1. Labor Relations OS352 HRM Fisher April 13, 2005

2. 2 Agenda History of unions Basic union concepts and laws Organizing process Bargaining and contract administration processes

3. 3 History of Unions Started in late 1700s in US (printers, carpenters, etc.) Purpose was to protect worker rights (pay, working hours) Less effective in depressions Decrease in union membership attributed to increase in service sector, high tech jobs

4. 4 Current Status Declining membership – In 1945, 35.5% of workforce was unionized (high point) – Currently 12.9% of the workforce (www.afl-cio.org) Largest association of unions in US is AFL-CIO – Formed in 1955 – Comprised of 66 specific union organizations – Over 13 million members – Goal is to increase membership by 3% a year

5. 5 Right-to-Work Laws State laws prohibiting: – Union shops: Employees are required to join the union within a certain amount of time (30 days) after beginning employment. – Agency shops: Employees are required to pay union dues but do not have to join the union. – Maintenance of membership: Employees who do join the union are required to remain members for a certain period of time. New York does not have right-to-work laws

6. 6 Benefits of Unions For employees – Higher wages – Better benefits – Increased job security – More job training and skill development For employers (!) – Potential for wage concessions – Cooperation in joint workplace efforts

7. 7 National Labor Relations Act (Wagner Act) – 1935 Guarantees the right of employees to organize and bargain collectively with employer Established National Labor Relations Board – Provide certification election oversight – Prevent and remedy unfair labor practices – Does not act on its own

8. 8 The Certification Process Union contact with employees Union campaign for authorization cards Request for election Determination of bargaining unit by NLRB Pre-election campaign Elections Certification of union and start of collective bargaining Source: William D. Todor, Professor of Human Resource Management, The Ohio State University Bargaining Unit: a group of employees certified by the NLRB to be able to be included in the union.

9. 9 Voting process Monitored by NLRB Employers are not allowed to intimidate workers Delta flight attendants case – 5,520 Yes votes, 89 No votes – 19,003 eligible voters – Non-votes count as No – Delta accused of interfering with election

10. 10 What can management do during a pre-election campaign?  Discuss the history of unions and make factual statements about strikes, violence, or the loss of jobs at plants that have unionized.  Discuss their own experience with unions.  Advise workers about the costs of joining and belonging to unions.  Remind employees of the company benefits and wages they receive without having to pay union dues.  Explain that union representation will not protect workers against discharge for cause.  Advise employees that unions often resort to work stoppage to press their demands and that such tactics can cost them money.

11. 11 Unfair Labor Practices (Section 8 of NLRA) Interference, restraint, or coercion to prevent employees from organizing or bargaining collectively Domination or interference with union or providing financial support for it. Discrimination against employees in order to discourage union membership. Discharging or retaliating against an employee who has filed charges or given testimony under the NLRA. Refusal to bargain collectively with a representative of employees (good faith bargaining).

12. 12 Collective Bargaining Union negotiates on behalf of members Contracts typically include provisions on – Pay – Benefits – Work rules – Grievance resolutions More difficult to reach agreement on first contract – Can also be difficult in times of changing economic conditions Must bargain “ in good faith ”

13. 13 Grievances Charge that contract has been violated – Discipline – Discharge Typical process is escalating – Contact union steward – Discuss problem with supervisor – Discuss problem with HR – Involve management and union executives – Arbitration hearing

14. 14 Conflict Resolution Mediation Arbitration May have work stoppages if contract is not resolved – Slowdowns, strikes are employee driven – Lockouts are employer driven – Regulations about replacement workers

15. 15 A different kind of union- management relationship Saturn ’ s collaborative relationship – Increased quality – Productivity – Employee and customer satisfaction – Returned to standard contract in 1999 Similar strategy used at NUMMI (joint venture between GM and Toyota)

16. 16 For next class No new reading assignment: In class exercise integrating and applying concepts from the course. Will also discuss finding high-quality sources for final essays.