Enhancing Union-Management Relations Chapter Eleven Enhancing Union-Management Relations Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved Labor Union Overview https://www.youtube.com/watch?v=amU5RX1uN1M Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved Labor union Keywords? An organization of workers acting together to negotiate their wages and working conditions with employers Union-management (labor) relations The dealings between labor union and business management, both in the bargaining process and beyond it Copyright © Cengage Learning. All rights reserved

Union-Management Relations Labor union An organization of workers acting together to negotiate their wages and working conditions with employers Union-management (labor) relations The dealings between labor union and business management, both in the bargaining process and beyond it Copyright © Cengage Learning. All rights reserved

The Historical Development of Unions What are some things that unions wanted in the 1800’s? Early history Craft union Organization of skilled workers in a single craft or trade Limited to a single city; lasted for a short time Knights of Labor Formed as a secret society Goals: to eliminate depersonalization of worker resulting from mass production; to improve moral standards of employees and society Lost public favor after Haymarket riot of 1886 Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved

The Historical Development of Unions What are some things that unions wanted in the 1900’s? Early history (cont’d) American Federation of Labor (AFL) Samuel Gompers’ goal: to improve members’ living standards Used the strike as an effective labor weapon Industrial Workers of the World (IWW) A radical movement to overthrow capitalism Copyright © Cengage Learning. All rights reserved

The Historical Development of Unions (cont’d) Evolution of contemporary labor organizations Industrial union An organization of both skilled and unskilled workers in a single industry Congress of Industrial Organizations (CIO) Formed by industrial unions that withdrew from the AFL AFL-CIO Both labor groups agreed to merge in 1955 to gain strength and stop fighting each other over the right to represent particular groups of employees Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved What does this graph show? Source: U.S. Bureau of Labor Statistics, Union Membership, www.bls.gov, accessed October 9, 2008. Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved Title? Approx. 15.5% of the nation’s workers belong to unions AFL-CIO The largest union with approx 9 million members Includes actors, barbers, construction workers, carpenters, retail clerks, musicians, teachers, postal workers, painters, steel and iron workers, firefighters, bricklayers, newspaper reporters Teamsters Independent labor organization with approx 1.4 million members United Auto Workers (UAW) Represents employees in the automobile industry with approx 640,000 members Part of AFL-CIO Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved Union membership Approx. 15.5% of the nation’s workers belong to unions AFL-CIO The largest union with approx 9 million members Includes actors, barbers, construction workers, carpenters, retail clerks, musicians, teachers, postal workers, painters, steel and iron workers, firefighters, bricklayers, newspaper reporters Teamsters Independent labor organization with approx 1.4 million members United Auto Workers (UAW) Represents employees in the automobile industry with approx 640,000 members Part of AFL-CIO Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved Membership trends What do you think has been happening to union membership in recent years and why? Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved Membership trends Largest employment growth is in service industries, which are typically not unionized Some companies are moving manufacturing to other (less unionized) countries and areas Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved Ttitle? Source: United States Department of Labor, Bureau Of Labor Statistics, “Union Members Summary,” 1/20/06, http://www.bls.gov/news.release/union2.nr0.htm Copyright © Cengage Learning. All rights reserved

Industries with Union Membership Source: United States Department of Labor, Bureau Of Labor Statistics, “Union Members Summary,” 1/20/06, http://www.bls.gov/news.release/union2.nr0.htm Copyright © Cengage Learning. All rights reserved

Union-management partnerships The adversarial nature of past union-management relations has given way to limited cooperative partnerships between unions and companies What are some advantages of this to the Union members and to management? Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved

Labor-Management Legislation Norris-LaGuardia Act (1932) Made it difficult for businesses to obtain court orders banning strikes, picketing, and union membership drives National Labor Relations Act / Wagner Act (1935) Established rights of workers to organize, be represented by a union, and to negotiate with management Forbids unfair labor practices, particularly those related to unionization Established the National Labor Relations Board (NLRB) to enforce the act Overseeing union representation elections Investigating complaints filed under the provisions of the act What was the focus of legislation in the 1930’s? Copyright © Cengage Learning. All rights reserved

Labor-Management Legislation (cont’d) Fair Labor Standards Act (1938) Set a minimum wage Requires overtime rates for work in excess of 40 hours a week Prohibits the use of child labor Labor-Management Relations Act / Taft-Hartley Act (1947) Balances the union power and management authority Defines certain union activities as unfair labor practices Gives management more rights during union organizing campaigns Gives the president power to obtain a temporary injunction to stop strikes that threaten national health and safety Why should the president have the right to stop a strike? Copyright © Cengage Learning. All rights reserved

Labor-Management Legislation (cont’d) Landrum-Griffin Act (1959) Regulates the internal functioning of unions to preserve their integrity and democratic nature How did the focus of Union legislation change as we went into the 1940’s and 50’s? Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved Using the Internet http://www.dol.gov Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved Title? As a way to combat alienation and loss of personal identity from dull and repetitive jobs Due to the perception that union membership increases job security As a way of expressing dissatisfaction with one or more elements of the job Due to personal background (family history of union membership) As a requirement to keep a job under provisions of the labor contract between the union and the firm Copyright © Cengage Learning. All rights reserved

Why some employees join unions As a way to combat alienation and loss of personal identity from dull and repetitive jobs Due to the perception that union membership increases job security As a way of expressing dissatisfaction with one or more elements of the job Due to personal background (family history of union membership) As a requirement to keep a job under provisions of the labor contract between the union and the firm Copyright © Cengage Learning. All rights reserved

Debate Issue: Should You Join a Union? YES NO Copyright © Cengage Learning. All rights reserved

Debate Issue: Should You Join a Union? YES Joining a union ensures that workers’ requests and demands receive attention. Union members make more money when compared to nonunion workers. Union membership gives workers a feeling that they belong to a group and are not just “part of a machine.” NO Union members and firms with unions still have problems just like nonunionized firms. Union members must pay union dues and they may have to strike, which could lead to job loss. Unions are no longer needed because management is more in tune with workers’ needs. Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved

Steps in Forming a Union Copyright © Cengage Learning. All rights reserved

Collective Bargaining First contract Pre-negotiation preparations by both parties Exchange of initial contract demands by union and company Bargaining over issues until agreement is reached (or strike) Agreement is ratified by a vote of the union membership Agreement is signed and becomes a legally binding agreement (or more negotiation) Later contracts Pre-negotiation preparations are more intense Each side may take a harder line on the issues in negotiations Contract expiration date produces tension What do you think is the purpose of collective bargaining? Copyright © Cengage Learning. All rights reserved

Union-Management Contract Issues What are some of the things that union and management negotiate on? Copyright © Cengage Learning. All rights reserved

Union-Management Contract Issues Employee pay Working Hours Job Security Management Rights Copyright © Cengage Learning. All rights reserved

Steps in Resolving a Grievance What is a grievance? Copyright © Cengage Learning. All rights reserved

Union and Management Negotiating Tools Copyright © Cengage Learning. All rights reserved

Union and Management Negotiating Tools Strikes Picketing Wildcat strike Slowdown Boycott Lockout Strikebreaker (Scab) Arbitration – Third Party Binding Copyright © Cengage Learning. All rights reserved

Where Workers Go on Strike How are strikes in Norway or Italy different from strikes in the United States? Days not worked (per 1,000 workers) due to labor disputes Source: “[Hot List] Where Workers Go on Strike (1995-2004),” Parade, 9/17/06, p. 14. Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved Class Exercise For each of the following union-management negotiating tools, state who would use it and cite an example. Strikes Picketing Slowdowns Primary boycott Secondary boycott Lockouts Strikebreakers Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved Chapter Quiz Mining, automotive, and steel workers commonly belong to a(n) craft union. labor grade. industrial union. agency union. city union. The Wagner Act is best described as a(n) pro-management law. pro-union law. new state labor law. law amending the Taft-Hartley Act. antitrust law. Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved Chapter Quiz (cont’d) If all of the hourly employees at the Bluebell Ice Cream factory decided to unionize, this group of employees would be termed the represented workers. membership. shop. jurisdiction. bargaining unit. Before a contract is legally binding on labor and management, it must be notarized by the U.S. Department of Labor. accepted by management. approved by the mediator. published for three days in a local newspaper. ratified by the union membership. Copyright © Cengage Learning. All rights reserved

Copyright © Cengage Learning. All rights reserved Chapter Quiz (cont’d) The last stage of the union-management grievance procedure is called mediation. arbitration. strike. facilitation. receivership. Copyright © Cengage Learning. All rights reserved

Answers to Chapter Quiz Mining, automotive, and steel workers commonly belong to a(n) craft union. labor grade. industrial union. (Correct) agency union. city union. The Wagner Act is best described as a(n) pro-management law. pro-union law. (Correct) new state labor law. law amending the Taft-Hartley Act. antitrust law. Copyright © Cengage Learning. All rights reserved

Answer to Chapter Quiz (cont’d) If all of the hourly employees at the Bluebell Ice Cream factory decided to unionize, this group of employees would be termed the represented workers. membership. shop. jurisdiction. bargaining unit. (Correct) Before a contract is legally binding on labor and management, it must be notarized by the U.S. Department of Labor. accepted by management. approved by the mediator. published for three days in a local newspaper. ratified by the union membership. (Correct) Copyright © Cengage Learning. All rights reserved

Answers to Chapter Quiz (cont’d) The last stage of the union-management grievance procedure is called mediation. arbitration. (Correct) strike. facilitation. receivership. Copyright © Cengage Learning. All rights reserved