chapter 14 the dynamics of labor relations

Copyright © 2004 South-Western. All rights reserved. 14–2

ObjectivesAfter studying this chapter, you should be able to:

1. Identify and explain the principal federal laws that provide the framework for labor relations.

2. Explain the reasons employees join unions.

3. Describe the process by which unions organize employees and gain recognition as their bargaining agent.

4. Discuss the bargaining process and the bargaining goals and strategies of a union and an employer.


Objectives (cont’d)After studying this chapter, you should be able to:

5. Differentiate the forms of bargaining power that a union and an employer may utilize to enforce their bargaining demands.

6. Describe a typical union grievance procedure and explain the basis for arbitration awards.

7. Discuss some of the contemporary challenges to labor organizations.


Major Labor Laws

• Railway Labor Act (RLA) of 1926• Norris LaGuardia Act (Anti-Injunction Act) • Wagner Act (National Labor Relations Act) of

1935• Taft-Harley Act (Labor-Management Relations

Act) of 1947• Landrum-Griffin Act (Labor-Management

Disclosure Act) of 1959

Presentation Slide 14–1


Government Regulation of Labor Relations

• The Railway Labor Act (RLA) of 1926Purpose of the act is to avoid service interruptions

resulting from disputes between railroads and their operating unions.

National Mediation BoardNational Railway Adjustment Board

• The Norris-LaGuardia Act of 1932Restricts the ability of employers to obtain an

injunction against unions for their lawful activities.


Government Regulation of Labor Relations

• The Wagner Act (National Labor Relations Act) of 1935Protects employee rights to organize and bargain

collectively through representatives of their choice.Created the National Labor Relations Board (NLRB)

to govern labor relations in the United States. Holds secret ballot union representation elections. Prevents and remedies unfair labor practices.


Wagner Act

• Section 7 of the Act guarantees these rights:

To self-organization, to form, join, or assist labor organizations, to bargain collectively through freely chosen representatives.

To engage in concerted activities, for the purpose of collective bargaining or other mutual aid or protection.

To refrain from any or all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment.


Unfair Labor Practices (ULPs)

• Section 8 of the Wagner Act outlawed employer practices that deny employees their rights and benefits:

Interference with Section 7 rights

Domination of a union (company union)

Discrimination against union members

Arbitrary discharge of union members

Refusal to bargain with the union



Amendments to the Wagner Act

• The Taft-Hartley Act (The Labor-Management Relations Act) of 1947Balances the rights and duties of labor and

management in the collective bargaining arena by defining unfair union practices.

• The Landrum-Griffin Act (Labor-Management Reporting and Disclosure Act) of 1959Safeguards union member rights and prevents

racketeering and other unscrupulous practices by employers and union officers.


Unfair Union Practices

Interfering with Section 7 rights of employeesInterfering with representation electionsInfluencing employers to discriminate with

regard to union membershipRefusal to bargain collectively with employerInterference with certified employee

representative’s relationship with employerAssessment of excessive initiation fees and

dues on bargaining unit members“Featherbedding”


Labor Relations Process

1. Workers desire collective representation

2. Union begins its organizing campaign

3. Collective negotiations lead to a contract

4. The contract is administered


The Labor RelationsProcess

Figure 14.1


Why Employees Unionize

• As a result of economic needs (wages and benefits)

• Dissatisfaction with managerial practices

• To fulfill social and status needs.

• Unionism is viewed as a way to achieve results they cannot achieve acting individually

• To comply with union-shop provisions of the labor agreement in effect where they work


OrganizingCampaigns Union/Employee ContactUnion/Employee ContactUnion/Employee ContactUnion/Employee Contact

Initial Organizational Initial Organizational MeetingMeeting

Initial Organizational Initial Organizational MeetingMeeting

Formation of In-House Formation of In-House CommitteeCommittee

Formation of In-House Formation of In-House CommitteeCommittee

Election Petition and Election Petition and Voting PreparationVoting Preparation

Election Petition and Election Petition and Voting PreparationVoting Preparation

Contract NegotiationsContract NegotiationsContract NegotiationsContract Negotiations

Steps in the Steps in the OrganizingOrganizing

ProcessProcess

Steps in the Steps in the OrganizingOrganizing

ProcessProcess


United Food And Commercial Workers International Union Authorization Card

HRM 2


Aggressive Organizing Tactics

• Political Involvement• Union Salting• Organizer Training• Corporate Campaigns• Information Technology

Union NOW!!



Employer Tactics Opposing Unionization

• Stressing favorable employer-employee relationship experienced without a union.

• Emphasize current advantages in wages, benefits, or working conditions the employees may enjoy

• Emphasize unfavorable aspects of unionism: strikes, union dues, abuses of legal rights

• Use statistics to show that unions commit large numbers of unfair labor practices.

• Initiate legal action when union members and leaders engage in unfair labor practices


How Employees Become Unionized

• Bargaining UnitA group of two or more employees who share

common employment interests and conditions and may reasonably be grouped together for purposes of collective bargaining.

• Exclusive RepresentationThe legal right and responsibility of the union to

represent all bargaining unit members equally, regardless of whether employees join the union or not.


NLRB ElectionPoster

HRM 2


The Labor Organization Process

Workers Seek Collective Representation

Union Begins TheUnion Begins TheOrganizing ProcessOrganizing Process

Collective Bargaining For A ContractCollective Bargaining For A Contract

Contract AdministrationContract Administration

ManagementManagement LaborLabor

Representation Election is HeldRepresentation Election is Held


Impact of Unionization on Managers

• Challenges to Management PrerogativesManagement prerogatives versus union participation

in decision-making in the work place.

• Loss of Supervisory AuthorityConstraints on management in directing and

disciplining the work force by terms of the collective bargaining agreement.


Union Structure and Governance

• Craft Unions• Industrial Unions• Employee Associations• AFL-CIO• National Unions

• Local Unions



Types of Unions

• Craft unionsUnions that represent skilled craft workers

• Industrial unionsUnions that represent all workers—skilled,

semiskilled, unskilled—employed along industry lines

• Employee associationsLabor organizations that represent various groups of

professional and white-collar employees in labor-management relations.


Structure of the AFL-CIO

GENERAL BOARDGENERAL BOARD

Executive members and Executive members and principal officer of each principal officer of each international union affiliateinternational union affiliate

Meets upon call of federation Meets upon call of federation president of executive councilpresident of executive council

GENERAL BOARDGENERAL BOARD

Executive members and Executive members and principal officer of each principal officer of each international union affiliateinternational union affiliate

Meets upon call of federation Meets upon call of federation president of executive councilpresident of executive council

Standing Standing committeescommittees

Standing Standing committeescommittees

Staff Staff departmentsdepartments

Staff Staff departmentsdepartments

Affiliated national and Affiliated national and international unionsinternational unions

Affiliated national and Affiliated national and international unionsinternational unions

Local unions of national Local unions of national and international unionsand international unions

Local unions of national Local unions of national and international unionsand international unions

Local unions affiliated Local unions affiliated directly with AFL-CIOdirectly with AFL-CIO

Local unions affiliated Local unions affiliated directly with AFL-CIOdirectly with AFL-CIO

Affiliated state bodiesAffiliated state bodiesAffiliated state bodiesAffiliated state bodies

Local bodiesLocal bodiesLocal bodiesLocal bodies



Structure and Functions of the AFL-CIO

• The “House of Labor”

Disseminates labor policy developed by leaders of affiliated unions.

Coordinates organizing activities among affiliated unions.

Provides research and other assistance through its various departments.

Lobbies before legislative bodies on labor subjects

Publicizes the concerns and benefits of unionization

Resolves disputes between different unions as they occur (preventing “raiding”)


Typical Organization of a Local Union

Local Union Meeting (Normally Monthly)Local Union Meeting (Normally Monthly)

PresidentPresident

Business Representative

Business Representative

Various Committee ChairpersonsVarious Committee Chairpersons

Vice-PresidentsVice-Presidents

Secretary/TreasurerSecretary/Treasurer

Sergeant at ArmsSergeant at Arms

Training and Education

Training and Education

Grievance Committee:

Chief Steward and Shop Stewards

Grievance Committee:

Chief Steward and Shop Stewards

Collective Bargaining

Collective Bargaining

SocialSocial

Local Union MembersLocal Union Members



Structure and Functions of Local Unions

• Local OfficersElected officials who lead the union and serve on the

bargaining committee for a new contract.

• Union StewardAn employee, as a nonpaid union official, represents

the interests of members in their relations with management.

• Business UnionismThe term applied to the goals of U.S. labor

organizations, which collectively bargain wages, hours, job security, and working conditions.


Types of Arbitration

• Compulsory Binding ArbitrationA process for employees such as police officers,

firefighters, and others in jobs where strikes cannot be tolerated to reach agreement.

• Final-offer ArbitrationThe arbitrator must select one or the other of the final

offers submitted by the disputing parties with the award is likely to go to the party whose final bargaining offer has moved the closest toward a reasonable settlement.


The Collective Bargaining Process

Figure 14.2

PREPARE FOR PREPARE FOR NEGOTIATIONSNEGOTIATIONS

------------------------------------------------------------• Gather dataGather data

• Form bargaining termsForm bargaining terms

PREPARE FOR PREPARE FOR NEGOTIATIONSNEGOTIATIONS

------------------------------------------------------------• Gather dataGather data

• Form bargaining termsForm bargaining terms

DEVELOP DEVELOP STRATEGIESSTRATEGIES

------------------------------------------------------------• Develop management Develop management

proposals and limits of proposals and limits of concessionsconcessions

• Consider opponents’ goalsConsider opponents’ goals• Make strike plansMake strike plans

DEVELOP DEVELOP STRATEGIESSTRATEGIES

------------------------------------------------------------• Develop management Develop management

proposals and limits of proposals and limits of concessionsconcessions

• Consider opponents’ goalsConsider opponents’ goals• Make strike plansMake strike plans

CONDUCT CONDUCT NEGOTIATIONSNEGOTIATIONS

----------------------------------------------------------------• Bargain in good faithBargain in good faith• Analyze proposalsAnalyze proposals• Resolve proposalsResolve proposals

• Stay within bargaining zoneStay within bargaining zone

CONDUCT CONDUCT NEGOTIATIONSNEGOTIATIONS

----------------------------------------------------------------• Bargain in good faithBargain in good faith• Analyze proposalsAnalyze proposals• Resolve proposalsResolve proposals

• Stay within bargaining zoneStay within bargaining zone

FORMALIZE FORMALIZE

AGREEMENTAGREEMENT------------------------------------------------------------

• Clarify contract languageClarify contract language• Ratify agreementRatify agreement

FORMALIZE FORMALIZE

AGREEMENTAGREEMENT------------------------------------------------------------

• Clarify contract languageClarify contract language• Ratify agreementRatify agreement

11 22

44 33


Strikes Legal requirements

Lockouts Strike replacements

Boycotts


The Bargaining Process

• Collective Bargaining ProcessThe process of negotiating a labor agreement,

including the use of economic pressures by both parties.

• Bargaining ZoneArea within which the union and the employer are

willing to concede when bargaining.

• Interest-based BargainingProblem-solving bargaining based on a win-win

philosophy and the development of a positive long-term relationship.


The Bargaining Zone and Negotiation Influences

Figure 14.3

Source: Adapted from Ross Stagner and Hjalmar Rosen, Psychology of Union-Management Relations (Belmont, Calif.: Wadsworth Publishing Company, 1965), 96. Adapted with permission from Brooks/Cole Publishing Co.


Items In A Labor Agreement

• Typical clauses will cover:WagesVacationsHolidaysWork schedulesManagement rightsUnion securityTransfersDiscipline

Grievance proceduresNo strike/no lockout

clause Overtime Safety proceduresSeverance pay Seniority Pensions and benefits Outsourcing

HRM 5a


Items In A Labor Agreement (cont’d)

• Progressive clauses will cover:Employee access to recordsLimitations on use of performance evaluation Elder care leave Flexible medical spending accounts Protection against hazards of technology equipment

(VDTs)Limitations against electronic monitoringProcedures governing drug testing Bilingual stipends Domestic partnership benefits

HRM 5b


Management and Union Power in Collective Bargaining

• Bargaining PowerThe power of labor and management to achieve their

goals through economic, social, or political influence.

• Union Bargaining PowerStrikes, pickets, and boycotts

• Management Bargaining PowerHiring replacement workersContinuing operations staffed by managementLocking out employees



PicketingStriking

Union Power in Collective Bargaining

Boycotting

BoycottOur

EmployerThis UnionOn Strike

UnfairOn

Strike

Don’t

Buy Here


Employer Power in Collective Bargaining

Demanding concessionsDemanding concessionsDemanding concessionsDemanding concessions

Locking out workersLocking out workersLocking out workersLocking out workers

Management methods for applying economic pressure during bargaining:Management methods for applying economic pressure during bargaining:

Outsourcing normal workOutsourcing normal workOutsourcing normal workOutsourcing normal work

Hiring replacement workersHiring replacement workersHiring replacement workersHiring replacement workers


Union Security Agreements

• Dues CheckoffGives the employer the responsibility of withholding

union dues from the paychecks of union members who agree to such a deduction.

• “Shop” AgreementsRequire employees to join or support the union.Union shop requires employee membership.Agency shop allows voluntary membership;

employee must pay union dues and fees.


Five-StepGrievanceProcedure

• Grievance ProcedureA formal procedure that provides for the union to represent members and nonmembers in processing a grievance

Figure 14.4



Grievance Arbitration

• Rights ArbitrationArbitration over interpretation of the meaning of

contract terms or employee work grievances.

• Fair Representation DoctrineThe doctrine under which unions have a legal

obligation to provide assistance to both members and nonmembers in labor relations matters.


Grievance (Rights) Arbitration

Submission agreement and awardsSubmission agreement and awardsSubmission agreement and awardsSubmission agreement and awards

Rights arbitration and EEO conflictsRights arbitration and EEO conflictsRights arbitration and EEO conflictsRights arbitration and EEO conflicts

Significant issues in using arbitration as a method for dispute resolution:Significant issues in using arbitration as a method for dispute resolution:

Deciding to use binding arbitrationDeciding to use binding arbitrationDeciding to use binding arbitrationDeciding to use binding arbitration

Fair Representation DoctrineFair Representation DoctrineFair Representation DoctrineFair Representation Doctrine

Methods for choosing an arbitratorMethods for choosing an arbitratorMethods for choosing an arbitratorMethods for choosing an arbitrator


The Arbitration Process

• Arbitrator declares the hearing open and obtains the submission agreement.

• Parties present opening statements.

• Each side presents its case using witnesses and evidence; witnesses can be cross examined.

• Parties make closing statements.• Arbitrator closes hearing and designates date

and time for rendering the award.



The Arbitration Decision

• Four factors arbitrators use to decide cases:

The wording of the labor agreement (or employment policy in nonunion organizations).

The submission agreement (statement of problem to be solved) as presented to the arbitrator.

Testimony and evidence offered during the hearing.

Arbitration criteria or standards (similar to standards of common law) against which cases are judged.



Current Challenges to Unions

Employers’ focus on Employers’ focus on maintaining nonunion statusmaintaining nonunion statusEmployers’ focus on Employers’ focus on maintaining nonunion statusmaintaining nonunion status

Important issues confronting unionsImportant issues confronting unionsImportant issues confronting unionsImportant issues confronting unions

Foreign competition and Foreign competition and technological changetechnological changeForeign competition and Foreign competition and technological changetechnological change

The long-term decrease in The long-term decrease in union membershipunion membershipThe long-term decrease in The long-term decrease in union membershipunion membership

chapter 14 the dynamics of labor relations

Recruiting & HR

labor organizations

duties of labor

union officers

union membershiprefusal

safeguards union member

bargaining process

bargaining goals

bargaining demands