Chapter 5

1. Chapter 5 Why and How Unions are Organized

2. Why Unions Are Formed • Work and Job Conditions Explanation • Alienation Theory • Scarcity Consciousness Theory • Employee Backgrounds and Needs • Wheeler Model of Union Formation MGMT 523 – Chapter 5

3. Wheeler Model of Union Formation Second Stage:Decision to take collective action First Stage:Readiness to take action Decision not to unionize Love Frustration of not being heard Fear of punishment Hope Fear of deprivation Lack of belief in unions Saliency Rational calculation Withdrawal and/or revenge MGMT 523 – Chapter 5

4. Social Pressure • Knows union supporters • Believes unions attract good Job Satisfaction/ Dissatisfaction • Pay or economic benefits • Supervision • Work Union Instrumentality • Fair treatment • Better pay • Better management- employee relations Employee Vote • For union • Against union Attitudes and Beliefs about Unions • General • Specific Voting Influences MGMT 523 – Chapter 5

5. Costs versus Returns for Organizing • Additional dues and fees • Extra compensation gained by bargaining • Enhanced political influence • Social benefits and satisfaction MGMT 523 – Chapter 5

6. Workforce Temporary employees Part-time employees Independent contractors Minorities Immigrant workers Older workers Higher-skilled workers Workplace Declines in unions’ stronghold industries Increases in service industries workers Increases in industries with skilled workers Outsourcing Changes Challenging Union Organizing Attempts MGMT 523 – Chapter 5

7. Organizing Professional Employees • Professional Values • Issues in collective bargaining: • Professional standards • Participation in policy making • Regulation of professional work • Training and professional development • Commitment of organizational resources to professional goals • Criteria for personnel decisions regarding professionals MGMT 523 – Chapter 5

8. Activities of the Union in Organizing Employees • Union Actions • Responds to request for assistance • Emphasizes the benefits of collective bargaining and grievance procedures • Roles of Union Organizers • Educator • Persuader • Supporter MGMT 523 – Chapter 5

9. Union Functions • Represent the interest of employees • Negotiate a binding contract with management • Provide an opportunity to influence through contract and administration • Allow members to have input into workplace decisions • Grievance procedure typically includes union representation MGMT 523 – Chapter 5

10. Keys for the Union to Achieve Representation • Serious commitment to organizing • Use of representative committees • More in touch with concerns of the bargaining unit • Better access to employees at the workplace • Demonstrate union democracy • Personal contact • Bargaining due diligence • Focus on issues of fairness or service quality • Use of solidarity days MGMT 523 – Chapter 5

11. Activities of the Company in Union Organizing • Employer Actions • Campaign tactics • Unfair Labor Practices • Employer Effects on Elections • Influencing the composition of the bargaining unit • Setting the date for the election MGMT 523 – Chapter 5

12. Advantages of the Company • Full access to its employees • Can offer possibility of improvement without additional cost of unionization for employees • Can benefit from employees’ fear of change. • Lengthy time between successful organization and issuance of the bargaining order MGMT 523 – Chapter 5

13. Methods for Organizing Unions • Costs versus Returns for Organizing • Additional dues and fees • Extra compensation gained by bargaining • Enhanced political influence • Social benefits and satisfaction • Increasing the Success of Organizing Drives • Employers’ provision of lists of employees • An agreement to place time limits on the organizing campaigns MGMT 523 – Chapter 5

14. Interest 1. Internal: Employees contact union organizer 2. External: Union organizer contacts employees Ways for union to obtain recognition Voluntary Recognition NLRB Directive (Gissel Doctrine) Secret-Ballot Election ConsentElection Contested Election UnionWins UnionLoses UnionCertified 12 Month Election Bar Union Obligation:Duty to bargain with company in good faith and represent all bargaining unit employees fairlyCompany Obligation:Duty to bargain with union in good faith and recognize union as the exclusive bargaining representative for all bargaining unit employees Union Representation Procedure MGMT 523 – Chapter 5

15. Pre-NLRB-Election Union Campaigns • Contacting employees • Determining interest • Setting up and organizing committee • Building interest by soliciting authorization cards MGMT 523 – Chapter 5

16. Filing a Petition for Election • Employer refuses union’s recognition request • Union files an election petition with the NLRB • NLRB, employer, and union discuss: • Bargaining unit composition • Voter eligibility • Ballot, date, time and place for election • Consent election • Contested election MGMT 523 – Chapter 5

17. Community of Interest • Interest of the employees • Commonality of wages, working conditions, training, and skills • Prior history of collective bargaining • Transfers of employees among facilities • Geography and proximity of workplaces • Employer’s administrative or territorial divisions • Degree of separation or integration of the employees’ work MGMT 523 – Chapter 5

18. Restrictions on Community of Interest • Separate bargaining units • Nonprofessional employees • Professional employees • Plant guards • Craft units optional • Those excluded by LMRA • Confidential employees and family members of owners MGMT 523 – Chapter 5

19. Voting Eligibility • Employment in a bargaining unit job • Employment during the eligibility period • Employment on the date of the election • If on strike, striking employee must be within 12 months of the beginning of an economic strike MGMT 523 – Chapter 5

20. NLRB Election Process • Untimely Petitions • Contract Bar Doctrine • Excelsior Rule • The Election • Secret ballots with union or no union choice used • Election held at workplace during working hours on a payday • Simple majority decision • Election conduct and votes can be challenged for 7 days MGMT 523 – Chapter 5

21. Union Success Factors • Organizing • Employers’ provision of lists of employees • An agreement to place time limits on the organizing campaigns • Voting • High (90%) voter turnout • Short time before election occurs • Smaller election unit • Smaller union supporting the organizing effort • Union independent of the AFL-CIO MGMT 523 – Chapter 5

22. Securing a First Contract • Preexisting high wages in the firm • The presence of other bargaining units in the firm • Large election victories • Active participation by international union representatives MGMT 523 – Chapter 5

23. Trends in Union Representation Elections • The yearly number of elections has fallen sharply • The union success rate (wins) has steadily declined • Unions are less likely to win NLRB-sponsored elections in bargaining units (over 100 employees) MGMT 523 – Chapter 5

24. Conduct of Campaigns and NLRB Policies • Totality of Conduct Doctrine • Captive Audience • Polling or questioning employees • Distribution of Union literature • Solicitation by employees on Company Property • Showing films • Use of E-Mail MGMT 523 – Chapter 5

25. New Organizing Strategies • Using the Internet • Salting • Organizing an employer’s suppliers • Creating videos • Holding public rallies and marches • Funding more organizing efforts MGMT 523 – Chapter 5

26. Decertification • A majority of the bargaining unit votes to remove the union’s certification • Support of 30% of the unit required • Reasons for Decertification • Fair treatment of employees by employers • Poor job by unions of providing services to members • Inability to gain an initial labor contract MGMT 523 – Chapter 5