© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

11–2 Learning Objectives After studying this chapter, you should be able to: 1.Describe the role of labor unions in organizations 2.Identify and summarize trends in unionization 3.Discuss the unionization process 4.Describe the collective-bargaining process 5.Discuss how labor agreements are negotiated 6.Describe how impasses get resolved and agreements are administered 7.Discuss emerging labor union issues in the twenty-first century

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–3 Labor Unions’ Role in Organizations Labor RelationsLabor Relations  The process of dealing with employees who are represented by a union. Labor UnionLabor Union  A legally constituted group of individuals working together to achieve shared, job- related goals, including higher pay and shorter working hours.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–4 What is Collective Bargaining? The process by which managers and union leaders negotiate acceptable terms and conditions of employment for workers represented by the union.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–5 A Historical Time Line of Unionization in the United States

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–6 Historical Development of Unions Knights of LaborKnights of Labor  Expanded its goals and its membership to include workers in numerous fields rather than a single industry American Federation of Labor (AFL)American Federation of Labor (AFL)  Focused its efforts on improved working conditions and better employment contracts rather than getting involved in legislative and political activities Congress of Industrial Organizations (CIO)Congress of Industrial Organizations (CIO)  Focused on organizing employees by industry, regardless of their craft, skills, or occupation

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–7  Conflict: each challenges the other.  Armed truce: each views the other as antagonistic.  Power bargaining: each side tries to gain.  Accommodation: each tolerates the other.  Cooperation: both work together.  Collusion: both cooperate to the point of adversity. Beyond the Book: Types of Union-Management Relations

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–8 Legal Context of Unions National Labor Relations Act of 1935National Labor Relations Act of 1935  Commonly referred to as the Wagner Act.  Granted power to labor unions on a footing more equal with managers in terms of the rights of employees. National Labor Relations Board (NLRB)National Labor Relations Board (NLRB)  Administers most labor laws in the United States.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–9 Legal Context of Unions (cont’d) The Labor Management Relations ActThe Labor Management Relations Act  Also known as the Taft-Hartley Act (1947).  Was a response to strikes in the years following World War II.  Curtailed and limited union power, including closed shop agreements under which only workers who are already union members may be hired by the employer.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–10 Legal Context of Unions (cont’d) Union Shop AgreementUnion Shop Agreement  Requires that nonunion applicants can be hired, but they must join the union within a specified time to keep their jobs. Landrum-Griffin Act (Labor Management Reporting and Disclosure Act) of 1959Landrum-Griffin Act (Labor Management Reporting and Disclosure Act) of 1959  Focused on eliminating various unethical, illegal, and undemocratic union practices.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–11 Union Structures Local UnionsLocal Unions  Are organized at the level of a single company, plant, or small geographic region. Shop StewardShop Steward  Is an elected position in a local union.  Is a regular employee who functions as a liaison between union members and supervisors.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–12 The Basic Structure of a Union

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–13 Trends in Union Membership

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–14 Trends in Union-Management Relations Gradual decline in unionization in the U.S.Gradual decline in unionization in the U.S.  Has been accompanied by significant trends in union-management relations in which unions now work with management, rather than against it  In some manufacturing industries, unions remain strong and have large memberships  In industries where there is strong demand for well-trained, well-educated workers, unions may find they have more leverage

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–15 Increased job security Restriction of job movement No wage and benefit reductions Improved pensions Union Bargaining Goals Trends in Bargaining Perspectives

Changes in Union Bargaining GoalsChanges in Union Bargaining Goals  Fighting against wage and benefit cuts  Increasing focus on improved job security  Resisting job movement to nonunion facilities and outsourcing overseas  Improving employee pensions plans © 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–16

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–17 The Unionization Process Why Do Employees Unionize?Why Do Employees Unionize?  Employees believe they will be better off as a result of joining a union  Employees unionize when they are dissatisfied with their jobs and they believe that the union can help make their jobs better

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–18 Steps Employees Use to Form a Union

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–19 What Is a Bargaining Unit? Bargaining UnitBargaining Unit  A defined group of employees who are eligible for representation by the union.  The union becomes the official bargaining agent for the bargaining unit when it is certified by the NLRB.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–20 The Collective Bargaining Process Preparing for Collective BargainingPreparing for Collective Bargaining  How should management prepare?  Consider the financial health of the company  Consider existing labor contracts for similar firms  Consider long-term financial and competitive effects of contract terms on the firm  How should a union prepare?  Examine the employer’s financial health  Consider the demands and expectations of its members for negotiation outcomes  Consider contract terms and trends in its industry

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–21 The Collective Bargaining Process Bargaining ItemsBargaining Items  Mandatory items  Items that must be bargained: wages, working hours, and benefits  Permissive items  Items that may be included if both parties agree

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–22 The Bargaining Zone

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–23 Decertification of Unions For decertification to occur, two conditions must be met:For decertification to occur, two conditions must be met:  No labor contract can currently be in force (the previous agreement must have expired).  The union must have served as the official bargaining agent for the employees.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–24 When Negotiations Breakdown StrikeStrike  Occurs when employees walk off their jobs and refuse to work. PicketingPicketing  Occurs when union workers march at the entrance to the employer’s facility with signs explaining their reasons for striking. BoycottBoycott  Occurs when union members agree not to buy products of a targeted employer.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–25 When Negotiations Breakdown (cont’d) SlowdownSlowdown  Occurs when workers perform their jobs at a much slower pace than normal. Wildcat StrikeWildcat Strike  Is an unauthorized job action usually undertaken in response to a perceived injustice on the part of management. LockoutLockout  Occurs when an employer denies employees access to the workplace.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–26 Resolving Labor Disputes ImpasseImpasse  A situation in which one or both parties believe that an agreement is not imminent. Resolving an Impasse: MediationResolving an Impasse: Mediation  A neutral party (the mediator) listens to and reviews information presented by both sides.  The mediator makes recommendations and provides advice to both parties about what should be done.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–27 Resolving Labor Disputes (cont’d) ArbitrationArbitration  Both sides agree in advance that they will accept the recommendations made by an independent third party. Final-offer ArbitrationFinal-offer Arbitration  The parties bargain until impasse and then the two parties’ final offers are submitted to the arbitrator.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–28 Administering Labor Agreements Collective Bargaining ContractsCollective Bargaining Contracts  Define how the provisions of the labor agreement will be administered and enforced:  Seniority  Overtime allocations  Job classifications

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–29 “Replacement” Sources of Labor Contingent workers Living wage rates Impact of Technology Labor Relations Issues

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–30 Both unions and employers are becoming involved in the hiring of prisoners and paying them the minimum wage.Both unions and employers are becoming involved in the hiring of prisoners and paying them the minimum wage.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–31 Unions and the Electronic Age Problems that the internet presents for labor unions:Problems that the internet presents for labor unions:  Computers and technology reduce the number of employees required.  Unions have no input when operations move overseas for cheaper labor costs.

© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11–32 How Has Technology Been Positive for Unions Unions can communicate more easily with members.Unions can communicate more easily with members. Prospective members are easily reached in spite of no-solicitation rules.Prospective members are easily reached in spite of no-solicitation rules.