15-1 copyright ©2010 pearson education, inc. publishing as prentice hall working with organized...

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Copyright ©2010 Pearson Education, Inc. publishing

as Prentice Hall

Working with Organized

Labor

Chapter 15

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Why Do Employees Join Unions Labor Relations and the Legal Environment

Labor Relations in the U.S. Labor Relations in the Other Countries Labor Relations Strategy Managing The Labor Relations Process The Impact of Unions on HRM

Chapter 15 OverviewChapter 15 Overview

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Union—an independent organization Represents employees’ interests Deals with issues such as wages, work

hours, and working conditions

Overview of UnionsOverview of Unions

Employees join unions when: Dissatisfied with aspect of their job Feel they lack influence with mgmt See unionization as a solution

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Overview of UnionsOverview of Unions

U.S. Labor Unions: Legally unprotected until 1935 Employment relationship is private

Employment at will Employers usually prefer a nonunion

workforce Unions widely supported in 1930s Not supported as much today

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The Manager’s Role in Labor The Manager’s Role in Labor RelationsRelations

Labor relations specialist Negotiate labor contracts Resolve grievances Advise top management on labor strategies

Management Can influence work environment Responsible for implementation of agreements Needs basic understanding of labor laws Often asked to serve on grievance committees

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Three Important Laws

Wagner Act (1935)

Taft-Hartley Act (1947)

Landrum-Griffin Act (1959)

The Legal EnvironmentThe Legal Environment

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National Labor Relations Board (NLRB) Independent federal agency Certifies elections Investigates unfair labor practice charges

The Wagner Act (NLRB Act)The Wagner Act (NLRB Act)

Can issue cease and desist order, if management: Interferes with union formation or

administration Discriminates against union members Refuses to bargain with the union

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Taft-Hartley and Landrum-Griffin ActsTaft-Hartley and Landrum-Griffin Acts

The Landrum-Griffin Act Protects union members from union leaders Unions must have bill of rights and constitution Union elections regulated by government

Taft-Hartley Act Protects management and workers from union

coercion Prohibits discrimination against non-union Illegal to refuse to bargain in good faith Also prohibits union shops, secondary boycotts,

excessive dues, and featherbedding

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Accepts capitalist economic structure

Labor Relations in the U.S.Labor Relations in the U.S.

Six characteristics Business unionism

o Focus on improving worker well-beingo Less so on running the company

Unions structured by type of jobo AFL-CIO o Change to Win

Focus on collective bargaining

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‣Labor contracts Specify terms of employment and work rules


‣Growth of unions in the public sector At 36%, is five times higher than private

sector But have less bargaining power

o Government power is diffuse o Many unions not permitted to strike

By voting have some political power over employer

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Adversarial Nature of Labor-Management Relations Shrinking Union Membership


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Labor Relations in Other CountriesLabor Relations in Other Countries

U.S.—concerned with economic issues France—more politically involved China—low in political and economic involvement Sweden—high both politically and economically Germany:

Works Councils—committees with workers and management

Codetermination—workers on board of directors Japan:

Enterprise Unions—all workers in one organization System fostered by lifelong employment

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Labor Relations StrategyLabor Relations Strategy

Labor Relations Strategy Overall plan for

dealing with labor unions

Ranges from open conflict to labor-management cooperation

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Two Basic Strategies‣ Union Acceptance‣ Union Avoidance

Union Substitution Union Suppression

Labor Relations StrategyLabor Relations Strategy

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Labor Relations ProcessLabor Relations Process

Union Organizing Union solicitation Pre-election conduct Certification election Employee Free Choice Act

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Collective BargainingCollective Bargaining

Bargaining Behavior Must negotiate in “good faith” Each side develop and present proposals

Bargaining Power

Bargaining Types Distributive Integrative

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Try to understand others’ needs and objectives

Create a free flow of information Emphasize commonalities Minimize differences Search for solutions that meet all parties’

goals and objectives Develop flexible responses to other

proposals

Guidelines for Integrative BargainingGuidelines for Integrative Bargaining

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Bargaining TopicsBargaining Topics

Mandatory Wages, hours, and employment conditions

Permissive Both parties must agree E.g. board service, retiree benefits

Illegal Featherbedding Discriminatory practices, etc.

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Impasses in BargainingImpasses in Bargaining

Role of MediatorEconomic StrikeWildcat StrikeLockout

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Grievance Procedure Step by step process used to settle

disputes Union steward—advocate for the employee Arbitration—last step in grievance process

Contract AdministrationContract Administration

Two Types of Grievances Contract interpretation Employee discipline

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Staffing—seniority based

The Impact of Unions on HRMThe Impact of Unions on HRM

Employee Development performance appraisals for feedback

Compensation Higher in union shops Benefits generally better in union shops Prefer across the board raises (COLAs)

Employee Relations Union gives employees a voice

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Unions—thrive when employees are dissatisfied and lack influence with mgmt

Managers should be aware of labor relations laws

Union-management relationship historically adversarial

Labor relations in other countries often more political

Strategy: acceptance vs. avoidance Substitution better than suppression

Unions impact almost every area of HRM

Summary and ConclusionsSummary and Conclusions

15-1 copyright ©2010 pearson education, inc. publishing as prentice hall working with organized...

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