CHAPTER 12 LABOR RELATIONS PowerPoint Presentation by Charlie Cook Copyright © 2002 South-Western....

CHAPTER 12

LABOR RELATIONS

PowerPoint Presentation by Charlie CookCopyright © 2002 South-Western. All rights reserved

Copyright © 2002 South-Western. All rights reserved. 12–2

Union MembershipUnion MembershipUnion MembershipUnion Membership

• The decline in union membershipThe decline in union membership– Workers have become disenfranchised from their unionsWorkers have become disenfranchised from their unions– Many unionized firms have moved their operations outside Many unionized firms have moved their operations outside

the United States.the United States.– Change in the nature of work and technology have eliminated Change in the nature of work and technology have eliminated

many traditionally unionized manual labor jobs.many traditionally unionized manual labor jobs.– Unions have refused to be flexible enough to allow their Unions have refused to be flexible enough to allow their

organizations to grow and adapt to changes in their organizations to grow and adapt to changes in their industries.industries.

• The decline in union membershipThe decline in union membership– Workers have become disenfranchised from their unionsWorkers have become disenfranchised from their unions– Many unionized firms have moved their operations outside Many unionized firms have moved their operations outside

the United States.the United States.– Change in the nature of work and technology have eliminated Change in the nature of work and technology have eliminated

many traditionally unionized manual labor jobs.many traditionally unionized manual labor jobs.– Unions have refused to be flexible enough to allow their Unions have refused to be flexible enough to allow their

organizations to grow and adapt to changes in their organizations to grow and adapt to changes in their industries.industries.


Why Study Labor Relations?Why Study Labor Relations?Why Study Labor Relations?Why Study Labor Relations?

• Unionization is the norm in many industries such Unionization is the norm in many industries such as transportation, construction, hospitality, as transportation, construction, hospitality, publishing, education, and health care.publishing, education, and health care.

• Contract settlements with unionized competitors Contract settlements with unionized competitors may impact on HR practices, programs, and may impact on HR practices, programs, and policies needed to remain competitive.policies needed to remain competitive.

• Managers of non-unionized firms need to know Managers of non-unionized firms need to know why and how employees form unions and the legal why and how employees form unions and the legal requirements of the representation and collective requirements of the representation and collective bargaining process.bargaining process.

• Unionization is the norm in many industries such Unionization is the norm in many industries such as transportation, construction, hospitality, as transportation, construction, hospitality, publishing, education, and health care.publishing, education, and health care.

• Contract settlements with unionized competitors Contract settlements with unionized competitors may impact on HR practices, programs, and may impact on HR practices, programs, and policies needed to remain competitive.policies needed to remain competitive.

• Managers of non-unionized firms need to know Managers of non-unionized firms need to know why and how employees form unions and the legal why and how employees form unions and the legal requirements of the representation and collective requirements of the representation and collective bargaining process.bargaining process.


Why Employees OrganizeWhy Employees OrganizeWhy Employees OrganizeWhy Employees Organize

• Employees seek to form unions because of the Employees seek to form unions because of the perceived economic, social and political benefits perceived economic, social and political benefits of organization:of organization:

– Higher or more equitable wagesHigher or more equitable wages– Better or expanded benefitsBetter or expanded benefits– Greater job or employment security (contracts)Greater job or employment security (contracts)– Affiliation and sense of community (brotherhood)Affiliation and sense of community (brotherhood)– Sense of power/influence in numbers (solidarity/voice)Sense of power/influence in numbers (solidarity/voice)

• Employees seek to form unions because of the Employees seek to form unions because of the perceived economic, social and political benefits perceived economic, social and political benefits of organization:of organization:

– Higher or more equitable wagesHigher or more equitable wages– Better or expanded benefitsBetter or expanded benefits– Greater job or employment security (contracts)Greater job or employment security (contracts)– Affiliation and sense of community (brotherhood)Affiliation and sense of community (brotherhood)– Sense of power/influence in numbers (solidarity/voice)Sense of power/influence in numbers (solidarity/voice)


Strategic Challenges of Organized Strategic Challenges of Organized LaborLabor

Strategic Challenges of Organized Strategic Challenges of Organized LaborLabor

• Organized labor can have a significant impact on Organized labor can have a significant impact on organizational performance:organizational performance:

– When workers unionize, the employee/management power When workers unionize, the employee/management power balance within the organization is redistributed.balance within the organization is redistributed.

– The process of unionization involves bringing in “outside The process of unionization involves bringing in “outside players,” union representatives who then become an players,” union representatives who then become an additional constituency whose support must be gained for any additional constituency whose support must be gained for any new and ongoing management initiatives.new and ongoing management initiatives.

– A unionized work setting can greatly impact an organization’s A unionized work setting can greatly impact an organization’s cost structure, particularly raising payroll expenses and cost structure, particularly raising payroll expenses and affecting the efficiency of work processes.affecting the efficiency of work processes.

• Organized labor can have a significant impact on Organized labor can have a significant impact on organizational performance:organizational performance:

– When workers unionize, the employee/management power When workers unionize, the employee/management power balance within the organization is redistributed.balance within the organization is redistributed.

– The process of unionization involves bringing in “outside The process of unionization involves bringing in “outside players,” union representatives who then become an players,” union representatives who then become an additional constituency whose support must be gained for any additional constituency whose support must be gained for any new and ongoing management initiatives.new and ongoing management initiatives.

– A unionized work setting can greatly impact an organization’s A unionized work setting can greatly impact an organization’s cost structure, particularly raising payroll expenses and cost structure, particularly raising payroll expenses and affecting the efficiency of work processes.affecting the efficiency of work processes.


National Labor Relations Act (NLRA)National Labor Relations Act (NLRA)National Labor Relations Act (NLRA)National Labor Relations Act (NLRA)

• NLRA, also called the NLRA, also called the Wagner Act,Wagner Act, (1935) (1935)– Provided the rights for employees to organize, elect Provided the rights for employees to organize, elect

representatives, and to collectively bargain.representatives, and to collectively bargain.– Required employers to recognize the rights of employees to Required employers to recognize the rights of employees to

organize and bargain collectively with their elected organize and bargain collectively with their elected representatives.representatives.

– Act regulates the process of union/management relations.Act regulates the process of union/management relations.– Created the National Labor Relations Board (NLRB) to Created the National Labor Relations Board (NLRB) to

oversee and enforce the provisions of the Act. oversee and enforce the provisions of the Act.

• NLRA, also called the NLRA, also called the Wagner Act,Wagner Act, (1935) (1935)– Provided the rights for employees to organize, elect Provided the rights for employees to organize, elect

representatives, and to collectively bargain.representatives, and to collectively bargain.– Required employers to recognize the rights of employees to Required employers to recognize the rights of employees to

organize and bargain collectively with their elected organize and bargain collectively with their elected representatives.representatives.

– Act regulates the process of union/management relations.Act regulates the process of union/management relations.– Created the National Labor Relations Board (NLRB) to Created the National Labor Relations Board (NLRB) to

oversee and enforce the provisions of the Act. oversee and enforce the provisions of the Act.


Steps in the Organizing ProcessSteps in the Organizing ProcessSteps in the Organizing ProcessSteps in the Organizing Process

• Employees conduct an organizing campaign in Employees conduct an organizing campaign in which 30% of the employees sign “authorization which 30% of the employees sign “authorization cards” expressing an interest in having a specific cards” expressing an interest in having a specific union represent them.union represent them.

• Employees petition the NLRB to hold a Employees petition the NLRB to hold a representation election and to make a representation election and to make a bargaining bargaining unitunit determination. determination.

• If the union receives a majority vote in the If the union receives a majority vote in the election, it gains representation status to bargain election, it gains representation status to bargain collectively for an contract with the employer.collectively for an contract with the employer.

• Employees conduct an organizing campaign in Employees conduct an organizing campaign in which 30% of the employees sign “authorization which 30% of the employees sign “authorization cards” expressing an interest in having a specific cards” expressing an interest in having a specific union represent them.union represent them.

• Employees petition the NLRB to hold a Employees petition the NLRB to hold a representation election and to make a representation election and to make a bargaining bargaining unitunit determination. determination.

• If the union receives a majority vote in the If the union receives a majority vote in the election, it gains representation status to bargain election, it gains representation status to bargain collectively for an contract with the employer.collectively for an contract with the employer.


Behavior During Organizing Behavior During Organizing CampaignsCampaigns

Behavior During Organizing Behavior During Organizing CampaignsCampaigns

• Section 8 (c) of the NLRASection 8 (c) of the NLRA– Regulates employer/employee activities during organizing Regulates employer/employee activities during organizing

campaigns; violations are considered unfair labor practices.campaigns; violations are considered unfair labor practices.– Employers cannot conduct reprisals against employees who Employers cannot conduct reprisals against employees who

exercise their rights as defined in Section 7 of the NLRA.exercise their rights as defined in Section 7 of the NLRA.– Prounion employees have a right to approach coworkers and Prounion employees have a right to approach coworkers and

express union support during nonworking periods in express union support during nonworking periods in nonworking areas.nonworking areas.

– Employers can restrict access to employees by non-Employers can restrict access to employees by non-employees if organizers have other means of access and employees if organizers have other means of access and there is policy of banning solicitation by non-employees.there is policy of banning solicitation by non-employees.

• Section 8 (c) of the NLRASection 8 (c) of the NLRA– Regulates employer/employee activities during organizing Regulates employer/employee activities during organizing

campaigns; violations are considered unfair labor practices.campaigns; violations are considered unfair labor practices.– Employers cannot conduct reprisals against employees who Employers cannot conduct reprisals against employees who

exercise their rights as defined in Section 7 of the NLRA.exercise their rights as defined in Section 7 of the NLRA.– Prounion employees have a right to approach coworkers and Prounion employees have a right to approach coworkers and

express union support during nonworking periods in express union support during nonworking periods in nonworking areas.nonworking areas.

– Employers can restrict access to employees by non-Employers can restrict access to employees by non-employees if organizers have other means of access and employees if organizers have other means of access and there is policy of banning solicitation by non-employees.there is policy of banning solicitation by non-employees.


Collective BargainingCollective BargainingCollective BargainingCollective Bargaining

• Collective bargaining between the union and the Collective bargaining between the union and the employer covers various terms and conditions of employer covers various terms and conditions of employment.employment.

• NLRA classification of bargaining items:NLRA classification of bargaining items:– Mandatory items that must be negotiated in good faith.Mandatory items that must be negotiated in good faith.

• These items can be bargained to impasse.These items can be bargained to impasse.

– Permissive items can be included if both parties agree.Permissive items can be included if both parties agree.• These items cannot be bargained to impasse.These items cannot be bargained to impasse.

– Prohibited items are cannot be negotiated because of their Prohibited items are cannot be negotiated because of their illegality under the terms of the NLRA or other laws.illegality under the terms of the NLRA or other laws.

• Collective bargaining between the union and the Collective bargaining between the union and the employer covers various terms and conditions of employer covers various terms and conditions of employment.employment.

• NLRA classification of bargaining items:NLRA classification of bargaining items:– Mandatory items that must be negotiated in good faith.Mandatory items that must be negotiated in good faith.

• These items can be bargained to impasse.These items can be bargained to impasse.

– Permissive items can be included if both parties agree.Permissive items can be included if both parties agree.• These items cannot be bargained to impasse.These items cannot be bargained to impasse.

– Prohibited items are cannot be negotiated because of their Prohibited items are cannot be negotiated because of their illegality under the terms of the NLRA or other laws.illegality under the terms of the NLRA or other laws.


Collective BargainingCollective BargainingCollective BargainingCollective Bargaining


Union Security IssuesUnion Security IssuesUnion Security IssuesUnion Security Issues

• Unions attempt to increase the security of their Unions attempt to increase the security of their status as bargaining representatives by bargaining status as bargaining representatives by bargaining for:for:

– Union shop agreementsUnion shop agreements that require new employees to join that require new employees to join the union after an initial period of employment.the union after an initial period of employment.

– Agency shop agreementsAgency shop agreements that require employees who choose that require employees who choose not to join the union to pay “representation fees” to cover the not to join the union to pay “representation fees” to cover the union’s cost of representing them in bargaining.union’s cost of representing them in bargaining.

– A dues check-off agreementA dues check-off agreement in which the employer deducts in which the employer deducts union dues from the paychecks of union employees.union dues from the paychecks of union employees.

• Unions attempt to increase the security of their Unions attempt to increase the security of their status as bargaining representatives by bargaining status as bargaining representatives by bargaining for:for:

– Union shop agreementsUnion shop agreements that require new employees to join that require new employees to join the union after an initial period of employment.the union after an initial period of employment.

– Agency shop agreementsAgency shop agreements that require employees who choose that require employees who choose not to join the union to pay “representation fees” to cover the not to join the union to pay “representation fees” to cover the union’s cost of representing them in bargaining.union’s cost of representing them in bargaining.

– A dues check-off agreementA dues check-off agreement in which the employer deducts in which the employer deducts union dues from the paychecks of union employees.union dues from the paychecks of union employees.


Failure to Reach AgreementFailure to Reach AgreementFailure to Reach AgreementFailure to Reach Agreement

• Failure in bargaining negotiations to reach an Failure in bargaining negotiations to reach an agreement (an impasse) may result in a strike.agreement (an impasse) may result in a strike.

– Economic strikesEconomic strikes are the result of an bargaining impasse over are the result of an bargaining impasse over wages or other monetary-related issues. Striking workers can wages or other monetary-related issues. Striking workers can be permanently replaced in economic strikes.be permanently replaced in economic strikes.

– Unfair labor practice strikesUnfair labor practice strikes are ones in which employees are ones in which employees strike in response to management actions that defined unfair strike in response to management actions that defined unfair labor practices under the NLRA. Striking workers cannot be labor practices under the NLRA. Striking workers cannot be permanently replaced in unfair labor practice strikes.permanently replaced in unfair labor practice strikes.

– Wildcat strikesWildcat strikes are unauthorized strikes by workers who walk are unauthorized strikes by workers who walk out in violation of the collective bargaining agreement.out in violation of the collective bargaining agreement.

• Failure in bargaining negotiations to reach an Failure in bargaining negotiations to reach an agreement (an impasse) may result in a strike.agreement (an impasse) may result in a strike.

– Economic strikesEconomic strikes are the result of an bargaining impasse over are the result of an bargaining impasse over wages or other monetary-related issues. Striking workers can wages or other monetary-related issues. Striking workers can be permanently replaced in economic strikes.be permanently replaced in economic strikes.

– Unfair labor practice strikesUnfair labor practice strikes are ones in which employees are ones in which employees strike in response to management actions that defined unfair strike in response to management actions that defined unfair labor practices under the NLRA. Striking workers cannot be labor practices under the NLRA. Striking workers cannot be permanently replaced in unfair labor practice strikes.permanently replaced in unfair labor practice strikes.

– Wildcat strikesWildcat strikes are unauthorized strikes by workers who walk are unauthorized strikes by workers who walk out in violation of the collective bargaining agreement.out in violation of the collective bargaining agreement.


Related Bargaining Issues Related Bargaining Issues Related Bargaining Issues Related Bargaining Issues

• Government workers are prohibited by law from Government workers are prohibited by law from striking; they must seek arbitration.striking; they must seek arbitration.

• Organizations can prevent strikes by:Organizations can prevent strikes by:– Using mediation to restart the bargaining process.Using mediation to restart the bargaining process.– Agreeing to submit the unresolved issue(s) to binding Agreeing to submit the unresolved issue(s) to binding

arbitration in which a mutually agreed-to third party decides arbitration in which a mutually agreed-to third party decides the issue(s).the issue(s).

• Government workers are prohibited by law from Government workers are prohibited by law from striking; they must seek arbitration.striking; they must seek arbitration.

• Organizations can prevent strikes by:Organizations can prevent strikes by:– Using mediation to restart the bargaining process.Using mediation to restart the bargaining process.– Agreeing to submit the unresolved issue(s) to binding Agreeing to submit the unresolved issue(s) to binding

arbitration in which a mutually agreed-to third party decides arbitration in which a mutually agreed-to third party decides the issue(s).the issue(s).

CHAPTER 12 LABOR RELATIONS PowerPoint Presentation by Charlie Cook Copyright © 2002 South-Western....

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