Employee and Labor Relations

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.

UN Global Compact

Adopted by the UN General Assembly in 2000, the UN Global Compact is 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, the environment, and anticorruption. The Compact's framework is built around ten principles, three of which relate to environmental initiatives. The remaining seven have direct relevance to HR. They direct businesses to: -Support and respect the protection of internationally proclaimed human rights. -Make sure that they are not complicit in human rights abuses. -Uphold the freedom of association and the effective recognition of the right to collective bargaining. -Uphold the elimination of all forms of forced and compulsory labor. -Uphold the effective abolition of child labor. -Uphold the elimination of discrimination in respect of employment and occupation. -Work against corruption in all its forms, including extortion and bribery.

Supporting Employees in Resolving Their Own Conflicts

Workplace conflicts are generally managed in a direct, one-on-one manner or with the use of a neutral third party acting as intermediary or judge. One-on-One Resolution: This technique focuses on training employees to resolve their own conflicts and managers/supervisors to listen and focus on problem solving. To use the technique, employees must be trained in certain necessary skills: -Behaving professionally -Being self-aware -Managing one's own emotions -Preparing for the conversation -Approaching the other person in a noncombative, effective manner -Listening -Problem solving -Following up on resolutions -Employee assistance programs may also provide support in some solutions to conflict—through, for example, anger or stress management programs or cultural transition programs.

Works Councils Structures

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. The number of works council members generally varies with the number of local employees. These positions are filled through an election process, and worker representatives typically are afforded significant employment protections. Employers generally must advise works councils of proposed management decisions, actively seek their input, and carefully consider their views before taking any action.

Terminating Employment for Discipline Reasons

-Never summarily discharge. It is prudent for an employer to never terminate on the spot even if the employee has seemingly made a dischargeable offense. First complete a thorough and objective investigation. Depending upon the seriousness of the investigation, the employee may be "suspended subject to discharge pending further investigation." -Make sure your investigation is thorough, complete, and well documented. The employee's supervisor and department manager and/or human resources staff are normally involved. Collect evidence on both sides. -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, be conducted deliberately but with dispatch, and the results communicated to the employee as soon as possible. -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. Make sure that recommendations are consistent with previous similar situations. -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. Supervisors should consult with HR about any potential termination. It is advisable that the supervisor's manager approve the termination. -Be alert to possible reactions. Plan for possible employee reactions, such as violence, vandalism, or theft.

Handling Grievances

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. The employee grievance process involves several steps. Although the process may vary somewhat from contract to contract and from country to country, the following represents the general steps. -Immediate supervisor. Employees who feel mistreated or think 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. If the union representative agrees that no valid grievance has occurred, the process ends. -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. In some organizations, the complaint can go only as high as the local manager; in others, it can go all the way to top organizational officials. If the grievance is not resolved within the time period set under the union contract, it usually moves to the final stage. -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.

Providing Due Process

A disciplinary action is intended to protect the organization's resources from risks posed by an employee's actions—which can be lost productivity, low quality of products or services, higher equipment costs, and negative impacts on other employees—but to do so in a way that provides due process to the employee being disciplined. Providing due process is an issue of justice and consistency (and is therefore affected by the organization's culture), but it may also be a legal issue. Failure to provide due process in any termination that does not involve a summary offense can be used in legal complaints by employees who charge that they have been unjustly terminated. Tests of Due Process in Disciplining Employees -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.

Labor or Trade Unions

A labor or trade union is 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.

Labor Relations Strategies

Acceptance: 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. Avoidance: 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. An organization seeking to avoid unionization can decrease the appeal of unions and/or remain vigilant and active in resisting unionization efforts. Adaptation: When a workplace is already unionized, the employer can define the type of relationship they want with third-party representatives: confrontational or collaborative. A confrontational relationship—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. With a collaborative union relationship, 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. A more collaborative labor-management relationship is generally characterized by: -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.

Multicultural Aspects of Conflicts

Across cultures, employees value transparency and fairness in conflict resolution. Cultures differ in their appetites and tolerances for conflict. Members of some cultures try to avoid direct conflict, while others feel comfortable with it and use it as a tool to resolve disagreements. In cultures with high power distance, employees may be reluctant to express disagreement. It takes skill to recognize when these differences are interfering with identifying and resolving conflicts in a mutually satisfying way. Cultural differences also affect the way in which the existence of conflict is acknowledged and then resolved. Resolution of a conflict in some cultures must be done privately, to save the disputants' dignity or "face."

Employee Relationship (ER) Strategy

An organization's employee relations (ER) strategy should include: -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. -Strategic goals, for example: a. Develop a constructive and compliant relationship with labor organizations in the workplace. b. Implement communication plans that enable timely sharing of critical information or facilitate early resolution of ER issues. -Strategic initiatives (a set of action plans to achieve the organization's goals), for example: a. Implementing an audit program to make management's actions more transparent and to increase responsibility for decisions. b. Assembling a joint management-employee task force to define vehicles and events to improve communication between leadership and employees.

Unfair Labor Practices (ULPs)

An unfair labor practice (ULP) is a violation of employee rights as defined in a country's labor statutes. These violations can be committed by employers and unions, and they can occur without the presence of a union. Charges of unfair labor practices are commonly heard by labor boards, commissions, or tribunals. Employers can be fined or ordered to negotiate, refrain from the practices in question, or make public admission of wrongful actions. Unions may be ordered to desist from committing the action.

Managing Conflicts with and between Employees

Certain types and levels of conflict, however, do not strengthen an organization. Conflicts driven by differences in personalities can weaken cohesiveness in working groups, damage trust, and distract employees and their managers. Ignored conflicts with subordinates can weaken a manager's or supervisor's authority and ability to lead. When serious conflicts between employees are ignored by managers, this can be seen as employer negligence and can lead to workplace harassment. Conflict managed unfairly can lead to employee complaints and possibly litigation. Many of these situations eventually arrive in HR, and HR professionals are expected to assist in resolving these conflicts by using their various competencies and the tools of conflict resolution. A common approach to conflict management includes: -Listening -Agreeing on goals. -Focusing on issues and facts rather than personalities. -Considering all perspectives. -Exploring alternatives together. -Reaching agreement on next steps.

Collective Bargaining

Collective bargaining is the process by which management and union representatives negotiate the employment conditions for a particular bargaining unit. Bargaining may follow the recognition of a union's right to represent a work unit, or it may be triggered by the expiration of an existing contract. Bargaining covers items such as wages, benefits, and working conditions and may include other matters deemed important by the members. The combined factors influencing collective bargaining may be generally categorized as: -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. Figure 3 visualizes how these various factors impact the collective bargaining process. Collective bargaining subjects refer to topics that will be addressed in the contract. National labor laws specify which topics are mandatory, discretionary, or specifically prohibited.

Governments and Other Groups

Complicating the employment relationship further is the potential presence of groups beyond the employer and employees' elected representatives. For example, there may be: -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. -National governments and agencies. To a certain extent, national governments are always a part of the labor relationship in that they legislate and regulate aspects of the employee relationship and the employers' relationship with unions and works councils. Tripartism—a collaboration of governments, employers, and unions—is the norm in many countries. Particularly during economic crises, governments may step in to protect employees' social welfare, taking steps to increase hiring, encourage employers to provide some levels of employment during retrenchments, or invest in skills development. -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. In the Philippines, the national government includes such groups as social partners in its efforts to address employment levels. These organizations may also provide representatives to national-level task forces and arbitration groups on employee relations issues.

Domain Box #1

Contracts with international assignees and global employees should specify which country's laws will apply to the contract and what jurisdiction will be applied in the event of litigation.

Disciplining Employees

Disciplinary action may target violations of the organization's values (examples include sexual harassment, discrimination, or threatening behavior) but also violations of local norms and practices that threaten the harmony of the workplace. The word "discipline" comes from the word "disciple" or "to teach." The emphasis in discipline, therefore, should be corrective rather than punitive—focused on changing behavior rather than simply punishing it. However, employees must be clear about how they have failed to conform to the rules, why the rules are meaningful, what behavior will be expected in the future, and what consequences will occur if they repeat the behavior. Disciplinary systems in global organizations must produce prompt, focused, and consistent discipline that is delivered in a manner that is legally compliant and culturally sensitive. It is a good business practice for an employer to do the following: -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.

Employer Rights Under the Law

Employers are allowed to direct the work of employees and conduct their organizations as long as they comply with relevant laws and contracts (individual or group). They have the right to protect the organization's assets from damage (e.g., from theft or loss of reputation), and they have the right to benefit from work performed by employees, unless contracts define other arrangements. Intellectual property (IP) is 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. IP also includes trade secrets and proprietary or confidential information that are not specifically protected under patent, trademark, and copyright law. This type of IP could include statements of strategy, secret recipes, lists of customers or prices, employee work product, and financial information.

Employment Contracts

Employment contracts are the norm in many countries, although their forms and requirements may vary. Some countries penalize employers for not providing written contracts within a certain length of time; others accept a paycheck stub as recognition of employment. In some cases, depending on applicable law, the absence of a written contract may give rise to an implied contract. It is often to the employer's benefit to avoid implied contracts since they may include more generous dismissal compensation. Employments contracts must be formally amended. An employer seeking to change employment terms for workers after a purchase or merger may be restricted by acquired rights laws—unless the employer can prove economic hardship. In the U.S., unlike other countries, most employees work on an at-will basis. Employment at-will derives from common law (derived from historical judgments) rather than statutory law (enacted by elected bodies). The principle of employment at-will (EAW) means that 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.

Codetermination

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. Codetermination topics include anything that affects workers, such as changes in structure, working conditions, employee relations, working hours, occupational safety and health, HR policies and practices, and compensation. There are 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).

Conducting Investigations

HR may be responsible for conducting investigations of employee complaints that may result in discipline or discharge, or HR may be responsible for making sure that investigations are fair, thorough, and culturally appropriate. To conduct effective investigations, HR professionals should consider the steps: Step 1: Ensure confidentiality. The employer should explain to those involved in the complaint that all information will be kept confidential to the extent possible in an investigation. Step 2: Provide protection. Provide interim protection against continued harassment or retaliation. This may require voluntary changes of schedule, leaves, or transfers. Step 3: Select the investigator. This individual should be able to work objectively and should have experience in investigation and knowledge of the law in this area. The investigator should communicate well, be observant and discreet, and pay attention to details. Investigators may be internal or external to the organization. A team with diverse skills and background may be used if their activities are well coordinated. Step 4: Create a plan. Develop a plan for gathering evidence and conducting interviews. Step 5: Develop interview questions. Questions should be designed to encourage communication and focus on critical points. Step 6: Conduct interviews. The investigator should never offer opinions and should maintain objectivity. Observations should be recorded. Follow-up questions will be important in gathering evidence. Step 7: Make a decision. After a thorough gathering of evidence, the investigator recommends action based on the evidence and the organization's policies and processes. Step 8: Close the investigation. Communicate the decision to the complainant and the accused. Make sure that the complainant feels comfortable about returning to work. Take necessary steps, which may include correcting the behavior and making sure that it does not recur, providing damages to the complainant if appropriate, and changing policies and training as needed to prevent recurrence. Step 9: Develop written summary of investigation results. The report should document both what investigatory actions were taken and what information was collected. Relevant policies should be cited. Conclusions should be described as well as employer actions taken as a result of the investigation.

HR's role in discipline

HR must ensure that policies on discipline are legally compliant, defensible, and culturally sensitive. In addition, HR professionals can take steps to ensure that employees understand work rules and expectations and that managers and supervisors are properly trained to deliver discipline in a manner that is organizationally and individually effective. To fulfill this responsibility, HR can: -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 other 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 global policy and local practices.

Know Your Union

Identify six characteristics that HR professionals should try to identify in labor groups with whom their organizations interact: -Level at which bargaining occurs. Is the employer bargaining individually or as part of an industry association? Is the union representing an enterprise or an entire industry? -Focus of bargaining topics. What is considered a fair topic for labor negotiations? In some countries bargaining will be restricted to wages and benefits, while bargaining in other countries will focus on broader social issues. -Union penetration or density. These terms refer to the percentage of workers that belong to a union. -Membership. Is membership in a union compulsory? Do employees join a union as individual members, as in a trade union for skilled workers? Or is membership aligned with employment by a specific organization? -Relationship with management. Is the relationship historically stormy or more cooperative? -Role government will play. How likely is the government to become involved in the labor relationship? What may trigger its intervention? What concerns will it bring to the table?

Steps in Constructive Discipline

In an environment that does not legally stipulate a set procedure for discipline, the typical sequence of constructive disciplinary actions is as follows: Step 1: Problem-solving session and open dialogue. The mildest type of disciplinary action can increase understanding among everyone involved, reduce workplace tension, and open up communication. It is advisable to have the discussion as soon as possible after becoming aware of the problem. The goal is to resolve the problem before it worsens. Step 2: First formal warning. An official, formal warning should first be made—orally or in writing, according to local business practices and legal requirements. Managers should set clear expectations for the employee's behavior. Discussions should be held in private. A public reprimand, especially in certain cultures, embarrasses the employee and his or her coworkers. The manager often loses the trust and respect of all who observe the public reprimand. Managers need to be specific about the performance issue and what needs to be done to correct it. Step 3: Second warning. If the employee fails to correct the problematic behavior or commits another infraction, another warning may be issued. This is optional; some systems do not include a second warning. If the first warning was oral, the second warning may be in writing to document the disciplinary process. Both the problem and the needed correction should be described in specific, objective terms. The tone should be professional. If warranted, an employee may be put on probation. A copy of this written warning with the employee's signature should be kept in the personnel files. Step 4: Final warning. The final written warning should include a deadline for improvement and time off, if warranted. Disciplinary time off or suspension may be with or without pay. (Note that local law and collective bargaining agreements may restrict employers' disciplinary options.) This final written warning should clearly state that continuation of the documented issue(s) will lead to termination. The employee should sign a form acknowledging that she or he has read and understands the terms of the written warning (even if she or he does not agree with them). Step 5: Discharge or termination. Discharge is the last resort, used for repeated occurrences or severe violations.

Agency Complaints and Litigation

In some cases, employee and union complaints may be made to governmental or statutory agencies, and internal resolution will no longer be an option for the organization. The external body will study the evidence presented and render binding legal decisions. This possible course of action underscores the need for robust internal conflict reporting and resolution systems that offer an alternative to external resolutions. Depending on the organization and other legal or cultural factors, HR's role in responding to complaints and litigation may be more active or passive. HR may play a lead role in resolving issues such as representing the company in mediation or grievances, or they may influence or decide resolution strategies and settlement activities. Alternatively, HR may be asked to play a more passive role—for example, by providing records and access to witnesses.

Implementing International Framework Agreements

International framework agreements (IFAs) are negotiated between unions, global union federations (GUFs), and multinational enterprises. The enterprises commit to core labor standards, and the GUFs (examples include the International Textile, Garment and Leather Workers' Federation and the Transport Workers' Federation) can help maintain the agreement by negotiating proactively or calling public attention to a violation—an obviously undesirable form of publicity for a multinational enterprise.

Global ER Strategies

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). Most global organizations will craft a global HR strategy for workforce relationships that falls somewhere between these two positions. The seven options are: -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.

Increasing Formal Internationalization of Unions

Major international unions and labor associations include the following: -The World Federation of Trade Unions (WFTU) was previously composed of unions from Communist countries but now focuses on unionization in developing countries. The WFTU holds a consultative status with the OECD. -The International Trade Union Confederation (ITUC) is the world's largest union federation. It focuses on promoting international cooperation among trade unions and global campaigning and advocacy within global institutions. -The UNI Global Union was founded in 2000 to represent service-sector employees around the world. It includes 900 affiliated unions located in 150 countries. It has negotiated directly with global employers to secure workers' rights in Africa, the Americas, Asia-Pacific, and Europe.

Works Councils

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. Works councils evolved primarily in Germany during the 20th century. The councils were intended to cooperate with management to increase efficiency, promote harmony in the workplace, provide a means of addressing grievances, supervise compensation, promote safety and health, and help administer welfare programs. They have become a common feature of the European workplace, institutionalized by local regulations that require employers of certain sizes to establish councils. Other countries have works councils as well, including Argentina, Bangladesh, Japan, Thailand, and South Africa. *There are no works councils in the U.S. because they are seen as violations of section 8(a)(2) of the National Labor Relations Act, which prohibits company-dominated unions. When carefully managed, employee participation programs can be used to increase involvement of employees in the organization's operations—for example, handling grievances or recommending safety policies.*

Forming Networks and Alliances

The ILO has expressed interest in promoting organizing efforts directed along the supply chain rather than in discrete locations.

Labor Relations

Refers to the way organizations manage their relationships with employees as a collective group rather than individually. Frequently this relationship involves third parties employee representatives (e.g., labor/trade unions, works councils, and professional associations) and institutions that interject themselves into the employer-employee relationship (e.g., government ministries that monitor compliance with labor laws or international organizations that define labor standards). HR is directly involved in developing and implementing the organization's labor strategy and in making sure that managers and supervisors are aware of that strategy.

Workplace Retaliation

Retaliation in the workplace may be defined as 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. Good follow-through in managing conflicts and complaints involves taking steps to prevent or reduce the likelihood of a retaliation charge or lawsuit. To prevent retaliation, employers should take the following 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. It should make clear that the organization will not tolerate retaliatory conduct, including such conduct based on an employee's opposition to job discrimination or harassment or participation in discrimination complaint proceedings. -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. Managers should be trained on acceptable and unacceptable responses to protected activity under the antidiscrimination laws. -Remind supervisors of the organization's policy. Make sure that supervisors who are accused of discrimination 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 complain of discrimination or other unlawful behavior or who provide information related to a discrimination complaint. -Monitor the treatment of employees. Monitor the treatment of employees who have made complaints or provided information related to complaints to ensure that they are not subjected to retaliation. Carefully scrutinize any proposed adverse action against a discrimination complainant or witness to ensure that it is based on a legitimate and not retaliatory reason. -Investigate allegations and take corrective action if necessary. Investigate allegations of retaliation and take prompt corrective action when retaliation occurs. Retaliation should be stopped even if it is not significant enough to violate federal or local law to prevent it from escalating to those levels.

International Labour Organization

Standards issued by the International Labour Organization (ILO) capture key issues related to employee rights. They are accepted as standards by other international groups such as the World Trade Organization and have provided models for national labor statutes. The ILO is a specialized agency of the United Nations headquartered in Geneva. The ILO has identified eight core labor standards: -"Freedom of Association and Protection of the Right to Organize" (1948), prohibiting interference from public authorities and the requirement of authorization by employers -"Right to Organize and Collective Bargaining" (1949), protecting workers from retaliation and obligating employers to negotiate with unions -"Forced Labor" (1930), prohibiting forced and compulsory labor, except for military service, prison, and emergencies (e.g., war, natural disaster) -"Abolition of Forced Labor" (1959), prohibiting forced labor as a means of political coercion or punishment, retaliation for strikes, workforce mobilization, labor discipline, and discrimination -"Minimum Age" (1973), 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" (1999), prohibiting any work likely to be harmful to the health, safety, and morals of children -"Equal Remuneration" (1951), requiring equal pay and benefits for men and women -"Discrimination" (1958), prohibiting discrimination in hiring, training, and working conditions and requiring employers to promote equality of opportunity and treatment

International Labor Standards

Standards reflect a consensus about the rights of the employee and the responsibilities of the employer. Meeting these standards is a concern for all employers but a special challenge for global employers or businesses with global supply chains.

Preventive Measures

The goal in disciplining employees is to avoid having to discipline employees in the first place. It makes more sense to shape behavior in the desired manner from the beginning and thus minimize the need for disciplinary action. The organization can take preventive measures such as the following: -Review codes of conduct before implementing them. HR may be able to identify obstacles to compliance and adjust the work environment or the code/expectations in a proactive manner. This is especially important when applying a headquarters code to global operations . -Set clear expectations. Employees and managers need to have the same expectations. Job descriptions need to contain enough detail so that the employee knows what he or she is supposed to do and the level at which he or she needs to perform. -Behave consistently. Actions and decisions should be based on policies, procedures, and work rules. These may be written or expressed in other ways—for example, through management example or training. Managers and supervisors can review records of similar situations in the past. -Establish a climate of communication. Establishing and supporting an ongoing climate of two-way communication between employee and supervisor is critical. Sometimes communication can lead to solutions. For example, a manager may learn that a repeatedly tardy employee has unusually heavy family obligations. -Maintain an open-door policy. Bottom-to-top communication can be further enhanced through an open-door policy. Again, managers should be aware that cultural differences will affect the degree to which employees seek communication with superiors.

World Trade Organization

The mission of the World Trade Organization (WTO) is to open trade opportunities and to facilitate resolution of trade disputes. Its work is issued in the form of negotiated agreements. The WTO looks to the ILO as the competent body to negotiate labor standards with member countries. However, the organization's members do commit to four core standards: freedom of association, no forced labor, no child labor, and no discrimination at work.

Contract Negotiations

The negotiating process is designed to balance the rights and interests of employees, the union, and management through a two-way flow of communication. The goal of contract negotiations is to arrive at a workable contract that is mutually acceptable to both the union and the organization. Both parties have a responsibility to establish a contract that will contribute to an ongoing constructive relationship that fosters effective resolution of issues. The first contract is generally the most difficult to negotiate, as the parties work together to develop the collective bargaining agreement. In subsequent years, they revise and build upon the contract, attempting to clarify ambiguous issues and address new issues of interest to the parties. If the sides cannot agree, outside mediation and arbitration may be used. -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. Although HR professionals may not be directly involved in contract negotiations, they play a valuable role in improving the quality of the contract based on their experience and metrics.

Organisation for Economic Co-operation and Development

The objective of the Organisation for Economic Co-operation and Development (OECD) is to help both member and nonmember countries address globalization issues by researching and promoting changes in environmental, social, and economic policy. It issues the "Guidelines for Multinational Enterprises"; Guideline V focuses on "Employment and Industrial Relations." Recommended changes must be made within the framework of local laws (referred to as the "chapeau statement or agreement").

Communicating the ER Strategy

The organization must communicate the ER strategy to employees, and management must commit to the values implied in the strategy. -Developing Workplace Policies: 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. Policies provide a basis for HR management practices and a framework within which these practices are established. -Employee Handbooks and Codes of Conduct: a. Make sure the handbook reflects your organization. b. Align your handbook with local laws and regulations. c. Focus on policy and policy-related procedures. Avoid job-related procedures or rules. d. Include procedures for reporting and/or resolving policy and work rule violations. e. Be realistic in expectations. Policy should be consistently enforced, and consistent enforcement is difficult when policies are overly restrictive and/or culturally misaligned. -Involving Managers and Supervisors: a. Managers and supervisors must understand the organizational ER strategy and how that strategy is aligned with specific management practices. In a workplace with organized labor groups, managers and supervisors should be able to explain the organization's labor strategy and posture. They should understand contract terms and procedures completely. b. The Employment Relationship The characteristics of the employment relationship are influenced by a country's economic history and conditions, culture and institutions, industrial practices, and individual employer values. HR's task is to navigate through those influences and help shape a relationship with employees that contributes to the organization's success and complies with ethical standards, local laws, and cultural norms.

Constructive Discipline

The type and severity of disciplinary action depend on the type and frequency of the offense. Some actions merit immediate dismissal. Constructive discipline (also called progressive discipline) is a form of corrective discipline that implements increasingly severe penalties each time an employee is disciplined for any of the following during a defined period, such as a rolling calendar year: -The same work rule violation -A similar work rule violation -A serious work rule violation -A series of frequent but dissimilar work rule violations In Employee Engagement and Retention in the People module, we noted that the theory of rewarding desired behavior reflected the reinforcement theories of B. F. Skinner. Constructive discipline employs the punishment side of the behaviorist theory. An employer can provide: -Positive punishment or an added requirement—e.g., an employee may be required to complete counseling for anger management. -Negative punishment or the removal of a valued stimulus—e.g., withholding a promotion or training opportunity as a consequence of tardiness. There is another Skinnerian technique called 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.

Third-Party Resolution Techniques

Third-Party Resolution: Third-party resolution, also referred to as 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. Forms of ADR: -Open-door policy: Encourages employees to meet with an immediate supervisor or manager to discuss workplace problems; in some environments, it allows employees to approach anyone in the chain of command. An open-door policy might be seen as preemptive or preventive ADR. -Ombudsperson: Designates a neutral third party (from either inside or outside the organization) to investigate employee complaints confidentially and help mediate disputes. The ombudsperson may draw an opinion and may bring the dispute before management but is usually not empowered to settle grievances. The ombudsperson may advance unresolved disputes to other forms of ADR. -Single designated officer: Identifies a specific individual chosen by senior management to conduct investigations and dispute resolution. The credibility of this individual may depend on the credibility of management. -Chosen officer: Permits an employee to select an arbitrator from a group of individuals. This allows employees to feel some control over their futures. -Peer review: Establishes a panel of employees (or employees and managers) trained to work together to hear and resolve employee complaints. The panel may be led by an HR professional. It may not change organization policy but sometimes may recommend changes to policy. Peer review is sometimes limited to suspensions and discharges. -Mediation*: Uses a neutral third person trained in mediation techniques to help both sides assess the strengths and weaknesses of their positions. The goal is to negotiate a mutually acceptable, voluntary settlement. The mediator acts more as a facilitator of agreement than as a judge making a decision. A settlement cannot be imposed on either side. -Arbitration*: Submits disputes to one or more impartial persons who listen to both sides and make a final determination. Arbitration may be binding (parties agree to be bound by the arbitrator's decision) or nonbinding (parties may seek other means of resolution, including litigation). *Some employers require that employees agree in writing to using mediation or arbitration as a condition of employment, before the need for ADR arises.* **HR practitioners should remember that methods of dispute resolution (such as formal grievance procedures) may be defined in collective bargaining agreements. In these cases, HR, managers, and supervisors must apply the grievance process as it is defined in the labor contract.**

Pressing for National and International Compliance

Trade unions are working with national and international bodies to implement the ILO's core labor standards and enforce compliance. The World Bank now requires borrowers to commit to the ILO's core labor standards.

Labor/Trade Union Trends

Unions have responded thus far to globalization by: -Increasing formal internationalization of unions. -Pressing for national and international compliance with labor standards. -Implementing international framework agreements. -Forming networks and alliances.

Types of Unions

Unions vary in structure. They may represent: -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. Large or global employers may interact with all types of unions. Their workforces may be represented by multiple trade unions; they may bargain with national or industry unions.

Industrial Actions

from British usage, includes various forms of collective employee actions (or "concerted activities," in U.S. parlance) taken to protest work conditions or employer actions. Industrial actions intend to interfere with an employer's ability to fulfill its commercial interests. Actions can be undertaken by unions (or labor groups in the absence of a recognized union) for a number of reasons. Examples of 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 action or 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. -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. *An employer may also voluntarily stop work at an operation through a lockout. A lockout occurs when an employer shuts down operations to prevent employees from working.*