PART FIVE
LABOR RELATIONS & EMPLOYEE SECURITY
C H A P T E R
F o u r t e e n
14
Labor Relations
And
Collective Bargaining
Lecture Outline
Strategic Overview
The Labor Movement
A Brief History of the American Union Movement
Why do Workers Organize?
Research Insight
What do Unions Want?
The AFL-CIO
Unions and the Law
Period of Strong Encouragement: The NorrisLaGuardia (1932) and National Labor relations or
Wagner Acts (1935)
Period of Modified Encouragement Coupled with
Regulation: The Taft-Hartley Act (1947)
Period of Detailed Regulation of Internal Union
Affairs: The Landrum-Griffin Act (1959)
Entrepreneurs + HR
The Union Drive and Election
Step 1. Initial Contact
Step 2. Obtaining Authorization Cards
Step 3. Hold a Hearing
Step 4. The Campaign
Step 5. The Election
How to Lose an NLRB Election
The Supervisor’s Role
Rules Regarding Literature and Solicitation
The New Workplace
Decertification Elections: Ousting the Union
The Collective Bargaining Process
What is Good Faith?
The Negotiating Team
Bargaining Stages
Bargaining Hints
Impasses, Mediation, and Strikes
The Contract Agreement
Strategic HR
In Brief: This chapter gives a brief
history of the labor movement,
outlines the basics of labor law, and
reviews the procedures of labor
elections, collective bargaining, and
contract administration. A look into
the future of unionism is also
attempted.
Interesting
Issues:
Union
membership has declined in the past
few decades. However, unions are
targeting professional and other jobs
not traditionally unionized. Students
need to consider the implications of
this shift as well as the dynamics
driving the shift.
229
Lecture Outline (continued)
Grievances
Sources of Grievances
The Grievance Procedure
Guidelines for Handling Grievances
The Future of Unionism
Why Union Membership is Declining
What’s Next for Unions?
HR.NET
Employee Participation Programs and Unions
ANNOTATED OUTLINE
I.
Introduction: The Labor Movement
A. A Brief History of the American Union Movement – As early as 1790, skilled
craftsmen organized themselves into trade unions, and posted their minimum
wage demands to ensure no member accepted a lesser wage.
Union
membership grew until a major depression around 1837 resulted in a
membership decline. Membership increased as the U.S. entered its industrial
revolution. In 1869, a group of tailors formed the Knights of Labor. They were
interested in political reform and change.
After a period of increased
membership, they dissolved in 1893 after several unresolved issues. In 1886,
Samuel Gompers formed the Labors (AFL), and its aim was to raise its members
(mostly skilled workers) day-to-day wages and improve their working conditions.
The 1920s was a period of stagnation for the U.S. union movement. As a part of
his New Deal programs, President Roosevelt passed the national Industrial
Recovery Act, which made it easier for labor to organize.
B. Why Do Workers Organize? The urge to unionize often seems to boil down to the
belief on the part of workers that it is only through unity that they can get their fair
share of the pie and also protect themselves from management’s whims. Union
workers tend to receive significantly more pay, holidays, sick leave, unpaid leave,
insurance plan benefits, long-term disability benefits, and various other benefits
than do nonunion workers.
1.

NOTES
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Research Insight – One study found that it was issues like pay and job
security that were more important than noneconomic issues in leading to a
pro-union vote.
Educational Materials to Use
C. What Do Unions Want? Unions have two sets of aims, one for union security and
one for improved wages, hours, working conditions, and benefits for their
members.
1.
Union Security - The five types of union security are: closed shop, union
shop, agency shop, open shop, and maintenance of membership
arrangement.
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2.
Improved Wages, Hours, and Benefits for Members – The typical labor
agreement also gives the union a role in other HR activities, including
recruiting, selecting, compensating, promoting, training, and discharging
employees.
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D. The AFL-CIO

II.
1.
The American Federation of Labor and Congress of Industrial Organizations
(AFL-CIO) is a voluntary federation of about 100 national and international
labor unions in the United States. The AFL and CIO merged in 1955.
2.
The three layers of structure in the AFL-CIO are: 1) the local union (a single
chapter in a national union), 2) the national union, and 3) the national
federation.
NOTES
Educational Materials to Use
Unions and the Law
A. Background – There were no special labor laws until about 1930, so employers
were virtually unrestrained in their behavior toward unions. Since the Great
Depression, in response to changing public attitudes, values, and economic
conditions, labor law has gone through three clear changes: from strong
encouragement of unions, to modified encouragement coupled with regulation,
and finally to detailed regulation of internal union affairs.
B. Period of Strong Encouragement: The Norris-LaGuardia Act (1932) and the
National Labor Relations or Wagner Act (1935) – The Norris-LaGuardia Act
guaranteed to each employee the right to bargain collectively free from
interference, restraint, or coercion; but it did little to restrain employers from
fighting labor organizations. The National Labor Relations (Wagner) Act of 1935
(1) banned certain unfair labor practices; (2) provided for secret-ballot elections
and majority rule for determining whether a firm’s employees were to unionize;
and (3) created the National Labor Relations Board (NLRB) for enforcing these
two provisions.
1.
Unfair Employer Labor Practices as deemed by the Wagner act: a) it is unfair
for employers to interfere with, restrain, or coerce employees in exercising
their legally sanctioned right of self-organization; b) it is unfair for company
representatives to dominate or interfere with either the formation or the
administration of labor unions; c) companies are prohibited from
discriminating in any way against employees for their legal union activities; d)
employers are forbidden to discharge or discriminate against employees
simply because the latter file unfair practice charges against the company;
and e) it is unfair for employers to refuse to bargain collectively with their
employees’ duly chose representatives.
2.
From 1935 to 1947 – Union membership increased quickly after passage of
the Wagner Act in 1935; but the tide had begun to turn by the mid-1940s.
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
NOTES
Educational Materials to Use
C. Period of Modified Encouragement Coupled with Regulation: The Taft-Hartley
Act (1947) amended the Wagner Act with provisions aimed at limiting unions in
four ways: (1) by prohibiting unfair union labor practices, (2) by enumerating the
rights of employees as union members, (3) by enumerating the rights of
employers, and (4) by allowing the president of the United States to temporarily
bar national emergency strikes.
1. Unfair Union Labor Practices prohibited by the Taft-Hartley Act: a) unions
can not restrain or coerce employees from exercising their guaranteed
bargaining rights; b) unions can not cause an employer to discriminate in any
way against an employee in order to encourage or discourage his/her
membership in a union; c) unions can not refuse to bargain in good faith with
the employer about wages, hours, and other employment conditions (certain
strikes and boycotts are also unfair union labor practices); and d) unions can
not engage in featherbedding.
2. Rights of Employees – The Taft-Hartley Act protects the rights of employees
against their unions.
3. Rights of Employers – The Taft-Hartley Act explicitly gives employers full
freedom to express their views concerning union organization. The only
major restraint is that employers must avoid threats, promises, coercion, and
direct interference with workers who are trying to reach a decision. The
employer (1) cannot meet with employees on company time within 24 hours
of an election or (2) suggest to employees that they vote against the union
while they are at home or in the employer’s office, although he/she can do so
while in their work area or where they normally gather.
4.
National Emergency Strikes – The Taft-Hartley Action allows the U.S.
president to intervene in national emergency strikes. The president may
appoint a board of inquiry and, based on its report, apply for an injunction
restraining the strike for 60 days. If the parties don’t reach a settlement
during that time, the president can have the injunction extended for another
20 days, during which time employees take a secret ballot to ascertain their
willingness to accept the employer’s last offer.
D. Period of Detailed Regulation of Internal Union Affairs: The Landrum-Griffin Act
(1959) (officially, the Labor Management Reporting and Disclosure Act), an
amendment to the Wagner Act, is aimed at protecting union members from
possible wrongdoing on the part of their unions. This law: provides a bill of rights
for union members; lays out rules regarding union elections; regulates the kind of
person who can serve as a union officer; greatly expands the list of unlawful
employer actions; and requires reports from unions and employers, covering
such practices as the use of labor relations consultants.
E. Entrepreneurs + HR—Discusses the unexpected lesson in labor relations many
dot-com companies, like Amazon.com and LearnInMotion.com, are learning.
Unions are attractive to dot-com employees because many of the entrepreneurs
are focusing their resources on building scales and meeting customer demands,
with little attention being given to personnel issues. Dot-com entrepreneurs need
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to be proactive by writing policies and practices, so unions don’t see their
companies as being loosely run.

III.
NOTES
Educational Materials to Use
The Union Drive and Election
A.
Step 1. Initial Contact – The union determines the employees’ interest in
organizing, and an organizing committee is established. The initiative for the first
contact between the employees and the union may come from the employees,
from a union already representing other employees of the firm, or from a union
representing workers elsewhere. Once an employer becomes a target, a union
official usually assigns a representative to assess employee interest. He/she
identifies employees who would make a good organizing committee, and
educates them on the benefits of forming a union, the law and procedures
involved in forming a local union, and the issues management is likely to raise
during a campaign. The union must follow certain rules when it starts contacting
employees.
1.
Labor Relations Consultants are outside advisors (such as law firms,
researchers, psychologists, labor relations specialists, or public relations
firms) used by both management and unions to provide advice and related
services to assist in the winning of elections. Union salting is a union
organizing tactic by which workers who are in fact employed full-time by a
union as undercover union organizers are hired by unwitting employers.
B. Step 2. Obtaining Authorization Cards from interested employees to show that a
sizable number of employees may be interested in being organized is necessary
for the union to petition the NLRB for the right to hold an election. Thirty percent
of the eligible employees in an appropriate bargaining unit must sign before the
union can petition the NLRB for an election. During this stage, both union and
management typically use various forms of propaganda. However, neither side
can threaten, bribe, or coerce employees, and an employer may not make
promises of benefit to employees or make unilateral changes in terms and
conditions of employment that were not planned to be implemented prior to the
onset of union organizing activity.
1.

NOTES
What Management Can Do – It is an unfair labor practice to tell employees
they can’t sign a card, or to give them the impression it’s against their best
interests to do so. What management can do is prepare supervisors so they
can explain what the card actually authorizes the union to do. The
authorization card: lets the union seek a representation election; designates
the union as a bargaining representative in all employment matters; and
states the employee has applied for membership in the union and will be
subject to union rules and bylaws (see Figure 14-4). Unions are using the
Internet
to
distribute
and
collect
authorization
cards
today
(www.allianceibm.org/ezjoin.htm for example).
Educational Materials to Use
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C. Step 3. Hold a Hearing – One of three things can occur once the union collects
the authorization cards: 1) no hearing is needed if the employer chooses not to
contest union recognition, and a consent election is held immediately; 2) if the
employer chooses not to contest the union’s right to an election, and/or scope of
the bargaining unit, and/or which employees are eligible to vote in the election,
no hearing is needed and the parties can stipulate an election; or 3) if an
employer does wish to contest the union’s right, it can insist on a hearing to
determine those issues. An employer’s decision about whether to insist on a
hearing is a strategic one based on the facts of each case and whether it feels it
needs additional time to develop a campaign to try to persuade a majority of its
employees not to elect a union to represent them. The hearing addresses
several issues. If the results of the hearing are favorable for the union, the NLRB
will order holding an election, issue a Notice of Election to that effect, and send
NLRB form 707 (see Figure 14-6) to the employer to post.
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D. Step 4. The Campaign – During this stage, the union and the employer appeal to
employees for their votes; but neither side can threaten, bribe, or coerce
employees.
E. Step 5. The Election by secret ballot is held within 30 to 60 days after the NLRB
issues its Decision and Direction of Election. The NLRB provides the ballots (see
Figure 14-7), voting booth, and ballot box, and counts the votes and certifies the
results of the election. The union becomes the employees’ representative if it
wins the election by a majority of the votes cast.
F. How to Lose an NLRB Election – The five sure ways to lose an election are: 1)
asleep at the switch; 2) appointing a committee; 3) concentrating on money and
benefits; 4) industry blind spots; and 5) delegating too much to division or
branches.
G. The Supervisor's Role is the first line of defense for employers when it comes to
the unionizing effort. Supervisors need some special training because they can
discover the early signs of union activity or they can inadvertently take actions
that hurt their employers’ union-related efforts. Supervisors must be knowledge
about what they can and can’t do to legally hamper organizing activities.

NOTES
Educational Materials to Use
H. Rules Regarding Literature and Solicitation – Employers can do the following:
always bar nonemployees from soliciting during their work time (when the
employee is on duty and not on a break); usually stop employees from soliciting
other employees for any purpose if one or both employees are on paid-duty time
and not on a break; bar nonemployees from the building’s interiors and work
areas as a right of private property owners (excluding retail stores, shopping
centers, and certain other employers); sometimes bar nonemployees from
exterior private areas if there is a business reason and the reason is not just to
interfere with union organizers; and deny on-or off-duty employees access to
interior or exterior areas only if they can show the rule is required for reasons of
production, safety, or discipline. Such restrictions are only valid if the employer
doesn’t discriminate against the union.
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I.

IV.
Decertification Elections: When Employees Want to Oust Their Union – The
same law that grants employees the right to unionize also gives them a way to
legally terminate their union’s right to represent them, which is known as
decertification. Decertification campaigns don’t differ much from certification
campaigns.
NOTES
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Educational Materials to Use
The Collective Bargaining Process
A. What is Collective Bargaining? Collective bargaining, according to the National
Labor Relations Act, “is the performance of the mutual obligation of the employer
and the representatives of the employees to meet at reasonable times and confer
in good faith with respect to wages, hours, and terms and conditions of
employment, or the negotiation of an agreement, or any question arising
thereunder, and the execution of a written contract incorporating any agreement
reached if requested by either party, but such obligation does not compel either
party to agree to a proposal or require the making of a concession.”
B.
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What is Good Faith? Good faith (the cornerstone of effective management
relations) in collective bargaining means that both parties communicate and
negotiate, that proposals are matched with counterproposals, and that both
parties make every reasonable effort to arrive at an agreement.
1.
When is Bargaining Not In Good Faith? A violation of the requirement for
good faith bargaining may include the following: surface bargaining;
inadequate concessions; inadequate proposals and demands; dilatory
tactics; imposing conditions; making unilateral changes in conditions;
bypassing the representative; committing unfair labor practices during
negotiations; withholding information; and ignoring bargaining items.
C. The Negotiating Team – Both union and management send a negotiating team,
who has done its homework, to the bargaining table.
D. Bargaining Items – Labor law sets out categories of items that are subject to
bargaining: mandatory, voluntary, and illegal items. Mandatory items are items
that a party must bargain over if they are introduced by the other party.
Voluntary (permissible) items are neither mandatory or illegal; they become a
part of the negotiations only through the joint agreement of both management
and union. Illegal items are forbidden by law.

NOTES
Educational Materials to Use
E. Bargaining Stages include: 1) each side presents its demands; 2) there is a
reduction of demands; 3) the parties form joint subcommittees to try to work out
reasonable alternatives; 4) the parties reach an informal settlement, and each
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group goes back to its sponsor; and 5) once everything is in order, the parties
fine-tune and sign a formal agreement.
1.
Hints on Bargaining: be sure you have set clear objectives for every
bargaining item and you understand on what grounds the objectives are
established; do not hurry; when in doubt, caucus with your associates; be
well prepared with firm data supporting your position; always strive to keep
some flexibility in your position; don’t just concern yourself with what the
other party says and does – find out why; respect the importance of face
saving for the other party; constantly be alert to the real intentions of the
other party with respect not only to goals but also priorities; be a good
listener; build a reputation for being fair but firm; learn to control your
emotions - don’t panic; be sure as you make each bargaining move that you
know its relationship to all other moves; measure each move against your
objectives; pay close attention to the wording of every clause negotiated;
remember that collective bargaining negotiations are, by their nature, part of
a compromise process; try to understand people and their personalities; and
consider the impact of present negotiations on those in future years.
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F. Impasses, Mediation, and Strikes
1.
Impasse Defined – An impasse occurs when the parties are not able to move
further toward settlement.
2.
Third Party Involvement – Three types of third-party interventions are used to
overcome an impasse: mediation, fact-finding, and arbitration. With
mediation a neutral third party tries to assist the principals in reaching
agreement. A fact finder is a neutral party who studies the issues in a
dispute and makes a public recommendation of what a reasonable
settlement ought to be. Arbitration (binding or unbinding) can guarantee a
solution to an impasse because the arbitrator often has the power to
determine and dictate the settlement terms.
3. Strikes are a withdrawal of labor. There are four types of strikes: economic
strike, unfair labor practice strike, wildcat strike, and sympathy strike.
Aneconomic strike results from a failure to agree on the terms of a contract
that involve wages, benefits, and conditions of employment. Unfair labor
practice strikes are called by unions to protest illegal conduct by the
employer. A wildcat strike is an unauthorized strike occurring during the term
of a contract. Picketing is one of the first activities occurring during a strike.

NOTES
4.
Educational Materials to Use
Preparing for the Strike – The following guidelines can minimize confusion:
pay all striking employees what you owe them on the first day of the strike;
secure the facility; notify all customers; contact all suppliers and other
persons with whom you do business who will have to cross the picket line;
make arrangements for overnight stays in the facility and for delivered meals
in case the occasion warrants such action; notify the local unemployment
office of your need for replacement workers; photograph the facility before,
during, and after picketing; record all facts concerning strikers’ demeanor and
activities, and such incidents as violence, threats, mass pickets, property
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damage, or problems; and gather the following evidence – number of pickets
and their names; time, date, and location of picketing; wording on every sign
carried by pickets; and descriptions of pickets cars and license numbers.
4. Other Alternatives to break an impasse include corporate campaigns and
lockouts. A corporate campaign is an organized effort by the union that
exerts pressure on the corporation by pressuring the company’s other unions,
shareholders, directors, customers, creditors, and government agencies,
often directly. A lockout is a refusal by the employer to provide opportunities
to work.
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G. The Contract Agreement Itself may be 20 - 30 pages or longer, and the main
sections cover these subjects: 1) management rights, 2) union security and
automatic payroll dues deduction, 3) grievance procedures, 4) arbitration of
grievances, 5) disciplinary procedures, 6) compensation rates, 7) hours of work
and overtime, 8) benefits: vacations, holidays, insurance, pensions, 9) health and
safety provisions, 10) employee security seniority provisions, and 11) contract
expiration date.
1.
Strategic HR – Amazon.com expansion strategy of company owned call
centers and distribution centers probably contributed to the union’s effort to
organize its workers. In pursuing its profitability strategy, Amazon closed the
union-targeted call center.
H. Changes to Expect After Being Unionized: restricted management’s freedom of
action; union pressure for uniformity of treatment of all employees; one
spokesperson required to be used for the employees; centralization of labor
relations decision making; and more systematized, centralized, and sophisticated
HR policies and practices.

V.
NOTES
Educational Materials to Use
Contract Administration: Grievances
A. The Important Role of Contract Administration – The labor contract’s grievance
procedure is the vehicle for administering the contract on a day-to-day basis.
The grievance process allows both parties to interpret and give meaning to
various clauses, and transforms the contract into a living organism.
B. What Are the Sources of Grievances? Employees may use just about any factor
involving wages, hours, or conditions of employment as the basis of a grievance.
1.
Always Ask: What Is the Real Problem? A grievance is often just a symptom
of an underlying problem.
C. The Grievance Procedure is specified in most collective bargaining contracts,
which specifies the various steps in the procedure, time limits associated with
each step, and specific rules. Union grievance procedures differ from firm to
firm.
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D. Guidelines for Handling Grievances
1.
2.

VI.
NOTES
Developing the Proper Environment starts with your ability to recognize,
diagnose, and correct the causes of potential employee dissatisfaction before
they become formal grievances.
Some Guidelines: Do's and Don'ts – As a manager, do: investigate and
handle each and every case as though it may eventually result in an
arbitration hearing; talk with the employee about his/her grievance; require
the union to identify specific contractual provisions allegedly violated; comply
with the contractual time limits of the company for handling the grievance;
visit the work area of the grievance; determine whether there were any
witnesses; examine the grievant’s personnel record; fully examine prior
grievance records; treat the union representative as your equal; hold your
grievance discussions privately; and fully inform your own supervisor of
grievance matters. Don’t: discuss the case with the union steward alone the grievant should be there; make arrangements with individual employees
that are inconsistent with the labor arrangement; hold back the remedy if the
company is wrong; admit the binding effect of a past practice; relinquish to
the union your rights as a manager; settle grievances on the basis of what is
fair, stick to the labor agreement; bargain over items not covered by the
contract; treat as subject to arbitration claims demanding the discipline or
discharge of managers; give long written grievance answers; trade a
grievance settlement for a grievance withdrawal; deny grievances on the
premise that your “hands have been tied by management;” nor agree to
informal amendments in the contract.
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Educational Materials to Use
The Future of Unionism
A. Unions Fall On Hard Times – The rolls dropped steeply in the 1980s. Some of
the factors that contributed to the decline include: declining proportion of bluecollar jobs and a rising proportion of service-sector and white-collar service jobs;
permanent layoff of hundreds of thousands of union members; the permanent
closing of company plants; the relocation of companies to nonunion settings;
mergers and acquisitions; deregulation; and double-breasting.
B. What's Next for Unions? Unions will change how they operate and see
themselves. Unions are increasingly going after ownership and control of
companies. Unions are aggressively organizing service-oriented industries.
They are encouraging cooperative labor-management agreements and entering
into cooperative pacts with employers. Unions are becoming more aggressive
and sophisticated in how they present themselves to the public.
C. Employee Participation Programs and Unions – Research seems to suggest that
worker participation programs don’t seem to be the threat union leaders fear they
may be.
This HR.NET feature shows how the Internet is revolutionizing various union
activities.
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D. Are Employee Participation Programs Unfair Labor Practices? Employee
participation programs are now subject to serious legal challenge under the
NLRA as unfair labor practices because they may be viewed as sham unions.
Whether an employer’s participation program is viewed as an impermissible labor
organization revolves around the dominance and the actual role of the
participation committee.
1.

NOTES
Instituting “Safe” Participation Programs can be facilitated by taking the
following steps: involve employees in the formation of these programs to the
greatest extent practical; continually emphasize to employees that the
committees exist for the exclusive purpose of addressing issues such as
quality and productivity; do not try to establish such committees at the same
time union organizing activities are beginning in your facility; fill the
committees with volunteers rather than elected employee representatives,
and rotate membership to ensure broad employee participation; and
minimize your participation in the committees’ day-to-day activities, to avoid
unlawful interference or, worse, the perception of domination.
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Educational Materials to Use
KEY TERMS
closed shop
A form of union security in which the company can hire only union
members. This was outlawed in 1947 but still exists in some industries
(such as printing).
union shop
A form of union security in which the company can hire nonunion people,
but they must join the union after a prescribed period of time and pay
dues. (If they do not, they can be fired.)
agency shop
A form of union security in which employees who do not belong to the
union must still pay union dues on the assumption that union efforts
benefit all workers.
open shop
Perhaps the least attractive type of union security from the union's point
of view, the workers decide whether or not to join the union; and those
who join must pay dues.
Norris-LaGuardia Act
(1932)
This law marked the beginning of the era of strong encouragement of
unions and guaranteed to each employee the right to bargain collectively
"free from interference, restraint, or coercion."
National Labor Relations
(or Wagner) Act (1935)
This law banned certain types of unfair labor practices and provided for
secret-ballot elections and majority rule for determining whether or not a
firm's employees want to unionize.
National Labor Relations
The agency created by the Wagner Act to investigate unfair labor
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Board (NLRB)
practice charges and to provide for secret-ballot elections and majority
rule in determining whether or not a firm's employees what a union.
Taft-Hartley Act (1947)
Also known as the Labor Management Relations Act, this law prohibited
union unfair labor practices and enumerated the rights of employees as
union members. It also enumerated the rights of employers.
national emergency
strikes
Strikes that might "imperil the national health and safety."
Landrum-Griffin Act
(1959)
The law aimed at protecting union members from possible wrongdoing
on the part of their unions.
union salting
Refers to a union organizing tactic by which workers who are in fact
employed full-time by a union as undercover organizers are hired by
unwitting employers.
authorization cards
In order to petition for a union election, the union must show that at least
30% of employees may be interested in being unionized. Employees
indicate this interest by signing authorization cards.
bargaining unit
The group of employees the union will be authorized to represent.
decertification
Legal process for employees to terminate a union’s right to represent
them.
collective bargaining
The process through which representatives of management and the
union meet to negotiate a labor agreement.
good faith bargaining
Both parties making every reasonable effort to arrive at agreements;
proposals are being matched with counterproposals.
voluntary bargaining
items
Items in collective bargaining over which bargaining is neither illegal nor
mandatory--neither party can be compelled against its wishes to
negotiate over those items.
illegal bargaining items
Items in collective bargaining that are forbidden by law; for example, the
clause agreeing to hire "union members exclusively" would be illegal in a
right-to-work state.
mandatory bargaining
Items in collective bargaining that a party must bargain over if they are
introduced by the other party--for example, pay.
impasse
Collective bargaining situation that occurs when the parties are not able
to move farther toward settlement, usually because one party is
demanding more than the other is willing to offer.
mediation
Intervention in which a neutral third party tries to assist the principals in
reaching agreement.
fact finder
A neutral party who studies the issues in a dispute and makes a public
recommendation for a reasonable settlement.
arbitration
The most definitive type of third-party intervention, in which the arbitrator
usually has the power to determine and dictate the settlement terms.
240
strike
A withdrawal of labor.
economic strike
A strike that results from a failure to agree on the terms of a contract that
involve wages, benefits, and other conditions of employment.
unfair labor practice
strike
A strike aimed at protesting illegal conduct by the employer.
wildcat strike
An unauthorized strike occurring during the term of a contract.
sympathy strike
A strike that takes place when one union strikes in support of another.
picketing
Having employees carry signs announcing their concerns near the
employer’s place of business.
corporate campaign
An organized effort by the union that exerts pressure on the corporation
by pressuring the company’s other unions, shareholders, directors,
customers, creditors, and government agencies, often directly.
boycott
the combined refusal by employees and other interested parties to buy or
use the employer's products.
inside games
Union efforts to convince employees to impede or to disrupt production –
for example, by slowing the work pace.
lockout
A refusal by the employer to provide opportunities to work.
injunction
A court order compelling a party or parties either to resume or to desist
from a certain action.
grievance
Any factor involving wages, hours, or conditions of employment that is
used as a complaint against the employer.
DISCUSSION QUESTIONS
1.
Why are unions formed? What are the advantages and disadvantages of being a union
member? Workers form unions because they tend to believe that it is only through unity that they
can get their fair share of the pie and also protect themselves from management’s whims. Some of
the advantages of being a union member are that they tend to receive significantly more pay,
holidays, sick leave, unpaid leave, insurance plan benefits, long-term disability benefits, and various
other benefits than do nonunion members. One disadvantage of being a union member is that
management may decide to terminate union jobs if management and the union can’t come to an
agreement.
2. Discuss five sure ways to loose an NLRB election. The five sure ways to loose an election are
listed and described in the text: 1) asleep at the switch; 2) appointing a committee; 3) concentrating
on money and benefits; 4) industry blind spots; and 5) delegating too much to divisions or branches.
3. Describe important tactics you would expect the union to use during the union drive and
election. Contacting and soliciting employees off the job and during breaks, picketing, using
consultants to improve their public image, advertising, news spots, and forming an organizing
committee of employees who they feel will be good leaders.
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4. Briefly explain why labor law has gone through a cycle of repression and encouragement.
Labor law has gone through cycles of repression and encouragement because of the changing views
in congress, the public, and the judiciary on the extent to which legalized collective bargaining is
deemed to be a good approach to the economic situation facing the country as well as the views of
personal and corporate rights. Changing public attitudes, values, and economic conditions clearly
impact labor law, just as they impact law in every area.
5. Explain in detail each step in a union drive and election. Each step is described in detail in the
text: 1) initial contact involves the union determination of the employees' interest in organizing and
forming an organizing committee; 2) obtaining authorization cards is where the union seeks to obtain
enough signatures on authorization cards to petition the NLRB to conduct an election; 3) holding a
hearing is done by the NLRB to determine the appropriate bargaining unit and the legality of the
authorization cards; 4) the campaign is where both sides present the issues to convince employees to
vote one way or the other; and 5) the election is conducted by the NLRB and is by secret ballot.
6. What is meant by good faith bargaining? When is bargaining not in good faith? Good faith
bargaining means that both parties are communicating and negotiating, and proposals are being
matched with counterproposals with both parties making every reasonable effort to arrive at
agreements. Examples of violations of good faith bargaining include: surface bargaining; inadequate
concessions; inadequate proposals and demands; dilatory tactics; imposing conditions; making
unilateral changes in conditions; bypassing the representative; committing unfair labor practices
during negotiations; withholding information; and ignoring bargaining items.
7. Define impasse, mediation, and strike, and explain the techniques that are used to overcome
an impasse. Impasse occurs when the parties are not able to move further toward settlement.
Mediation is intervention in which a neutral third party tries to assist the principals in reaching
agreement. A strike is the withdrawal of labor. An impasse might be overcome through mediation,
fact-finders, arbitration, or the economic pressures of a strike or lock-out.
DESSLER COMPANION WEB SITE
We invite you to visit the Dessler homepage (http://www.prenhall.com/dessler) on the
Prentice Hall Web site for the best online business support available. This site
provides professors with a customized course Web site, including new
communication tools, one-click navigation of chapter content, and great resources,
such as Internet Resources, an HRCI Exam Prep Guide, assessment exercises, and
more.
INDIVIDUAL AND GROUP ACTIVITIES
1. You are a supervisor in a small manufacturing plant. The union contract covering most of
your employees is about to expire. Working individually or in groups, discuss how to prepare
for union contract negotiations. You need to know what is good faith bargaining and what
constitutes a violation of good faith bargaining. Although as a supervisor you will not likely be
involved in the negotiations, you can commit violations of good faith bargaining like making a
unilateral change in working conditions, or the commission of an unfair labor practice. Also you need
to be a vehicle to give information about employee attitudes and concerns to those conducting the
bargaining. The list given in the chapter provides a good summary of how to prepare for bargaining.
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2. Working individually or in groups, use Internet resources to find situations where company
management and the union reached an impasse at some point during their negotiation
process, but eventually resolved the impasse. Describe the issues of both sides that led to
the impasse. How did they move past the impasse? What were the final outcomes? The
students should be able to find several examples in the airline industry, professional sports industry,
and the package delivery industry just to mention a few.
EXPERIENTIAL EXERCISES & CASES
Experiential Exercise: Union Organizing
This exercise sets up a situation in which a supervisor has reported to the HR director that there have
been unionization efforts in her department. She describes what has happened, what employees have
said, and what other supervisors have said and done. The question for the students is what should HR
Director Art Tipton do next.
The most pressing issue to deal with right away is the apparent fact that supervisors are engaging in
unfair labor practices. Art must hold a meeting with supervisors immediately to instruct them in what they
can and cannot do. The lists of items are in the chapter. After everyone has been instructed on what
they can and cannot do, the organization can turn to the issue of how to avoid becoming unionized.
There are two lists in the text that can help with this issue: “How to Loose an NLRB Election” as well as
“Guidelines for Employers Wishing to Stay Union-Free.”
Application Case: Disciplinary Action
1. As the arbitrator, do you think the employer had just cause to discipline the employee? Why
or why not? No, the employer did not have just cause. The task of directing and ordering
employees to perform tasks is a management function and is not a union task. Management
abrogated its responsibilities in asking the union to do a task that is a reserved management right and
duty.
2. If the union's opposition to the Quest for Quality program encouraged the employees not to
participate, why shouldn't the union be held responsible for directing the employees to
attend? As stated in the previous question, directing employees is a management duty and right, it is
not one that can be abrogated to the union at will. Management should direct the employees to
attend, and then discipline them if they do not. The union is not required to be supportive of all
management programs or directions.
Continuing Case: LearnInMotion.com
Keeping a Watchful Eye Out for the Union
1. Use the Internet to determine if the union mentioned above or any other union organized or
tried to organize a dot-com in the New York area in the past two years. The students should
search business and labor relations journals and sources on the Web for articles on union activity at
dot-com companies in the New York area.
2. Produce a one-page position paper for us on the subject “concrete steps we can take today to
avoid being unionized tomorrow.” The students should incorporate all the relevant topics
presented in the chapter, and tailor the paper to be applicable to this small dot-com company.
3. How can we tell we’re in the first, early stages of an organizing campaign? How can we find
out for sure? The students should describe the process discussed in the union drive and election
section of the chapter.
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