Labor Relations 2Labor Relations 2

The Labor Relations The Labor Relations ProcessProcess

11. . Union organizing Demonstrating interest NLRB Election

2. Collective bargaining2. Collective bargaining ““Good faith” bargainingGood faith” bargaining

3. Contract administration3. Contract administration Hiring, training, and job designHiring, training, and job design Grievance proceduresGrievance procedures

Impact of Unionization on Impact of Unionization on ManagersManagers

Control of Labor CostsControl of Labor Costs

Loss of Supervisory AuthorityLoss of Supervisory Authority

Labor Relations StrategyLabor Relations Strategy Labor Relations Strategy Overall plan for

dealing with labor unions

Ranges from open conflict to labor-management cooperation

The Bargaining ProcessThe Bargaining ProcessCollective Bargaining ProcessCollective Bargaining Process

The process of negotiating a labor agreement, The process of negotiating a labor agreement, including the use of economic pressures by both including the use of economic pressures by both parties.parties.

Bargaining ZoneBargaining Zone Area within which the union and the employer are Area within which the union and the employer are

willing to concede when bargaining.willing to concede when bargaining.Interest-based BargainingInterest-based Bargaining

Problem-solving bargaining based on a win-win Problem-solving bargaining based on a win-win philosophy and the development of a positive long-philosophy and the development of a positive long-term relationship.term relationship.

Hold meetings at reasonable times and Hold meetings at reasonable times and places to discuss employment conditionsplaces to discuss employment conditions

Proposals and counterproposals submitted by Proposals and counterproposals submitted by each party must be realistic and reasonableeach party must be realistic and reasonable

Good Faith BargainingGood Faith Bargaining

Try to understand others’ needs and Try to understand others’ needs and objectivesobjectives

Create a free flow of informationCreate a free flow of informationEmphasize commonalitiesEmphasize commonalitiesMinimize differencesMinimize differencesSearch for solutions that meet all parties’ Search for solutions that meet all parties’

goals and objectivesgoals and objectivesDevelop flexible responses to other proposalsDevelop flexible responses to other proposals

Guidelines for Interest based Guidelines for Interest based BargainingBargaining

Good Faith BargainingGood Faith Bargaining

MandatorySubjects

PermissiveSubjects

IllegalSubjects

Bargaining Subject Categories

Bargaining TopicsBargaining Topics Mandatory

Wages, hours, and employment conditions

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

Illegal Featherbedding Discriminatory practices, etc.

Management and Union Management and Union Power in Collective Power in Collective

BargainingBargainingBargaining PowerBargaining Power

The power of labor and management to The power of labor and management to achieve their goals through economic, social, achieve their goals through economic, social, or political influence.or political influence.

PicketingStriking

Union Power in Collective Union Power in Collective BargainingBargaining

Boycotting

BoycottOur

EmployerThis UnionOn Strike

UnfairOn

StrikeDon’t

Buy Here

Employer Power in Employer Power in Collective BargainingCollective Bargaining

Management Bargaining PowerManagement Bargaining Power Hiring permanent replacement workersHiring permanent replacement workers Continuing operations staffed by managementContinuing operations staffed by management Locking out employeesLocking out employees

Items in a Labor Agreement

Union Security AgreementsUnion Security Agreements

Dues CheckoffDues Checkoff Gives the employer the responsibility of Gives the employer the responsibility of

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

““Shop” AgreementsShop” Agreements Require employees to join or support the union.Require employees to join or support the union. Union shopUnion shop requires employee membership. requires employee membership. Agency shopAgency shop allows voluntary membership; allows voluntary membership;

employee must pay union dues and fees.employee must pay union dues and fees.

The Labor Relations The Labor Relations ProcessProcess

11. . Union organizing Demonstrating interest NLRB Election

2. 2. Collective bargaining “Good faith” bargaining

3. Contract administration3. Contract administration Hiring, training, and job designHiring, training, and job design Grievance proceduresGrievance procedures

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

Contract AdministrationContract Administration

Two Types of Grievances Contract interpretation Employee discipline

Five-Step Grievance ProcedureFive-Step Grievance Procedure

Grievance ArbitrationGrievance Arbitration

Rights ArbitrationRights Arbitration Arbitration over interpretation of the meaning Arbitration over interpretation of the meaning

of contract terms or employee work of contract terms or employee work grievances.grievances.

Fair Representation DoctrineFair Representation Doctrine The doctrine under which unions have a legal The doctrine under which unions have a legal

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

The Arbitration HearingThe Arbitration HearingThe arbitrator declares the hearing open and The arbitrator declares the hearing open and

obtains the submission agreement.obtains the submission agreement.Parties present opening statements.Parties present opening statements.Each side presents its case using witnesses and Each side presents its case using witnesses and

evidence; witnesses can be cross examined.evidence; witnesses can be cross examined.Parties make closing statements.Parties make closing statements.Arbitrator closes hearing and designates date Arbitrator closes hearing and designates date

and time for rendering the award.and time for rendering the award.

The Arbitration AwardThe Arbitration AwardFactors arbitrators use to decide cases:Factors arbitrators use to decide cases:

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

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

Testimony and evidence offered during the hearing.Testimony and evidence offered during the hearing. Arbitration criteria or standards (similar to standards Arbitration criteria or standards (similar to standards

of common law) against which cases are judged.of common law) against which cases are judged.

Areas for Union OrganizingAreas for Union OrganizingRetail workersRetail workers

Wal-Mart (Wal-Mart (3,300 stores and one million workers)3,300 stores and one million workers)Health care workersHealth care workers

HMO doctors and nursesHMO doctors and nursesHigh-tech workersHigh-tech workers

Yahoo and AmazonYahoo and AmazonAuto industryAuto industry

U.S.-based foreign makers U.S.-based foreign makers Supplier companiesSupplier companies

Government and EducationGovernment and Education

Adversarial Nature of Labor-Management RelationsAdversarial Nature of Labor-Management Relations Shrinking Union MembershipShrinking Union Membership

Labor Relations in the U.S.Labor Relations in the U.S.

Union ChallengesUnion Challenges

Anti-union effortsAnti-union effortsOver the last four years, the National Labor Relations Board Over the last four years, the National Labor Relations Board

has filed more than 40 complaints against Wal-Mart, has filed more than 40 complaints against Wal-Mart, accusing managers in more than two dozen stores of:accusing managers in more than two dozen stores of:

including improperly firing union supportersincluding improperly firing union supporters intimidating workers intimidating workers threatening to deny bonuses if workers unionized.threatening to deny bonuses if workers unionized.

DecertificationDecertificationJuly 2002 LOS ANGELES - Local Boeing Co. engineers have July 2002 LOS ANGELES - Local Boeing Co. engineers have

voted to throw out the union that has represented them for voted to throw out the union that has represented them for 56 years in one of the nation's largest union decertifications 56 years in one of the nation's largest union decertifications in history, according to the National Labor Relations Board.in history, according to the National Labor Relations Board.

Union ChallengesUnion Challenges

Wal-Mart Stores Inc. said Wednesday it will close a Wal-Mart Stores Inc. said Wednesday it will close a Canadian store whose workers are on the verge of Canadian store whose workers are on the verge of becoming the first ever to win a union contract becoming the first ever to win a union contract from the world's biggest retailer.from the world's biggest retailer.

Wal-Mart said it was shuttering the store in Wal-Mart said it was shuttering the store in Jonquiere, Quebec, in response to unreasonable Jonquiere, Quebec, in response to unreasonable demands from union negotiators, that would make demands from union negotiators, that would make it impossible for the store to sustain its business. it impossible for the store to sustain its business.

AP 2.9.05AP 2.9.05

Union ChallengesUnion Challenges Making the case for collective bargaining Making the case for collective bargaining

Oct 2001 Nissan North America's plant in Smyrna, Tenn., Oct 2001 Nissan North America's plant in Smyrna, Tenn., voted resoundingly against joining the UAW. voted resoundingly against joining the UAW.

Honda of America Manufacturing Inc.'s 10,000 workers in Honda of America Manufacturing Inc.'s 10,000 workers in Ohio have also resisted unionization.Ohio have also resisted unionization.

The UAW holds up its relationships with the Big 3 as The UAW holds up its relationships with the Big 3 as evidence of a better way, but transplant workers instead evidence of a better way, but transplant workers instead see evidence of recurring layoffs and adversarial working see evidence of recurring layoffs and adversarial working relations. relations.

Workers see profitability, generous benefits, company Workers see profitability, generous benefits, company expansions and advancement opportunities. expansions and advancement opportunities.

Unions—thrive when employees are Unions—thrive when employees are dissatisfied and lack influence with mgmtdissatisfied and lack influence with mgmt

Managers should be aware of labor relations Managers should be aware of labor relations lawslaws

Union-management relationship historically Union-management relationship historically adversarialadversarial

Strategy: acceptance vs. avoidanceStrategy: acceptance vs. avoidanceUnions impact almost every area of HRMUnions impact almost every area of HRM

Summary and ConclusionsSummary and Conclusions