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Chapter Objectives After studying this chapter, you should be able to Identify and explain the principal federal laws that provide the framework for labor relations. Explain the reasons employees join unions. Describe the process by which unions organize employees and gain recognition as their bargaining agent. Discuss the bargaining process and the bargaining goals and strategies of a union and an employer. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Chapter Objectives (cont’d) After studying this chapter, you should be able to Differentiate the forms of bargaining power that a union and an employer may utilize to enforce their bargaining demands. Describe a typical union grievance procedure and explain the basis for arbitration awards. Discuss some of the contemporary challenges to labor organizations. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

1 Test Your Labor Relations Know-How 1. An auto mechanic applied for a job with an automotive dealership. He was denied employment because of his union membership. Was the employer’s action lawful? ______ Yes ______ No 2. During a labor organizing drive, supervisors questioned individual employees about their union beliefs. Was this questioning permissible? ______ Yes ______ No 3. When members of a union began wearing union buttons at work, management ordered the buttons to be removed. Was management within its rights? ______ Yes ______ No 4. While an organizing drive was under way, an employer agreed—as a social gesture—to furnish refreshments at a holiday party. Was the employer acting within the law? ______ Yes ______ No 5. A company distributed to other antiunion employers in the area a list of job applicants known to be union supporters. Was the distribution unlawful? ______ Yes ______ No 6. During a union organizing drive, the owner of Servo Pipe promised her employees a wage increase if they would vote against the union. Can the owner legally make this promise to her employees? ______ Yes ______ No © 2010 South-Western, a part of Cengage Learning. All rights reserved.

1 Test Your Labor Relations Know-How (cont’d) 7. Employees have the right to file unfair labor practice charges against their employer even when the organization is nonunion. ______ Yes ______ No 8. The union wishes to arbitrate a member’s grievance, which management has demonstrated is completely groundless. Must management arbitrate the grievance? ______ Yes ______ No 9. John Green, a maintenance engineer, has a poor work record. Management wishes to terminate his employment. However, Green is a union steward, and he is highly critical of the company. Can management legally discharge this employee? ______ Yes ______ No 10. During an organizing drive, an office manager expressed strong antiunion beliefs and called union officials “racketeers,” “big stinkers,” and a “bunch of radicals.” He told employees who joined the union that they “ought to have their heads examined.” Were the manager’s comments legal? ______ Yes ______ No © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Major Labor Laws Railway Labor Act (RLA) of 1926 Norris LaGuardia Act (Anti-Injunction Act) Wagner Act (National labor Relations Act) of 1935 Taft-Harley Act (Labor-Management Relations Act) of 1947 Landrum-Griffin Act (Labor-Management Disclosure Act) of 1959 This one goes right after the learning objectives. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Government Regulation of Labor Relations Railway Labor Act (RLA) of 1926 Purpose of the act is to avoid service interruptions resulting from disputes between railroads and their operating unions. National Mediation Board National Railway Adjustment Board Norris-LaGuardia Act of 1932 Restricts the ability of employers to obtain an injunction against unions for their lawful activities. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Government Regulation of Labor Relations Wagner Act (National Labor Relations Act) of 1935 Protects employee rights to organize and bargain collectively through representatives of their choice. Created the National Labor Relations Board (NLRB) to govern labor relations in the United States. Holds secret ballot union representation elections. Prevents and remedies unfair labor practices. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Wagner (NLRA) Act Section 7 of the Act guarantees employee rights: To self-organization, to form, join, or assist labor organizations, to bargain collectively through freely chosen representatives. To engage in concerted activities, for the purpose of collective bargaining or other mutual aid or protection. To refrain from any or all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Unfair Labor Practices (ULPs) Section 8 of the Wagner Act outlawed employer practices that deny employees their rights and benefits: Interference with Section 7 rights Domination of a union (company union) Discrimination against union members Arbitrary discharge of union members Refusal to bargain with the union © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Amendments to the Wagner Act Taft-Hartley Act (The Labor-Management Relations Act) of 1947 Balances rights and duties of labor and management in collective bargaining by defining unfair union practices. Created the Federal Mediation and Conciliation Service (FMCS) to help resolve negotiating disputes. Landrum-Griffin Act (Labor-Management Reporting and Disclosure Act) of 1959 Safeguards union member rights and prevents racketeering and other unscrupulous practices by employers and union officers. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Unfair Union Practices (Taft-Hartley Act) Unions are prohibited from: Interfering with Section 7 rights of employees Interfering with representation elections Influencing employers to discriminate with regard to union membership Refusal to bargain collectively with employer Interference with certified employee representative’s relationship with employer Assessment of excessive initiation fees and dues on bargaining unit members “Featherbedding” © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Bill of Rights of Union Members (Landrum-Griffin Act) Union members have the right to: Nominate candidates for union office Vote in union elections or referendums Attend union meetings Participate in union meetings and vote on union business Examine union accounts and records Bring suit against union officers as necessary to protect union funds © 2010 South-Western, a part of Cengage Learning. All rights reserved.

The Labor Relations Process FIGURE 14.1 The Labor Relations Process © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Why Employees Unionize As a result of their economic needs (wages and benefits) Dissatisfaction with managerial practices To fulfill social and status needs. Unionism is viewed as a way to achieve results they cannot achieve acting individually To comply with union-shop provisions of the labor agreement in effect where they work © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Organizing Campaigns Steps in the Organizing Process Employee/Union Contact Organizing Campaigns Initial Organizational Meeting Formation of In-House Committee Steps in the Organizing Process Election Petition and Voting Preparation Contract Negotiations © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6

2 United Food and Commercial Workers International Union Authorization Card © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Aggressive Organizing Tactics Political Involvement Neutrality Agreements Organizer Training Corporate Campaigns Information Technology Union NOW!! © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Employer Tactics Opposing Unionization Stressing favorable employer-employee relationship experienced without a union. Emphasize current advantages in wages, benefits, or working conditions the employees may enjoy Emphasize unfavorable aspects of unionism: strikes, union dues, abuses of legal rights Use statistics to show that unions commit large numbers of unfair labor practices. Initiate legal action when union members and leaders engage in unfair labor practices © 2010 South-Western, a part of Cengage Learning. All rights reserved.

3 Employer “Don’ts” during Union Organizing Campaigns Union organizing drives are emotionally charged events. Furthermore, labor law, NLRB rulings, and court decisions greatly affect the behavior and actions of management and union representatives. During the drive, managers and supervisors should avoid the following: Attending union meetings, spying on employee-union gatherings, or questioning employees about the content of union meetings Questioning present or current employees about their union sentiments, particularly about how they might vote in a union election Threatening or terminating employees for their union support or beliefs Changing the working conditions of employees because they actively work for the union or simply support its ideals Supplying the names, addresses, and phone numbers of employees to union representatives or other employees sympathetic to the union Promising employees improvements in working conditions (wage increases, benefit improvements, and so on) if they vote against the union Accepting or reviewing union authorization cards or prounion petitions, because employees’ names are listed on these documents © 2010 South-Western, a part of Cengage Learning. All rights reserved.

How Employees Become Unionized Bargaining Unit A group of two or more employees who share common employment interests and conditions and may reasonably be grouped together for purposes of collective bargaining. Exclusive Representation The legal right and responsibility of the union to represent all bargaining unit members equally, regardless of whether employees join the union or not. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

4 NLRB Election Poster © 2010 South-Western, a part of Cengage Learning. All rights reserved.

NLRB Representation Election Representation Election Process Preelection Hearing: NLRB certifies that 30 percent of eligible employees in bargaining unit have signed authorization cards and sets date for election. Election: NLRB conducts secret ballot election. If union wins the majority of votes in the election, NLRB certifies the union as the exclusive bargaining unit representative with which the employer must collectively bargain. Certification on Card Check: If least 50 percent of employees within the bargaining unit sign authorization cards, then the union may request recognition by the employer. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Impact of Unionization on Managers Control of Labor Costs Wages and benefits are higher in union organizations compared to similar nonunion organizations. Challenges to Management Prerogatives Unions can have a significant effect on management decisions about employees. Loss of Supervisory Authority Unionization restricts the freedom of management to formulate HR policy unilaterally and can challenge the authority of supervisors. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Structures of Labor Unions Craft Unions Represent skilled craft workers Industrial Unions Represent all workers—skilled, semiskilled, unskilled—employed along industry lines Employee Associations Represent various groups of professional and white-collar employees in labor-management relations. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Structure of the AFL-CIO GENERAL BOARD Executive members and principal officer of each international union affiliate Meets upon call of federation president of executive council Standing committees Staff departments Local unions affiliated directly with AFL-CIO Affiliated national and international unions Affiliated state bodies This one goes after your current slide 14-21. Local unions of national and international unions Local bodies © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Functions of the AFL-CIO The “House of Labor” Disseminates labor policy developed by leaders of affiliated unions. Coordinates organizing activities among affiliated unions. Provides research and other assistance through its various departments. Lobbies before legislative bodies on labor subjects Publicizes the concerns and benefits of unionization Resolves disputes between different unions © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Typical Organization of a Local Union Local Union Meeting (Normally Monthly) Business Representative President Secretary/Treasurer Vice-Presidents Sergeant at Arms Various Committee Chairpersons This one goes after your current slide 14-22. Training and Education Grievance Committee: Chief Steward and Shop Stewards Collective Bargaining Social Local Union Members © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Structure and Functions of Local Unions Local Officers Elected officials who lead the union and serve on the bargaining committee for a new contract. Union Steward An employee, as a nonpaid union official, represents the interests of members in their relations with management. Business Unionism The term applied to the goals of U.S. labor organizations, which collectively bargain wages, hours, job security, and working conditions. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Labor Relations in the Public Sector Challenges to Public Sector Unionization: No national-level public sector labor relations laws Public employees’ wages and working conditions set by law Collective bargaining for federal employees governed by executive orders and the Civil Service Reform Act of 1978 Various public civil service systems address public employee complaints or grievances Substitution of compulsory binding arbitration for the guaranteed right to strike © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Types of Arbitration Compulsory Binding Arbitration A process for employees such as police officers, firefighters, and others in jobs where strikes cannot be tolerated to reach agreement. Final-offer Arbitration The arbitrator must select one or the other of the final offers submitted by the disputing parties with the award is likely to go to the party whose final bargaining offer has moved the closest toward a reasonable settlement. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

The Collective Bargaining Process FIGURE 14.2 The Collective Bargaining Process © 2010 South-Western, a part of Cengage Learning. All rights reserved.

The Bargaining Process Collective Bargaining Process The process of negotiating a labor agreement, including the use of economic pressures by both parties. Bargaining Zone Area within which the union and the employer are willing to concede when bargaining. Interest-based Bargaining Problem-solving bargaining based on a win-win philosophy and the development of a positive long-term relationship. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

The Bargaining Process (cont’d) Good Faith Bargaining Requirements Meetings to be held at reasonable times and places to discuss employment conditions. Proposals and counterproposals submitted by each party must be realistic and reasonable. Both parties must sign a written document of the agreement reached through negotiations Interest-based Bargaining Problem-solving bargaining based on a win-win philosophy and the development of a positive long-term relationship. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Bargaining Subject Categories Good Faith Bargaining Mandatory Subjects Permissive Subjects Illegal Subjects Bargaining Subject Categories © 2010 South-Western, a part of Cengage Learning. All rights reserved. 35

The Bargaining Zone and Negotiation Influences FIGURE 14.3 The Bargaining Zone and Negotiation Influences © 2010 South-Western, a part of Cengage Learning. All rights reserved.

5 Items in a Labor Agreement © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Management and Union Power in Collective Bargaining Bargaining Power The power of labor and management to achieve their goals through economic, social, or political influence. Union Bargaining Power Strikes, pickets, and boycotts Management Bargaining Power Hiring permanent replacement workers Continuing operations staffed by management Locking out employees © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Union Power in Collective Bargaining Unfair Don’t Buy Here Boycott Our Employer This Union On Strike On Strike Boycotting Striking Picketing © 2010 South-Western, a part of Cengage Learning. All rights reserved. 4

Employer Power in Collective Bargaining Management methods for applying economic pressure during bargaining: Outsourcing normal work Locking out workers Hiring replacement workers Demanding concessions © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5

Union Security Agreements Dues Checkoff Gives the employer the responsibility of withholding union dues from the paychecks of union members who agree to such a deduction. “Shop” Agreements Require employees to join or support the union. Union shop requires employee membership. Agency shop allows voluntary membership; employee must pay union dues and fees. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Five-Step Grievance Procedure FIGURE 14.4 Five-Step Grievance Procedure © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Grievance Arbitration Rights Arbitration Arbitration over interpretation of the meaning of contract terms or employee work grievances. Fair Representation Doctrine The doctrine under which unions have a legal obligation to provide assistance to both members and nonmembers in labor relations matters. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Grievance (Rights) Arbitration Issues in deciding to use arbitration as a method for dispute resolution Use of binding arbitration Rights arbitration and EEO conflicts Fair Representation Doctrine Methods for choosing an arbitrator Submission agreement and awards © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5

The Arbitration Hearing The arbitrator declares the hearing open and obtains the submission 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 designates date and time for rendering the award. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

The Arbitration Award Factors arbitrators use to decide cases: The wording of the labor agreement (or employment policy in nonunion organizations). The submission agreement (statement of problem to be solved) as presented to the arbitrator. Testimony and evidence offered during the hearing. Arbitration criteria or standards (similar to standards of common law) against which cases are judged. © 2010 South-Western, a part of Cengage Learning. All rights reserved.

Contemporary Challenges to Labor Organizations Issues confronting unions Foreign competition and technological change The long-term decrease in union membership Employers’ focus on maintaining nonunion status © 2010 South-Western, a part of Cengage Learning. All rights reserved. 5

collective bargaining process craft unions employee associations arbitrator authorization card bargaining power bargaining unit bargaining zone business unionism collective bargaining process craft unions employee associations exclusive representation fair representation doctrine grievance procedure industrial unions interest-based bargaining labor relations process rights arbitration unfair labor practices (ULPs) union shop union steward © 2010 South-Western, a part of Cengage Learning. All rights reserved.