1. Union-Management Relationships in Perspective
Chapter 1
Union-Management Relationships in Perspective

2. Phases in the Labor Relations Process
Recognition of rights and responsibilities
Legal protections and constraints on union and management representatives
Negotiation of the labor agreement
Strategies, tactics, and dispute resolution techniques
Administration of the negotiated labor agreement
Management administers the agreement.
Union monitors management’s compliance with the terms of the agreement.
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3. Elements in the Labor Relations Process
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Exhibit 1.2

4. Labor Relations’ Focal Point: Work Rules
Work Rule Categories
Rules governing compensation
Wages, overtime payments, vacations, shift premiums
Rules specifying employees’ and employers’ job rights and obligations
No strike/no lockout, performance standards, promotion qualifications, job specifications, layoff provisions
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5. Labor Relations’ Focal Point: Work Rules
Characteristics of Work Rules
Common or unique
Vague or specific
Change over time
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6. Labor Relations’ Focal Point: Work Rules
Examples
Professional Baseball - The Player and the Club recognize and agree that the Player’s participation in certain other sports may impair or destroy his ability and skill as a baseball player.
Television - The latest version of the script will be made accessible to the Player in the casting office 24 hours in advance of a scheduled reading or immediately after the scheduling of the interview, whichever last occurs.
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7. Participants in the Labor Relations Process
Management Officials
Corporate, divisional, plant-level managers
Management consultants, “union avoidance” experts
Union Officials
Elected officers and representatives
Employees
Vote to organize and vote to ratify negotiated agreements
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8. Participants…(cont’d)
The Government
Executive, legislative, and judicial branches
Actions (laws and regulations) can change labor-management relationships.
Federal, state, and local levels of government
Third-Party Neutrals
Mediators - Facilitate bargaining activities
Arbitrators - Consider disputed issues and make decisions binding on both labor and management
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9. Constraints or Influences on Work Rules
State of the Economy
Inflation, interest rates, unemployment, and productivity affect job security.
Labor Market
Skills and wage levels in the relevant labor market
Demand for labor and shifts in labor market sectors
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10. Constraints or Influences…(cont’d)
Product Market
Vulnerability of disruption to product supply to customers from the potential for labor strikes
Use of outsourced materials and products
Financial Market
Availability and cost of funds for investment
Exchanges rates that affect plant location choice
Funds borrowed to support ESOPs
Capital investments in nonunion and offshore facilities
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11. Constraints or Influences…(cont’d)
Technology
Equipment changing or eliminating skills required
Pace and scheduling of the work
Work environment and tasks
Information exchange
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12. Constraints or Influences…(cont’d)
International Forces
North American Free Trade Agreement (NAFTA)
U.S. firms’ overseas investments
Globalization and the global economy (24/7)
Multinational firms’ plant location strategies
Low-wages in newly industrializing countries
Rising volume of imports
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13. Constraints or Influences…(cont’d)
Public Opinion
Influential individuals and organizations
Attitudes and traditions of the community
Affecting Public Opinion
Monitoring and reacting to negative comments made in the media
Getting organized labor’s positive message out to the community
Forming alliances with various groups in the community
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14. Union Membership Trends 1960 – 2002
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15. Union Membership Is Declining
Structural Changes in the Labor Force
Shift from manufacturing to knowledge-based jobs
Growth in professional, technical, and service workers
Shifts in workforce demographics
Employment growth (80%) in smaller firms
Increases in the use of contingent workers
Economic recessions
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16. Union Membership (cont’d)
Organizational Practices
Union-avoidance practices by firms
Improved human resources practices
Companies’ Use of Current Law Governing the Workplace
Legal loopholes favoring management
Insufficient resources
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