Ch. 15: Labor Relations and Collective Bargaining

The Labor Movement

-Union membership is down, about 14 million U.S. workers belong to unions. -Workers still belong to unions—around 11% of the total number of men and women working in America. - Almost 36% of public-sector workers belong to unions, including heavily unionized occupations such as teachers, police officers, and firefighters -In some private sector industries such as utilities (22.3 % unionization), transportation and warehousing (19.6 percent), and telecommunications (14.8 %), it can still be hard to get jobs without joining unions -Unionization also ranges widely by state, from a high of 24.6% in New York down to 1.9% in North Carolina.

*What percent of US workers belong to unions?

11%

Injuction

A court order compelling a party or parties either to resume or to desist from a certain action

The Service Employees International Union (SEIU)

A federation of more than 2.2 million members. It includes the largest health-care union, with more than 1.1 million members, including nurses, LPNs, and doctors, and the second-largest public employees union, with more than 1 million local and state government workers.

*Agency Shop

A form of union security in which employees who do not belong to the union must still pay union dues on the assumption that union efforts benefit all workers

Union Shop

A form of union security in which the company can hire nonunion people, but they must join the union after a prescribed period of time and pay dues. (If they do not, they can be fired.)

*Closed Shop

A form of union security in which the company can hire only union members. This was outlawed in 1947 but still exists in some industries (such as printing)

Fact Finder

A neutral third party who studies the issues in a dispute and makes a public recommendation for a reasonable settlement

Lockout

A refusal by the employer to provide opportunities to work

Unfair Labor Practice Strike

A strike aimed at protesting illegal conduct by the employer

Economic Strike

A strike that results from a failure to agree on the terms of a contract that involves wages, benefits, and other conditions of employment

*Sympathy Strike

A strike that takes place when one union strikes in support of the strike of another

Right to Work

A term used to describe state statutory or constitutional provisions banning the requirement of union membership as a condition of employment

*The American Federation of Labor and Congress of Industrial Organizations (AFLCIO)

A voluntary federation of about 57 national and international labor unions in the United States There are three layers in the AFL-CIO and most other U.S. unions. The worker joins the local union, to which he or she pays dues. The local is in turn a single chapter in the national union. The third layer is the national federation, in this case, the AFL-CIO.

Strike

A withdrawal of labor

Taft-Hartley Act (1947)

Also known as the Labor Management Relations Act, this law prohibited unfair union labor practices and enumerated the rights of employees as union members. It also enumerated the rights of employers. It amended the National Labor Relations (Wagner) Act by limiting unions in four ways: (1) prohibiting unfair union labor practices, (2) enumerating the rights of employees as union members, (3) enumerating the rights of employers, and (4) allowing the president of the United States to bar temporarily national emergency strikes.

Landrum-Griffin Act of 1959

Also known as the Labor Management Reporting and Disclosure Act, this law aimed at protecting union members from possible wrongdoing on the part of their union Like Taft-Hartley, it also amended the National Labor Relations (Wagner) Act. First, the act contains a bill of rights for union members. It provides for certain rights in the nomination of candidates for union office. It also affirms a member's right to sue his or her union and ensures that the union cannot fine or suspend a member without due process. This act also laid out rules regarding union elections.

Co-Derermination

An employee representation system in which workers elect their own representatives to the supervisory (management) board of the employer and have the legal right to a voice in setting company policies on matters such as company organization, hiring, and performance appraisal

Corporate Campaign

An organized effort by the union that exerts pressure on the corporation by pressuring the company's other unions, shareholders, directors, customers, creditors, and government agencies, often directly

Wildcat Strike

An unauthorized strike occurring during the term of a contract

Interest Arbitration

Arbitration enacted when labor agreements do not yet exist or when one or both parties are seeking to change the agreement

Rights Arbitration

Arbitration that interprets existing contract terms, for instance, when an employee questions the employer's right to have taken some disciplinary action

How to Lose an NLRB Election

Asleep at the switch (executives were caught unaware) Appointing a committee (committees move slowly and are uneducated) Concentrating on money and benefits Delegating too much to divisions (Dealing effectively with unions requires centralized guidance from the main office and its human resources staff)

Why Do Workers Organize?

Because between employee and company is not good The urge to unionize often comes down to the belief on the part of workers that it's only through unity that they can get their fair share of the "pie" and also protect themselves from the arbitrary whims of management. The bottom line is that low morale, fear of job loss, and poor communication (in other words, poor employee relations) also foster unionization.

Good Faith Bargaining

Both parties are making every reasonable effort to arrive at agreement; proposals are being matched with counterproposals

*Impasse

Collective bargaining situation that occurs when the parties are not able to move further toward settlement, usually because one party is demanding more than the other will offer

T.I.P.S.

Do not threaten, interrogate, make promises to, or spy on employees

The Union Drive and Election Step 4. The Campaign

During the campaign that precedes the election, union and employer appeal to employees for their votes. The union will emphasize that it will prevent unfairness, set up grievance and seniority systems, and improve wages. Union strength, they'll say, will give employees a greater voice in disciplinary matters and in determining wages and working conditions. Management will stress that improvements like those don't require unions, and that wages are equal to or better than with a union. Management will also emphasize the cost of union dues; the fact that the union is an "outsider"; and that if the union wins, a strike may follow

The Union Drive and Election Step 1: Initial contact

During the initial contact stage, the union determines the employees' interest in organizing, and establishes an organizing committee Labor Relations Consultants - Both management and unions typically use "labor relations consultants." These may be law firms, researchers, psychologists, labor relations specialists, or public relations firms. Union salting - "placing of union members on nonunion job sites for the purpose of organizing."

Union Security

First and probably foremost, unions seek security for themselves. They fight hard for the right to represent a firm's workers, and to be the exclusive bargaining agent for all employees in the unit

The Union Drive and Election Step 2: Obtaining authorization cards

For the union to petition the NLRB for the right to hold an election, it must show that a sizable number of employees may be interested in organizing. Therefore, the next step for union organizers is to try to get the employees to sign authorization cards

Grievance Pocedure

Formal process for addressing any factor involving wages, hours, or condition of employment that is used as a complaint against the employer

Picketing

Having employees carry signs announcing their concerns near the employer's place of business

The Union Drive and Election Step 3. Hold a Hearing

If the employer chooses not to contest union recognition at all, then the parties need no hearing, and a special "consent election" is held. If an employer does wish to contest the union's right, it can insist on a hearing to determine those issues. bargaining unit - the group of employees that the union will be authorized to represent and bargain for collectively

Authorization Cards

In order to petition for a union election, the union must show that at least 30% of employees may be interested in being unionized. Employees indicate this interest by signing authorization cards.

*Mediation

Intervention in which a neutral third party tried to assist the principals in reaching agreement

Employee Engagement and Unionization

It concludes that "paying attention to employee engagement levels within your organization helps to foster positive relationships between employees and management and decreases the likelihood of a workforce seeking union representation.

*Anti-Walmart Case

It's not easy competing with Walmart's low prices, but Walmart Stores' Sam's Club is actually second in sales to Costco. How does Costco stay ahead? In part with a strategy based on "strong labor relations, low employee turnover, and liberal benefits." Costco's sales per employee are about $500,000 a year versus $340,000 at Sam's Club. Having a positive labor relations strategy that supports Costco's overall aim of boosting profits through better productivity and service is working for Costco

Mandatory Bargaining Items

Items in collective bargaining that a party must bargain over if they are introduced by the other party - for example, pay.

Illegal Bargaining Items

Items in collective bargaining that are forbidden by law; for example, a clause agreeing to hire "union members exclusively" would be illegal in a right-to-work state

*Decertification

Legal process for employees to terminate a union's right to represent them There are around 450 to 500 decertification elections each year, of which unions usually win around 30%.

*Yellow Dog Contract

Management could require nonunion membership as a condition for employment, were widely enforced

*Steps in Union Drive

Step 1: Initial contact Step 2: Obtaining authorization cards Step 3: Hold a hearing Step 4: The Campaign Step 5: The Election

National Emergency Strike

Strikes that might "imperil the national health and safety"

Period of Modified Encouragement

Taft-Hartley Act of 1947 (or Labor Management Relations Act )

Period of Detailed Regulation

The Landrum-Griffin Act (1959) (Labor Management Reporting and Disclosure)

The Collective Bargaining Process

The Negotiating Team - Both union and management send negotiating teams to the bargaining table Costing the Contract - Collective bargaining experts emphasize the need to cost the union's demands carefully. Bargaining Items: Mandatory bargaining items, Voluntary (or permissible) bargaining items, Illegal bargaining items

Period of Strong Encouragement

The Norris-LaGuardia (1932) National Labor Relations (or Wagner Act) 1935

*National Labor Relations Board

The agency created by the Wagner Act to investigate unfair labor practice charges and to provide for secret-ballot elections and majority rule in determining whether or not a firm's employees want a union

Boycott

The combined refusal by employees and other interested parties to buy or use the employer's products

The Union Drive and Election Step 5. The Election

The election occurs within 30 to 60 days after the NLRB issues its Decision and Direction of Election. The election is by secret ballot

Dealing with Disputes and Grievances

The grievance process is the process or steps that the employer and union agreed to follow to ascertain whether some action violated the collective bargaining agreement Sources of Grievances The Grievance Procedure

Arbitration

The most definitive type of third-party intervention, in which the arbitrator usually has the power to determine and dictate the settlement terms

Collective Bargaining

The process through which representatives of management and the union meet to negotiate a labor agreement

National Labor Relations Act

This law banned certain types of unfair practices and provided for secret-ballot elections and majority rule for determining whether a firm's employees want to unionize So, in 1935, Congress passed the National Labor Relations (or Wagner) Act to add teeth to Norris LaGuardia. It did this by (1) banning certain unfair labor practices, (2) providing for secret-ballot elections and majority rule for determining whether a firm's employees would unionize, and (3) creating the National Labor Relations Board (NLRB) to enforce these two provisions

*Norris-LaGuardia Act

This law marked the beginning of the era of strong encouragement of unions and guaranteed to each employee the right to bargain collectively "free from interference, restraint, or coercion." Right to Collective Bargain Yellow Dog Contract unenforceable Limited Courts abilities on Stop Orders for activities such as peaceful picketing and payment of strike benefits

Voluntary Bargaining Items

Ttems in collective bargaining over which bargaining is neither illegal nor mandatory - neither party can be compelled against its wishes to negotiate over those items

What Do Unions Want?

Union Security Improved wages Hours Working Conditions Benefits Improved Wages, Hours, and Benefits - Once the union ensures its security at the employer, it fights to improve its members' wages, hours, working conditions, and benefits. The typical labor agreement also gives the union a role in other human resource activities, including recruiting, selecting, compensating, promoting, training, and discharging employees.

Inside Games

Union efforts to convince employees to impede or to disrupt production- for example, by slowing the work pace

Preferential Shop

Union members get preference in hiring, but the employer can still hire nonunion members

The Union Movement Today and Tomorrow

Union membership has gradually declined in America due to blue-collar jobs has been decreasing and Globalization increasing

Unions and the Law

Until about 1930, there were no special labor laws This situation lasted until the Great Depression (around 1930). Since then, in response to changing public attitudes and economic conditions, labor law has gone through three clear periods: from "strong encouragement" of unions, to "modified encouragement coupled with regulation," and finally to "detailed regulation of internal union affairs."

F.O.R.E.

You may give employees Facts (like what signing the authorization card means), express your Opinion about unions, explain factually correct Rules (such as that the law permits permanently replacing striking employees), and share your Experiences about unions.

*Union Salting

a union organizing tactic by which workers who are in fact employed full-time by a union as undercover organizers are hired by unwitting employers

*Bargaining Unit

the group of employees the union will be authorized to represent