Strategy for Human Resource Management

Lecture 29

HRM 765

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Last Lecture• Union• Impact of unionization • Labor contracts typically stipulate: (wages, hours, terms and conditions of employment, limit, management’s

discretion • Why Employees Join Unions (Higher wages and benefits, Greater job security, Influence over work rules,

Compulsory membership)• Union shops • Agency shops

• Collective Bargaining • Objective and Scope of Collective Bargaining (wages, hours , terms and conditions of employment , grievance

procedure )

• The Collective Bargaining Process– Preparation – Negotiations– Agreement– Union ratification– Contract administration

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Topic

Understanding Labor Relations and Collective Bargaining

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Grievance Procedure

• A complaint-resolving process contained in union contracts.

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Collective Bargaining

Interpreting the contract and grievance resolution– Grievance procedures are specified in the

contract and outline the steps for resolving complaints as quickly as possible by starting at the lowest level with the immediate supervisor.

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Collective BargainingInterpreting the contract and

grievance resolution– Grievance (rights) arbitration is

typically the final step in the grievance process

– Disputes that cannot be resolved are resolved by an arbitrator, or third party, whose decision is final.

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Collective Bargaining

Sample Grievance Procedure 7

Collective Bargaining

Monitoring

• Both union and management keep track of how effective the current contract is and any need for changes.

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Failure to Reach Agreement

• Economic strike– An impasse that results from labor and management’s inability to

agree on the wages, hours, and terms and conditions of a new contract.

• Wildcat strike – An unauthorized and illegal strike that occurs during the terms of an

existing contract.• Lockout :

– A situation in labor–management negotiations whereby management prevents union members from returning to work.

• Conciliation and mediation Impasse resolution techniques using an impartial third party to help management and the union to resolve the conflict.

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Collective Bargaining

Failure to Reach Agreement – Strikes versus lockouts

• Economic strikes - labor and management cannot reach agreement before the current contract expires.

• Wildcat strikes - unauthorized and illegal strikes that occur because of worker dissatisfaction during an existing contract.

• Lockouts - when organizations deny unionized workers access to their jobs during an impasse.

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Collective BargainingFailure to Reach Agreement• Impasse-Resolution Techniques:

Used when labor and management cannot reach agreement. – Conciliation and mediation involve a third

party to either keep negotiations going or make non-binding settlement recommendations.

– Fact-finding involves a neutral third-party who conducts a hearing and recommends a non-binding settlement.

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Collective Bargaining

Interest arbitration • Involves a panel of one neutral, one

management and one union representative who hear testimony and render a decision to settle a contract negotiation dispute.

• Primarily in public-sector bargaining. • Binding only if there is unanimous

agreement.

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Critical Issues for Unions TodayUnion membership:

Where have the members gone?

• Union membership in the U.S. reached a high of 36% in the early 1940s; there has been a steady decline since then.

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Critical Issues for Unions Today

Union membership: Where have the members gone?

• Reasons for decline in membership include:– greater diversity of the work force– growth of the service sector– diminished financial resources of unions– anti-union pressures resulting from increased

competitiveness– layoffs of large numbers of union workers– hiring of replacement workers for strikers

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Critical Issues for Unions TodayUnion membership: Where

have the members gone?– Unions are changing some of

their organizing tactics and may currently be gaining public support.

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Critical Issues for Unions Today

Labor-Management Cooperation – Some unions recognize that they can gain

more by cooperating with management rather than fighting.

Sunshine laws in some states mandate that labor-management negotiations be open to the public.

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International Labor Relations

The European Community – Brings together a dozen or more labor

relations systems. – Countries wishing to do business in Europe

must keep up with changing labor legislation.

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Unionized Percentage

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Summary

• Grievance : A complaint-resolving process contained in union contracts.• Grievance procedure :A complaint-resolving process contained in union

contracts.• Monitoring• Grievance procedures– Grievance (rights) arbitration– Conciliation and mediation

• Strikes versus lockouts – Economic strikes - labor and management cannot reach agreement before

the current contract expires. – Wildcat strikes - unauthorized and illegal strikes that occur because of worker

dissatisfaction during an existing contract.

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Summary• Lockouts - when organizations deny unionized workers access to

their jobs during an impasse.Union membership: Where have the members gone?

Labor-Management Cooperation – Some unions recognize that they can gain more by cooperating with

management rather than fighting.

Sunshine laws in some states mandate that labor-management negotiations be open to the public.

Unionized Percentage

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