Chapter 9: Managing Labor
Relations and Collective
Bargaining
Unions: The Labor Movement
Union: an organized group of workers who collectively use their strength to
have a voice in their workplace.
Why They Organize: Higher pay, managerial mistreatment, availability of an
effective union
According to Bureau of Labor Statistics:
Decline: 20.1% in 1983 to 11.1 in 2014
Private Sector Union Membership: 6.6% in 2014
Public Sector Union Membership: 35.7% in 2012; decreased bargaining rights
Union Security
Union Security: Acting as firm’s worker’s representative and exclusive
bargaining agent for all employees in the unit.
1. Closed Shop: Company can hire only union members; illegal in 1947
1. Union Shop: co. can hire nonunion people, but they must join union after
certain period and pay dues
1. Agency Shop: all employees( union or not) must pay dues
1. Preferential Shop: Union members get preference in hiring
1. Maintenance of Membership Agreement: Employee do not have to belong
to union. Existing union members must maintain membership for contract
period.
Unions and the Law
Wagner Act(1935): Banned certain unfair labor practices, provided secret-ballot
election and majority rule when determining unionization of a firm’s employees,
and created the National Labor Relations Board.
Taft Hartley Act(1947): Introduced Right-To-Work Laws in 19 States, employers
given full freedom to express their views of union organization.
Right to Work Laws: state statutory or provision banning requirement of
union membership as a condition of employment.
● Outlaw any type of Union Security within designated state
Handling Grievances
Grievance Process: Not to be used to renegotiate contract points
➔ Wages, hours & conditions of employment = basis for grievances
◆ Ex: Cleveland Browns and American Postal Workers Union
➔ Typically multistep procedure + appeal process
➔ In the case a contingency is not covered, contract administration
➔ Interpersonal relations influence team’s grievance rate
How to Handle a Grievance
DO:
DONT:
● Handle every case as if it may
result in hearing
● Require union to specify
provisions violated
● Establish any witnesses
● Inform supervisor of grievance
matters
● Hold back remedy if company is
wrong
● Stray from labor agreement
● Trade settlement for withdrawal
● Relinquish your rights as
manager
The Union Drive and Election
Means by which employees can vote for or against union
representation.
5 steps:
1. Initial Contact
2. Authorization cards
3. Hearing
4. Campaign
5. Election
Initial Contact
Union gauges employee interest
Initiative can come from employees or unions
● Unions may or may not already represent employees of the firm
Guidelines:
● Cannot endanger employees’ performance or safety
● Union-employee meetings generally take place outside the workplace
Union salting
Authorization Cards
Union must prove sufficient interest to NLRB - 30%
This stage: union vs. management
● Must advocate their side
NO threats, bribes, or coercion
No retroactive policies by management
The Hearing (or not)
3 possible outcomes of authorization cards:
1. Firm does not contest union recognition
2. Firm does not contest union’s right to an election
3. Firm does contest union’s right to an election
NLRB sends hearing officer
Bargaining unit
The Campaign
Union and employer appeal to employees for their votes
Union:
● improve working conditions
● raise wages
● increase benefits
● make work more rewarding
Management:
● improvements don’t require unions
● wages are better than with a union
● Cost of union dues
● possible strikes
● “outsider”
● ethical, moral attacks on unions
The Campaign
Acronyms for proper and improper behavior during a campaign:
● TIPS: avoid these behaviors ● FORE: perform these behaviors
○
○
○
○
Threaten
Interrogate
make Promises to
Spy on employees
○
give Facts
○
express Opinions
○
explain Rules
○
share Experiences
Supervisors can prohibit
● solicitation during work hours
● entry onto workspace (depends on type of firm)
● employee entry onto workspace if can prove rule is required for reasons of
production, safety, discipline
The Election
May be held 30-60 days after NLRB issues Decision and Direction of Election
Union victory less likely with more voters
Union needs a majority of votes cast, not majority of workers in bargaining unit
Violation of unfair labor practices can result in overturning the election
Decertification
What’s Next for Unions?
40 Years Later: Union membership has declined 67% since 1975
➔ Reasons for decline: blue-collar workers, globalization, deregulations
Free Choice Act: persuade employers not to inhibit formation of new unions
➔ new means of union recognition → “Card Check” system
➔ class action lawsuits for non-unionized companies
Cooperative clauses: joint committees to review drug problems/safety issues
Collective & Good Faith Bargaining
Collective Bargaining: both management and labor are
required by law to negotiate wages, hours, and terms
of employment “in good faith”
Good Faith Bargaining: proposals must be matched
with counterproposals and both parties make every
reasonable effort to arrive at an agreement - neither
party is compelled to agree to a proposal
When is bargaining NOT in good
faith?
1. Proposals and Demands
-advancement of proposals are considered positive factors
1. Withholding Information
and
-management failing to provide usable info on wages, hours,
other terms of employment
1. Dilatory Tactics
-must meet at reasonable times and intervals
1. Unilateral changes in conditions
-strong indication of employer not bargaining with the intent to
reach an agreement
Bargaining Items
Mandatory: wages, hours, rest periods, layoffs, transfers, etc.
Voluntary: through joint agreement of management and union
Illegal: forbidden by law
Negotiating Guidelines
-set clear objectives
-do not rush the process
-be well prepared with supporting data
-always strive for some felxibility
-constantly be alert of opposite party’s true
intention
-consider the impact of present negotiation
on future operations
Impasses and Strikes
-Impasses: usually occurs because one
party demands more that the other offers
-Strikes: withdrawal of labor
1.economic strike
2.unfair labor practice strike
3.wildcat strike - unauthorized during contracted time
4.sympathy strike - in support of another strike
The Boeing Unionization at
South Carolina Plant: April 2015
● Employee needs
● CEO Response
○ contradictory to previous behavior?
● Charges Filed
○ unfair labor tactics
● Likely outcomes
○ State unionization rate= 2.2% of all employees
○ Community Involvement