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Chapter 14 Labor Relations and Collective Bargaining

In brief: This chapter gives a history of the labor movement, outlines the basics of labor law, and reviews the procedures of labor elections, collective bargaining, and contract administration. A look into the future of unionism is also attempted. interesting issues: Union membership has declined in the past few decades. However, unions are targeting professional and other jobs not traditionally unionized. tudents need to consider the implications of this shift as well as the dynamics driving it and the likelihood that it will succeed.

Lecture Outline
I. Introduction: The Labor Movement
A. A !rief History of the American Union "ovement #. (. -. 0. #$%& killed 'raftsmen into Trade Unions #)*% +nights of ,abor #))* amuel .ompers A/, #%-&1s a. b. c. !. '. 2oosevelt 3ew 4eal 3ational 5ndustrial 2ecovery Act

6hy 4o 6orkers 7rganize8 Table #0.# on page 9#) 6hat 4o Unions 6ant8 #. Union ecurity a. b. c. d. e. (. closed shop union shop agency shop open shop maintenance of membership arrangement

5mproved 6ages, Hours, and !enefits for "embers


The A/,:'57 #. (. 6hat 5t 5s The tructure of the A/,:'57


Chapter 14: Labor Relations and Collective Bargaining

a. b. c. local union national union national federation


nions and the La!

A. !. !ackground ;eriod of trong <ncouragement= The 3orris:,a.uardia Act >#%-(? and the 3ational ,abor 2elations or 6agner Act >#%-9? #. (. '. Unfair <mployer ,abor ;ractices /rom #%-9 to #%0$

;eriod of "odified <ncouragement 'oupled with 2egulation= The Taft:Hartley Act >#%0$? #. (. -. 0. Unfair Union ,abor ;ractices 2ights of <mployees 2ights of <mployers 3ational <mergency trikes


;eriod of 4etailed 2egulation of 5nternal Union Affairs= The ,andrum:.riffin Act >#%9%? #. (. !ill of 2ights for Union "embers 2ules for Union <lections

<. /. chapter.

,abor ,aw Today .lobal H2"= Unions .o .lobal ;age 9($ of the te@t= ee 4iscussion !o@es solutions at the end of this



nion "rive and #lection

tep #. 5nitial 'ontact #. ,abor 2elations 'onsultants


tep (. 7btaining Authorization 'ards #. 6hat "anagement 'an 4o


tep -. Hold a Hearing


Human Resource Management

#. (. -. 4. <. /. 5s There <nough <vidence to Hold an <lection8 6hat is the Appropriate !argaining Unit8 7ther 5ssues

tep 0. The 'ampaign tep 9. The <lection How to ,oose an 3,2! <lection #. (. -. 0. 9. Asleep at the witch Appointing a 'ommittee 'oncentrating on "oney and !enefits 5ndustry and !lind pots 4elegating Too "uch to 4ivisions or !ranches

.. H. 5.

The upervisor1s 2ole 2ules 2egarding ,iterature and olicitation .uidelines for <mployers 6ishing to tay Union:/ree #. (. -. 0. 9. *. $. ). %. ;ractice ;reventive <mployee 2elations 2ecognize the 5mportance of ,ocation eek <arly 4etection 4o 3ot Aolunteer !eware of the Authorization 'ards ;resent Bour 'ase ;ostpone the <lection ;ick Bour Time 'arefully 'onsider Bour 7ptions


4ecertification <lections= 6hen <mployees 6ant to 7ust Their Union


The Collective Bargaining %rocess

A. 6hat is 'ollective !argaining8


Chapter 14: Labor Relations and Collective Bargaining


6hat is .ood /aith8 #. 6hen is !argaining 3ot 5n .ood /aith8

'. 4.

The 3egotiating Team !argaining 5tems #. (. -. Aoluntary !argaining 5tems 5llegal !argaining 5tems "andatory !argaining 5tems


!argaining tages #. (. tages of !argaining Hints on !argaining


5mpasses, "ediation, and trikes #. (. 5mpasse 4efined Third ;arty 5nvolvement a. b. c. -. trikes a. b. c. d. 0. 9. economic strike unfair labor practice strike wildcat strike sympathy strike mediation fact:finding arbitration

;reparing for the trike 7ther Alternatives a. b. c. corporate campaign boycott lockout

.. H.

The 'ontract Agreement 5tself 'hanges to <@pect After !eing Unionized


Human Resource Management $. Contract &dministration: 'rievances

A. !. The 5mportant 2ole of 'ontract Administration 6hat Are the ources of .rievances8 #. '. 4. 4. Always Ask= 6hat 5s the 2eal ;roblem8

The .rievance ;rocedure 4iversity 'ounts= .ender 4ifferences in 4isputes and 4ispute 2esolution ;ages 90*:90$ of te@t. ee 4iscussion !o@es solutions at end of this chapter. .uidelines for Handling .rievances #. (. 4eveloping the ;roper <nvironment ome .uidelines= 4o1s and 4on1ts


The (uture o)
A. !.


Unions /all 7n Hard Times 6hat1s 3e@t for Unions8 /igure #0:% on page 90% shows the A/,:'57s strategy for gaining membership

'. 4. chapter. <.

Unions and <mployee ;articipation ;rograms The High:;erformance 7rganization= Union:"anagement 2elations ;age 99& of the te@t= ee 4iscussion !o@es solutions at the end of this Are <mployee ;articiaption ;rograms Unfair ,abor ;ractices8 #. Toward D afeE ;articipation ;rograms

"iscussion Bo*es
'lobal +RM:
>page 9($?

nions 'o 'lobal


Chapter 14: Labor Relations and Collective Bargaining

This bo@ outlines the efforts that unions are making on the global front. This includes cooperative efforts with unions in other countries to win higher wages there and help keep companies from relocating simply for lower wages. everal e@amples are cited.

"iversit, Counts: 'ender "i))erences in "isputes and "ispute Resolution

>page 9$$? This dialogue bo@ discusses some of the differences in types of disputes at work that affect women or men. The study indicates that women are more affected by interpersonal disputes that are not as easily resolved by formal or informal methods ... thus they often take lateral transfers and fall behind in raises or training.

The +igh-%er)ormance Organi.ation:

>page 99&?

niion Management Relations

The e@perience of the 4epartment of <nergy, 7ak 2idge 7perations is given as an e@ample of the impact of successful employee:participation:based labor:management relations. This organization has used their TF efforts as a means to bring labor and management together to work collaboratively.

/e, Terms
closed shop A form of union security in which the company can hire only union members. This was outlawed in #%0$ but still e@ists in some industries >such as printing?. >page 9(&? A form of union security in which the company can fire nonunion people, but they must join the union after a prescribed period of time and pay dues. >5f they do not, they can be fired.? >page 9(&? A form of union security in which employees who do not belong to the union must still pay union dues on the assumption that union efforts benefit all workers. >page 9(&? ;erhaps the least attractive type of union security from the union1s point of view, the workers decide whether or not to join the unionG and those who join must pay dues. >page 9(&?

union shop

agenc, shop

open shop

0orris-La'uardia &ct

This law marked the beginning of the era of strong encouragement of unions and guaranteed to each employee the right to bargain collectively Hfree from interference, restraint, or coercion.H >page 9(#? The agency created by the 6agner Act to investigate unfair labor

0ational Labor Relations


Human Resource Management

Board 10LRB2 practice charges and to provide for secret:ballot elections and majority rule in determining whether or not a firm1s employees what a union. >page 9(#? This law banned certain types of unfair labor practices and provided for secret:ballot elections and majority rule for determining whether or not a firm1s employees want to unionize. >page 9(#? Also known as the ,abor "anagement 2elations Act, this law prohibited union unfair labor practices and enumerated the rights of employees as union members. 5t also enumerated the rights of employers. >page 9((? trikes that might Himperil the national health and safety.H >page 9(0? The law aimed at protecting union members from possible wrongdoing on the part of their unions. >page 9(0? 2efers to a union organizing tactic by which workers who are in fact employed full:tim by a union as undercover organizers are hired by unwitting employers. >page 9()? 5n order to petition for a union election, the union must show that at least -&I of employees may be interested in being unionized. <mployees indicate this interest by signing authorization cards. >page 9(%? The group of employees the union will be authorized to represent. >page 9-&? The process through which representatives of management and the union meet to negotiate a labor agreement. >page 9-)? A term that means both parties are communicating and negotiating and that proposals are being matched with counterproposals with both parties making every reasonable effort to arrive at agreements. 5t does not mean that either party is compelled to agree to a proposal. >page 9-)?

0ational Labor Relations 1or 3agner2 &ct

Ta)t-+artle, &ct

national emergenc, stri4es Landrum-'ri))in &ct union salting

authori.ation cards

bargaining unit collective bargaining good )aith bargaining

voluntar, bargaining items illegal bargaining items

5tems in collective bargaining over which bargaining is neither illegal nor mandatory::neither party can be compelled against its wishes to negotiate over those items. >page 90&? 5tems in collective bargaining that are forbidden by lawG for e@ample, the clause agreeing to hire Hunion members e@clusivelyH would be illegal in a right:to:work state. >page 90&?


Chapter 14: Labor Relations and Collective Bargaining

mandator, bargaining 5tems in collective bargaining that a party must bargain over if they are introduced by the other party::for e@ample, pay. >page 90&? 5ntervention in which a neutral third party tries to assist the principals in reaching agreement. >page 90(? The most definitive type of third:party intervention, in which the arbitrator usually has the power to determine and dictate the settlement terms. >page 90(? A stike that results from a failure to agree on the terms of a contract that involve wages, benefits, and other conditions of employment. >page 90(? A stike aimed at protesting illegal conduct by the employer. >page 90(? An unauthorized strike occurring during the term of a contract. >page 90(? A strike that takes place when one union strikes in support of another. >page 90(? An organized effort by the union that e@erts pressure on the corporation by pressuring the companyJs other unions, shareholders, directors, customers, creditors, and government agencies, often directly. >page 90-? the combined refusal by employees and other interested parties to buy or use the employer1s products. >page 90-? A refusal by the employer to provide opportunities to work. >page 90-? Any factor involving wages, hours, or conditions of employment that is used as a complaint against the employer. >page 909?

mediation arbitration

economic stri4e

un)air labor practice stri4e !ildcat stri4e s,mpath, stri4e corporate campaign

bo,cott loc4out grievance

"iscussion 5uestions:
1. #*plain the structure and purpose o) the &(L-CIO. The A/,:'57 is a voluntary federation of about #&& national and international labor unions in the United tates. There are three layers in the structure of the A/,:'57= the local union, the national union, and the federation. The A/,:'57 acts a spokesman for labor and has accumulated a great deal of political clout. >pages 9(&:9(#?


Human Resource Management

6. "iscuss )ive sure !a,s to loose an 0LRB election. The five sure ways to loose an election are listed and described in the te@t= #? Asleep at the switchG (? Appointing a committeeG -? 'oncentrating on money and benefitsG 0? 5ndustry blind spotsG and 9? 4elegating too much to divisions or branches. >pages 9-0:9-9? 7. "escribe important tactics ,ou !ould e*pect the union to use during the union drive and election. 'ontacting and soliciting employees off the job and during breaks, picketing, using consultants to improve their public image, advertising, news spots, and forming an organizing committee of employees who they feel will be good leaders. >pages 9($:9--? 4. Brie)l, e*plain !h, labor la! has gone through a c,cle o) repression and encouragement. ,abor law has gone through cycles of repression and encouragement because of the changing views in congress, the public, and the judiciary on the e@tent to which legalized collective bargaining is deemed to be a good approach to the economic situation facing the country as well as the views of personal and corporate rights. 'hanging public attitudes, values, and economic conditions clearly impact labor law, just as they impact law in every area. >pages 9(#:9($? 8. #*plain in detail each step in a union drive and election. <ach step is described in detail in the te@t= #? 5nitial contact involves the union determination of the employees1 interest in organizing and forming an organizing committeeG (? 7btaining authorization cards is where the union seeks to obtain enough signatures on authorization cards to petition the 3,2! to conduct an electionG -? Holding a hearing is done by the 3,2! to determine the appropriate bargaining unit and the legality of the authorization cardsG 0? The campaign is where both sides present the issues to convince employees to vote one way or the otherG and 9? The election is conducted by the 3,2! and is by secret ballot. >pages 9($:9--? 9. 3hat is meant b, good )aith bargaining: 3hen is bargaining not in good )aith: .ood faith bargaining means that both parties are communicating and negotiating and that proposals are being matched with counterproposals with both parties making every reasonable effort to arrive at agreements. Ten e@amples of violations of good faith bargaining are listed on pages 9-):9-%. ;. "e)ine impasse< mediation< and stri4e< and e*plain the techni=ues that are used to overcome an impasse. 5mpasse occurs when the parties are not able to move further toward settlement. "ediation is intervention in which a neutral third party tries to assist the principals in reaching agreement. A strike is the withdrawal of labor. An impasse might be overcome through mediation, fact:finders, arbitration, or the economic pressures of a strike or lock:out. >pages 90#:90(?

Individual and 'roup &ctivities:

1. >ou are a supervisor in a small manu)acturing plant. The union contract covering most o) ,our emplo,ees is about to e*pire. 3or4ing individuall, or in groups< discuss ho! to prepare )or union contract negotiations. Bou need to know what is good faith bargaining and what constitutes a violation of good faith bargaining. Although as a supervisor you will not likely be involved in the negotiations, you can commit violations of good faith bargaining like making a unilateral change in working conditions, or the


Chapter 14: Labor Relations and Collective Bargaining

commission of an unfair labor practice. Also you need to be a vehicle to give information about employee attitudes and concerns to those conducting the bargaining. The list on page 90# gives a good summary of who to prepare for bargaining. >pages 90&:90#? 6. >ou are the president o) a small )irm o) 7? emplo,ees. 3hile ,ou are not unioni.ed< ,ou !ould li4e to have an appeals process that !ould serve a purpose similar to that o) a grievance procedure. 3or4ing individuall, or in groups< prepare a presentation describing !hat this appeals process might entail. !ecause the perview of grievances is Hany factor involving wages, hours, or conditions of employment that is used as a complaint against the employerH you must be very careful to not involve employees in the formation and running of the grievance procedure to avoid the appearance of a sham union >pages 99#:99(?. The procedure should have several stages in which the employee can appeal to higher and higher levels of management to hear their case. 5n some cases, a well constructed grievance procedure can involve the rotating selection of a panel of peers to hear and decide the case. >pages 90*:90$?

Cases and #*ercises

#*periential #*ercise: nion >page 990?

This e@ercise sets up a situation in which a supervisor has reported to the H2 director that there have been unionization efforts in her department. he describes what has happened, what employees have said, and what other supervisors have said and done. The Kuestion for the students is what H2 4irector Art Tipton should do ne@t. The most pressing issue to deal with right away is the apparent fact that supervisors are engaging in unfair labor practices. Art must hold a meeting with supervisors immediately to instruct them in what they can and cannot do. ,ists of items are on the bottom of page 9(%, and on pages 9-9:9-*. After everyone has been instructed on what they can and cannot do, the organization can turn to the issue of how to avoid becoming unionized. There are two lists in the te@t that help with this= DHow to ,oose an 3,2! <lectionE on pages 9-0 L 9-* as well as D.uidelines for <mployers 6ishing to tay Union:/reeE on pages 9-*:9-$.

Case Incident: "isciplinar, &ction >page 999?

#. &s the arbitrator< do ,ou thin4 the emplo,er had @ust cause to discipline the emplo,ee: 3o, the employer did not have just cause. The task of directing and ordering employees to do tasks is a management task and is not a union task. "anagement abrogated its responsibilities in asking the union to do a task that is a reserved management right and duty. (. I) the unionAs opposition to the 5uest )or 5ualit, program encouraged the emplo,ees not to participate< !h, shouldnAt the union be held responsible )or directing the emplo,ees to attend: As stated in the previous Kuestion, directing employees is a management duty and right, it is not one that can be abrogated to the union at will. "anagement should direct the employees to attend, then discipline them if they do not. The union is not reKuired to be supportive of all management programs or directions.


Human Resource Management

Case &pplication: #mpo!erment through &ssignment (le*ibilit, >page 99*?

The ;aper 'orporation of America >;'A? had just negotiated an agreement with two unions. Under the agreement, workers from one union could perform tasks normally done by members of the other union. The purpose was to improve the fle@ibility of the workforce to increase productivity. 6orkers shared the financial reward of improvements in productivity. 6orkers were allowed to turn down work they considered unsafe. The first week, two workers turned down an assignment of unloading a truck as they said it was unsafe. The two had in fact unloaded the truck in the past under the old contract. "anagement accused them of just being lazy. The fle@ibility committee was asked to render an opinion on the incident by answering the following Kuestions= #. 3ere the actions o) the set-up supervisor correct: 3h, or !h, not . The set:up supervisor was certainly correct in asking them to load the truck. There is no evidence from the case that the supervisor that the supervisor knew the workers had unloaded that truck before. The criteria for A/ reKuired the supervisor to get agreement on five Kuestions. The workers disagreed with Kuestion one. (. 3ere the actions o) he t!o shipping department !or4ers correct: 3h, or !h, not: The two workers, if they had safely unloaded trucks in the past were not acting in good faith. >There is no evidence in the case as to whether unloading the truck reKuires any special skills?. This leads to the impression that the workers were in fact just declining to do an assignment because they didnJt want to do it. -. 3ere the actions o) the department head correct: 3h, or !h, not: The department head acted in a very confrontational manner. The A/ process is clearly defined as reKuiring five steps. The department manager seems to be putting pressure on employees to say yes, even if they have reservations. He is in effect adding a si@th step, D<very time you say no your performance will be reviewed.E 0. 3hat !ould have been a correct !a, )or each o) the above parties to act: The supervisor may have asked for clarification from the employees as to what specifically they felt was unsafe about the job. 5f the supervisor knew they had done the work before, he should have asked a few Kuestions to probe why they could do that work then and not now. 5f he felt he was being mislead by the employees he could have mentioned that he planned on discussing this matter further with his management team. The shipping workers either needed to identify what specifically they felt was unsafe or to accept the work. 5f the work was unsafe, they could have been trained in the knowledge, skills and abilities to safely unload the truck so they could do it in the future. The department chair needed to separate his reaction to the two employees from the policy issue of how to treat all employees. !y pressuring workers to say yes or be reviewed, he may be pressuring workers to take tasks with which hey feel a little uncomfortable. This could lead to resentment and lower performance, or worse, industrial accidents. 9. "o ,ou thin4 this incident !ill a))ect the success)ul use o) &( in the mill: 3h, or !h, not: Bes, workers may feel they are being coerced or forced into being fle@ible. The literature strongly suggests that coercion increases resistance to change. The action of the department head might dramatically slow the change process .


Chapter 14: Labor Relations and Collective Bargaining

*. 3hat e))ects do ,ou thin4 the success)ul use o) &(< allo!ing !or4ers to participate in decision ma4ing< !ill have on empo!erment and organi.ational culture o) %C& in the long term: 5f implemented successfully, the company should see an improvement in productivity. This improvement may show up in a variety of ways. /or e@ample, the cross training the occurs may make it unnecessary for the company to hire replacement help to cover vacations. 5t may reduce overtime by allowing slack resources to be redirected toward overworked areas. The workers may begin to get a better sense of how the company operates and how individual jobs contribute to overall goals. This could in turn improve job satisfaction and retention. $. 3hat does the case tell use about implementing change< particularl, empo!erment< in organi.ations: 'hange is not easy. 5t reKuires the cooperation of the parties involved. 5t does not happen merely by issuing a policy statement. 7nce a change plan has been devised it will likely still face resistance in some sectors. "anagement should anticipate the types of resistance to change and discuss how they will be handled before the change is implemented.