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Chapter 14

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Chapter 14

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  1. Chapter 14 Labor Relations and Collective Bargaining

  2. Chapter 14 Outline • The labor movement • A brief history of the American union movement • Why do workers organize? • Research insight • What do unions want? • Union security • Improved wages, hours, and benefits for members • The AFL-CIO

  3. Chapter 14 Outline • Unions and the law • Period of strong encouragement: The Norris-LaGuardia (1932) and National Labor Relations or Wagner Acts (1935) • Unfair employer labor practices • From 1935 to 1947 • Period of modified encouragement coupled with regulation: The Taft-Hartley Act (1947) • Unfair union labor practices • Rights of employees • Rights of employers • National emergency strikes

  4. Chapter 14 Outline • Unions and the law (cont.) • Period of detailed regulation of internal union affairs: The Landrum- Griffin Act (1959) • Entrepreneur’s HR: Dot-coms and unions • The union drive and election • Step 1. Initial contact • Labor relations consultants • Union salting • Step 2. Obtaining authorization cards

  5. Chapter 14 Outline • The union drive and election (cont.) • Step 3. Hold a hearing • Step 4. The campaign • Step 5. The election • How to lose an NLRB Election • The supervisor’s role • Rules regarding literature and solicitation • The new workplace: Unions go global • Decertification elections: Ousting the union

  6. Chapter 14 Outline • The collective bargaining process • What is collective bargaining? • What is good faith? • The negotiating team • Bargaining items • Bargaining stages • Bargaining hints

  7. Chapter 14 Outline • The collective bargaining process (cont.) • Impasses, mediation, and strikes • Third-party involvement • Strikes • Other alternatives • The contract agreement • Strategic HR: Amazon.com and unionization • Grievances • Sources of grievances • The grievance procedure • Guidelines for handling grievances

  8. Chapter 14 Outline • The future of unionism • Why union membership is declining • What’s next for unions? • HR.net: Unions and the Internet • Employee participation programs and unions • Summary

  9. After Studying This Chapter You Should Be Able To: • Give a brief history of the American labor movement • Discuss the main features of at least three major pieces of labor legislation • Present examples of what to expect during the union drive and election • Describe five ways to lose an NLRB election • Illustrate with examples bargaining that is not in good faith • Develop a grievance procedure

  10. Strategic Overview • How to deal effectively with unions and grievances • The basics of labor legislations • Explain labor negotiations • What you can expect during the actual bargaining sessions

  11. The Labor Movement • 16 Million U.S. workers belong to unions – about 14% of all working men and women US 14% Canada 37% Why are unions important? How did they get that way? Mexico 43% Why do workers join them? Brazil 44% How do employers and unions hammer out agreements? Japan 24%

  12. Union History • 1790 • Samuel Gompers formed the American Federation of Labor - AFL • Decline and growth

  13. Why Organize? • Weekly earnings of union members are much higher than of nonunion workers • Better benefits • Low morale, fear of job loss, and poor communication help foster unionization

  14. Research Insight • Dissatisfaction with basic bread-and- butter issues • Not non-economic issues • Workers must feel helpless to change things • If they collectively feel change can occur then unionization may occur

  15. What Do Unions Want? • Security • Closed shop • Union shop • Agency shop • Open shop • Maintenance of membership arrangement • Improved wages, hours, and benefits

  16. The AFL-CIO • Gompers’ AFL and the Congress of Industrial Organizations (CIO) merged in 1955, with George Meany as its first president 3 Union Layers Local Chapter National federation

  17. Unions And The Law1932-1947 • Norris-LaGuardia Act of 1932 • National Labor Relations (or Wagner) Act • Banned certain unfair labor practices • Provided for secret-ballot elections • Created the National Labor Relations Board (NLRB)

  18. Wagner Act • Deemed five unfair labor practices used by employers as “statutory wrongs”: • Right to organize • Formation or administration of labor unions • Discrimination for legal union activities • Employees file charges • Must bargain collectively

  19. Unions And The Law 1947 – The Taft-Hartley Act • Amended Wagner Act in 4 ways: • Prohibit unfair labor practices • Rights of employees • Rights of employers • Some strikes can be prohibited NLRB form 501

  20. Unfair Labor Practices • Unions banned from restraining or coercing employees from exercising their own bargaining rights • Can’t make an employer discriminate • Can’t refuse to bargain in good faith • Can’t engage in featherbedding

  21. 27% 24% 20% 17% 7% 4% 7% Taft-Hartley Act RightsEmployees • Protects rights of employees against unions • Right-to-work laws sprang up in 19 mostly southern states • Union membership varies by state

  22. Taft-Hartley Act Rightsof Employers • Freedom to express their views • Can set forth the union’s record • Cannot meet with employees on company time within 24 hours of an election • Suggest they vote against the union while they are at home

  23. Unions And The Law 1959 - Landrum-Griffin Act • A period of detailed regulation of internal union affairs • Bill of rights and due process • Rules regarding union elections • Greatly expanded list of unlawful employer actions

  24. Entrepreneurs+HR –Dot.coms and Unions • Not immune to unionization • Many dot.coms doing old company tasks • Benefits evaporated after bubble broke • Many are overly lax • Don’t lose touch with your employees

  25. Union Drive and Election • 5 Steps to recognition and representation Initial Contact Obtain Authorization Cards Hold Hearing The Campaign The Election

  26. Step 1. Initial Contact • Determine employee interest • Rules say can’t endanger the performance or safety of the employees • Both sides use labor relations consultants • Union salting

  27. Step 2. Obtaining Authorization Cards • Union must petition NLRB to hold an election • 30% must sign authorization cards • Propaganda phase • Picketing subject to: • Petition for election • Cannot already recognize another union • No valid NLRB election during past 12 months

  28. Step 3. Hold a Hearing • NLRB hearing addresses: • Does record show sufficient interest • What bargaining unit will be No contest – No hearing – Consent election No contest – No hearing – Election Contest – Hearing held NLRB hearing notice Does the employer qualify for coverage by the NLRB? Is union recognized by National Labor Relations Act? Does prior bargaining agreement prevent an election?

  29. Step 4. The Campaign • Let the campaign begin! • Union says it will prevent unfairness and improve wages • Management says union promises won’t make any difference

  30. Step 5. The Election • Election held 30-60 Days after NLRB issues decision • Secret ballot • Union wins if they get majority of votes cast

  31. How to Lose an NLRB Election • Employers lost ½ of the elections because: • Asleep at the switch • Appointed a committee • Concentrated on money and benefits • Industry blind spots • Delegate too much to divisions

  32. Appointing a Committee • 36% of losing companies appointed committees to handle the election • Promptness is essential • Most members are NLRB neophytes • Committees usually compromise

  33. The Supervisor’s Role • First line of defense • Sensitive to evolving employee attitude problems • Treat employees fairly and honestly • Supervisors must know possible consequences

  34. Literature and Solicitation Rules • Soliciting employees during work time • No soliciting except break times • Bar non-employees from the building’s interiors and work areas • Deny access for safety, production or discipline reasons

  35. The New Workplace -Global Unions • Can’t avoid unions by going abroad • Trading partnerships lets union membership span countries • U.S. owned offshore factories are organizing • Raising offshore wages removes impetus to relocate factories UEW

  36. Ousting the Union Definition • Decertificationis the legal process for employees to terminate a union’s right to represent them • Handled much like certification process 450-500/Year Unions win 30% Management wins 70%

  37. What is collective bargaining? Definition • Collective bargainingThe process through which representatives of management and the union meet to negotiate a labor agreement.

  38. Good Faith • Good faith bargaining is the cornerstone • Both parties communicate and negotiate • The following are not good faith methods: Surface bargaining Inadequate concessions Inadequate proposals and demands Dilatory tactics Imposing conditions Making unilateral changes in conditions Withholding information Bypassing the representative Committing unfair negotiations Ignoring bargaining items

  39. The Negotiating Team • Both sides come to bargaining table having done their homework • Management compiles data that bolsters its case • Workers have issues they need resolved

  40. Bargaining Items • Mandatory • Voluntary or permissible • Illegal

  41. Bargaining Items (Cont.)

  42. Present Demands Reduce Demands Subcommittee Study Informal Settlement Formal Agreement Bargaining Stages

  43. Bargaining Hints Set clear objectives for each bargaining item Do not hurry When in doubt, caucus with associates Have firm data supporting your position Keep some flexibility in your position Control your emotions Find out why other party says what it does Let other party save face Be a good listener Determine real intentions of others Monitor objectives Build a reputation as being fair but firm All about compromise Know bargaining interrelationships Read fine print Understand people Consider impact in future years

  44. Impasses and Mediation Definitions • Impasse - collective bargaining situation that occurs when the parties are not able to move toward a settlement • Mediation - intervention in which a neutral third party tries to assist the principals in reaching agreement

  45. Impasses and Mediation Definitions • Fact finder - a neutral party who studies the issues in a dispute and makes a public recommendation for a reasonable settlement • Arbitration - the most definitive type of third-party intervention, in which the arbitrator usually has the power to determine and dictate the settlement terms

  46. Strikes • 4 Main types of strikes: • Economic – results from failure to get contract • Union labor practice – protests illegal conduct • Wildcat – unauthorized • Sympathy – in support of another strike

  47. Minimizing Strike Confusion • Pay • Secure • Notify • Contact • Arrange • Notify • Photograph • Record • Gather

  48. Alternatives • Corporate campaign • Boycott • Inside games • Lockout • Injunction

  49. May be 20-30 pages or more Covers general declarations of policy Often contains detailed rules The Contract Agreement

  50. Grievances Definitions • Grievance - any factor involving wages, hours, or conditions of employment that is used as a complaint against the employer • Most serious and difficult involve discipline, seniority, and job evaluations • Usually caused by a bad supervisor – subordinate relationship