Labor Union A labor union is an organization of employees that uses collective action to advance its members’ interests in regard to wages and working conditions. Industrial unions include all the employees in a company or industry, regardless of occupation. Mullen 2005 Craft unions include workers who belong to one craft or to closely related group of occupations. Labor Relations Labor relations is the continuous relationship between a defined group of employees and management. The relationship includes the negotiation of a written contract concerning pay, hours, and other terms and conditions of employment as well as the interpretation and administration of this contract over its period of coverage. Mullen 2005 History of Unions KNIGHTS OF LABOR Established one large union for employees and local unions from all crafts and occupational areas in 1869. AFL Established to include only skilled tradespeople in 1886. CIO Expanded the United Mine workers to include industrial and mass production workers in 1935. Later merged with the AFL in 1955 (AFL-CIO). Mullen 2005 Primary Labor Law Legislation: Private Sector National Labor Relations Act (Wagner Act) Encouraged Restrained the growth of trade unions management from interfering with union growth Placed the government in a more active, pro-labor role Established the National Labor Relations Board (NLRB) to regulate and enforce the law Sets up union certification elections Investigates complaints of unfair labor practices Mullen 2005 Taft-Hartley Act The Labor-Management Relations Act amended the Wagner Act. Management's’ response to rise in members rolls from 3 million to 5 million. Provided the president 80-day injunction against strikes. Unions forbidden to deduct union dues without written permission. Mullen 2005 The Landrum-Griffin Act Designated to regulate the internal affairs of unions. Also referred to as the bill of rights of union members, and allows members to. nominate candidates for union office. vote in union elections. attend union meetings. Mullen 2005 Structure & Management of Unions: Four Levels Federation Of Unions (e.g., AFL-CIO) Intermediate Union Bodies (e.g., regional & district offices) National Unions (e.g., International Brotherhood of Teamsters) Local Unions (e.g., local craft or industrial unions) Mullen 2005 Employee Reasons for Joining Unions Mullen 2005 Job security Socialization and group membership Safe and healthy working conditions Communication link to management Fair compensation Primary Labor Law Legislation (Public Sector) EXECUTIVE ORDER 10988 Began the process of creating a federal collective bargaining system Included a strong management rights clause banning strikes and union shops EXECUTIVE ORDER 11419 Gave the Secretary of Labor authority to enforce public sector labor-management relations Mullen 2005 Primary Labor Law Legislation (Public Sector) EXECUTIVE ORDER 11823 Requires federal agencies to bargain with their employees on all issues CIVIL SERVICE REFORM ACT (1978) Placed federal employees’ labor rights under the Federal Labor Relations Authority Mullen 2005 Collective Bargaining Collective bargaining is a process by which the representatives of the organization meet and attempt to work out a contract with the employees’ representative--the union. Mullen 2005 Collective Bargaining: Basic Types DISTRIBUTIVE BARGAINING When labor and management are in conflict on an issue and the outcome is a win-lose situation INTEGRATIVE BARGAINING When two sides face a common problem and seek a win-win solution CONCESSION BARGAINING When something of importance is given back to management Mullen 2005 Administering the Contract DISCIPLINE Most contracts retain management’s right to discipline employees Typical expectation is to follow legal due process GRIEVANCES Are complaints, whether valid or not, about organizational policies Exhibit 16-10 illustrates a four-step procedure ARBITRATION Is a quasi-judicial process where a neutral third party provides a binding settlement (award) for unresolvable disputes Typically follows the first three steps in Exhibit 16-10 Mullen 2005 Union Organizing Trends 1. General attitudes improving 2. Declining membership 3. Scope of organizing campaigns shifting to: Professional and better-educated workers Service workers Knowledge workers 4. Unions are investing heavily in: Better member services Innovative organizing techniques like the internet Mullen 2005 Labor Relations The continuous relationship between a defined group of employees and managers regarding: Hiring and Promotions Working conditions Discipline Mullen 2005 National Labor Relations Act (Wagner Act) Encourage the growth of trade unions and restrain management from interfering with this growth. • Right to bargain collectively • Limitations on bargaining • Representation • Certification/decert/ elections • Terms of agreements • Problem of company unions Mullen 2005 • The right to strike Types of Union Shops Union Open Restricted Agency Preferential Mullen 2005 Closed Open Shop Employees have freedom to determine if they want or need a union Mullen 2005 Agency Shop All non-management employees must pay union dues whether or not they are members of the union Mullen 2005 Preferential Shop Union is recognized by management and given preferential treatment Mullen 2005 Union Shop Requires employee to join union after being hired. Must follow union rules Mullen 2005 Closed Shop New employees must be union members when hired Mullen 2005 Maintenance of membership Members cannot resign during term of contract Mullen 2005 Mandatory Subjects of Bargaining •Rates of pay /wages. •Hours. •Benefits. •Seniority. Mullen 2005 Subjects of Bargaining •Grievances. • Safety Practices. •Layoffs. •Recalls. •Disciplines. •Other Conditions of Employment. Mullen 2005 Strikes Economic • Retain Status, • Cannot be disciplined • Can be replaced ULP • Cannot be disciplined • Cannot be replaced Mullen 2005 Collective Bargaining Collective bargaining is the process by which unions and management establish the terms and conditions of employment. Mullen 2005 Establishing the Bargaining Unit Private sector Railway and airline sector Postal sector Federal sector Public sector General Motors, Xerox, NLRB Illinois Central, Delta, NMB NLRB Assistant Secretary of Labor for Labor-Management Relations California Highway Patrol, New York Sanitation Mullen 2005 Union Opposition Positive labor relations without a union Legal campaigns Unfair labor practices (union busting) Always remember “TIPS” Mullen 2005 Role of the NLRB Concerning the Employer: Concerning the Employee: Questioning is done No threats or fairly about union membership. Checks union information for accuracy. No final presentations within 24 hours before election. intimidation's are used to gain votes. Guards the employees against union promises of special treatment. No final presentations within 24 hours before election. Mullen 2005 Types of Collective Bargaining Distributive bargaining Concession bargaining Mullen 2005 Integrative bargaining Steps for Negotiating Pre-negotiation Selecting negotiators Developing a bargaining strategy Using the best tactics Reaching a formal contractual agreement Mullen 2005 Using the Best Tactics Conflict-based Armed truce Power bargaining Accommodation Mullen 2005 Cooperation Absence of Good Faith Unwillingness to make counterproposals Constantly changing positions The use of delaying tactics Withdrawing concessions Refusal to provide necessary data Mullen 2005 Bargaining Impasse A bargaining impasse can occur because: The settlement ranges of the negotiating parties do not overlap. One or both sides may have failed to communicate information. Union leadership did not bargain in good faith. Mullen 2005 What to do if confronted by a union organizer Remove him from your premises Do not accept or touch any representation cards Do not threaten, intimidate , promise or spy (TIPS) Be wary of “SALTS.” Always enforce your “No Solicitation” policy Keep your eyes and ears open for employee changes Meetings Questions on benefits Employee arguments Mullen 2005 How should you handle suspected “SALTS” Treat them as you would any candidate for employment Do not engage in any illegal hiring practices Do not confront Document all actions Do not threaten, intimidate or promise Search and find the best candidate Mullen 2005 Three way to avoid a union Positive labor relations without a union Legal campaigns Unfair labor practices (union busting) Mullen 2005 Typical Unfair Labor Practices “TIPS” Failure to bargain in good faith Wildcat strikes Arbitrary Lockouts Permanent replacement of workers during a legal strike Causing an employer to discriminate Charging excessive dues or fees Organizational or informational picketing Management giving financial assistance to the union Secondary boycott or jurisdictional strikes Featherbedding Mullen 2005 Mullen 2005 Mullen 2005