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EMPLOYEE RELATIONS AND

COLLECTIVE BARGAINING

Chapter - 6

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The Labor Movement

1790 Skilled craftsmen organize into trade unions.

1869 The Knights of Labor seek social and political reform.

1886 American Federation of Labor pursues bread-and-butterissues and improved working conditions.

1935 National Labor Relations Act fosters organizing

and the rapid growth of labor unions.

1947 Taft-Hartley Act regulates union activities.

1955 AFL and CIO merge.

1970s Union membership peaks and begins to steadily decline.

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Why Do Workers Organize?

Solidarity

To get their fair share

Improved wages, hours, working conditions, andbenefits

To protect themselves from management whims

Conditions Favoring Employee Organization

Low morale

Fear of job loss

Arbitrary management actions

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What Do Unions Want?

Increased workplace

security for the union

Improved wages, hours,

working conditions, job

security, and benefits

Union Bargaining Aims

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Unfair Employer Labor Practices

To interface with, restrain, or coerce employees

in exercising their right of self-organization

To dominate or interfere with either the formationor the administration of labor unions

To discriminate against employees for legal unionactivities

To discharge or discriminate against employees whofile unfair practice charges against the company

To refuse to bargain collectively with their employeesrepresentatives

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Unfair Union Labor Practices

To restrain or coerce employees from exercising

their guaranteed bargaining rights.

To cause an employer to discriminate againstemployees in order to encourage or discouragetheir membership in a union.

To refuse to bargain in good faith with the employerabout wages, hours, and other employment conditions.Certain strikes and boycotts are also unfair practices.

To engage in featherbedding (requiring an employer

to pay an employee for services not performed).

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The Collective Bargaining Process

What Is Collective Bargaining?

Both management and labor are required by lawto negotiate wages, hours, and terms andconditions of employment in good faith.

What Is Good Faith Bargaining?

Both parties communicate and negotiate.

They match proposals with counterproposalsin a reasonable effort to arrive at an agreement.

Neither party can compel the other to agree to

a proposal or to make any specific concessions.

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Violations of Good Faith Bargaining

1. Surface bargaining

2. Inadequate concessions

3. Inadequate proposals and demands

4. Dilatory tactics

5. Imposing conditions6. Making unilateral changes in conditions

7. Bypassing the representative

8. Committing unfair labor practices during negotiations

9. Withholding information

10. Ignoring bargaining items

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Preparing for Negotiations

Sources of Negotiating Information

Local and industry pay and benefits comparisons

Distribution of demographics of the workforce

Benefit costs, overall earnings levels, and the amount andcost of overtime

Cost of the current labor contract and the increased costtotal,per employee, and per hourof the unions demands

Grievances and feedback from supervisors

Attitude surveys of employees

Informal conferences with local union leaders

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Classes of Bargaining Items

Mandatory

items

Illegal

items

Bargaining Item

Categories

Voluntary

items

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TABLE 151 Bargaining Items

Mandatory Permissible Illegal

Rates of pay

WagesHours of employment

Overtime pay

Shift differentials

Holidays

Vacations

Severance pay

Pensions

Insurance benefits

Profit-sharing plans

Christmas bonuses

Company housing, meals,and discounts

Employee security

Job performance

Union security

Managementunionrelationship

Drug testing of employees

Indemnity bonds

Management rights as to unionaffairs

Pension benefits of retiredemployees

Scope of the bargaining unit

Including supervisors in thecontract

Additional parties to thecontract such as theinternational union

Use of union label

Settlement of unfair laborcharges

Prices in cafeteria

Continuance of past contract

Membership of bargaining team

Employment of strike breaker

Closed shop

Separation of employeesbased on race

Discriminatory treatment

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Bargaining Stages

1. Presentation of initial demands

Both parties are usually quite far apart on some issues.

2. Reduction of demands

Each side trades off some of its demands to gain others.

3. Subcommittee studies

The parties form joint subcommittees to try to work outreasonable alternatives.

4. An informal settlement

Each group goes back to its sponsor.

Union members vote to ratify the agreement.5. Signing the formal agreement

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Bargaining Hints

1. Be sure to set clear objectives for every bargaining

item, and be sure you understand the reason for each.

2. Do not hurry.

3. When in doubt, caucus with your associates.

4. Be well prepared with data supporting your position.5. Strive to keep some flexibility in your position.

6. Dont concern yourself just with what the other partysays and does; find out why.

7. Respect importance of face saving for the other party.

8. Be alert to the real intentions of the other partynotonly for goals, but also for priorities.

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Bargaining Hints (contd)

9. Be a good listener.

10. Build a reputation for being fair but firm.

11. Learn to control your emotions and use themas a tool.

12. As you make each bargaining move, be sure youknow its relationship to all other moves.

13. Measure each move against your objectives.

14. Remember that collective bargaining is a compromise

process. There is no such thing as having all the pie.

15. Try to understand the people and their personalities.

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When Bargaining Stops

An Impasse

Usually occurs because one party is demandingmore than the other will offer.

Sometimes an impasse can be resolved througha third partya disinterested person such as amediator or arbitrator.

If the impasse is not resolved:

The union may call a work stoppage, or strike,to put pressure on management.

Management may lock out employees.

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Resolution of an Impasse

Mediation Arbitration

Third Party Involvement

Fact finding

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Third-Party Involvement

Mediation

A neutral third party (mediator) tries to assistthe principals in reaching an agreement byholding meetings with each party to findcommon ground for further bargaining.

The mediator is a go-between and has noauthority to dictate terms or make concessions.

The mediator communicates assessmentsof the likelihood of a strike, the possiblesettlement packages available, and the like.

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FIGURE 155FCMS Form F-53:Online Request Formfor Federal Mediation

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Third-Party Involvement (contd)

Fact Finder

A neutral party who studies the issues in adispute and makes a public recommendationfor a reasonable settlement.

Arbitration

An arbitrator often has the power to determineand dictate the settlement terms.

Binding arbitration can guarantee a solutionto an impasse.

Interest arbitration for labor agreements

Rights arbitration defines the terms ofexisting contracts

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Resolving an Impasse: Union Strikes

Economic strike

Unfair labor practice strike

Wildcat strike

Sympathy strike

Types of Strikes

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Pressure Tactic Alternatives

Unions

Picketing Corporate campaign

Boycott

Inside games

Injunctions

Employers

Replacement workers

Lockouts

Injunctions

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Main Sections of a Contract Agreement

Management rights

Union security and automatic payroll dues deduction

Grievance procedures

Arbitration of grievances

Disciplinary procedures

Compensation rates

Hours of work and overtime

Benefits: vacations, holidays, insurance, pensions

Health and safety provisions

Employee security seniority provisions

Contract expiration date

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Grievances

Grievance

Any factor involving wages,hours, or conditions ofemployment that is usedas a complaint against theemployer

Sources of Grievances

Discipline Seniority

Job evaluations

Work assignments

Overtime

Vacations

Incentive plans

Holiday pay

Problem employees

Absenteeism Insubordination

Plant rules

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FIGURE 156Sample OnlineGrievance Form

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Grievance Procedure

Grievant and shop steward meet with supervisor.

If not resolved, employee files formal grievance

Grievant and shop steward meet with supervisors boss.

If grievance is not resolved, meeting with higher-level managers.

If not resolved, matter goes to arbitration.

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Handling Grievances: Do

1. Investigate and handle each case as though it may eventually

result in arbitration.2. Talk with the employee about his or her grievance; give the

person a full hearing.

3. Require the union to identify specific contractual provisionsallegedly violated.

4. Comply with the contractual time limits for handling the grievance.5. Visit the work area of the grievance.

6. Determine whether there were any witnesses.

7. Examine the grievants personnel record.

8. Fully examine prior grievance records.9. Treat the union representative as your equal.

10. Hold your grievance discussions privately.

11. Fully inform your own supervisor of grievance matters.

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Handling Grievances: Dont

1. Discuss the case with the union steward alonethe grievant should bethere.

2. Make arrangements with individual employees that are inconsistent withthe labor agreement.

3. Hold back the remedy if the company is wrong.

4. Admit to the binding effect of a past practice.

5. Relinquish to the union your rights as a manager.

6. Settle grievances on what is fair. Stick to the labor agreement.

7. Bargain over items not covered by the contract.

8. Treat as subject to arbitration claims demanding discipline or dischargeof managers.

9. Give long written grievance answers.

10. Trade a grievance settlement for a grievance withdrawal.

11. Deny grievances because your hands are tied by management.

12. Agree to informal amendments in the contract.

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The Union Movement Todayand Tomorrow

Reasons for the Decline in Union Membership

Laws have taken over much of the unions role

as the workers protector.

Automation, globalization, and technology have

reduced jobs in unionized manufacturing sectors.

Unions have failed to organize new plants.

Management has become better at resistingunion-organizing efforts.

Upswing Coming?

Unions have been more aggressive lately in organizingpublic sector workers and white-collar workers.

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Public Employees and Unions

Size of Public Unions

The National Education Association; the AmericanFederation of State, County, and Municipal Employees; andthe American Federation of Teachersare among thelargest U.S. unions.

Laws Supporting Public Sector Organizing Executive Order 10988

Recognized organizing rights of public sector employees

Title VII of the Civil Service Reform Act of 1978

(known as the Federal Labor Relations Act) Established the Federal Labor Relations Authority

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Organizing professionals and

white-collar employees

Pushing card check for

union recognition

Filing class action lawsuits to

support workers

Forming alliances withoverseas unions

New UnionTactics

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High-Performance Work Systems,Employee Participation, and Unions

To avoid having participation programs viewedas sham unions:

Involve employees in the formation of programs.

Emphasize that programs exist only to address

issues such as quality and productivity.

Dont establish programs when union organizing

activities are beginning.

Use volunteers and rotate membership.

Minimize management participation in programs toavoid interference or the perception of domination.