Dealing with Organized Labor [whether unionized or not! ] Chapter 15 15-1

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Chapter 15
Dealing with Organized Labor
[whether unionized or not! ]
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall
15-1
History of Unions
U.S. Labor Unions:

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Legally unprotected until 1935 [strikes and
related activities considered illegal restraint
of trade under antitrust laws]
Unions widely supported in 1930s [worldwide labor movement—historical context]
Not supported as much today due to
offshoring in certain industries, economics
Employers prefer a nonunion workforce
[compare/contrast employment at will]
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The Legal Environment
3 Most Important Laws

1) Wagner Act (1935)

2) Taft-Hartley Act
(1947)

3) Landrum-Griffin
Act (1959)

[Others—e.g., RLA]
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1) The Wagner Act [Original NLRA]


Sets up National Labor Relations Board (NLRB)
 Independent federal agency
 Certifies elections
 Investigates unfair labor practice charges
[see text, p. 467, for specific provisions]
Can issue cease & desist order if employer:
 Interferes w/ union formation/administration
 Discriminates against union members [cf.
“salting”]
 Refuses to bargain with the union
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2) Taft-Hartley and 3) Landrum-Griffin Acts
∎
∎
Taft-Hartley Act [text at p. 468]
∎ Protects mgmt. & workers from union coercion
∎ Prohibits discrimination re: non-union status
∎ Illegal for union not to bargain in good faith
∎ Allows individual states to bar shop clauses &
establish “right to work” states [see web link]
The Landrum-Griffin Act [text at p. 469]
∎ Protects union members from union leaders
∎ Requires unions bill of rights and constitution
∎ Regulates union elections and finances
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Labor Relations in the U.S.


Adversarial Labor-Management Relations
Shrinking Union Membership [private sector]
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Labor Relations in Other Countries

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France—more politically involved
China—low political and economic involvement
Sweden—high both politically and economically
Germany:
 Works Councils—joint committees
 Codetermination—union on board of directors
Japan:
 Enterprise Unions—all workers in company
 System fostered by “lifetime” employment
[on the decline due to economic realities]
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Labor Relations Strategy
Two Basic Strategies
 Union Acceptance
 Union Avoidance
 Union Substitution
 Union Suppression
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Labor Relations Process

Union Organizing
Union solicitation
 Pre-election conduct
 Certification election
 Employee Free Choice Act
[passage seems unlikely;
political hot potato much
like TEAM Act--see Case
15.3; more discussion later]

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15-9
Collective Bargaining
 Bargaining Behavior
 Must negotiate in “good faith”
 Both sides develop and present proposals,
continue to impasse
 Bargaining Types
 Distributive
 Integrative
 Shirtless [Putin only ]
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Guidelines for Integrative Bargaining

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

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Try to understand others’ needs/goals
Create a free flow of information
Emphasize commonalities
Minimize differences
Search for solutions that meet all parties’
goals and objectives
Develop flexible responses to proposals
Avoid entrenched “positions” vs. interests
Seek to enlarge the “pie” vs. bigger share
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Bargaining Topics

Mandatory


Wages, hours, and conditions of
employment
Permissive
 Both parties must agree to add to agenda
 E.g. board service, retiree benefits
 Shop clauses, no subcontracting rules

Illegal
 Featherbedding
 Discriminatory practices, etc.
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The Impact of Unions on HRM


Staffing – seniority based [vs. merit]
Compensation
 Higher in union shops [cf. “2-tier” systems]
 Benefits generally better in union shops
 Prefer across the board raises (e.g., COLAs)

Employee Relations [compare “at-will”]
 Union gives employees a voice; disputes
can be resolved short of termination
 Job design—Team structures involved with
management may be limited [Case 15.3]
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