© 2003 South-Western College Publishing. All rights reserved.15–1 The HR Triad Extended Line Managers Know and appreciate historical context and current contract Understand why employees join unions Support HR efforts for good working conditions Manage with respect and equality Know what can and cannot be said during an organizing campaign Develop effective relationships with union representatives Participate in resolving grievances Line Managers Know and appreciate historical context and current contract Understand why employees join unions Support HR efforts for good working conditions Manage with respect and equality Know what can and cannot be said during an organizing campaign Develop effective relationships with union representatives Participate in resolving grievances HR Professionals Train line managers in unionization rights of employees Develop policies and programs that support good working conditions Survey employee attitudes Work with line managers to deal effectively with union representatives Develop mechanisms for effective grievance resolution Move along issues such as TQM and QWL Work with managers in the grievance process HR Professionals Train line managers in unionization rights of employees Develop policies and programs that support good working conditions Survey employee attitudes Work with line managers to deal effectively with union representatives Develop mechanisms for effective grievance resolution Move along issues such as TQM and QWL Work with managers in the grievance process

© 2003 South-Western College Publishing. All rights reserved.15–2 The HR Triad Extended (cont’d) Employees Present views about working conditions, wages, hours to HR and line managers Bargain in good faith Fulfill rights and responsibilities in union contract Use mechanisms for grievances as appropriate Be aware of issues management and labor leaders are discussing Stay involved in grievance process as appropriate Employees Present views about working conditions, wages, hours to HR and line managers Bargain in good faith Fulfill rights and responsibilities in union contract Use mechanisms for grievances as appropriate Be aware of issues management and labor leaders are discussing Stay involved in grievance process as appropriate Unions Seek to represent employees’ views to company Offer to work with management to improve company profitability and survival Bargain with line managers and HR Seek improvements in conditions and wages Adapt to local conditions and changes in technology and the economy Ensure grievances are processed fairly Unions Seek to represent employees’ views to company Offer to work with management to improve company profitability and survival Bargain with line managers and HR Seek improvements in conditions and wages Adapt to local conditions and changes in technology and the economy Ensure grievances are processed fairly

© 2003 South-Western College Publishing. All rights reserved.15–3 Strategic Importance of Unionization  Unionization  Efforts by employees and outside agencies (unions) to act as a single unit when dealing with management over issues related to their work

© 2003 South-Western College Publishing. All rights reserved.15–4 UnionsUnions  Strong feelings.  Union advocates  Union Antagonists.

© 2003 South-Western College Publishing. All rights reserved.15–5 Collective Bargaining  Negotiation of the contract that is basis for employee-employer relationships  Contract administration, including interpretation and enforcement of the contract and resolution of conflicts

© 2003 South-Western College Publishing. All rights reserved.15–6 Process of Union Organizing Satisfaction Individual personality, interests, and preferences Expectations for work Employment contractEmployment contract Psychological contractPsychological contract Dissatisfaction with work situations Union Instrumentality Unionization Work Situation Influence of management Attempt to resolve situation individually

© 2003 South-Western College Publishing. All rights reserved.15–7  Conditions for union formation:  Dissatisfaction  Lack of power  Union instrumentality

© 2003 South-Western College Publishing. All rights reserved.15–8  Disincentives for unions?

© 2003 South-Western College Publishing. All rights reserved.15–9 Organizing Campaign 1.Union contact with employees 2.Union campaign for authorization cards 3.Request for election 4.Determination of bargaining unit by NLRB 5.Pre-election campaign 6.Elections 7.Certification of union / start of collective bargaining

© 2003 South-Western College Publishing. All rights reserved.15–10 Unfair Labor Practices by Employers  Misrepresenting the facts about union or its officers  Threatening employees who support unionization  Promise benefits or rewards for employees who oppose union activity

© 2003 South-Western College Publishing. All rights reserved.15–11 Unfair Labor Practices by Employers (cont’d)  Make unscheduled changes in wages, hours, benefits or working conditions  Conduct surveillance activities  Interrogate workers  Prohibit solicitation

© 2003 South-Western College Publishing. All rights reserved.15–12 What Employers Can Discuss with Employees  History and facts of unionization  Own experiences with unions  Costs of union membership and the benefits they receive without a union  That union representation won’t protect against discharge for cause  That the company prefers to deal directly with employees

© 2003 South-Western College Publishing. All rights reserved.15–13 What Employers Can Discuss (cont’d)  That the company is not obligated to sign contract or accept all union’s demands  That unions often resort to work stoppages  The company’s legal right to hire replacements

© 2003 South-Western College Publishing. All rights reserved.15–14 Contract Administration or the pain of having a union  Grievance procedures  Grievance issues  Management procedures  Union procedures

© 2003 South-Western College Publishing. All rights reserved.15–15  Any change to the contract has to be collective bargained.  Take United Airlines. Bankruptcy.  Unions will largely determine if it gets out or not. Management has little flexibility to work out the crisis.  Is this good or bad?

© 2003 South-Western College Publishing. All rights reserved.15–16 Sources of Grievances  Outright violation of contract  Disagreement over:  Facts  Meaning of agreement  Method of applying agreement  Fairness or reasonableness of actions

© 2003 South-Western College Publishing. All rights reserved.15–17 Steps in Grievance Procedure Meet with supervisor Employee contacts steward Meet with management (Industrial Relations) Meet with union executives and top management Go to arbitration

© 2003 South-Western College Publishing. All rights reserved.15–18 Grievance Issues  Discipline and discharge are most common issues reaching arbitration  Other issues:  Calculation of seniority  Compensation for Time away from workTime away from work Vacations, holidaysVacations, holidays Sick leaveSick leave  Wage and work schedules

© 2003 South-Western College Publishing. All rights reserved.15–19 Defensible Disciplinary Procedures Employee adequately warned of consequences Employee adequately warned of consequences Rule is related to company operation Rule is related to company operation Thorough investigation is undertaken Thorough investigation is undertaken Penalty is reasonable Penalty is reasonable Just cause and fairness characterize decisions Just cause and fairness characterize decisions

© 2003 South-Western College Publishing. All rights reserved.15–20 Unfair Representation by Union  Improper motives  Union refuses to process grievance because of race, gender, or employee’s attitude toward union  Arbitrary conduct  Not investigating merit of grievance  Gross negligence  Reckless disregard of employee’s interests  Union conduct after filing grievance  Must process to reasonable conclusion

© 2003 South-Western College Publishing. All rights reserved.15–21  Unions Resist organizational change.  In today’s competitive environment a union is a competitive disadvantage.

© 2003 South-Western College Publishing. All rights reserved.15–22 Org Change  Difficult over 50% total complete failures.  Some suggest only 20% successful.

© 2003 South-Western College Publishing. All rights reserved.15–23  Examples of organizational change numerous.  New product  Change in accounting practices  Common platform  Organizational restructuring  Most commonly just changes in strategic directions, mergers etc.

© 2003 South-Western College Publishing. All rights reserved.15–24 A story  Retailer.  Phantom phone calls  Phone courtesy. HR effort.  Massive training  Phantom phone calls

© 2003 South-Western College Publishing. All rights reserved.15–25  Of the articles I gave to you which were you most impressed by.  Why?  All successful  Why are these different from Phone courtesy?

© 2003 South-Western College Publishing. All rights reserved.15–26 What is needed to create change  HR builds a culture. Many different ways to build a culture.  Bottom up (participation)  Top down (compliance and control).  Even here there are variations within these.

© 2003 South-Western College Publishing. All rights reserved.15–27 Bottom up  HR role—facilitator and supporter. We role. Intervention agent/mediator.  Slow process.

© 2003 South-Western College Publishing. All rights reserved.15–28 Top down  HR systems. How do you get GE managers to adopt Gates culture? Not a lot of information about the culture.

© 2003 South-Western College Publishing. All rights reserved.15–29  Selection is a very slow tool. But in combination with massive retrenchment it is OK.  Top Management change.

© 2003 South-Western College Publishing. All rights reserved.15–30  Training is widely used but not sufficient.

© 2003 South-Western College Publishing. All rights reserved.15–31  Performance appraisal and compensation.  Example of changes needed/made at Insteel.

© 2003 South-Western College Publishing. All rights reserved.15–32  Case Diversity problems. What needs to get done? Meet in teams

© 2003 South-Western College Publishing. All rights reserved.15–33