Labor Relations - (Chp 6, 7, 8, & 9)

Nonmandatory subject

(voluntary or permissive) Those for which an employer or labor organization may choose to bargain, but are not required to do so.

Mutual gain bargaining

(win-win bargaining) Both parties will give a little and take a little. Focuses not only on their own needs but the other parties needs. Looks for ways to increase resources so everyone wins.

Mediation-Arbitration (Med-Arb)

A mediator serves to facilitate the bargaining process and is also empowered to act as an arbitrator to settle the dispute.

Interest-based bargaining

A negotiation strategy in which parties collaborate to find a "win-win" solution to their dispute. This strategy focuses on developing mutually beneficial agreements based on the interests of the disputants.

Successor employer

A new employer that continues its predecessor's business in substantially unchanged form and hires employees of the predecessor as a majority of its workforce.

Scanlon plan

A plan developed by former union leader; bonus payments where based on computed ratio of total labor cost and total production values saved.

Pattern bargaining

A situation where union or management negotiators informally attempt to extend a negotiated settlement from one group to another.

Job evaluation

A systematic process for defining the relative worth of a job.

Cash balance pension plan

A tax-deferred employee account to which the employee and employer contribute. Employees have the option of receiving an annuity payment or a lump-sum payment. Union prefer defined contribution plans.

Cliff vesting

After 3 years of service, employee is considered fully vested.

Collective bargaining

An activity whereby union and management officials attempt to resolve conflicts of interest by exchanging commitments in a manner intended to sustain their continuing relationship.

Defined contribution plan

An employer contributes a specific amount each month to the retirement account of each employee. Payout is based on the financial performance of the invested contributions.

Consumer price index

An index that measures the monthly change in the prices of goods and services for a typical household.

Rucker plan

Based on a change in the ratio between labor cost and dollar value added.

Improshare plan

Based on a hour meter and if it falls below that labor hour meter bonuses are awarded.

Bargaining range

Both parties usually enter negotiations with a range of acceptable positions that give them some room for maneuvering.

Illegal bargaining subjects

Cannot negotiate to be discriminatory

Gain-sharing plans

Company pays a certain team or group inside the company.

Profit-sharing plans

Company profits are shared back with the employees.

Management's rights

Concept that the managers have a right to run the business and make decision to affect the profitability of the company.

Productivity

Conceptually, workers' wages should vary with changes in their productivity. Productivity increases can occur for reasons unrelated to workers increasing their efficiency.

Wage surveys

Conducted to ensure that external labor market considerations, such as comparable wages, are included in the wage structure. Such a market-based approach has become an increasingly important determinant of wage rates in many firms.

Two-tier pay plan

Contract language that specifies a newly hired employee will be paid less than other employees performing a similar job.

Outsourcing

Contracting work that the employer does not do to an outside vendor to reduce costs.

Subcontracting

Contracting work to an outside vendor when the employer cannot do all or part of the work or when the vendor can do the work at a lower cost.

Handbilling

Display of a banner to communicate the existence of a labor dispute and seek public support.

Jurisdictional strike

Dispute between two or more unions over the assignment of work.

Lump sum pay adjustments

Does not become part of regular compensation.

Unfair labor strike

Due to employer's ULP, strikers cannot be permanently replaced.

Economic strike

During negotiation of the labor management contract, strikers can be temporarily or permanently replaced.

Good faith bargaining

Each party must demonstrate a sincere and honest intent to reach a labor agreement and be reasonable in their bargaining positions, tactics, and activities.

Graded vesting

Employees are vested in stages over a period of time.

Employee stock ownership plan

Employees hold stock in their company. Company stock provide the basis for employee retirement benefits. The value of the stock can have a dramatic effect on the retirement prospects of employees.

Secondary employer

Employer with no direct authority to resolve the labor dispute.

Primary employer

Employer with whom the striking employees have a dispute and the employer that has the ability to end the dispute by agreeing to the proposed settlement terms.

Lockout

Employers version of the strike

General Electric doctrine

Establishes the conditions under which a primary employer could lawfully establish a gate on the primary employer's property reserved for the exclusive use of a neutral, secondary employer hired to perform some work for the primary employer during a labor dispute.

Roll-up factor

Estimate of the total cents-per-hour costs of employer benefit items affected by a change in the straight-time hourly wage rate as a proportion of the current average hourly bargaining unit wage rate.

Production standards (a.k.a. performance)

Expected employee output that is consistent with quality, efficiency, and working capacities for normal operators.

Featherbedding

Extreme cases of job protection on saying employees can only do so much so it can spread the load out to as many employees as possible.

Shift differentials

Hourly premium paid for working undesirable shifts.

Lock-in agreement

Illegal, prohibits any union-represented bargaining unit from reaching final contract settlement until all unions who bargain contracts the same employer are willing to settle.

Work sharing

In order to avoid a layoff, the parties agree to a less than 40 hour work week

Centralized bargaining

Industry wide bargaining, all the major employers in a given industry negotiate one contract with one union.

Wage spread

Internal distribution of the proposed or negotiated wage increased wage to the bargaining unit employees.

Mediation

Intervention in a dispute in order to resolve it; not legally binding; mediators may be asked to leave at the request of one or both parties.

Whip-saw bargaining

Involves negotiating team attempting to extract large, similar, concessions from multiple opponents; done by sharing info across negotiating teams on the same side as multiple negotiations proceed.

Automation

Machines and automatic controls displace humans who formerly did the same work. Alter the job characteristics and required skills.

Reporting pay

Minimum guaranteed pay when employee is sent home due to no available work on a workday.

Multi-employer bargaining

More than one employer in a geographic region combining together to negotiate a single contact covering employees at each of the participating employers firms who are typically represented by the same union.

Work relocation

Moving work to another facility or location.

Intraorganizational bargaining

Negotiations that occur within each bargaining party as negotiators attempt to achieve consensus within their respective parties.

Common situs picketing

Occurs at a location where a primary employer and one or more neutral, secondary employers are engaged in normal business operations at the same site.

Merged product doctrine

Occurs if the product of the primary employer being struck and a neutral, secondary employer are so intertwined that it would be impossible for a consumer to boycott the primary employer's product without inducing a near total boycott of the neutral, secondary employer.

Step-rate plan (Flat rate)

One pay grade for all employees in a given classification.

Skill-based pay

Pay scale based on how much an employee knows.

Call-in pay

Payment for working non-scheduled hours.

Supplemental unemployment benefit

Pays an additional amount to an employee during the time when the employee is temporarily unemployed.

Reserve gate doctrine

Permits entrances to the work site to be clearly marked for the exclusive use of either primary employer or neutral, secondary employer and their employees, customers, and suppliers.

Defined benefit plan

Plan pays retired employees a specific amount each month. The employer must invest sufficient funds such that it can pay it obligations to the retired employees.

Resistance point

Point beyond which the other party would prefer no settlement to settlement on the other party's proposed terms.

Boulewarism

Present offer as first and final, refuse to negotiate any terms; Not bargaining in good faith

Coalition bargaining

Process where more than one employer negotiates with the union.

Degree of Labor intensiveness

Proportion of the employer's total operating costs comprising labor costs.

Severance pay

Provides the employee a lump-sum payment at the time of an employee's termination

Interest dispute

Reaching an agreement acceptable to both parties.

Reserved rights doctrine

Refers to a clause in an employment contract that lists management's rights or prerogatives. Such clauses state that the management has full authority over the items listed thereunder unless the contract limits management's rights in a particular area.

Technological change

Refers to changes in the production process that result from the introduction of labor saving machinery and changes in material handling and workflow.

Bargaining Unit

Refers to the employees and employers who will be bound by a negotiated labor agreement.

Business ally

Secondary employer who engages in activity that supports the primary employer during a strike, has a high degree of interdependence with the primary employer, and has commingled assets with the primary employer.

Interest arbitration

Selection of a neutral person or panel to hear the bargaining positions of the parties and make a final and binding decision on what should be included in a newly negotiated agreement.

Coordinated bargaining

Sharing information and goals prior to bargaining, but bargaining independently of other union locals.

Wildcat strike

Strike that occurs in violation of an existing no-strike clause in a labor agreement and often without the approval or prior knowledge of union officials.

National emergency strikes

Strikes that have a substantial adverse impact on national economic or defense interests.

Sympathy strike

Striking in sympathy for another union's dispute with own employer or another employer. Depends on contract language, and on the relationship of union with the employer and the union.

Mandatory subject

Subjects that have a direct effect on bargaining unit member's' wages, hours, or other terms and conditions of employment.

Deskill

Technological advances also permit a reduction in the responsibility or skill level required to perform some jobs. Also makes less job security.

Strike

Temporary work stoppage by a group of employees for the purpose of expressing a grievance or enforcing a demand.

Final offer issue-by-issue arbitration

The arbitrator is restricted to selecting either the union's or employer's final proposal on each separate issue in dispute.

Comparable worth

The concept that different jobs that make comparable contributions to the organization should have the same pay rates.

Final offer total package arbitration

The parties present their settlement terms on all issues and the arbitrator must choose one package to be implemented in its entirety without alteration.

Product picketing

The picketing of neutral secondary employers who sell the primary employer's product or service.

Picketing

To protest at a place of work or other venue

Totality of conduct doctrine

Total conduct of negotiation, used to see if someone is not bargaining in good faith.

Cost-of-living adjustment

Unions demand higher wages to maintain real wage purchasing power when the cost of living rises.

Deferred wage increase

Used in multi-year contracts to provide some adjustment in base wage rates beyond the first contract year. Ex Back-loaded: 1%, 3%, 5%

Fact-finding

Used to gather facts about a labor dispute for the purpose of publishing a public report containing the fact finder's conclusions and often recommended terms of settlement.

Wage comparability

Wage rates are equal or related among comparable bargaining units.

Degree of labor intensiveness

Wages are less important and easier to bargain for when they are a low percentage of total costs.

Distributive bargaining

Win-lose situation. Gains for one party's interests come at the expense of the other party, limited amount of resources.

Boycott

Withdraw from commercial or social relations with (a country, organization, or person) as a punishment or protest.

Standard hour plans

You are paid based on hour rate.

Piece rate plans

You are paid for how many widgets or jobs you get completed.

Vesting

You get not only what you contribute to the pension plan but also what your employer contributes.