SHRM Functional Area #9 - EE and Labor Relations

confrontational union relationship

+ greater control over labor decisions - investment of time & potential operational disruptions

International Trade Union Confederation (ITUC)

- The apex of international trade unions - A worldwide federation of national union federations - Resulted from the 2006 merger of two longstanding federations

labor/trade union trends

- declining in developed countries (focus on customer service reps and low-level technicians) - stable/rising in developing countries (focus on basic issues like wage/working conditions)

collaborative union relationship

- greater acceptance of labor-mgmt partnerships - greater info sharing - greater willingness to share power - joint decision making - win-win bargaining techniques - shared responsibility

how have unions responded to globalization?

- increasing formal internationalization of unions - pressing for national and international compliance w/labor standards (ILO) - implementing international framework agreements - forming networks and alliances

work councils structure

- management & worker reps - worker reps overseen by mgmt - only worker reps

4 strategic objectives of the ILO

- promote rights at work - encourage decent employment opportunities - enhance social protection - strengthen dialogue on work-related issues

Contract Negotiation Process

- union submits proposal to ER - ER has certain amount of time to respond and negotiate terms

grievance procedure

1. immediate supervisor 2. next level i.e. department head 3. higher-level mgmt 4. third party determination *a rep from the union is involved in all steps

six types of union characteristics to identify

1. level at which bargaining occurs - ER individually or as part of an industry association? Union representing an enterprise or an entire industry? 2. bargaining topics - restricted to wages/benefits or also include broader social topics 3. union density - what % of workers belong to a union 4. Membership - is it compulsory? 5. Relationship w/management - historically good or bad? 6. Gov't Role - how likely will gov't intervene in negotiations

typical sequence of disciplinary actions

1. problem-solving session w/open dialogue 2. first formal warning 3. second warning 4. final warning 5. termination

wildcat strike

Work stoppages at union contract operations that have not been sanctioned by the union.

Ombudsperson

a designated neutral third party who listens to complaints and disputes in an attempt to resolve them usually not empowered to settle grievances

labor/trade union

a group of workers who coordinate their activities to achieve common goals in their relationship with an ER or group of ERs members elect representatives to interact with management (skilled or unskilled)

international Labour Organization (ILO)

a specialized agency of the United Nations which deals with labor issues, particularly international labor standards and decent work for all (185 member states)

positive punishment

adds a requirement

EE and Labor Relations

any dealings between the org and its EEs regarding the terms and conditions of employment

chosen officer

employee selects arbitrator from designated group

open-door policy

encourages EEs to meet with an immediate supervisor or manger to discuss workplace problems

types of unions

enterprise union; represents all EEs of an ER regardless of job type or skill specific trade or craft union; i.e. electrical, chemical or atomic workers national union; different unions join a national federation of unions industry union; represents workers from different ERs w/in an industry i.e. auto manufacturing

peer review

establishes panel of EEs trained to work togehter to hear and resolve EE complaints

UNI Global Union

founded in 2000 to represent service-sector EEs around the world 900 affiliated unions in 150 countries

World Federation of Trade Unions (WFTU)

previously composed of unions from communist countries, now focuses on unionization in developing countries

negative punishment

removal of a stimulus i.e. promotion or raise

arbitration

settling a dispute by agreeing to accept the decision of an impartial outsider

industrial action

various forms of collective EE actions taken to protest work conditions or ER actions (often inhibit ERs ability to fulfill commercial interest)

avoidance (labor relations strategy)

why? - additional cost of unionized workforce - loss of flexibility in mgmt decisions - increased time to make or implement decisions - can be avoided by offering EEs competitive wages/benefits & trust

adaptation (labor relations strategy)

why? - unions are already in place can be confrontational or collaborative

acceptance (labor relations strategy)

why? - unions are well established and legally protected - unions are the norm in the industry - cost of fighting unionization is too high

general strike

work stoppage

UN Global Compact

A policy framework designed to help businesses develop, implement, and disclose policies and practices that meet sustainable goals in the areas of human rights, labor, environment, and anticorruption

sympathy strike

Action taken in support of another union that is striking the employer.

Secondary action or boycott

Attempt to influence an employer by putting pressure on another employer

policy

Broad statement that reflects an organization's philosophy, objectives, or standards concerning a particular set of management or employee activities.

Mixed System ( codetermination)

EE representatives are included but they are only advisors (no voting rights)

lockout

ER shuts down operations to prevent EEs from working

codetermination

Form of corporate governance that requires a typical management board and a supervisory board and that allows management and employees to participate in strategic decision making.

constructive discipline

Form of corrective discipline that implements increasingly severe penalties for employees; also called progressive discipline.

works councils

Groups that represent employees, generally on a local or firm level; primary purpose is to receive from employers and to convey to employees information that might affect the workforce and the health of the enterprise. *not allowed in U.S. because they violate National Labor Relations Act which prohibits company dominated unions *common in Europe, especially Germany

mediation

Method of nonbinding dispute resolution involving a third party who helps disputing parties reach a mutually agreeable decision; also known as conciliation.

intellectual property (IP)

Ownership of innovation by an individual or business enterprise; includes patented, trademarked, or copyrighted property.

employment at will

Principle of employment in the U.S. that employers have the right to hire, fire, demote, and promote whomever they choose for any reason unless there is a law or contract to the contrary and that employees have the right to quit a job at any time. exemptions: - public policy i.e. ADA, whistleblowing, union forming - implied contract i.e. handbooks suggests a contract - covenant of good faith and fair dealing; applies in a few states, restricts actions that are seen as unjust or malicious

collective bargaining

Process by which management and union representatives negotiate the employment conditions for a particular bargaining unit

Work-to-rule

Situation in which workers slow processes by performing tasks exactly to specifications or according to job or task descriptions.

single designated officer

Specific individual chosen by senior management to conduct investigations and dispute resolution; credibility of person may depend on credibility of management

Unfair labor practice (ULP)

Violation of employee rights (violation of a labor law); act prohibited under a country's labor relations statutes. - company may be fined or suffer other consequences if found guilty

Single tier system ( codetermination)

only one board of directors, but EEs are included as members

7 Global Labor Strategies

hands off; locally responsive, workforce relationship is entirely locally managed monitor; HQ tracks local mgmt decisions and demonstrates any concerns, leaves decision to be made locally guide and advise; HQ offers more advice and tries to apply global policies to local practices, decision is still at local level set limits and approve exceptions; some local adaptations may be made but only after review/approval by HQ integration of HQ and line mgmt in field; labor decisions made jointly manage locally from HQ; centralized, HR implements w/o change HQ developed policies

Organisation for Economic Cooperation and Development (OECD)

help countries address globalization issues by researching and promoting changes in environmental, social, and economic policy

picketing

involves patrolling of a business site by workers who are on strike (no work stoppage)

factors affecting the collective bargaining process

legal/regulatory factors economic conditions bargaining precedents public/EE opinion

sit-down strike

method of boycotting work by sitting down at work and refusing to leave the establishment

Alternative Dispute Resolution (ADR)

methods of solving a problem by bringing in an impartial outsider but not using the court system

Dual system ( codetermination)

mgmt board + supervisory board (up to 1/2 EEs) - may accept or reject mgmt board decisions

World Trade Organization (WTO)

mission is to open trade opportunities and to facilitate resolution of trade disputes, in the form of negotiated agreements - freedom of association - no forced labor - no child labor - no discrimination at work

International Framework Agreement (IFA)

negotiated between unions, global union federations (GUFs), and multinational enterprises enterprises commit to core labor standards