Compensation and Benefits Wage rate schedule Overtime and premium pay Jury pay Layoff or severance pay Holidays Vacation Family care © 2008 by Prentice Hall

Grievance Procedure Means by which employees can voice dissatisfaction with specific management actions Procedures for disciplinary action by management Termination procedure that must be followed © 2008 by Prentice Hall

Employee Security Seniority - Length of time employee has been associated with company, division, department, or job © 2008 by Prentice Hall

Job-Related Factors Many of rules governing employee actions on job are included © 2008 by Prentice Hall

Negotiating the Agreement Begins with each side presenting initial demands Suggests certain amount of give and take Each side does not expect to obtain all demands presented © 2008 by Prentice Hall

Example of Negotiating Wage Increase 10 15 20 25 30 35 40 LABOR Additional Cents per Hour Demanded Bargaining Zone Labor’s Final Offer (before strike) Labor’s Plan B Labor’s Plan A 10 15 20 25 30 35 40 MANAGEMENT Additional Cents per Hour Offered Bargaining Zone Management’s Plan A Management’s Plan B Management’s Final Offer (before plant lockout) © 2008 by Prentice Hall

Breakdowns in Negotiations Third party intervention Union strategies for overcoming breakdowns Management strategies for overcoming breakdowns © 2008 by Prentice Hall

Third Party Intervention Mediation - Neutral party comes in when impasse has occurred Arbitration - Impartial third party makes binding decision to settle dispute Sources of mediators and arbitrators - FMCS and AAA © 2008 by Prentice Hall

Types of Arbitration Rights arbitration - Disputes over interpretation and application of various provisions of existing contract Interest arbitration - Disputes over terms of proposed collective bargaining agreements (Rarely used in private sector) © 2008 by Prentice Hall

Union Strategies for Overcoming Negotiation Breakdowns - Strikes Strikes - Union members refuse to work to pressure management in negotiations Halts production, resulting in lost customers and revenue Fewer strikes today Timing is important Unions prefer to strike only as last resort © 2008 by Prentice Hall

Trends & Innovations: Virtual Strikes Proposed as means to avoid hurting others When labor calls a strike then more than labor and management are hurt In virtual strike only labor and management suffers Worker wages, management salaries, and company profits, go into separate account © 2008 by Prentice Hall

Union Strategies for Overcoming Negotiation Breakdowns - Boycotts Union members agree to refuse to use or buy firm’s products Effect often lasts much longer than strike Shoppers change buying habits Example - Coors Secondary Boycott - Union practice to encourage third parties to stop doing business with company Illegal © 2008 by Prentice Hall

Other Union Tactics Byline strike - Newspaper writers withhold their names from stories Informational picketing - Union members display placards and hand out leaflets, usually outside their place of business, depicting information union wants general public to see © 2008 by Prentice Hall

Management Strategies for Overcoming Negotiation Breakdowns - Lockout Lockout - Keep employees out; operate by placing management and nonunion workers in striking workers’ jobs Effective when management dealing with weak union, when union treasury is depleted, or when business has excessive inventories Type of industry involved has considerable effect on impact of this maneuver © 2008 by Prentice Hall

Management Strategies for Overcoming Negotiations Breakdowns – Continue Operations Without Striking Workers Operate firm by placing management and nonunion workers in striking workers’ jobs Type of industry involved At petroleum refinery or chemical plant, this practice may be quite effective © 2008 by Prentice Hall

Ratifying the Agreement May be more difficult for union Until approved by majority of union members, proposed agreement is not final Approval process for management is easier © 2008 by Prentice Hall

Administration of the Agreement Larger and perhaps more important part of collective bargaining Seldom viewed by public Agreement establishes union-management relationship for duration of contract © 2008 by Prentice Hall

Collective Bargaining for Federal Employees Executive Order 10988 established basic framework for collective bargaining in federal government agencies. Did not allow bargaining over wage issues © 2008 by Prentice Hall

Union Decertification Essentially reverse of process that employees must follow to be recognized as official bargaining unit Employees have used decertification petitions with increasing frequency and success © 2008 by Prentice Hall

Decertification Procedure Rules established by NLRB At least 30% must petition for election Petition submitted 60-90 days prior to expiration of current contract Schedule decertification election If majority of votes against union, employees will be union free © 2008 by Prentice Hall

Management and Decertification If management wants union decertified, must be active rather than passive Effective first-line supervisors Effective communication Trust and openness Effective compensation programs Effective employee and labor relations © 2008 by Prentice Hall

Unions Today Fall of Big Labor has been dramatic Unionized share of private sector workforce is 7.8 percent in 2005 © 2008 by Prentice Hall

Percentage of the Private Workforce That is Unionized Percentage of Workforce 40 40 30 30 20 20 10 10 8 1980 1950 1955 1960 1965 1970 1975 1985 1994 2002 2005 © 2008 by Prentice Hall Year

A Global Perspective: The ICFTU Says Union Organizing Can Be Dangerous Thousands of trade unionists have been arrested, jailed, tortured, fired, intimidated, and murdered or disappeared, across the world © 2008 by Prentice Hall

© 2008 by Prentice Hall