1. Human Resource Management 10th Edition Chapter 12 LABOR UNIONS & COLLECTIVE BARGAINING
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2. HRM in Action: Change to Win Coalition
New union federation consisting of seven unions that broke from AFL-CIO and formally launched rival labor federation representing about 6 million workers in 2005
Led by Service Employees International Union
Also included are Teamsters, United Food and Commercial Workers, Unite Here, Carpenters’ Union, Laborers’ International Union of North America, and United Farm Workers
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3. Union Objectives
To secure and, if possible, improve living standards and economic status of members.
To enhance and, if possible, guarantee individual security against threats and contingencies that might result from market fluctuations, technological change, or management decisions.
To influence power relations in social system in ways that favors and does not threaten union gains and goals.
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4. Union Objectives (Cont.)
To advance welfare of all who work for a living, whether union members or not.
To create mechanisms to guard against use of arbitrary and capricious policies and practices in workplace.
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5. Union Growth Strategies
Strategically Located Union Members
Organizing Several Big Companies at Once
Pulling Union Through
Political Involvement
Union Salting
Flooding Community
Public Awareness Campaigns
Building Organizing Funds
Befriending Laid-off Workers
Organizing through Card Check
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6. Strategically Located Union Members
Importance of jobs held by union members significantly affects union power
Few strategically located union members may exert disproportionate amount of power
Truckers or dock workers can affect entire country
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7. Organizing Several Big Companies at Once
Service Employees International Union (SEIU) in Houston organized janitors at several big companies at once
Negotiated big industry-wide contract
Eliminates each company’s fear of being undercut by competitors if it allows higher wages
Companies stay neutral
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8. Pulling the Union Through
Put pressure on end user of company’s product
Strike against four Johnson Controls factories that make interior parts for some of country’s best-selling vehicles
GM and Chrysler played active behind-the-scenes role by pressuring JCI to settle dispute
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9. Political Involvement
Political arm of AFL-CIO is Committee on Political Education (COPE)
Union recommends and assists candidates who will best serve its interests
With friends in government, union in stronger position
Give money to candidates who pledge to help pass pro-labor legislation
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10. Union Salting
Process of training union organizers to apply for jobs at company and, once hired, work to unionize
Supreme Court has ruled employers cannot discriminate against union salts
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11. Flooding the Community
Process of union inundating communities with organizers to target particular business
Unions typically choose companies in which nonunionized employees have asked for help in organizing
Target weak managers’ departments as way to appeal to dissatisfied employees
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12. Public Awareness Campaigns
Labor maneuvers that do not coincide with strike or organizing campaign to pressure employer for better wages, benefits, and the like
Alternative to strikes because more employers are willing to replace striking workers
Employers have less recourse against labor campaigns involving joint political and community groups that support union goals
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13. Building Organizing Funds
AFL-CIO asks its affiliates to increase organizing funds
Increase funding to organizing institute, which trains organizers, and launches advertising campaign to create wider public support for unions
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14. Befriending Laid-Off Workers
AFL-CIO hopes castoffs from Enron, WorldCom, and others will become advocates for organizing
Fear and stress break down relationships between management and workers
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15. Organizing through Card Check
Organizing approach where employees sign card of support if they want unionization
If 50% of work force plus one worker sign card, it is considered a union victory
Expedited ways of polling workers on union representation but no secret-ballot election takes place
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16. Why Employees Join Unions
Dissatisfaction with management
Social outlet
Opportunity for leadership
Forced unionization
Peer pressure
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17. Dissatisfaction with Management
Compensation
Job Security
Management Attitude
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18. Social outlet Many people have strong social needs
Take advantage of union-sponsored recreational and social activities that members and their families find fulfilling
People who develop close personal relationships will likely stand together in difficult times
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19. Opportunity for leadership
Some individuals aspire to leadership roles
Employees with leadership aspirations can often satisfy those aspirations through union membership
Union also has a hierarchy of leadership that begins with the union steward
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20. Forced Unionization
In 28 states without right-to-work laws, legal for employer to agree with union that new employee must join union after certain period of time (generally 30 days) or be terminated
Referred to as union shop agreement
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21. Right-to-Work Laws
Prohibit management and unions from entering into agreements requiring union membership as condition of employment
State statutes or constitutional provisions that ban practice of requiring union membership or financial support as condition of employment
22 states, located primarily in South and West, have adopted such laws
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22. Peer Pressure
Some will join a union because they are urged to do so by other members of the workgroup
May constantly remind an employee that he or she is not a member of the union
In extreme cases, union members have threatened nonmembers with physical violence and sometimes have carried out these threats
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23. Union Structure Local union National (or international) union
American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)
Change to Win Coalition
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24. Local Union Basic element in structure of American labor movement
Deals with employer on day-to-day basis
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25. Craft and Industrial Unions
Craft union - Such as Carpenters and Joiners, is typically composed of members of particular trade or skill in specific locality
Industrial union - Consists of all workers in particular plant or group of plants (example, United Auto Workers)
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26. National Union Composed of local unions, which it charters
Local union, not individual worker, holds membership in national union
Service Employees International Union is largest and fastest growing national union (1.8 million members)
International Brotherhood of Teamsters has about 1.4 million members
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27. American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)
Represents labor interests at highest level
Does not engage in collective bargaining
Financed by member national unions
Has little formal power or control
Central trade union federation in U.S.
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28. The Structure of the AFL-CIO
Convention Meets biennially
Executive Council President, Secretary-Treasurer, and 33 Vice Presidents Meets at least three times a year
General Board Executive Council members and principal officer of each international union affiliate Meets on call of Federation President or Executive Council
Executive Officers President and Secretary-Treasurer
Department or Organization and Field Services
National Headquarters
Standing Committees
Staff Departments
Regional Directors
Trade and Industrial Departments Building, Food, Metal, and Maritime Trades, Industrial Union, Public and Railway Employees, Union Label
Affiliated National and International Unions
Affiliated State Bodies
Local Unions of National and International Unions
Local Bodies
Local unions affiliated directly with AFL-CIO
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Local Dept. Councils

29. Remember the Change to Win Coalition
New union federation consisting of seven unions that broke from AFL-CIO and formally launched rival labor federation representing about 6 million workers in 2005
Led by Service Employees International Union
Also included are Teamsters, United Food and Commercial Workers, Unite Here, Carpenters’ Union, Laborers’ International Union of North America, and United Farm Workers
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30. Collective Bargaining Defined
Performance of mutual obligation of employer and representative of employees to meet at reasonable times and confer in good faith with respect to wages, hours, and other terms and conditions of employment, or the negotiation of an agreement, or any question arising there under, and execution of written contract incorporating any agreement reached if requested by either party, but such obligation does not compel either party to agree to proposal or require making of a concession.
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31. Bargaining Unit
Consists of employees (not necessarily union members) recognized by employer or certified by administrative agency as appropriate for representation by labor organization for purposes of collective bargaining
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32. Steps for Forming a Bargaining Unit External Environment Internal Environment
Signing of Authorization Cards
Petition for Election
Election Campaign
Election and Certification
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33. Signing Authorization Cards
Document indicating employee wants to be represented by labor organization in collective bargaining
Is there sufficient interest on part of employees to justify unit?
Evidence of interest when at least 30% of employees in workgroup sign authorization cards
Usually need 50% to proceed
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34. Petition for Election
After authorization cards have been signed, petition for election made to regional NLRB office
NLRB will ordinarily direct that election be held within 30 days
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35. Election Campaign
Both union and management usually promote causes actively
Cannot threaten loss of jobs or benefits
Cannot misstate important facts
Illegal to incite racial or religious prejudice
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36. Election and Certification
NLRB monitors secret-ballot election
Board issues certification of results to participants
If majority of employees vote for union, NLRB will certify
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37. Collective Bargaining
Fundamental to management-organized labor relations in United States
Process does not require either party to make concessions; only compels them to bargain in good faith
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38. Forms of Bargaining Structures
One company dealing with a single union
Several companies dealing with single union
Several unions dealing with single company
Several companies dealing with several unions
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39. Collective Bargaining Process
EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
Preparing for Negotiation
Bargaining Issues
Preparing for Negotiation
Yes
Negotiation Breakdowns?
Overcoming Breakdowns No
Reaching the Agreement
Ratifying the Agreement
Administration of the Agreement
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40. Psychological Aspects of Collective Bargaining
Difficult because process is adversarial situation and must be dealt with as such
Psychological aspects vitally important
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41. Bargaining Issues Mandatory bargaining issues - Wages, hours, etc.
Permissive bargaining issues - May be raised but neither side may insist that they be bargained over
Prohibited bargaining issues - Statutorily outlawed
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42. Compensation and Benefits
Bargaining Issues
Document that results from collective bargaining process is labor agreement or contract
Recognition
Management Rights
Union Security
Compensation and Benefits
Grievance Procedure
Employee Security
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43. Recognition Appears at beginning of labor agreement
Identifies union that is recognized as bargaining representative
Describes bargaining unit
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44. Management Rights
Section that is often (but not always) written into labor agreement which spells out rights of management
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45. Union Security
Closed Shop - Arrangement whereby union membership is prerequisite to employment
Union Shop - Requires all employees become members of union after specified period
Maintenance of Membership - Must continue memberships until termination of agreement
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46. Union Security (Cont.)
Agency Shop - Nonunion members pay union equivalent of membership dues as kind of tax
Exclusive Bargaining Shop - Company must deal with union that has achieved recognition, but employees not obligated to join
Open Shop - Equal terms for union members and nonmembers
Dues Checkoff - Company agrees to withhold union dues
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47. Compensation and Benefits
Wage rate schedule
Overtime and premium pay
Jury pay
Layoff or severance pay
Holidays
Vacation
Family care
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48. Grievance Procedure
Means by which employees can voice dissatisfaction with specific management actions
Procedures for disciplinary action by management
Termination procedure that must be followed
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49. Employee Security
Seniority - Length of time employee has been associated with company, division, department, or job
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50. Job-Related Factors
Many of rules governing employee actions on job are included
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51. Negotiating the Agreement
Begins with each side presenting initial demands
Suggests certain amount of give and take
Each side does not expect to obtain all demands presented
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52. Example of Negotiating Wage Increase
LABOR Additional Cents per Hour Demanded
Bargaining Zone
Labor’s Final Offer (before strike)
Labor’s Plan B
Labor’s Plan A
MANAGEMENT Additional Cents per Hour Offered
Bargaining Zone
Management’s Plan A
Management’s Plan B
Management’s Final Offer (before plant lockout)
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53. Breakdowns in Negotiations
Third party intervention
Union strategies for overcoming breakdowns
Management strategies for overcoming breakdowns
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54. Third Party Intervention
Mediation - Neutral party comes in when impasse has occurred
Arbitration - Impartial third party makes binding decision to settle dispute
Sources of mediators and arbitrators - FMCS and AAA
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55. Types of Arbitration
Rights arbitration - Disputes over interpretation and application of various provisions of existing contract
Interest arbitration - Disputes over terms of proposed collective bargaining agreements (Rarely used in private sector)
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56. Union Strategies for Overcoming Negotiation Breakdowns - Strikes
Strikes - Union members refuse to work to pressure management in negotiations
Halts production, resulting in lost customers and revenue
Fewer strikes today
Timing is important
Unions prefer to strike only as last resort
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57. Trends & Innovations: Virtual Strikes
Proposed as means to avoid hurting others
When labor calls a strike then more than labor and management are hurt
In virtual strike only labor and management suffers
Worker wages, management salaries, and company profits, go into separate account
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58. Union Strategies for Overcoming Negotiation Breakdowns - Boycotts
Union members agree to refuse to use or buy firm’s products
Effect often lasts much longer than strike
Shoppers change buying habits
Example - Coors
Secondary Boycott - Union practice to encourage third parties to stop doing business with company Illegal
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59. Other Union Tactics
Byline strike - Newspaper writers withhold their names from stories
Informational picketing - Union members display placards and hand out leaflets, usually outside their place of business, depicting information union wants general public to see
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60. Management Strategies for Overcoming Negotiation Breakdowns - Lockout
Lockout - Keep employees out; operate by placing management and nonunion workers in striking workers’ jobs
Effective when management dealing with weak union, when union treasury is depleted, or when business has excessive inventories
Type of industry involved has considerable effect on impact of this maneuver
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61. Management Strategies for Overcoming Negotiations Breakdowns – Continue Operations Without Striking Workers
Operate firm by placing management and nonunion workers in striking workers’ jobs
Type of industry involved
At petroleum refinery or chemical plant, this practice may be quite effective
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62. Ratifying the Agreement
May be more difficult for union
Until approved by majority of union members, proposed agreement is not final
Approval process for management is easier
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63. Administration of the Agreement
Larger and perhaps more important part of collective bargaining
Seldom viewed by public
Agreement establishes union-management relationship for duration of contract
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64. Collective Bargaining for Federal Employees
Executive Order established basic framework for collective bargaining in federal government agencies.
Did not allow bargaining over wage issues
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65. Union Decertification
Essentially reverse of process that employees must follow to be recognized as official bargaining unit
Employees have used decertification petitions with increasing frequency and success
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66. Decertification Procedure
Rules established by NLRB
At least 30% must petition for election
Petition submitted days prior to expiration of current contract
Schedule decertification election
If majority of votes against union, employees will be union free
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67. Management and Decertification
If management wants union decertified, must be active rather than passive
Effective first-line supervisors
Effective communication
Trust and openness
Effective compensation programs
Effective employee and labor relations
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68. Unions Today Fall of Big Labor has been dramatic
Unionized share of private sector workforce is 7.8 percent in 2005
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69. Percentage of the Private Workforce That is Unionized
Percentage of Workforce 40 40 30 30 20 20 10 10 8
1980
1950
1955
1960
1965
1970
1975
1985
1994
2002
2005
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Year

70. A Global Perspective: The ICFTU Says Union Organizing Can Be Dangerous
Thousands of trade unionists have been arrested, jailed, tortured, fired, intimidated, and murdered or disappeared, across the world
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71. © 2008 by Prentice Hall