Human Resource Management Union Management Relations CHAPTER 16

Human Resource Management Union/ Management Relations CHAPTER 16 Robert L. Mathis | John H. Jackson | Sean R. Valentine 14 e © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Learning Objectives Discuss what a union is and explain why employees join and employers resist unions Outline the current state of union activity in the United States Identify several reasons for the decline in union membership Explain the nature of each of the major U. S. labor laws © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Learning Objectives Describe the stages of the unionization process and the typical collective bargaining process Define grievance and identify the stages in a grievance procedure Understand how unions have been involved in the global arena © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Nature of Unions Union: Formal association of workers that promotes the interests of its members through collective action Existence Laws depends upon: and legal action Public opinion of their role in influencing business organizations © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Nature of Unions Advantages Disadvantages • Employees can provide feedback to employers about their concerns and suggestions • Balance the unchallenged decision-making power of management • Lead to increases in job performance and employee earnings • Negatively impact the allocation of organizational resources • Cause decreases in profitability • Hurt productivity as a result of increased compensation © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 16. 1 - Factors Leading to Employee Unionization © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Why Employers Resist Unions Constrain what managers can and cannot do in a number of areas Lead to inefficiencies in the workplace that cause waste and poor work performance Result in higher wages and benefits © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Prevention of Unions Develop good employment practices Encourage greater employee feedback Offer better compensation Build good rapport with workers Both HR professionals and operating managers must be attentive and responsive to employees © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 16. 2 - Union Membership as a Percentage of the U. S. Civilian Workforce © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Reasons for U. S. Union Membership Long-Term Decline Deregulation Foreign Larger competition number of people looking for jobs General perception by firms that dealing with unions is expensive Compared with nonunion alternatives © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Reasons for U. S. Union Membership Long-Term Decline © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 16. 3 - Union Membership by Industry © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Public-Sector Unionism Most highly unionized part of the U. S. workforce Local government workers have the highest unionization percentage of any group in the U. S. workforce © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Union Targets for Membership Growth Professionals • Health care industry has experienced a growth in the unionization • Primary reason being the growth of managed care Low-Skilled Workers • Lower-paying, less desirable jobs with immigrant workers in some cases • Many employees in this industry are relatively dissatisfied Contingent and Part-Time Workers • National Labor Relations Board (NLRB) allows temporary workers to be included in attempts to unionize firms © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Evolution of U. S. Unions Shoemakers’ strike For higher wages Led to criminal conspiracy American Federation of Labor (AFL) United several independent national unions in 1886 Aimed to: Organize skilled craft workers Emphasize economic issues and working conditions © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Evolution of U. S. Unions Congress Found of Industrial Organizations (CIO) in 1938 Focused AFL-CIO on semiskilled and unskilled workers merger Seven unions split to form Change to Win Federation (CTWF) Despite the split, it is still the major organization coordinating union efforts in the United States © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Union Structure Types Craft of union: Union whose members do one type of work Using specialized skills and training Industrial union: Union that includes many persons working in the same industry or company Regardless of jobs held © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Union Structure AFL-CIO federation Labor organizations have developed complex organizational structures with multiple levels Federation: Broadest level which is a group of autonomous unions Change Seven to win unions left the AFL-CIO © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Union Structure National Not and international unions governed by a federation even if they are affiliated with it Local unions May be centered around a particular employer organization or a particular geographic location Business agent: Full-time union official who operates the union office and assists union members Union steward: Employee elected to serve as the first-line representative of unionized workers © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 16. 4 - Major National Labor Laws © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

U. S. Labor Laws Early labor legislation Railway Labor Act, 1926 Represented a shift in government regulation of unions Allows either the unions or the management to use the National Labor Relations Board Norris-La. Guardia Guaranteed Restricted Act, 1932 workers some rights to organize the issuance of court injunctions in labor disputes © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

U. S. Labor Laws The Wagner Act, 1935 Declared that the official policy of the U. S. government was to encourage collective bargaining Unfair labor practices Interfering with, restraining, or coercing employees in the exercise of their right to organize or to bargain collectively Dominating or interfering with the formation or administration of any labor organization © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

U. S. Labor Laws Encouraging or discouraging membership in any labor organization by discriminating with regard to hiring, tenure, or conditions of employment Discharging or otherwise discriminating against an employee because the employee filed charges or gave testimony under the act Refusing to bargain collectively with representatives of the employees © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

U. S. Labor Laws National Labor Relations Board (NLRB) Conducts unionization elections Investigates complaints by employers or unions through its fact-finding process Issues opinions on its findings Prosecutes violations in court © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

U. S. Labor Laws The Taft-Hartley Act, 1947 National emergency strikes Right-to-work provision Right-to-work laws: State laws that prohibit requiring employees to join unions as a condition of obtaining or continuing employment Open shop: Firm in which workers are not required to join or pay dues to a union Closed shop: Firm that requires individuals to join a union before they can be hired © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 16. 5 - Right-to-Work States © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Types of Shops Union Shop • Requires that individuals join the union, usually 30 to 60 days after being hired Agency Shop • Makes workers who don’t join the union to make payments equal to union dues and fees to get union representation services Maintenance-of-membership Shop • Requires workers to remain members of the union for the period of the labor contract © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

U. S. Labor Laws The Landrum-Griffin Act, 1959 Passed to ensure that the federal government protects the democratic rights of the members Unions are required to: Establish Make bylaws financial reports Provide union members with a bill of rights © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

U. S. Labor Laws Civil Service Reform and Postal Reorganization Acts, 1978 Given the authority to: Oversee and administer union/management relations in the federal government Investigate unfair practices in union organizing efforts © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

U. S. Labor Laws Proposed Allows Sign Employee Free Choice Act unions to: up workers on cards Become recognized without an election by secret ballot © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 16. 6 - Typical Unionization Process © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Unionization Process © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Unions’ Organizing Efforts Take many forms Personally Mailing contacting employees outside work materials to employees’ homes Inviting employees to attend special meetings away from the company Publicizing the advantages of union membership © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Unions’ Organizing Efforts Unions have adopted electronic approaches Salting: Practice in which unions hire and pay people to apply for jobs at certain companies to begin organizing efforts © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Authorization Cards Union authorization card: Signed by employees to designate a union as their collective bargaining agent Shows that the employees would like the opportunity to vote on having a union © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Representation Election Bargaining unit: Employees eligible to select a single union to represent and bargain collectively for them Provisions of the National Labor Relations Act exclude supervisors from: Voting for unions Joining unions © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Representation Election Once unionizing efforts begin: All activities must conform to the requirements established by applicable labor laws Election Union process needs to receive only a majority of the votes Election results can be appealed to the NLRB during suspicion of unfair labor practices © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Certification and Decertification: Process whereby a union is removed as the representative of a group of employees Collective bargaining: Process whereby representatives of management and workers negotiate over: Wages Hours Other terms and conditions of employment © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 16. 7 - Continuum of Collective Bargaining Relations © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Collective Bargaining Issues Management rights Rights reserved so that the employer can manage, direct, and control its business Union security provisions Contract clauses to help the union obtain and retain members Bargaining Issues Union dues issues Dues checkoff clause - Provides for the automatic deduction of union dues from the payroll checks of union members Types of required union membership © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Classification of Bargaining Issues Mandatory issues: Collective bargaining issues identified specifically by labor laws or court decisions as subject to bargaining Mandatory subjects for bargaining Discharge of employees Grievances Work schedules Union security and dues checkoff © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Classification of Bargaining Issues Retirement Vacations Rest and pension coverage and time off and lunch break rules Safety rules Profit-sharing Required plans physical exam © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Classification of Bargaining Issues Permissive issues: Collective bargaining issues that are not mandatory and that relate to certain jobs Illegal issues: Collective bargaining issues that would require either party to take illegal action © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Collective Bargaining Process © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Preparation and Initial Demands Employer and industry data are gathered Wages, benefits, working conditions, management and union rights, productivity, and absenteeism Core bargaining issues Primary focus on: Wages Benefits Working conditions © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Continuing Negotiations Each side attempts to determine what the other side values highly So that the best bargain can be struck Good-faith negotiations - Parties agree to send negotiators who can bargain and make decisions Rather than people who do not have the authority to commit either group to a decision © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Settlement and Contract Agreement Ratification: Process by which union members vote to accept the terms of a negotiated labor agreement Before ratification, the union negotiating team: Explains the agreement to the union members Presents it for a vote © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 16. 9 - Typical Items in a Labor Agreement © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Bargaining Impasse Conciliation: Process by which a third party assists union and management negotiators to reach a voluntary settlement Mediation: Process by which a third party helps the negotiators reach a settlement Arbitration: Process that uses a neutral third party to make a decision © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Strikes, Lockouts, and Other Tactics Strikes: Work stoppage in which union members refuse to work in order to put pressure on an employer Lockout: Shutdown of company operations undertaken by management to prevent union members from working © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Types of Strikes © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Strikes, Lockouts, and Other Tactics Replacement Management Workers’ of workers on strike sometimes replace workers who strike rights vary depending on the type of strike that occurs Other union tactics Unorthodox or aggressive practices to: Express employee discontent Advance employee pro-agenda © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Union/Management Cooperation © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Grievance Management Complaint: Indication of employee dissatisfaction Grievance: Complaint formally stated in writing © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 16. 10 - Typical Division of HR Responsibilities: Grievance Management © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Grievance Management Grievance procedures: Specific communication channels that are used to resolve grievances Unionized employees have a right to union representation if: Employee is questioned by management Discipline may result © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Grievance Management Employee will be reinstated with back pay if: Weingarten Employee rights are violated is dismissed © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 16. 11 - Steps in a Typical Grievance Procedure © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Grievance Management Grievance arbitration: Means by which a third party settles disputes arising from different interpretations of a labor contract Common concerns Discipline Safety and discharge and health Security © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Unions in the Global Arena Status of global unions is being affected by: International union membership Codetermination: Union or worker representatives are given positions on a company’s board of directors Global labor organizations International Union U. S. Labour Organization International Network and global differences © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

U. S. and Global Differences in Union. Management Relations Economic issues vs. other concerns Organization Collective by kind of job and employer agreements as contracts Competitive relations © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.