HRM 462 - Exam 2 (Ch. 5-9)

Methods for adjusting wages

COLA provisions Deferring wage increases Lump-sum pay adjustments

Good faith bargaining

o The legal duty to bargain in good faith [LMRA requires both to negotiate in good faith Each party must demonstrate a sincere and honest intent to reach a labor agreement and be reasonable in their bargaining positions, tactics, and activities. Good faith bargain doesn't mean that you come to an agreement Ex: the duty to bargain in good faith does not require a party to reach a settlement, agree to any specific proposal, or make a particular concession to the other party o Sources of Violations of Good Faith Bargaining: The nature of the bargaining issues Specific bargaining (per se) violations Totality of conduct Successor employer bargaining obligations

Labor intensiveness/industries

o Wage Comparability: Wage rates are equal or related among comparable bargaining units. o Degree of Labor Intensiveness: Wages are less important and easier to bargain for when they are a low percentage of total costs.

Eligibility to vote

Employment in a bargaining unit job Employment during the eligibility period [which is usually the payroll period immediately preceding the date a consent agreement is signed or a directed election order is issued] Employment on the date of the election Employees who are on sick leave, vacation, temporary layoff, or temporary leave such as military duty, may vote in the election If on strike, striking employee must be within 12 months of the beginning of an economic strike [this policy ensures that management doesn't provoke a strike and hire replacements who could vote out the union]

Company advantages in union organizing

Has full access to its employees. Can offer possibility of improvement without additional cost of unionization for employees. Can benefit from employees' fear of change. Lengthy time between successful organization and issuance of the bargaining order. o The Changed Workforce (this was a union's challenge of organizing the diverse workforce) Temporary (contingent) employees Permanent part-time employees Independent contractors Leased workers Minorities (racial and ethnic) Higher-skilled workers o Employer Effects on Elections Influencing the composition of the bargaining unit Setting the date for the election o Illegal Campaign Tactics (Unfair Labor Practices) Making captive audience speeches after hours Illegally discharging union supporters and activists

Lump-sum pay adjustments (methods for adjusting wages)

Lump-sum does not become part of regular compensation. The popularity of the lump-sum payments waxes and wanes with economic conditions: when employers have difficulty recruiting and retaining specific types of skilled workers, then they are more willing to add to the base pay rate

Decertification

When a majority of the bargaining unit vote to remove the union's certification as the unit's exclusive representative. The support of 30% of the unit is required to petition the NLRB for a decertification election. o Reasons for Decertification: Fair treatment of employees by employers Poor job by unions of providing services to members Inability to gain an initial labor contract Hiring of replacement workers Those that have international union will have greater resources Where employees face income and employment opportunities that are limited to part-time and low-wage employment, support for union retention is significantly lower o Any employee, group of employees, or employee representative may file a petition for a decertification election 12 months after the union has been certified or upon expiration of the labor agreement. This petition must be supported by at least 30% of the bargaining unit employees o Employees, like employers, must be aware of possible consequences of their activities related to attempting to decertify the union

Deferring wage increases (methods for adjusting wages)

in multiyear labor contracts Back-loaded: larger wage increases occur later in the contract period. Front-loaded: smaller wage increases occur later in the contract period. Even-loaded: wage increases are equal in all years of the contract.

Reasons for wage differentials

o 1. The degree of competition or monopoly in the product market If a firm has a monopoly (few substitutes) then increased labor cost can easily be passed on to the consumer by raising the product price (in some cases, employer may accept higher wages in negotiations because higher labor costs do not necessarily adversely impact competitiveness Under highly competitive market conditions, unionized employers must bargain harder to ensure that labor cost increases do not force higher product prices that might make the firm less price competitive In industries where employers face fewer competitive threats, wages tend to be proportionately higher o 2. The value added by workers in a particular industry Ex: value added by labor in sawmills, cotton weaving, clothing manufacturing, and the mobile home industry is significantly lower than corresponding figures in the steel, petrochemical, and paper industries It is difficult to accurately measure the valued added by an individual employee because some work in "teams" or only perform one tasks required for the final product o 3. The percentage of total product or service cost represented by labor costs Degree of labor intensiveness - a measure of the proportion of total operating costs comprised of labor costs, must also be considered in determining employee wage rates

Fact-finding

o A semi-judicial process used to gather facts and issue a public report containing conclusions and recommended terms of settlement. o Has no legal authority to impose a final and binding settlement o They display the facts publicly in hopes that the public will find the fact-finder's conclusions and recommendations to have merit and bring pressure on the parties in dispute to settle their differences o This is used in major disputes under the LMRA and the Railway Labor Act o This impasse resolution lacks the ability to ensure a final end to the labor dispute, this process does not have a good record of resolving major disputes

Contract bar doctrine

o A valid multi-year contract protects the union by barring representation elections for up to three years o The NLRB rule, specifies that a valid, signed agreement for a fixed period of three years or less will bar any representation election for the life of the agreement o The contract bar doctrine can extend the 12-month statutory limitation on electins to 3 years

Union effect on pensions

o Age Discrimination in Employment Act (ADEA) Prohibits mandatory retirement age requirements. o Pension Plans Defined benefit plan • Plan pays retired employees a specific amount each month. • The employer must invest sufficient funds such that it can pay its obligations to the retired employees. Defined contribution plan • An employer contributes a specific amount each month to the retirement account of each employee. • Payout is based on the financial performance of the invested contributions. o Union Effect on Pension Plans: Increased pension coverage and larger benefits Benefits skewed toward senior employees Pensions equalized among bargaining unit employees Higher increases in benefits after retirement Earlier employee retirement age o 401(k) Savings Plans An employer may match the contributions of employees to their tax-deferred retirement accounts Where employees set aside pre-tax dollars from their paycheck for retirement; their savings are often matched by the employer

Interest arbitration

o Allowing a third party (arbitrator) to hear the bargaining positions of the parties and make a final and binding decision on what should be included in the agreement. o Interest Arbitration Procedures: Conventional Interest Arbitration (CA) • The arbitrator considers each party's settlement terms, and accepts one party's or fashions a compromise settlement. • Affording the arbitrator the greatest degree of flexibility to determine an appropriate settlement outcome • The arbitrator can select either party's proposal or some compromise settlement terms between (or even beyond) those proposed by the parties themselves Final-Offer Total Package (FOTP) • The parties present their settlement terms on all issues and the arbitrator must choose one package to be implemented in its entirety without alteration. • Final-Offer Issue-by-Issue (FOIBI) o Each issue is considered by the arbitrator rather than the whole package. Mediation-Arbitration (Med-Arb) • A mediator serves to facilitate the bargaining process and is also empowered to act as an arbitrator to settle the dispute.

Determining Bargaining units

o An appropriate bargaining unit is a grouping of jobs or positions in which 2 or more employees share common employment interests and conditions (community of interests) and which may reasonably be grouped together for collective bargaining purposes. o Is the "community of interest" o Ex of bargaining unit in Health Industry: Registered nurses Physicians Other professional employees Technical employees Skilled maintenance employees Business office clericals Guards Other nonprofessional employees

Whipsaw bargaining

o An employer's use of the terms of an agreement with one bargaining unit as leverage in negotiating with other bargaining units. o Def: involves a negotiating team attempting to extract large, similar, concessions from multiple opponents; this is done by sharing information across negotiating teams on the same side as multiple negotiations proceed.

Organizing professional employees

o Arguments: Against the organization of professionals: • Unionization represents a rejection of professional values. • Union entails the rejection of key professional values, such as collegial participation in organizational decision making, professional independence, and a merit-based performance and reward system For the organization of professionals: • Unionization helps achieve and maintain professional values. • The most effective method of achieving and maintaining these same professional values Ex: nurses

Factors affecting bargaining power

o Bargaining power is an important concept that can affect the process and outcomes of negotiations, particularly when the parties adopt a distributive bargaining approach o It has 2 major assumptions: 1. Union and Management negotiators cost issues in a similar manner and are rational individuals 2. If it costs more for party A to disagree than to agree with party B, then party A will agree to party B's proposal o Prevailing economic conditions Unemployment rate Labor supply Sales volumes o Bargaining parties Goodwill - pertains to internal relationships Public image - the union can publicize poor working or safety conditions at the plant, which could harm employee recruitment efforts or customer relations o Governmental interventions

Gissel Bargaining Order

o Bases for Issuing Gissel Bargaining Orders: A fair, impartial election is not possible due to the employer's ULPs. Authorization card wording is clear and unambiguous. Employees' signatures were voluntarily obtained. A majority of bargaining unit employees signed authorization cards.

Bargaining range

o Both parties usually enter negotiations with a range of acceptable positions that give them some room for maneuvering o Resistance point is called a reservation price or limit Ex: the union is willing to accept any raise larger than 50 cents per hour so the 50 cents is the resistance point o Target point - is the realistic goal Ex: the union believes that 65 cents per hour is a realistic goal to work towards So the Union's bargaining range is between 50 cents and 95 cents [the 95 cents was the initial offer] o If an omniscient 3rd party could graph management's bargaining range next to the union's bargaining range, you could see that they overlap between their resistance points; this area of overlap is called the contract zone (sometimes called the settlement range or the zone of potential agreement) o Union's upper limit is usually shaped by 2 factors: Desired employment levels The ability to promote and sustain a strike

COLA provisions (methods for adjusting wages)

o COLA provisions—scheduled wage increases based on the degree of change in the chosen index 1. Selection of an index (generally, CPI-W) and base point • Most labor agreements use the all-cities CPI-W (consumer price index for urban wage earners and clerical workers) 2. Frequency and timing of COLAs • Quarterly adjustments are more common in manufacturing industries, whereas annual adjustments are most common in nonmanufacturing firms 3. Adoption of a formula (e.g., one cent increase in wages for each three-point rise in CPI) • Most common is a 1 cent-per-hour increase for each 0.3 point increase in the CPI-W during the specified base period 4. Effects of COLA in increasing the costs of other compensation elements • COLA varies some keep it separate from the base wage and are instead treated as an annual bonus • COLA are "folded in" to the base wage 5. Caps or upper limit on the COLA • Ex: if a 5% cap is negotiated, then wages cannot rise more than 5% in one year, regardless of the inflation rate • Union negotiators may also seek a minimum cap of payments

Work slowdowns

o Cannot really get punished for this because you are still doing your job, but you are doing your job at a much slower pace

3 subjects of bargaining

o Categories of Bargaining Issues: Illegal Subjects • Violate the law and, if included in a contract, are unenforceable. Mandatory Subjects • Issues that directly affect wages, hours, and terms and conditions of employment. • Issues that can be bargained to impasse (neither party will agree to a change of position on the issue). Voluntary (Nonmandatory or Permissive) Subjects • Items that do not directly affect terms and conditions of employment—cannot be bargained to impasse.

CPI and cost of living

o Cost of Living: Unions demand higher wages to maintain real wage purchasing power when the cost of living rises. o Consumer Price Index (CPI): An index that measures the monthly change in the prices of goods and services for a typical household

Criticisms of interest arbitration

o Criticisms and concerns about the use of interest arbitration: Arbitrators tending to "split the difference" in making decisions, resulting in extreme positions for the negotiating parties. Arbitration's "chilling effect" on the incentive to reach an agreement when it represents the possibility of gaining more than can be gotten through negotiation. Arbitration having a "narcotic effect" on the bargaining parties as they come to rely on it.

Gain-sharing plans

o Def: companies make monetary payments to a specific group or groups of employees for producing more output or generating cost savings beyond some established goal. Group incentives aim to increase production and reduce costs, they are also designed to increase team work, provide greater job security, and achieve acceptance of new technology o Example of Group Incentive plans (gain-sharing plans) are: 1. Scanlon Plan • Sharing of savings from the reduction of total labor costs • Provides bonus payments based on a computed ratio of total labor costs (TLC) to total production values (TPV) which typically equal monthly sales, plus or minus inventory adjustments. • Reduction in the ratio would be a labor cost savings 2. Rucker Plan • Ratio of labor costs to dollar value added • Value added equals sales less purchased materials • If employees lower the ratio between labor costs and dollar value added, the productivity gains are shared 3. Improshare Plan • Reduction in labor costs over base-period labor costs • "improved productivity through sharing" • A monetary reward is granted whenever the number of labor hours required to produce the output during a measured period (week or month) is less than the # of hours required during the base period

Two-tier pay scales

o Def: contract language that specifies a newly hired employee will be paid less than other employees performing a similar job o About 19% of union contracts have a Two-tier wage plan o Permits a new hire over time (the term of the contract) to rise to the same pay level as other similarly classified workers o Achieves immediate labor cost savings as job opening are filled by comparatively lower paid "new hires"

Bargaining units

o Def: refers to the employees and employers who will be bound by a negotiated labor agreement o NLRB determines the appropriate bargaining unit (ABU) for negotiating purposes. o Combining bargaining units in the centralized negotiation of a single labor agreement is a non-mandatory subject of bargaining. Centralized bargaining of interdependent and industry-wide units increases the union's negotiating power. Diversified (conglomerate) companies are less affected by union negotiating power. Multi-employer bargaining reduces union negotiating power

Ability to pay

o Def: the financial condition of the organization, is a commonly used standard for wage determination that is given much weight by unions during periods of high profitability OR when profits are low management may say the employees deserve more money but there is no money available o Ability to pay has limited usefulness; focus is on firm performance, not on employee performance. o Unions expect a firm in good financial condition to pay higher wages, but not reduce wages when the condition of the firm declines. Productivity: • Conceptually, workers' wages should vary with changes in their productivity (output to costs). • Productivity increases can occur for reasons unrelated to workers increasing their efficiency.

Distributing union literature on company property

o Distribution of union literature can be banned in work areas at all times o Literature distribution is permitted during nonworking times and in nonworking (non-customer) areas. o Company confidential material cannot be distributed. o Lechmere decision allows employers to ban non-employee organizers if there are other reasonable means of access to employees.

Bargaining Approaches

o Distributive bargaining Negotiation process is a win-lose (zero sum) exercise in which one party must lose something in order for the other party to win. Each party relies on its bargaining power to come as close as possible to the other party's resistance point. The primary focus of a distributive bargainer is to maximize his or her own party's interests, although to accomplish this may require some consideration and satisfaction of the other party's interests. o Integrative (win-win or interest-based) bargaining or mutual gains bargaining Both bargaining parties seek to satisfy each party's substantive interest while strengthening their relationship. The effect of bargaining power is reduced by advance agreement on how bargaining proposals will be evaluated. Interest bargaining lends itself to both parties perceive a common threat or need, and successfully resolving the problems such as maintaining competitiveness, adapting to technological change, improving quality, and health care for employees. Encourages and values mutual trust and respect between the parties Negotiators focus less on narrowing the gap between each party's position and more on expanding the number of mutually satisfactory solutions o Strategies and Tactics Using persuasive arguments and objective evidence Painting a picture of the loss or gain - to ensure negotiators understand what is at stake Summarizing bargaining progress - clarify perceptions Presenting a bargaining proposal in writing - helps ensure that the other party understands the proposal Listening carefully for nonverbal cues - provide information about the importance and degree of commitment to statements made at the bargaining table Using a bargaining caucus - provides time away from the bargaining table to discuss bargaining proposals or strategies, costing, to simply avoid making a statement at the bargaining table that one is not prepared to make Use of positive reinforcement -acknowledging the acceptable portion of the proposals Linking issues (package proposals) - a strategy to resolve a large number of issues in a fairly short time Matching concessions - everything is tentative until all issues are resolved Splitting the difference

Replacement workers

o During a lockout, an employer can attempt to continue normal business operations by using nonbargaining unit personnel or hiring temporary replacements for locked-out employees o Since the employer initiated the work stoppage, permanent replacements of locked-out workers is not permitted o Employers can permanently replace employees who engage in a lawful economic strike

Effective campaign tactics for employers

o Effective Campaign Tactics: Hiring labor lawyers and management consultants Spreading rumors about potential job losses, plant or store closings Asking for a "second chance" (the company's past records show they deserve another chance) [this is a one-time-use only strategy] Uncertainty and change are naturally stressful for workers; employers try to magnify employees' natural concerns about how the workforce might change if they unionize

Cost of benefits for unionized employees vs. non-union employees

o Employee Reward-Incentive Plans Lump-sum bonuses Profit sharing plans • Cover between 6-27% of employees in most industrialized countries • Depends upon a company's profit levels Skill-based pay (SBP) • SBP systems base compensation on the skills or knowledge an employee possesses that are valued by the employer o Arguments used by Management and union officials in wage determination: General Factors in Wage Outcomes • Differential features of the job • Wage comparability • Organization's ability to pay • Productivity • Cost of living • Legal requirements Competitive Factors • Operating efficiency • Cost-cutting • Productivity improvement Internal Factors • Firm-specific labor costs • Expected profits • Labor market conditions

ESOP

o Employee Stock Ownership Plan (ESOP) this is another type of pensions Employees hold stock in their company. • Company stock is basis for employee retirement benefits. • The value of the stock can have a dramatic effect on the retirement prospects of employees. • Unions oppose ESOPs. o Provide employees with company stock

Possible bargaining structures

o Employee groups with preferences that affect the bargaining outcome. o Employees and employers affected by the bargaining outcome. o Structure: 1. Single employer - single union • Single location • Multiple locations 2. Single employer - several unions • Single location • Multiple locations 3. Multiple employers - single union 4. Multiple employers - several unions [this is the least seen structure]

Salting

o Employers hire organizers who then solicit for union membership as employees. o This is a union strategy o They get a union supporter to apply for a job and then convince their co-workers to join a union o Union salting may be called covert or overt. Covert salting is like a Trojan horse in that a full-time union organizer applies to a help wanted ad place by non-union businesses. Once employed, the union organizer initiates an organizing campaign.

Production standards

o Expected employee output consistent with the working capacities of normal (typical) operators. [expected employee output that is consistent with workmanship quality, operational efficiency, and reasonable working capacities of normal operators] Determined by time studies of effort and motion Used as the basis for calculating standard and incentive wages o Goals for Wage-Incentive Plans Increase employee productivity Attract prospective employees Reward employees monetarily

Factors affecting management's agreement/disagreement costs

o External Competition Factors Ability to pass on increased costs to customers Global competition - many product or service markets make it increasingly difficult for employers today to simply pass costs on to consumers in the form of product or service price increases Governmental regulations and controls - electric utilities operate under a pricing guideline o Company-Specific Factors Low inventories and high demand Loss of customers to competitors High fixed and variable operating costs

Safety and health / OSHA

o Factors prompting the inclusion of safety and health clauses in labor agreements: The standards and provisions of the Occupational Safety and Health Act (OSHA) of 1970 Emergence of new biological, ergonomic, and chemical hazards in the workplace Rising health care treatment costs Increases in legal claims by injured workers

FOTP

o Final-Offer Total Package (FOTP) The parties present their settlement terms on all issues and the arbitrator must choose one package to be implemented in its entirety without alteration. This is in effect a "winner take all" proposition where one party's position will prevail on all issues in dispute In theory, forcing one party to risk a total loss through FOTP arbitration provides a powerful incentive for parties to voluntarily negotiate an acceptable outcome to avoid risking the arbitrator's decision

Successor employer

o Has a legal duty to bargain with an existing union over the terms of a new labor agreement if there is substantial continuity in the operation of the purchased firm as determined by: Percentage of union employees retained. Change in the location of the firm. Change in type of customers served. Change in products produced. Change in processes and technology used. Previous managers retained. o Successorship Clause A clause in the labor contract requiring the present owners to obligate subsequent owners to continue the labor contract upon assumption of ownership.

Factors affecting election outcomes

o High (90%) voter turnout High voter turnout in union representation elections might be due to the convenient voting procedure (usually carried out on company property) and the belief of many employees that their vote more directly affects their lives than do political elections o Length of time before election occurs Longer times worsen the union's chances of winning. A delay of 10 days has proven to be a significant factor in differentiating employer wins from employer losses o Size of the election unit The union wins more in smaller units. The size of the election unit has tended to be negatively related to union victories o Multi-union elections have greater voter turnout o The union supporting the organizing effort Negative "big labor" image hurts union's chance of winning. o Whether the supporting union is independent or affiliated with the AFL-CIO Independents do better.

Layoff provisions

o In 2012, there were approximately 6,500 mass layoff incidents recorded resulting in 1.25 million initial claimants for unemployment insurance o Manufacturing and construction together accounted for over 1/3 of mass layoffs incidents

Ineffective campaign tactics for employers

o Ineffective Campaign Tactics: Intentionally delaying the representation election Shifting work and jobs to other facilities Testing applicants to identify union sympathizers Companies need to be cautious during election campaigns because they can overdo their resistance and cause negative reaction from employees

Jurisdictional strikes

o Involves a dispute between 2 or more unions over the assignment of work o It is an unfair labor practice under the LMRA for a union to strike or threaten such action to force an employer to assign work to that union's members rather than another work group o These are internal issues that should not be able to go on strike

Sympathy strikes

o Is a work stoppage by employees who have no dispute with their own employer but are striking to support another bargaining unit of their employer or a union representing employees of another employer o Union employees who refuse to cross the picket line of another union to carry out their assigned duties. Sympathy strikers can be replaced temporarily or permanently if no alternative to their refusal can be found.

Pattern bargaining

o Is used to describe a situation where union or management negotiators informally attempt to extend a negotiated settlement from one group to another o Attempting to extend the terms of a negotiated settlement (lead contract) from an employer to similar employers. Eliminates wage competition among employers [this is good for management] Increases perceptions of union equity and solidarity o Ex: The United Auto Workers (UAW) designated one auto manufacturer in each cycle of contract negotiations as the lead firm with whom the union would attempt to achieve a contract settlement. Terms of the "lead" contract are used as a pattern for negotiating labor agreements with other auto makers during the same time frame

Featherbedding

o Job security work rules that attempt to make jobs more secure, such as spreading the workload by placing limits on the load that can be carried, limiting the number of machines one can operate...such practices when carried to an extreme are known as featherbedding which exhibits "unreasonable limits to the amount of work employees may do in a given period,... payment for unneeded employees, unnecessary tasks, work not performed, or jobs duplicating those already done. o Employees being paid to do nothing

Me-too clauses

o Just as unions seek to ensure that their members' pay does not suffer relative to that of workers in other firms doing similar work, they also try to maintain pay comparability within their firms Ex: police officers and fire fighters typically see their job similar so if one gets a raise the other one does too Ex: skilled laborers may negotiate a contract stating that their wage levels will always be at least 115% of what unskilled laborers' make (this is to maintain wage differences between groups rather than identical pay levels)

Bargaining agreements & strategies

o Lock-in agreement between unions Requires each union-represented bargaining unit covered by an agreement to withhold final settlement until all involved unions are willing to settle. Ruled unlawful by the NLRB. This was a way to force the employer with multiple unions to satisfy all of the unions' concerns and to prevent the employer from using whipsaw bargaining strategy o Leapfrogging Attempts to use the most recent contracts in the industry [even if it is not your own] as the starting point for extracting further concessions. o Whipsaw bargaining strategy An employer's use of the terms of an agreement with one bargaining unit as leverage in negotiating with other bargaining units. This strategy can be used for both unions and management (Ex: municipal government that have police, fire, bus drivers, office etc.) o Withdrawal from multi-employer bargaining group An employer cannot withdraw from bargaining without the union's consent once bargaining has commenced.

Mediation

o Mediator: an individual with no authority to impose a settlement, who uses persuasion and personal credibility to facilitate the restarting of the bargaining process. Federal Mediation and Conciliation Service (FMCS) • Def: is an independent federal agency charged with helping to prevent or minimize labor disputes by providing mediation, conciliation, and voluntary arbitration services • Bargaining parties are required to provide 30 days' advance notice to the FMCS, or any other applicable state mediation agency, the bargaining between the parties is ongoing but no settlement has yet been reached Timing of the mediator's involvement (one important consideration that promotes agreement) • Face-saving - if you get angry then you don't want to be the one to call the other side and admit your feelings were out of line so you call the mediator instead

Work relocation [work transfer]

o Moving work to another facility or location. o Employers do not have a duty to bargain over relocated work if: Performance of the relocated work is significantly different from the previous location. Labor costs were not a factor in relocating the work. The union could not have offered significant labor cost concessions to affect the relocation decision. o Duty to bargain over the effects of work relocation Transfer rights, severance pay, pension rights o Subcontracting: (contracting work out) is a procurement process that usually occurs when a firm determines that it cannot perform all the tasks that are necessary to operate its business successfully or that another firm can perform the needed task better or at a lower cost Subcontracting is not a mandatory bargaining issue when: • It is motivated solely by economic conditions. • It is a common method of business in the industry. • It follows previous similar subcontracting practices. • It has no adverse impact on current bargaining-unit employees. • The union has been given the opportunity to bargain over changes in subcontracting practices. o Outsourcing: is a cost cutting strategy that involves shifting work normally done by a firm's own workers to a different producer who may be located inside or outside the U.S. Increase productivity, quality improvements o Offshoring: movement of work from a company location within the U.S. to locations outside of the U.S. (e.g., banking, information technology, telecommunications, engineering functions, tax preparation, medical services, manufacturing)

Totality of conduct

o NLRB assesses a party's overt behavior and intent in deciding the merit of an unfair labor practice charge. Parties are not required to reach a settlement, agree to a specific proposal, or make a concession. o This legal doctrine states that even though specific, individual actions, when viewed separately, do not constitute bargaining violations, such acts may constitute an unfair labor practice when viewed as a pattern of conduct in the totality of the circumstances surrounding the negotiations Boulwarism

Electronic monitoring of employees

o Negative effects of technological change o Employers argue that electronic monitoring of employees is a useful way to objectively evaluate their performance, increase productivity, prevent theft or other unlawful activity on company property, avoid potential legal liability arising from a failure to reasonable monitor employee workplace activity, monitor compliance with safety regulations, and plan for future business needs o Union officials respond that this can be a source of stress on employees, measures only quantitative aspects of job performance, erodes employees' dignity, and invades employees' privacy o Most employers inform their employees of company policies on monitoring activities as well as penalties for violating the policies o Few federal or state laws provide any significant protection for employee workforce privacy rights

How unions protect jobs from technology

o Negotiating contract language (work scheduling, electronic monitoring, outsourcing, seniority rights) o Lobbying for or against government regulation and assistance programs (WARN act) o Providing direct services to members to assist them in adjusting to or coping with change. Providing direct services to members (career counseling, job referral, short-term economic support, retraining, social-psychological support) o Becoming voluntarily involved in the technology selection process. High Performance Work Organization (HPWO) • Saves and creates jobs and is globally competitive

Jurisdictional disputes

o Occur when: (1) Two or more unions representing different bargaining units claim work for their members. (2) Workers claim work that should be rightfully theirs has been assigned outside the bargaining unit, such as supervisors (3) Workers within the bargaining unit disagree among themselves over work assignment. o Factors considered by the NLRB in resolving jurisdictional disputes: Skills and work experience required to perform the work Union certifications already awarded by the NLRB Industry and local practices Prior arbitration decisions The employer's desires Cost effectiveness and efficiency in assigning the work to a particular unit or craft

Surface bargaining and dilatory tactics

o Other Bad-Faith Bargaining Conduct: Surface bargaining • Going through the motions of bargaining without the sincere desire to reach an agreement. Dilatory tactics • Procrastinating, unreasonable delay, avoiding meetings, and other evasive actions that impede the progress of bargaining.

Premium pay

o Overtime Pay: Time-and-a-half rate for all hours worked beyond an 8-hour day • Fair Labor Standards Act requires overtime pay only after 40 regular hours of work in a week. Double-time rate for Sundays and holidays Equalization of overtime hours among workers, typically by seniority Mandatory overtime requirements within a required minimum advance notice o Other Supplements: Shift Differential • Hourly premium paid for working undesirable shifts • Ex: Premium pay for working the night shift Reporting Pay • Minimum guaranteed pay when employee is sent home due to no available work on a workday • Which guarantees some minimum number of hours' pay for employees who report for scheduled work but find no work Call-In Pay • Payment for working nonscheduled hours • Which typically guarantees 4 hours' pay for employees called in to work during nonscheduled work hours

Holidays, vacations, and rest periods

o Payment for Time not worked - holidays, vacations, and rest periods: Incidental Nonwork Benefits • Bereavement leave • Jury duty leave • Sick leave • Military leave • Personal leave • Voting leave o Payment for no work - holidays, vacations, rest periods: Major Paid-Leave Benefits • Holidays o Eligibility for pay Typically, there is a required length of service before qualifying for holiday pay. Must work scheduled work day before and scheduled work day after holiday to qualify for holiday pay. • Vacations o An employee's amount of annual vacation time increases with the employee's length of service. o Scheduling of vacations is based on an employee's seniority.

Employee backgrounds and needs for joining unions

o Previous experience as a union member generally results in a favorable attitude toward unions. 87% of those who had experience with unions would vote for a union if given a choice Those that had no experience with unions, only 27% would vote for a union o Union member parents' attitudes and family experiences strongly influence positive union attitudes. If your family member was a union person, then that might influence you to follow their footsteps. o Unions help satisfy the interrelated social needs of members for identity, self-esteem, and affiliation. The need for affiliation or belonging; the need for status; and the need to belong to something purposeful, useful, and creative that is on a higher level than improved wages and working conditions

Factors affecting contract ratification

o Ratification Union negotiators are typically only authorized to reach a tentative agreement on contract terms. Indicates union members' approval of, but not necessarily satisfaction with, contract provisions. o Factors Affecting Ratification Alternative employment opportunities Degree of satisfaction with proposed settlement Perception of effectiveness of representation by union Internal union politics Communication problems Endorsement by negotiating team

Costing proposals

o Reasons for Costing Proposals Management needs to know costs of contract terms. Union needs to estimate the value of management proposals. o General Costing Approaches Preparation of employee background data. Calculation of cents-per-hour wage increase and its roll-up effect on associated time-based benefits. The cost of some items (e.g., funeral leave) can be difficult to precisely estimate.

Authorization cards

o Required NLRB to certify a union if a majority of employees signed union authorization cards. o Employees sign authorization cards to say they want a union o Management might be concerned that these cards were obtained through inappropriate means (after drinking parties, under threats of violence, or through forgeries) o Authorization cards are not always accurate predicators of union success in representation elections

Seniority

o Seniority plays a role in determining job promotion and transfer decisions o An employee's continuous service with the firm. An objective measure that is readily determined. Possessed by all employees covered by the contract. o Used to apportion out rights unrelated to job performance: Benefit rights: eligibility for and scheduling of vacation time Job rights: bidding on jobs, layoffs, shift preferences, bumping during layoffs

Supplemental unemployment

o Severance pay (separate or termination pay, given when an individual employee leaves the firm) or a supplemental unemployment benefit plan (SUB), provided for laid-off workers, in addition to the unemployment benefits they receive directly from the state

Strike Pay

o Strike Pay: Is a voluntary agreement and so you do not get unemployment because you will get replaced o Factors Affecting a Union's Disagreement and Agreement Costs: Financial Supplements • Strike pay • Other outside compensation earned or received by strikers Public Aid • Welfare payments • Unemployment compensation • Charitable organizations • Public aid can reduce union members' disagreement costs by supplementing their incomes when they go to strike • Strikers are tax payers when they work, so when they do not work they should receive aid

Legal issues involving seniority

o Supreme Court Decisions: Bona fide (lawful) seniority systems are permitted. Employees can be awarded retroactive seniority as a remedy for past discriminatory practices. The use of seniority in layoffs is permitted where the layoff may or does adversely impact minorities. Reverse discrimination claims are not valid if the affirmative action plan: • Is a negotiated settlement between the union and employer • Does not harm majority employees (loss of jobs). • Doesn't exclude majority employees from advancement opportunities.

Trust and technological changes

o Technological advances have brought about numerous positive effects such as o Development Phase Choices are made about the design and configuration of the new technology. o Resource Allocation Phase Organizational units' claims for resources are evaluated. o Implementation Phase The new technology is constructed, put in service, and modified if necessary.

Managerial rights

o The discretionary freedom of management to decide about and to direct the operations of the firm is derived from: The property rights of the owner. The laws of agency—the legal responsibility of managers to act as agents for the owner. o Reserved Rights Doctrine Management retains all rights except those rights restricted by terms of its labor agreement with labor.

Captive audience

o This is a way to discourage union support, "captive audience" speeches, which are delivered to employees during working hours on the employer's site and employees are required to attend o Captive Audience—24-hour rule Employers cannot make speeches to workers on company time within 24 hours of an election. Employers may not threaten reprisal or promise benefits during a campaign speech.

Wildcat strikes

o This is an illegal strike o Refers to a strike that occurs in violation of an existing no-strike clause in a labor agreement and often without the approval or prior knowledge of union officials o Such spontaneous employee work stoppage, if in violation of current contract terms, would be illegal and could result in the participating employees being subject to discipline or discharge by their employer

Lockouts

o This is the employer's version of a strike o The employer temporarily locks the workers out of the company facility o A lockout is done for at least 4 reasons: 1. A lockout can ENFORCE A BARGAINING DEMAND • Can have a favorable outcome if it can survive economic loss 2. A LOCKOUT MAY BE TIMED TO MINIMIZE THE EMPLOYER'S POTENTIAL LOSS • Can lockout during slow season 3. A LOCKOUT MAY BE AN ATTEMPT TO RUIN THE LOCAL UNION • May try to discourage workers from the union 4. To PROTECT THE INTEGRITY OF THE MULTIEMPLOYER BARGAINING UNIT o Primary Employer Lockout • Use of nonunion personnel • Use of temporary replacement workers Strike Responses • Use of permanent replacement workers • Acceptance of unconditional requests for reinstatement

Voluntary Recognition

o This is the simplest and least confrontational path to union recognition (one method for organizing unions) Generally a union officer approaches a management official and asserts that a majority of the employees in a particular bargaining unit have signed cards authorizing the union to be their bargaining representative...then the cards get checked a process called Card Check Procedure o Methods for Organizing Unions Voluntary Recognition: • The employer pledges to remain neutral and not to oppose or interfere with the organization campaign. • The employer agrees to a "card check" for union majority status, allowing the union to forego the NLRB representation election process.

First contract challenges

o Usually they fail to secure a 1st contract 25-30% of the time o Factors that increase the likelihood of reaching agreement: Existence of relatively high wages already in the company Presence of other bargaining units within the company Large election victories Active participation of international union representatives o Factors that reduce the chances of attaining a 1st contract: Location in a southern state with right-to-work laws National union having to approve the local union's contract Presence of outside labor management consultants hired by the company NLRB delays in resolving employer objections and challenges to election results Employer refusal to bargain in good faith Discrimination against employees after the election

WARN Act

o Worker Adjustment and Retraining Notification Act (WARN) of 1988 Covers employers with 100 or more employees. Requires 60 days' advance notice of plant closing or major layoff involving one-third of the workforce. Exempts firms in financial collapse and unforeseen operational difficulties. Has no designated agency to enforce the act; employees and unions must sue their employer to recover damages. o The WARN Act does permit union and management negotiators to establish contract language requiring more than the minimum 60 days' advance notice required by law

Unconditional request for reinstatement

o You are pleading for your job back without asking for a certain amount of wage increase or wage requirement o A locked-out employee always has the right to return to work at any time during the lockout by notifying management of the employee's voluntary acceptance of the employer's proposed terms and conditions of employment

Community of interests

• Interest of the employees • Commonality of wages, working conditions, training, and skills • Prior history of collective bargaining • Transfers of employees among facilities • Geography and physical proximity of the workplaces • Employer's administrative or territorial divisions • Degree of separation (distinctiveness) or integration (interrelatedness) of the employees' work Restrictions on "community of interest": • Nonprofessional and professional employees must be in placed in separate bargaining units. • Craft unit cannot be ruled inappropriate • Plant guards must be in a separate bargaining unit. • Supervisors and members of management are excluded. [supervisor defined as "any individual having authority, in the interest of the employer, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them, or to adjust their grievances..." • Board doesn't care about job titles, just "independent judgment in making decisions" • Agricultural workers, most public employees, and independent contractors (not covered by the LMRA) are excluded from the bargaining unit. • Confidential employees [have access to management's bargaining strategies] and family members of owners are excluded.

Super seniority

• Protects certain union officials from layoff to assure continuity in the functioning of the union. • Which provides that highly skilled technical employees or union officials directly involved in contract negotiations or grievance handling will be the last ones laid off, regardless of their actual length of time on the job • This provision allows a company to retain essential skills and at the same time promote stable labor relations • Note that superseniority can only be used in the context of layoffs. It cannot be used for gaining additional benefits; nor can it be used for competitive job rights, to allow a person to move into a better job

Company email use by unions

An employer's e-mail usage policy can ban all non-business use of e-mail but not solely union-related e-mail. The e-mail system was viewed as employer property that employees have no statutory right to use under Sec. 7, LMRA. Employer violates the NLRA when it disciplines an employee who disseminates union-related solicitations under the employer's email policy but allows other types of solicitations such as "hawking bikini lotion, organizing charitable/social functions, sending e-mails with jokes, births, lunches, poker games, sending mass solicitations of sports events, party invitation, requests for dog walking services, etc.

Economic strikes

Can be temporarily or permanently replaced. • If permanently replaced, a striker has the right to be placed on a preferential recall list (Laidlaw-Fleetwood doctrine). Can return to work during the strike after making an unconditional request for reinstatement.