CHAPTER 12 LABOR RELATIONS PowerPoint Presentation by Charlie Cook Copyright © 2002 South-Western. All rights reserved

Copyright © 2002 South-Western. All rights reserved.12–2 Union Membership The decline in union membershipThe decline in union membership –Workers have become disenfranchised from their unions –Many unionized firms have moved their operations outside the United States. –Change in the nature of work and technology have eliminated many traditionally unionized manual labor jobs. –Unions have refused to be flexible enough to allow their organizations to grow and adapt to changes in their industries. The decline in union membershipThe decline in union membership –Workers have become disenfranchised from their unions –Many unionized firms have moved their operations outside the United States. –Change in the nature of work and technology have eliminated many traditionally unionized manual labor jobs. –Unions have refused to be flexible enough to allow their organizations to grow and adapt to changes in their industries.

Copyright © 2002 South-Western. All rights reserved.12–3 Why Study Labor Relations? Unionization is the norm in many industries such as transportation, construction, hospitality, publishing, education, and health care.Unionization is the norm in many industries such as transportation, construction, hospitality, publishing, education, and health care. Contract settlements with unionized competitors may impact on HR practices, programs, and policies needed to remain competitive.Contract settlements with unionized competitors may impact on HR practices, programs, and policies needed to remain competitive. Managers of non-unionized firms need to know why and how employees form unions and the legal requirements of the representation and collective bargaining process.Managers of non-unionized firms need to know why and how employees form unions and the legal requirements of the representation and collective bargaining process. Unionization is the norm in many industries such as transportation, construction, hospitality, publishing, education, and health care.Unionization is the norm in many industries such as transportation, construction, hospitality, publishing, education, and health care. Contract settlements with unionized competitors may impact on HR practices, programs, and policies needed to remain competitive.Contract settlements with unionized competitors may impact on HR practices, programs, and policies needed to remain competitive. Managers of non-unionized firms need to know why and how employees form unions and the legal requirements of the representation and collective bargaining process.Managers of non-unionized firms need to know why and how employees form unions and the legal requirements of the representation and collective bargaining process.

Copyright © 2002 South-Western. All rights reserved.12–4 Why Employees Organize Employees seek to form unions because of the perceived economic, social and political benefits of organization:Employees seek to form unions because of the perceived economic, social and political benefits of organization: –Higher or more equitable wages –Better or expanded benefits –Greater job or employment security (contracts) –Affiliation and sense of community (brotherhood) –Sense of power/influence in numbers (solidarity/voice) Employees seek to form unions because of the perceived economic, social and political benefits of organization:Employees seek to form unions because of the perceived economic, social and political benefits of organization: –Higher or more equitable wages –Better or expanded benefits –Greater job or employment security (contracts) –Affiliation and sense of community (brotherhood) –Sense of power/influence in numbers (solidarity/voice)

Copyright © 2002 South-Western. All rights reserved.12–5 Strategic Challenges of Organized Labor Organized labor can have a significant impact on organizational performance:Organized labor can have a significant impact on organizational performance: –When workers unionize, the employee/management power balance within the organization is redistributed. –The process of unionization involves bringing in “outside players,” union representatives who then become an additional constituency whose support must be gained for any new and ongoing management initiatives. –A unionized work setting can greatly impact an organization’s cost structure, particularly raising payroll expenses and affecting the efficiency of work processes. Organized labor can have a significant impact on organizational performance:Organized labor can have a significant impact on organizational performance: –When workers unionize, the employee/management power balance within the organization is redistributed. –The process of unionization involves bringing in “outside players,” union representatives who then become an additional constituency whose support must be gained for any new and ongoing management initiatives. –A unionized work setting can greatly impact an organization’s cost structure, particularly raising payroll expenses and affecting the efficiency of work processes.

Copyright © 2002 South-Western. All rights reserved.12–6 National Labor Relations Act (NLRA) NLRA, also called the Wagner Act, (1935)NLRA, also called the Wagner Act, (1935) –Provided the rights for employees to organize, elect representatives, and to collectively bargain. –Required employers to recognize the rights of employees to organize and bargain collectively with their elected representatives. –Act regulates the process of union/management relations. –Created the National Labor Relations Board (NLRB) to oversee and enforce the provisions of the Act. NLRA, also called the Wagner Act, (1935)NLRA, also called the Wagner Act, (1935) –Provided the rights for employees to organize, elect representatives, and to collectively bargain. –Required employers to recognize the rights of employees to organize and bargain collectively with their elected representatives. –Act regulates the process of union/management relations. –Created the National Labor Relations Board (NLRB) to oversee and enforce the provisions of the Act.

Copyright © 2002 South-Western. All rights reserved.12–7 Steps in the Organizing Process Employees conduct an organizing campaign in which 30% of the employees sign “authorization cards” expressing an interest in having a specific union represent them.Employees conduct an organizing campaign in which 30% of the employees sign “authorization cards” expressing an interest in having a specific union represent them. Employees petition the NLRB to hold a representation election and to make a bargaining unit determination.Employees petition the NLRB to hold a representation election and to make a bargaining unit determination. If the union receives a majority vote in the election, it gains representation status to bargain collectively for an contract with the employer.If the union receives a majority vote in the election, it gains representation status to bargain collectively for an contract with the employer. Employees conduct an organizing campaign in which 30% of the employees sign “authorization cards” expressing an interest in having a specific union represent them.Employees conduct an organizing campaign in which 30% of the employees sign “authorization cards” expressing an interest in having a specific union represent them. Employees petition the NLRB to hold a representation election and to make a bargaining unit determination.Employees petition the NLRB to hold a representation election and to make a bargaining unit determination. If the union receives a majority vote in the election, it gains representation status to bargain collectively for an contract with the employer.If the union receives a majority vote in the election, it gains representation status to bargain collectively for an contract with the employer.

Copyright © 2002 South-Western. All rights reserved.12–8 Behavior During Organizing Campaigns Section 8 (c) of the NLRASection 8 (c) of the NLRA –Regulates employer/employee activities during organizing campaigns; violations are considered unfair labor practices. –Employers cannot conduct reprisals against employees who exercise their rights as defined in Section 7 of the NLRA. –Prounion employees have a right to approach coworkers and express union support during nonworking periods in nonworking areas. –Employers can restrict access to employees by non- employees if organizers have other means of access and there is policy of banning solicitation by non-employees. Section 8 (c) of the NLRASection 8 (c) of the NLRA –Regulates employer/employee activities during organizing campaigns; violations are considered unfair labor practices. –Employers cannot conduct reprisals against employees who exercise their rights as defined in Section 7 of the NLRA. –Prounion employees have a right to approach coworkers and express union support during nonworking periods in nonworking areas. –Employers can restrict access to employees by non- employees if organizers have other means of access and there is policy of banning solicitation by non-employees.

Copyright © 2002 South-Western. All rights reserved.12–9 Collective Bargaining Collective bargaining between the union and the employer covers various terms and conditions of employment.Collective bargaining between the union and the employer covers various terms and conditions of employment. NLRA classification of bargaining items:NLRA classification of bargaining items: –Mandatory items that must be negotiated in good faith. These items can be bargained to impasse.These items can be bargained to impasse. –Permissive items can be included if both parties agree. These items cannot be bargained to impasse.These items cannot be bargained to impasse. –Prohibited items are cannot be negotiated because of their illegality under the terms of the NLRA or other laws. Collective bargaining between the union and the employer covers various terms and conditions of employment.Collective bargaining between the union and the employer covers various terms and conditions of employment. NLRA classification of bargaining items:NLRA classification of bargaining items: –Mandatory items that must be negotiated in good faith. These items can be bargained to impasse.These items can be bargained to impasse. –Permissive items can be included if both parties agree. These items cannot be bargained to impasse.These items cannot be bargained to impasse. –Prohibited items are cannot be negotiated because of their illegality under the terms of the NLRA or other laws.

Copyright © 2002 South-Western. All rights reserved.12–10 Collective Bargaining

Copyright © 2002 South-Western. All rights reserved.12–11 Union Security Issues Unions attempt to increase the security of their status as bargaining representatives by bargaining for:Unions attempt to increase the security of their status as bargaining representatives by bargaining for: – Union shop agreements that require new employees to join the union after an initial period of employment. – Agency shop agreements that require employees who choose not to join the union to pay “representation fees” to cover the union’s cost of representing them in bargaining. – A dues check-off agreement in which the employer deducts union dues from the paychecks of union employees. Unions attempt to increase the security of their status as bargaining representatives by bargaining for:Unions attempt to increase the security of their status as bargaining representatives by bargaining for: – Union shop agreements that require new employees to join the union after an initial period of employment. – Agency shop agreements that require employees who choose not to join the union to pay “representation fees” to cover the union’s cost of representing them in bargaining. – A dues check-off agreement in which the employer deducts union dues from the paychecks of union employees.

Copyright © 2002 South-Western. All rights reserved.12–12 Failure to Reach Agreement Failure in bargaining negotiations to reach an agreement (an impasse) may result in a strike.Failure in bargaining negotiations to reach an agreement (an impasse) may result in a strike. – Economic strikes are the result of an bargaining impasse over wages or other monetary-related issues. Striking workers can be permanently replaced in economic strikes. – Unfair labor practice strikes are ones in which employees strike in response to management actions that defined unfair labor practices under the NLRA. Striking workers cannot be permanently replaced in unfair labor practice strikes. – Wildcat strikes are unauthorized strikes by workers who walk out in violation of the collective bargaining agreement. Failure in bargaining negotiations to reach an agreement (an impasse) may result in a strike.Failure in bargaining negotiations to reach an agreement (an impasse) may result in a strike. – Economic strikes are the result of an bargaining impasse over wages or other monetary-related issues. Striking workers can be permanently replaced in economic strikes. – Unfair labor practice strikes are ones in which employees strike in response to management actions that defined unfair labor practices under the NLRA. Striking workers cannot be permanently replaced in unfair labor practice strikes. – Wildcat strikes are unauthorized strikes by workers who walk out in violation of the collective bargaining agreement.

Copyright © 2002 South-Western. All rights reserved.12–13 Related Bargaining Issues Government workers are prohibited by law from striking; they must seek arbitration.Government workers are prohibited by law from striking; they must seek arbitration. Organizations can prevent strikes by:Organizations can prevent strikes by: –Using mediation to restart the bargaining process. –Agreeing to submit the unresolved issue(s) to binding arbitration in which a mutually agreed-to third party decides the issue(s). Government workers are prohibited by law from striking; they must seek arbitration.Government workers are prohibited by law from striking; they must seek arbitration. Organizations can prevent strikes by:Organizations can prevent strikes by: –Using mediation to restart the bargaining process. –Agreeing to submit the unresolved issue(s) to binding arbitration in which a mutually agreed-to third party decides the issue(s).