CHAP-6 - HRM
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Transcript of CHAP-6 - HRM
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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.