Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-1 Working with Unions and Resolving Disputes Chapter 10

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-2 The Labor Movement More than 15 million U.S. workers (or 12% of the workforce) belong to unions Traditionally unions belonged to blue collar workers Currently more white collar workers – from professionals to fashion models – are forming/joining unions 40% of America’s 20 million federal, state and municipal employees belong to unions

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-3 Decades of decline U.S. union membership peaked at 34% in 1955 Consistently fallen since due to shift from manufacturing to service jobs and occupational safety laws

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-4 Unions today In the U.S. a growing number of government and white collar employees are joining unions Some industries are still mostly closed to non- union members 20% of workers in Michigan and New York belong to unions while only 4% belong to unions in North Carolina

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-5 Unions internationally Germany has seen a decline in union membership but 35% of employed workers in Canada, Mexico, Brazil and Italy belong to unions

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-6 Why do workers organize? Improved wages and benefits Improved hours Improved working conditions Dismissal protection Protection from employer whims

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-7 Union security Closed shop Union shop Agency shop Preferential shop Maintenance of membership arrangement

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-8 The AFL-CIO American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) is a voluntary federation of approximately 100 national and international labor unions in the U.S. Synonymous with unions Over 7 million workers belong to unions not affiliated with the AFL-CIO

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-9 Change to Win Coalition –Service Employees International Union (SEIU) –International Brotherhood of Teamsters –United Food and Commercial Workers –UNITE

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Unions and the Law: Period of strong encouragement Norris-LaGuardia Act (1932) which guaranteed each employee the right to collective bargaining “free from interference, restraint, or coercion” – made yellow dog contracts unenforceable National Labor Relations Act (1935) banned certain unfair labor practices, providing for secret ballot elections and majority rule – created the National Labor Relations Board (NLRB)

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Unfair Employee Labor Practices Statutory wrongs but not crimes 1.Employers cannot “interfere with, restrain, or coerce employees” in exercising their legally sanctioned right of self-organization 2.Company representatives cannot dominate or interfere with either the formation or administration of labor unions 3.Employers are prohibited from discriminating in any way against employees for their legal union activities

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Employers are forbidden to discharge or discriminate against employees simply because the latter file unfair practice charges against the company 5.Employers cannot refuse to bargain collectively with their employees’ duly chosen representatives Unfair Employee Labor Practices, cont.

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Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Unions from 1935 to 1947 Union membership quickly increased after passage of the National Labor Relations Act (or Wagner Act) in 1935 By the mid-1940s the tide began to turn due to a series of massive postwar strikes and a shift in public policy against what was viewed as union excesses

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Period of Modified-Encouragement Coupled with Regulation The Taft-Hartley Act (1947) or Labor Management Relations reflected the public’s less enthusiastic attitude towards unions amending the Wagner Act in four ways: –Prohibiting unfair union labor practices –Enumerating the rights of employees as union members

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall –Enumerating the rights of employers –Allowing the president of the U.S. to temporarily bar national emergency strikes Period of Modified-Encouragement Coupled with Regulation, cont.

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Unfair Union Labor Practices 1.Unions were banned from restraining or coercing employees from exercising their guaranteed bargaining rights 2.It is an unfair labor practice for a union to cause an employer to discriminate in any way against an employee in order to encourage or discourage his or her membership in a union 3.It is an unfair labor practice for a union to refuse to bargain in good faith with the employer about wages, hours and other employment conditions

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Rights of Employees New right-to-work laws sprang up in 19 states to outlaw labor contracts that made union membership a condition for keeping one’s job Unions may not restrain or coerce employees by physical assaults or threats of violence, economic reprisals and mass picketing that restrains lawful entry or leaving of a work site

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Rights of Employers Employers have full freedom to express their views concerning union organization Employers can set forth the union’s record in regard to violence and corruption and can play on the racial prejudices of workers by describing the union’s integration philosophy Employers cannot threaten reprisal or force or promise of benefit or meet with employees on company time within 24 hours of an election

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall National Emergency Strikes U.S. Presidential power to intervene in national emergency strikes that might imperil national health and safety The president can appoint a board of inquiry and apply for an injunction restraining the strike for 60 days If no settlement is reached during that time, the injunction can be extended for another 20 days

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Period of Detailed Regulation of Internal Union Affairs The Landrum-Griffin Act (1959) officially the Labor Management Reporting and Disclosure Act amended the Wagner Act by creating protection of union members from possible wrongdoing on the part of their unions

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall The Union Drive and Election Step 1: Initial contact Step 2: Authorization cards Step 3: The Hearing Step 4: The Campaign Step 5: The Election

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Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall The Supervisor’s Role in the Unionizing Effort Use TIPS to remember what NOT to do –T: Do not threaten or imply the company will take adverse action of any kind for supporting unions –I: Do not interrogate or ask employees their position concerning unions or how they are going to vote in an election

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall P: Do not promise employees a pay increase, special favors, better benefits or promotions S: Do not spy at any union activities or attend a union meeting, even if invited The Supervisor’s Role in the Unionizing Effort, cont.

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Use FORE to remember what the supervisor MAY DO to discourage unionization –F: Use facts. Do tell employees that by signing the authorization card the union may become their legal representative in matters regarding wages and hours and do tell them that by signing the authorization card it does not mean they must vote for the union The Supervisor’s Role in the Unionizing Effort, cont.

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall –O: You may tell employees management’s opinions and doesn’t believe in third-party representation and that management does believe in having an open-door policy to air grievances –R: Provide factually correct advice about rules like telling employees that the law permits the company to permanently replace them if there’s a strike and that the union can’t make the company agree to anything it doesn’t want to The Supervisor’s Role in the Unionizing Effort, cont.

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall –E: Share personal experiences you may have had with unions The Supervisor’s Role in the Unionizing Effort, cont.

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Rules regarding literature and solicitation Nonemployees can always be barred from soliciting employees during work time Employers can usually stop employees from soliciting other employees for any purpose if one or both employees are on paid-duty time and not on break Most employers can bar nonemployees from the building’s interiors and work areas as a right of private property owners

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall What Is Collective Bargaining? Collective bargaining is the mutual obligation of the employer and the employee representative to meet at reasonable times and confer in good faith about employment issues and the execution of a written contract incorporating any agreement reached if requested by either party, but such obligation does not compel either party to agree to a proposal or require the making of a concession

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Good-faith bargaining means that proposals are matched with counterproposals and that both parties make every reasonable effort to arrive at an agreement When bargaining is not in good faith: –Surface bargaining –Proposals and demands What Is Collective Bargaining?, cont.

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Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall –Withholding information –Dilatory tactics –Concessions –Unilateral changes in conditions –Bypassing the representative What Is Collective Bargaining?, cont.

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Negotiation Experienced negotiators use: –Leverage –Desire –Time –Competition –Information –Credibility –Judgment

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Bargaining Items Voluntary (or permissible) bargaining items are neither mandatory or illegal Illegal bargaining items are forbidden by law Mandatory bargaining items include wages, hours, rest periods, layoffs, transfers, benefits and severance pay

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Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Bargaining Stages Each side presents its demands Reduction of demands Subcommittee studies Parties reach an informal settlement Parties fine-tune, proofread and sign formal agreement

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Impasses, Mediation and Strikes Impasses usually occurs because one party demands more than the other offers Mediation attempts to resolve an impasse through a third-party Strikes occur to pressure management if an impasse is not resolved

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Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Types of Strikes Economic strikes result from failure to agree on contract terms Unfair labor practice strikes protest illegal employer conduct Wildcat strikes are unauthorized strikes occurring during term of a contract Sympathy strikes happen when one union strikes in support of another’s strike

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Dealing with Strikes Employers can respond to a strike in several ways including: –Halting operations until the strike is over –Contract out work during the duration of the strike –Continue operations using supervisors or other non-striking workers to fill in –Create a lockout or seek injunction

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall The Contract Agreement Main sections of a typical contract include: –Management rights –Union security and automatic payroll dues deduction –Grievance procedures –Arbitration of grievances –Disciplinary procedures

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall –Compensation rates –Hours of work and overtime –Benefits such as vacation, holidays, insurance and pension –Health and safety provisions –Employee security seniority provisions –Contract expiration date The Contract Agreement, cont.

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall How to Handle a Grievance Do investigate and handle each and every case as though it may eventually result in an arbitration hearing Do talk with the employee about his or her grievance; give the person a good and full hearing Do require the union to identify specific contractual provisions allegedly violated Do comply with the contractual time limits of the company for handling the grievance

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Do visit the work area of the grievance Do determine whether there were any witnesses Do examine the grievant’s personnel record Do fully examine prior grievance records Do treat the union representative as your equal Do hold your grievance discussion privately Do fully inform your own supervisor How to Handle a Grievance, cont.

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Don’t discuss the case with the union steward alone, the grievant should be there Don’t make arrangements with individual employees that are inconsistent with the labor agreement Don’t hold back the remedy if the company is wrong Don’t admit to the binding effect of a past procedure How to Handle a Grievance, cont.

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Don’t relinquish to the union your rights as a manager Don’t settle grievances on the basis of what is fair – stick to the labor agreement Don’t bargain over items not covered in the contract Don’t treat as subject to arbitration claims demanding the discipline or discharge of managers How to Handle a Grievance, cont.

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Don’t give long, written grievance answers Don’t trade a grievance settlement for a grievance withdrawal Don’t deny grievances on the premise that your “hands have been tied by management” Don’t agree to informal amendments in the contract How to Handle a Grievance, cont.

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Ethics, Trust and Disputes Make sure policies are ethical Behave in a way that fosters trust When disputes arise use interpersonal conflict resolution approaches

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall The Future of Unions Change to Win Coalition will be aggressive about organizing workers, especially women and minorities Unions will continue to push Congress to pass the Employee Free Choice Act Unions will continue to employ class action lawsuits for non-unionized companies Coordination of union efforts will continue to be proactive

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.