OS 352 4/15/08 I. Reminder for next time: Read and bring to class the Mohler article. II. Benefits (continued). III. Labor-management relations. IV. Next time: Workplace safety and International HRM

Why should future managers care about labor-management relations if only 12% of workers are unionized?  Labor unions play a greater role outside the U.S. (e.g., in Germany > 80% of workers are covered by a union contract)  Labor laws apply in non-union settings too, most notably during union organizing drives.  “Labor” experience may enhance promotion to higher-level jobs in organizations. Helps in choosing strategies towards unions.  Certain states (e.g., New York) and sectors (e.g., public sector) have higher rates of unionization.

Union Membership – U.S. & N.Y. United States Overall Total12.9% Public37.2% Private8.2% New York State___ Total24.6% Public68% Private14.8%

Environmental Challenges to Unions  Manufacturing  Service  Other changes in nature of work  Legislation and government action  Economy  National culture and history

The Three Phases of the Labor Relations Process UnionOrganizing Fig CollectiveBargaining ContractAdministration © 1998 by Prentice Hall

Management’s Labor Relations Strategies  Union acceptance strategy.  Union avoidance strategy (i.e., union-free strategy).  Union substitution  Union suppression *note: union avoidance strategy is acceptable only before union is voted in.

Union An organization formed for the purpose of representing their members’ interests in dealing with employers.

Two Types of Unions  Craft Union – labor union whose members all have a particular skill or occupation; not tied to a single employer  Industrial Union – labor union whose members are linked by their work to a particular industry; usually tied to a particular employer. We will focus on industrial unions

Why Do Employees Form or Join Unions?  

Unions and HRM Once a work group is unionized, all HRM processes such as selection, employee benefits, job descriptions, etc. are bargained with the union. Management no longer has the discretion to decide unilaterally the wages, hours, and terms and conditions of employment. Unions prefer to base staffing, performance appraisal, compensation, and other HR decisions on seniority, and they will bargain for this with management. Promotions based upon seniority Individual performance appraisals are rare Pay is based upon job held and seniority

Laws Governing Labor-Management Relations 1. National Labor Relations Act (Wagner Act) Protected ees’ rights to... -form, join, or assist labor organizations -to bargain collectively -to choose their own bargaining representative Identified unfair labor practices by employers (e.g., refusing to bargain) 2. Labor Management Relations Act (Taft-Hartley) Identified unfair labor practices by unions (e.g., engaging in violent acts during a strike) Allowed states to pass “right-to-work” laws Made illegal “closed shops” (i.e., must be a union member to get hired) Note: “right-to-work” is not the same concept as employment-at-will

Right-to-Work Laws (authorized by Taft-Hartley Act) State laws that make union shops, maintenance of membership, and agency shops illegal. Union shop: ees are required to join the union within a certain amount of time (30 days) after beginning employment. Agency shop: ees are required to pay union dues but do not have to join the union. Maintenance of membership: ees who do join the union are required to remain members for a certain period of time.

Right-to-Work States Source:

The Certification Process Union contact with employees Union campaign for authorization cards Request for election Determination of bargaining unit by NLRB Pre-election campaign Elections Certification of union and start of collective bargaining Source: William D. Todor, Professor of Human Resource Management, The Ohio State University Bargaining Unit: a group of ees certified by the NLRB to be able to be included in the union. National Labor Relations Board

Unfair Labor Practices (Section 8 of NLRA)  Interference, restraint, or coercion to prevent ees from organizing, bargaining collectively, or engaging in concerted activities.  Domination or interference with union or providing financial support for it. (i.e., company union)  Discrimination against ees in order to discourage union membership.  Discharging or retaliating against an ee who has filed charges or given testimony under the NLRA.  Refusal to bargain collectively with a representative of ees (good faith bargaining)

Avoiding a “Company Union” Charge  Avoid having committees and teams “represent” the views of non-team workers.  Avoid having ees vote for who they want to be on the committee or team.  Avoid topics that are usually bargained (e.g., wages, hours)  Do not bargain or deal w/ ee teams and committees.  Management should not form the group, decide what the group should do, or how it should function.  Committees and teams should exist for a specific purpose and for a short duration.

Labor-Management Cooperation  Features ee involvement in decision making and problem- solving.  Works best in settings with longstanding union relationships  Competitive pressures have facilitated this trend.

Terms You Should Know  National Labor Relations Act (Wagner Act)  Labor Management Relations Act (Taft-Hartley)  Right-to-work laws and states  Authorization card  Company union

You Should be Able To …  Discuss why employees form or join unions.  Know approximate current unionization rates/percents in the U.S. and reasons for the steady decline in unionization.  Understand the importance of knowing about unions to the management of people.  Describe the process by which a union is organized in the workplace.  Understand and identify unfair labor practices.