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Chapter 10Labor Relations

Chapter 10Labor Relations

10–2

Union-Management Labor RelationsUnion-Management Labor Relations

• UnionUnion A formal association of workers that promotes the A formal association of workers that promotes the

interests of its members through collective action.interests of its members through collective action.

• Why Employees UnionizeWhy Employees Unionize Dissatisfaction with treatment by their employers.Dissatisfaction with treatment by their employers. Believe that unions can improve their work situations.Believe that unions can improve their work situations.

• Why Employers Resist UnionsWhy Employers Resist Unions Unions constrain what managers can and cannot do Unions constrain what managers can and cannot do

in a number of areas, such as wages/benefitsin a number of areas, such as wages/benefits

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FIGURE 10.FIGURE 10.11 Factors Leading to Employee Factors Leading to Employee UnionizationUnionization

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Nature of UnionsNature of Unions

• Union Membership GloballyUnion Membership Globally In some countries, unions either do not (or cannot) In some countries, unions either do not (or cannot)

exist at all or are relatively weak.exist at all or are relatively weak. Union membership is falling in advanced countries.Union membership is falling in advanced countries. High unemployment is creating pressure for change.High unemployment is creating pressure for change. Child labor is an issue in some countries.Child labor is an issue in some countries.

• Co-determinationCo-determination A practice whereby union or worker representatives A practice whereby union or worker representatives

are given positions on a company’s board of are given positions on a company’s board of directors.directors.

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Adjusted Union Membership as a Adjusted Union Membership as a Percentage of Workforce for Selected Percentage of Workforce for Selected CountriesCountries

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Nature of UnionsNature of Unions

• Key emphases in the U.S. Key emphases in the U.S. Economic issuesEconomic issues Organization by kind of job and employerOrganization by kind of job and employer Collective agreements as “contracts”Collective agreements as “contracts” Competitive relationsCompetitive relations

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Reasons for U.S. Union Membership Reasons for U.S. Union Membership DeclineDecline

Industrial ChangesIndustrial Changes Industrial ChangesIndustrial Changes

Geographic ChangesGeographic ChangesGeographic ChangesGeographic Changes Workforce ChangesWorkforce ChangesWorkforce ChangesWorkforce Changes

Declining Declining Union Union

MembershipMembership

Declining Declining Union Union

MembershipMembership

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FIGURE 10.FIGURE 10.22 Union Membership by Industry Union Membership by Industry

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Union Membership in the U.S.Union Membership in the U.S.

• Public sector unionismPublic sector unionism Significant success with government workersSignificant success with government workers

• Union targets for membership growthUnion targets for membership growth Retail, hospitality, health care…Retail, hospitality, health care…

• Union structure in the U.S.Union structure in the U.S. Craft UnionCraft Union

A union whose members do one type of work, often using A union whose members do one type of work, often using specialized skills and training.specialized skills and training.

Industrial UnionIndustrial Union A union that includes many persons working in the same A union that includes many persons working in the same

industry or company regardless of jobs held.industry or company regardless of jobs held. FederationFederation

A group of autonomous national and international unions.A group of autonomous national and international unions.

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Union Membership in the U.S.Union Membership in the U.S.

• AFL-CIO Federation (American Federation of AFL-CIO Federation (American Federation of Labor-Congress of Industrial Organizations)Labor-Congress of Industrial Organizations) Largest U.S. union, with 10 million workers in 2005Largest U.S. union, with 10 million workers in 2005 Change to Win Federation (CTWF) separated 7 Change to Win Federation (CTWF) separated 7

unions with about 6 million members from the AFL-unions with about 6 million members from the AFL-CIOCIO

• Local UnionsLocal Unions Business agent: full-time union official who operates Business agent: full-time union official who operates

union office and assists union membersunion office and assists union members Union steward: employee who is elected to serve as Union steward: employee who is elected to serve as

first-line representative of unionized workersfirst-line representative of unionized workers

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Union Membership as a Percentage of the Union Membership as a Percentage of the U.S. Civilian WorkforceU.S. Civilian Workforce

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Basic Labor Laws: National Labor Basic Labor Laws: National Labor CodeCode

10–13

Unfair Labor PracticesUnfair Labor Practices

• Wagner Act Prohibits Employer from:Wagner Act Prohibits Employer from:Interfering with the organizing and collective Interfering with the organizing and collective

bargaining rights of employees.bargaining rights of employees.Dominating or interfering with any labor Dominating or interfering with any labor

organization.organization.Encouraging or discouraging membership in Encouraging or discouraging membership in

any union.any union.Discharging persons for organizing activities Discharging persons for organizing activities

or union membership.or union membership.Refusing to bargain collectively.Refusing to bargain collectively.

• National Labor Relations BoardNational Labor Relations Board

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Taft-Hartley Act (Labor-Management Taft-Hartley Act (Labor-Management Relations Act)Relations Act)

• National Emergency StrikesNational Emergency Strikes• Right-to-Work ProvisionRight-to-Work Provision

Right to work laws:Right to work laws: State laws that prohibit contracts requiring employees to join State laws that prohibit contracts requiring employees to join

unions as a condition of obtaining or continuing employment.unions as a condition of obtaining or continuing employment.

Open shop – employees cannot be required to join or Open shop – employees cannot be required to join or pay dues to a unionpay dues to a union

Closed Shop (outlawed) – employees required to join Closed Shop (outlawed) – employees required to join a union before being hireda union before being hired

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Right to Work ProvisionRight to Work Provision

• Union shopUnion shop A clause in a collective bargaining agreement that A clause in a collective bargaining agreement that

requires new employees to join the union, usually 30 requires new employees to join the union, usually 30 to 60 days after being hired, or be fired.to 60 days after being hired, or be fired.

• Agency shopAgency shop Requires employees who do not join the union to pay Requires employees who do not join the union to pay

fees for the union’s representation services.fees for the union’s representation services.

• Maintenance-of-membership shopMaintenance-of-membership shop Requiring workers to remain members of the union for Requiring workers to remain members of the union for

the period of the labor contract.the period of the labor contract.

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National Labor LawsNational Labor Laws

• Landrum-Griffin Act (Labor-Management Landrum-Griffin Act (Labor-Management Reporting and Disclosure Act) Reporting and Disclosure Act)

• Civil Service Reform Act of 1978Civil Service Reform Act of 1978

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Unionization ProcessUnionization Process

• The process of unionizing may begin in one of The process of unionizing may begin in one of two primary ways:two primary ways: A union targeting an industry or a company A union targeting an industry or a company

Employees requesting union representationEmployees requesting union representation

• Union prevention by employersUnion prevention by employers ““no-solicitation policy restricting employees/outsiders no-solicitation policy restricting employees/outsiders

from soliciting membership on company premisesfrom soliciting membership on company premises

Hold mandatory employee meetingsHold mandatory employee meetings

Distribute anti-union leaflets/mailing to employeesDistribute anti-union leaflets/mailing to employees

Using anti-union videos, emails, etc. Using anti-union videos, emails, etc.

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Unionization ProcessUnionization Process

• Persuasion by unions:Persuasion by unions: Personally contacting employee outside workPersonally contacting employee outside work

Mailing materials to employees’ homesMailing materials to employees’ homes

Inviting employees to attend special meetings away Inviting employees to attend special meetings away from the companyfrom the company

Publicizing advantages of union membershipPublicizing advantages of union membership

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Figure 10.4 Figure 10.4 Typical Typical

Unionization Unionization ProcessProcess

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Organizing CampaignOrganizing Campaign

• Authorization CardsAuthorization Cards A card signed by an employee to designate a union A card signed by an employee to designate a union

as his or her collective bargaining agentas his or her collective bargaining agent

• Bargaining UnitBargaining Unit Employees eligible to select a single union to Employees eligible to select a single union to

represent and bargain collectively for them, with represent and bargain collectively for them, with mutual interest inmutual interest in Wages, hours, working conditionsWages, hours, working conditions Traditional industry groupingsTraditional industry groupings Physical location/interaction between employee groupsPhysical location/interaction between employee groups Supervision by similar levels of managementSupervision by similar levels of management

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Organizing CampaignOrganizing Campaign

• Supervisors and union ineligibilitySupervisors and union ineligibility Supervisors cannot be included in bargaining units for

unionization purposes, except in industries covered by the Railway Labor Act.

Who qualifies as a supervisor is not always clear.

• Unfair labor practicesUnfair labor practices All activities must conform to the requirements

established by applicable labor laws.

• Election processElection process Union need receive only a majority of the votes

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Organizing CampaignOrganizing Campaign

• CertificationCertification The NLRB’s grant of the union’s legal status as the The NLRB’s grant of the union’s legal status as the

employees’ representative.employees’ representative.

• DecertificationDecertification The process whereby a union is removed as the The process whereby a union is removed as the

representative of a group of employees.representative of a group of employees.

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Collective Bargaining and Contract Collective Bargaining and Contract NegotiationNegotiation

• Collective BargainingCollective Bargaining The process whereby representatives of management The process whereby representatives of management

and workers negotiate a labor agreement covering and workers negotiate a labor agreement covering wages, hours, and other terms and conditions of wages, hours, and other terms and conditions of employment.employment.

Union Security ProvisionsUnion Security Provisions Contract provisions that aid the union in obtaining and Contract provisions that aid the union in obtaining and

retaining members.retaining members.

Dues Checkoff ProvisionDues Checkoff Provision A contract provision for the automatic deduction of union A contract provision for the automatic deduction of union

dues from the paychecks of union members.dues from the paychecks of union members.

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Collective Bargaining IssuesCollective Bargaining Issues

• Mandatory Bargaining IssuesMandatory Bargaining Issues Issues identified specifically by labor laws or court Issues identified specifically by labor laws or court

decisions as subject to bargaining.decisions as subject to bargaining.

• Permissive IssuesPermissive Issues Collective bargaining issues that are not mandatory Collective bargaining issues that are not mandatory

but relate to certain jobs.but relate to certain jobs.

• Illegal IssuesIllegal Issues Collective bargaining issues that require either party Collective bargaining issues that require either party

to take an illegal action (e.g., discriminate in hiring).to take an illegal action (e.g., discriminate in hiring).

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Collective Bargaining ProcessCollective Bargaining Process

• Preparation of initial demandsPreparation of initial demands

• Continuing negotiationsContinuing negotiations

• Settlement and contract agreementSettlement and contract agreement

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Figure 10-5 Typical Items in a Labor Figure 10-5 Typical Items in a Labor AgreementAgreement

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Bargaining ImpasseBargaining Impasse

• Bargaining impasseBargaining impasse

• Conciliation, mediation, arbitrationConciliation, mediation, arbitration Conciliation: third party assists union and Conciliation: third party assists union and

management negotiators to reach settlement, but management negotiators to reach settlement, but makes no proposals for solutionsmakes no proposals for solutions

Mediation: third party helps negotiators reach Mediation: third party helps negotiators reach settlementsettlement

Arbitration: neutral third party makes a decisionArbitration: neutral third party makes a decision

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Strikes and LockoutsStrikes and Lockouts

• StrikeStrike A work stoppage in which union members refuse to A work stoppage in which union members refuse to

work in order to put pressure on an employer.work in order to put pressure on an employer.

• LockoutLockout Shutdown of company operations undertaken by Shutdown of company operations undertaken by

management to prevent union members from management to prevent union members from working.working.

Striker replacementsStriker replacements

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Types of StrikesTypes of Strikes

• Economic StrikesEconomic Strikes Strikes over economic issues (e.g., wages)Strikes over economic issues (e.g., wages)

• Unfair labor practice strikesUnfair labor practice strikes Strikes over illegal employer actions (e.g., refusal to bargain)Strikes over illegal employer actions (e.g., refusal to bargain)

• Wildcat strikesWildcat strikes Strikes not approved by the unionStrikes not approved by the union

• Jurisdictional strikesJurisdictional strikes Strikes in dispute over the ownership of workStrikes in dispute over the ownership of work

• Sympathy strikesSympathy strikes Expressions of support for other unionsExpressions of support for other unions

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Union/Management Cooperation Union/Management Cooperation IssuesIssues

Employee OwnershipEmployee Ownership

(ESOPs)(ESOPs)

Employee OwnershipEmployee Ownership

(ESOPs)(ESOPs)

Cooperation andCooperation and

Joint EffortsJoint Efforts

Cooperation andCooperation and

Joint EffortsJoint EffortsEmployee Employee

Involvement (Teams)Involvement (Teams)

Employee Employee Involvement (Teams)Involvement (Teams)

Union/Union/Management Management CooperationCooperation

Union/Union/Management Management CooperationCooperation

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Grievance ManagementGrievance Management

• ComplaintComplaint Indication of employee dissatisfactionIndication of employee dissatisfaction

• GrievanceGrievance A complaint formally stated in writingA complaint formally stated in writing

• Grievance ProceduresGrievance Procedures Formal channels used to resolve grievances.Formal channels used to resolve grievances.

• Grievance ArbitrationGrievance Arbitration The means by which a third party settles disputes The means by which a third party settles disputes

arising from different interpretations of a labor arising from different interpretations of a labor contract.contract.

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Figure 10.6Figure 10.6 Steps in a Typical Steps in a Typical Grievance ProcedureGrievance Procedure