Mgmt 583
Chapter 14: Contract
Administration
Fall 2008
Contract Administration

Contract Administration
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Contains provisions for handling grievances (how
disagreements over the contract’s interpretation
will be resolved).
Establishes procedures for filing a grievance.



Time frames
Points of contact
Requirements for formalization
Contract Administration

Contract Administration

May establish procedures for taking issues to
rights arbitration.
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Which issues may be grieved.
Limitations on the arbitrator’s powers.
Who pays for the arbitration.
Grievances

Grievance - any violation of the the collective
bargaining agreement.



Interpretation of the CBA.
Unilateral modification of the CBA.
Refusal to abide by its provisions
Grievances

Sources of Grievances




Discipline
Pay
Working Conditions
Job Assignments
18%
17%
16%
16%
Typical Grievance Process
First Step
Employee
Through the
Shop Steward
Discuss Grievance
Supervisor
Resolved
Unresolved
Reduced to writing
and answered by
Mgmt in 5 days
Appeal in 5 days of Receipt
Typical Grievance Process
Second Step
Union
Grievance
Committee
Discuss Grievance
IR Rep.
Resolved
Unresolved
Management
answers in
5 days
Appeal in 5 days of Receipt
Typical Grievance Process
Third Step
Union
Grievance
Committee
Discuss Grievance
Plant
Manager
Resolved
Unresolved
Management
answers in
10 days
Appeal within 30 days of Receipt
Typical Grievance Process
Fourth Step
Rights Arbitration
Final & Binding Decision
Grievances

Three Methods of Resolving Grievances:

Arbitration

Strikes

Mediation
Grievances

Unions duty to fair representation on
grievances.


Miranda Fuel Co. (51 LRRM 1584 (1962)) the
employee’s right to engage in collective
bargaining includes the right to be represented by
the exclusive bargaining representative.
The union must represent all members of the BU
fairly.
Grievances

Unions duty to fair representation on
grievances.

Ford Motor Co. v. Huffman (345 U.S. 330
(1953)) the union is obligated to process all
meritorious grievances without discrimination or
else it violates §§ 8 (b)(1)(A) and 8(b)(2).

If the facts are clear and show a breach of the CBA,
the union cannot ignore the member’s rights.
Grievances

Unions duty to fair representation on
grievances.

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If the facts are unclear the union has a wide range of
reasonableness in resolving the ambiguity.
In performing the mechanical functions of processing
the grievance, the union is held to a standard of at
least ordinary care.
Rights Arbitration

History

Executive Order 9017 provided for rights
arbitration during WWII.

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Purpose was to reduce interruptions in war time
production.
Without arbitration, only mediation, strikes, and
lockouts could resolve grievances.
Textile Workers Union v. Lincoln Mills (353
U.S. 448 (1957)) Supreme Court rules that
arbitration awards are enforceable.
Rights Arbitration

Arbitration - a quasi-judicial process in which
parties agree to submit an unresolved dispute to
neutral third-party binding settlement.


Rights Arbitration - arises over interpretation of the
CBA’s meaning or entitlement to its provisions (post
CBA ratification).
Interest Arbitration - during CBA negotiations.