Human Resource Management TENTH EDITON SECTION 5 Employee Relations and Global HR Robert L. Mathis John H. Jackson Chapter 17 Union-Management Relations © 2003 Southwestern College Publishing. All rights reserved. PowerPoint Presentation by Charlie Cook Learning Objectives After you have read this chapter, you should be able to: – Describe what a union is and explain why employees join unions. – Identify several reasons for the decline in union membership. – Explain the acts that compose the “National Labor Code.” – Identify and discuss the stages of the unionization process. – Describe the typical collective bargaining process. – Describe grievance and explain why a grievance procedure is important for employers. © 2002 Southwestern College Publishing. All rights reserved. 17–2 Nature of Unions Union – A formal association of workers that promotes the interests of its members through collective action. State of U.S. Unions – Focused on economic issues—wages, benefits, job security, and working conditions. – Organized by kind of job and employer. – Seek multi-year collective agreements on economic issues as “contracts.” – Maintain competitive relations with management. © 2002 Southwestern College Publishing. All rights reserved. 17–3 Factors Leading to Employee Unionization Figure 17–1 © 2002 Southwestern College Publishing. All rights reserved. 17–4 Typical Division of HR Responsibilities: Labor Relations Figure 17–2 © 2002 Southwestern College Publishing. All rights reserved. 17–5 Union Structure Key Terms Craft Union A union whose members do one type of work, often using specialized skills and training. Industrial Union A union that includes many persons working in the same industry or company regardless of jobs held. Federation A group of autonomous national and international unions. Local Union A union centered around either a particular employer or a particular geographic location. Business Agent A full-time union official who operates the union office and assists union members. Union Stewart An employee elected to serve as the first-line representative of unionized employees. © 2002 Southwestern College Publishing. All rights reserved. 17–6 Union Membership as Percentage of the U.S. Workforce Source: Bureau of Labor Statistics, U.S. Department of Labor. © 2002 Southwestern College Publishing. All rights reserved. Figure 17–3 17–7 Reasons for Union Decline in the U.S. Foreign Competition Deregulation Industrial Changes Union Decline Workforce Changes © 2002 Southwestern College Publishing. All rights reserved. More Available Labor Geographic Changes 17–8 Union Membership by Industry Source: U.S. Department of Labor, Bureau of Labor Statistics. © 2002 Southwestern College Publishing. All rights reserved. Figure 17–4 17–9 Union Targets for Membership Growth Professional Unions Union Organizing Contingent and Part-time Workers Low-Skilled Workers © 2002 Southwestern College Publishing. All rights reserved. 17–10 The History of American Unions 1794 1806 1886 1938 1926 1935 1932 1947 1957 1959 1978 Shoemakers’ strike Shoemakers’ strike (“criminal conspiracy”) American Federation of Labor (AFL) Congress of Industrial Organizations CIO Railway Labor Act National Labor Relations Act (Wagner Act) Norris-LaGuardia Act Taft-Hartley Act AFL-CIO merger Landrum-Griffin Act Civil Service Reform Act © 2002 Southwestern College Publishing. All rights reserved. 17–11 The National Labor Code Figure 17–5 © 2002 Southwestern College Publishing. All rights reserved. 17–12 Unfair Labor Practices: Employer Interfering with the organizing and collective bargaining rights of employees. Dominating or interfering with any labor organization. Encouraging or discouraging membership in a particular union. Discharging persons for organizing activities or union membership. Refusing to bargain collectively. © 2002 Southwestern College Publishing. All rights reserved. 17–13 Labor Relations: Key Terms Key Terms Right-to-Work Laws State laws that prohibit contracts requiring employees to join unions as a condition of obtaining or continuing employment. Closed Shop (outlawed) A firm that requires individuals to join a union before they can be hired. Union Shop A clause in a collective bargaining agreement that requires new employees to join the union, usually 30 to 60 days after being hired, or be fired. Agency Shop Requires employees who do not join the union to pay fees for the union’s representation services. Maintenance-ofmembership Require workers to remain members of the union for the period of the labor contract. © 2002 Southwestern College Publishing. All rights reserved. 17–14 Right-to-Work States Figure 17–6 © 2002 Southwestern College Publishing. All rights reserved. 17–15 Typical Unionization Process Figure 17–7 © 2002 Southwestern College Publishing. All rights reserved. 17–16 Unionization: Key Terms Key Terms Salting The practice in which unions hire and pay people to apply for jobs at certain companies. Union Authorization Card A card signed by an employee to designate a union as his or her collective bargaining agent. Bargaining Unit Employees eligible to select a single union to represent and bargain collectively for them. Certification The NLRB’s grant of the union’s legal status as the employees’ representative. Decertification The process whereby a union is removed as the representative of a group of employees. © 2002 Southwestern College Publishing. All rights reserved. 17–17 Bargaining Units “Community of Interest” – Wages, hours, and working conditions – Traditional industry groupings for bargaining purposes – Physical location and amount of interaction and working relationships among employee groups – Supervision by similar levels of management Supervisors and Bargaining Units – Supervisors are excluded from bargaining units. • Any individual with the authority to hire, transfer, discharge, discipline, and who uses independent judgment with employees. © 2002 Southwestern College Publishing. All rights reserved. 17–18 Legal Do’s and Don’ts for Managers During the Unionization Process Figure 17–8 © 2002 Southwestern College Publishing. All rights reserved. 17–19 Collective Bargaining Relationship Continuum Figure 17–9 © 2002 Southwestern College Publishing. All rights reserved. 17–20 Collective Bargaining: Key Terms Key Terms Collective Bargaining The process whereby representatives of management and workers negotiate a labor agreement covering wages, hours, and other terms and conditions of employment. Management Rights Those rights reserved to the employer to manage, direct, and control the workplace. Union Security Provisions Contract provisions that aid the union in obtaining and retaining members. Dues Checkoff A contract provision for the automatic deduction of union dues from the paychecks of union members. © 2002 Southwestern College Publishing. All rights reserved. 17–21 Mandatory Bargaining Issues Issues identified specifically by labor laws or court decisions as subject to bargaining. Discharge of employees Grievances Work schedules Union security and dues checkoff Retirement and pension coverage Vacations Christmas bonuses Rest- and lunch-break rules Safety Rules Profit-sharing plans Required physical exam © 2002 Southwestern College Publishing. All rights reserved. 17–22 Classification of Bargaining Issues Permissive Issues – Collective bargaining issues that are not mandatory but relate to certain jobs. • Benefits for retired employees • Product prices (e.g., employee discounts) for employees • Performance bonds Illegal Issues – Collective bargaining issues that would require either party to take an illegal action (e.g., discriminate in hiring). © 2002 Southwestern College Publishing. All rights reserved. 17–23 The Bargaining Process Preparation and Initial Demands Continuing Negotiations Bargaining Impasse Strikes and Lockouts Conciliation Mediation Arbitration Settlement and Contract Agreement © 2002 Southwestern College Publishing. All rights reserved. 17–24 Typical Items in a Labor Agreement Figure 17–10 © 2002 Southwestern College Publishing. All rights reserved. 17–25 Types of Strikes Economic Strikes – Strikes over economic issues (e.g., wages) Unfair labor practice strikes – Strikes over illegal employer actions (e.g., refusal to bargain) Wildcat strikes – Strikes not approved by the union Jurisdictional strikes – Strikes in dispute over the ownership of work Sympathy strikes – Expressions of support for other unions © 2002 Southwestern College Publishing. All rights reserved. 17–26 Union-Management Cooperation Issues Cooperation and Joint Efforts Employee Involvement (Teams) UnionManagement Cooperation Employee Ownership (ESOPs) © 2002 Southwestern College Publishing. All rights reserved. 17–27 Grievance Management Complaint – Indication of employee dissatisfaction Grievance – A complaint formally stated in writing Grievance Procedures – Formal channels of communications used to resolve grievances. – Union representation (Weingarten) rights © 2002 Southwestern College Publishing. All rights reserved. 17–28 Typical HR Responsibilities: Grievance Management Figure 17–11 © 2002 Southwestern College Publishing. All rights reserved. 17–29 Steps in a Grievance Procedure Figure 17–12 © 2002 Southwestern College Publishing. All rights reserved. 17–30