CHAPTER ELEVEN LABORMANAGEMENT RELATIONS Text by Profs Gene
CHAPTER ELEVEN LABOR-MANAGEMENT RELATIONS Text by Profs. Gene Boone & David Kurtz Multimedia Presentation by Prof. Milton Pressley The University of New Orleans milton. pressley@uno. edu Copyright © 2003 by South-Western. All Rights Reserved.
LEARNING GOALS • • • Summarize the history of labor unions and list their primary goals Describe the structure of organized labor Identify the major federal laws that affect labor unions and explain the key provisions of each law Explain the process of forming unions, the way they achieve goals through collective bargaining, and the issues typically addressed in union contracts Describe the roles played by mediators and arbitrators in labor negotiations Copyright © 2003 by South-Western. All Rights Reserved.
LEARNING GOALS • Identify the steps in the union grievance • • process Outline the tactics of labor and management in conflicts between them Describe how unions and employers are developing partner relationships Discuss employee-employer relationships in nonunion firms Explain the challenges facing labor and the strategies currently being used to rebuild union membership Copyright © 2003 by South-Western. All Rights Reserved.
CHAPTER OVERVIEW • Explore reasons for the • • emergence of labor unions Look at the history of labor union operations in U. S. Review legislation that affects labor-management relations Discuss the process of collective bargaining Look at the future of labormanagement relations © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
EMERGENCE OF LABOR UNIONS • Craft worker organizations • • operated in Europe and Asia for hundreds of years Nongovernment union membership has declined significantly in recent years in industrialized nations Union membership has grown considerably in some developing nations © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
Need for Labor Unions • Focus on efficiency created • • some hardships for workers Specialization made workers dependent on factories for their livelihoods Working conditions were typically exhausting – even dangerous – for low wages © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
Figure 11. 1 Union and Nonunion Wages and Benefits Copyright © 2003 by South-Western. All Rights Reserved.
History of U. S. Labor Unions • Began before the Declaration of • Independence Early unions were loose-knit, local organizations • Served primarily as friendship • groups or benevolent societies Were typically short-lived • Gradually grew strong enough to get results to their demands © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
History of U. S. Labor Unions • Labor union: • group of workers who have banded together to achieve common goals in the important areas of wages, hours, and working conditions American Federation of Labor (AFL): organization that united individual craft unions under a common affiliation in 1886 • By 1920, three out of four organized workers were AFL members © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
History of U. S. Labor Unions • Congress of Industrial • Organizations (CIO): grouping of industrial unions Union membership peaked during the 1940 s and 1950 s © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
History of U. S. Labor Unions • Union membership as a • percentage of the workforce steadily declined during the second half of the last century except among government employees Two of every five government workers belong to unions © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
Figure 11. 2 The World’s Tallest Roller Coaster: Union-Made at Cedar Point Amusement Park, Sandusky, OH Copyright © 2003 by South-Western. All Rights Reserved.
Figure 11. 3 Percentage of U. S. Workers in Unions, by Industry Copyright © 2003 by South-Western. All Rights Reserved.
LOCAL, NATIONAL, AND INTERNATIONAL UNIONS • National union: • union organization made up of many local unions Local union: organization operating as a branch of a national union, representing union members in a given geographic area © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
LOCAL, NATIONAL, AND INTERNATIONAL UNIONS • International union: • union with members outside of the U. S. Federation: grouping of many national and international unions to serve mediation and political functions © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
LABOR LEGISLATION Figure 11. 4 Federal Labor Laws Copyright © 2003 by South-Western. All Rights Reserved.
Union Security Provisions • Closed shop: • employment policy, illegal in the U. S. , requiring a firm to hire only current union members Union shop: employment policy requiring nonunion workers to join a union that represents a firm’s workers within a specified period after being hired © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
Union Security Provisions • Agency shop: • • employment policy that allowing workers to reject union membership but requiring them to pay fees equal to union dues Open shop: employment policy making union membership and dues voluntary for all workers Right-to-work laws: prohibit union shops and outlaw compulsory union membership © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
Figure 11. 5 States with Right-to-Work Laws Copyright © 2003 by South-Western. All Rights Reserved.
Unfair Union Practices • Taft- Hartly Act outlawed unfair practices like: • Refusal to bargain with employer • Striking without 60 days notice • Most secondary boycotts • Featherbedding (demanding pay for workers who do not work) • Boycott: effort to prevent people from purchasing a firm’s goods or services © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
THE COLLECTIVE BARGAINING PROCESS • Collective bargaining: negotiation between management and union representatives concerning wages and working conditions for an entire group of workers © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
How Employee’s Form a Union • Must conduct an organizing • drive to collect the signatures of at least 30 percent of employees on special authorization cards Union then petitions the National Labor Relations Board (NLRB) for an election © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
Figure 11. 6 Steps in Starting a Union Copyright © 2003 by South-Western. All Rights Reserved.
Bargaining Patterns • Vary for different industries and different occupational categories • Most collective bargaining • involves single-plant, singleemployer agreements A multiplant, single-employer agreement applies to all plant operated by an employer © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
Bargaining Patterns • Coalition bargaining • involves negotiations between a coalition of several unions that represent the employees of one company In industrywide bargaining, a single, national union engages in collective bargaining with several employers in a particular industry © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
Bargaining Zone • Issues covered in a bargaining • agreements include wages, work hours, benefits, union activities and responsibilities, grievance procedures and arbitration, and employee rights and seniority Bargaining zone: range of collective bargaining between conditions that induce a union to strike and those that induce management to close the plant © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
Union Contracts • Typically cover a 2 or 3 year • period Once ratified by the union membership, contract becomes a legally binding agreement that covers all labor-management relations during the period specified © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
Figure 11. 7 Typical Provisions in a Union Contract Copyright © 2003 by South-Western. All Rights Reserved.
Wage Adjustments in Labor Contract • Contracts often provide for wage • adjustments during the life of the contract Cost-of-living-adjustment (COLA) clauses (escalator clauses): designed to protect the real incomes of workers during periods of inflation by increasing wages in proportion to increases in the CPI © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
Wage Adjustments in Labor Contract • Consumer Price Index (CPI): • indicator for the cost of living that tracks the cost of such expenses as housing, clothing, food, and automobiles Givebacks: wage and benefit concessions to help employers remain competitive and continue to provide jobs for union members © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
SETTLING UNION-MANAGEMENT DISPUTES • Mediation: • process which brings in a third party, called a mediator, to make recommendations for settling differences Arbitration: bringing in an impartial third party called an arbitrator to render a binding decision in the dispute © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
GRIEVANCE PROCEDURES • Grievance: employee or union complaint that management is violating some provision of the union contract Copyright © 2003 by South-Western. All Rights Reserved.
Figure 11. 8 Steps in the Grievance Procedure Copyright © 2003 by South-Western. All Rights Reserved.
COMPETITIVE TACTICS OF UNIONS AND MANAGEMENT • Union Tactics • Strike (walkout): temporary work stoppage by employees until a dispute is been settled or a contract signed Picketing: workers marching at a plant entrance to protest some management practice Copyright © 2003 by South-Western. All Rights Reserved.
COMPETITIVE TACTICS OF UNIONS AND MANAGEMENT • Union Tactics • Management Tactics Lockout: in fact, a management strike to bring pressure on union members by closing the firm Strikebreakers: nonunion workers who cross picket lines to fill the jobs of striking workers Copyright © 2003 by South-Western. All Rights Reserved.
COMPETITIVE TACTICS OF UNIONS AND MANAGEMENT • Union Tactics • Management Tactics Injunction: court order prohibiting some practice – to prevent excessive picketing or certain unfair union practices Employers’ associations: employers group that cooperates and presents a united front in dealing with labor unions Copyright © 2003 by South-Western. All Rights Reserved.
THE TREND TOWARD UNION-MANAGEMENT CO-OPERATION • Hostile and antagonistic attitudes • that have sometimes characterized labor-management relationships are changing Companies should treat employees as valuable human resources and adopt policies designed to empower them © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
Figure 11. 9 GMC: Employees as Valued Resources Copyright © 2003 by South-Western. All Rights Reserved.
EMPLOYEE-MANAGEMENT RELATIONS IN NONUNION ORGANIZATIONS • Nonunion companies often offer compensation and benefits comparable to those of unionized firms to avert unionization • Satisfied workers may thus conclude that a union is unnecessary © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
Grievance Programs for Non-union Employees • Can file: • Lawsuits against their firms • Charges with the U. S. Equal • Opportunity Commission Charges with a state human rights commission © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
Grievance Programs for Non-union Employees • Alternative dispute resolution • programs: vary, but usually include open-door policies, employee hotlines, peer review councils, mediation, and arbitration Peer-review boards: typically consists of three employee peers and several management representatives © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
Figure 11. 10 Grievance Programs for Nonunion Workers Copyright © 2003 by South-Western. All Rights Reserved.
Job Security in Nonunion Companies • Primary motivation for • workers to form labor unions To reduce staffing levels, firms may try to provide alternatives to layoffs • Some companies offer incentives for early retirement and resignation Copyright © 2003 by South-Western. All Rights Reserved.
CHALLENGES FACING ORGANIZED LABOR • Unions are representing a • declining share of the workforce Reasons include: • Downsizing by large, unionized • • firms to improve global competitiveness Shift in favor of free-market ideologies Growth of the information economy Copyright © 2003 by South-Western. All Rights Reserved.
INITIATIVES TO REBUILD UNIONS • Share of people who have • positive attitudes towards unions is growing Global economy provides opportunities © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
Figure 11. 11 Selmer Woodwinds/Bach Instrument Assemblers: UAW Members in Unlikely Places Copyright © 2003 by South-Western. All Rights Reserved.
INITIATIVES TO REBUILD UNIONS • AFL-CIO’s membership drives • Unions focusing narrow • • organizing efforts on unskilled, low-wage service workers Corporate campaigns pressure employers to accept unions U. S. unions developing a role in the world economy © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
WHAT’S AHEAD • Next chapter covers the ways in which businesses produce worldclass goods and services © Photo. Disc Copyright © 2003 by South-Western. All Rights Reserved.
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