1. © 2012 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. The Dynamics of Labor Relations 1–1 The Challenges of Human Resources Management

2. © 2012 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. 2 of 36 © 2012 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. 2 of 46 Chapter Objectives Chapter Objectives After studying this chapter, you should be able to Identify and explain the main federal laws that provide the framework for labor relations. Explain the reasons employees join unions. Describe the process by which unions organize employees and gain recognition as their bargaining agent. Discuss the bargaining process and the bargaining goals and strategies of a union and an employer. Differentiate the forms of bargaining power that a union and an employer may utilize to enforce their bargaining demands. Describe a typical union grievance procedure and explain the basis for arbitration awards. Discuss some of the contemporary challenges to labor organizations. LEARNING OUTCOME 1 LEARNING OUTCOME 2 LEARNING OUTCOME 3 LEARNING OUTCOME 4 LEARNING OUTCOME 5 LEARNING OUTCOME 6 LEARNING OUTCOME 7

3. © 2012 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. 3 of 36 © 2012 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. 3 of 46 Test Your Labor Relations Know-How

4. © 2012 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. 4 of 36 © 2012 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. 4 of 46 Test Your Labor Relations Know-How (cont.)

5. © 2012 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. 5 of 36 © 2012 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. 5 of 46 Government Regulation of Labor Relations Major Labor LawsMajor Labor Laws  Railway Labor Act (RLA) of 1926  Norris LaGuardia Act (Anti-Injunction Act)  Wagner Act (National labor Relations Act) of 1935 – National Labor Relations Board  Taft-Harley Act (Labor-Management Relations Act) of 1947  Landrum-Griffin Act (Labor-Management Disclosure Act) of 1959

6. © 2012 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. 6 of 36 © 2012 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. 6 of 46 Government Regulation of Labor Relations (cont.) Railway Labor Act (RLA) of 1926Railway Labor Act (RLA) of 1926  Purpose of the act is to avoid service interruptions resulting from disputes between railroads and their operating unions.  National Mediation Board  National Railway Adjustment Board Norris-LaGuardia Act of 1932Norris-LaGuardia Act of 1932  Restricts the ability of employers to obtain an injunction against unions for their lawful activities.

7. © 2012 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. 7 of 36 © 2012 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. 7 of 46 Wagner (NLRA) Act Wagner Act (National Labor Relations Act) of 1935Wagner Act (National Labor Relations Act) of 1935  Protects employee rights to organize and bargain collectively through representatives of their choice.  Created the National Labor Relations Board (NLRB) to govern labor relations in the United States. – Holds secret ballot union representation elections. – Prevents and remedies unfair labor practices.

8. © 2012 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. 8 of 36 © 2012 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. 8 of 46 Wagner (NLRA) Act (cont.) Section 7 of the Act guarantees employee rights:Section 7 of the Act guarantees employee rights:  To self-organization, to form, join, or assist labor organizations, to bargain collectively through freely chosen representatives.  To engage in concerted activities, for the purpose of collective bargaining or other mutual aid or protection.  To refrain from any or all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment.

9. © 2012 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. 9 of 36 © 2012 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. 9 of 46 Wagner (NLRA) Act (cont.) Section 8 of the Wagner Act outlawed employer practices that deny employees their rights and benefits:Section 8 of the Wagner Act outlawed employer practices that deny employees their rights and benefits:  Interference with Section 7 rights  Domination of a union (company union)  Discrimination against union members  Arbitrary discharge of union members  Refusal to bargain with the union

10. © 2012 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. 10 of 36 © 2012 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. 10 of 46 Amendments to the Wagner Act Taft-Hartley Act (The Labor-Management Relations Act) of 1947Taft-Hartley Act (The Labor-Management Relations Act) of 1947  Balances rights and duties of labor and management in collective bargaining by defining unfair union practices.  Created the Federal Mediation and Conciliation Service (FMCS) to help resolve negotiating disputes. Landrum-Griffin Act (Labor-Management Reporting and Disclosure Act) of 1959Landrum-Griffin Act (Labor-Management Reporting and Disclosure Act) of 1959  Safeguards union member rights and prevents racketeering and other unscrupulous practices by employers and union officers.

11. © 2012 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 of 36 © 2012 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 of 46 Taft-Hartley Act (Unfair Union Practices ) Unions are prohibited from:Unions are prohibited from:  Interfering with Section 7 rights of employees  Interfering with representation elections  Influencing employers to discriminate with regard to union membership  Refusal to bargain collectively with employer  Interference with certified employee representative’s relationship with employer  Assessment of excessive initiation fees and dues on bargaining unit members  “Featherbedding”

12. © 2012 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. 12 of 36 © 2012 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. 12 of 46 Landrum-Griffin Act (Bill of Rights of Union Members) Union members have the right to:Union members have the right to:  Nominate candidates for union office  Vote in union elections or referendums  Attend union meetings  Participate in union meetings and vote on union business  Examine union accounts and records  Bring suit against union officers as necessary to protect union funds

13. © 2012 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. 13 of 36 © 2012 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. 13 of 46 The Labor Relations Process

14. © 2012 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. 14 of 36 © 2012 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. 14 of 46 Why Employees Unionize As a result of their economic needs (wages and benefits)As a result of their economic needs (wages and benefits) Dissatisfaction with managerial practicesDissatisfaction with managerial practices To fulfill social and status needs.To fulfill social and status needs. Social and leadership concernsSocial and leadership concerns

15. © 2012 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. 15 of 36 © 2012 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. 15 of 46 Union Avoidance Practices PayPay Promote more employees from withinPromote more employees from within Conduct cultural auditsConduct cultural audits Offer job rotations and training programsOffer job rotations and training programs Share information with employeesShare information with employees Have desirable working conditionsHave desirable working conditions

16. © 2012 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. 16 of 36 © 2012 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. 16 of 46 Organizing Steps Employee/Union Contact Initial Organizational Meeting Formation of In-House Committee Election Petition and Voting Preparation Contract Negotiations Steps in the Organizing Process Process

17. © 2012 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. 17 of 36 © 2012 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. 17 of 46 United Food and Commercial Workers International Union Authorization Card

18. © 2012 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. 18 of 36 © 2012 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. 18 of 46 Aggressive Organizing Tactics Political InvolvementPolitical Involvement Neutrality AgreementsNeutrality Agreements Organizer TrainingOrganizer Training Corporate CampaignsCorporate Campaigns Information TechnologyInformation Technology

19. © 2012 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. 19 of 36 © 2012 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. 19 of 46 Employer Tactics Opposing Unionization Stressing favorable employer-employee relationship experienced without a union.Stressing favorable employer-employee relationship experienced without a union. Emphasize current advantages in wages, benefits, or working conditions the employees may enjoyEmphasize current advantages in wages, benefits, or working conditions the employees may enjoy Emphasize unfavorable aspects of unionism: strikes, union dues, abuses of legal rightsEmphasize unfavorable aspects of unionism: strikes, union dues, abuses of legal rights Use statistics to show that unions commit large numbers of unfair labor practices.Use statistics to show that unions commit large numbers of unfair labor practices. Initiate legal action when union members and leaders engage in unfair labor practicesInitiate legal action when union members and leaders engage in unfair labor practices

20. © 2012 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. 20 of 36 © 2012 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. 20 of 46 How Employees Become Unionized Bargaining UnitBargaining Unit  A group of two or more employees who share common employment interests and conditions and may reasonably be grouped together for purposes of collective bargaining. Exclusive RepresentationExclusive Representation  The legal right and responsibility of the union to represent all bargaining unit members equally, regardless of whether employees join the union or not.

21. © 2012 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. 21 of 36 © 2012 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. 21 of 46 Employer “Don’ts” during Union Organizing Campaigns

22. © 2012 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. 22 of 36 © 2012 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. 22 of 46 NLRB Representation Election Representation Election ProcessRepresentation Election Process  Pre-election Hearing: – NLRB certifies that 30 percent of eligible employees in bargaining unit have signed authorization cards and sets date for election.  Election: – NLRB conducts secret ballot election. If union wins the majority of votes in the election, NLRB certifies the union as the exclusive bargaining unit representative with which the employer must collectively bargain.  Certification on Card Check: – If at least 50 percent of employees within the bargaining unit sign authorization cards, then the union may request recognition by the employer.

23. © 2012 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. 23 of 36 © 2012 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. 23 of 46 Impact of Unionization on Managers Challenges to Management PrerogativesChallenges to Management Prerogatives  may involve such issues as the subcontracting of work, productivity standards, and job content Loss of Supervisory AuthorityLoss of Supervisory Authority  covering wages, benefits, job security, and working hours

24. © 2012 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. 24 of 36 © 2012 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. 24 of 46 Structures, Functions, and Leadership of Labor Unions Craft UnionsCraft Unions  Represent skilled craft workers Industrial UnionsIndustrial Unions  Represent all workers—skilled, semiskilled, unskilled—employed along industry lines Employee AssociationsEmployee Associations  Represent various groups of professional and white- collar employees in labor-management relations.

25. © 2012 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. 25 of 36 © 2012 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. 25 of 46 Structure and Functions of the AFL-CIO GENERAL BOARD Executive members and principal officer of each international union affiliate Meets upon call of federation president of executive council GENERAL BOARD Executive members and principal officer of each international union affiliate Meets upon call of federation president of executive council Standing committees Staff departments Affiliated national and international unions Local unions of national and international unions Local unions affiliated directly with AFL-CIO Affiliated state bodies Local bodies

26. © 2012 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. 26 of 36 © 2012 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. 26 of 46 Structure and Functions of the AFL-CIO (cont.) The “House of Labor”The “House of Labor”  Disseminates labor policy developed by leaders of affiliated unions.  Coordinates organizing activities among affiliated unions.  Provides research and other assistance through its various departments.  Lobbies before legislative bodies on labor subjects  Publicizes the concerns and benefits of unionization  Resolves disputes between different unions

27. © 2012 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. 27 of 36 © 2012 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. 27 of 46 Structure and Functions of National Unions National UnionsNational Unions  set the broad guidelines for governing union members and for formulating collective bargaining goals in dealing with management  establishes the rules and conditions under which the local unions may be chartered Other services:Other services: 1.training of union leaders, 2.legal assistance, 3.leadership in political activity, 4.educational and public relations programs, and 5.discipline of union members.

28. © 2012 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. 28 of 36 © 2012 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. 28 of 46 Structure and Functions of Local Unions Local Union Meeting (Normally Monthly) President Business Representative Various Committee Chairpersons Vice-Presidents Secretary/Treasurer Sergeant at Arms Training and Education Grievance Committee: Chief Steward and Shop Stewards Collective Bargaining Social Local Union Members

29. © 2012 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. 29 of 36 © 2012 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. 29 of 46 Structure and Functions of Local Unions (cont.) Local OfficersLocal Officers  Elected officials who lead the union and serve on the bargaining committee for a new contract. Union StewardUnion Steward  An employee, as a nonpaid union official, represents the interests of members in their relations with management. Business UnionismBusiness Unionism  The term applied to the goals of U.S. labor organizations, which collectively bargain wages, hours, job security, and working conditions.

30. © 2012 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. 30 of 36 © 2012 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. 30 of 46 Labor Relations in the Public Sector Challenges to Public Sector Unionization:Challenges to Public Sector Unionization:  No national-level public sector labor relations laws  Public employees’ wages and working conditions set by law – Collective bargaining for federal employees governed by executive orders and the Civil Service Reform Act of 1978 – Various public civil service systems address public employee complaints or grievances  Substitution of compulsory binding arbitration for the guaranteed right to strike

31. © 2012 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. 31 of 36 © 2012 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. 31 of 46 The Collective Bargaining Process

32. © 2012 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. 32 of 36 © 2012 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. 32 of 46 The Bargaining Process Collective Bargaining ProcessCollective Bargaining Process  The process of negotiating a labor agreement, including the use of economic pressures by both parties. – Preparing for Negotiations – Gathering Bargaining Data – Developing Bargaining Strategies and Tactics – Negotiating the Labor Agreement Bargaining ZoneBargaining Zone  Area within which the union and the employer are willing to concede when bargaining.

33. © 2012 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. 33 of 36 © 2012 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. 33 of 46

34. © 2012 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. 34 of 36 © 2012 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. 34 of 46 The Bargaining Process (cont.) Good Faith Bargaining RequirementsGood Faith Bargaining Requirements  Meetings to be held at reasonable times and places to discuss employment conditions.  Proposals and counterproposals submitted by each party must be realistic and reasonable.  Both parties must sign a written document of the agreement reached through negotiations Interest-based BargainingInterest-based Bargaining  Problem-solving bargaining based on a win-win philosophy and the development of a positive long- term relationship.

35. © 2012 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. 35 of 36 © 2012 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. 35 of 46 Management and Union Power in Collective Bargaining Bargaining PowerBargaining Power  The power of labor and management to achieve their goals through economic, social, or political influence. Union Bargaining PowerUnion Bargaining Power  Strikes, pickets, and boycotts Management Bargaining PowerManagement Bargaining Power  Hiring permanent replacement workers  Continuing operations staffed by management  Locking out employees

36. © 2012 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. 36 of 36 © 2012 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. 36 of 46 The Labor Agreement

37. © 2012 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. 37 of 36 © 2012 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. 37 of 46 Administration of the Labor Agreement The bulk of labor relations activity comes from the day-to-day administration of the agreement because no agreement could possibly anticipate all the forms that disputes may take.The bulk of labor relations activity comes from the day-to-day administration of the agreement because no agreement could possibly anticipate all the forms that disputes may take. Once the agreement is signed, each side will naturally interpret ambiguous clauses to its own advantage. These differences are traditionally resolved through the grievance procedure.Once the agreement is signed, each side will naturally interpret ambiguous clauses to its own advantage. These differences are traditionally resolved through the grievance procedure.

38. © 2012 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. 38 of 36 © 2012 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. 38 of 46

39. © 2012 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. 39 of 36 © 2012 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. 39 of 46 Grievance Arbitration Rights ArbitrationRights Arbitration  Arbitration over interpretation of the meaning of contract terms or employee work grievances. Fair Representation DoctrineFair Representation Doctrine  The doctrine under which unions have a legal obligation to provide assistance to both members and nonmembers in labor relations matters.

40. © 2012 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. 40 of 36 © 2012 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. 40 of 46 Grievance (Rights) Arbitration Submission agreement and awards Rights arbitration and EEO conflicts Issues in deciding to use arbitration as a method for dispute resolution Use of binding arbitration Fair Representation Doctrine Methods for choosing an arbitrator

41. © 2012 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. 41 of 36 © 2012 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. 41 of 46 Arbitration Hearing The arbitrator declares the hearing open and obtains the submission agreement.The arbitrator declares the hearing open and obtains the submission agreement. Parties present opening statements.Parties present opening statements. Each side presents its case using witnesses and evidence; witnesses can be cross examined.Each side presents its case using witnesses and evidence; witnesses can be cross examined. Parties make closing statements.Parties make closing statements. Arbitrator closes hearing and designates date and time for rendering the award.Arbitrator closes hearing and designates date and time for rendering the award.

42. © 2012 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. 42 of 36 © 2012 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. 42 of 46 Arbitration Award Factors arbitrators use to decide cases:Factors arbitrators use to decide cases:  The wording of the labor agreement (or employment policy in nonunion organizations).  The submission agreement (statement of problem to be solved) as presented to the arbitrator.  Testimony and evidence offered during the hearing.  Arbitration criteria or standards (similar to standards of common law) against which cases are judged.

43. © 2012 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. 43 of 36 © 2012 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. 43 of 46 Contemporary Challenges to Labor Organizations Decrease in Union MembershipDecrease in Union Membership  A shift from traditional unionized industries (manufacturing, mining) to high technology industries (computers, pharmaceuticals).  Growth in the employment of part-time and temporary workers.  Growth in small businesses, in which unionization is more costly and difficult to perform.  Globalization of the workforce particularly among low wage employers

44. © 2012 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. 44 of 36 © 2012 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. 44 of 46 Contemporary Challenges to Labor Organizations (cont.) Globalization and Technological ChangeGlobalization and Technological Change  Offshoring: work that was previously carried out in one country moved to another  most of the recent growth in U.S. companies comes from outside of the country Employers need to pay more attention to the relevant stakeholders such as unions, employees and communities in which they operateEmployers need to pay more attention to the relevant stakeholders such as unions, employees and communities in which they operate Most job loss in America is not due to offshoring, but rather to technological changes.Most job loss in America is not due to offshoring, but rather to technological changes.

45. © 2012 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. 45 of 36 © 2012 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. 45 of 46 Key Terms arbitratorarbitrator authorization cardauthorization card bargaining powerbargaining power bargaining unitbargaining unit bargaining zonebargaining zone business unionismbusiness unionism collective bargaining processcollective bargaining process craft unionscraft unions employee associationsemployee associations exclusive representationexclusive representation fair representation doctrinefair representation doctrine grievance proceduregrievance procedure industrial unionsindustrial unions interest-based bargaininginterest-based bargaining labor relations processlabor relations process rights arbitrationrights arbitration unfair labor practices (ULPs)unfair labor practices (ULPs) union shopunion shop union stewardunion steward offshoringoffshoring

46. © 2012 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. 46 of 36 © 2012 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. 46 of 46 Chapter 14 - Learning Outcomes Learning Outcome StatementsRelated Outcomes from Body of the Text 1 Identify and explain the main federal laws that provide the framework for labor relations. What role did the government play in the dispute between NFL owners and players? Which law protects both the NFL owners and players’ union? 2 Explain the reasons employees join unions. While unionization in the private sector is declining, certain industries, such as the hospitality industry, are gaining ground in unionization. If you were a service worker in a hotel, what factors would make you want to join a union? 3 Describe the process by which unions organize employees and gain recognition as their bargaining agent. Despite union avoidance efforts, some employees may still want to unionize. What steps can they take in unionizing? What steps can employers take in trying to stop the union from organizing? 4 Discuss the bargaining process and the bargaining goals and strategies of a union and an employer. If you were a manager in charge of bargaining with the union, what would be the first steps you would take in the collective bargaining process? How would you ensure that the bargaining does not become highly adversarial? 5 Differentiate the forms of bargaining power that a union and an employer may utilize to enforce their bargaining demands. When the NFL and the NFL Players Association came to a deadlock, what forms of bargaining power did each side possess? Who do you think had more power? 6 Describe a typical union grievance procedure and explain the basis for arbitration awards. How would you resolve a complaint about your boss making you do work that is not in your contract? Would you need an arbitrator? 7 Discuss some of the contemporary challenges to labor organizations. Do technology changes and globalization improve the situation of unions in America?