Labor Management Relations - MGMT 4626 Test 2 Ch. 4

b. accommodation or labor-management cooperation

(The relationship is not adversarial; both sides have to get used to a team approach) (information gets to both sides) -gain sharing -union involvement -employee empowerment -employee stock option plans -unions have a role in strategy implementation more so than strategy formulation (because upper management does not want to reveal new directions and planned actions too early) -quality circles -quality of work life efforts -labor management participation teams -autonomous work units (product quality, new technology, safety and health supervision are issues addressed in the last few statements) -both management and labor focus on common goals *the health of the company -One example of this is GM and UAW (in Saturn plants) -Union leaders - must develop business decision making skills and problem solving skills -Management- must understand and develop the cooperative union-management relationship *Must get the union to feel it has a secure position as the employees bargaining unit

Differing Skills

- craft union members are highly skilled people that have completed some type of formal training (schooling and/ or apprenticeship program)- industrial union members in many cases receive no or little formal training (the company may offer some)

Company organization for labor relations activities

-By location - dye room 1 vs. dye room 2 (at a plant) -By product- bath towels vs. kitchen hand towels -By function- ex. Maintenance -By technology- dye vs. chemical plated process

1. The convention (supreme governing body of the national union)

-Constitutional assembly -Legislature of the national union -Means for nominating officers Discusses: Dues and other money matters Collective bargaining situations Labor law reform, unemployment rates, etc.

Profiles of labor leaders

-Most come from working class families -Average 14.1 years of education -Average salary ranges for union presidents of national unions is from $80,000 to $150,000- average is $123,000 -Many of these workers are hired in the general political way -Who you know and who you have helped

The national or international union

-Terms are interchangeable -These have great influence on collective bargaining -National unions operate under a constitution voted on by representatives from local unions

Dues

-Use of dues money for political purposes is somewhat controversial -US Supreme Court: if a union uses dues and fees of members for non-collective bargaining activities, and the members protest, the union has breached its duty of fair representation -Some unions have adopted rebate plans

the local union is a branch of the national union

-its powers, duties, etc. come from the constitution of the national union -the current trend is toward greater centralization of authority and power so in recent years the national unions have gained power and the local unions have lost power.

local union is the main point of contact for the individual employee

-members know and attend meetings with the local union leaders -members' grievances are to the local union leaders -when there is a strike, members get continuous contact from the local union leader

a. Business like, codified strategy

-neutral in union campaigns -straight forward apporach -these companies accept unions and agree to negotiate fairly with them -it is important that both sides have trust and respect for each other

Mergers of national unions- 3 ways

1. Amalgamation- 2 unions of equal size merge and form a new union 2. Absorption- when a smaller union merges into a larger one (Most Common) 3. Affiliation- when a single plant, single company, or regional union merges into a national union

Company's strategy in labor relations is determined by:

1. It's managerial philosophy 2. The ethics of its management 3. Its economic condition. 4. The composition of the workforce ( ex. management is a highly competitive industry may do almost anything to keep unions out) 5. Competition in the industry 6. The time in the life of the company. 7. The capabilities of management.

Generally local unions can be divided into one of two groups:

1. craft unions - members are organized in accordance with their particular craft or skill (bricklayers, carpenters, ironworkers, etc) 2. industrial unions - members are oragnized on an industry basis (steelworkers, autoworkers, mine workers, textile workers)

A. the local union - 4 levels of unions

1. local 2. national 3. intermediate 4. federation of unions

Evolvement of these constitutions has come in 3 stages

1. most power remained at the local level 2. national unions got more power as they became more active in collective bargaining and political action 3. national unions now generally have more power than local unions

differences between local craft and industrial unions

1. organizational differences in the makeup of the two types of unions as we just discussed 2. Differing scope of the labor agreement 3. Differing skills 4. Differing job characteristics 5. Differing Leadership Roles 6. Industrial unions

Organizational differences

1. organizational differences in the makeup of the two types of unions as we just discussed one point: the differing makeups of craft and industrial unions does not mean that there are no skilled employees in industrial unions electricians in a steel plant would likely be members of the steelworker industrial union rather than a craft union

Nonunion companies Strategies - From the 1980's due to foreign competition, deregulation, and competition from nonunion companies, corporations have tried to control or keep out unions as much as possible.

A. Union Suppression B. Union Avoidance C. Union Substitution

Union Substitution

Company paternalism - company towns in early 1900's Company sponsored employee organizations Forms of employee participation and employee involvement Ex.- employee committees designed to discuss and resolve grievances Employee involvement programs to restore the sense of working in a small business Arbitration to decide employee grievances Open door policies for the resolving of disputes

Union Corruption and the Landrum- Griffin Act

Corruption, racketeering, embezzlement These do occur and do make headlines, but the labor union industry is one of the most regulated today and corruption is negligible.

AFL-CIO believes in principle of autonomy

Each affiliated union conducts its own affairs

Average length of a meeting is about 2 hours

Generally they are boring Reports from the treasurer; project leaders, etc

AFL-CIO

Has several million members Administers and watches over thousands of labor agreements

Unions claim to be democracies, but in reality are more like a representative form of govt.

However union members have more say-so and authority than a U.S citizen has in its govt.

AFL-CIO has an associate membership program

Includes: -Those who voted for a union but unionization did not win -Those in nonunion companies that would support a union -Employees who are represented by a union but have not joined the union It is beneficial for the AFL-CIO to maintain contact with these people Associate members are eligible for the AFL-CIO's Union Privilege Benefit Program

National unions

Led by and executive board- elected by members Generally presidents of national unions have much power Need to act quickly Potential for abuse

Union governance is similar to a state or federal govt.

Legislative -local and national union meetings Executive - officers and executive boards Judicial- various appeal process

Industrial unions

Local union president - participates in local union negotiations maintaining local union office, assists in handling grievances, etc. International union representative - staff member of the international union may assist local officers in negotiating and administering the labor union Sometimes union officers may be granted preference in job or shift assignments and they may be protected from firing

Participation in meetings

On average, attendance at local union meetings is very low (5-10%) Attendance goes up if: Member perceives a potential pay off for attending (union suck up) A union election is near Upcoming strike vote Ratifying a negotiated labor agreement

Union Avoidance

Positive Human resources management -Maximizing the "employee voice" Double breasting - where one company has 2 or more subsidiaries, one unionized and the others nonunion or open shop (double breasting can be positive or negative) Involving employees in decision making These strategies are called 1. participative management 2. total quality managment 3. total quality control Positive Human Resources strategies include: Absence of symbols of rank and status (parking spaces, company cars, country club memberships, etc.) Locating plants in high quality areas ( good schools, neighborhoods, etc.) and keeping facilities small Corporate strength in the market ( good profits, fast growth, etc.) Programs promoting job security (work sharing or overall reductions in pay in bad economic times (avoid layoffs)) Promotion from within the company Influential human resources managers that employees like and that report to the top brass Competitive pay and benefits Management that listens Careful grooming of managers ( smart people who are liked by employees)

Functions of the meeting

Provides an opportunity for members to communicate with union leaders Leaders give information to union members Discussions are made here that involve -Grievances -Election of officers -Ratification of a contract

Current status of Labor Unions

Steady decline in membership since 1945 3 Reasons 1. Structural changes in the labor force (main reason) Shift from traditional union industries to high-tech industries Shift towards white collar employees Employment growth is faster in small businesses 2. Organizational practices Unions are having to spend more of their money to serving the needs of current members, rather than trying to attract new members. 3. Companies use of current lawas governing the workplace Acts such as: ADA, EEOC, OSHA, ERISA (gives all employees protections that unions use to give)

Union governance and structure

The organizational structure of unions is very different from the organizational structure of corporations.

Unionized Companies Strategies

These differ from nonunion companies strategies in several ways: a. 2 parties - union and management are involved; decisions are made bilaterally through negotiation b. the presence of a union formalizes employee- employer relationship because employees can file a grievance (with NLRB) if the company has violated a negotiated agreement c. negotiated work rules and policies are the company policy because both sides have to abide by negotiated terms.

Sometimes the goals of management and labor conflict.

This can cause an adversarial relationship.

Union Suppression

Union Busting Illegal Acts Refusal to bargain Decerticification Filing for bankruptcy Tattle Tales Locating new plants in low-union areas (or moving resources to nonunion plants) Giving psychological tests to prospective employees to determine if they are pro union Refusing to hire former employees of unionized companies Discharging (with documentation) union advocates

Government and operation of the local union

Union Members can participate in union activities by : Holding office Participating in meetings Attending conventions Voting Helping with the union newsletter

Participants at union meetings generally include:

Union leaders, hardcore members, pressure groups, groups with agendas (shop stewards) and people wanting union leadership positions.

line-staff relationship

Where 2 or more organizational members from different lines of authority work together on policies with neither having authority over the other. (management officials that have overturned their decision (this relationship can be full of tension)

Unionized Companies Strategies

a. Business Like Codified Strategy b. accommodation or labor-management cooperation c. Union Strategic Planning

Differing Leadership Roles

a. craft unions Business agent - full time administrator of the local craft union (leads the union hiring hall, lead local union negotiations, etc.) Shop steward - handles employee grievances, represents the business agent etc. Union members generally view the union the way they view the shop steward.

Differing scope of the labor agreement

a. craft unions (these frequently represent the construction industry) usually negotiate short labor agreements that cover a small geographical region. The craft unions generally have much more independence from the national unions than industrial unions do. Craft unions members may work on several job sites for several employers in the same year under the same labor agreement. b. industrial unions- may be covered by a national labor agreement negotiated by the company and the national union ex. GM plants in different states are covered under the same labor agreement

Sometimes the goals are similar

and create areas of cooperation and peace.

Even if formal meeting attendance is low, union members participate on an informal basis at the plant level

break, lunch etc newsletter, internet, emails, etc

Differing job characteristics

craft unions - because of the nature of their work, Many craft unions operate under conditions that mimic a closed shop Work assignments last a short period Workers return to the union hiring hall after completing an assignment to get their next job assignment Under this system the union hiring hall serves as a placement office for both the craft union members as well as the construction companies (who go to the union hall to get workers) Hiring halls must be operated in nondiscriminiatory ways, so nonunion members thoretically should get jobs there too, but in practice they rarely do Industrial union - workers are hired by the company and work for that company until they quit or are fired.

Many think that union participation leads to greater job dissatisfaction through run-ins with management, etc;

however there is no increased job dissatisfaction if the relationship between labor and management is fairly friendly or at least cordial.

Union Strategic Planning

labor unions in the U.S. have been involved in strategic planning for only a short time a typical union's strategic plan includes 1. a mission statement (organize workers, foster legislation, give out info to workers, etc.) 2. analysis of external environment (workforce demographics political and legislative concerns) 3. internal analysis (union governance) 4. organizational objectives (reducing substance abuse, improving pensions, etc.) 5. strategy development to address long term concerns *where should money (dues) go *ESOP's- Employee Stock Ownership Plans

Corporations -

power, authority, and legitimacy flow downward: -Owner or stockholders -Management -Employees

Unions have tried to increase the meeting members by:

providing beer, food, movies, door prizes

In most cases, unions and management are able to

settle their differences through the collective bargaining process.

Once each side understands its goals

they must then determine their strategies to reach these goals.

Unions -

union members hold office, attend meetings, vote in elections, express grievances themselves, etc. Thus, the power, authority and legitimacy of unions, due to this democratic process, flows upward *Union member *Shop steward *VP, Sec., Treasurer, Sergeant-at-Arms *Local union President