Human Resources - Managing Labor Relations

Labor Relations Issues

"Replacement" Sources of Labor Contingent Workers Living wage rates Impact of technology

Time Line of Unionization in the US

1750 - 1775: Many small craft unions 1834: National Trade Unions 1852: National Typographical Union 1856: United Cigarmakers 1857: National Education Association 1859: Iron Molders 1869: Knights of Labor 1886: American Federation of Labor 1889: United Mine Workers 1900: International Ladies Garment Workers Union 1903: International Brotherhood of Teamsters 1917: National Federation of federal Employees 1935: United Auto Workers 1937: International Longshoremen's Union 1938: Congress of Industrial Organization 1955: AFL-CIO

Trends in Union Membership

1990: 16,740 Union or Association Members - 16.1% 2011: 14,800 Union or Association Members - 11.8% Shows downward trend

What Is a Bargaining Unit?

A defined group of employees who are eligible for representation by the union. The union becomes the official bargaining agent for the bargaining unit when it is certified by the NLRB.

Labor Union

A legally constituted group of individuals working together to achieve shared, jobrelated goals, including higher pay and shorter working hours.

Resolving an Impasse: Mediation

A neutral party (the mediator) listens to and reviews information presented by both sides. The mediator makes recommendations and provides advice to both parties about what should be done.

Impasse

A situation in which one or both parties believe that an agreement is not imminent.

National Labor Relations Board (NLRB)

Administers most labor laws in the United States.

The Labor Management Relations Act

Also known as the Taft-Hartley Act (1947). Was a response to strikes in the years following World War II. Curtailed and limited union power, including closed shop agreements under which only workers who are already union members may be hired by the employer.

Local Unions

Are organized at the level of a single company, plant, or small geographic region

Arbitration

Both sides agree in advance that they will accept the recommendations made by an independent third party.

National Labor Relations Act of 1935

Commonly referred to as the Wagner Act. Granted power to labor unions on a footing more equal with managers in terms of the rights of employees.

Problems that the internet presents for labor unions:

Computers and technology reduce the number of employees required. Unions have no input when operations move overseas for cheaper labor costs.

another important early union which focused on organizing employees by industry, regardless of their craft, skills or occupation

Congress of Industrial Organizations (CIO)

How should management prepare for collective bargaining?

Consider the financial health of the company Consider existing labor contracts for similar firms Consider long-term financial and competitive effects of contract terms on the firm

Collective Bargaining Contracts

Define how the provisions of the labor agreement will be administered and enforced: Seniority Overtime allocations Job classifications

Why Do Employees Unionize?

Employees believe they will be better off as a result of joining a union Employees unionize when they are dissatisfied with their jobs and they believe that the union can help make their jobs better

How should a union prepare for collective bargaining?

Examine the employer's financial health Consider the demands and expectations of its members for negotiation outcomes Consider contract terms and trends in its industry

Knights of Labor

Expanded its goals and its membership to include workers in numerous fields rather than a single industry

Changes in Union Bargaining Goals

Fighting against wage and benefit cuts Increasing focus on improved job security Resisting job movement to nonunion facilities and outsourcing overseas Improving employee pensions plans

American Federation of Labor (AFL)

Focused its efforts on improved working conditions and better employment contracts rather than getting involved in legislative and political activities

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

Focused on eliminating various unethical, illegal, and undemocratic union practices.

Congress of Industrial Organizations (CIO)

Focused on organizing employees by industry, regardless of their craft, skills, or occupation

Decertification of Unions

For decertification to occur, two conditions must be met: No labor contract can currently be in force (the previous agreement must have expired). The union must have served as the official bargaining agent for the employees.

Gradual decline in unionization in the U.S.

Has been accompanied by significant trends in union-management relations in which unions now work with management, rather than against it In some manufacturing industries, unions remain strong and have large memberships In industries where there is strong demand for well-trained, well-educated workers, unions may find they have more leverage

Shop Steward

Is an elected position in a local union. Is a regular employee who functions as a liaison between union members and supervisors.

Wildcat Strike

Is an unauthorized job action usually undertaken in response to a perceived injustice on the part of management

an important early union that expanded its goals and its membership to include workers in numerous fields rather than a single industry

Knights of Labor

Bargaining Items

Mandatory items Items that must be bargained: wages, working hours, and benefits Permissive items Items that may be included if both parties agree

NLRB administers most labor law in the United States

National Labor Relations Board (NLRB)

The Basic Structure of a Union

National or International Union: Local Union -> Shop Steward

Lockout

Occurs when an employer denies employees access to the workplace

Slowdown

Occurs when workers perform their jobs at a much slower pace than normal.

Union Shop Agreement

Requires that nonunion applicants can be hired, but they must join the union within a specified time to keep their jobs.

When Negotiations Breakdown

Strike Occurs when employees walk off their jobs and refuse to work. • Picketing Occurs when union workers march at the entrance to the employer's facility with signs explaining their reasons for striking. • Boycott Occurs when union members agree not to buy products of a targeted employer.

an early union; it focused its efforts on improved working conditions and better employment contracts rather than getting involved in legislative and political activities

The American Federation of Labor (AF of L)

1947 - was a response to public outcries against a wide variety of strikes in the years after World War II; its basic purpose was to curtail and limit union practices

The Labor Management Relations Act or the Taft-Hartley Act of 1947

focused on eliminating various unethical, illegal and undemocratic union practices

The Landrum-Griffin Act, officially called the Labor Management Reporting and Disclosure Act

administers most labor law in the United States

The National Labor Relations Act or Wagner Act

Final-offer Arbitration

The parties bargain until impasse and then the two parties' final offers are submitted to the arbitrator.

What is Collective Bargaining?

The process by which managers and union leaders negotiate acceptable terms and conditions of employment for workers represented by the union.

Labor Relations

The process of dealing with employees who are represented by a union.

Trends in Bargaining Perspectives

Union Bargaining Goals Increased job security Restriction of job movement No wage and benefit reductions Improved pensions

How Has Technology Been Positive for Unions

Unions can communicate more easily with members. • Prospective members are easily reached in spite of no-solicitation rules.

Of the following, which is NOT a trend in unionization? a. Since the mid-2000s, labor unions in the U.S. have been experiencing increasing difficulty in attracting new members. b. Today, about 12.4 percent of U.S. wage and salary employees belonged to labor unions. c. U.S. businesses today are utilizing more aggressive antiunionization strategies. d. In 1977, more than 26 percent of U.S. wage and salary employees belonged to labor unions. e. The percentage of successful union-organization campaigns has been declining.

While understanding the historical, legal, and structural context of labor unions is important, so too is an appreciation of other trends regarding union membership, union-management relations, and bargaining perspectives. These topics are each discussed in the sections that follow. d. In 1977, more than 26 percent of U.S. wage and salary employees belonged to labor unions.

includes various types of union security agreements in addition to a requirement that a nonunion member can be hired, although he or she must join the union within a specified time to keep their job

a union shop agreement

Today, about ________ percent of wage and salary employees belong to labor unions. a. 12.4 b. 25.8 c. 56.2 d. 79.7 e. 90.3

a. 12.4

In which year the AFL-CIO was formed with a total membership of around 15 million employees? a. 1955 b. 1886 c. 1890 d. 1938 e. 1903

a. 1955

________ is the process of dealing with employees who are represented by a union. a. Labor relations b. Bargaining c. Human resource management d. Operations management e. Collective bargaining

a. Labor relations

________ items may be included in collective bargaining if both parties agree. a. Permissive b. Set c. Fixed d. Mandatory e. Gray

a. Permissive

Of the following, which is NOT true regarding the historical development of unions? a. The earliest unions in the U.S. emerged during WWII. b. The first major union to have a significant effect in the United States was the Knights of Labor. c. In the years following WWII, union memberships in the AF of L and the CIO, as well as other unions, gradually increased. d. Many of the earliest unions were only local and active in a single place. e. The American Federation of Labor replaced the Knights of Labor.

a. The earliest unions in the U.S. emerged during WWII.

Although millions of U.S. workers still belong to labor unions, union membership as a percentage of the total workforce has continued to decline at a steady rate. a. True b. False

a. True

Mandatory items as part of collective bargaining included wages, working hours, and benefits. a. True b. False

a. True

The Internet presents a challenge to union no-solicitation rules. a. True b. False

a. True

The basic objective of most impasse tactics is to force the other side to alter or redefine its bargaining zone so that an accord can be reached. a. True b. False

a. True

The first step in forming and joining a labor union is for employees to exhibit some interest in joining a union. a. True b. False

a. True

When a union has been legally certified, it becomes the official bargaining agent for the workers it represents. a. True b. False

a. True

A(n) ________ refers to a workplace in which only workers who are already union members may be hired by the employer. a. closed shop b. local union c. union tender shop d. open shop e. equal opportunity employer

a. closed shop

Wages, working hours, and benefits are ________ items in labor contract negotiations. a. mandatory b. gray c. can't touch d. permissive e. floating

a. mandatory

A ________ occurs during the course of a labor contract and is usually undertaken in response to a perceived injustice on the part of management. a. wildcat strike b. picket c. strike d. slowdown e. boycott

a. wildcat strike

both sides agree in advance that they will accept the recommendations made by an independent third party arbitrator

arbitration

________ is the process by which managers and union leaders negotiate acceptable terms and conditions of employment for those workers represented by unions. a. Operations management b. Collective bargaining c. Union shop agreement d. Labor relations e. Human resource management

b. Collective bargaining

A boycott occurs when employees walk off their jobs and refuse to work. a. True b. False

b. False

Because a union is certified, it means that it will exist in perpetuity. a. True b. False

b. False

Current trends in unionization tend to show that unions are dead and that managers no longer struggle with union-management relations. a. True b. False

b. False

The earliest unions in the United States emerged during WWII. a. True b. False

b. False

Of the following, which is NOT a step in unionization? a. The National Relations Board defining the bargaining unit b. Forcing certain employees to join the union c. Exhibiting interest in joining a union d. Creating a set of rules and regulations that govern the conduct of the union e. Striving to get 30 percent of the eligible workers within the bargaining unit to sign authorization cards requesting a certification election

b. Forcing certain employees to join the union

The National Labor Relations Board is asked to define the bargaining unit during which step of the unionization process? a. First b. Second c. Third d. Fourth e. Fifth

b. Second

In ________, a neutral third party called the mediator listens to and reviews the information presented by both sides and then makes an informed recommendation and provides advice to both parties about what she or he believes should be done. a. a boycott b. mediation c. arbitration d. a picket e. final-offer arbitration

b. mediation

refers to the specifically defined group of employees who are eligible for representation by unions

bargaining unit

Collusion

both cooperate to the point of adversity.

Cooperation

both work together

occurs when union members agree not to buy the products of targeted employer

boycott

In ________, both sides agree in advance that they will accept the recommendations made by an independent third-party arbitrator. a. a boycott b. mediation c. arbitration d. a picket e. NLRB meeting

c. arbitration

A ________ occurs when employees walk off their jobs and refuse to work. a. boycott b. lockout c. strike d. picket e. wildcat strike

c. strike

refers to a workplace in which only workers who are already union members may be hired by the employer

closed shop

the process by which managers and union leaders negotiate acceptable terms and conditions of employment for those workers represented by the unions

collective bargaining

The first major union to have a significant effect in the United States was (were) the ________. a. National Education Association b. AFL-CIO c. United Mine Workers d. Knights of Labor e. American Federation of Labor

d. Knights of Labor.

The ________ was a response to public outcries against a wide variety of strikes in the years after WWII; its basic purpose was to curtail and limit union practices. a. Knights of Labor Act b. Equal Pay Act c. National Labor Relations Act d. Labor Management Relations Act e. Fair Labor Standards Act

d. Labor Management Relations Act

A ________ occurs when union members agree not to buy the products of a targeted employer. a. wildcat strike b. picket c. strike d. slowdown e. boycott

e. boycott

A(n) ________ includes various types of union security agreements in addition to a requirement that a nonunion member can be hired, although he or she must join the union within a specified time to keep his or her job. a. bargaining unit b. closed shop c. business contract d. shop steward e. union shop agreement

e. union shop agreement

Conflict:

each challenges the other.

Power bargaining

each side tries to gain

Accommodation

each tolerates the other

Armed truce

each views the other as antagonistic.

the parties bargain until impasse and then the two parties final offers are submitted to the arbitrator

final-offer arbitration

a situation in which one or both parties believe that reaching an agreement is not imminent

impasse

the process of dealing with employees who are represented by a union

labor relations

a legally constituted group of individuals working together to achieve shared, job related goals, including higher pay and shorter working hours

labor union

unions organized at the level of a single company, plant or small geographic region

locals

occurs when an employer denies employees access to a workplace

lockout

including wages, working hours and benefits, must be included as part of the collective bargaining if either party expresses a desire to negotiate one or more them

mandatory items

a neutral third party called the mediator listens to and reviews the information presented by both sides and then makes an informed recommendation and provides advice to both parties about what she or he believes shoudl be done

mediation

may be included in collective bargaining if both parties agree

permissive items

occurs when workers representing the union march at the entrance to the employer's facility with signs explaining their reasons for striking

picketing

Both unions and employers are becoming involved in the hiring of

prisoners and paying them the minimum wage.

occurs when workers perform their jobs at a much slower pace than normal

slowdown

occurs when employees walk off their jobs and refuse to work

strike

an elected position in a local union, is a regular employee who functions as a liaison between union members and supervisors

the shop steward

occurs when workers suddenly go on strike, without the authorization (presumably) of the striker's union and while a binding labor agreement is still in effect

wildcat strike