The Dynamics of
Labor Relations
The Challenges of Human Resources Management
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1–1
Test Your Labor Relations Know-How
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Test Your Labor Relations Know-How (cont.)
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36
The Labor Movement
1790
Skilled craftsmen organize into trade unions.
1869
The Knights of Labor seek social and political reform.
1886
American Federation of Labor pursues bread-and-butter
issues and improved working conditions.
1935
National Labor Relations Act fosters organizing
and the rapid growth of labor unions.
1947
Taft-Hartley Act regulates union activities.
1955
AFL and CIO merge.
1970s
Union membership peaks and begins to steadily decline.
15–4
The AFL-CIO
• The American Federation of Labor and Congress
of Industrial Organizations (AFL-CIO)
 A voluntary federation of about 56 national and
international labor unions in the United States
• Structure of the AFL-CIO
 Local unions
 National unions
 National federation
• Change to Win Coalition
 Six large unions that split from the AFL-CIO
15–5
Structure and Functions 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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Structure and Functions of the AFL-CIO (cont.)
• 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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36
Structure and Functions of National Unions
• National Unions


•
set the broad guidelines for governing union members and for
formulating collective bargaining goals in dealing with
management
establishes the rules and conditions under which the local
unions may be chartered
Other services:
1.
2.
3.
4.
5.
training of union leaders,
legal assistance,
leadership in political activity,
educational and public relations programs, and
discipline of union members.
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36
Structure and Functions of Local Unions
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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Structure and Functions of Local Unions (cont.)
• 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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36
Why Employees Unionize
• As a result of their economic needs
(wages and benefits)
• Dissatisfaction with managerial practices
• To fulfill social and status needs.
• Social and leadership concerns
• Conditions favoring employee organization

Low morale

Fear of job loss

Arbitrary management actions
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36
What Do Unions Want?
Union Bargaining Aims
Increased workplace
security for the union
Improved wages, hours,
working conditions, job
security, and benefits
15–12
Union Security
Types of Union Security
Closed
shop
Union
shop
Agency
shop
Open
shop
Membership
maintenance
15–13
Union Security (cont’d)
• Right to Work Laws
 Section 14(b) of the Taft-Hartley Act

Permits states to ban the requirement of union
membership as a condition of employment and
to forbid the negotiation of compulsory union
membership provisions.
 Twenty-three “right to work” states ban all forms
of union security which greatly inhibits union
formation in those states.
15–14
Union Avoidance Practices
• Pay
• Promote more employees from within
• Conduct cultural audits
• Offer job rotations and training programs
• Share information with employees
• Have desirable working conditions
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15 of 46
36
Government Regulation of Labor Relations
• Major Labor Laws



Railway Labor Act (RLA) of 1926
Norris LaGuardia Act (Anti-Injunction Act)
Wagner Act (National labor Relations Act) of 1935
– National Labor Relations Board


Taft-Harley Act (Labor-Management Relations Act)
of 1947
Landrum-Griffin Act (Labor-Management Disclosure
Act) of 1959
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36
Government Regulation of Labor Relations (cont.)
• 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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36
Wagner (NLRA) Act
• 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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36
Wagner (NLRA) Act
(cont.)
• 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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36
Unfair Employer Labor Practices
• To “interface with, restrain, or coerce employees”
in exercising their right of self-organization
• To dominate or interfere with either the formation
or the administration of labor unions
• To discriminate against employees for legal union
activities
• To discharge or discriminate against employees who
file unfair practice charges against the company
• To refuse to bargain collectively with their
employees’ representatives
15–20
Wagner (NLRA) Act
(cont.)
• 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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36
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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36
Taft-Hartley Act (Unfair Union Practices )
• 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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36
Landrum-Griffin Act
(Bill of Rights of Union Members)
• 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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The Labor Relations Process
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The Union Drive and Election
• Step 1. Initial Contact
 The union determines employees’ interest in
organizing, and sets up an organizing committee.

Labor relations consultants

Union salting
• Step 2. Obtaining Authorization Cards
 30% of eligible employees in an appropriate
bargaining unit must sign cards authorizing
the union to petition the NLRB for an election.
15–26
The Organizing Drive
• Obtaining Authorization Cards
 Let the union seek a representation election.
 Designate the union as a bargaining
representative in all employment matters.
 State that the employee has applied
for membership in the union and will
be subject to union rules and bylaws.
 Can be collected and distributed by unions
through the Internet.
15–27
United Food and Commercial Workers
International Union Authorization Card
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36
The Organizing Drive (cont’d)
• Employer Responses to Organizing
 Can attack the union on ethical and moral grounds
and cite the cost of union membership
 Cannot make promises of benefits
 Cannot make unilateral changes in terms and
conditions of employment that were not planned
to be implemented prior to the onset of union
organizing activity
 Can inform employees of their right to revoke
their authorization cards
15–29
The Organizing Drive (cont’d)
• Union Activities During Organizing
 Unions can picket the firm, subject to three constraints:

It must file a petition for an election within 30 days
after the start of picketing.

The firm cannot already be lawfully recognizing
another union.

There cannot have been a valid NLRB election
during the past 12 months.
15–30
The Union Drive and Election (cont’d)
• Step 3. Hold a Hearing
 Consent election

Employer chooses not to contest union recognition at all.
 Stipulated election

The employer chooses not to contest:
– The union’s right to an election
– Scope of the bargaining unit
– Which employees are eligible to vote in the election
 Contesting the union’s right to an election

An employer can insist on an NLRB hearing to determine
if employees wish to elect a union to represent them.
15–31
The Labor Relations Process
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36
NLRB Form 852:
Notice of
Representation
Hearing
15–33
NLRB Hearing Officer’s Duties
• Determining if the record indicates there
is enough evidence to hold an election
 Did 30% of the employees in an appropriate
bargaining unit sign the authorization cards?
• Deciding what the bargaining unit will be
 The bargaining unit is the group of employees
that the union will be authorized to represent
and bargain for collectively.
15–34
The Union Drive and Election (cont’d)
• Step 4. The Campaign
 Both sides present their platforms.
• Step 5. The Election
 Held within 30 to 60 days after the NLRB issues
its Decision and Direction of Election.
 The election is by secret ballot; the NLRB provides
and counts the ballots.
 The union becomes the employees’ representative
by getting a majority of the votes cast in the election.
15–35
Sample NLRB Ballot
15–36
How to Lose a NLRB Election
• Reason 1.
• Reason 2.
• Reason 3.
• Reason 4.
• Reason 5.
Asleep at the Switch
Appointing a Committee
Concentrating on Money and Benefits
Industry Blind Spots
Delegating Too Much to Divisions
15–37
The Union Drive and Election (cont’d)
• The Supervisor’s Role
 Unfair labor practices by supervisors:

Could cause the NLRB to hold a new election after the
company has won a previous election.

Could cause the company to forfeit the second election and
go directly to contract negotiation.
15–38
Union Avoidance: What Not to Do
Human resources professionals must be very careful to do
the following during union activities at their firms:
• Watch what you say. Angry feelings of the moment may get you in trouble.
• Never threaten workers with what you will do or what will happen if a union comes in. Do not say, for example, that
the business will close or move, that wages will go down or overtime will be eliminated, that there will be layoffs, etc.
• Don’t tell union sympathizers that they will suffer in any way for their support. Don’t terminate or discipline workers
for engaging in union activities.
• Don’t interrogate workers about union sympathizers or organizers.
• Don’t ask workers to remove union screensavers or campaign buttons if you allow these things for other organizations.
• Don’t treat pro-union or anti-union workers any differently.
• Don’t transfer workers on the basis of union affiliation or sympathies.
• Don’t ask workers how they are going to vote or how others may vote.
• Don’t ask employees about union meetings or any matters related to unions. You can listen, but don’t ask for details.
• Don’t promise workers benefits, promotions, or anything else if they vote against the union.
• Avoid becoming involved—in any way—in the details of the union’s election or campaign, and don’t participate
in any petition movement against the union.
• Don’t give financial aid or any support to any unions.
Any one of these practices may result in a finding of “unfair labor practices,” which may
in turn result in recognition of a union without an election, as well as fines for your firm.
15–39
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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Employer “Don’ts” during Union Organizing
Campaigns
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36
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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36
The Collective Bargaining Process
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36
The Bargaining Process
• Collective Bargaining Process

The process of negotiating a labor agreement,
including the use of economic pressures by both
parties.
–
–
–
–
Preparing for Negotiations
Gathering Bargaining Data
Developing Bargaining Strategies and Tactics
Negotiating the Labor Agreement
• Bargaining Zone

Area within which the union and the employer are
willing to concede when bargaining.
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36
The Bargaining Process
(cont.)
• 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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36
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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Bargaining Items
Mandatory
Permissible
Illegal
Rates of pay
Wages
Hours of employment
Overtime pay
Shift differentials
Holidays
Vacations
Severance pay
Pensions
Insurance benefits
Profit-sharing plans
Christmas bonuses
Company housing, meals,
and discounts
Employee security
Job performance
Union security
Management–union
relationship
Drug testing of employees
Indemnity bonds
Management rights as to union
affairs
Pension benefits of retired
employees
Scope of the bargaining unit
Including supervisors in the
contract
Additional parties to the
contract such as the
international union
Use of union label
Settlement of unfair labor
charges
Prices in cafeteria
Continuance of past contract
Membership of bargaining team
Employment of strike breaker
Closed shop
Separation of employees
based on race
Discriminatory treatment
15–48
Administration of the Labor Agreement
• The bulk of labor relations activity comes from the
day-to-day administration of the agreement because
no agreement could possibly anticipate all the forms
that disputes may take.
• Once the agreement is signed, each side will
naturally interpret ambiguous clauses to its own
advantage. These differences are traditionally
resolved through the grievance procedure.
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36
Grievances
• Grievance
 Any factor involving wages,
hours, or conditions of
employment that is used
as a complaint against the
employer
• Sources of Grievances
 Discipline
 Seniority
 Job evaluations
 Work assignments
 Overtime
 Vacations
 Incentive plans
 Holiday pay
 Problem employees
 Absenteeism
 Insubordination
 Plant rules
15–51
Sample Online
Grievance Form
15–52
Grievance Procedure
• Grievant and shop steward meet with supervisor.
 If not resolved, employee files formal grievance
• Grievant and shop steward meet with supervisor’s boss.
 If grievance is not resolved, meeting with higher-level managers.
• If not resolved, matter goes to arbitration.
15–53
Handling Grievances: Do
1. Investigate and handle each case as though it may eventually
result in arbitration.
2. Talk with the employee about his or her grievance; give the
person a full hearing.
3. Require the union to identify specific contractual provisions
allegedly violated.
4. Comply with the contractual time limits for handling the grievance.
5. Visit the work area of the grievance.
6. Determine whether there were any witnesses.
7. Examine the grievant’s personnel record.
8. Fully examine prior grievance records.
9. Treat the union representative as your equal.
10. Hold your grievance discussions privately.
11. Fully inform your own supervisor of grievance matters.
15–54
Handling Grievances: Don’t
1.
Discuss the case with the union steward alone—the grievant should be
there.
2.
Make arrangements with individual employees that are inconsistent with
the labor agreement.
3.
Hold back the remedy if the company is wrong.
4.
Admit to the binding effect of a past practice.
5.
Relinquish to the union your rights as a manager.
6.
Settle grievances on what is “fair.” Stick to the labor agreement.
7. Bargain over items not covered by the contract.
8.
Treat as subject to arbitration claims demanding discipline or discharge
of managers.
9.
Give long written grievance answers.
10. Trade a grievance settlement for a grievance withdrawal.
11. Deny grievances because “your hands are tied by management.”
12. Agree to informal amendments in the contract.
15–55
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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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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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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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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Contemporary Challenges to
Labor Organizations
• Decrease in Union Membership

A shift from traditional unionized industries
(manufacturing, mining) to high technology
industries (computers, pharmaceuticals).

Growth in the employment of part-time and
temporary workers.

Growth in small businesses, in which unionization
is more costly and difficult to perform.

Globalization of the workforce particularly among
low wage employers
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Contemporary Challenges to
Labor Organizations (cont.)
• Globalization and Technological Change


Offshoring: work that was previously carried out in one
country moved to another
most of the recent growth in U.S. companies comes from
outside of the country
• Employers need to pay more attention to the
relevant stakeholders such as unions, employees
and communities in which they operate
• Most job loss in America is not due to offshoring,
but rather to technological changes.
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Organizing professionals and
white-collar employees
New Union
Tactics
Pushing “card check” for
union recognition
Filing class action lawsuits to
support workers
Forming alliances with
overseas unions
15–62
The Union Movement Today
and Tomorrow
• Reasons for the Decline in Union Membership
 Laws have taken over much of the union’s role
as the workers’ protector.
 Automation, globalization, and technology have
reduced jobs in unionized manufacturing sectors.
 Unions have failed to organize new plants.
 Management has become better at resisting
union-organizing efforts.
• Upswing Coming?
 Unions have been more aggressive lately in organizing
public sector workers and white-collar workers.
15–63
Public Employees and Unions
• Size of Public Unions
 The National Education Association; the American
Federation of State, County, and Municipal Employees; and
the American Federation of Teachers—are among the
largest U.S. unions.
• Laws Supporting Public Sector Organizing
 Executive Order 10988

Recognized organizing rights of public sector employees
 Title VII of the Civil Service Reform Act of 1978
(known as the Federal Labor Relations Act)

Established the Federal Labor Relations Authority
15–64