Chapter 16 SUPERVISION and LABOR

2 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Chapter outcomes Define union. Discuss the effect the Wagner and Taft-Hartley Acts had on labor-management relations. Describe the union-organizing process. Describe the components of collective bargaining. Identify the steps in the collective bargaining process. Explain the various types of union security arrangements. Describe the role of a grievance procedure in collective bargaining. Identify the various impasse resolution techniques.

3 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Labor relations All activities within a company that involve dealing with a union and its members 12% of the private sector are unionized Two main effects of unionization: Major industries such as automobile, steel, electrical manufacturers, and transportation are unionized and have a major effect on the economy. Gains made by unions often spill over into other nonunionized sectors of the economy.

4 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. EXHIBIT 16–1 Union membership by industry concentration. Source: Adapted from Bureau of Labor Statistics, “Table 3. Union Affiliation of Employed Wage and Salary Workers by Occupation,” January 27, 2005,

5 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Why employees join unions Higher wages and benefits Greater job security Influence on work rules Compulsory membership Being upset with the supervisor

6 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. EXHIBIT 16-2 Union security arrangements (and related elements).

7 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Labor legislation The Wagner Act The National Labor Relations Act, 1935 “Bill of rights” for unions Established the National Labor Relations Board (NLRB) Outlined unfair labor practices The Taft-Hartley Act The Labor-Management Relations Act, 1947 Amended the Wagner Act Created the Federal Mediation and Conciliation Service (FMCS) Declared the “closed shop” illegal

8 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Other labor legislation Landrum-Griffin Act, 1959 Labor and Management Reporting and Disclosure Act Addressed corruption and misuse of union funds Racketeering Influenced and Corrupt Organizations Act (RICO), 1970 Seeks to eliminate influence of organized crime on unions

9 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. EXHIBIT 16–3 The labor relations process.

10 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Guidelines for supervisors during a unionizing drive Remain neutral in responses to questions about your opinion on unionization. If contacted by union representatives or employees do not look at any materials they attempt to give you. Prohibit union-organizing activities in the workplace during work hours only if they interfere with work operations. Prohibit outside union organizers from distributing information in the workplace.

11 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Guidelines (continued) Do not prohibit employees from distributing information during breaks and lunch periods. Do not discriminate against any employee involved in the unionization process. Lookout for union efforts to coerce employees to join and report it to HR.

12 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. TIPS for supervisors TIPS reminds supervisors not to: T-Threaten I-Interrogate P-Promise S-Spy

13 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. EXHIBIT 16–4 The collective bargaining process.

14 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. EXHIBIT 16–5 A typical grievance procedure.

15 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. When agreement cannot be reached… Strikes Economic strike Wildcat strike Lockout Impasse Resolution Techniques: Conciliation and mediation Fact finding Interest arbitration

16 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Supervisor’s steps in resolving a grievance 1. Listen to the employee’s complaint 2. Investigate to get the facts 3. Make your decision and explain it clearly 4. Keep records and documents 5. Be prepared for appeals