1 Labor Relations Paul L. Schumann, Ph.D. © 2011 by Paul L. Schumann. All rights reserved.

2 Labor Relations Goal: resolve management-worker conflicts in a way that minimizes stakeholders’ costs Goal: resolve management-worker conflicts in a way that minimizes stakeholders’ costs Minimize costly forms of conflictMinimize costly forms of conflict Maximize integrative solutionsMaximize integrative solutions Strategic level choices Strategic level choices Functional level choices Functional level choices Workplace level choices Workplace level choices

3 Unions Types: Types: Craft unionCraft union Industrial unionIndustrial union Federation of unions: AFL-CIO Federation of unions: AFL-CIO Collective bargaining Collective bargaining

4 Major Laws Railway Labor Act Railway Labor Act National Labor Relations Act National Labor Relations Act National Labor Relations Board (NLRB)National Labor Relations Board (NLRB) Civil Service Reform Act Civil Service Reform Act Federal Labor Relations AuthorityFederal Labor Relations Authority State laws State laws Minnesota: PELRA (law), MMB (employer), BMS (administers PELRA)Minnesota: PELRA (law), MMB (employer), BMS (administers PELRA)

5 National Labor Relations Act NLRB: NLRB: Employee rights include: Employee rights include: Forming, or attempting to form, a unionForming, or attempting to form, a union Joining a unionJoining a union Using a union to try to modify the terms & conditions of employment (pay, benefits, working conditions, etc.)Using a union to try to modify the terms & conditions of employment (pay, benefits, working conditions, etc.) Refusing to do any of these thingsRefusing to do any of these things See:

6 National Labor Relations Act Unfair Labor Practices (ULPs) Unfair Labor Practices (ULPs) EmployersEmployers Employers are prohibited from interfering with, restraining, or coercing employees in the exercise of their rights Employers are prohibited from interfering with, restraining, or coercing employees in the exercise of their rights UnionsUnions Unions may not restrain or coerce employees in the exercise of their rights Unions may not restrain or coerce employees in the exercise of their rights Examples:Examples:

7 Union Organizing Concepts Why do workers join unions? Why do workers join unions? Why does management frequently oppose unions? Why does management frequently oppose unions? Methods of “union avoidance”Methods of “union avoidance” Why might management take a neutral stance or support unions?Why might management take a neutral stance or support unions?

8 Legal Framework Authorization cards Authorization cards Voluntary recognitionVoluntary recognition Dispute over representation & showing of “sufficient interest”Dispute over representation & showing of “sufficient interest” Appropriate bargaining unit Appropriate bargaining unit Majority vote wins Majority vote wins “Exclusive representation”“Exclusive representation” “Duty to bargain in good faith”“Duty to bargain in good faith”

9 Union Security Dues checkoff provisions Dues checkoff provisions Membership provisions: Membership provisions: Closed shopClosed shop Union shopUnion shop “Beck rights” “Beck rights” Agency shopAgency shop Maintenance of membershipMaintenance of membership “Right-to-work” state laws“Right-to-work” state laws

10 Contract Negotiations Types of issues: Types of issues: MandatoryMandatory “Duty to bargain in good faith” “Duty to bargain in good faith” PermissivePermissive Prohibited (or illegal)Prohibited (or illegal)

11 Contract Negotiations Types of bargaining: Types of bargaining: Distributive bargainingDistributive bargaining Integrative bargainingIntegrative bargaining Attitudinal structuringAttitudinal structuring Intraorganizational bargainingIntraorganizational bargaining

12 Stages of Bargaining Early: trade initial positions Early: trade initial positions “Agenda rule”“Agenda rule” Middle: trade concessions Middle: trade concessions Commitment tacticsCommitment tactics Example Example End: mutually agreeable settlement or impasse End: mutually agreeable settlement or impasse

13 Bargaining Power My bargaining power in negotiations with you: My bargaining power in negotiations with you: Is defined in terms of my ability to get a settlement on my termsIs defined in terms of my ability to get a settlement on my terms Depends on:Depends on:

14 Impasses in Negotiations Strikes Strikes Lockouts Lockouts Mediation Mediation Interest arbitration Interest arbitration Conventional interest arbitrationConventional interest arbitration Final offer interest arbitrationFinal offer interest arbitration By package By package By issue By issue

15 Contract Administration Grievances Grievances Grievance procedure Grievance procedure Grievance arbitrationGrievance arbitration