Union Representation and Collective Bargaining Wayne F. Cascio Managing People in a Global Environment January 11, 2008

Factors in Recent Loss of Union Power  Global competition  Nonunion domestic competition  Deregulation  The growth of service industries  Corporate downsizing (depleted membership)  Willingness of firms to move operations overseas

Factors in Recent Loss of Union Power  Global competition  Nonunion domestic competition  Deregulation  The growth of service industries  Corporate downsizing (depleted membership)  Willingness of firms to move operations overseas

Deregulation of Product and Service Markets  Two key challenges created by the deregulation of markets Market entry is easier Low operating costs translate into competitive advantages

Effects of Deregulation  Adaptations are necessary for firms to compete: Ability to shift rapidly Cut costs Innovate Enter new markets Devise a flexible labor-force strategy

Six Fundamental Features of U.S. Industrial Relations System  Exclusive representation – one and only one union in a given job territory  Collective agreements that embody a sharp distinction between negotiation of and interpretation of an agreement  Decentralized collective bargaining

Six Fundamental Features of the U.S. Industrial Relations System  Relatively high union dues and large union staffs  Opposition by both large and small employers to union organization  The role of government

Rules for Union Organizing Activity  Well-defined rules govern organizing activities Employee organizers may solicit fellow employees to sign authorization cards on company premises, but not during working time Outside organizers may not solicit on premises if a company has an existing policy of prohibiting all forms of solicitation, and if that policy has been enforced consistently

Rules for Union-Organizing Activity Management representatives may express their views about unions through speeches to employees on company premises. However, they are legally prohibited from interfering with an employee’s freedom of choice concerning union membership

Management Responses to the Union Campaign  Tactical Advantages: May use company time and premises to stress the positive aspects of the current situation May emphasize the costs of unionization and the loss of individual freedom that may result from collective representation  TIPS – management may not threaten, interrogate, promise, or spy

Themes Emphasized by Unions During Organizing Campaigns  Ability to help employees satisfy their economic and personal needs  Ability to ensure that workers are treated fairly  Ability to improve working conditions

Union-Security Clauses  Closed shop  Union shop  Preferential shop  Agency shop  Maintenance of membership  Checkoff

Types of Strikes  Unfair-Labor-Practice Strikes Employees given highest degree of protection under the Taft-Hartley Act Under most circumstances, employees are entitled to reinstatement once the strike ends Management must exercise great caution  NLRB may become involved  Company liability may be substantial

Unfair Labor Practices Under the Taft-Hartley Act of 1947  By Management: Interference with, coercion of, or restraint of employees in their right to organize Domination of, interference with, or illegal assistance of a labor organization Discrimination in employment because of union activities Discrimination because an employee has filed charges or given testimony under the act Refusal to bargain in good faith “Hot cargo” agreements: refusals to handle another employer’s products because of that employer’s relationship with the union

Unfair Labor Practices Under the Taft-Hartley Act of 1947  By a Union: Restraint or coercion of employees not participating in union activities Any attempt to influence an employer to discriminate against an employee Refusal to bargain in good faith Excessive, discriminatory membership fees

Types of Strikes  Economic Strikes Strikers have limited rights to reinstatement

Types of Strikes  Unprotected Strikes Includes all remaining types of work stoppages, both lawful and unlawful Employees may be discharged by their employers  Sympathy Strikes The refusal by employees of one bargaining unit to cross a picket line of a different bargaining unit

Grievance Procedures  Grievance Procedures –keystone of I. R. Ability to resolve disputed issues while work continues without litigation, strikes, or other radical dispute-resolution strategies Advantages  Ensures that the complaints and problems of workers can be heard, rather than simply allowed to fester  Formal mechanism to ensure due process for all parties

Grievance Procedures  Used to resolve disputes about: Interpretation of the bargaining agreement Potential violations of federal or state law Violations of past practices or company rules Violations of management’s responsibility  (e.g., to provide safe and healthy working conditions)

The U. S. Union Split  AFL-CIO 14 million members  Change-to-Win Coalition 1/3 of AFL-CIO membership and budget Split from AFL-CIO in 2005 SEIU, UNITE HERE, UFCW What does it mean for the future of unions?