1. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Working with Organized Labor Chapter 15 15-1

2. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chapter 15 Learning Outcomes Understand why employees join unions. Understand the National Labor Relations (Wagner) Act and how the National Labor Relations Board regulates labor practices and union elections. Describe Labor Relations in the U.S. and other parts of the world. Identify Labor Relations strategies and how they affect operational and tactical labor relations decisions. 15-2

3. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chapter 15 Learning Outcomes Describe the three phases of the labor relations process: union organizing, collective bargaining and contract administration Explain on the union grievance procedure works and why the supervisor’s role is critical in achieving sound labor relations with a union Identify the ways in which a union can affect a company’s entire pattern of HRM 15-3

4. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall History of Unions U.S. Labor Unions: 15-4  Legally unprotected until 1935  Employment relationship is private  Employment at will  Employers usually prefer a nonunion workforce  Unions widely supported in 1930s  Not supported as much today

5. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Overview of Unions 15-5  Union  An independent organization that represents employees’ interests and deals with issues such as wages, work hours and working conditions  Employees join unions when:  Dissatisfied with aspect of their job  Feel they lack influence with management  See unionization as a solution

6. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall The Legal Environment Three Important Laws Wagner Act (1935) Taft-Hartley Act (1947) Landrum-Griffin Act (1959) 15-6

7. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall The Wagner Act (NLRB Act) National Labor Relations Board (NLRB) Independent federal agency Certifies elections Investigates unfair labor practice charges Can issue cease and desist order, if management: Interferes with union formation or administration Discriminates against union members Refuses to bargain with the union 15-7

8. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Taft-Hartley and Landrum-Griffin Acts ∎ Taft-Hartley Act ∎ Protects management and workers from union coercion ∎ Prohibits discrimination against non-union ∎ Illegal to refuse to bargain in good faith ∎ Also prohibits unethical practices 15-8 ∎ The Landrum-Griffin Act ∎ Protects union members from union leaders ∎ Unions must have bill of rights and constitution ∎ Union elections regulated by government

9. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Labor Relations in the U.S. 15-9  Accepts capitalist economic structure  Six characteristics  Business unionism  Focus on improving worker well- being  Less so on running the company  Unions structured by type of job  AFL-CIO  Change to Win  Focus on collective bargaining

10. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Labor Relations in the U.S.  Labor contracts  Specify terms of employment and work rules 15-10  Growth of unions in the public sector  Five times higher than private sector  Less bargaining power  Government power is diffuse  Many unions not permitted to strike  Voting provides some political power over employer

11. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Labor Relations in the U.S. Adversarial Nature of Labor-Management Relations Shrinking Union Membership 15-11

12. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Labor Relations in Other Countries 15-12  France—more politically involved  China—low political and economic involvement  Sweden—high both politically and economically  Germany:  Works Councils—joint committees  Codetermination—workers on board of directors  Japan:  Enterprise Unions—all workers in one organization  System fostered by lifelong employment

13. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Labor Relations Strategy 15-13  Labor Relations Strategy  Overall plan for dealing with labor unions  Ranges from open conflict to labor-management cooperation

14. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Labor Relations Strategy Two Basic Strategies  Union Acceptance  Union Avoidance  Union Substitution  Union Suppression 15-14

15. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Labor Relations Process Union Organizing Union solicitation Pre-election conduct Certification election Employee Free Choice Act 15-15

16. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Collective Bargaining  Bargaining Behavior  Must negotiate in “good faith”  Each side develop and present proposals 15-16  Bargaining Power  Bargaining Types  Distributive  Integrative

17. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Guidelines for Integrative Bargaining Try to understand others’ needs and objectives Create a free flow of information Emphasize commonalities Minimize differences Search for solutions that meet all parties’ goals and objectives Develop flexible responses to other proposals 15-17

18. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Bargaining Topics  Mandatory  Wages, hours, and employment conditions 15-18  Permissive  Both parties must agree  E.g. board service, retiree benefits  Illegal  Featherbedding  Discriminatory practices, etc.

19. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Impasses in Bargaining 15-19  Role of Mediator  Economic Strike  Wildcat Strike  Lockout

20. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Contract Administration  Grievance Procedure  Step by step process used to settle disputes  Union steward—advocate for the employee  Arbitration—last step in grievance process 15-20  Two Types of Grievances  Contract interpretation  Employee discipline

21. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall The Manager’s Role in Labor Relations Labor Relations Specialist Negotiate labor contracts Resolve grievances Advise leaders on labor strategies Management Can influence work environment Responsible for implementation of agreements Needs basic understanding of labor laws Often asked to serve on grievance committees 15-21

22. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall The Impact of Unions on HRM 15-22  Without a union managers are more likely to create policies that are focused on efficiency.  With a union management is forced to adopt policies that represent what the majority of the workers in the union want.

23. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall The Impact of Unions on HRM 15-23  Staffing – seniority based  Employee Development  performance appraisals for feedback  Compensation  Higher in union shops  Benefits generally better in union shops  Prefer across the board raises (COLAs)  Employee Relations  Union gives employees a voice

24. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Summary and Conclusions Unions—thrive when employees are dissatisfied and lack influence with management Managers should be aware of labor relations laws Union-management relationship historically adversarial Labor relations in other countries often more political Strategy: acceptance vs. avoidance Substitution better than suppression Unions impact almost every area of HRM 15-24

25. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 15-25 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.