Dynamis of Labor Relations - Agenda Identify and explain...

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Unformatted text preview: The Dynamics of Labor Relations Agenda: Identify and explain the principal federal laws that provide the framework for labor relations. Explain the reasons employees join unions. Describe the process by which unions organize employees and gain recognition as their bargaining agent. Discuss the bargaining process and the bargaining goals and strategies of a union and an employer. 1 Agenda (cont’d) Differentiate the forms of bargaining power that a union and an employer may utilize to enforce their bargaining demands. Describe a typical union grievance procedure and explain the basis for arbitration awards. Discuss some of the contemporary challenges to labor organizations. 2 1 Test Your Labor Relations Know-How 1. An auto mechanic applied for a job with an automotive dealership. He was denied employment because of his union membership. Was the employer’s action lawful? ______ Yes ______ No 2. During a labor organizing drive, supervisors questioned individual employees about their union beliefs. Was this questioning permissible? ______ Yes ______ No 3. When members of a union began wearing union buttons at work, management ordered the buttons to be removed. Was management within its rights? ______ Yes ______ No 4. While an organizing drive was under way, an employer agreed—as a social gesture—to furnish refreshments at a holiday party. Was the employer acting within the law? ______ Yes ______ No 5. A company distributed to other antiunion employers in the area a list of job applicants known to be union supporters. Was the distribution unlawful? ______ Yes ______ No 6. During a union organizing drive, the owner of Servo Pipe promised her employees a wage increase if they would vote against the union. Can the owner legally make this promise to her employees? ______ Yes ______ No 3 1 Test Your Labor Relations Know-How (cont’d) 7. Employees have the right to file unfair labor practice charges against their employer even when the organization is nonunion. ______ Yes ______ No 8. The union wishes to arbitrate a member’s grievance, which management has demonstrated is completely groundless. Must management arbitrate the grievance? ______ Yes ______ No 9. John Green, a maintenance engineer, has a poor work record. Management wishes to terminate his employment. However, Green is a union steward, and he is highly critical of the company. Can management legally discharge this employee? ______ Yes ______ No 10. During an organizing drive, an office manager expressed strong antiunion beliefs and called union officials “racketeers,” “big stinkers,” and a “bunch of radicals.” He told employees who joined the union that they “ought to have their heads examined.” Were the manager’s comments legal? ______ Yes ______ No 4 Government Regulation of Labor Relations • Railway Labor Act (RLA) of 1926 Purpose of the act is to avoid service interruptions resulting from disputes between railroads and their operating unions. National Mediation Board National Railway Adjustment Board • Norris­LaGuardia Act of 1932 Restricts the ability of employers to obtain an injunction against unions for their lawful activities. 5 Government Regulation of Labor Relations • Wagner Act (National Labor Relations Act) of 1935 Protects employee rights to organize and bargain collectively through representatives of their choice. Created the National Labor Relations Board (NLRB) to govern labor relations in the United States. Holds secret ballot union representation elections. Prevents and remedies unfair labor practices. 6 Wagner (NLRA) Act • Section 7 of the Act guarantees employee rights: To self­organization, to form, join, or assist labor organizations, to bargain collectively through freely chosen representatives. To engage in concerted activities, for the purpose of collective bargaining or other mutual aid or protection. To refrain from any or all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment. 7 Unfair Labor Practices (ULPs) • Section 8 of the Wagner Act outlawed employer practices that deny employees their rights and benefits: Interference with Section 7 rights Domination of a union (company union) Discrimination against union members Arbitrary discharge of union members Refusal to bargain with the union 8 Amendments to the Wagner Act • Taft­Hartley Act (The Labor­Management Relations Act) of 1947 Balances rights and duties of labor and management in collective bargaining by defining unfair union practices. Created the Federal Mediation and Conciliation Service (FMCS) to help resolve negotiating disputes. • Landrum­Griffin Act (Labor­Management Reporting and Disclosure Act) of 1959 Safeguards union member rights and prevents racketeering and other unscrupulous practices by employers and union officers. 9 Unfair Union Practices (Taft-Hartley Act) • Unions are prohibited from: Interfering with Section 7 rights of employees Interfering with representation elections Influencing employers to discriminate with regard to union membership Refusal to bargain collectively with employer Interference with certified employee representative’s relationship with employer Assessment of excessive initiation fees and dues on bargaining unit members “Featherbedding” 10 Bill of Rights of Union Members (Landrum-Griffin Act) • Union members have the right to: Nominate candidates for union office Vote in union elections or referendums Attend union meetings Participate in union meetings and vote on union business Examine union accounts and records Bring suit against union officers as necessary to protect union funds 11 The Labor Relations Process 12 Why Employees Unionize • As a result of their economic needs (wages and benefits) • Dissatisfaction with managerial practices • To fulfill social and status needs. • Unionism is viewed as a way to achieve results they cannot achieve acting individually • To comply with union­shop provisions of the labor agreement in effect where they work 13 Organizing Campaigns Steps in the Steps in the Steps Steps Organizing Organizing Organizing Organizing Process Process Emplloyee/UnionConttact Emp oyee/Union Con act IInitial Orrganizational nitial O ganizational Meetting Mee ing ForrmationoffIIn-House Fo mation o n-House Commiittee Comm ttee EllectionPettitionand Eection Pe ition and VottingPrreparation Vo ing P eparation ConttractNegottiations Con ract Nego iations 14 2 United Food and Commercial Workers International Union Authorization Card 15 Aggressive Organizing Tactics • Political Involvement • Neutrality Agreements • Organizer Training • Corporate Campaigns • Information Technology Union NOW!! 16 Employer Tactics Opposing Unionization • Stressing favorable employer­employee relationship experienced without a union. • Emphasize current advantages in wages, benefits, or working conditions the employees may enjoy • Emphasize unfavorable aspects of unionism: strikes, union dues, abuses of legal rights • Use statistics to show that unions commit large numbers of unfair labor practices. • Initiate legal action when union members and leaders engage in unfair labor practices 17 3 Employer “Don’ts” during Union Organizing Campaigns Union organizing drives are emotionally charged events. Furthermore, labor law, NLRB rulings, and court decisions greatly affect the behavior and actions of management and union representatives. During the drive, managers and supervisors should avoid the following: • Attending union meetings, spying on employee-union gatherings, or questioning employees about the content of union meetings • Questioning present or current employees about their union sentiments, particularly about how they might vote in a union election • Threatening or terminating employees for their union support or beliefs • Changing the working conditions of employees because they actively work for the union or simply support its ideals • Supplying the names, addresses, and phone numbers of employees to union representatives or other employees sympathetic to the union • Promising employees improvements in working conditions (wage increases, benefit improvements, and so on) if they vote against the union • Accepting or reviewing union authorization cards or prounion petitions, because employees’ names are listed on these documents 18 How Employees Become Unionized • Bargaining Unit A group of two or more employees who share common employment interests and conditions and may reasonably be grouped together for purposes of collective bargaining. • Exclusive Representation The legal right and responsibility of the union to represent all bargaining unit members equally, regardless of whether employees join the union or not. 19 4 NLRB Election Poster 20 NLRB Representation Election • Representation Election Process Preelection Hearing: NLRB certifies that 30 percent of eligible employees in NLRB bargaining unit have signed authorization cards and sets date for election. date Election: NLRB conducts secret ballot election. If union wins the NLRB majority of votes in the election, NLRB certifies the union as the exclusive bargaining unit representative with which the employer must collectively bargain. employer Certification on Card Check: If least 50 percent of employees within the bargaining unit If sign authorization cards, then the union may request recognition by the employer. recognition 21 Impact of Unionization on Managers • Control of Labor Costs Wages and benefits are higher in union organizations compared to similar nonunion organizations. • Challenges to Management Prerogatives Unions can have a significant effect on management decisions about employees. • Loss of Supervisory Authority Unionization restricts the freedom of management to formulate HR policy unilaterally and can challenge the authority of supervisors. 22 Structures of Labor Unions • Craft Unions Represent skilled craft workers • Industrial Unions Represent all workers—skilled, semiskilled, unskilled —employed along industry lines • Employee Associations Represent various groups of professional and white­ collar employees in labor­management relations. 23 Structure of the AFL-CIO GENERAL BOARD GENERAL BOARD EExecutivemembers and xecutive Executive members and Executive pprincipalofficer of each rincipal officer of each international union affiliate international union affiliate international international Meets upon call of federation Meets upon call of federation Meets Meets president of executive council ppresident of executive council resident president Standing Standing Standing Standing committees ccommittees ommittees committees Staff Staff Staff Staff departments departments departments departments LLocalunions affiliated ocal Local unions affiliated Local directly with AFL-CIO directly with AFL-CIO directly directly Affiliated national and Affiliated national and Affiliated Affiliated international unions international unions international international Affiliated state bodies Affiliated state bodies LLocalunions of national ocal Local unions of national Local and international unions aand international unions nd and Local bodies Local bodies 14–24 Functions of the AFL-CIO • The “House of Labor” Disseminates labor policy developed by leaders of affiliated unions. Coordinates organizing activities among affiliated unions. Provides research and other assistance through its various departments. Lobbies before legislative bodies on labor subjects Publicizes the concerns and benefits of unionization Resolves disputes between different unions 14–25 Typical Organization of a Local Union Local Union Meeting (Normally Monthly) Local Union Meeting (Normally Monthly) Business Business Representative Representative President President Secretary/Treasurer Secretary/Treasurer Vice-Presidents Vice-Presidents Sergeant at Arms Sergeant at Arms Various Committee Chairpersons Various Committee Chairpersons Training and Training and Education Education Grievance Grievance Committee: Committee: Chief Steward and Chief Steward and Shop Stewards Shop Stewards Collective Collective Bargaining Bargaining Social Social Local Union Members Local Union Members 14–26 Structure and Functions of Local Unions • Local Officers Elected officials who lead the union and serve on the bargaining committee for a new contract. • Union Steward An employee, as a nonpaid union official, represents the interests of members in their relations with management. • Business Unionism The term applied to the goals of U.S. labor organizations, which collectively bargain wages, hours, job security, and working conditions. 14–27 Labor Relations in the Public Sector • Challenges to Public Sector Unionization: No national­level public sector labor relations laws Public employees’ wages and working conditions set by law Collective bargaining for federal employees governed by Collective executive orders and the Civil Service Reform Act of 1978 executive Various public civil service systems address public employee Various public complaints or grievances complaints Substitution of compulsory binding arbitration for the guaranteed right to strike 14–28 Types of Arbitration • Compulsory Binding Arbitration A process for employees such as police officers, firefighters, and others in jobs where strikes cannot be tolerated to reach agreement. • Final­offer Arbitration The arbitrator must select one or the other of the final offers submitted by the disputing parties with the award is likely to go to the party whose final bargaining offer has moved the closest toward a reasonable settlement. 14–29 The Collective Bargaining Process 14–30 The Bargaining Process • Collective Bargaining Process The process of negotiating a labor agreement, including the use of economic pressures by both parties. • Bargaining Zone Area within which the union and the employer are willing to concede when bargaining. • Interest­based Bargaining Problem­solving bargaining based on a win­win philosophy and the development of a positive long­ term relationship. 14–31 The Bargaining Process (cont’d) • Good Faith Bargaining Requirements Meetings to be held at reasonable times and places to discuss employment conditions. Proposals and counterproposals submitted by each party must be realistic and reasonable. Both parties must sign a written document of the agreement reached through negotiations • Interest­based Bargaining Problem­solving bargaining based on a win­win philosophy and the development of a positive long­ term relationship. 14–32 Good Faith Bargaining Bargaining Subject Categories Mandatory Subjects Permissive Subjects Illegal Subjects 14–33 The Bargaining Zone and Negotiation Influences 14–34 5 Items in a Labor Agreement 14–35 Management and Union Power in Collective Management Bargaining Bargaining • Bargaining Power The power of labor and management to achieve their goals through economic, social, or political influence. • Union Bargaining Power Strikes, pickets, and boycotts • Management Bargaining Power Hiring permanent replacement workers Continuing operations staffed by management Locking out employees 14–36 Union Power in Collective Bargaining On ke S t ri Unfair Boycott Our Employer Don’t re uy He B This Union On Strike Striking Boycotting Picketing 14–37 Employer Power in Collective Bargaining Management methods for applying Management methods for applying economic pressure during bargaining: economic pressure during bargaining: Outsourcing normal work Outsourcing normal work Locking out workers Locking out workers Hiring replacement workers Hiring replacement workers Demanding concessions Demanding concessions 14–38 Union Security Agreements • Dues Checkoff Gives the employer the responsibility of withholding union dues from the paychecks of union members who agree to such a deduction. • “Shop” Agreements Require employees to join or support the union. Union shop requires employee membership. Agency shop allows voluntary membership; employee must pay union dues and fees. 14–39 Five-Step Grievance Procedure 14–40 Grievance Arbitration • Rights Arbitration Arbitration over interpretation of the meaning of contract terms or employee work grievances. • Fair Representation Doctrine The doctrine under which unions have a legal obligation to provide assistance to both members and nonmembers in labor relations matters. 14–41 Grievance (Rights) Arbitration Issues in deciding to use arbitration Issues in deciding to use arbitration as a method for dispute resolution as a method for dispute resolution Use of binding arbitration Use of binding arbitration Rights arbitration and EEO conflicts Rights arbitration and EEO conflicts Fair Representation Doctrine Fair Representation Doctrine Methods for choosing an arbitrator Methods for choosing an arbitrator Submission agreement and awards Submission agreement and awards 14–42 The Arbitration Hearing • The arbitrator declares the hearing open and obtains the submission agreement. • Parties present opening statements. • Each side presents its case using witnesses and evidence; witnesses can be cross examined. • Parties make closing statements. • Arbitrator closes hearing and designates date and time for rendering the award. 14–43 The Arbitration Award • Factors arbitrators use to decide cases: The wording of the labor agreement (or employment policy in nonunion organizations). The submission agreement (statement of problem to be solved) as presented to the arbitrator. Testimony and evidence offered during the hearing. Arbitration criteria or standards (similar to standards of common law) against which cases are judged. 14–44 Contemporary Challenges Contemporary to Labor Organizations to Issues confronting unions Issues confronting unions Foreign competition and Foreign competition and Foreign Foreign technological change ttechnological change echnological technological The long-term decrease in The long-term decrease in The The union membership union membership union union Employers’ focus on Employers’ focus on Employers’ Employers’ maintaining nonunion status maintaining nonunion status maintaining maintaining 14–45 arbitrator fair representation doctrine authorization card grievance procedure bargaining power industrial unions bargaining unit interest-based bargaining bargaining zone labor relations process business unionism rights arbitration collective bargaining process unfair labor practices (ULPs) craft unions union shop employee associations union steward exclusive representation 14–46 ...
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