Thriving (Not Just Surviving) in the Face of Big Labor's Assault on Healthcare

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Thriving (Not Just Surviving) in the Face of Big Labor’s

Assault on HealthcareBecky Brown, JD, SPHR – Supv. VP, MSA HR Capital

Kevin Haeberle, JD – Exec. VP, MSA HR Capital

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2008 ASHHRA

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In today’s session we will...

■ Broaden your understanding of the fundamental shift occurring in the healthcare labor movement and the need to take a new approach

■ Share how to assess and rate your hospital’s current labor strategy and provide recommendations on how to thrive by adopting a proactive labor relations strategy

■ Touch on the substantial impact of new workforce dynamics, due to rapidly approaching generational shift today and beyond


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But first...

A quick warm up...


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Human Resource Leader’s View of Healthcare’s Top Three Challenges*

*MSA HR Capital real-time survey at 2006 ASHHRA Booth

90% Managing the costs of keeping pay competitive85% Creating a performance driven culture75% Managing increasing benefit costs67% Keeping an aging workforce motivated62% Finding talented HR staff and leaders58% Dealing with the shortage of specialty Physicians51% Impacting CEO and Board Member decisions22% Recruiting Gen Y employees16% Preparing for a Union Attack


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Today’s Healthcare Labor Environment: A Storm Is Brewing

What has Changed? And, How Can You Help Your Organization Stay Ahead of the Storm, Thriving and Achieving Your Goals


Mary-labor Relations 101 Started 30 minutes ago

Oh John, lighten up! Unions are a threat of the past. Plus I’ve been to training a few years ago,

so I already know the do’s and don’ts and the importance of positive employee relations.

Mary! We’re late for our labor relations class. I hear we’ve got real

reason to be concerned about the new face of union organizing.

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Why cause for alarm now?§ A fundamental shift is occurring in labor relations.

§ Positive employee relations is often no longer enough to insulate an organization from possible union threat.

§ Two key factors contribute to this shift.

§ Unions are taking an external approach in unprecedented waysin many instances to persuade not the employees, but all constituents of the organization, patients, families, influential community members, politicians, clergy, regulators, etc.

§ Reputation Attacks (Corporate Campaign Tactics)

§ Positioning labor movement as the “savior” of Healthcare

§ Unions are committed to passing legislation to circumvent normal NLRB procedures in place to protect both employer and employee rights.


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Other indications of this fundamental shift...ü Greater union emphasis on Healthcare and other service sectors.

ü Healthcare industry specific campaigns placing far greater emphasis on Southern market. Once viewed as an impenetrable market by unions, now viewed as wide open potential for increasemembership and increased dues dollars.

ü New sophisticated marketing campaigns and techniques and use of savvy public relations and marketing support.

ü Willingness to spend millions of dollars with no immediate chance of recouping expenses for a greater purpose.

ü Heavy use of internet, gaining instant and broad access to employees, particularly younger employees


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What is the impetus for the fundamental shift in Labor’s approach?

Union Representation

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UnionRepresentation

Union Representation

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UnionRepresentation


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Value Care, Value Nurses: SEIU


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NNOC/CNA Forges New Ground and strives to be “An RN Voice for Direct Care Nurses”


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Employee Free Choice Act§ The Employee Free Choice Act will, if passed,

fundamentally change the labor environment as it has been know for 72 years

§ The simple, and many times coerced, act of signing a union card would likely become the primary legal process for union representation.

§ Third party arbitrator would have the right to decide contracts if the parties can’t come to a swift contract agreement.

§ Potential fines, treble damages and other serious civil penalties for administrative violations.


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Importance of Understanding Organizational Culture in Light of New Union Approach

§ All organizations have a work place culture based in large part on the work value(s) which dominate the organization.

§ Healthcare organizations must seize the opportunity before passage of the misleadingly titled Employee Free Choice Act (EFCA), to assess and determine not only what their organizational culture is, but to raise awareness of how this culture may contribute to heightened or lesser vulnerability tounionization under EFCA’s card signing process, which would allow unions to circumvent the NLRB secret ballot election process.


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The correlation between your organization’s employee relations

environment and union vulnerability will be greatly diminished.

...so what can you do about it?

BOTTOM LINE:

In a Post-EFCA Labor Environment...


Assessing Your Hospital’s Labor Relations Strategy: How Does it Rate?

6.57

4.5 8??

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Differentiation Between Just Surviving and Thriving

■ Financial Efficiency

■ Constant State of Readiness

■ Inefficient Use of Resources

■ Constant State of Uncertainty

■ Proactive

■ Normal Course of Business

■ Reactive

■ Event Specific Response

THRIVINGJUST SURVIVING


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An organization would likely be characterized as “just surviving” if....■ Organization takes a reactive approach to leadership training on preventive labor relations, i.e. training occurs only if visible union activity is present and/or no formal labor relations policy or strategy is in place.

■ Organization lacks comprehensive employee and leadership development programs, i.e. any training and development is “ad hoc” in response to a specific incident requiring an immediate response.

■ Organization, in an effort to cut costs or save dollars, ends upduplicating efforts and therefore overestimates gaps in internalresources or expertise and/or inefficiently uses internal and external resources (i.e., penny wise, pound foolish).

■ Organization leaders and employees are often unsure of what resources are available to them and/or what there role is in theorganization’s preventive labor strategy, leading to a constant state of uncertainty and lack of preparedness


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In contrast, organizations that are likely to “thrive”regardless of any union efforts are those in which... ■ Organization takes a proactive approach to all aspects of their labor relations strategy, i.e. routine annual training on preventive labor relations, adoption, publication and commitment to a union free philosophy.■ Organization, as a normal course of business develops and commits the resources necessary to retain a comprehensive People Strategy complete with employee and leadership development programs.

■ Organization approaches preventive labor relations activities in an efficient, strategic manner, aimed at fiscal responsibility and efficiency (i.e. an ounce of preventive is worth its weight in gold)■ Organization leaders are committed to operate in a constant state of readiness relating to all labor relations and “people plan” related issues.


Recommendations on How to Thrive by adopting a Proactive Labor Relations

Strategy

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THRIVING =Constant State of Readiness


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Just as Big Labor has recognized the need for a fundamental shift in their approach to organizing efforts, in turn, healthcare employers must similarly fundamentally shift our preparation and view of labor relations.

This means employers MUST, as a matter of course, filter all decisions through a labor relations “lens”

It is no longer adequate to rely only onpositive employee relations programs, a more proactive approach woveninto the fabric of your organization’snormal business practices.


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How to Thrive In the Face of Big Labor’s Assault on Healthcare

KEY ELEMENTS OF A SUCESSFUL LABOR RELATIONS STRATEGY

■ Proactively look Ahead and Anticipate Future Challenges

■ Survey

■ Audit

■ Assess

■ Scripting/Role Playing

■ Checks and Balances

■ Accountability

■ Incorporate into everyday decision-making


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Interactive Discussion with Attendees Relating to Prior Three

Audience Response Question Slides


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Impact of new workforce dynamics, due to rapidly approaching generational shift today and beyond

TraditionalistsBaby BoomersGeneration X

Generation Y


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Generation Y’s unique traits require that view labor relations through a different lens than ever before...

Key Considerations:

■ Gen Y’ers are less likely to be loyal to an organization or manager. ■ Gen Y’ers may be flippant about decisions they make, increasing likelihood they may succumb to union influence, including card signing because not concerned with future or long-term consequences of actions.■ Gen Y employees are accustomed to instant gratification, which would make short term economic gains or promises of power and influence promised by unions may be more attractive now than in past years.■ Gen Y employees desire immediate feedback and recognition for their contributions.■ Many younger employees do not have historical knowledge of unions, strikes, etc.■ Political climate is such that many younger Americans are seeking change from status quo. Translated to an employment environment this could lead to employees seeking alternatives to existing management.


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Where to you go from here? Take aways...

§ Go back and share what you’ve learned with your Senior Leadership Team and engage in discussion and a candid assessment of whether your organization’s current approach to labor relations will put you in a position to thrive now and in the future.

§ Use framework and recommendations discussed this morning to begin to reduce vulnerability by taking steps to put your organization in a constant state of readiness!


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Final Thoughts