Chapter 16
SUPERVISION and LABOR
Chapter outcomes
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Define union.
Discuss the effect the Wagner and Taft-Hartley Acts had
on labor-management relations.
Describe the union-organizing process.
Describe the components of collective bargaining.
Identify the steps in the collective bargaining process.
Explain the various types of union security
arrangements.
Describe the role of a grievance procedure in collective
bargaining.
Identify the various impasse resolution techniques.
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Labor relations
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All activities within a company that involve
dealing with a union and its members
12% of the private sector are unionized
Two main effects of unionization:
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Major industries such as automobile, steel, electrical
manufacturers, and transportation are unionized and
have a major effect on the economy.
Gains made by unions often spill over into other
nonunionized sectors of the economy.
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EXHIBIT 16–1
Union membership by industry concentration.
Source: Adapted from Bureau of Labor Statistics, “Table 3. Union Affiliation of Employed Wage and Salary Workers by
Occupation,” January 27, 2005, www.bls.gov/news.release/union2.t03.htm
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Why employees join unions
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Higher wages and benefits
Greater job security
Influence on work rules
Compulsory membership
Being upset with the supervisor
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EXHIBIT 16-2
Union security arrangements (and related elements).
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Labor legislation
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The Wagner Act
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The National Labor Relations Act, 1935
“Bill of rights” for unions
Established the National Labor Relations Board
(NLRB)
Outlined unfair labor practices
The Taft-Hartley Act
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The Labor-Management Relations Act, 1947
Amended the Wagner Act
Created the Federal Mediation and Conciliation
Service (FMCS)
Declared the “closed shop” illegal
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Other labor legislation
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Landrum-Griffin Act, 1959
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Labor and Management Reporting and
Disclosure Act
Addressed corruption and misuse of union
funds
Racketeering Influenced and Corrupt
Organizations Act (RICO), 1970
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Seeks to eliminate influence of organized
crime on unions
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EXHIBIT 16–3
The labor relations process.
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Guidelines for supervisors during a
unionizing drive
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Remain neutral in responses to questions
about your opinion on unionization.
If contacted by union representatives or
employees do not look at any materials they
attempt to give you.
Prohibit union-organizing activities in the
workplace during work hours only if they
interfere with work operations.
Prohibit outside union organizers from
distributing information in the workplace.
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Guidelines (continued)
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Do not prohibit employees from distributing
information during breaks and lunch periods.
Do not discriminate against any employee
involved in the unionization process.
Lookout for union efforts to coerce employees
to join and report it to HR.
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© 2010 Pearson Higher Education,
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TIPS for supervisors
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TIPS reminds supervisors not to:
 T-Threaten
 I-Interrogate
 P-Promise
 S-Spy
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EXHIBIT 16–4
The collective bargaining process.
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© 2010 Pearson Higher Education,
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EXHIBIT 16–5
A typical grievance procedure.
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When agreement cannot be reached…
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Strikes
 Economic strike
 Wildcat strike
Lockout
Impasse Resolution Techniques:
 Conciliation and mediation
 Fact finding
 Interest arbitration
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Supervisor’s steps in resolving a
grievance
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Listen to the employee’s complaint
Investigate to get the facts
Make your decision and explain it clearly
Keep records and documents
Be prepared for appeals
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