1. Compensation and Benefits
Wage rate schedule
Overtime and premium pay
Jury pay
Layoff or severance pay
Holidays
Vacation
Family care
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2. 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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3. Employee Security
Seniority - Length of time employee has been associated with company, division, department, or job
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4. Job-Related Factors
Many of rules governing employee actions on job are included
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5. 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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6. 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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7. Breakdowns in Negotiations
Third party intervention
Union strategies for overcoming breakdowns
Management strategies for overcoming breakdowns
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8. 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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9. 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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10. 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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11. 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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12. 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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13. 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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14. 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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15. 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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16. 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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17. 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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18. 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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19. 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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20. 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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21. 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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22. 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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23. 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

24. 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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25. © 2008 by Prentice Hall