Mgmt 583
Chapter 7: Union Avoidance
Fall 2008
Capitalism v. Unionism
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Capitalism is based on the premises that entrepreneurs
use their resources to create process to produce goods
or services for a profit.
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Employers are entitled to profits because they took the risk.
Employers and employees enjoy EAW rights.
Trade unionists contend that wealth is ultimately
created by the worker who produces the product.
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Workers are entitled to a greater share of the wealth they
produce.
Workers enjoy job property rights.
Workers have a right to a role in determining work rules.
Union-Free
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A union-free organization is one which is
entirely unorganized in its U.S. operations.
There are two types of union-free
organizations:
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Doctrinaire organizations – those explicitly
design to initiate HR policies that cause
employees to resist labor unions (Nissan in
Smyrna, TN).
Philosophy-laden organizations – those who
avoid unions because of their excellent employee
relations.
Environmental Factors Associated
with Union Avoidance

Geographic location
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Plant size
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Unionism is strongest in Northeast & Midwest.
Unionism is weakest in the South.
Rural locations are preferable over urban.
Plants should be larger than 200 and avoid exceeding 500.
Demographics
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High percentage of white-collar/professional industries
harder to organize.
High percentage of women.
Philosophy-Laden Approaches to
Union Avoidance
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Wage Policies
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Lead the market
Merit pay
Open pay systems
Skill-based pay
Nonwage Policies
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Formalized job posting systems
Cleary delineated promotion policies
Good training & development programs
Career planning
Effective feedback/performance appraisal
Efficient selection & development of managers
Philosophy-Laden Approaches to
Union Avoidance
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Employment security
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Clearly defined work rules that are consistently enforced.
Even under EAW, employers should make it policy to
only terminate employees for a good reason.
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In union-free workplaces employers get to determine employee
rights, under a union workplace, the employees will determine
their rights.
Provide expanded separation incentives or redeployment
opportunities if RIFs occur.
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Retraining
Work-sharing
Philosophy-Laden Approaches to
Union Avoidance
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Employee Voice Systems
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Internal complaint resolution systems
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Due process is the “right” thing to do.
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There is no legal or contractual obligation to do this, but it is
good HR policy.
Appellate mechanisms.
Open-door policies to enhance employee access to
management.
Attitude surveys to monitor employee perceptions.
Subordinate evaluations of supervisors (personally not
recommended)
Philosophy-Laden Approaches to
Union Avoidance
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Other Innovative Techniques

Employer/Employee committees (a.k.a. employee
empowerment committees)
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Electromation, Inc. v. NLRB (1994)
Caveat on Employer/Employee
Committees
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Under the NLRB’s Electromation decision, a two-step inquiry
is required to determine whether an employer has violated §§
8(a)(2) & (1) of the NLRA by dominating, interfering with, or
supporting an employee committee:
First is the employer/employee committee a “labor
organization” under the NLRA? A “labor organization” exists
if it involves :
(1) employee participation,
(2) a purpose to deal with employers,
(3) concerning itself with wages, hours, or conditions of
employment.
Source: Electromation, Inc. v. NLRB, 35 F.3d 1148, 1157-58 (7th Cir. 1994); see also, EFCO Corp. v. NLRB,
2000 U.S. App. LEXIS 10909 (4th Cir. 2000) (declaring an employee safety committee to be a labor
organization in violation of § 8(a)(2) .
Caveat on Employer/Employee
Committees
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Second, if it is a “labor organization” under the
NLRA is it unlawful dominated by the employer? A
“labor organization” is unlawfully dominated if the
employer interfers with:
(1) the formation
(2) administration of, or
(3) contributes financial and other support to, the
“labor organization.”
Source: Electromation, Inc. v. NLRB, 35 F.3d 1148, 1157-58 (7th Cir. 1994); EFCO Corp. v.
NLRB, 2000 U.S. App. LEXIS 10909 (4th Cir. 2000).
Management Campaign Tactics
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Influence
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Captive audience speeches to present
management campaign themes.
Small group and individual meetings.
Letters, posters, bulletin boards, and other written
communications.
Video presentations
Management Campaign Tactics
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External Contextual Control
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Use of regulatory agency procedures.
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Ensuring union does not violate §7.
Enforcing the Republic Aviation rule.
Delaying the election.
Using linkages with community institutions
(banks, churches, newspapers, churches, etc.)
Management Campaign Tactics
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Intra-unit Contextual Control
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Supervisory training.
No vote committees.
Refuse access to employees of labor unions (i.e.,
organizers).
Neutrality agreements (NEVER, NEVER, sign
one unless you want the union)
Neutrality Agreements
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Neutrality agreement - a contract between a union and an
employer under which the employer agrees to support a
union's attempt to organize its workforce.
 They impose a gag order on speech not favorable to the
union.
 An agreement stating that the employer will not campaign
against the union while union agents solicit signed
authorization cards.
Often done to avoid a corporate campaign.
 A corporate campaign is a “top down” organizing
approach in which the union attacks the employer’s public
image, makes it difficult for the employer to conduct
business, and then pressures top level management to
succumb to union demands.
Neutrality Agreements

Most neutrality agreements include a “card check”
agreement. Under such an agreement, employees are
not permitted to vote on union representation in a
secret ballot election monitored by the NLRB.
 Instead, the employer pledges to recognize the
union automatically if a certain number of signed
union authorization cards are collected.
 This gives the union permission to come on
company property during work hours
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Source: The Facts On Union Certification By Card Check (May 2006)
Hospitality Labor Letter
http://www.fisherphillips.com/showarticle.aspx?Ref=list&Type=1119&Cat=3
387&Show=3835
Management Campaign Tactics
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Monitoring
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Attitude surveys
Surveillance
Reports from management loyalists
Management Campaign Themes
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Bargaining Impact Themes (what you say must
be true).
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Strikes may occur.
High union dues and initiation fees (Communications
Workers of America may take the first pay check - $1000
[local 43] plus 2.25%).
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60.6% to the local
23.2% to the international
Remainder to CB assistance, government relations & social
action, education & research, etc.
Source: CWA Local 9510, Orange, CA
http://pages.sbcglobal.net/cwa9510/dues.htm
Management Campaign Themes
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Bargaining Impact Themes
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Potential for fines and assessments by the union.
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Locals may levy special assessments in cases of emergency or
when dues are insufficient to finance the local.
Members can be fined for:
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Not paying dues.
Violating the constitution or local bylaws.
Failing to comply with a lawful decision of the union or local.
Working without proper union authorization during a strike
Violating adopted standards for wages and hours, or working
conditions.
Unions cannot guarantee any changes.
Bargaining may actually reduce wages and benefits.
Management Campaign Themes
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Anti-Union Themes
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Union may interfere with good employee/employer
relations.
Unions can be dominated from outsiders.
The union has failed else where.
Some unions are corrupt.
Some unions do not represent your view (may be leftist,
pro-abortion, pro-immigration, etc.)
Unionism is inconsistent with the employee and the
community.
Unions will subject the worker to their rules (boycotts,
crossing picket lines, strike votes, etc.)
Management Campaign Themes
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Pro-Company Themes
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Management has treated workers well.
Workers currently enjoy good wages (this is why
you should lead the market.
Workers enjoy good working conditions.
If workers are unhappy, the union is a nuclear
option, give the company another chance.
Products and Companies Currently
under Boycott by AFL-CIO
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ADAMS MARK HOTELS
BIG LEAGUE THEATRICALS ROAD
COMPANY 'MISS SAIGON‘ (Actor’s
Equity)
ECHOSTAR DISH NETWORK
(CWA)
ALGOOD FOODS (Reeses peanut
butter) (IBT)
DIAMOND WALNUT CO (IBT)
ADAM'S MARK HOTEL, Buffalo, NY
(International Union of Operating
Engineers)
BEST WESTERN-GROSVENOR
RESORT (UNITE HERE)
FOUR POINTS BY SHERATON
(UNITE HERE)
GRAND HOTEL Minneapolis
(UNITE HERE)
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KSL RECREATION (Emerald
Pointe (Lake Lanier, GA); Hotel del
Coronado (Coronado, CA); La Costa
Resort & Spa (Carlsbad, CA); La
Quinta Resort (Palm Springs, CA);
PGA West (Palm Springs, CA);
Arizona Biltmore Resort (Phoenix,
AZ) (UNITE HERE)
NEW OTANI HOTEL & GARDEN
(UNITE HERE)
TURTLE BAY RESORT (UNITE
HERE)
R.J. REYNOLDS TOBACCO CO.
(Bakery, Confectionery, Tobacco
Workers and Grain Millers
International Union)
VANCE SECURITY (SEIU)
WACKENHUT SECURITY (SEIU)
Who is UNITE HERE?

UNITE (formerly the Union of Needletrades,
Textiles and Industrial Employees) and HERE
(Hotel Employees and Restaurant Employees
International Union) merged on July 8, 2004
forming UNITE HERE. The union represents
more than 440,000 active members and more
than 400,000 retirees throughout North
America. In 2005 they joined the Change to
Win Federation