The Dynamics of Labor Relations

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

The Dynamics of Labor Relations

1–1

The Challenges of Human Resources Management

© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 of 36© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 of 46

Test Your Labor Relations Know-How


Test Your Labor Relations Know-How (cont.)

15–4

The Labor Movement1790 Skilled craftsmen organize into trade unions.

1869 The Knights of Labor seek social and political reform.

1886 American Federation of Labor pursues bread-and-butter issues 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.

15–5

The AFL-CIO• The American Federation of Labor and Congress

of Industrial Organizations (AFL-CIO) A voluntary federation of about 56 national and

international labor unions in the United States

• Structure of the AFL-CIO Local unions National unions National federation

• Change to Win Coalition Six large unions that split from the AFL-CIO


Structure and Functions of the AFL-CIO

GENERAL BOARDExecutive members and principal officer of each international union affiliateMeets upon call of federation president of executive council

Standing committees

Staff departments

Affiliated national and international unions

Local unions of national and international unions

Local unions affiliated directly with AFL-CIO

Affiliated state bodies

Local bodies


Structure and Functions of the AFL-CIO (cont.)

• The “House of Labor” Disseminates labor policy developed by leaders

of affiliated unions. Coordinates organizing activities among

affiliated unions. Provides research and other assistance through

its various departments. Lobbies before legislative bodies on labor subjects Publicizes the concerns and benefits of unionization Resolves disputes between different unions


Structure and Functions of National Unions

• National Unions set the broad guidelines for governing union members and for

formulating collective bargaining goals in dealing with management

establishes the rules and conditions under which the local unions may be chartered

• Other services:1. training of union leaders, 2. legal assistance, 3. leadership in political activity,4. educational and public relations programs, and 5. discipline of union members.


Structure and Functions of Local Unions

Local Union Meeting (Normally Monthly)

President

Business Representative

Various Committee Chairpersons

Vice-Presidents

Secretary/Treasurer

Sergeant at Arms

Training and Education

Grievance Committee:

Chief Steward and Shop Stewards

Collective Bargaining

Social

Local Union Members


Structure and Functions of Local Unions (cont.)

• Local Officers Elected officials who lead the union and serve on the

bargaining committee for a new contract.

• Union Steward An employee, as a nonpaid union official, represents

the interests of members in their relations with management.

• Business Unionism The term applied to the goals of U.S. labor

organizations, which collectively bargain wages, hours, job security, and working conditions.


Why Employees Unionize• As a result of their economic needs

(wages and benefits)

• Dissatisfaction with managerial practices

• To fulfill social and status needs.

• Social and leadership concerns

• Conditions favoring employee organization Low morale

Fear of job loss

Arbitrary management actions

15–12

What Do Unions Want?

Increased workplace security for the union

Improved wages, hours, working conditions, job

security, and benefits

Union Bargaining Aims

15–13

Union Security

Closed shop

Open shop

Union shop

Types of Union Security

Agency shop

Membership

maintenance

15–14

Union Security (cont’d)• Right to Work Laws

Section 14(b) of the Taft-Hartley Act Permits states to ban the requirement of union

membership as a condition of employment and to forbid the negotiation of compulsory union membership provisions.

Twenty-three “right to work” states ban all forms of union security which greatly inhibits union formation in those states.


Union Avoidance Practices• Pay• Promote more employees from within• Conduct cultural audits• Offer job rotations and training programs• Share information with employees • Have desirable working conditions


Government Regulation of Labor Relations

• Major Labor Laws Railway Labor Act (RLA) of 1926 Norris LaGuardia Act (Anti-Injunction Act) Wagner Act (National labor Relations Act) of 1935

– National Labor Relations Board Taft-Harley Act (Labor-Management Relations Act)

of 1947 Landrum-Griffin Act (Labor-Management Disclosure

Act) of 1959


Government Regulation of Labor Relations (cont.)

• Railway Labor Act (RLA) of 1926 Purpose of the act is to avoid service interruptions

resulting from disputes between railroads and their operating unions.

National Mediation Board National Railway Adjustment Board

• Norris-LaGuardia Act of 1932 Restricts the ability of employers to obtain an

injunction against unions for their lawful activities.


Wagner (NLRA) Act• Wagner Act (National Labor Relations Act)

of 1935 Protects employee rights to organize and bargain

collectively through representatives of their choice. Created the National Labor Relations Board (NLRB)

to govern labor relations in the United States.– Holds secret ballot union representation elections.– Prevents and remedies unfair labor practices.


Wagner (NLRA) Act (cont.)

• Section 7 of the Act guarantees employee rights: To self-organization, to form, join, or assist labor

organizations, to bargain collectively through freely chosen representatives.

To engage in concerted activities, for the purpose of collective bargaining or other mutual aid or protection.

To refrain from any or all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment.

15–20

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 formation or the administration of labor unions

• To discriminate against employees for legal union activities

• To discharge or discriminate against employees who file unfair practice charges against the company

• To refuse to bargain collectively with their employees’ representatives


Wagner (NLRA) Act (cont.)

• Section 8 of the Wagner Act outlawed employer practices that deny employees their rights and benefits: Interference with Section 7 rights Domination of a union (company union) Discrimination against union members Arbitrary discharge of union members Refusal to bargain with the union


Amendments to the Wagner Act

• Taft-Hartley Act (The Labor-Management Relations Act) of 1947 Balances rights and duties of labor and management in

collective bargaining by defining unfair union practices. Created the Federal Mediation and Conciliation Service

(FMCS) to help resolve negotiating disputes.

• Landrum-Griffin Act (Labor-Management Reporting and Disclosure Act) of 1959 Safeguards union member rights and prevents

racketeering and other unscrupulous practices by employers and union officers.


Taft-Hartley Act (Unfair Union Practices )

• Unions are prohibited from: Interfering with Section 7 rights of employees Interfering with representation elections Influencing employers to discriminate with regard to union

membership Refusal to bargain collectively with employer Interference with certified employee representative’s

relationship with employer Assessment of excessive initiation fees and dues on

bargaining unit members “Featherbedding”


Landrum-Griffin Act (Bill of Rights of Union Members)

• Union members have the right to: Nominate candidates for union office Vote in union elections or referendums Attend union meetings Participate in union meetings and vote on union

business Examine union accounts and records Bring suit against union officers as necessary to

protect union funds


The Labor Relations Process

15–26

The Union Drive and Election• Step 1. Initial Contact

The union determines employees’ interest in organizing, and sets up an organizing committee. Labor relations consultants Union salting

• Step 2. Obtaining Authorization Cards 30% of eligible employees in an appropriate

bargaining unit must sign cards authorizing the union to petition the NLRB for an election.

15–27

The Organizing Drive• Obtaining Authorization Cards

Let the union seek a representation election. Designate the union as a bargaining

representative in all employment matters. State that the employee has applied

for membership in the union and will be subject to union rules and bylaws.

Can be collected and distributed by unions through the Internet.


United Food and Commercial Workers International Union Authorization Card

15–29

The Organizing Drive (cont’d)• Employer Responses to Organizing

Can attack the union on ethical and moral grounds and cite the cost of union membership

Cannot make promises of benefits Cannot make unilateral changes in terms and

conditions of employment that were not planned to be implemented prior to the onset of union organizing activity

Can inform employees of their right to revoke their authorization cards

15–30

The Organizing Drive (cont’d)• Union Activities During Organizing

Unions can picket the firm, subject to three constraints: It must file a petition for an election within 30 days

after the start of picketing. The firm cannot already be lawfully recognizing

another union. There cannot have been a valid NLRB election

during the past 12 months.

15–31

The Union Drive and Election (cont’d)• Step 3. Hold a Hearing

Consent election Employer chooses not to contest union recognition at all.

Stipulated election The employer chooses not to contest:

– The union’s right to an election– Scope of the bargaining unit– Which employees are eligible to vote in the election

Contesting the union’s right to an election An employer can insist on an NLRB hearing to determine

if employees wish to elect a union to represent them.


The Labor Relations Process

15–33

NLRB Form 852: Notice of RepresentationHearing

15–34

NLRB Hearing Officer’s Duties• Determining if the record indicates there

is enough evidence to hold an election Did 30% of the employees in an appropriate

bargaining unit sign the authorization cards?

• Deciding what the bargaining unit will be The bargaining unit is the group of employees

that the union will be authorized to represent and bargain for collectively.

15–35

The Union Drive and Election (cont’d)• Step 4. The Campaign

Both sides present their platforms.

• Step 5. The Election Held within 30 to 60 days after the NLRB issues

its Decision and Direction of Election. The election is by secret ballot; the NLRB provides

and counts the ballots. The union becomes the employees’ representative

by getting a majority of the votes cast in the election.

15–36

Sample NLRB Ballot

15–37

How to Lose a NLRB Election• Reason 1. Asleep at the Switch• Reason 2. Appointing a Committee• Reason 3. Concentrating on Money and Benefits• Reason 4. Industry Blind Spots• Reason 5. Delegating Too Much to Divisions

15–38

The Union Drive and Election (cont’d)• The Supervisor’s Role

Unfair labor practices by supervisors: Could cause the NLRB to hold a new election after the

company has won a previous election. Could cause the company to forfeit the second election and

go directly to contract negotiation.

15–39

Union Avoidance: What Not to Do

• Watch what you say. Angry feelings of the moment may get you in trouble.• Never threaten workers with what you will do or what will happen if a union comes in. Do not say, for example, that

the business will close or move, that wages will go down or overtime will be eliminated, that there will be layoffs, etc.• Don’t tell union sympathizers that they will suffer in any way for their support. Don’t terminate or discipline workers

for engaging in union activities.• Don’t interrogate workers about union sympathizers or organizers.• Don’t ask workers to remove union screensavers or campaign buttons if you allow these things for other organizations.• Don’t treat pro-union or anti-union workers any differently.• Don’t transfer workers on the basis of union affiliation or sympathies.• Don’t ask workers how they are going to vote or how others may vote.• Don’t ask employees about union meetings or any matters related to unions. You can listen, but don’t ask for details.• Don’t promise workers benefits, promotions, or anything else if they vote against the union.• Avoid becoming involved—in any way—in the details of the union’s election or campaign, and don’t participate

in any petition movement against the union.• Don’t give financial aid or any support to any unions.

Any one of these practices may result in a finding of “unfair labor practices,” which may in turn result in recognition of a union without an election, as well as fines for your firm.

Human resources professionals must be very careful to do the following during union activities at their firms:


Employer Tactics Opposing Unionization

• Stressing favorable employer-employee relationship experienced without a union.

• Emphasize current advantages in wages, benefits, or working conditions the employees may enjoy

• Emphasize unfavorable aspects of unionism: strikes, union dues, abuses of legal rights

• Use statistics to show that unions commit large numbers of unfair labor practices.

• Initiate legal action when union members and leaders engage in unfair labor practices


Employer “Don’ts” during Union Organizing Campaigns


Labor Relations in the Public Sector

• Challenges to Public Sector Unionization: No national-level public sector labor relations laws Public employees’ wages and working conditions

set by law– Collective bargaining for federal employees governed by

executive orders and the Civil Service Reform Act of 1978– Various public civil service systems address public

employee complaints or grievances

Substitution of compulsory binding arbitration for the guaranteed right to strike


The Collective Bargaining Process


The Bargaining Process• Collective Bargaining Process

The process of negotiating a labor agreement, including the use of economic pressures by both parties.– Preparing for Negotiations– Gathering Bargaining Data– Developing Bargaining Strategies and Tactics– Negotiating the Labor Agreement

• Bargaining Zone Area within which the union and the employer are

willing to concede when bargaining.


The Bargaining Process (cont.)

• Good Faith Bargaining Requirements Meetings to be held at reasonable times and places to

discuss employment conditions. Proposals and counterproposals submitted by each

party must be realistic and reasonable. Both parties must sign a written document of the

agreement reached through negotiations

• Interest-based Bargaining Problem-solving bargaining based on a win-win

philosophy and the development of a positive long-term relationship.


Management and Union Power in Collective Bargaining

• Bargaining Power The power of labor and management to achieve their

goals through economic, social, or political influence.

• Union Bargaining Power Strikes, pickets, and boycotts

• Management Bargaining Power Hiring permanent replacement workers Continuing operations staffed by management Locking out employees

15–48

Bargaining ItemsMandatory Permissible Illegal Rates of payWagesHours of employmentOvertime payShift differentialsHolidaysVacationsSeverance payPensionsInsurance benefitsProfit-sharing plansChristmas bonusesCompany housing, meals,

and discountsEmployee securityJob performanceUnion securityManagement–union

relationshipDrug testing of employees

Indemnity bondsManagement rights as to union

affairsPension benefits of retired

employeesScope of the bargaining unitIncluding supervisors in the

contractAdditional parties to the

contract such as the international union

Use of union labelSettlement of unfair labor

chargesPrices in cafeteriaContinuance of past contractMembership of bargaining

teamEmployment of strike breaker

Closed shopSeparation of

employees based on race

Discriminatory treatment


Administration of the Labor Agreement

• The bulk of labor relations activity comes from the day-to-day administration of the agreement because no agreement could possibly anticipate all the forms that disputes may take.

• Once the agreement is signed, each side will naturally interpret ambiguous clauses to its own advantage. These differences are traditionally resolved through the grievance procedure.

15–51

Grievances• Grievance

Any factor involving wages, hours, or conditions of employment that is used as a complaint against the employer

• Sources of Grievances Discipline Seniority Job evaluations Work assignments Overtime Vacations Incentive plans Holiday pay Problem employees Absenteeism Insubordination Plant rules

15–52

Sample OnlineGrievance Form

15–53

Grievance Procedure• Grievant and shop steward meet with supervisor.

If not resolved, employee files formal grievance

• Grievant and shop steward meet with supervisor’s boss. If grievance is not resolved, meeting with higher-level managers.

• If not resolved, matter goes to arbitration.

15–54

Handling Grievances: Do1. 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 provisions

allegedly 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 grievant’s 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.

15–55

Handling Grievances: Don’t1. Discuss the case with the union steward alone—the grievant should be

there.2. Make arrangements with individual employees that are inconsistent with

the 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 discharge

of 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.


Grievance Arbitration• Rights Arbitration

Arbitration over interpretation of the meaning of contract terms or employee work grievances.

• Fair Representation Doctrine The doctrine under which unions have a legal

obligation to provide assistance to both members and nonmembers in labor relations matters.


Grievance (Rights) Arbitration

Submission agreement and awards

Rights arbitration and EEO conflicts

Issues in deciding to use arbitration as a method for dispute resolution

Use of binding arbitration

Fair Representation Doctrine

Methods for choosing an arbitrator


Arbitration Hearing• The arbitrator declares the hearing open and obtains

the submission agreement.

• Parties present opening statements.

• Each side presents its case using witnesses and evidence; witnesses can be cross examined.

• Parties make closing statements.

• Arbitrator closes hearing and designates date and time for rendering the award.


Arbitration Award• Factors arbitrators use to decide cases:

The wording of the labor agreement (or employment policy in nonunion organizations).

The submission agreement (statement of problem to be solved) as presented to the arbitrator.

Testimony and evidence offered during the hearing.

Arbitration criteria or standards (similar to standards of common law) against which cases are judged.


Contemporary Challenges to Labor Organizations

• Decrease in Union Membership A shift from traditional unionized industries

(manufacturing, mining) to high technology industries (computers, pharmaceuticals).

Growth in the employment of part-time and temporary workers.

Growth in small businesses, in which unionization is more costly and difficult to perform.

Globalization of the workforce particularly among low wage employers


Contemporary Challenges to Labor Organizations (cont.)

• Globalization and Technological Change Offshoring: work that was previously carried out in one

country moved to another most of the recent growth in U.S. companies comes from

outside of the country

• Employers need to pay more attention to the relevant stakeholders such as unions, employees and communities in which they operate

• Most job loss in America is not due to offshoring, but rather to technological changes.

15–62

Organizing professionals and white-collar

employees

Pushing “card check” for union recognition

Filing class action lawsuits to support

workers

Forming alliances with overseas unions

New Union Tactics

15–63

The Union Movement Today and Tomorrow• Reasons for the Decline in Union Membership

Laws have taken over much of the union’s 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 resisting

union-organizing efforts.

• Upswing Coming? Unions have been more aggressive lately in organizing

public sector workers and white-collar workers.

15–64

Public Employees and Unions• Size of Public Unions

The National Education Association; the American Federation of State, County, and Municipal Employees; and the American Federation of Teachers—are among the largest 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

The Dynamics of Labor Relations

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