Labor Relations Chapter 6

Labor Relations Chapter 6 - Labor Relations Chapter 6...

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Labor Relations Chapter 6 Negotiating Labor Agreement Collective bargaining: definition and Structure - Collective bargaining – activity where union and management resolve conflicts of interest by exchanging commitments in a manner intended to sustain and possibly enrich their relationship. o Form of INTERDEPENDENT SOCIAL INTERACTION o Attainment of desired outcomes whereby one party dependent on behavior of another party - Interest dispute – dispute that arises between union and management over terms and conditions of employment o Objective of collective bargaining is to resolve interest disputes by reaching agreement acceptable to both parties. - Attitudes of management and union influence relationship - Understanding that both parties will eventually return to bargaining table affects their strategic choices regarding acceptable tactics and outcomes in any current negotiation. - Defining success in collective bargaining entails subjective and objective criteria o Objectively measuring economic value or cost of settlement is way to measure success o Comparing settlement outcomes to industry is another way - Union leaders seeking re-election consider interests of key groups in bargaining unit and if they are satisfied - Another way to measure success is to see if bargaining settlement contributes to positive relationship - Successful bargaining settlement reinforces labor management relationship – whereby parties trust each other to be honest and straightforward in their position. Bargaining Structure - Bargaining structure has 2 general dimensions: 1. Employee groupings – affect collective bargaining outcomes 2. Employees and employers subject to provisions of labor agreement - Every organization has informal work groups – who have unique preference – places pressure on union to achieve their preferences
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- Pattern Bargaining – a situation where union or management negotiators informally attempt to extend a negotiated settlement from one formal structure to another. – may occur among similar companies in same industry o Pattern bargaining might also occur if union or management attempt to apply a settlement for one segment of industry to another company that produces related products - Management and union negotiators might prefer to use pattern bargaining to take wages out of competition among companies operating in same product/service markets. o Beneficial for management because it reduces concern that competitors have labor cost advantage. o Beneficial to union because it builds perception among similar types of workers that they are receiving equal and fair treatment The Bargaining Unit - Second dimension of bargaining structure – bargaining unit – employees and employers bound by negotiated labor agreement - Any appropriate bargaining unit (ABU) determined by NLRB through election is a unit appropriate for negotiating purposes o Once union has been certified as ABU -2 or more ABUs can be combined together for purpose of creating a single labor agreement IF acceptable to union and employer
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This note was uploaded on 06/29/2011 for the course MGT 3000 taught by Professor Murrmann during the Spring '11 term at Virginia Tech.

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Labor Relations Chapter 6 - Labor Relations Chapter 6...

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