MGT 430 – Spring 2016 Class 20 – Chapter 13 THE ORGANIZING PROCESS

The Labor Relations Process Union Organizing Union solicitation Pre-election conduct Certification election Employee Free Choice Act Three steps in Labor Relations Process are union organizing, collective bargaining and contract administration. With Union organizing employees must show interest in union. A minimum of 30 percent of the employees must sign an authorization card indicating that they union representation. Then management must avoid treating employees in way that could be interpreted trying to influence the outcome of the election. The elections are supervised by NLRB with a majority vote needed to create bargaining unit. If they don’t get a majority they must wait 12 months till next election. The Employee Free Choice Act (EFCA) has been considered by the US Congress. If it passes it will allow workers to form unions without a secret-ballot election. It will also allow union organizers to form a union simply by having a majority of employees sign an authorization card.

Union Organizing Processes Solicitation Authorization cards signed by at least 30% of the relevant work unit Union can demand automatic recognition Management typically refuses and demands an election Pre-Election Conduct a. Vigorous conduct rules b. T.I.P.S. guidelines for managers Threat – Intimidation – Promises - Surveillance

Union Election Process NLRB supervises the election Secret ballot Outcome determined by the participating voters 50% + 1 = union win = based upon those who vote Employee Free Choice Act (Card Check) No secret ballot Union can be recognized simply by having a majority of employees sign authorization cards Failed to pass Congress twice

Collective Bargaining Bargaining Behavior Must negotiate in “good faith” Each side develop and present proposals Bargaining Power Both sides take positions that favor their goals but leave some room for compromise In Collective Bargaining parties must show good faith. This happens when both parties are willing to meet and confer with each other at a reasonable time and place and both parties are willing to negotiate over wages, hours, and conditions of employment (the mandatory bargaining topics). The parties sign a written contract that formalizes their agreement and binds them to it. Each party gives the other a 60-day notice of termination or modification of the labor agreement before it expires. This can be distorted depending on who has bargaining power. Bargaining power is one party’s ability to get the other party to agree to its terms. There are two bargaining types, distributive and integrative. Distributive bargaining focuses on convincing your counterpart in negotiations that the cost of disagreeing with your terms would be very high. Integrative bargaining focuses on convincing your counterpart in negotiations that the benefits of agreeing with your terms would be very high.

Guidelines for Integrative Bargaining Try to understand others’ needs and objectives Create a free flow of information Emphasize commonalities Minimize differences Search for solutions that meet all parties’ goals and objectives Develop flexible responses to other proposals There are some guidelines for integrative bargaining. They are to try to understand each other’s needs and objectives, to create a free flow of information and to minimize differences. You also want to search for solutions that meet all parties’ goals and objectives and develop flexible responses to other proposals.

Impasses in Bargaining Role of Mediator Economic Strike Wildcat Strike Lockout The role of the mediator is to be a neutral third party that attempts to help the parties in a dispute come to a voluntary agreement. They do not have the power to impose their ideas for a settlement on the other parties. They are trained in conflict resolution techniques and are sometimes able to improve communication so that the impasse is resolved. The Federal Mediation and Conciliation Service (FMCS), established by the Taft-Hartley Act, monitors labor disputes and sometimes mediates disputes. FMCS maintains a list of impartial mediators and arbitrators who are qualified to assist with contract disputes. There are some things that cause an impasse in bargaining. They are an economic strike which is a strike that takes place when an agreement is not reached during collective bargaining. A Wildcat strike is a spontaneous work stoppage that happens under a valid contract. It is usually not supported by union leadership. And a lockout which occurs when the employer shuts down its operations before or during a labor dispute.

Types of Strikes or Other Labor Activities Wildcat Strike Strike action undertaken by unionized workers without union leadership's authorization, support, or approval. Illegal in the US Picketing A form of protest in which people (picketers) congregate outside a place of work or location where an event is taking place. Often, this is done in an attempt to dissuade others from going in, (i.e. crossing the picket line) but it can also be done to draw public attention to a cause. Legal in the US. Lockout A temporary work stoppage or denial of employment initiated by the management of a company during a labor dispute. It is usually implemented by simply refusing to admit employees onto company premises, and may include actions such as changing locks and hiring security guards for the premises. Legal in the US Labor Relations Specialist is an employee who is knowledgeable about labor relations and can represent management’s interests to a union. They are often a member of the HR department and they negotiate labor contracts, resolve grievances, & advise top management on labor strategies. However, managers often bear the major responsibility for day-to-day labor–management relations. They do so by influencing the work environment through standard managerial roles and practices. They are responsible for implementing agreements so they need to have a basic understanding of labor laws. In addition, when things go wrong they are often asked to serve on grievance committees. Thereby they have a significant role with labor relations in the organization. How can a manager effectively work with a labor relations specialist so that both parties achieve the goals they are seeking?

Legal Strikes Economic strikes, in which employees attempt to pressure the employer to concede to their demands for improvements in wages, benefits or work rules; Unfair labor practice strikes, in protest of an employer's committing an unfair labor practice; and Sympathy strikes, which occur when employees choose not to cross a primary picket line out of sympathy for the primary striking employees. Labor Relations Specialist is an employee who is knowledgeable about labor relations and can represent management’s interests to a union. They are often a member of the HR department and they negotiate labor contracts, resolve grievances, & advise top management on labor strategies. However, managers often bear the major responsibility for day-to-day labor–management relations. They do so by influencing the work environment through standard managerial roles and practices. They are responsible for implementing agreements so they need to have a basic understanding of labor laws. In addition, when things go wrong they are often asked to serve on grievance committees. Thereby they have a significant role with labor relations in the organization. How can a manager effectively work with a labor relations specialist so that both parties achieve the goals they are seeking?

Illegal Strikes Intermittent strikes, involving the constant repetition of short strikes in which the employees attempt to pressure the employer to concede to their demands while still receiving wages; "Work to rule" or slowdown strikes, in which employees fail to perform the duties which the employer has historically required them to perform (e.g. Blue Flu, explicitly following the rule book); In-facility or "sit down" strikes, in which the striking employees take possession of the employer's property and block others from entering; Secondary boycotts, in which the employees picket a neutral employer; Violence and mass picketing. Labor Relations Specialist is an employee who is knowledgeable about labor relations and can represent management’s interests to a union. They are often a member of the HR department and they negotiate labor contracts, resolve grievances, & advise top management on labor strategies. However, managers often bear the major responsibility for day-to-day labor–management relations. They do so by influencing the work environment through standard managerial roles and practices. They are responsible for implementing agreements so they need to have a basic understanding of labor laws. In addition, when things go wrong they are often asked to serve on grievance committees. Thereby they have a significant role with labor relations in the organization. How can a manager effectively work with a labor relations specialist so that both parties achieve the goals they are seeking?

When Bargaining Breaks Down Strikes Alternatives to Strikes Strike: a collective decision by union members not to work until certain demands or conditions are met. Mediation Fact Finder Arbitration Union members vote, and if the majority favors a strike, they all go on strike at that time or when union leaders believe the time is right. The intended outcome of collective bargaining is a contract with terms acceptable to both parties. If one or both sides determine that negotiation alone will not produce such an agreement, bargaining breaks down. To bring this impasse to an end, the union may strike, or the parties may bring in outside help to resolve their differences. Mediation Fact Finder Arbitration

Alternatives to Strikes Mediation Conflict resolution procedure in which a mediator hears views of both sides and facilitates negotiation process but has no formal authority to dictate a resolution. Fact Finder Third party to collective bargaining who reports reasons for a dispute, views and arguments of both sides, and possibly a recommended settlement, which parties may decline. Arbitration Conflict resolution procedure in which an arbitrator or arbitration board determines a binding settlement. Because strikes are so costly and risky, unions and employers generally prefer other methods for resolving conflicts. Three common alternatives rely on a neutral third party, usually provided by the Federal Mediation and Conciliation Service (FMCS): Mediation Fact Finder Arbitration. Union and management representatives are in the best position to resolve conflicts themselves, because they are closer to the situation than an arbitrator can be

HRM Role in Labor Relations Labor Relations Specialist Negotiate labor contracts Resolve grievances Advise TMT on labor strategies Management Can influence work environment Responsible for implementation of agreements Needs basic understanding of labor laws Often asked to serve on grievance committees Labor Relations Specialist is an employee who is knowledgeable about labor relations and can represent management’s interests to a union. They are often a member of the HR department and they negotiate labor contracts, resolve grievances, & advise top management on labor strategies. However, managers often bear the major responsibility for day-to-day labor–management relations. They do so by influencing the work environment through standard managerial roles and practices. They are responsible for implementing agreements so they need to have a basic understanding of labor laws. In addition, when things go wrong they are often asked to serve on grievance committees. Thereby they have a significant role with labor relations in the organization. How can a manager effectively work with a labor relations specialist so that both parties achieve the goals they are seeking?

The Impact of Unions on HRM Staffing – seniority based Employee Development performance appraisals for feedback Compensation Sometimes higher in union shops Benefits generally better in union shops Prefer across the board raises (COLAs) Employee Relations Union gives employees a voice Most areas of HRM are impacted by the presence of unions. Some that are impacted to a greater extent are staffing where promotions can become seniority-based, not merit-based. Employee Development is another impacted area as it limits use of performance appraisals as a developmental tool. Unions more interested in training and development than companies may be. Compensation with unions can be higher & often with better benefits than non-union shops. Unions prefer across the board increases (e.g. COLAs) instead of merit based raises. Finally in employee relations when unions are present the union empowers the workers. Workers generally have more rights than the employee handbook provides non-union workers.

Grievance A charge by one or more employees that management has violated their contractual rights Grievance Process Formal steps that moist be followed to settle disputes between management and labor