14
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All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Chapter Objectives
After studying this chapter, you should be able to
Identify and explain the principal federal laws that
provide the framework for labor relations.
Explain the reasons employees join unions.
Describe the process by which unions organize
employees and gain recognition as their
bargaining agent.
Discuss the bargaining process and the
bargaining goals and strategies of a union and an
employer.
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14–2
Chapter Objectives (cont’d)
After studying this chapter, you should be able to
Differentiate the forms of bargaining power that a
union and an employer may utilize to enforce
their bargaining demands.
Describe a typical union grievance procedure
and explain the basis for arbitration awards.
Discuss some of the contemporary challenges to
labor organizations.
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14–3
1
Test Your Labor Relations Know-How
1.
An auto mechanic applied for a job with an automotive dealership. He was denied
employment because of his union membership. Was the employer’s action lawful?
______ Yes ______ No
2. During a labor organizing drive, supervisors questioned individual employees about their
union beliefs. Was this questioning permissible?
______ Yes ______ No
3.
When members of a union began wearing union buttons at work, management ordered the
buttons to be removed. Was management within its rights?
______ Yes ______ No
4.
While an organizing drive was under way, an employer agreed—as a social gesture—to
furnish refreshments at a holiday party. Was the employer acting within the law?
______ Yes ______ No
5.
A company distributed to other antiunion employers in the area a list of job applicants known
to be union supporters. Was the distribution unlawful?
______ Yes ______ No
6.
During a union organizing drive, the owner of Servo Pipe promised her employees a wage
increase if they would vote against the union. Can the owner legally make this promise to
her employees?
______ Yes ______ No
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14–4
1
Test Your Labor Relations Know-How (cont’d)
7.
Employees have the right to file unfair labor practice charges against their employer even
when the organization is nonunion.
______ Yes ______ No
8.
The union wishes to arbitrate a member’s grievance, which management has demonstrated
is completely groundless. Must management arbitrate the grievance?
______ Yes ______ No
9.
John Green, a maintenance engineer, has a poor work record. Management wishes to
terminate his employment. However, Green is a union steward, and he is highly critical of
the company. Can management legally discharge this employee?
______ Yes ______ No
10. During an organizing drive, an office manager expressed strong antiunion beliefs and called
union officials “racketeers,” “big stinkers,” and a “bunch of radicals.” He told employees who
joined the union that they “ought to have their heads examined.” Were the manager’s
comments legal?
______ Yes ______ No
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14–5
Major Labor Laws
• Railway Labor Act (RLA) of 1926
• Norris LaGuardia Act (Anti-Injunction Act)
• Wagner Act (National labor Relations Act) of
1935
• Taft-Harley Act (Labor-Management Relations
Act) of 1947
• Landrum-Griffin Act (Labor-Management
Disclosure Act) of 1959
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14–6
Government Regulation of Labor Relations
• Railway Labor Act (RLA) of 1926
 Purpose of the act is to avoid service interruptions
resulting from disputes between railroads and their
operating unions.
 National Mediation Board
 National Railway Adjustment Board
• Norris-LaGuardia Act of 1932
 Restricts the ability of employers to obtain an
injunction against unions for their lawful activities.
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14–7
Government Regulation of Labor Relations
• Wagner Act (National Labor Relations Act)
of 1935
 Protects employee rights to organize and bargain
collectively through representatives of their choice.
 Created the National Labor Relations Board (NLRB)
to govern labor relations in the United States.

Holds secret ballot union representation elections.

Prevents and remedies unfair labor practices.
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14–8
Wagner (NLRA) Act
• Section 7 of the Act guarantees employee
rights:
 To self-organization, to form, join, or assist labor
organizations, to bargain collectively through
freely chosen representatives.
 To engage in concerted activities, for the purpose
of collective bargaining or other mutual aid or
protection.
 To refrain from any or all of such activities except
to the extent that such right may be affected by an
agreement requiring membership in a labor
organization as a condition of employment.
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14–9
Unfair Labor Practices (ULPs)
• Section 8 of the Wagner Act outlawed employer
practices that deny employees their rights and
benefits:
 Interference with Section 7 rights
 Domination of a union (company union)
 Discrimination against union members
 Arbitrary discharge of union members
 Refusal to bargain with the union
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14–10
Amendments to the Wagner Act
• Taft-Hartley Act (The Labor-Management
Relations Act) of 1947
 Balances rights and duties of labor and management
in collective bargaining by defining unfair union
practices.
 Created the Federal Mediation and Conciliation
Service (FMCS) to help resolve negotiating disputes.
• Landrum-Griffin Act (Labor-Management
Reporting and Disclosure Act) of 1959
 Safeguards union member rights and prevents
racketeering and other unscrupulous practices by
employers and union officers.
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14–11
Unfair Union Practices (Taft-Hartley Act)
• Unions are prohibited from:
 Interfering with Section 7 rights of employees
 Interfering with representation elections
 Influencing employers to discriminate with regard
to union membership
 Refusal to bargain collectively with employer
 Interference with certified employee
representative’s relationship with employer
 Assessment of excessive initiation fees and dues on
bargaining unit members
 “Featherbedding”
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14–12
Bill of Rights of Union Members
(Landrum-Griffin Act)
• Union members have the right to:
 Nominate candidates for union office
 Vote in union elections or referendums
 Attend union meetings
 Participate in union meetings and vote on union
business
 Examine union accounts and records
 Bring suit against union officers as necessary to
protect union funds
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14–13
FIGURE
14.1
The Labor Relations Process
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14–14
Why Employees Unionize
• As a result of their economic needs
(wages and benefits)
• Dissatisfaction with managerial practices
• To fulfill social and status needs.
• Unionism is viewed as a way to achieve results
they cannot achieve acting individually
• To comply with union-shop provisions of the
labor agreement in effect where they work
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14–15
Organizing
Campaigns
Steps in the
Organizing
Process
Employee/Union Contact
Initial Organizational
Meeting
Formation of In-House
Committee
Election Petition and
Voting Preparation
Contract Negotiations
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14–16
2
United Food and Commercial Workers International Union Authorization Card
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14–17
Aggressive Organizing Tactics
• Political Involvement
• Neutrality Agreements
• Organizer Training
• Corporate Campaigns
• Information Technology
Union NOW!!
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14–18
Employer Tactics Opposing Unionization
• Stressing favorable employer-employee relationship
experienced without a union.
• Emphasize current advantages in wages, benefits, or
working conditions the employees may enjoy
• Emphasize unfavorable aspects of unionism: strikes,
union dues, abuses of legal rights
• Use statistics to show that unions commit large
numbers of unfair labor practices.
• Initiate legal action when union members and leaders
engage in unfair labor practices
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14–19
3
Employer “Don’ts” during Union Organizing Campaigns
Union organizing drives are emotionally charged events. Furthermore, labor law,
NLRB rulings, and court decisions greatly affect the behavior and actions of
management and union representatives. During the drive, managers and supervisors
should avoid the following:
• Attending union meetings, spying on employee-union gatherings, or questioning employees
about the content of union meetings
• Questioning present or current employees about their union sentiments, particularly about
how they might vote in a union election
• Threatening or terminating employees for their union support or beliefs
• Changing the working conditions of employees because they actively work for the union or
simply support its ideals
• Supplying the names, addresses, and phone numbers of employees to union representatives
or other employees sympathetic to the union
• Promising employees improvements in working conditions (wage increases, benefit
improvements, and so on) if they vote against the union
• Accepting or reviewing union authorization cards or prounion petitions, because employees’
names are listed on these documents
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14–20
How Employees Become Unionized
• Bargaining Unit
 A group of two or more employees who share
common employment interests and conditions and
may reasonably be grouped together for purposes of
collective bargaining.
• Exclusive Representation
 The legal right and responsibility of the union to
represent all bargaining unit members equally,
regardless of whether employees join the union or
not.
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14–21
4
NLRB
Election
Poster
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14–22
NLRB Representation Election
• Representation Election Process
 Preelection Hearing:

NLRB certifies that 30 percent of eligible employees in
bargaining unit have signed authorization cards and sets
date for election.
 Election:

NLRB conducts secret ballot election. If union wins the
majority of votes in the election, NLRB certifies the union as
the exclusive bargaining unit representative with which the
employer must collectively bargain.
 Certification on Card Check:

If least 50 percent of employees within the bargaining unit
sign authorization cards, then the union may request
recognition by the employer.
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14–23
Impact of Unionization on Managers
• Control of Labor Costs
 Wages and benefits are higher in union
organizations compared to similar nonunion
organizations.
• Challenges to Management Prerogatives
 Unions can have a significant effect on management
decisions about employees.
• Loss of Supervisory Authority
 Unionization restricts the freedom of management
to formulate HR policy unilaterally and can
challenge the authority of supervisors.
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14–24
Structures of Labor Unions
• Craft Unions
 Represent skilled craft workers
• Industrial Unions
 Represent all workers—skilled, semiskilled,
unskilled—employed along industry lines
• Employee Associations
 Represent various groups of professional and white-
collar employees in labor-management relations.
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14–25
Structure of the AFL-CIO
GENERAL BOARD
Executive members and
principal officer of each
international union affiliate
Meets upon call of federation
president of executive council
Standing
committees
Staff
departments
Local unions affiliated
directly with AFL-CIO
Affiliated national and
international unions
Affiliated state bodies
Local unions of national
and international unions
Local bodies
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14–26
Functions of the AFL-CIO
• The “House of Labor”
 Disseminates labor policy developed by leaders of
affiliated unions.
 Coordinates organizing activities among affiliated
unions.
 Provides research and other assistance through its
various departments.
 Lobbies before legislative bodies on labor subjects
 Publicizes the concerns and benefits of unionization
 Resolves disputes between different unions
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14–27
Typical Organization of a Local Union
Local Union Meeting (Normally Monthly)
Business
Representative
President
Secretary/Treasurer
Vice-Presidents
Sergeant at Arms
Various Committee Chairpersons
Training and
Education
Grievance
Committee:
Chief Steward and
Shop Stewards
Collective
Bargaining
Social
Local Union Members
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14–28
Structure and Functions of Local Unions
• Local Officers
 Elected officials who lead the union and serve on
the bargaining committee for a new contract.
• Union Steward
 An employee, as a nonpaid union official,
represents the interests of members in their
relations with management.
• Business Unionism
 The term applied to the goals of U.S. labor
organizations, which collectively bargain wages,
hours, job security, and working conditions.
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14–29
Labor Relations in the Public Sector
• Challenges to Public Sector Unionization:
 No national-level public sector labor relations laws
 Public employees’ wages and working conditions set
by law

Collective bargaining for federal employees governed by
executive orders and the Civil Service Reform Act of 1978

Various public civil service systems address public employee
complaints or grievances
 Substitution of compulsory binding arbitration for
the guaranteed right to strike
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14–30
Types of Arbitration
• Compulsory Binding Arbitration
 A process for employees such as police officers,
firefighters, and others in jobs where strikes cannot
be tolerated to reach agreement.
• Final-offer Arbitration
 The arbitrator must select one or the other of the
final offers submitted by the disputing parties with
the award is likely to go to the party whose final
bargaining offer has moved the closest toward a
reasonable settlement.
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14–31
FIGURE
14.2
The Collective Bargaining Process
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14–32
The Bargaining Process
• Collective Bargaining Process
 The process of negotiating a labor agreement,
including the use of economic pressures by both
parties.
• Bargaining Zone
 Area within which the union and the employer are
willing to concede when bargaining.
• Interest-based Bargaining
 Problem-solving bargaining based on a win-win
philosophy and the development of a positive longterm relationship.
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14–33
The Bargaining Process (cont’d)
• Good Faith Bargaining Requirements
 Meetings to be held at reasonable times and places
to discuss employment conditions.
 Proposals and counterproposals submitted by each
party must be realistic and reasonable.
 Both parties must sign a written document of the
agreement reached through negotiations
• Interest-based Bargaining
 Problem-solving bargaining based on a win-win
philosophy and the development of a positive longterm relationship.
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14–34
Good Faith Bargaining
Bargaining Subject
Categories
Mandatory
Subjects
Permissive
Subjects
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Illegal
Subjects
14–35
FIGURE
14.3
The Bargaining Zone and Negotiation Influences
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14–36
5
Items in a Labor Agreement
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14–37
Management and Union Power in Collective
Bargaining
• Bargaining Power
 The power of labor and management to achieve
their goals through economic, social, or political
influence.
• Union Bargaining Power
 Strikes, pickets, and boycotts
• Management Bargaining Power
 Hiring permanent replacement workers
 Continuing operations staffed by management
 Locking out employees
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14–38
Union Power in Collective Bargaining
Boycott
Our
Employer
This Union
On Strike
Striking
Boycotting
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Picketing
14–39
Employer Power in Collective Bargaining
Management methods for applying
economic pressure during bargaining:
Outsourcing normal work
Locking out workers
Hiring replacement workers
Demanding concessions
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14–40
Union Security Agreements
• Dues Checkoff
 Gives the employer the responsibility of withholding
union dues from the paychecks of union members
who agree to such a deduction.
• “Shop” Agreements
 Require employees to join or support the union.
 Union shop requires employee membership.
 Agency shop allows voluntary membership;
employee must pay union dues and fees.
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14–41
FIGURE
14.4
Five-Step Grievance Procedure
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14–42
Grievance Arbitration
• Rights Arbitration
 Arbitration over interpretation of the meaning of
contract terms or employee work grievances.
• Fair Representation Doctrine
 The doctrine under which unions have a legal
obligation to provide assistance to both members
and nonmembers in labor relations matters.
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14–43
Grievance (Rights) Arbitration
Issues in deciding to use arbitration
as a method for dispute resolution
Use of binding arbitration
Rights arbitration and EEO conflicts
Fair Representation Doctrine
Methods for choosing an arbitrator
Submission agreement and awards
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14–44
The Arbitration Hearing
• The arbitrator declares the hearing open and
obtains the submission agreement.
• Parties present opening statements.
• Each side presents its case using witnesses and
evidence; witnesses can be cross examined.
• Parties make closing statements.
• Arbitrator closes hearing and designates date
and time for rendering the award.
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14–45
The Arbitration Award
• Factors arbitrators use to decide cases:
 The wording of the labor agreement (or
employment policy in nonunion organizations).
 The submission agreement (statement of problem
to be solved) as presented to the arbitrator.
 Testimony and evidence offered during the hearing.
 Arbitration criteria or standards (similar to
standards of common law) against which cases are
judged.
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14–46
Contemporary Challenges
to Labor Organizations
Issues confronting unions
Foreign competition and
technological change
The long-term decrease in
union membership
Employers’ focus on
maintaining nonunion status
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14–47
arbitrator
fair representation doctrine
authorization card
grievance procedure
bargaining power
industrial unions
bargaining unit
interest-based bargaining
bargaining zone
labor relations process
business unionism
rights arbitration
collective bargaining process
unfair labor practices (ULPs)
craft unions
union shop
employee associations
union steward
exclusive representation
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14–48