Employee and Labor Relations

industrial actions

includes various forms of collective employee actions (or "concerted activities," in U.S. parlance) taken to protest work conditions or employer actions. The term also includes employer actions taken in response to employee actions. Collective employee actions intend to interfere with an employer's ability to fulfill its commercial interests.

Third-party resolution, alternative dispute resolution (ADR)

in some countries, uses an intermediary to create solutions and dispel conflict. This method can have varying degrees of neutrality and formality as well as complexity. In some Asian cultures, an intermediary may be chosen who knows both parties well, can hear both sides, and can gain agreement on a solution, while in other cultures the intermediary is not familiar with either party. The simplest forms of ADR could include an open-door policy (in which a superior helps resolve a conflict without potential repercussions for the employee), a panel of trusted and respected superiors, or a panel of peers.

Conducting Investigations

ensure confidentiality, provide protection, select the investigator, create a plan, develop interview questions, conduct interviews, make a decision, close an investigation, develop written summary of investigation results

Three generic labor strategy

"Acceptance" Labor Strategy "Avoidance" Labor Strategy "Adaptation" Labor Strategy

Preventing Disciplinary Situations

Review codes of conduct before implementing them. Set clear expectations Behave consistently. Establish a climate of communication. Maintain an open-door policy Again, managers should be aware that cultural differences will affect the degree to which employees seek communication with superiors. In addition, employment law may influence practices

8 Core Labor Standards of ILO

"Freedom of Association and Protection of the Right to Organize," prohibiting interference from public authorities and the requirement of authorization by employers "Right to Organize and Collective Bargaining," protecting workers from retaliation and obligating employers to negotiate with unions "Forced Labor," prohibiting forced and compulsory labor, except for military service, prison, and emergencies (e.g., war, natural disaster) "Abolition of Forced Labor," prohibiting forced labor as a means of political coercion or punishment, retaliation for strikes, workforce mobilization, labor discipline, and discrimination "Minimum Age," prohibiting the hiring of children too young to have completed compulsory schooling and limiting employment in hazardous work to those 18 and over "Worst Forms of Child Labor," prohibiting any work likely to be harmful to the health, safety, and morals of children "Equal Remuneration," requiring equal pay and benefits for men and women "Discrimination," prohibiting discrimination in hiring, training, and working conditions and requiring employers to promote equality of opportunity and treatment

The combined factors influencing collective bargaining may be generally categorized as:

(Figure 34) Legal and regulatory factors—government regulations that make collective bargaining agreements compulsory for employers or enforceable. Bargaining precedents—factors during the bargaining process that led to previous agreements and/or the existing agreement. Public and employee opinion—public sentiments about the organization and the union and what employees deem to be pertinent. Economic conditions—the state of the local and national economies.

Terminating Employment for Discipline Reasons

- Never summarily discharge.need to do a thorough investigation Make sure your investigation is thorough, complete, and well documented. Conduct employee interviews. During interviews with the employee, the approach should be investigative, not adversarial or accusatory. Do not delay. Investigations should begin as soon as possible and communicated Always conduct a "final filter" review. Review the investigator's findings and recommendations to determine if they are complete, accurate, etc., before making a final decision. Pinpoint the basis of the discharge. The discharge reason(s) must be carefully identified and articulated. Most employers orally communicate this information and then document it in writing. Whenever possible, inform the employee in person of the decision to terminate and the reason. An organization should have a clear policy on who makes the decision to terminate and how an employee is informed of the decision. Be alert to possible reactions

grievance procedure

A contract almost always includes a formal grievance procedure. This process provides an orderly way to resolve the inevitable differences of opinion in regard to the union contract that develop during the life of the agreement.

collaborative labor-management relationship characterizations

A greater acceptance of labor-management partnerships. An increased willingness to share power. More open and candid sharing of information. Joint decision making on issues of common concern. "Win-win" bargaining techniques. Shared responsibility and accountability for results.

Policy

A policy is a broad statement that reflects an organization's philosophy, objectives, or standards concerning a particular set of management or employee activities. Policies reflect the employer's employee relationship strategy. They are general in nature and are expressed through more specific procedures and work rules.

Workplace Retaliation prevention steps

Adopt and disseminate a strong antiretaliation policy. While this policy can be referenced in the organization's antidiscrimination and antiharassment policies, a separate antiretaliation policy may be more effective. Inform employees about the process for reporting alleged retaliation. The organization's antiretaliation policy should state to whom employees report retaliation. For example, employees could be instructed to go to anyone in their chain of command or the organization's HR office Train managers on retaliation. Individuals accused of discrimination or other unlawful behavior may lash out at the accuser or witnesses. Remind supervisors of the organization's policy. Make sure that supervisors understand the organization's policy prohibiting retaliation against complainants or witnesses. Inform supervisors that they will be subject to disciplinary action if they retaliate against individuals who make a complaint against them or who provide information related to a complaint. Monitor the treatment of employees Investigate allegations and take corrective action if necessary. I

ER strategy

Alignment with the organizational strategy, showing how the ER strategy will help the organization achieve its long-term goals. Alignment with employment laws and business practices. In some areas and industries, organizations cannot choose to avoid working with works councils and labor unions. Consulting with these third-party representatives may be required by law or be a traditional feature of an industry's or nation's employee relations. A vision describing the type of workplace culture the leaders hope to create. The values upon which the strategy is built—for example, respect, teamwork, mindfulness of strategically defined issues such as customer focus, quality improvement, or safety. In the same way that organizational business strategies must be in alignment with the organization's culture, the ER strategy must fit the organization's values and beliefs. If not, the organization must commit to the process of changing its culture to one that is consistent with the ER strategy.

Providing Due Process in Employee Discipline

An employee is informed of the employer's expectations and the process and consequences attached to failure to meet those expectations. The disciplinary actions are consistent and predictable. The employer's decision is based on factual evidence. The employee has a right to question the evidence and defend himself or herself. The employee has a right to appeal the disciplinary decision. A constructive discipline process is used. The employee is considered as an individual.

Strategies for Improving Employer-Union Relations

Comply with applicable international standards and local laws governing unionization and other worker rights. Comply with local regulations regarding informing and involving workers. Develop fair grievance and alternative dispute resolution procedures with built-in appeals mechanisms. These should be regionally appropriate and available to all employees, regardless of union membership. Implement joint study groups to solve common problems. Treat union members equitably and respectfully. Demonstrate genuine appreciation for employees' interest and involvement in workplace issues. Consult with union leaders to defuse problems before they become grievances.

Employee/Union ULPs

Conspiring with employers to discriminate against employees on the basis of union membership. Interfering with freedom of speech or coercing or fining employees. Failing to respond to member complaints. Refusing to bargain in good faith. Requiring unreasonable or discriminatory membership fees. Directing prohibited work actions.

Guidelines on Handling Grievances (Do's)

Do investigate and handle each case as though it may eventually result in an arbitration hearing. Do require the union to identify specific contract provisions allegedly violated. Do comply with the contractual time limits for handling the grievance. Do visit the work area related to the grievance. Do determine whether there were any witnesses. Do examine the employee's personnel record. Do fully examine prior grievance records. Do comply with regulations regarding the presence and involvement of union representatives in meetings with employees. Do treat the union representative as your equal. Do hold your grievance discussions privately. Do fully inform your own supervisor of grievance matters. Do have at least two management representatives present. Do document all grievance meetings; take copious notes.

Guidelines on Handling Grievances (Dont's)

Don't make arrangements with individual employees that are inconsistent with the labor agreement or that exclude the participation of a union representative. Don't hold back the remedy if the employer is wrong. Don't admit to the binding effect of a past practice. Don't relinquish to the union your rights as a manager. Don't settle grievances on the basis of what is "fair." (Use the labor agreement as your only standard.) Don't bargain over items not covered by the contract. Don't give long, written grievance answers. Don't trade a grievance settlement for a grievance withdrawal (or try to make up for a bad decision in one grievance by bending over backward in another). Don't deny grievances on the premise that your "hands have been tied by management." Don't agree to informal amendments in the contract. Don't establish a pattern of practices that have the effect of creating a right not specifically included in the contract.

Three models of Codetermination

Dual system. In addition to the typical management board, there is a supervisory board. Depending on the size of the employer, as many as half of the supervisory board members may be workers. Because this supervisory board has the authority to accept or reject the management board's decisions, organizations are essentially prohibited from implementing workplace changes without employee consent. Single-tier system. There is only one board of directors, but employee representatives are included as members. Mixed system. Employee representatives are included, but they are only advisors (i.e., in a nonvoting capacity).

Employment at will exemption

Public policy exemptions. Employees may not be fired without cause if this would violate state or federal laws. Terminations that can be proven to be in violation of a federal antidiscrimination law (e.g., the Americans with Disabilities Act) would not be protected under the at-will doctrine. For example, an employee cannot be fired for talking to other employees about work conditions, forming a union, or whistleblowing (reporting an employer's illegal activity to authorities), which are protected activities. Implied contract exemptions. Implied contracts (i.e., not written) are difficult to prove but can be created through certain employer actions, promises, or statements made by individuals or the organization as a whole. For example, promises in an employee handbook that employees will be fired only for good cause can be interpreted as an implied contract. Covenant of good faith and fair dealing exemption. This applies in only a few states. It restricts actions that are seen as unjust or malicious.

Organized labor actions

Employer or industry associations. In some countries, contracts may be negotiated at a multi-employer level. The contracts may be at an industry level (e.g., steel manufacturers) or at a national level. For example, in the trucking and hospitality industries in the U.S., employers and unions may engage in industry-wide or regional negotiations on a single contract. In the construction industry, a general contractor may negotiate a project labor agreement (PLA) with multiple trade groups. A PLA requires specific contractors to accept certain conditions in project contracts, such as paying a fair wage and contributing to health insurance, pension, and training funds. National governments and agencies (Tripartism—a collaboration of governments, employers, and unions—is the norm in many countries.) International groups (In response to the global recession starting in 2008 to 2009, the ILO—with governments, employers, and employee groups—created a Global Jobs Pact, which issued recommendations for steps that all parties could take to meet the economic crisis. Governments could invest in jobs and provide social protections, while employers could recommit to ILO labor standards and apply flexible work arrangements, such as rotating workers into jobs. Local governments, nongovernmental organizations, religious institutions, and community groups. (These groups are usually more active at a local level, applying pressure on social justice issues and helping to support social programs during economic crises.)

"Avoidance" Labor Strategy

Employers may choose to avoid unionization because of the additional cost of managing a unionized workforce (especially one with multiple unions), the loss of flexibility in management decisions, and the increased time required to make and implement strategic decisions. In some industries or markets, a unionized workforce may be seen as a competitive disadvantage. An organization seeking to avoid unionization can decrease the appeal of unions and/or remain vigilant and active in resisting unionization efforts.

HR's Role in the Disciplinary Process

Ensure that the organization's code of conduct reflects the organization's values and complies with applicable laws and that the code is publicized adequately throughout the organization. Involve local HR in identifying local issues to be addressed in the code because of local laws or customs. Ensure training of all managers and supervisors—the key players in ensuring effective, appropriate, fair, and consistent discipline. Monitor compliance with policy and local practices.

Examples of Employee Collective Industrial Actions

General strike- Work stoppage. Sit-down strike- Refusal by workers to work; also refusal by workers to leave their workstations, making it impossible for the employer to use replacement workers. Sympathy strike- Action taken in support of another union that is striking the employer. Contracts may include provisions prohibiting sympathy strikes. Wildcat strike- Work stoppages at union contract operations that have not been sanctioned by the union. Secondary actionor boycott- Attempt by a union to influence an employer by putting pressure on another employer—for example, a supplier. Work-to-rule- Situation in which workers slow processes by performing tasks exactly to specifications or according to job or task descriptions. Overtime ban- Similar to work-to-rule. Employees refuse to work any overtime, adhering to the hours stipulated in the contract. Picketing- Positioning of employees at the place of work targeted for the action for the purpose of protest. Picketing can be used for similar purposes as strikes, but there is no work stoppage. In some cases, picketers may illegally interfere with commerce at the employer's site.

HR's Role in Preventing Unfair Labor Practices

HR should make sure that all managers and supervisors understand guaranteed employee and employer rights, the terms of union contracts, and the concept of an unfair labor practice. Training can be provided to illustrate specific speech and behaviors that are allowed or prohibited by local laws—for example, asking questions that could be interpreted as spying on union activities or treating employees in a way that could suggest preferential treatment for employees who are not members of the union

The Grievance Process

Immediate supervisor. Employees who feel mistreated or think that their contract rights have been violated file a grievance with the immediate supervisor. At this point, the filing of the grievance may be written or oral; most grievances are written. The supervisor must attempt to accurately determine the reason for the grievance and try to solve the problem. Supervisors and union representatives or stewards can work together to solve the problem Next level. If the employee, supervisor, and union representative cannot solve the problem together, the formal written grievance proceeds to the next level in the hierarchy—the intermediate supervisor, department head, or unit manager and a higher-level union official. To promote free discussion, the employee with the grievance is usually not present and is represented by the union. It is, therefore, important for both sides to fully document their facts and their positions. Higher-level management. If the grievance is not resolved within the time period set under the union contract, it usually goes to the next level, where, on the union side, a member of the grievance committee or a representative from the union structure is involved. Third party determination. If the grievance is still not settled, a neutral outside arbitrator may be called in to settle the issue. At this stage, the highest levels of each side are usually represented. For the employer, this may include the vice president for HR (or equivalent) and/or legal counsel. For the union, this may include the local union president, a national union representative, or legal counsel.

Employer ULPs

Interfering with an employee's right to join a union. This could include bribing employees not to vote for or join a union or eliminating or threatening to eliminate jobs in some manner. Discriminating among workers based on union membership, either to discourage or require membership, or based on employee complaints. Refusing to bargain with a recognized union or provide information material to negotiations. Refusing to enforce contract provisions. Controlling or intervening in union operations.

Labor relations

Labor relations refers to the way organizations manage their relationships with employees as a collective group rather than individually.

six characteristics that HR professionals should try to identify in labor groups with whom their organizations interact

Level at which bargaining occurs. Focus of bargaining topics Union penetration or density (These terms refer to the percentage of workers that belong to a union.) Membership Relationship with management Role government will play.

7 options for workforce relationships

Like the enterprise's global strategy, the options lie on a continuum between two points: locally responsive (in this case, hands-off) and centralized or standardized (in this case, managing local conditions with headquarters-derived policy). Hands-off. In this locally responsive strategy, the workforce relationship is entirely locally managed. Monitor. Headquarters tracks local management decisions and demonstrates its interest and concerns, but it leaves decisions to be made locally. Guide and advise. Headquarters offers more advice and tries to apply global policies to local practices, but it still leaves decisions at the local level. Strategic planning. The employee relations strategy is developed with an understanding of variation among workforces throughout the enterprise. Policies are set globally, but practices are developed locally. Practices must conform to the global policies. Set limits and approve exceptions. Some local adaptations may be made but only after review and approval by headquarters HR. Integration of headquarters and line management in field. Labor decisions are made jointly. Manage locally from headquarters. In the centralized or standardized alternative, local HR staff simply implement, without change, headquarters-developed HR policies and practices.

People involved in the dispute revolution commit to

Listening. Managing their own emotions. Agreeing on goals. Focusing on issues and facts rather than personalities. Considering all perspectives. Engaging in problem solving and exploring alternative solutions together. Reaching agreement on next steps

Tips for Creating Effective Employee Handbooks

Make sure the handbook reflects your organization. Look at templates and, if available, handbooks for other organizations as a guide, but aim for a complete and accurate reflection of your organization's policies. Align your handbook with local laws and regulations. For example, a statement that the handbook does not create a contract is necessary in the U.S. to maintain an at-will employment relationship. Focus on policy and policy-related procedures. Avoid job-related procedures or rules. Include procedures for reporting and/or resolving policy and work rule violations. Be realistic in expectations. Policy should be consistently enforced, and consistent enforcement is difficult when policies are overly restrictive and/or culturally misaligned. Keep it short, comprehensible to the average reader, and unambiguous.

Neutral Parties

Mediation (also known as conciliation) is a method of nonbinding dispute resolution involving a third party who tries to help the disputing parties reach a mutually agreeable decision. It is aimed at keeping labor and management negotiators talking so they can voluntarily reach a settlement. Mediators have no power to compel the two parties to reach an agreement. Instead, they seek to find common ground and persuade the parties that it is in their best interest to reach an agreement without resorting to a strike. Arbitration is a negotiated procedure in which labor and management agree to submit disputes to an impartial third party and abide by the arbitrator's decision. The arbitration process is more informal than court proceedings. As a result, it can usually concentrate on key issues and resolve disputes faster than litigation. It is designed to permit uninterrupted operations during the existence of a contract and to substitute for the historical remedy—a union strike or an employer lockout.

Post employment agreement

NDA- Non disclosure agreement in which the employee agrees not to discuss knowledge gained during employment. This can include knowledge related to patented products, business models and strategies, customer information, or privileged information such as test results or pending litigation. The agreement usually specifies a period of time during which the employee is barred from disclosure. It generally does not restrict use of information that is considered commonly known. NCA- Non compete agreement as a condition of employment. A non-compete agreement prevents an employee from leaving to work for one of the employer's competitors. The agreement may specify a period of time and a geographical range within which the employee is barred from working for a competitor.

How do the International Labour Organization's legally binding conventions impact the practice of HR?

Once a country ratifies an ILO convention, it is obligated to abide by the convention immediately, without reservations. The ILO has a supervisory system to hold countries accountable and offers technical assistance to member countries. A ratified ILO convention becomes law (including employment and human rights- based law) in the member countries/states, therefore influencing country-specific law and thus HR adherence to employment-related law.

Forms of ADR

Open door policy Ombudsperson (but is usually not empowered to settle grievances.) Single designated officer Chosen officer Peer review Mediation* (only help to facilitate a discussion) Arbitration* (Submits disputes to one or more impartial persons who listen to both sides and make a final determination.) *Some employers require that employees agree in writing to using mediation or arbitration as a condition of employment, before the need for ADR arises. Not all listed are legal or culturally acceptable in each country

"Acceptance" Labor Strategy

Organizations may accept unionization for good reasons. In some countries, third parties—both labor unions and works councils—may be well established historically and culturally and well protected legally. Unions may be the norm in certain industries. Some organizations may find the costs of fighting unionization efforts to be too high or too distracting.

Best practices for disciplinary actions

Produce persuasive evidence of the employee's culpability or negligence. Give the employee a fair opportunity to present his or her side of the story. Determine a penalty appropriate for the given offense. Impose discipline that is consistent with the treatment that others have received for similar infractions. Incorporate HR review of all material/serious disciplinary actions to make sure that discipline is consistent with similar historical cases and that it does not violate union contracts, employment or other laws, or cultural norms.

Workplace Retaliation

Retaliation in the workplace occurs when an employer, employment agency, or labor organization takes an adverse action against an employee—often as a result of a conflict or complaint. In some cases, retaliation may be a form of unlawful discrimination

Types of unions

Single enterprises, a model seen in Japan. For example, all the employees of an employer, regardless of job type or skills, may be represented by a single enterprise union. These enterprise-level unions may join a larger national or industrial confederation. Specific trades or crafts, such as a union representing electrical, chemical, or atomic workers. A national union. In many countries different trade or craft unions join national federations of unions. The confederation may be tight or loose. An industry union that represents workers from different employers within a certain industry, such as steel or auto manufacturing.

Problems with vague NCA and NDA

Subsequent employers may counter-sue an employer seeking to enforce an NCA. Local jurisdictions and governments may look unfavorably on what they perceive as infringing on an employee's right to work and freedom of speech. NCAs have been accused of lowering wages (since employees cannot leave for similar employment) and discouraging entrepreneurship. NCAs may be illegal or severely restricted in some jurisdictions. They may damage an employer's ability to attract and retain talent. Young, highly skilled employees may see an NDA/NCA requirement as disqualifying a potential employer. Some employees may leave certain markets in search of jurisdictions that are less accepting of restrictions. Employers should carefully consider whether these agreements are necessary for all employees...or necessary at all for their businesses. Boilerplated agreements should probably be avoided in favor of more targeted and negotiated agreements.

HR's Role in Collective Bargaining

Suggest work processes that are most cost-effective and identify management proposals that may be ineffective in terms of creating a productive workplace (e.g., job restructuring that increases stress). Contribute suggestions based on HR's understanding of employee needs. In some cases, nonmonetary concessions can be as significant to employee groups as wages and benefits. Analyze contract language to identify potential misunderstandings or difficulties in administration that could result in grievances later. Provide negotiators with data about employee demographics and payroll and benefits costs that can be used to analyze the cost implications of proposals and concessions. Identify unintended consequences of contract provisions so that they can be more fully considered. For example, an employer's offer might not be economically sustainable over the life of the contract, or it might be too low, encouraging other employers who are not locked into multiyear contracts to lure employees away with higher wages once the contract has been approved. Identify clauses from preceding contracts that may be in conflict with new employment laws.

HR's role is not specifically develop policies

Supports the development of policies by the organization's leaders. Some policies, such as discipline and discharge, are driven by the organization's culture, and the role of HR may be to help leaders apply the organization's values to employment issues and determine policy positions. Facilitates development of procedures by other departments. Some departments assume the responsibility for many of their own department-level policies and procedures, while others will request HR support to develop consistent and thorough policies and procedures. Supports communication of policies throughout the organization. HR needs to ensure that managers are clear about the intent and/or specific terms of the policies and how to communicate and enforce them. As warranted, HR should provide related training for managers.

Avoidance Labor Strategy - appeal to avoid

The appeal of unions can be blunted by addressing the major reasons why employees consider joining unions—by offering competitive wages and benefits, cultivating trust and mutual respect, making sure employees are treated fairly and with transparency, maintaining a safe working environment, and fostering two-way communication with employees. It is important to communicate why the organization prefers to remain union-free. Organizations can also train managers and supervisors to be vigilant for signs of unionizing activity and to respond quickly to actions, representing the employer's interests within the existing labor statutes.

organization's strategy is shaped by key differences in its operations and culture

The extent to which the enterprise's production is integrated among its subsidiaries.- For example, a Japanese electronics manufacturer relies on components (circuit boards, power supplies, LED displays) that are manufactured by subsidiaries in other countries. Subassembly and final assembly are done by separate subsidiaries located regionally. It is to the enterprise's benefit to consider the interrelationship of workforce relations at each subsidiary, because a breakdown in one area can disrupt the entire production chain. Management may assume a more centralized strategy. An enterprise's cultural attitude toward workforce relations and experience with labor/trade unions The relationship between the originating company and its subsidiaries

Stages of dispute resolution

The first stage of dispute resolution is usually an informal meeting of the employee or employees with their immediate manager. If the dispute cannot be resolved at this first level, it is escalated to a more formal meeting, perhaps with a higher level of management or an internal dispute resolution body such as a panel of peers. The final step in this process is to communicate to the employee the results of any investigation and management's decision. If the employee is not satisfied with the outcome, the dispute may be escalated to the next level of management or to dispute resolution by a neutral third party.

International Labor Organization

They are accepted as standards by other international groups such as the World Trade Organization and have provided models for national labor statutes. Promote rights at work. Encourage decent employment opportunities. Enhance social protection. Strengthen dialogue on work-related issues.

Actions can be undertaken by unions

To call for increased wages and benefits. Tough economic conditions that increase employee indebtedness, unrealistic expectations, or anger over discrepancies between compensation for high-level managers and employees can intensify union demands in this area. To call attention to violations of contract terms, unfair treatment, unfair labor practices, or poor working conditions. To protest proposed changes in work rules, such as how promotions or grievances are handled or work schedules are made. To protest the way in which workers are identified for retention or termination during a downsizing. To pressure an employer to negotiate a contract. To resist a proposed contract perceived as unfair (perhaps because it contains "clawback" provisions that will result in economic loss to employees). To compete with other unions for the right to represent workers.

HR's Role in Preventing or Mitigating the Effects of Work Actions

Training managers to identify and report signs of union strike campaigns and employee/union unfair labor practices. Organizing and training managers to take the place of workers. Identifying and arranging for contingent workers if using replacement workers is legal. Educating managers and supervisors about what they can and cannot do, thus helping avoid unfair labor practices. When a strike occurs, HR must implement contingency plans, deliver training, and arrange payment to replacement workers. If and when employees return to work, HR monitors the atmosphere in the workplace and intervenes to help resolve lingering conflicts associated with the strike.

Constructive Discipline Process

Verbal counseling, problem-solving, and open dialogue. First formal warning Second warning Final warning Discharge or termination

"Adaptation" labor strategy

When a workplace is already unionized, the employer can define the type of relationship they want with third-party representatives: confrontational or collaborative.

HR's Relationship with Works Councils

Whether a works council is mandated by statute and, if so, under what circumstances. The procedures for forming a works council. The scope of the employer's obligations with respect to works councils (e.g., the types of issues about which a works council must be consulted, whether agreement is required, and the timing of such consultation in relation to planned implementation). Works councils can be ways to develop options, to gather reactions from employee representatives to plans, and to use their input to adjust solutions and evaluate outcomes. HR professionals can work toward establishing collaborative and trusting relationships with works councils that may be needed in the future.

Work council structure

Works councils are distinguished by their composition, which can include: Both management and worker representatives. Only worker representatives who are overseen by a member of management. Only worker representatives with no management oversight.

Works councils

Works councils are permanent bodies composed of workforce members that represent employees, generally on a local or organizational level. Their primary purpose is information and consultation—to receive from employers and to convey to employees information that might affect the workforce and the health of the enterprise. Works councils are not involved in contract negotiation, which is conducted by unions. The closeness of the relationship between a works council and a related union can vary by country. Unions may support the election of certain members to councils.

Codetermination

a form of corporate governance that requires a two-tiered corporate board structure—a typical management board and a supervisory board—that allows management and employees to participate in strategic decision making. Codetermination rights can be extensive and provide a means for employees to influence managerial decisions.

Constructive discipline (also called progressive discipline)

a form of corrective action that implements increasingly severe penalties. It may involve punishment, but the punishment is intended to shape behavior rather than to inflict economic, psychological, or social pain. Positive punishment or an added requirement—e.g., an employee may be required to complete a performance improvement plan or attend counseling for anger management. Negative punishment or the removal of a valued stimulus—e.g., withholding a promotion or training opportunity, imposing a suspension without pay. extinction—eliminating a behavior by never rewarding it. In a workplace, ignoring a behavior is not a recommended solution to changing problematic conduct. It exposes an organization to significant ethical and legal risks.

labor union (or trade union)

a group of workers who coordinate their activities to achieve common goals (e.g., better wages, hours, or working conditions; job security; training) in their relationship with an employer or group of employers. Members elect representatives to interact with management. In some countries, trade unions may include managers and professionals as well as skilled and unskilled workers.

unfair labor practice (ULP)

a violation of employee rights as defined in a country's labor statutes. In general, these rights relate to the core principles of the ILO on the right to organize and bargain collectively. ULPs can be committed by employers and unions, and they can occur without the presence of a union. For example, interfering with an employee's speech about organizing is an employer ULP that occurs without the presence of a union. Charges of unfair labor practices are commonly heard by labor boards, commissions, or tribunals.f

whistleblowing

employees may not be disciplined for refusing to work under unsafe conditions or for reporting these conditions Whistleblowing may be seen as disloyalty meriting discharge in some cultures, but in some countries whistleblowers are protected against dismissal that is directly related to the whistleblowing activity.

Employment at will (HR must be familiar with local legal status)

employers have the right at any time, with or without prior notice, to hire, fire, demote, or promote whomever they choose for no reason or any reason. Similarly, employees have the right to quit a job at any time for any reason, with or without prior notice. The concept of employment at-will is usually reinforced in employee handbooks and is included in other employment documents such as offer and acceptance letters as well as performance management documents. This includes documents related to disciplinary matters.

Confrontational "adaptation" labor strategy

involving difficult contract bargaining, contention over administration of agreements, and, if legally possible, seeking to oust or replace the union—offers an employer the possibility of greater control over labor decisions. It also means, however, investment of time and resources in implementing the strategy and increased risk of operational disruptions.

Collaborative "adaptation" labor strategy

some organizations have found that unions and works councils help organize their relationship with employees, especially with large and complex bodies of employees. By collaborating with and involving unions, employers may also lower employees' resistance to necessary changes and implement change initiatives more easily. A union structure may also provide an acceptable way to resolve grievances and conflicts.

Intellectual property

the ownership of innovation by an individual or business enterprise. In an enterprise, IP is the product of employee creativity and enterprise resources. It can represent a considerable part of the value of a commercial enterprise, particularly in technology and communication companies. IP includes patented, trademarked, or copyrighted property, such as inventions and processes, graphical images and logos, names, indications of geographic origin, architectural designs, and literary and artistic works. "Although they have the right to protect their assets and secure work for which they have paid, employers should be aware that these rights may—depending on applicable law—conflict with employees' rights to privacy and freedom of expression."

collective bargaining

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