©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appendix #1 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Appendix #1 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Labor Unions and Collective Bargaining 2 LO1How are unions organized? LO2What are the key laws that govern labor-management relations? LO3How are labor contracts negotiated and administered? LO4What impact do unions have on their members’ welfare and the economy? What challenges do they face today? Online

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Labor Unions 3 A labor union is a group of workers who have organized in order to pursue common work- related goals, such as better wages and benefits, safer worker conditions, and greater job security.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Basic Structure of Unions 4 Industrial Union – workers who are employed in the same industry regardless of their specific skill or profession Craft Union – workers that have the same skill or work in the same profession Local Unions (locals) - basic building blocks of a union, allow workers to directly participate in their union by attending meetings and voting on issues. National unions provide services to the locals.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Employment at Will  Employment as a completely voluntary relationship that can be terminated  Prevalent prior to 1930s  The Depression of the 1930s changed the public’s view of unions 5

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Labor Laws in the United States Norris-LaGuardia Act (1932)  Workers had a legal right to organize  Made it difficult to get injunctions against union activities National Labor Relations Act  Illegal for employers to discriminate based on union membership  Established the National Labor Relations Board  Established voting procedure for workers to certify union as the bargaining agent  Required employers to recognize the union and bargain in good faith 6

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Labor Laws in the United States Fair Labor Standards Act  Banned many types of child labor  Established the first federal minimum wage  Established a standard 40-hour work week  Required that workers receive overtime pay 7 This law was independent of union issues but it was key in establishing federal law regarding labor.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Labor Laws in the United States The labor laws enacted in the 1930s resulted in a surge in union membership. After WWII, unions began to take advantage of their new-found strength. In the first six months of 1946, almost 3 million workers went on strike. The strikes created serious disruptions and created a fear of big labor. 8

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Labor Laws in the United States Taft-Hartley Act (1947)  Declared unfair labor practices by unions illegal  Allowed employers to speak against unions during organizing campaign  Allowed members to decertify their union  Established provisions for emergency strikes Landrum-Griffin Act (1959)  Guaranteed all workers the right to participate in union meetings  Established secret ballot election of officers  Required filing of financial statements  Prohibited felons from holding union office 9

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Right-to-Work Laws 10 Taft-Hartley made Closed Shops illegal but allowed each state to enact right to work laws regarding union shops. Union Shop – employers can hire workers who don’t belong to the union but nonunion workers must join the union within a specific amount of time to keep their jobs Closed Shop – workers must belong to the union before the employer can hire them

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Right-to-Work States 11

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Union Shops vs. Right-to-Work Laws Twenty-two states have adopted right-to-work laws; declaring union shops illegal. Should employees be required to join unions? What are the arguments against a union shop? Why do critics of right-to-work laws claim they create a “free rider” problem? How has the presence of right-to-work laws affected the decisions of businesses about where to locate plants? 12

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Collective Bargaining: Reaching an Agreement 13 Collective Bargaining is the process by which representatives of labor and management attempt to negotiate a mutually acceptable labor agreement.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Subjects of Bargaining: What It’s All About Under federal law certain subjects are mandatory subjects of bargaining Wages and Benefits Hours of Work Other working conditions Permissible subjects of bargaining Subjects that the two sides can legally negotiate if both agree to do so, but which neither side is legally required to negotiate. 14

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Approaches to Collective Bargaining 15 Distributive Bargaining is the traditional approach to collective bargaining. The two sides negotiate, but don’t explicitly cooperate. Interest Based Bargaining Each side identifies concerns it wants to discuss. The two sides explore the issues and work together to find mutually acceptable solutions.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Dealing with Impasse 16 Boycott – when striking workers and their supporters refuse to do business with the employer during a labor dispute Picketing – workers walk outside the employer’s place of business carrying signs Strike – workers decide when to begin and end the work stoppage Lockout - work stoppage decided upon by the employer

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Mediation and Arbitration 17 Mediation – bringing in an outsider who attempts to help the two sides reach an agreement Arbitration - bringing in an outsider with the authority to impose a binding settlement on both parties

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Administering a Collective Bargaining Agreement 18 Workers who believe they have been treated unfairly will file a grievance. The labor contract spells out the grievance process.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Unions and Compensation Most union workers earn 10% - 20% more than nonunion workers. In 2009, 92% of Union workers had health insurance, compared to 70% of nonunion workers. 83% of union workers had access to employer- provided life insurance compared to 59% of nonunion workers. 82% of union members had paid personal leave days compared to 63% of nonunion workers. 19 Source: “Employee Benefits Survey,” Bureau of Labor Statistics website: accessed June 24, 2011.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Unions and Job Security Grievance procedures give workers represented by unions more protection against arbitrary dismissal During economic downturn, union workers may experience layoffs Automation and foreign competition have caused union job loss 20

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Unions and Productivity Critics argue that unions’ work rules hurt productivity. Defenders argue that the decreased employee turnover make workers more productive. Evidence supports both sides… 21

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Challenge of Declining Union Membership Declining state budgets have led to massive layoffs of public employees.  Teachers, firefighters, police officers, and state municipal workers Union membership in the private sector began dropping in the 1980s.  Change in the U.S. economy  Aggressive anti-union strategies  Overall union membership is down from 20.1% in the 1980s to 11.9% in Source: “Union Members—2010,” BLS News Release, January 21, 2011, Bureau of Labor Statistics website: accessed June 26,

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Appendix #1 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Looking Back How are unions organized? What are the key laws that govern labor-management relations? How are labor contracts negotiated and administered? What impact do unions have on their members’ welfare and the economy? What challenges do they face today? Online