PowerPoint Presentation by Charlie Cook Copyright © 2004 South-Western. All rights reserved.

14–2 Objectives After studying this chapter, you should be able to: 1.Identify and explain the principal federal laws that provide the framework for labor relations. 2.Explain the reasons employees join unions. 3.Describe the process by which unions organize employees and gain recognition as their bargaining agent. 4.Discuss the bargaining process and the bargaining goals and strategies of a union and an employer.

Copyright © 2004 South-Western. All rights reserved.14–3 Objectives (cont’d) After studying this chapter, you should be able to: 5.Differentiate the forms of bargaining power that a union and an employer may utilize to enforce their bargaining demands. 6.Describe a typical union grievance procedure and explain the basis for arbitration awards. 7.Discuss some of the contemporary challenges to labor organizations.

Copyright © 2004 South-Western. All rights reserved.14–4 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 Presentation Slide 14–1

Copyright © 2004 South-Western. All rights reserved.14–5 Government Regulation of Labor Relations The 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 The Norris-LaGuardia Act of 1932  Restricts the ability of employers to obtain an injunction against unions for their lawful activities.

Copyright © 2004 South-Western. All rights reserved.14–6 Government Regulation of Labor Relations The 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.

Copyright © 2004 South-Western. All rights reserved.14–7 Wagner Act Section 7 of the Act guarantees these 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.

Copyright © 2004 South-Western. All rights reserved.14–8 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 Presentation Slide 14–2

Copyright © 2004 South-Western. All rights reserved.14–9 Amendments to the Wagner Act The Taft-Hartley Act (The Labor-Management Relations Act) of 1947  Balances the rights and duties of labor and management in the collective bargaining arena by defining unfair union practices. The 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.

Copyright © 2004 South-Western. All rights reserved.14–10 Unfair Union Practices  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”

Copyright © 2004 South-Western. All rights reserved.14–11 Labor Relations Process 1.Workers desire collective representation 2.Union begins its organizing campaign 3.Collective negotiations lead to a contract 4.The contract is administered

Copyright © 2004 South-Western. All rights reserved.14–12 The Labor Relations Process Figure 14.1

Copyright © 2004 South-Western. All rights reserved.14–13 Why Employees Unionize As a result of 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

Copyright © 2004 South-Western. All rights reserved.14–14 Organizing Campaigns Union/Employee Contact Initial Organizational Meeting Formation of In-House Committee Election Petition and Voting Preparation Contract Negotiations Steps in the Organizing Process Process

Copyright © 2004 South-Western. All rights reserved.14–15 United Food And Commercial Workers International Union Authorization Card HRM 2

Copyright © 2004 South-Western. All rights reserved.14–16 Aggressive Organizing Tactics Political Involvement Union Salting Organizer Training Corporate Campaigns Information Technology Union NOW!! Presentation Slide 14–3

Copyright © 2004 South-Western. All rights reserved.14–17 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

Copyright © 2004 South-Western. All rights reserved.14–18 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.

Copyright © 2004 South-Western. All rights reserved.14–19 NLRB Election Poster HRM 2

Copyright © 2004 South-Western. All rights reserved.14–20 The Labor Organization Process Workers Seek Collective Representation Union Begins The Organizing Process Collective Bargaining For A Contract Contract Administration Management Labor Representation Election is Held

Copyright © 2004 South-Western. All rights reserved.14–21 Impact of Unionization on Managers Challenges to Management Prerogatives  Management prerogatives versus union participation in decision-making in the work place. Loss of Supervisory Authority  Constraints on management in directing and disciplining the work force by terms of the collective bargaining agreement.

Copyright © 2004 South-Western. All rights reserved.14–22 Union Structure and Governance Craft Unions Industrial Unions Employee Associations AFL-CIO National Unions Local Unions Presentation Slide 14–4

Copyright © 2004 South-Western. All rights reserved.14–23 Types of Unions Craft unions  Unions that represent skilled craft workers Industrial unions  Unions that represent all workers—skilled, semiskilled, unskilled—employed along industry lines Employee associations  Labor organizations that represent various groups of professional and white-collar employees in labor- management relations.

Copyright © 2004 South-Western. All rights reserved.14–24 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 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 Affiliated national and international unions Local unions of national and international unions Local unions affiliated directly with AFL-CIO Affiliated state bodies Local bodies Presentation Slide 14–5

Copyright © 2004 South-Western. All rights reserved.14–25 Structure and 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 as they occur (preventing “raiding”)

Copyright © 2004 South-Western. All rights reserved.14–26 Typical Organization of a Local Union Local Union Meeting (Normally Monthly) President Business Representative Various Committee Chairpersons Vice-Presidents Secretary/Treasurer Sergeant at Arms Training and Education Grievance Committee: Chief Steward and Shop Stewards Collective Bargaining Social Local Union Members Presentation Slide 14–6

Copyright © 2004 South-Western. All rights reserved.14–27 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.

Copyright © 2004 South-Western. All rights reserved.14–28 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.

Copyright © 2004 South-Western. All rights reserved.14–29 The Collective Bargaining Process Figure 14.2 PREPARE FOR NEGOTIATIONS Gather dataGather data Form bargaining termsForm bargaining terms PREPARE FOR NEGOTIATIONS Gather dataGather data Form bargaining termsForm bargaining terms DEVELOP STRATEGIES Develop management proposals and limits of concessionsDevelop management proposals and limits of concessions Consider opponents’ goalsConsider opponents’ goals Make strike plansMake strike plans DEVELOP STRATEGIES Develop management proposals and limits of concessionsDevelop management proposals and limits of concessions Consider opponents’ goalsConsider opponents’ goals Make strike plansMake strike plans CONDUCT NEGOTIATIONS Bargain in good faithBargain in good faith Analyze proposalsAnalyze proposals Resolve proposalsResolve proposals Stay within bargaining zoneStay within bargaining zone CONDUCT NEGOTIATIONS Bargain in good faithBargain in good faith Analyze proposalsAnalyze proposals Resolve proposalsResolve proposals Stay within bargaining zoneStay within bargaining zoneFORMALIZE AGREEMENT Clarify contract languageClarify contract language Ratify agreementRatify agreementFORMALIZE AGREEMENT Clarify contract languageClarify contract language Ratify agreementRatify agreement Presentation Slide 14–7 StrikesLegal requirements LockoutsStrike replacements Boycotts

Copyright © 2004 South-Western. All rights reserved.14–30 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.

Copyright © 2004 South-Western. All rights reserved.14–31 The Bargaining Zone and Negotiation Influences Figure 14.3 Source: Adapted from Ross Stagner and Hjalmar Rosen, Psychology of Union-Management Relations (Belmont, Calif.: Wadsworth Publishing Company, 1965), 96. Adapted with permission from Brooks/Cole Publishing Co.

Copyright © 2004 South-Western. All rights reserved.14–32 Items In A Labor Agreement Typical clauses will cover:  Wages  Vacations  Holidays  Work schedules  Management rights  Union security  Transfers  Discipline  Grievance procedures  No strike/no lockout clause  Overtime  Safety procedures  Severance pay  Seniority  Pensions and benefits  Outsourcing HRM 5a

Copyright © 2004 South-Western. All rights reserved.14–33 Items In A Labor Agreement (cont’d) Progressive clauses will cover:  Employee access to records  Limitations on use of performance evaluation  Elder care leave  Flexible medical spending accounts  Protection against hazards of technology equipment (VDTs)  Limitations against electronic monitoring  Procedures governing drug testing  Bilingual stipends  Domestic partnership benefits HRM 5b

Copyright © 2004 South-Western. All rights reserved.14–34 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 replacement workers  Continuing operations staffed by management  Locking out employees Presentation Slide 14–8

Copyright © 2004 South-Western. All rights reserved.14–35 Picketing Striking Union Power in Collective Bargaining Boycotting Boycott Our Employer This Union On Strike Unfair On Strike Don’t Buy Here

Copyright © 2004 South-Western. All rights reserved.14–36 Employer Power in Collective Bargaining Demanding concessions Locking out workers Management methods for applying economic pressure during bargaining: Outsourcing normal work Hiring replacement workers

Copyright © 2004 South-Western. All rights reserved.14–37 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.

Copyright © 2004 South-Western. All rights reserved.14–38 Five-Step Grievance Procedure Grievance Procedure A formal procedure that provides for the union to represent members and nonmembers in processing a grievance Figure 14.4 Presentation Slide 14–9

Copyright © 2004 South-Western. All rights reserved.14–39 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.

Copyright © 2004 South-Western. All rights reserved.14–40 Grievance (Rights) Arbitration Submission agreement and awards Rights arbitration and EEO conflicts Significant issues in using arbitration as a method for dispute resolution: Deciding to use binding arbitration Fair Representation Doctrine Methods for choosing an arbitrator

Copyright © 2004 South-Western. All rights reserved.14–41 The Arbitration Process 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. Presentation Slide 14–10

Copyright © 2004 South-Western. All rights reserved.14–42 The Arbitration Decision Four 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. Presentation Slide 14–11

Copyright © 2004 South-Western. All rights reserved.14–43 Current Challenges to Unions Employers’ focus on maintaining nonunion status Important issues confronting unions Foreign competition and technological change The long-term decrease in union membership