chapter 14 collective bargaining and labor relations mcgraw-hill/irwin copyright © 2013 by the...
TRANSCRIPT
Chapter 14Collective Bargaining and Labor
Relations
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Human Resource Management:Gaining a Competitive Advantage
Learning Objectives Describe collective bargaining and labor relations.
Identify labor relations, goals of management, labor unions and society.
Explain legal environment's impact on labor relations.
Describe major labor-management interactions: organizing, contract negotiations and contract administration.
Describe new, less adversarial approaches to labor-management relations.
Explain how changes in competitive challenges are influencing labor-management interactions.
Explain how labor relations in public and private sectors differ.
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Labor Relations Framework4 Elements of John Dunlop’s Labor Relations
System
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Labor Relations Framework
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Goals & Strategies Society- labor unions' major benefit to society
has been balancing power and institutionalization of industrial conflict least costly way. National Labor Relations Act (NLRA,
1935) provides a legal framework conducive to collective bargaining.
Management- decides to encourage or discourage unionization.
Labor Unions- seek to give workers formal and independent voice through collective action in setting employment terms and conditions.
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Union Structure, Administration & Membership
National and International Unions Craft unions Industrial unions
Local Unions Responsible for contract negotiations and
day-to-day contract administration, including grievance procedure.
AFL-CIO Not a union but rather an association that
advances shared interest of its member unions at the national level.
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Provisions of Collective Bargaining Contracts
• Functions, rights & responsibilities
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Reasons for Decline in Union Membership
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Legal Framework
Wagner Act of 1935 (NLRA) enshrined collective bargaining as the preferred mechanism for settling labor-management disputes.
Section 7 of the NLRA: employees have the
"right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing and to engage in other concerted activities for the purpose of collective bargaining."
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Unfair Labor Practices (ULPs)
NLRA prohibits certain activities by both employers and labor unions.
Employers cannot: interfere with, restrain, or coerce employees in
exercising their Section 7 rights. dominate or interfere with a union. discriminate against an individual for exercising his
or her right to join or assist a union. discriminate against employees for providing
testimony relevant to enforcement of the NLRA. refuse to bargain collectively with a certified union.
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Unfair Labor Practices of Unions
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Enforcement
National Labor Relations Board (NLRB) enforces NLRA. NLRB is a five-member board appointed
by the president with 33 regional offices. NLRB’s major functions:
1. conduct & certify representation elections.2. prevent unfair labor practices.
ULP charges are filed and investigated by regional offices.
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Why Do Employees Join Unions?
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Organizing Process & Legal Framework
An election may be held if at least 30% of employees in the bargaining unit sign authorization cards.
Secret ballot election will be held. The union is certified by NLRB if a simple majority of employees vote for it.
Decertification election may be held if no other election has been held within the year or if no contract is in force.
Certain categories of employees cannot be included in bargaining units-agricultural laborers, independent contractors, supervisors, and managers.
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Organizing Campaigns
NLRB may set aside election results if the employer created an atmosphere of confusion or fear of reprisals.
Associate union membership-union receives dues in exchange for services but does not provide representation in collective bargaining.
Corporate campaigns bring public, financial or political pressure on employers during the organizing and negotiating process.
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Union and Management Interactions:
Negotiation Process
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7 Steps to Prepare Managers for Negotiations
1. Establish interdepartmental contract objectives.2. Review old contract.3. Prepare and analyze data.4. Anticipate union demands.5. Establish costs of various contract provisions.6. Make preparations for a strike.7. Determine strategy and logistics.
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Negotiation Stages and Tactics
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Management’s Willingness to Strike
Most negotiations do not result in a strike since it is often not in the best interest of either party.
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Management’s Willingness to Strike
7 Factors If Management Is Able To Strike:1. Product Demand
2. Product Perishability
3. Technology
4. Availability of Replacement Workers5. Multiple Production Sites and Staggered
Contracts
6. Integrated Facilities
7. Lack of Substitutes for Product
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Alternatives to Strikes
Mediation-Has no formal authority to force a solution; acts as a facilitator for parties.
Fact finder-Investigates and reports on reasons for dispute and both sides' positions.
Arbitration-Process through which a neutral party makes a final and binding decision.
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Grievance Procedure
Negotiation process occurs every three years.
Negotiation & administration processes are linked.
Effectiveness of grievance procedures’ three criteria:1. How well are day-to-day problems resolved?2. How well does the process adjust to changing
circumstances?3. In multi-unit contracts, how well does the
process handle local contract issues?
Duty of Fair Representation-all members have equal access to & representation by the union.
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Grievance ProcedureArbitration is a final and binding step.
7 criteria arbitrators used to reach decisions:1. Did the employee know the rule & consequences
of violating it?2. Was the rule applied in a consistent &
predictable way? 3. Were facts collected in a fair & systematic way?4. Did the employee have the right to question
facts & present a defense?5. Does the employee have the right of appeal? 6. Is there progressive discipline?7. Are there mitigating circumstances?
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New Labor Management Strategies
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Labor Relations Outcomes
Strikes impose significant costs on union members, employers, and society.
Wages and Benefits In 2010, private-sector unionized workers received 9%
higher wages that nonunion counterparts. Total compensation was 29% higher for union-covered
employees because of unions’ effect on benefits.
Productivity effects of unions is debated. Union workers are more productive than nonunion
workers.
Profits and Stock Performance may suffer under unionization if costs are raised.
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Wages and Benefits
Besides pay and benefits, unions also typically influence the way pay and promotions are determined.
Whereas management often seeks to deal with employees as individuals, emphasizing performance differences in pay and promotion decisions, unions seek to build group solidarity and avoid the possibly arbitrary treatment of employees.
Although wages & benefits are higher for union members, job satisfaction is lower.
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International Context
Except for China, Russia and Ukraine, U.S. has more union members than any other country.
Growing globalization of markets will continue to put pressure on labor costs and productivity.
U.S. differs from W. & N. Europe in formal worker participation in decision making.
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Public Sector
In 2010 37.4% government employees were union members.
Strikes are illegal at the federal level and in many states for government workers.
In 2010, 6 of 11 major work stoppages were in the public sector.
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Summary Labor unions seek to represent their members’
interests in the workplace.
May witness diminished ability to compete effectively in global economy.
Management in nonunion companies feel compelled to resist unionization.
Union losses in membership and bargaining power in the private sector.
Management and unions are seeking more effective ways of working together to enhance competitiveness while giving employees a voice in workplace decisions.
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