-Western. All rights reserved. 39
The Arbitration Hearing • The arbitrator declares the hearing open and obtains the submission agreement. • Parties present opening statements. • Each side presents its case using witnesses and evidence; witnesses can be cross examined. • Parties make closing statements. • Arbitrator closes hearing and designates date and time for rendering the award. © 2007 Thomson/South-Western. All rights reserved. 40
The Arbitration Award • Four factors arbitrators use to decide cases: Ø The wording of the labor agreement (or employment policy in nonunion organizations). Ø The submission agreement (statement of problem to be solved) as presented to the arbitrator. Ø Testimony and evidence offered during the hearing. Ø Arbitration criteria or standards (similar to standards of common law) against which cases are judged. © 2007 Thomson/South-Western. All rights reserved. 41
Current Challenges to Unions Important issues confronting unions Foreign competition and technological change The long-term decrease in union membership Employers’ focus on maintaining nonunion status © 2007 Thomson/South-Western. All rights reserved. 42
Highlights in HRM 7 Strategies to Remain Union-Free • Offer competitive wages and benefits based on labor market comparisons and salary and benefit surveys. • Train supervisors in progressive human relations skills, including employee motivation, job design, and employment law. • Institute formal procedures to resolve employee complaints and grievances; these may include peer-review committees, step-review complaint systems, or open-door policies. • Involve employees in work decisions affecting job performance or the quality or quantity of the product or service provided. • Give attention to employee growth and development needs; recognize that the workforce is growing older, more female, more vocal, better educated, less patient, and more demanding. • Draft HR policies that reflect legal safeguards and that are fair and equitable in employment conditions such as discipline, promotions, training, and layoffs. © 2007 Thomson/South-Western. All rights reserved. 43
Key Terms • • arbitrator authorization card bargaining power bargaining unit bargaining zone business unionism collective bargaining process • craft unions • employee associations • exclusive representation © 2007 Thomson/South-Western. All rights reserved. • fair representation doctrine • grievance procedure • industrial unions • interest-based bargaining • labor relations process • rights arbitration • unfair labor practices (ULPs) • union shop • union steward 44
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