CHAPTER 12: LABOR RELATIONS Copyright © 2005 South-Western. All rights reserved. footer

CHAPTER 12:

LABOR RELATIONS

Copyright © 2005 South-Western. All rights reserved. footer

Copyright © 2005 South-Western. All rights reserved. 1–2

Union MembershipUnion MembershipUnion MembershipUnion Membership

• Decline in union membershipDecline in union membership– Workers have become disenfranchised from unionsWorkers have become disenfranchised from unions– Many unionized firms have moved operations Many unionized firms have moved operations

outside USoutside US– Change in nature of work and technology has Change in nature of work and technology has

eliminated many traditionally unionized manual labor eliminated many traditionally unionized manual labor jobsjobs

– Unions have often refused to be flexible enough to Unions have often refused to be flexible enough to allow organizations to grow and adapt to changes in allow organizations to grow and adapt to changes in industriesindustries

• Decline in union membershipDecline in union membership– Workers have become disenfranchised from unionsWorkers have become disenfranchised from unions– Many unionized firms have moved operations Many unionized firms have moved operations

outside USoutside US– Change in nature of work and technology has Change in nature of work and technology has

eliminated many traditionally unionized manual labor eliminated many traditionally unionized manual labor jobsjobs

– Unions have often refused to be flexible enough to Unions have often refused to be flexible enough to allow organizations to grow and adapt to changes in allow organizations to grow and adapt to changes in industriesindustries


Why Study Labor Relations?Why Study Labor Relations?Why Study Labor Relations?Why Study Labor Relations?

• Unionization is norm in many industries Unionization is norm in many industries

• Contract settlements with unionized competitors Contract settlements with unionized competitors may impact on HR practices, programs, and may impact on HR practices, programs, and policies needed to remain competitivepolicies needed to remain competitive

• Managers of non-unionized firms need to know Managers of non-unionized firms need to know – Why and how employees form unions Why and how employees form unions – Legal requirements of representation and collective Legal requirements of representation and collective

bargaining processbargaining process

• Unionization is norm in many industries Unionization is norm in many industries

• Contract settlements with unionized competitors Contract settlements with unionized competitors may impact on HR practices, programs, and may impact on HR practices, programs, and policies needed to remain competitivepolicies needed to remain competitive

• Managers of non-unionized firms need to know Managers of non-unionized firms need to know – Why and how employees form unions Why and how employees form unions – Legal requirements of representation and collective Legal requirements of representation and collective

bargaining processbargaining process


Why Employees OrganizeWhy Employees OrganizeWhy Employees OrganizeWhy Employees Organize

• Employees seek to form unions because of Employees seek to form unions because of perceived economic, social and political benefits perceived economic, social and political benefits of organizationof organization

– Higher or more equitable wagesHigher or more equitable wages– Better or expanded benefitsBetter or expanded benefits– Greater job or employment security Greater job or employment security – Affiliation and sense of community Affiliation and sense of community – Sense of power/influence in numbers Sense of power/influence in numbers

• Employees seek to form unions because of Employees seek to form unions because of perceived economic, social and political benefits perceived economic, social and political benefits of organizationof organization

– Higher or more equitable wagesHigher or more equitable wages– Better or expanded benefitsBetter or expanded benefits– Greater job or employment security Greater job or employment security – Affiliation and sense of community Affiliation and sense of community – Sense of power/influence in numbers Sense of power/influence in numbers


Strategic Challenges of Organized Strategic Challenges of Organized LaborLabor

Strategic Challenges of Organized Strategic Challenges of Organized LaborLabor

• Organized labor can have significant impact on Organized labor can have significant impact on organizational performanceorganizational performance

– Employee/management power balance is redistributedEmployee/management power balance is redistributed– Brings in “outside players” whose support must be gained Brings in “outside players” whose support must be gained

for any new and ongoing management initiativesfor any new and ongoing management initiatives– Unionized work setting can greatly impact organization’s Unionized work setting can greatly impact organization’s

cost structurecost structure• Payroll expenses Payroll expenses

• Efficiency of work processesEfficiency of work processes

• Organized labor can have significant impact on Organized labor can have significant impact on organizational performanceorganizational performance

– Employee/management power balance is redistributedEmployee/management power balance is redistributed– Brings in “outside players” whose support must be gained Brings in “outside players” whose support must be gained

for any new and ongoing management initiativesfor any new and ongoing management initiatives– Unionized work setting can greatly impact organization’s Unionized work setting can greatly impact organization’s

cost structurecost structure• Payroll expenses Payroll expenses

• Efficiency of work processesEfficiency of work processes


National Labor Relations Act (NLRA)National Labor Relations Act (NLRA)National Labor Relations Act (NLRA)National Labor Relations Act (NLRA)

• NLRA, a.k.a. the NLRA, a.k.a. the Wagner Act,Wagner Act, (1935) (1935)– Provided rights for employees to organize, elect Provided rights for employees to organize, elect

representatives, and collectively bargainrepresentatives, and collectively bargain– Required employers to recognize rights of employees to Required employers to recognize rights of employees to

organize and bargain collectively with elected representativesorganize and bargain collectively with elected representatives– Act regulates process of union/management relationsAct regulates process of union/management relations– Created Created National Labor Relations Board (NLRB)National Labor Relations Board (NLRB) to oversee to oversee

and enforce provisions of Act and enforce provisions of Act http://www.nlrb.gov/http://www.nlrb.gov/

• U.S. Labor Code also includes:U.S. Labor Code also includes:– Taft-Hartley Act (1947) – Labor Management Relations ActTaft-Hartley Act (1947) – Labor Management Relations Act– Landrum-Griffin Act (1959) – Labor-Management Reporting Landrum-Griffin Act (1959) – Labor-Management Reporting

and Disclosure Actand Disclosure Act

• NLRA, a.k.a. the NLRA, a.k.a. the Wagner Act,Wagner Act, (1935) (1935)– Provided rights for employees to organize, elect Provided rights for employees to organize, elect

representatives, and collectively bargainrepresentatives, and collectively bargain– Required employers to recognize rights of employees to Required employers to recognize rights of employees to

organize and bargain collectively with elected representativesorganize and bargain collectively with elected representatives– Act regulates process of union/management relationsAct regulates process of union/management relations– Created Created National Labor Relations Board (NLRB)National Labor Relations Board (NLRB) to oversee to oversee

and enforce provisions of Act and enforce provisions of Act http://www.nlrb.gov/http://www.nlrb.gov/

• U.S. Labor Code also includes:U.S. Labor Code also includes:– Taft-Hartley Act (1947) – Labor Management Relations ActTaft-Hartley Act (1947) – Labor Management Relations Act– Landrum-Griffin Act (1959) – Labor-Management Reporting Landrum-Griffin Act (1959) – Labor-Management Reporting

and Disclosure Actand Disclosure Act

http://www.nlrb.gov/

http://www.nlrb.gov/


NLRA: Six Notable ProvisionsNLRA: Six Notable ProvisionsNLRA: Six Notable ProvisionsNLRA: Six Notable Provisions

1.1. Right of employees to Right of employees to discuss employment discuss employment termsterms

2.2. Right to complain to Right to complain to third parties, such as third parties, such as customers, clients, and customers, clients, and mediamedia

3.3. Employees have right to Employees have right to engage in work engage in work stoppage or collective stoppage or collective walk out to protest walk out to protest working conditionsworking conditions

1.1. Right of employees to Right of employees to discuss employment discuss employment termsterms

2.2. Right to complain to Right to complain to third parties, such as third parties, such as customers, clients, and customers, clients, and mediamedia

3.3. Employees have right to Employees have right to engage in work engage in work stoppage or collective stoppage or collective walk out to protest walk out to protest working conditionsworking conditions

4.4. Employees have right to Employees have right to honor picket lines honor picket lines without fear of without fear of retaliationretaliation

5.5. Employees have Employees have conditional right to conditional right to solicit and distribute solicit and distribute union literatureunion literature

6.6. Employers cannot Employers cannot unilaterally ban unilaterally ban employees access to employees access to work site while off-dutywork site while off-duty

4.4. Employees have right to Employees have right to honor picket lines honor picket lines without fear of without fear of retaliationretaliation

5.5. Employees have Employees have conditional right to conditional right to solicit and distribute solicit and distribute union literatureunion literature

6.6. Employers cannot Employers cannot unilaterally ban unilaterally ban employees access to employees access to work site while off-dutywork site while off-duty


Steps in Organizing ProcessSteps in Organizing ProcessSteps in Organizing ProcessSteps in Organizing Process

• Employees conduct organizing campaign in Employees conduct organizing campaign in which which 30%30% of employees sign of employees sign “authorization cards” “authorization cards”

• Employees petition NLRB to hold Employees petition NLRB to hold representation election and to determine representation election and to determine bargaining unitbargaining unit

• If union receives majority vote in election, it If union receives majority vote in election, it gains representation status to bargain gains representation status to bargain collectively for a contract with employercollectively for a contract with employer

• Employees conduct organizing campaign in Employees conduct organizing campaign in which which 30%30% of employees sign of employees sign “authorization cards” “authorization cards”

• Employees petition NLRB to hold Employees petition NLRB to hold representation election and to determine representation election and to determine bargaining unitbargaining unit

• If union receives majority vote in election, it If union receives majority vote in election, it gains representation status to bargain gains representation status to bargain collectively for a contract with employercollectively for a contract with employer


Behavior During Organizing Behavior During Organizing CampaignsCampaigns

Behavior During Organizing Behavior During Organizing CampaignsCampaigns

• NLRANLRA– Regulates employer/employee activities during organizing Regulates employer/employee activities during organizing

campaigns; violations are considered unfair labor practicescampaigns; violations are considered unfair labor practices– Employers cannot conduct reprisals against employees who Employers cannot conduct reprisals against employees who

exercise their rights as defined in NLRAexercise their rights as defined in NLRA– Prounion employees have right to approach coworkers and Prounion employees have right to approach coworkers and

express union support during nonworking periods in express union support during nonworking periods in nonworking areasnonworking areas

– Employers can restrict access to employees by non-Employers can restrict access to employees by non-employees, employees, ifif organizers have other means of access, and organizers have other means of access, and there is a policy in place of banning solicitation by non-there is a policy in place of banning solicitation by non-employeesemployees

• NLRANLRA– Regulates employer/employee activities during organizing Regulates employer/employee activities during organizing

campaigns; violations are considered unfair labor practicescampaigns; violations are considered unfair labor practices– Employers cannot conduct reprisals against employees who Employers cannot conduct reprisals against employees who

exercise their rights as defined in NLRAexercise their rights as defined in NLRA– Prounion employees have right to approach coworkers and Prounion employees have right to approach coworkers and

express union support during nonworking periods in express union support during nonworking periods in nonworking areasnonworking areas

– Employers can restrict access to employees by non-Employers can restrict access to employees by non-employees, employees, ifif organizers have other means of access, and organizers have other means of access, and there is a policy in place of banning solicitation by non-there is a policy in place of banning solicitation by non-employeesemployees


Collective BargainingCollective BargainingCollective BargainingCollective Bargaining

• Collective bargaining between union and employer Collective bargaining between union and employer covers various terms and conditions of covers various terms and conditions of employmentemployment

• NLRA classification of bargaining itemsNLRA classification of bargaining items– Mandatory items that Mandatory items that must bemust be negotiated in good faith negotiated in good faith

• Can be bargained to impasseCan be bargained to impasse

– Permissive items Permissive items can becan be included if both parties agree included if both parties agree• Cannot be bargained to impasseCannot be bargained to impasse

– Prohibited items Prohibited items cannot becannot be negotiated because of illegality negotiated because of illegality under terms of NLRA or other lawsunder terms of NLRA or other laws

• Collective bargaining between union and employer Collective bargaining between union and employer covers various terms and conditions of covers various terms and conditions of employmentemployment

• NLRA classification of bargaining itemsNLRA classification of bargaining items– Mandatory items that Mandatory items that must bemust be negotiated in good faith negotiated in good faith

• Can be bargained to impasseCan be bargained to impasse

– Permissive items Permissive items can becan be included if both parties agree included if both parties agree• Cannot be bargained to impasseCannot be bargained to impasse

– Prohibited items Prohibited items cannot becannot be negotiated because of illegality negotiated because of illegality under terms of NLRA or other lawsunder terms of NLRA or other laws


Exhibit 12-1Exhibit 12-1

Types of Bargaining ItemsTypes of Bargaining ItemsExhibit 12-1Exhibit 12-1

Types of Bargaining ItemsTypes of Bargaining Items


Union Security IssuesUnion Security IssuesUnion Security IssuesUnion Security Issues

• Unions attempt to increase security of status by Unions attempt to increase security of status by bargaining forbargaining for

– Union shop agreements:Union shop agreements: Require new employees to join Require new employees to join union after initial employment periodunion after initial employment period

– Agency shop agreements: Agency shop agreements: Require employees who choose Require employees who choose not to join union to pay “representation fees” to cover union’s not to join union to pay “representation fees” to cover union’s cost of representing themcost of representing them

– Dues check-off agreement:Dues check-off agreement: Employer deducts union dues Employer deducts union dues from paychecks of union employeesfrom paychecks of union employees

• Current issues concerning “Beck Rights”Current issues concerning “Beck Rights”http://nlrb.custhelp.com/cgi-bin/nlrb.cfg/php/enduser/std_alp.phphttp://nlrb.custhelp.com/cgi-bin/nlrb.cfg/php/enduser/std_alp.php

• Unions attempt to increase security of status by Unions attempt to increase security of status by bargaining forbargaining for

– Union shop agreements:Union shop agreements: Require new employees to join Require new employees to join union after initial employment periodunion after initial employment period

– Agency shop agreements: Agency shop agreements: Require employees who choose Require employees who choose not to join union to pay “representation fees” to cover union’s not to join union to pay “representation fees” to cover union’s cost of representing themcost of representing them

– Dues check-off agreement:Dues check-off agreement: Employer deducts union dues Employer deducts union dues from paychecks of union employeesfrom paychecks of union employees

• Current issues concerning “Beck Rights”Current issues concerning “Beck Rights”http://nlrb.custhelp.com/cgi-bin/nlrb.cfg/php/enduser/std_alp.phphttp://nlrb.custhelp.com/cgi-bin/nlrb.cfg/php/enduser/std_alp.php

http://nlrb.custhelp.com/cgi-bin/nlrb.cfg/php/enduser/std_alp.php

http://nlrb.custhelp.com/cgi-bin/nlrb.cfg/php/enduser/std_alp.php


Failure to Reach AgreementFailure to Reach AgreementFailure to Reach AgreementFailure to Reach Agreement

• Failure in bargaining negotiations to reach agreement Failure in bargaining negotiations to reach agreement (impasse) may result in a strike or lockout(impasse) may result in a strike or lockout

• Economic strikesEconomic strikes– Result of bargaining impasse over wages or other monetary-related Result of bargaining impasse over wages or other monetary-related

issuesissues– Striking workers Striking workers cancan be permanently replaced in economic strikes be permanently replaced in economic strikes

• Unfair labor practice strikes Unfair labor practice strikes – Employees strike in response to management’s unfair labor practices Employees strike in response to management’s unfair labor practices – Striking workers Striking workers cannotcannot be permanently replaced in unfair labor practice be permanently replaced in unfair labor practice

strikesstrikes

• Wildcat strikesWildcat strikes – Unauthorized strikes by workers who walk out in violation of collective Unauthorized strikes by workers who walk out in violation of collective

bargaining agreementbargaining agreement

• Failure in bargaining negotiations to reach agreement Failure in bargaining negotiations to reach agreement (impasse) may result in a strike or lockout(impasse) may result in a strike or lockout

• Economic strikesEconomic strikes– Result of bargaining impasse over wages or other monetary-related Result of bargaining impasse over wages or other monetary-related

issuesissues– Striking workers Striking workers cancan be permanently replaced in economic strikes be permanently replaced in economic strikes

• Unfair labor practice strikes Unfair labor practice strikes – Employees strike in response to management’s unfair labor practices Employees strike in response to management’s unfair labor practices – Striking workers Striking workers cannotcannot be permanently replaced in unfair labor practice be permanently replaced in unfair labor practice

strikesstrikes

• Wildcat strikesWildcat strikes – Unauthorized strikes by workers who walk out in violation of collective Unauthorized strikes by workers who walk out in violation of collective

bargaining agreementbargaining agreement


Related Bargaining Issues Related Bargaining Issues Related Bargaining Issues Related Bargaining Issues

• Government workers Government workers – Generally prohibited by law from strikingGenerally prohibited by law from striking

• Laws vary by state and occupationLaws vary by state and occupation

– Must seek arbitrationMust seek arbitration• http://werc.wi.gov/http://werc.wi.gov/

• Organizations can prevent strikes byOrganizations can prevent strikes by– Using mediation to restart bargaining processUsing mediation to restart bargaining process

• http://www.fmcs.gov/http://www.fmcs.gov/

– Agreeing to submit unresolved issue(s) to binding arbitrationAgreeing to submit unresolved issue(s) to binding arbitration

• Government workers Government workers – Generally prohibited by law from strikingGenerally prohibited by law from striking

• Laws vary by state and occupationLaws vary by state and occupation

– Must seek arbitrationMust seek arbitration• http://werc.wi.gov/http://werc.wi.gov/

• Organizations can prevent strikes byOrganizations can prevent strikes by– Using mediation to restart bargaining processUsing mediation to restart bargaining process

• http://www.fmcs.gov/http://www.fmcs.gov/

– Agreeing to submit unresolved issue(s) to binding arbitrationAgreeing to submit unresolved issue(s) to binding arbitration

http://werc.wi.gov/

http://www.fmcs.gov/

http://werc.wi.gov/

http://www.fmcs.gov/


Unions TodayUnions TodayUnions TodayUnions Today

• Recruit in organizations and industries Recruit in organizations and industries with which they have no previous with which they have no previous affiliationaffiliation

• Rely on technologyRely on technology

• Recruit in organizations and industries Recruit in organizations and industries with which they have no previous with which they have no previous affiliationaffiliation

• Rely on technologyRely on technology


Reading 12.1(MacDougall)Reading 12.1(MacDougall)

Changes in the NLRBChanges in the NLRBReading 12.1(MacDougall)Reading 12.1(MacDougall)

Changes in the NLRBChanges in the NLRB

• Clinton NLRB issued several decisions which Clinton NLRB issued several decisions which favored interests of bargaining representative or favored interests of bargaining representative or preference for collective bargaining agreements preference for collective bargaining agreements over expression of employee free choiceover expression of employee free choice

• Ruled that workers provided by temporary Ruled that workers provided by temporary employment agency may be included in same employment agency may be included in same collective bargaining unit as client’s regular collective bargaining unit as client’s regular employees without mutual consent of agency and employees without mutual consent of agency and its clientits client

• Clinton NLRB issued several decisions which Clinton NLRB issued several decisions which favored interests of bargaining representative or favored interests of bargaining representative or preference for collective bargaining agreements preference for collective bargaining agreements over expression of employee free choiceover expression of employee free choice

• Ruled that workers provided by temporary Ruled that workers provided by temporary employment agency may be included in same employment agency may be included in same collective bargaining unit as client’s regular collective bargaining unit as client’s regular employees without mutual consent of agency and employees without mutual consent of agency and its clientits client


Reading 12.1Reading 12.1

Controversial Rulings of Clinton Controversial Rulings of Clinton NLRBNLRB



• Overruled established principles of law that Overruled established principles of law that employer could withdraw recognition from union employer could withdraw recognition from union if employer has good-faith uncertainty as to if employer has good-faith uncertainty as to union’s majority status union’s majority status

• Extended “Weingarten” right to nonunion Extended “Weingarten” right to nonunion employeesemployees

– Epilepsy Foundation decision (2001): Employers must grant Epilepsy Foundation decision (2001): Employers must grant requests by nonunion employees to be accompanied by co-requests by nonunion employees to be accompanied by co-employee of their choice at any investigatory meeting that employee of their choice at any investigatory meeting that employee “reasonably believes” may result in disciplinary employee “reasonably believes” may result in disciplinary actionaction

– UpdateUpdate: Overturned in 2004: Overturned in 2004

• Overruled established principles of law that Overruled established principles of law that employer could withdraw recognition from union employer could withdraw recognition from union if employer has good-faith uncertainty as to if employer has good-faith uncertainty as to union’s majority status union’s majority status

• Extended “Weingarten” right to nonunion Extended “Weingarten” right to nonunion employeesemployees

– Epilepsy Foundation decision (2001): Employers must grant Epilepsy Foundation decision (2001): Employers must grant requests by nonunion employees to be accompanied by co-requests by nonunion employees to be accompanied by co-employee of their choice at any investigatory meeting that employee of their choice at any investigatory meeting that employee “reasonably believes” may result in disciplinary employee “reasonably believes” may result in disciplinary actionaction

– UpdateUpdate: Overturned in 2004: Overturned in 2004


LatestLatest NLRB Policy on Employee NLRB Policy on Employee WeingartenWeingarten Rights Rights

2004— In a decision dated June 9, 2004, the NLRB overruled Epilepsy Foundation and held that non-unionized employees do not have a right to co-worker representation at investigatory interviews. IBM Corp., 341 NLRB No. 148 (June 9, 2004).

The NLRB noted that, unlike union representatives, a non-union co-worker: (1) does not

represent the interests of the entire workforce; (2) cannot redress the imbalance of power

between the employer and its employees; (3) does not have the same skills as a union

representative in facilitating workplace interviews; and (4) does not have any obligation to

maintain the confidentiality of information elicited during a workplace interview.

According to the NLRB, although "many of these same concerns exist in a unionized setting,"

the "dangers are far less when the assisting person is an experienced union representative with

fiduciary obligations and a continuing interest in having an amicable relationship with the

employer." Balancing all of the policy considerations, the NLRB ruled that non-unionized

employees do not have a right to co-worker representation at investigatory interviews.

SOURCE: O’Melveny & Myers, LLP, Labor and Employment Alert, June 29, 2004. Accessed on April 17, 2006 at:

http://www.omm.com/webdata/content/publications/client_alert_labor_2004_06_29.htm

http://www.omm.com/webdata/content/publications/client_alert_labor_2004_06_29.htm






• Ruled that companies doing business with Ruled that companies doing business with employer that chooses to contest Board employer that chooses to contest Board certification of union are excluded from certification of union are excluded from secondary boycott protectionssecondary boycott protections

• Expanded doctrine to hold that policy Expanded doctrine to hold that policy impacting adversely on union members is impacting adversely on union members is discriminatory, even without any showing discriminatory, even without any showing of discriminatory intent of discriminatory intent

• Ruled that companies doing business with Ruled that companies doing business with employer that chooses to contest Board employer that chooses to contest Board certification of union are excluded from certification of union are excluded from secondary boycott protectionssecondary boycott protections

• Expanded doctrine to hold that policy Expanded doctrine to hold that policy impacting adversely on union members is impacting adversely on union members is discriminatory, even without any showing discriminatory, even without any showing of discriminatory intent of discriminatory intent






• Recognized that role played by legitimate Recognized that role played by legitimate employee involvement structures is employee involvement structures is substantially different from that of sham substantially different from that of sham unionsunions

• Sought to assist union organizers by Sought to assist union organizers by extending property access rights to them in extending property access rights to them in number of casesnumber of cases

• Recognized that role played by legitimate Recognized that role played by legitimate employee involvement structures is employee involvement structures is substantially different from that of sham substantially different from that of sham unionsunions

• Sought to assist union organizers by Sought to assist union organizers by extending property access rights to them in extending property access rights to them in number of casesnumber of cases



Bush NLRBBush NLRBReading 12.1Reading 12.1

Bush NLRBBush NLRB

• Likely to address important issues that Likely to address important issues that have never been decided by Boardhave never been decided by Board– New forms of union solicitationNew forms of union solicitation– Card check/neutrality agreementsCard check/neutrality agreements– Corporate campaignsCorporate campaigns

• Likely to address important issues that Likely to address important issues that have never been decided by Boardhave never been decided by Board– New forms of union solicitationNew forms of union solicitation– Card check/neutrality agreementsCard check/neutrality agreements– Corporate campaignsCorporate campaigns


Reading 12.2 (Thrasher)Reading 12.2 (Thrasher)

Employment LitigationEmployment LitigationReading 12.2 (Thrasher)Reading 12.2 (Thrasher)

Employment LitigationEmployment Litigation

• Liability claims have risen Liability claims have risen 400% in past two decades400% in past two decades

– 67% of plaintiffs win in trial67% of plaintiffs win in trial– 90% of claims brought against 90% of claims brought against

employers are settled for employers are settled for average of $390,000average of $390,000

– 91% of all discrimination 91% of all discrimination claims are successfully claims are successfully resolved through consent resolved through consent decrees, settlements, and decrees, settlements, and favorable court orders – all favorable court orders – all unfavorable to most unfavorable to most employersemployers

• Liability claims have risen Liability claims have risen 400% in past two decades400% in past two decades

– 67% of plaintiffs win in trial67% of plaintiffs win in trial– 90% of claims brought against 90% of claims brought against

employers are settled for employers are settled for average of $390,000average of $390,000

– 91% of all discrimination 91% of all discrimination claims are successfully claims are successfully resolved through consent resolved through consent decrees, settlements, and decrees, settlements, and favorable court orders – all favorable court orders – all unfavorable to most unfavorable to most employersemployers

• Damages company’s Damages company’s reputation and its reputation and its ability to hire top ability to hire top talenttalent

• Can devastate Can devastate employee moraleemployee morale

• Employment practices Employment practices liability insurance liability insurance costs have costs have skyrocketedskyrocketed

• Damages company’s Damages company’s reputation and its reputation and its ability to hire top ability to hire top talenttalent

• Can devastate Can devastate employee moraleemployee morale

• Employment practices Employment practices liability insurance liability insurance costs have costs have skyrocketedskyrocketed


Reading 12.2Reading 12.2 Employment Practices Compliance Employment Practices Compliance

SystemSystem


SystemSystem• Effective risk management should be pervasive Effective risk management should be pervasive

responsibility throughout organizationresponsibility throughout organization• Critical for organizations to consistently monitor, Critical for organizations to consistently monitor,

quantify, and measure effectiveness of company’s quantify, and measure effectiveness of company’s compliance programcompliance program

• EPCS is interactive, online tool that provides EPCS is interactive, online tool that provides method of achieving nearly 100% workforce method of achieving nearly 100% workforce compliancecompliance

• Educates employeesEducates employees

• Effective risk management should be pervasive Effective risk management should be pervasive responsibility throughout organizationresponsibility throughout organization

• Critical for organizations to consistently monitor, Critical for organizations to consistently monitor, quantify, and measure effectiveness of company’s quantify, and measure effectiveness of company’s compliance programcompliance program

• EPCS is interactive, online tool that provides EPCS is interactive, online tool that provides method of achieving nearly 100% workforce method of achieving nearly 100% workforce compliancecompliance

• Educates employeesEducates employees



SystemSystem


SystemSystem

• Can be antidote to hardening insurance marketCan be antidote to hardening insurance market

• Provides high level of protection against Provides high level of protection against employment lawsuitsemployment lawsuits

• Demonstrates “good faith efforts”Demonstrates “good faith efforts”

• Prevention strategy Prevention strategy – Raising workforce compliance and understandingRaising workforce compliance and understanding

• Substantiation strategy Substantiation strategy – Systematic, centralized documentation of compliance Systematic, centralized documentation of compliance

activitiesactivities

• Can be antidote to hardening insurance marketCan be antidote to hardening insurance market

• Provides high level of protection against Provides high level of protection against employment lawsuitsemployment lawsuits

• Demonstrates “good faith efforts”Demonstrates “good faith efforts”

• Prevention strategy Prevention strategy – Raising workforce compliance and understandingRaising workforce compliance and understanding

• Substantiation strategy Substantiation strategy – Systematic, centralized documentation of compliance Systematic, centralized documentation of compliance

activitiesactivities



Good Faith EffortsGood Faith EffortsReading 12.2Reading 12.2

Good Faith EffortsGood Faith Efforts

• Adopt compliant policiesAdopt compliant policies

• Distribute to all employeesDistribute to all employees

• Train managers and employeesTrain managers and employees

• Investigate promptlyInvestigate promptly

• Enforce consistentlyEnforce consistently

• Evaluate practicesEvaluate practices

• Adopt compliant policiesAdopt compliant policies

• Distribute to all employeesDistribute to all employees

• Train managers and employeesTrain managers and employees

• Investigate promptlyInvestigate promptly

• Enforce consistentlyEnforce consistently

• Evaluate practicesEvaluate practices


Reading 12.3 (Lazes & Savage)Reading 12.3 (Lazes & Savage)

Unions’ Experimental Strategies Unions’ Experimental StrategiesReading 12.3 (Lazes & Savage)Reading 12.3 (Lazes & Savage)

Unions’ Experimental Strategies Unions’ Experimental Strategies

• Education and retrainingEducation and retraining

• Research and development to improve and Research and development to improve and develop new products and servicesdevelop new products and services

• Voice in strategic management decision Voice in strategic management decision making and ownershipmaking and ownership

• Capital investment and pension fundsCapital investment and pension funds

• Industrial sector approachIndustrial sector approach

• Education and retrainingEducation and retraining

• Research and development to improve and Research and development to improve and develop new products and servicesdevelop new products and services

• Voice in strategic management decision Voice in strategic management decision making and ownershipmaking and ownership

• Capital investment and pension fundsCapital investment and pension funds

• Industrial sector approachIndustrial sector approach



Initiating Nontraditional StrategiesInitiating Nontraditional StrategiesReading 12.3Reading 12.3

Initiating Nontraditional StrategiesInitiating Nontraditional Strategies

• Education is keyEducation is key

• Unions need to have specific knowledge Unions need to have specific knowledge necessary to contribute substantivelynecessary to contribute substantively

• Unions need to develop effective process Unions need to develop effective process for communicating with members and for communicating with members and involving them in changesinvolving them in changes

• Unions need clear agenda for changeUnions need clear agenda for change

• Education is keyEducation is key

• Unions need to have specific knowledge Unions need to have specific knowledge necessary to contribute substantivelynecessary to contribute substantively

• Unions need to develop effective process Unions need to develop effective process for communicating with members and for communicating with members and involving them in changesinvolving them in changes

• Unions need clear agenda for changeUnions need clear agenda for change

Documents

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