chapter 17 union/management relations

Copyright © 2005 Thomson Business & Professional Publishing.All rights reserved.

ROBERT L. MATHIS

JOHN H. JACKSON

PowerPoint Presentation by Charlie CookThe University of West Alabama

Union/ManagemenUnion/Management t RelationsRelations

Chapter 17Chapter 17

SECTION 5SECTION 5Employee Employee RelationsRelations

Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved.

17–2

Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives

• After you have read this chapter, you should be able to:

Describe what a union is and explain why employees join unions.

Identify several reasons for the decline in union membership.

Explain the acts that compose the National Labor Code.

Discuss the stages of the unionization process.

Describe the typical collective bargaining process.

Define grievance and explain why a grievance procedure is important for employers.


17–3

Nature of UnionsNature of UnionsNature of UnionsNature of Unions

• UnionA formal association of workers that promotes the

interests of its members through collective action.

• Why Employees UnionizeThey are dissatisfied with how they are treated by

their employers.They believe that unions can improve their work

situations.


17–4

Factors Leading to Employee UnionizationFactors Leading to Employee UnionizationFactors Leading to Employee UnionizationFactors Leading to Employee Unionization

Figure 17–1


17–5

Typical Division of HR Responsibilities: Typical Division of HR Responsibilities: Labor RelationsLabor Relations

Typical Division of HR Responsibilities: Typical Division of HR Responsibilities: Labor RelationsLabor Relations

Figure 17–2


17–6

Global Labor Union IssuesGlobal Labor Union IssuesGlobal Labor Union IssuesGlobal Labor Union Issues

• Union membership is falling in advanced countries.

• High unemployment is creating pressure for change.

• Child labor is an issue in some countries.• Co-determination

A practice whereby union or worker representatives are given positions on a company’s board of directors.


17–7

Union Membership as a Percentage of the Workforce Union Membership as a Percentage of the Workforce for Selected Countriesfor Selected Countries

Union Membership as a Percentage of the Workforce Union Membership as a Percentage of the Workforce for Selected Countriesfor Selected Countries

Figure 17–3


17–8

Unions in the U.S.Unions in the U.S.Unions in the U.S.Unions in the U.S.

• Union Movement Emphases:

Focused on “bread-and-butter” economic issues—wages, benefits, job security, and working conditions.

Organized by kind of job and employer.

Seek multi-year collective agreements on economic issues as “contracts.”

Maintain competitive relations with management.


17–9

Union StructureUnion StructureUnion StructureUnion Structure

• Craft UnionA union whose members do one type of work, often

using specialized skills and training.

• Industrial UnionA union that includes many persons working in the

same industry or company regardless of jobs held.

• FederationA group of autonomous national and international

unions.


17–10

Union Structure (cont’d)Union Structure (cont’d)Union Structure (cont’d)Union Structure (cont’d)

• Local UnionA union centered around either a particular employer

or a particular geographic location.

• Business AgentA full-time union official who operates the union office

and assists union members.

• Union StewartAn employee elected to serve as the first-line

representative of unionized employees.


17–11

Union Membership as a Percentage of the U.S. WorkforceUnion Membership as a Percentage of the U.S. WorkforceUnion Membership as a Percentage of the U.S. WorkforceUnion Membership as a Percentage of the U.S. Workforce

Figure 17–4Source: U.S. Department of Labor, Bureau of Labor Statistics. 2004.


17–12

Union Membership by IndustryUnion Membership by IndustryUnion Membership by IndustryUnion Membership by Industry

Figure 17–5Source: U.S. Department of Labor, Bureau of Labor Statistics. 2004.


17–13

Reasons for Union Decline in the U.S.Reasons for Union Decline in the U.S.Reasons for Union Decline in the U.S.Reasons for Union Decline in the U.S.

Industrial ChangesIndustrial Changes Industrial ChangesIndustrial Changes

Geographic ChangesGeographic ChangesGeographic ChangesGeographic Changes Workforce ChangesWorkforce ChangesWorkforce ChangesWorkforce Changes

Declining Declining Union Union

MembershipMembership

Declining Declining Union Union

MembershipMembership


17–14

Union Targets for Membership GrowthUnion Targets for Membership GrowthUnion Targets for Membership GrowthUnion Targets for Membership Growth

ProfessionalProfessionalWorkersWorkers

ProfessionalProfessionalWorkersWorkers

Contingent andContingent andPart-Time WorkersPart-Time Workers

Contingent andContingent andPart-Time WorkersPart-Time Workers

Low-SkillLow-SkillWorkersWorkers

Low-SkillLow-SkillWorkersWorkers

Union Union OrganizingOrganizing

Union Union OrganizingOrganizing


17–15

The History of American UnionsThe History of American UnionsThe History of American UnionsThe History of American Unions

• 1794 Shoemakers’ strike• 1806 Shoemakers’ strike (“criminal conspiracy”)• 1886 American Federation of Labor (AFL)• 1938 Congress of Industrial Organizations CIO

• 1926 Railway Labor Act

• 1935 National Labor Relations Act (Wagner Act)• 1932 Norris-LaGuardia Act• 1947 Taft-Hartley Act• 1957 AFL-CIO merger

• 1959 Landrum-Griffin Act

• 1978 Civil Service Reform Act


17–16

National Labor CodeNational Labor CodeNational Labor CodeNational Labor Code

Figure 17–6


17–17

Right-to-Work StatesRight-to-Work StatesRight-to-Work StatesRight-to-Work States

Figure 17–7


17–18

Typical Unionization ProcessTypical Unionization ProcessTypical Unionization ProcessTypical Unionization Process

Figure 17–8


17–19

Legal Do’s and Don’ts for Managers During the UnionizationLegal Do’s and Don’ts for Managers During the UnionizationLegal Do’s and Don’ts for Managers During the UnionizationLegal Do’s and Don’ts for Managers During the Unionization

Figure 17–9


17–20

Unfair Labor Practices: EmployerUnfair Labor Practices: EmployerUnfair Labor Practices: EmployerUnfair Labor Practices: Employer

• Interfering with the organizing and collective bargaining rights of employees.

• Dominating or interfering with any labor organization.

• Encouraging or discouraging membership in a particular union.

• Discharging persons for organizing activities or union membership.

• Refusing to bargain collectively.


17–21

Labor Relations: Key TermsLabor Relations: Key TermsLabor Relations: Key TermsLabor Relations: Key Terms

• Right-to-Work Laws State laws that prohibit contracts requiring employees to join unions as

a condition of obtaining or continuing employment.

• Closed Shop (outlawed) A firm that requires individuals to join a union before they can be hired.

• Union Shop A clause in a collective bargaining agreement that requires new

employees to join the union, usually 30 to 60 days after being hired, or be fired.

• Agency Shop Requires employees who do not join the union to pay fees for the

union’s representation services.

• Maintenance-of-membership Requiring workers to remain members of the union for the period of the

labor contract.


17–22

Unionization: Key TermsUnionization: Key TermsUnionization: Key TermsUnionization: Key Terms

• Salting The practice in which unions hire and pay people to apply for jobs at

certain companies.

• Union Authorization Card A card signed by an employee to designate a union as his or her

collective bargaining agent.

• Bargaining Unit Employees eligible to select a single union to represent and bargain

collectively for them.

• Certification The NLRB’s grant of the union’s legal status as the employees’

representative.

• Decertification The process whereby a union is removed as the representative of a

group of employees.


17–23

Bargaining UnitsBargaining UnitsBargaining UnitsBargaining Units

• “Community of Interest”Wages, hours, and working conditions

Traditional industry groupings for bargaining purposes

Physical location and amount of interaction and working relationships among employee groups

Supervision by similar levels of management

• Supervisors and Bargaining UnitsSupervisors are excluded from bargaining units.

Defined as any individual with the authority to hire, transfer, discharge, discipline, and who uses independent judgment with employees.


17–24

Collective Bargaining IssuesCollective Bargaining IssuesCollective Bargaining IssuesCollective Bargaining Issues

• Collective Bargaining The process whereby representatives of management and

workers negotiate a labor agreement covering wages, hours, and other terms and conditions of employment.

• Management Rights Those rights reserved to the employer to manage, direct, and

control the workplace.

• Union Security Provisions Contract provisions that aid the union in obtaining and retaining

members.

• Dues Checkoff Provision A contract provision for the automatic deduction of union dues

from the paychecks of union members.


17–25

Continuum of Collective Bargaining RelationsContinuum of Collective Bargaining RelationsContinuum of Collective Bargaining RelationsContinuum of Collective Bargaining Relations

Figure 17–10


17–26

Mandatory Bargaining IssuesMandatory Bargaining IssuesMandatory Bargaining IssuesMandatory Bargaining Issues

• Issues identified specifically by labor laws or court decisions as subject to bargaining.

• Discharge of employees

• Grievances

• Work schedules

• Union security and dues checkoff

• Retirement and pension coverage

• Vacations

• Christmas bonuses

• Rest- and lunch-break rules

• Safety Rules

• Profit-sharing plans

• Required physical exam


17–27

Classification of Bargaining IssuesClassification of Bargaining IssuesClassification of Bargaining IssuesClassification of Bargaining Issues

• Permissive IssuesCollective bargaining issues that are not mandatory

but relate to certain jobs. Benefits for retired employees

Product prices (e.g., employee discounts) for employees

Performance bonds

• Illegal IssuesCollective bargaining issues that would require either

party to take an illegal action (e.g., discriminate in hiring).


17–28

The Bargaining ProcessThe Bargaining ProcessThe Bargaining ProcessThe Bargaining Process

Preparation and Initial Preparation and Initial DemandsDemands

Preparation and Initial Preparation and Initial DemandsDemands

Continuing Continuing Negotiations Negotiations in Good Faithin Good Faith

Continuing Continuing Negotiations Negotiations in Good Faithin Good Faith

Settlement and Settlement and Contract AgreementContract Agreement

RatificationRatification

Settlement and Settlement and Contract AgreementContract Agreement

RatificationRatification

Strikes and Strikes and LockoutsLockouts

Strikes and Strikes and LockoutsLockouts

Bargaining Bargaining ImpasseImpasse

ConciliationConciliationMediationMediationArbitrationArbitration

Bargaining Bargaining ImpasseImpasse

ConciliationConciliationMediationMediationArbitrationArbitration


17–29

Bargaining ImpasseBargaining ImpasseBargaining ImpasseBargaining Impasse

• ConciliationA process by which a third party attempts to keep

union and management negotiators talking so that they can reach a voluntary settlement.

• MediationA process by which a third party helps the negotiators

reach a settlement.

• ArbitrationA process that uses a neutral third party to make a

decision.


17–30

Typical Items in a Labor AgreementTypical Items in a Labor AgreementTypical Items in a Labor AgreementTypical Items in a Labor Agreement

Figure 17–11


17–31

Strikes and LockoutsStrikes and Lockouts

• StrikeA work stoppage in which union members refuse to

work in order to put pressure on an employer.

• LockoutShutdown of company operations undertaken by

management to prevent union members from working.

• Striker Replacements


17–32

Types of StrikesTypes of StrikesTypes of StrikesTypes of Strikes

• Economic Strikes Strikes over economic issues (e.g., wages)

• Unfair labor practice strikes Strikes over illegal employer actions (e.g., refusal to bargain)

• Wildcat strikes Strikes not approved by the union

• Jurisdictional strikes Strikes in dispute over the ownership of work

• Sympathy strikes Expressions of support for other unions


17–33

Union-Management Cooperation IssuesUnion-Management Cooperation IssuesUnion-Management Cooperation IssuesUnion-Management Cooperation Issues

Employee OwnershipEmployee Ownership(ESOPs)(ESOPs)

Employee OwnershipEmployee Ownership(ESOPs)(ESOPs)

Cooperation andCooperation andJoint EffortsJoint Efforts

Cooperation andCooperation andJoint EffortsJoint Efforts

Employee Employee Involvement (Teams)Involvement (Teams)

Employee Employee Involvement (Teams)Involvement (Teams)

Union-Union-Management Management CooperationCooperation

Union-Union-Management Management CooperationCooperation


17–34

Grievance ManagementGrievance ManagementGrievance ManagementGrievance Management

• Complaint Indication of employee dissatisfaction

• GrievanceA complaint formally stated in writing

• Grievance ProceduresFormal channels used to resolve grievances.Union representation (Weingarten) rights

• Grievance ArbitrationMeans by which a third party settles disputes arising

from different interpretations of a labor contract.


17–35

Typical Division of HR Responsibilities:Typical Division of HR Responsibilities:Grievance ManagementGrievance Management

Typical Division of HR Responsibilities:Typical Division of HR Responsibilities:Grievance ManagementGrievance Management

Figure 17–12


17–36

Steps in a Typical Grievance ProcedureSteps in a Typical Grievance ProcedureSteps in a Typical Grievance ProcedureSteps in a Typical Grievance Procedure

Figure 17–13

chapter 17 union/management relations

Recruiting & HR