t e n t h e d i t i o n
Gary Gary DesslerDessler
ChapterChapter 15 15 Part Part 55 Employee Relations Employee Relations
Labor Relations and Labor Relations and Collective BargainingCollective Bargaining
Employee Relations Issues
• Policies, procedures, rules• Employee discipline• Grievances• Employee rights
Spring 2008 2
Policies, Procedures and Rules
• Policies:– A general guideline– For example: “XYZ, Inc. does not tolerate sexual harassment”
• Procedures– A customary method– For example: the steps for reporting sexual harassment
• Rules– A specific guideline (“programmed decision”)– For example: sexually harassing a subordinate is cause for termination
Spring 2008 3
About Rules, Policies, and Procedures
• Why?– To ensure consistent treatment (i.e., fairness,
procedural justice)– To reduce time demands (programmed decisions)
• How communicated– Employee handbooks– Policy and procedure manuals
Spring 2008 4
Effective PPR
• Internally consistent• Only those that are necessary• Applicable• Understandable• Reasonable• Distributed and communicated• Enforced
Spring 2008 5
Employee Discipline
• Establishing discipline• Progressive discipline• Why managers don’t discipline employees• Why managers punish too soon
Spring 2008 6
Establishing Discipline
Spring 2008 7
EstablishRules
ChangeInappropriate
Behavior
CommunicateRules
AssessBehavior
Progressive Discipline
• What it is?– Gradual movement from less to more severe
penalties• Why?
– Fair treatment for employees (chance to improve)– Preserve company’s investment in employees– Maintain employee morale– Ethical considerations– Professional approach to discipline– Legal considerations
Spring 2008 8
Steps in Progressive Discipline
• General steps– Verbal warning– Verbal caution (recorded)– Formal written reprimand– Suspension (paid or unpaid)– Demotion or termination
• May start at a higher level for more severe offences (for example, immediate termination for drug use)
Spring 2008 9
Why Managers Don’t Discipline Employees
1. Lack of training2. Lack of support from above3. Fear of acting alone4. Guilt5. Loss of friendships6. Loss of time7. Fear of losing one’s temper8. Rationalization9. Lack of appropriate policies and rules10. Fear of lawsuits
Spring 2008 10
Why Managers Punish Too Soon
1. Lack of training2. Not aware of alternatives3. Fast, quick solution to problems4. Personal gratification5. Frustration6. Belief that punishment is the best way to
change employee behavior
Spring 2008 11
Employment at Will• Common law doctrine:
– Employers may hire, fire, demote and promote whomever they choose, unless a law exists to the contrary
– Depends on state courts’ interpretations
• General exceptions to EAW:– Public policy
• Violation of law• Filing workers’ comp claim• Refusal to commit illegal acts)
– Implied employment contract (the employee handbook)– Good faith and fair dealing
Spring 2008 12
Just Cause
• Reason for termination stems from a job-related, work performance problem
• Employee knew that the problem could result in termination• If necessary, a fair and impartial investigation has been
conducted (and documented)• Substantial evidence supports firing employee• Firing is not an unusually harsh action• Problems are handled consistently
Spring 2008 13
Grievances
• Procedure for dealing with employee dissatisfaction with management action
• Found in union and many non-unionized organizations (FedEx, for example)
• Involves appeals through various levels of management, sometimes hearing by management / employee panel
Spring 2008 14
Employee Rights
• Access to personnel records• Substance abuse / drug testing• Medical records and genetic testing• Off-the-job activities• Polygraphs and honesty testing• Miscellaneous
– Email and employee monitoring– Whistle blowing– Right to be aware of hazards– Plant and facility closings
Spring 2008 15
Access to Personnel Records
• Unauthorized individuals should not have access– Individual records are confidential information– Employer has responsibility to take reasonable precautions to ensure
this
• However, the employee has right to see his / her records• Employee also has the right to:
– Respond to unfavorable information and correct erroneous information
– Be notified (or possibly consent) if information is released to a third party
– Know how information is used internally
Spring 2008 16
Substance Abuse and Drug Testing
• Occurs in at least 85% of U.S. firms• Why?
– Absenteeism– Turnover– Accidents and workers’ compensation claims– Health care costs– Public safety
Spring 2008 17
Who Gets Tested?
• New hires (after conditional offer of employment)
• Probable cause (such as accidents)• Employees at random
– In certain industries, such as transportation– As a condition of being given a second chance
Spring 2008 18
Medical Records and Genetic Testing
• Employee medical records:– Must be kept separate from other personnel records– Medical conditions not grounds for dismissal if
employee can perform the job
• Genetic testing:– Are employee, spouse or dependents at risk for
developing an expensive-to-treat medical condition?– But…a certainty or just a predisposition?– Reluctance to hire and ADA
Spring 2008 19
Dating at Work
• Possibility of conflict of interest if employee is dating a competitor’s employee
• Possible perceptions (or reality !) of sexual harassment
• Employer’s moral standards (WalMart case)• Nepotism
– More and more, spouses and relatives are allowed to work for same employer
– Normally,not allowed to work in same unit, one can’t supervise the other
Spring 2008 21
Smoking
• The employer can prohibit / restrict at work• Difficult to forbid off-the-job (how to
enforce?)• No federal protection, but smokers may be
protected under state law (including Tennessee)– Some employers can ban smoking (primarily
around children)
Spring 2008 22
Language Issues
• Can employees speak a language other than English at work?– Yes, on breaks– No, not at work
Spring 2008 23
Polygraphs and Honesty Testing
• Polygraphs– Now illegal for pre-employment screening in most
instances– Can be used for security agencies, governments,
manufacturers of controlled substances– Can be used (with employee’s consent) for
internal investigations of theft or losses• Honesty testing
– A substitute for the polygraph?– Test validity?????
Spring 2008 24
Miscellaneous Issues
• E-mail and other employee monitoring– Employers are free to read email and monitor
productivity and other activities– Internet screens– Do need to notify employees that they are being
monitored• Whistle blowing• Right to be aware of hazards (OSHA)• Notification of plant and facility closings
(WARN)
Spring 2008 25
Why Do Workers Organize?
• Solidarity– To get their fair share of the pie.
• Improved wages, hours, working conditions, and benefits– To protect themselves from management whims.
• Conditions favoring employee organization– Low morale– Fear of job loss– Arbitrary management actions– Voice/Grievances
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14–26
The Labor Movement
• 1790–Skilled craftsmen organize into trade unions.• 1869–The Knights of Labor seek social reform.• 1886–American Federation of Labor pursues bread-
and-butter and improved working conditions.• 1935–National Labor Relations Act fosters organizing
and the rapid growth of labor unions.• 1947–Taft-Hartley Act regulates union activities.• 1955–AFL and CIO merge.• 1970s–Union membership peaks and begins to steadily
decline.
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14–27
Unions and the Law: Period of Strong Encouragement
• The Norris-LaGuardia Act of 1932– Guaranteed to each employee the right to
bargain collectively “free from interference, restraint, or coercion.
– Declared yellow dog contracts unenforceable.– Limited the courts’ abilities to issue injunctions
(stop orders) for activities such as peaceful picketing and payment of strike benefits.
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14–28
Unions and the Law: Period of Strong Encouragement (cont’d)
• National Labor Relations (or Wagner) Act of 1935– Banned certain unfair labor practices of
employers– Provided for secret-ballot elections and
majority rule for determining whether a firm’s employees would unionize.
– Created the National Labor Relations Board (NLRB) to enforce the act’s provisions.
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14–29
Unfair Employer Labor Practices
• To “interface with, restrain, or coerce employees” in exercising their legally sanctioned right of self-organization.
• To dominate or interfere with either the formation or the administration of labor unions.
• To discriminating in any way against employees for their legal union activities.
• To discharge or discriminate against employees who file unfair practice charges against the company.
• To refuse to bargain collectively with their employees’ duly chosen representatives.
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14–30
Unions and the Law: Period of Modified Encouragement and
Regulation (cont’d)• Taft-Hartley (Labor Management Relations)
Act of 1947 – Prohibited unfair union labor practices.– Enumerated the rights of employees as union
members– Enumerated the rights of employers– Allows the president of the United States to
seek an injunction that temporarily will bar a national emergency strike for 60 days.
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14–31
Unfair Union Labor Practices
• To restrain or coerce employees from exercising their guaranteed bargaining rights.
• To cause an employer to discriminate against employees in order to encourage or discourage their membership in a union.
• To refuse to bargain in good faith with the employer about wages, hours, and other employment conditions. Certain strikes and boycotts are also unfair practices.
• To engage in “featherbedding” (requiring an employer to pay an employee for services not performed).
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14–32
Taft-Hartley and Employers
• Rights– To express their views concerning union organization.
– To set forth the union’s record concerning violence and corruption, if appropriate.
• Restraints– Must avoid threats, promises, coercion, and direct interference
with workers who are trying to reach an organizing decision.
– Cannot meet with employees on company time within 24 hours of an election.
– Cannot suggest to employees that they vote against the union (in private, while they are out of their work area).
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14–33
Union Security• Closed shop
– The company can hire only union members. Congress outlawed this in 1947, but it still exists in some industries (such as printing).
• Union shop– The company can hire nonunion people, but they
must join the union after a prescribed period of time and pay dues. (If not, they can be fired.)
• Agency shop– Employees who do not belong to the union still must
pay union dues on the assumption that the union’s efforts benefit all the workers.
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14–34
Union Security (cont’d)
• Open shop– It is up to the workers whether or not they join
the union—those who do not, do not pay dues.
• Maintenance of membership arrangement– Employees do not have to belong to the union.
However, union members employed by the firm must maintain membership in the union for the contract period.
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14–35
Union Security (cont’d)
• Right-to-work laws– 12 Section 14(b) of the Taft-Hartley Act permits
states to pass statutes or constitutional provisions banning the requirement of union membership as a condition of employment and to forbid the negotiation of compulsory union membership provisions.
– Twenty-one “right to work states,” from Florida to Mississippi to Wyoming, ban all forms of union security.
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14–36
The Union Drive and Election
• Step 1. Initial contact– The union determines employees’ interest in
organizing, and sets up an organizing committee.– Labor Relations Consultants– Union Salting
• Step 2. Obtaining authorization cards– 30% of eligible employees in an appropriate
bargaining unit must sign cards authorizing the union to petition the NLRB for an election.
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14–37
The Organizing Drive
• Authorization cards– Let the union seek a representation election.
– Designate the union as a bargaining representative in all employment matters.
– State that the employee has applied for membership in the union and will be subject to union rules and bylaws.
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14–38
The Organizing Drive
• Employer responses to organizing– Can attack the union on ethical and moral grounds
and cite the cost of union membership.
– Cannot make promises of benefits.
– Cannot make unilateral changes in terms and conditions of employment that were not planned to be implemented prior to the onset of union organizing activity.
– Can inform employees of their right to revoke their authorization cards.
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14–39
The Union Drive and Election (cont’d)
• Step 3. Hold a hearing– Consent election
• Employer chooses not to contest union recognition at all.
– Stipulated election• The employer chooses not to contest the union’s right to an
election, and/or the scope of the bargaining unit, and/or which employees are eligible to vote in the election.
– Contest of the union’s right to an election• An employer can insist on an NLRB hearing to determine if
employees wish to elect a union to represent them.
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14–40
The Union Drive and Election (cont’d)
• Step 4. The campaign– Both sides present their platforms.
• Step 5. The election– Held within 30 to 60 days after the NLRB issues its
Decision and Direction of Election.– The election is by secret ballot; the NLRB provides
and counts the ballots.– The union becomes the employees’
representative by getting a majority of the votes cast in the election.
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15–41
How to Lose an NLRB Election
• Reason 1. Asleep at the switch
• Reason 2. Appointing a committee
• Reason 3. Concentrating on money and benefits
• Reason 4. Industry blind spots
• Reason 5. Delegating too much to divisions
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15–42
Union Avoidance: What Not to Do
• Human resources professionals must be very careful to do the following during union activities at their companies:
– Watch what you say. Angry feelings of the moment may get you in trouble.
– Never threaten workers with what you will do or what will happen if a union comes in.
– Don’t tell union sympathizers that they will suffer in any way for their support. Don’t terminate or discipline workers for engaging in union activities.
– Don’t interrogate workers about union sympathizers or organizers.
– Don’t ask workers to remove union screensavers or campaign buttons if you allow these things for other organizations.
– Don’t treat pro-union or anti-union workers any differently.
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15–43
Figure 15–4 Source: From the BLR Newsletter “Best Practices in HR.” Copyright © 2003, Business & Legal Reports, Inc. Reprinted with permission of the publisher, HRNext.com. Copyright HRNext.com, 2003.
Union Avoidance: What Not to Do (cont’d)– Don’t transfer workers on the basis of union affiliation or sympathies.
– Don’t ask workers how they or others intend to vote.
– Don’t ask employees about union meetings or any matters related to unions. You can listen, but don’t ask for any details.
– Don’t promise workers benefits, promotions, or anything else if they vote against the union.
– Avoid becoming involved in the details of the union’s election or campaign, and don’t participate in any petition movement against the union.
– Don’t give financial aid or any support to any unions.
• Any one of these practices may result in a finding of “unfair labor practices,” which may in turn result in recognition of a union without an election, as well as fines for your company.
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15–44
Figure 15–4 (cont’d)Source: From the BLR Newsletter “Best Practices in HR.” Copyright © 2003, Business & Legal Reports, Inc. Reprinted with permission of the publisher, HRNext.com. Copyright HRNext.com, 2003.
The Collective Bargaining Process
• What Is collective bargaining?– Both management and labor are required by law to
negotiate wage, hours, and terms and conditions of employment “in good faith.”
• What Is good faith bargaining?– Both parties communicate and negotiate.– They match proposals with counterproposals in a
reasonable effort to arrive at an agreement.– It does not mean that one party compels another to
agree to a proposal or make any specific concessions.
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15–45
Violations of Good Faith Bargaining• Surface bargaining• Inadequate concessions• Inadequate proposals and demands• Dilatory tactics• Imposing conditions.• Making unilateral changes in conditions.• Bypassing the representative.• Committing unfair labor practices during negotiations.• Withholding information• Ignoring bargaining items
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15–46
Classes of Bargaining Items
• Voluntary (permissible) bargaining items– Items in collective bargaining over which bargaining is neither illegal
nor mandatory—neither party can be compelled against its wishes to negotiate over those items.
• Illegal bargaining items– Items in collective bargaining that are forbidden by law; for example, a
clause agreeing to hire “union members exclusively” would be illegal in a right-to-work state.
• Mandatory bargaining items– Items in collective bargaining that a party must bargain over if they
are introduced by the other party—for example, pay.
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15–47
Bargaining Items
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15–48
Table 15–1
Mandatory
Rates of pay
Wages
Hours of employment
Overtime pay
Shift differentials
Holidays
Vacations
Severance pay
Pensions
Insurance benefits
Profit-sharing plans
Christmas bonuses
Company housing, meals, and discounts
Employee security
Job performance
Union security
Management–unionrelationship
Drug testing of employees
Permissible
Indemnity bonds
Management rights as tounion affairs
Pension benefits of retired employees
Scope of the bargaining unit
Including supervisors in the contract
Additional parties to thecontract such as the international union
Use of union label
Settlement of unfair labor changes
Prices in cafeteria
Continuance of past contract
Membership of bargaining team
Employment of strike breakers
Illegal
Closed shop
Separation of employeesbased on race
Discriminatory treatment
Source: Michael B. Carnell and Christina Heavrin, Labor Relations and Collective Bargaining (Upper Saddle River, NJ: Prentice Hall, 2001), p. 177.
Bargaining Stages
• Presentation of initial demands– Both parties are usually quite far apart on some issues.
• Reduction of demands– Each side trades off some of its demands to gain others.
• Subcommittee studies– The parties form joint subcommittees to try to work out reasonable
alternatives.
• An informal settlement– Each group goes back to its sponsor. Union seeks to have members
vote to ratify the agreement.
• Signing the formal agreement
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15–49
Key Terms
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15–50
closed shop
union shop
agency shop
open shop
right to work
Norris-LaGuardia Act (1932)
National Labor Relations (or Wagner) Act
National Labor Relations Board (NLRB)
Taft-Hartley Act (1947)
authorization cards
bargaining unit
decertification
collective bargaining
good faith bargaining
voluntary bargaining items
illegal bargaining items
mandatory bargaining items
impasse
mediation
fact finder
arbitration
strike
economic strike
unfair labor practice strike
wildcat strike
grievance
Introduction
• Management is a term used to describe the people who direct the activities of an organisation on behalf of its owners and the functions performed by those people.
• Why study management?
– A more assertive approach in recent years:• international competition has focused greater attention
on containing labour costs
6–52
Defining Management• To transform labour into productive output,
management establishes structures of control and co operation. E.g. management decides how work will be organized, at what pace workers will work , under which condition will they work, and how various employees will relate to one another.
• Two basic beliefs for management are management prerogative and workers as factors of production
6–53
Management Beliefs • Management prerogative – managers right to
manage an organisation.• MP can be defined as those areas of decision
making within an organisation over which managers claim to have an exclusive right to decide as they see what is fit
• The types of issues managers claim to be theirs to decide unilaterally are :
- No interference of trade unions - Hiring and firing- Promotions- Discipline- Production control - Decision on overtime etc.
6–54
Individual and collectivism
• Individualism – refers to the extent to which management gives importance to the individual employee and seeks to develop his/ her capacity and roles at work
• Low individualism – treating employees like a commodity by pursuing a tight control oriented policy of industrial relations
• High Individualism – management treat employees as valuable resources of organization. It involves extensive use of communication with individual employees. Staff development and retention are core priorities of the IR policy. Management devise attractive performance based payment system for its workers.
6–55
Collectivism
• Refers to which to the extent management recognizes the collective rights of the employees to have a say in those aspects of decision making which affect them individually or collectively
• Low collectivism – management is still interested in controlling or neutralizing the power of the unions. The extreme low degree of collectivism is called unitarist where unions are completely avoided
• High collectivism – consultative or co operative style of management
• Unions are encouraged to make constructive relationships with company
6–56
B. Employers’ Associations
What is an employers’ association• Gained prominence in recent years in shaping the government ‘s employment
relations policies and union busting activities• They are formed to achieve their sectional interests:
- promoting a particular trade or industry- improve their professional contacts- collectively regulate the terms and conditions of employment
• Trade associations vs. employer associations• Consisting predominantly of employers and whose activities include participating in
determining employees’ conditions of employment on behalf of its members (Plowman, 1991)
• The employer equivalent of unions for employees.
6–57
Why have employers’ associations
• Attracted attention of researchers since they are increasingly influencing the government’s economic and employment policies – theories on their existence
• Two major questions:– Why such associations come into being?
and– What do these associations do?
• Four major explanations:1. The market extension thesis;2. The countervailing power thesis;3. The three models explanation thesis; and4. The exogenous factors thesis
6–58
Why have employers’ associations
1. The market extension thesis (J R Commons, 1909)
– Extended market separates employer/employee functions creating mutually opposing interests
– This separation bought about mutually protective and competitive organizations
2. The countervailing power thesis
– Creation of one power group creates another opposing power group
– Employers’ associations came into being because of the creation of trade unions
– Employers’ associations are mainly defensive in their origin
6–59
Why have employers’ associations
3. The three models thesis (Jackson & Sisson, 1975)– Defensive model: employers reasons for
combining are essentially defensive, however defensive reasons do not explain their growth
– Political model: employers create associations to dictate their terms in conditions of employment and to resolve the conflicts
– Economic model: to control the cost of labour. Wages determined by the free market are competitive and run out of control
4. The exogenous factor thesis (McCaffree, 1962) – External factors such as the development of
strong trade unions, government legislation, and other external environment factors force creation of such associations.
6–60
Summary• ‘Management style’ refers to the guiding principles for
the management employment relations• Managements’ IR strategy/style ranges from:
– Control to commitment– Innovation to cost reduction– Individualist to collectivist– Unitarist to collectivist– Union avoidance to union cooperation
• Employer associations, counter to the trade unions, play a key role in influencing the public policy as well as assisting members in industrial relations matters
• Australian/South Pacific managements became more assertive in past two decades
6–61
Challenges
• What are examples of programs used to facilitate employee communications?
• How can employees use various appeals procedures to challenge management actions?
• How can managers use employee assistance programs effectively?
• What are examples of technological innovations that facilitate dissemination of information?
© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 63
Employee Relations Rep
Member of HR who• ensures policies are followed• consults with supervisors• consults with employees
© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 64
Employee Relations Policy
• Communicates management’s thinking about employee-related matters
• Prevents problems in workplace from becoming more serious
© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 65
Communication Process
Sender Receiver(encodes message) (decodes
message)
© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 66
Barriers
(noise)
Feedback
How to Communicate Feedback to Employees
• Focus on specific behaviors• Give feedback at appropriate time / place• Focus negative feedback on behaviors that
can be controlled by employee
© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 67
Downward Communication… allows managers to implement
their decision and
to influence employees lower
in organizational hierarchy
© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 68
Upward Communication…
allows employees at
lower levels
to communicate
ideas and feelings
to higher-level decision makers
© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 69
Information Dissemination
• Employee Handbook
• Written Communications– Memos– Financial Statements– Newsletters– Bulletin Boards
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Information Dissemination (cont’d)…
Audiovisual Communications– Video Presentations– Teleconferencing
Electronic Communications– Voice Mail– Electronic Mail
© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 71
Information Dissemination (cont’d)…
• Meetings• Retreats• Informal Communications
© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 72
Employee Feedback Programs Employee Attitude Surveys
© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 73
To what extent are you satisfied with...
1. pay and bonus
2. chance to get a promotion
3. respect from management
4. morale of my division
5. responsibility to do work
HighlySatisfied Satisfied
HighlyDissatisfied
X
X
X
X
X
– Allocation of overtime – Warnings for safety rule violations– Size of merit pay increases– Specification of job duties– Employer’s reimbursement for claims filed
by employees– Performance evaluations
© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 74
Management Actions Commonly Appealed
Employee Feedback ProgramsAppeals Options
• Open door program• Speak-up program• Grievance panel – non union firms• Union grievance procedure
© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 75
International Comparisons of Employee Satisfaction
Switzerland Germany France Hong Kong
© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 76
82%72%
66% 65%58% 53%
43%31%
Per
cen
t S
atis
fied
wit
h C
om
pan
yas
an
Em
plo
yer
100%
0
A troubled employee may have…1. excessive absenteeism patterns
2. poor judgment and bad decisions
3. unusual on-the-job accidents
4. involvements with the law
5. deteriorating personal appearance
6. problems relating to other people© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 77
Employee Assistance Program (EAP)
© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 78
EAP counseling
Employee refuses help;is terminated if problem has significant impact onwork
Treatment unsuccessful; employee is terminated.
TreatmentProblem solved;
employee keeps working or, if on leave, returns to work
Identify troubled employee:
•Self - id
•Supervisor id
Employee Recognition ProgramSuggestion Systems
• “Suggestion evaluation committee” evaluates suggestions; explains to employees why some suggestions have not been used
• Implement accepted suggestions immediately and give credit to the suggestion’s originator
• Make value of reward proportional to suggestion’s benefit to the company
© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 79
Employee Recognition SystemsEmployee Awards
– Give public credit to people or teams who make outstanding contributions
– Can be initiated by anyone
– Celebrates team or individual success
– Encourages organization members to work toward the organization’s goals
© 2004 by Prentice Hall Terrie Nolinske, Ph.D. 13 - 80
Some employees feel uncomfortable when recognized in a public way. As a manager, how would you work with HR staff to design an employee recognition program for your Department, taking into account recognition for both individuals and teams.
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• Case
fundamentals of
Human Resource Management 4th editionby R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright
CHAPTER 14Collective Bargaining and Labor
Relations
What Do I Need to Know?
1. Define unions and labor relations and their role in organizations.
2. Identify the labor relations goals of management, labor unions, and society.
3. Summarize laws and regulations that affect labor relations.
4. Describe the union organizing process.
What Do I Need to Know? (continued)
5. Explain how management and unions negotiate contracts.
6. Summarize the practice of contract administration.
7. Describe more cooperative approaches to labor-management relations.
Role of Unions
• In the U.S., most workers act as individuals to select jobs that are acceptable to them and to negotiate pay, benefits, flexible hours, and other work conditions.
• At times, workers have believed their needs and interests do not receive enough consideration from management.
• One response by workers is to act collectively by forming and joining labor unions.
Unions and Labor Relations
• Unions – organizations formed for the purpose of representing their members’ interests in dealing with employers.
• Labor relations – field that emphasizes skills managers and union leaders can use to minimize costly forms of conflict (such as strikes) and seek win-win solutions to disagreements.
National and International Unions
• Most Union members belong to a national or international union. These unions may be:– Craft unions: labor unions whose members all
have a particular skill or occupation.– Industrial unions: labor unions whose members
are linked by their work in a particular industry.• Most national unions are affiliated with the
American Federation of Labor and Congress of Industrial Organizations (AFL-CIO).
Impact of Unions on Company Performance
• Harley-Davidson and the International Association of Machinists and Aerospace Workers have cooperated to produce good results.
• In general, though, companies wishing to become more competitive need to continually monitor their labor relations strategies.
Goals of Management
• Management goals are to increase the organization’s profits. Managers tend to prefer options that lower costs and raise output.
• When an employer has recognized a union, management’s goals continue to emphasize restraining costs and improving output.
• Managers prefer to keep their organization’s operations flexible.
Goals of Management (continued)
• In their labor relations, managers prefer to:– Limit increases in wages and benefits, and– Retain as much control as they can over work
rules and schedules.
Goals of Labor Unions
• Labor unions have the goals of obtaining pay and working conditions that satisfy their members and of giving members a voice in decisions that affect them.
• They obtain these goals by gaining power in numbers.
• Unions want to influence the way pay and promotions are determined.
Goals of Labor Unions (continued)
• The survival and security of a union depend on its ability to ensure a regular flow of new members and member dues to support the services it provides.
• Unions place high priority on negotiating two types of contract provisions that are critical to a union’s security and viability:– Checkoff provisions– Union membership or contribution provisions
Goals of Labor Unions (continued)
Checkoff Provision• Contract provision
under which the employer, on behalf of the union, automatically deducts union dues from the employees’ paychecks.
Membership Security• Closed shop• Union shop• Agency shop• Maintenance of
membership
Goals of Society
• The activities of unions and management take place within the context of society.
• Society’s values drive the laws and regulations that affect labor unions.
• Society’s goal for unions is to ensure that workers have a voice in how they are treated by their employers.
Laws Affecting Labor Relations (continued)
• Right-to-work laws: state laws that make union shops, maintenance of membership, and agency shops illegal.
• National Labor Relations Board (NLRB): Federal government agency that enforces the NLRA by conducting and certifying representation elections and investigating unfair labor practices.
Test Your Knowledge
True (A) or False (B)1. The NLRA established unfair labor practices on the part
of the union.2. The NLRB determines which states are Right-to-Work3. In Right-to-Work states, employees do not have to
become members of the union4. In states without Right-to-Work laws unions can refuse
to hire non-union members.5. Protection from union misconduct was established by
the Landrum-Griffin Act.
Signing Authorization Cards
• A document indicating that an employee wants to be represented by a labor organization in collective bargaining
• Is there sufficient interest on the part of employees to justify the unit
• Evidence of interest when at least 30 percent of the employees in a work group sign an authorization card
• Usually need 50% to proceed
Petition for Election
• After authorization cards have been signed, a petition for election is made to the regional NLRB office
• NLRB will ordinarily direct that an election be held within 30 days
Election and Certification
• NLRB monitors the secret-ballot election on the set date
• Board will issue a certification of the results to the participants
• Majority of the employees vote for union. NLRB will certify.
• Process does not require either party to make concessions; it only compels them to bargain in good faith
Union Strategies
• Organizers call or visit employees at home to talk about issues like pay and job security.
• Offer workers associate union membership.• Conduct corporate campaigns.• Negotiate employer neutrality and card-check
provisions into a contract.
Union Decertification
• Taft-Hartley Act made it possible for employees to decertify a union
• Essentially the reverse of the process that employees must follow to be recognized as an official bargaining unit
• Employees have used decertification petitions with increasing frequency and success
Decertification Procedure
• At least 30 percent must petition for election• Petition submitted 60-90 days prior to
expiration of current contract• Schedule decertification election• If majority votes against union, employees will
be union free
Collective Bargaining
• In collective bargaining a union negotiates on behalf of its members with management representatives to arrive at a contract defining:– Recognition– Management Rights– Union Security– Compensation and Benefits– Grievance Procedure– Employee Security
Test Your Knowledge: Which of the Following is an Unfair Labor Practice (ULP)?
1. Enforcing disciplinary policies only to those who have expressed interest in a union
2. Showing employees articles about negative aspects of unions that occurred elsewhere
3. Email employees asking them to respond with how they plan to vote in the union election
4. Tell employees the disadvantages of having a union5. Enforcing disciplinary policies when deserved to a pro-union
employee6. Promise employees an additional week of vacation if they
vote against the union
When Bargaining Breaks Down
Strikes• Strike: a collective
decision by union members not to work until certain demands or conditions are met.
Alternatives to Strikes• Mediation• Fact Finder• Arbitration
Contract Administration
Contract Administration
• Includes carrying out the terms of the agreement and resolving conflicts over interpretation or violation of the agreement.
Grievance Procedure• The process for
resolving union-management conflicts over interpretation or violation of a collective bargaining agreement.
Test Your Knowledge
True (A) or False (B)1.Mediation requires each party to abide by the
mediator’s decision.2.Clearly written contracts require less contract
administration time due to fewer disagreements over interpretation.
3. Integrative bargaining involves a win-lose approach because the issues are considered a fixed pie.
4.A union steward represents the issues concerning union employees and is elected by them.
Summary
• A union is an organization formed for the purpose of representing its members in resolving conflicts with employers.
• Labor relations is the management specialty emphasizing skills that managers and union leaders can use to minimize costly forms of conflict and to seek win-win solutions to disagreements.
• Management goals are to increase the organization’s profits. Managers generally expect that unions will make these goals harder to achieve.
Summary (continued)
• Labor unions have the goal of obtaining pay and working conditions that satisfy their members. They obtain these results by gaining power in numbers.
• Society’s values have included the hope that the existence of unions will replace conflict or violence between workers and employers with fruitful negotiation.
• In contrast to the traditional view that labor and management are adversaries, some organizations and unions work more cooperatively.