1. © 2008 by Prentice Hall12-1 Bargaining Unit Consists of employees (not necessarily union members) recognized by employer or certified by administrative agency as appropriate for representation by labor organization for purposes of collective bargaining

2. © 2008 by Prentice Hall12-2 Steps for Forming a Bargaining Unit External Environment Internal Environment Signing of Authorization Cards Petition for Election Election Campaign Election and Certification

3. © 2008 by Prentice Hall12-3 Signing Authorization Cards Document indicating employee wants to be represented by labor organization in collective bargaining Is there sufficient interest on part of employees to justify unit? Evidence of interest when at least 30% of employees in workgroup sign authorization cards Usually need 50% to proceed

4. © 2008 by Prentice Hall12-4 Petition for Election After authorization cards have been signed, petition for election made to regional NLRB office NLRB will ordinarily direct that election be held within 30 days

5. © 2008 by Prentice Hall12-5 Election Campaign Both union and management usually promote causes actively Cannot threaten loss of jobs or benefits Cannot misstate important facts Illegal to incite racial or religious prejudice

6. © 2008 by Prentice Hall12-6 Election and Certification NLRB monitors secret-ballot election Board issues certification of results to participants If majority of employees vote for union, NLRB will certify

7. © 2008 by Prentice Hall12-7 Collective Bargaining Fundamental to management-organized labor relations in United States Process does not require either party to make concessions; only compels them to bargain in good faith

8. © 2008 by Prentice Hall12-8 Forms of Bargaining Structures One company dealing with a single union Several companies dealing with single union Several unions dealing with single company Several companies dealing with several unions

9. © 2008 by Prentice Hall12-9 Collective Bargaining Process Preparing for Negotiation Bargaining Issues Preparing for Negotiation Reaching the Agreement Negotiation Breakdowns? Ratifying the Agreement Administration of the Agreement Overcoming Breakdowns EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT Yes No

10. © 2008 by Prentice Hall12-10 Psychological Aspects of Collective Bargaining Difficult because process is adversarial situation and must be dealt with as such Psychological aspects vitally important

11. © 2008 by Prentice Hall12-11 Bargaining Issues Mandatory bargaining issues - Wages, hours, etc. Permissive bargaining issues - May be raised but neither side may insist that they be bargained over Prohibited bargaining issues - Statutorily outlawed

12. © 2008 by Prentice Hall12-12 Bargaining Issues Document that results from collective bargaining process is labor agreement or contract Recognition Management Rights Union Security Compensation and Benefits Grievance Procedure Employee Security

13. © 2008 by Prentice Hall12-13 Recognition Appears at beginning of labor agreement Identifies union that is recognized as bargaining representative Describes bargaining unit

14. © 2008 by Prentice Hall12-14 Management Rights Section that is often (but not always) written into labor agreement which spells out rights of management

15. © 2008 by Prentice Hall12-15 Union Security Closed Shop - Arrangement whereby union membership is prerequisite to employment Union Shop - Requires all employees become members of union after specified period Maintenance of Membership - Must continue memberships until termination of agreement

16. © 2008 by Prentice Hall12-16 Union Security (Cont.) Agency Shop - Nonunion members pay union equivalent of membership dues as kind of tax Exclusive Bargaining Shop - Company must deal with union that has achieved recognition, but employees not obligated to join Open Shop - Equal terms for union members and nonmembers Dues Checkoff - Company agrees to withhold union dues