Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Managing Human Resources Managing Human Resources Bohlander  Snell  Sherman Chapter 15 Collective Bargaining & Contract Administration Chapter 15 Collective Bargaining & Contract Administration

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Learning Objectives  Discuss the bargaining process and the bargaining goals and strategies of a union and an employer.  Describe the forms of bargaining power that a union and an employer may utilize to enforce their bargaining demands.  Cite the principal methods by which bargaining deadlocks may be resolved.  Give examples of current collective bargaining trends.

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Learning Objectives, cont.  Identify the major provisions of a labor agreement and describe the issue of management rights.  Describe a typical union grievance procedure.  Explain the basis for arbitration awards.

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning The Bargaining Process: Overview Good-Faith Bargaining Preparing for Negotiations Conducting Negotiations

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Presentation Slide 15-1 The Bargaining Process 1. Prepare for negotiations. 2. Develop strategies 3. Conduct negotiations 4. Formalize agreement Pressures on bargaining parties: Legal requirements Strikes Lockouts Boycotts Strike replacements

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Collective Bargaining Process Process of negotiating a labor agreement, including the use of economic pressures by both parties

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Pattern Bargaining Bargaining in which unions negotiate provisions covering wages and other benefits that are similar to those provided in other agreements existing within the industry or region

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Presentation Slide 15-2 Good-Faith Bargaining #1 The Taft-Hartley act requires that parties: Meet at reasonable times. Confer in good faith. Bargain over wages, hours, and working conditions. Execute a written agreement The law does not require: Agreeing to any proposal. Making a concession.

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Presentation Slide 15-3 Good Faith Bargaining #2 The NLRB has determined that good-faith bargaining means: Making proposals and counterproposals Not engaging in stalling tactics Participating actively in negotiations Meeting at reasonable times and places Entering negotiations with an open mind Bargaining with competent individuals Avoiding evasive behavior

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Bargaining Zone Area within which the union and the employer are willing to concede when bargaining

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Nonadversarial Bargaining Problem-solving bargaining based on a win- win philosophy and the development of a positive long-term relationship

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Presentation Slide 15-4 Nonadversarial Bargaining u Address mutual problems and concerns. Focus on specific issues -- not on individuals or past conflicts. u Explore interests of joint concern. Clearly define mutual issues. u Be open-minded to possibilities and/or future opportunities. Satisfy others’ interests as well as your own. u Define acceptable solutions measured against jointly developed standards. Use consensus decision making to reach solutions.

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Union Power in Collective Bargaining Striking Boycotting Picketing

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Union Power

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Boycott Union tactic to encourage others to refuse to patronize an employer

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Employer Power

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Outsourcing Act of subcontracting operations to other employers

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Lockout Strategy by which the employer denies employees the opportunity to work by closing its operations

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Resolving Bargaining Deadlocks MediationArbitration Government Intervention

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Resolving Bargaining Deadlocks

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Mediator Third party in a labor dispute who meets with one party and then the other in order to suggest compromise solutions or to recommend concessions from each side that will lead to an agreement

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Arbitrator Third-party neutral who resolves a labor dispute by issuing a final decision in the disagreement

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Interest Arbitration Binding determination of a collective bargaining agreement by an arbitrator

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Trends in Collective Bargaining Changing Relationships Management Labor Cooperation Concessionary Bargaining New Forms of Cooperation

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Presentation Slide 15-5 Concessionary Bargaining Possible Union Concessions Limits on wage increases Reductions in wage rates or elimination of cost-of-living allowance Adjustments in employee benefits Elimination of union restrictions on work rules or production standards Possible Concessions Sought By Unions Comparable salary restraints or reductions for managers Employment security guarantees Provisions for gainsharing Elimination of “outsourcing” Consultation on plant closures Participation in decisions affecting member welfare Severance pay and transfer rights Retraining

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Reserved Rights Concept that management’s authority is supreme in all matters except those it has expressly conceded to the union in the collective agreement

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Defined Rights Concept that management’s authority should be expressly defined and clarified in the collective agreement

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Grievance Procedure Formal procedure that provides for the union to represent members and nonmembers in processing a grievance

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Presentation Slide 15-6 Grievance Procedure Immediate Supervisor Grievance Immediate Supervisor Union Steward Department Manager Chief Steward VP Industrial Relations Local Union Representative Arbitration Contract Violation Step 1 Step 2 Step 3 Step 4 Step 5

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Grievance Mediation Process where a neutral party assists in the resolution of an employee grievance

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Arbitration Sources of Arbitrators Decision to Arbitrate Submission Agreement Fair Representation Doctrine Rights Arbitration Arbitration Award

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Presentation Slide 15-7 The Arbitration Process Arbitrator declares the hearing open and obtains the submissions 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 gives time for rendering the award.

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Rights Arbitration Arbitration over interpretation of the meaning of contract terms or employee work grievances

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Fair Representation Doctrine Doctrine under which unions have a legal obligation to provide assistance to both members and nonmembers in labor relations matters

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Submission Agreement Statement that describes the issues to be resolved through arbitration

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Arbitration Award Final and binding award issued by an arbitrator in a labor-management dispute

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Presentation Slide 15-8 The Arbitration Award Arbitrator renders decision based on: Contract language Submission agreement Testimony and evidence presented Arbitration criteria or standards

Managing Human Resources, 12e, by Bohlander/Snell/Sherman © 2001 South-Western/Thomson Learning Expedited Arbitration A faster, less expensive, and less legalistic way to resolve grievances regarding discipline cases, routine work issues, and cases of insignificant monetary cost to the disputing parties