Chapter Twelve Enhancing Union-Management Relations

The Historical Development of Unions Early History –Knights of Labor-utopian reformation Goals: to eliminate depersonalization of worker resulting from mass production; to improve moral standards of employees and society Leaders wanted to change “the system” Lost public favor after Haymarket riot of 1886 because workers didn’t dislike the system, they just wanted better treatment within it Did not favor striking

The Historical Development of Unions –American Federation of Labor (AFL) Samuel Gompers-founder goal of the union should be the those of its members, not those of its leaders. goal: to improve members’ living standards Used the strike as an effective labor weapon Organized labor should play a part in politics Members were skilled workers

Organized Labor Today Union Membership –Approx. 14.5% of US workers belong to unions –AFL-CIO The largest union with approx 13.1 million members Includes actors, construction workers, carpenters, musicians, teachers, postal workers, firefighters, bricklayers, etc –Teamsters Independent labor organization of professional drivers with approx 1.3 million members –United Auto Workers (UAW) Represents employees in the automobile industry with approx 748,000 members Part of AFL-CIO

Organized Labor Today Membership Trends- declined steadily since 1980 –Heavily unionized industries have been decreasing or not growing as fast as non-unionized industries (steel vs hi-tech ind) –Largest employment growth is in service industries, which are typically not unionized –Companies are moving manufacturing to other (less unionized) countries and US regions –To entice better workers, management is providing benefits that reduce employee’s need for unionization

Labor-Management Legislation Fair Labor Standards Act (1938) –Set a minimum wage –Requires overtime rates for work in excess of 40 hours a week –Prohibits the use of child labor Government on the side of workers

Labor-Management Legislation Labor-Management Relations Act / Taft-Hartley Act (1947) –Defines refusal to bargain, harassment of non union workers, excessive union dues as unfair labor practices –Gives management right to post pros and cons of union membership during an organizing campaign –Presidential power to temporarily stop strikes that threaten national health and safety –Can work in unionized shop as a non unionized worker Government on the side of business

Who Represents the Workers –Bargaining Unit The specific group of employees to be represented by the union –Jurisdiction The right of a particular union to organize particular workers – like a police department's ability to arrest you. Cross county lines-new department must make the arrest. When jurisdictions overlap or are unclear, employees may decide who will represent them

Union-Management Contract Issues Employee Pay –Forms of pay Direct compensation: wages or salary Deferred compensation: pension and retirement –Magnitude of pay Parity with local and national industry pay levels Real wage protection through cost-of-living clauses Cost-sharing for benefits

Union-Management Contract Issues Employee Pay –Pay determinants Management seeks to tie wages to each employee’s productivity Unions want pay according to seniority. Management seeks to constrain benefits to only some employees to reward loyalty Unions want equal application of benefits

Union-Management Contract Issues (cont’d) Working Hours –Overtime Time worked in excess of 40 hours in one week or in excess of eight hours in a single day –Special hourly rates for weekend or holiday work –The right of employees to refuse overtime –Premium pay for workers on less desirable shifts –Starting times (flex schedules) –Length of meal periods and work breaks

Union-Management Contract Issues Management Rights –The firm wants to control whom it hires, how work is scheduled, how discipline is handled –Unions seek to control these matters and wants management to prove dismissal reasons, evenly distribute work and overtime –Some union executives have been given seats on corporate boards of directors

Union Negotiating Tools Strikes-work stoppages –Picketing-public protesting Employees hope to arouse public sympathy and encourage the public not to patronize the firm Non-striking employees will honor the picket line and not report to work Members of other unions will not cross the picket line to make deliveries or perform services –Wildcat strike A strike not approved by the striker’s union

Union Negotiating Tools Slowdowns and Boycotts –Slowdown Workers report to their jobs but work at a slower pace than normal –Boycott A refusal to do business with a particular firm Primary boycott: aimed at the employer directly involved in the dispute-work at Ford-don’t buy a Ford Secondary boycott: aimed at a firm doing business with an employer involved in a labor dispute-work at Ford-don’t buy Firestone Tires – prohibited by the Taft-Hartley Act

Management Negotiating Tools Lockouts and Strikebreakers –Lockout A firm’s refuses to let employees enter the workplace - Work my way or don’t work at all –Strikebreaker A nonunion employee who performs the job of a striking union member – Initially temporary but can become a permanent arrangement (scab)

Negotiation Middle ground Mediation and Arbitration –Mediation-informal go-between The use of a neutral third party to assist management and the union during their negotiations –Arbitration-formal and binding The use of a neutral third party to decide an issue when the two sides cannot agree