copyright ©2012 pearson education, inc. publishing as prentice hall working with organized labor...

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Working with Organized Labor

Chapter 15

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Chapter 15 Learning Outcomes

Understand why employees join unions. Understand the National Labor Relations

(Wagner) Act and how the National Labor Relations Board regulates labor practices and union elections.

Describe Labor Relations in the U.S. and other parts of the world.

Identify Labor Relations strategies and how they affect operational and tactical labor relations decisions.

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Chapter 15 Learning Outcomes

Describe the three phases of the labor relations process: union organizing, collective bargaining and contract administration

Explain on the union grievance procedure works and why the supervisor’s role is critical in achieving sound labor relations with a union

Identify the ways in which a union can affect a company’s entire pattern of HRM

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History of Unions

U.S. Labor Unions:

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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


Overview of Unions

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Union An independent organization that

represents employees’ interests and deals with issues such as wages, work hours and working conditions

Employees join unions when: Dissatisfied with aspect of their job Feel they lack influence with

management See unionization as a solution


The Legal Environment

Three Important Laws

Wagner Act (1935)

Taft-Hartley Act (1947)

Landrum-Griffin Act (1959)

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The Wagner Act (NLRB Act) National Labor Relations Board (NLRB)

Independent federal agency Certifies elections Investigates unfair labor practice charges

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 Acts

∎ 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 unethical practices

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∎ The Landrum-Griffin Act∎ Protects union members from union

leaders∎ Unions must have bill of rights and

constitution∎ Union elections regulated by

government


Labor Relations in the U.S.

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Accepts capitalist economic structure

Six characteristics Business unionism

Focus on improving worker well-being

Less so on running the company

Unions structured by type of job AFL-CIO Change to Win

Focus on collective bargaining


Labor Relations in the U.S.

Labor contracts Specify terms of employment and work rules

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Growth of unions in the public sector Five times higher than private

sector Less bargaining power

Government power is diffuse Many unions not permitted to

strike Voting provides some political

power over employer


Labor Relations in the U.S. Adversarial Nature of Labor-Management

Relations Shrinking Union Membership

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Labor Relations in Other Countries

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France—more politically involved China—low political and economic

involvement Sweden—high both politically and

economically Germany:

Works Councils—joint committees Codetermination—workers on board of

directors Japan:

Enterprise Unions—all workers in one organization

System fostered by lifelong employment


Labor Relations Strategy

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Labor Relations Strategy Overall plan for dealing

with labor unions Ranges from open

conflict to labor-management cooperation


Labor Relations Strategy

Two Basic Strategies Union Acceptance Union Avoidance

Union Substitution Union

Suppression

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Labor Relations Process

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

Act

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Collective Bargaining

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

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Bargaining Power Bargaining Types

Distributive Integrative


Guidelines for Integrative Bargaining

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

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Bargaining Topics Mandatory

Wages, hours, and employment conditions

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

benefits Illegal

Featherbedding Discriminatory practices, etc.


Impasses in Bargaining

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Role of MediatorEconomic StrikeWildcat StrikeLockout


Contract Administration

Grievance Procedure Step by step process used to settle disputes Union steward—advocate for the employee Arbitration—last step in grievance process

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Two Types of Grievances Contract interpretation Employee discipline


The Manager’s Role in Labor Relations

Labor Relations Specialist Negotiate labor contracts Resolve grievances Advise leaders 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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The Impact of Unions on HRM

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Without a union managers are more likely to create policies that are focused on efficiency.

With a union management is forced to adopt policies that represent what the majority of the workers in the union want.


The Impact of Unions on HRM

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Staffing – seniority based 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


Summary and Conclusions Unions—thrive when employees are

dissatisfied and lack influence with management

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

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Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 15-25

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copyright ©2012 pearson education, inc. publishing as prentice hall working with organized labor...

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