1. PowerPoint Presentation by Charlie Cook The University of West Alabama Copyright © 2009 Cengage Learning. All rights reserved. Administrative Issues Chapter 8

2. © 2008 Cengage Learning. All rights reserved.8–2 Administrative Issues Contract Negotiations and Administration Job Security and Seniority Employee Training Work Restructuring Safety and Health Accommodating Disabilities Technological Change

3. © 2008 Cengage Learning. All rights reserved.8–3 Technological Change and Job Protection Technological ChangeTechnological Change  Involves the introduction of labor-saving machinery.  Produces changes in material handling and work flow.  Is a nonmandatory bargaining issue. AutomationAutomation  Machines and automatic controls displace humans who formerly did the same work.  Alters job characteristics and required skills.

4. © 2008 Cengage Learning. All rights reserved.8–4 Phases of Technological Change Development Phase Resource Allocation Phase Implementation Phase

5. © 2008 Cengage Learning. All rights reserved.8–5 Phases of Technological Change Development PhaseDevelopment Phase  Choices are made about the design and configuration of the new technology. Resource Allocation PhaseResource Allocation Phase  Organizational units’ claims for resources are evaluated. Implementation PhaseImplementation Phase  The new technology is constructed, put in service, and modified if necessary.

6. © 2008 Cengage Learning. All rights reserved.8–6 How Unions Protect Job Interests from the Effects of Technological Change Negotiating contract language.Negotiating contract language. Lobbying for or against government regulation and assistance programs.Lobbying for or against government regulation and assistance programs. Providing direct services to members to assist them in adjusting to or coping with change.Providing direct services to members to assist them in adjusting to or coping with change. Becoming voluntarily involved in the technology selection process.Becoming voluntarily involved in the technology selection process.  High Performance Work Organization (HPWO)  Saves and creates jobs and is globally competitive

7. © 2008 Cengage Learning. All rights reserved.8–7 Positive Effects of Technological Change Higher productivity that produces greater wealth with less effortHigher productivity that produces greater wealth with less effort The elimination of menial and dangerous jobsThe elimination of menial and dangerous jobs Higher wages and better working conditionsHigher wages and better working conditions Shorter hoursShorter hours Increased skill levels that increase pay and result in a higher standard of livingIncreased skill levels that increase pay and result in a higher standard of living

8. © 2008 Cengage Learning. All rights reserved.8–8 Negative Effects of Technological Change Elimination and deskilling of jobs that lowers pay and reduces job securityElimination and deskilling of jobs that lowers pay and reduces job security Displaces intellectual skills of human operatorsDisplaces intellectual skills of human operators Incurs higher capital investment requirementsIncurs higher capital investment requirements Increased productivity results in market oversupply, causing product prices to decreaseIncreased productivity results in market oversupply, causing product prices to decrease Increases the capability for monitoring employee activities and performanceIncreases the capability for monitoring employee activities and performance

9. © 2008 Cengage Learning. All rights reserved.8–9 Job Security and Personnel Changes Job Security Work Rules Job Content Working Hours Seniority Wages Training Job Assignment

10. © 2008 Cengage Learning. All rights reserved.8–10 Plant Closures, Downsizing, and WARN Worker Adjustment and Retraining Notification Act (WARN) of 1988Worker Adjustment and Retraining Notification Act (WARN) of 1988  Covers employers with 100 or more employees.  Requires 60 days’ advance notice of plant closing or major layoff involving one-third of the workforce.  Exempts firms in financial collapse and unforeseen operational difficulties.  Has no designated agency to enforce the act; employees and unions must sue their employer to recover damages.

11. © 2008 Cengage Learning. All rights reserved.8–11 Alternatives to Layoffs Voluntary leaveVoluntary leave Early retirementEarly retirement Working hours reductionWorking hours reduction Rotating layoffsRotating layoffs Work relocationWork relocation Work sharingWork sharing Pay freezesPay freezes Pay cutsPay cuts Work rule changesWork rule changes New productsNew products Normal attritionNormal attrition Hiring freezesHiring freezes

12. © 2008 Cengage Learning. All rights reserved.8–12 Subcontracting, Outsourcing, and Work Transfer SubcontractingSubcontracting  Contracting work to an outside vendor when the employer cannot do all or part of the work or when the vendor can do the work at a lower cost. OutsourcingOutsourcing  Contracting work that the employer does not do to an outside vendor to reduce costs. OffshoringOffshoring  Movement of work from a company location within the United States to locations outside of the United States Work Transfer/RelocationWork Transfer/Relocation  Moving work to another facility or location.

13. © 2008 Cengage Learning. All rights reserved.8–13 Subcontracting and the LMRA Subcontracting is not a mandatory bargaining issue when:Subcontracting is not a mandatory bargaining issue when:  It is motivated solely by economic conditions.  It is a common method of business in the industry.  It follows previous similar subcontracting practices.  It has no adverse impact on current bargaining-unit employees.  The union has been given the opportunity to bargain over changes in subcontracting practices.

14. © 2008 Cengage Learning. All rights reserved.8–14 Subcontracting and Arbitration Factors in Management’s Right to Subcontract:Factors in Management’s Right to Subcontract:  Presence and clarity of labor contract language concerning management’s subcontracting rights  Established past subcontracting practices  History of prior subcontracting negotiations  The intended duration of the subcontracting decision  Employer’s business justification for subcontracting  Evidence of union animus in the subcontracting decision

15. © 2008 Cengage Learning. All rights reserved.8–15 Work Relocation Employers do not have a duty to bargain over relocated work if:Employers do not have a duty to bargain over relocated work if:  Performance of the relocated work is significantly different from the previous location.  Labor costs were not a factor in relocating the work.  The union could not have offered significant labor cost concessions to affect the relocation decision. Duty to bargain over the effects of work relocationDuty to bargain over the effects of work relocation  Transfer rights, severance pay, pension rights

16. © 2008 Cengage Learning. All rights reserved.8–16 Work Assignments and Jurisdiction Jurisdictional Disputes Occur When:Jurisdictional Disputes Occur When:  Two or more unions representing different bargaining units claim work for their members.  Workers claim work that should be rightfully theirs has been assigned outside the bargaining unit.  Workers within the bargaining unit disagree among themselves over work assignment.

17. © 2008 Cengage Learning. All rights reserved.8–17 Exhibit 8.1Example of a Work Jurisdiction Clause It is the Intent of the parties to this agreement to protect the work performed by employees in the bargaining unit. The employer recognizes that it is Important and desirable to use Its own equipment and drivers to the greatest extent possible before using subhaulers and/or noncompany trucks. The union recognizes that under certain conditions, such as those dictated by customer demands, equipment requirements, daily dispatch determinations, materials to be handled and similar factors, that subhaulers and/or noncompany trucks are necessary and have been so used throughout the Industry for many years. The employer, in accordance with the above, must however, determine the number, type and location of Its working equipment in conformity with its business requirements. The employer further must be able to determine, in keeping with sound business practices, the extent to which It will replace equipment that Is too costly to operate, obsolete, or damaged. Under these condition the employer agrees the subhaulers and/or noncompany trucks will not be used as a subterfuge to defeat the protection of the bargaining unit work. In keeping with the above, the union recognizes that the employer will use such subhauier and/or noncompany trucks as required by location and classification only after all the available company trucks at such locations and in similar classifications have been initially dispatched.

18. © 2008 Cengage Learning. All rights reserved.8–18 Jurisdictional Disputes and the NLRB Factors considered by the NLRB in resolving jurisdictional disputes:Factors considered by the NLRB in resolving jurisdictional disputes:  Skills and work experience required to perform the work  Union certifications already awarded by the NLRB  Industry and local practices  Prior arbitration decisions  The employer’s desires  Cost effectiveness and efficiency in assigning the work to a particular unit or craft

19. © 2008 Cengage Learning. All rights reserved.8–19 Work Scheduling FlextimeFlextime  Allows an employee to start and finish work at his or her discretion, as long as the specified total number of hours per week or per day are worked and the employee is present at work during a core-hour period. Compressed WorkweekCompressed Workweek  Consists of four 10-hour work days with three days off each week or eight 9-hour days and one 8-hour day permitting one extra day off every two weeks.

20. © 2008 Cengage Learning. All rights reserved.8–20 Seniority and Personnel Changes SenioritySeniority  An employee’s continuous service with the firm.  An objective measure that is readily determined.  Possessed by all employees covered by the contract.  Used to apportion out rights unrelated to job performance:  Benefit rights: eligibility for and scheduling of vacation time  Job rights: bidding on jobs, layoffs, shift preferences, bumping during layoffs  Superseniority  Protects certain union officials from layoff to assure continuity in the functioning of the union.

21. © 2008 Cengage Learning. All rights reserved.8–21 Legal Issues Involving Seniority Supreme Court DecisionsSupreme Court Decisions  Bona fide (lawful) seniority systems are permitted.  Employees can be awarded retroactive seniority as a remedy for past discriminatory practices.  The use of seniority in layoffs is permitted where the layoff may or does adversely impact minorities.  Reverse discrimination claims are not valid if the affirmative action plan:  Is a negotiated settlement between the union and employer.  Does not harm majority employees (loss of jobs).  Doesn’t exclude majority employees from advancement opportunities.

22. © 2008 Cengage Learning. All rights reserved.8–22 Types of Employee Training Formal ProgramsFormal Programs  Apprenticeships  New employee orientation  Safety and health  Basic skills  Job-specific skills  Workplace practices Informal TrainingInformal Training  On-the-job  Mentoring

23. © 2008 Cengage Learning. All rights reserved.8–23 Work Restructuring Work Restructuring ProgramsWork Restructuring Programs  Employee involvement  Worker participation  Cross-training  Multiskilling  Self-managed work teams Benefits of Innovative PracticesBenefits of Innovative Practices  Increased energy, creativity, and dignity for employees  Increase profits for employers

24. © 2008 Cengage Learning. All rights reserved.8–24 Safety and Health Factors prompting the inclusion of safety and health clauses in labor agreements:Factors prompting the inclusion of safety and health clauses in labor agreements:  The standards and provisions of the Occupational Safety and Health Act (OSHA) of 1970  Emergence of new biological, ergonomic, and chemical hazards in the workplace  Rising health-care treatment costs  Increases in legal claims by injured workers

25. © 2008 Cengage Learning. All rights reserved.8–25 Americans with Disabilities Act (ADA) Reasonable AccommodationReasonable Accommodation  Requires employers to make adjustments to job for qualified persons with disabilities who can carry out the essential functions of the job.  Cannot conflict with other employees’ seniority rights.  Does not require the lowering of behavior or performance standards. Persons With Disabilities DefinedPersons With Disabilities Defined  Having an impairment limiting major life functions.  Having a record of impairment.  Being regarded as having an impairment.

26. © 2008 Cengage Learning. All rights reserved.8–26 Key Terms Technological changeTechnological change AutomationAutomation High performance work organization (HPWO)High performance work organization (HPWO) DeskillingDeskilling Job securityJob security FeatherbeddingFeatherbedding Worker Adjustment and Retraining Notification Act (WARN)Worker Adjustment and Retraining Notification Act (WARN) SubcontractingSubcontracting OutsourcingOutsourcing OffshoringOffshoring Jurisdictional disputesJurisdictional disputes FlextimeFlextime Compressed workweekCompressed workweek SenioritySeniority Benefit rightsBenefit rights Competitive job rightsCompetitive job rights Bumping rightsBumping rights SupersenioritySuperseniority Work sharingWork sharing Work restructuringWork restructuring Occupational Safety and Health Act (OSHA)Occupational Safety and Health Act (OSHA) Americans with Disabilities Act (ADA)Americans with Disabilities Act (ADA) Person with disabilitiesPerson with disabilities Reasonable accommodationReasonable accommodation