The dynamic of Labor Relations
PowerPoint Presentation by Charlie Cook
Copyright © 2004 South-Western. All rights reserved.
Objectives
After studying this chapter, you should be able to:
1. Identify and explain the principal federal laws that
provide the framework for labor relations.
2. Explain the reasons employees join unions.
3. Describe the process by which unions organize
employees and gain recognition as their bargaining
agent.
4. Discuss the bargaining process and the bargaining
goals and strategies of a union and an employer.
Copyright © 2004 South-Western. All rights reserved.
14–2
Objectives (cont’d)
After studying this chapter, you should be able to:
5. Differentiate the forms of bargaining power that a
union and an employer may utilize to enforce their
bargaining demands.
6. Describe a typical union grievance procedure and
explain the basis for arbitration awards.
7. Discuss some of the contemporary challenges to
labor organizations.
Copyright © 2004 South-Western. All rights reserved.
14–3
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
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–1
14–4
Government Regulation of Labor Relations
• The 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
• The Norris-LaGuardia Act of 1932
Restricts the ability of employers to obtain an
injunction against unions for their lawful activities.
Copyright © 2004 South-Western. All rights reserved.
14–5
Government Regulation of Labor Relations
• The 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.
Copyright © 2004 South-Western. All rights reserved.
14–6
Wagner Act
• Section 7 of the Act guarantees these 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.
Copyright © 2004 South-Western. All rights reserved.
14–7
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
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–2
14–8
Amendments to the Wagner Act
• The Taft-Hartley Act (The Labor-Management
Relations Act) of 1947
Balances the rights and duties of labor and
management in the collective bargaining arena by
defining unfair union practices.
• The 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.
Copyright © 2004 South-Western. All rights reserved.
14–9
Unfair Union Practices
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”
Copyright © 2004 South-Western. All rights reserved.
14–10
Labor Relations Process
1. Workers desire collective representation
2. Union begins its organizing campaign
3. Collective negotiations lead to a contract
4. The contract is administered
Copyright © 2004 South-Western. All rights reserved.
14–11
The Labor Relations
Process
Copyright © 2004 South-Western. All rights reserved.
Figure 14.1
14–12
Why Employees Unionize
• As a result of 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
Copyright © 2004 South-Western. All rights reserved.
14–13
Organizing
Campaigns
Steps in the
Organizing
Process
Union/Employee Contact
Initial Organizational
Meeting
Formation of In-House
Committee
Election Petition and Voting
Preparation
Contract Negotiations
Copyright © 2004 South-Western. All rights reserved.
14–14
United Food And Commercial Workers
International Union Authorization Card
Copyright © 2004 South-Western. All rights reserved.
HRM 2
14–15
Aggressive Organizing Tactics
• Political Involvement
• Union Salting
• Organizer Training
• Corporate Campaigns
• Information Technology
Union NOW!!
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–3
14–16
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
Copyright © 2004 South-Western. All rights reserved.
14–17
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.
Copyright © 2004 South-Western. All rights reserved.
14–18
NLRB
Election
Poster
HRM 2
Copyright © 2004 South-Western. All rights reserved.
14–19
The Labor Organization Process
Workers Seek Collective Representation
Management
Union Begins The
Organizing Process
Labor
Representation Election is Held
Collective Bargaining For A Contract
Contract Administration
Copyright © 2004 South-Western. All rights reserved.
14–20
Impact of Unionization on Managers
• Challenges to Management Prerogatives
Management prerogatives versus union participation
in decision-making in the work place.
• Loss of Supervisory Authority
Constraints on management in directing and
disciplining the work force by terms of the collective
bargaining agreement.
Copyright © 2004 South-Western. All rights reserved.
14–21
Union Structure and Governance
• Craft Unions
• Industrial Unions
• Employee Associations
• AFL-CIO
• National Unions
• Local Unions
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–4
14–22
Types of Unions
• Craft unions
Unions that represent skilled craft workers
• Industrial unions
Unions that represent all workers—skilled,
semiskilled, unskilled—employed along industry lines
• Employee associations
Labor organizations that represent various groups of
professional and white-collar employees in labormanagement relations.
Copyright © 2004 South-Western. All rights reserved.
14–23
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
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–5
14–24
Structure and 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 as they occur
(preventing “raiding”)
Copyright © 2004 South-Western. All rights reserved.
14–25
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
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–6
14–26
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.
Copyright © 2004 South-Western. All rights reserved.
14–27
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.
Copyright © 2004 South-Western. All rights reserved.
14–28
The
Collective
Bargaining
Process
PREPARE FOR
NEGOTIATIONS
-----------------------------• Gather data
• Form bargaining terms
DEVELOP
STRATEGIES
-----------------------------• Develop management
proposals and limits of
concessions
• Consider opponents’ goals
• Make strike plans
1
2
FORMALIZE
AGREEMENT
------------------------------
CONDUCT
NEGOTIATIONS
--------------------------------
• Clarify contract language
• Ratify agreement
• Bargain in good faith
• Analyze proposals
• Resolve proposals
• Stay within bargaining zone
4
Strikes
Figure 14.2
Presentation Slide 14–7
Copyright © 2004 South-Western. All rights reserved.
Legal
Lockouts
requirements
3
Strike
replacements
Boycotts
14–29
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.
Copyright © 2004 South-Western. All rights reserved.
14–30
The Bargaining Zone and
Negotiation Influences
Source: Adapted from Ross Stagner and Hjalmar Rosen,
Psychology of Union-Management Relations (Belmont, Calif.:
Wadsworth Publishing Company, 1965), 96. Adapted with
permission from Brooks/Cole Publishing Co.
Copyright © 2004 South-Western. All rights reserved.
Figure 14.3
14–31
Items In A Labor Agreement
• Typical clauses will cover:
Wages
Vacations
Holidays
Work schedules
Management rights
Union security
Transfers
Discipline
Copyright © 2004 South-Western. All rights reserved.
Grievance procedures
No strike/no lockout
clause
Overtime
Safety procedures
Severance pay
Seniority
Pensions and benefits
Outsourcing
HRM 5a
14–32
Items In A Labor Agreement (cont’d)
• Progressive clauses will cover:
Employee access to records
Limitations on use of performance evaluation
Elder care leave
Flexible medical spending accounts
Protection against hazards of technology equipment
(VDTs)
Limitations against electronic monitoring
Procedures governing drug testing
Bilingual stipends
Domestic partnership benefits
Copyright © 2004 South-Western. All rights reserved.
HRM 5b
14–33
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 replacement workers
Continuing operations staffed by management
Locking out employees
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–8
14–34
Union Power in Collective Bargaining
Boycott
Our
Employer
This Union
On Strike
Striking
Boycotting
Copyright © 2004 South-Western. All rights reserved.
Picketing
14–35
Employer Power in Collective Bargaining
Management methods for applying
economic pressure during bargaining:
Outsourcing normal work
Locking out workers
Hiring replacement workers
Demanding concessions
Copyright © 2004 South-Western. All rights reserved.
14–36
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.
Copyright © 2004 South-Western. All rights reserved.
14–37
Five-Step
Grievance
Procedure
• Grievance Procedure
A formal procedure that
provides for the union to
represent members and
nonmembers in
processing a grievance
Figure 14.4
Presentation Slide 14–9
Copyright © 2004 South-Western. All rights reserved.
14–38
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.
Copyright © 2004 South-Western. All rights reserved.
14–39
Grievance (Rights) Arbitration
Significant issues in using arbitration
as a method for dispute resolution:
Deciding to use binding arbitration
Rights arbitration and EEO conflicts
Fair Representation Doctrine
Methods for choosing an arbitrator
Submission agreement and awards
Copyright © 2004 South-Western. All rights reserved.
14–40
The Arbitration Process
• 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.
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–10
14–41
The Arbitration Decision
• Four 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.
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–11
14–42
Current Challenges to Unions
Important issues confronting unions
Foreign competition and
technological change
The long-term decrease in
union membership
Employers’ focus on
maintaining nonunion status
Copyright © 2004 South-Western. All rights reserved.
14–43
Copyright © 2004 South-Western. All rights reserved.
Objectives
After studying this chapter, you should be able to:
1. Identify and explain the principal federal laws that
provide the framework for labor relations.
2. Explain the reasons employees join unions.
3. Describe the process by which unions organize
employees and gain recognition as their bargaining
agent.
4. Discuss the bargaining process and the bargaining
goals and strategies of a union and an employer.
Copyright © 2004 South-Western. All rights reserved.
14–2
Objectives (cont’d)
After studying this chapter, you should be able to:
5. Differentiate the forms of bargaining power that a
union and an employer may utilize to enforce their
bargaining demands.
6. Describe a typical union grievance procedure and
explain the basis for arbitration awards.
7. Discuss some of the contemporary challenges to
labor organizations.
Copyright © 2004 South-Western. All rights reserved.
14–3
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
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–1
14–4
Government Regulation of Labor Relations
• The 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
• The Norris-LaGuardia Act of 1932
Restricts the ability of employers to obtain an
injunction against unions for their lawful activities.
Copyright © 2004 South-Western. All rights reserved.
14–5
Government Regulation of Labor Relations
• The 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.
Copyright © 2004 South-Western. All rights reserved.
14–6
Wagner Act
• Section 7 of the Act guarantees these 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.
Copyright © 2004 South-Western. All rights reserved.
14–7
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
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–2
14–8
Amendments to the Wagner Act
• The Taft-Hartley Act (The Labor-Management
Relations Act) of 1947
Balances the rights and duties of labor and
management in the collective bargaining arena by
defining unfair union practices.
• The 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.
Copyright © 2004 South-Western. All rights reserved.
14–9
Unfair Union Practices
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”
Copyright © 2004 South-Western. All rights reserved.
14–10
Labor Relations Process
1. Workers desire collective representation
2. Union begins its organizing campaign
3. Collective negotiations lead to a contract
4. The contract is administered
Copyright © 2004 South-Western. All rights reserved.
14–11
The Labor Relations
Process
Copyright © 2004 South-Western. All rights reserved.
Figure 14.1
14–12
Why Employees Unionize
• As a result of 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
Copyright © 2004 South-Western. All rights reserved.
14–13
Organizing
Campaigns
Steps in the
Organizing
Process
Union/Employee Contact
Initial Organizational
Meeting
Formation of In-House
Committee
Election Petition and Voting
Preparation
Contract Negotiations
Copyright © 2004 South-Western. All rights reserved.
14–14
United Food And Commercial Workers
International Union Authorization Card
Copyright © 2004 South-Western. All rights reserved.
HRM 2
14–15
Aggressive Organizing Tactics
• Political Involvement
• Union Salting
• Organizer Training
• Corporate Campaigns
• Information Technology
Union NOW!!
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–3
14–16
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
Copyright © 2004 South-Western. All rights reserved.
14–17
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.
Copyright © 2004 South-Western. All rights reserved.
14–18
NLRB
Election
Poster
HRM 2
Copyright © 2004 South-Western. All rights reserved.
14–19
The Labor Organization Process
Workers Seek Collective Representation
Management
Union Begins The
Organizing Process
Labor
Representation Election is Held
Collective Bargaining For A Contract
Contract Administration
Copyright © 2004 South-Western. All rights reserved.
14–20
Impact of Unionization on Managers
• Challenges to Management Prerogatives
Management prerogatives versus union participation
in decision-making in the work place.
• Loss of Supervisory Authority
Constraints on management in directing and
disciplining the work force by terms of the collective
bargaining agreement.
Copyright © 2004 South-Western. All rights reserved.
14–21
Union Structure and Governance
• Craft Unions
• Industrial Unions
• Employee Associations
• AFL-CIO
• National Unions
• Local Unions
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–4
14–22
Types of Unions
• Craft unions
Unions that represent skilled craft workers
• Industrial unions
Unions that represent all workers—skilled,
semiskilled, unskilled—employed along industry lines
• Employee associations
Labor organizations that represent various groups of
professional and white-collar employees in labormanagement relations.
Copyright © 2004 South-Western. All rights reserved.
14–23
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
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–5
14–24
Structure and 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 as they occur
(preventing “raiding”)
Copyright © 2004 South-Western. All rights reserved.
14–25
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
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–6
14–26
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.
Copyright © 2004 South-Western. All rights reserved.
14–27
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.
Copyright © 2004 South-Western. All rights reserved.
14–28
The
Collective
Bargaining
Process
PREPARE FOR
NEGOTIATIONS
-----------------------------• Gather data
• Form bargaining terms
DEVELOP
STRATEGIES
-----------------------------• Develop management
proposals and limits of
concessions
• Consider opponents’ goals
• Make strike plans
1
2
FORMALIZE
AGREEMENT
------------------------------
CONDUCT
NEGOTIATIONS
--------------------------------
• Clarify contract language
• Ratify agreement
• Bargain in good faith
• Analyze proposals
• Resolve proposals
• Stay within bargaining zone
4
Strikes
Figure 14.2
Presentation Slide 14–7
Copyright © 2004 South-Western. All rights reserved.
Legal
Lockouts
requirements
3
Strike
replacements
Boycotts
14–29
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.
Copyright © 2004 South-Western. All rights reserved.
14–30
The Bargaining Zone and
Negotiation Influences
Source: Adapted from Ross Stagner and Hjalmar Rosen,
Psychology of Union-Management Relations (Belmont, Calif.:
Wadsworth Publishing Company, 1965), 96. Adapted with
permission from Brooks/Cole Publishing Co.
Copyright © 2004 South-Western. All rights reserved.
Figure 14.3
14–31
Items In A Labor Agreement
• Typical clauses will cover:
Wages
Vacations
Holidays
Work schedules
Management rights
Union security
Transfers
Discipline
Copyright © 2004 South-Western. All rights reserved.
Grievance procedures
No strike/no lockout
clause
Overtime
Safety procedures
Severance pay
Seniority
Pensions and benefits
Outsourcing
HRM 5a
14–32
Items In A Labor Agreement (cont’d)
• Progressive clauses will cover:
Employee access to records
Limitations on use of performance evaluation
Elder care leave
Flexible medical spending accounts
Protection against hazards of technology equipment
(VDTs)
Limitations against electronic monitoring
Procedures governing drug testing
Bilingual stipends
Domestic partnership benefits
Copyright © 2004 South-Western. All rights reserved.
HRM 5b
14–33
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 replacement workers
Continuing operations staffed by management
Locking out employees
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–8
14–34
Union Power in Collective Bargaining
Boycott
Our
Employer
This Union
On Strike
Striking
Boycotting
Copyright © 2004 South-Western. All rights reserved.
Picketing
14–35
Employer Power in Collective Bargaining
Management methods for applying
economic pressure during bargaining:
Outsourcing normal work
Locking out workers
Hiring replacement workers
Demanding concessions
Copyright © 2004 South-Western. All rights reserved.
14–36
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.
Copyright © 2004 South-Western. All rights reserved.
14–37
Five-Step
Grievance
Procedure
• Grievance Procedure
A formal procedure that
provides for the union to
represent members and
nonmembers in
processing a grievance
Figure 14.4
Presentation Slide 14–9
Copyright © 2004 South-Western. All rights reserved.
14–38
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.
Copyright © 2004 South-Western. All rights reserved.
14–39
Grievance (Rights) Arbitration
Significant issues in using arbitration
as a method for dispute resolution:
Deciding to use binding arbitration
Rights arbitration and EEO conflicts
Fair Representation Doctrine
Methods for choosing an arbitrator
Submission agreement and awards
Copyright © 2004 South-Western. All rights reserved.
14–40
The Arbitration Process
• 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.
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–10
14–41
The Arbitration Decision
• Four 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.
Copyright © 2004 South-Western. All rights reserved.
Presentation Slide 14–11
14–42
Current Challenges to Unions
Important issues confronting unions
Foreign competition and
technological change
The long-term decrease in
union membership
Employers’ focus on
maintaining nonunion status
Copyright © 2004 South-Western. All rights reserved.
14–43