Ch15 Labor Relations and Collective Bargaining.docx

Labor Relations and Collective Bargaining Chapter Overview This chapter focuses on labor unions, labor relations, and the techniques used in collective bargaining. The history of the U.S. labor movement is presented—why and how it developed and the status of unions today. The chapter also discusses how labor unions have contributed to key labor and safety laws that affect all employees, whether unionized or not. Particular emphasis is placed on three legislative acts: the Wagner Act, designed to encourage trade union growth, the TaftHartley Act, which amended the Wagner Act, and the Landrum-Griffin Act, which contains provisions for regulating internal union affairs. Union-specific issues that are covered include: restricted shops, open shops, agency shops, preferential shops, union shops, closed shops, and maintenance of membership. Labor and management stereotypes that hinder effective labor/management relations are also discussed. Issues facing the unions of the next decade are reviewed, including a declining public image, unemployment, social dilemmas, membership, and enterprise resistance to unions. Of particular interest is the comparison of foreign unions and unions in multinational corporations. Learning Objectives After studying this chapter, students should be able to: 1. Define labor relations, labor union, and collective bargaining. 2. Outline the history of unions in both the private and public sectors. 3. Explain the role of the legal system in creating the labor relations climate in the United States. 4. Discuss the union organization and collective bargaining processes. 5. Explain how a grievance system is part of administering and interpreting a labor agreement. 6. Identify current trends in unionization in the United States. Barriers to Student Understanding 1. Students are typically very pro- or anti-union, based on their backgrounds and parental views. The key to this chapter is understanding how unions developed and the development of laws that still affect the workplace. 2. Because many of the previous activities of unions have led to better and safer workplace conditions and higher wages, some students may not see the need for unions for the future. A discussion regarding how unions might benefit workers in the future is worthwhile. 3. Understanding employment and safety laws is the key to understanding the impact of unions in our country. Students need to understand the on-going ramifications of these laws. Lecture Outline Introduction A Diagnostic Approach to Labor Relations Early Collective Action and Union Formation Labor Legislation Overview National Labor Relations Act (Wagner Act) Labor Management Relations Act (Taft-Hartley Act) Labor-Management Reporting and Disclosure Act (Landrum-Griffin Act) Structure and Management of Unions Federation of Unions Intermediate Union Bodies National Unions Local Unions The Local Organizing Campaign Authorization Card Campaign and Union Certification Union Security Levels of Union Security Right-to-Work Requirements Public Employee Associations Background Public Sector Labor Legislation Collective Bargaining Pre-negotiation Selecting the Negotiators Developing a Bargaining Strategy Using the Best Tactics Reaching a Formal Contractual Agreement Contract Ratification Failure to Reach Agreement Strikes Lockouts Permanent Replacements Third-Party Intervention Administering the Contact Discipline Grievances Arbitration The Changing Climate of Unionization in the United States Union Membership Trends Union Organizing Trends Key Points 1. A labor union (employee association) is an organization of employees formed to advance, through collective action, its members' interests in regard to wages and working conditions. 2. Labor relations are the continuous relationship between a defined group of employees (represented by a union or association) and management (one or more employers). This relationship includes the negotiation of a written contract concerning pay, hours, and other terms and conditions of employment, as well as interpretation and administration of this contract over its period of coverage. 3. Unions have existed in the United States since the colonial era. A brief history of labor organizations would mention the Knights of Labor (1869), the American Federation of Labor (1886), and the Congress of Industrial Organizations (1935). The AFL and the CIO merged to form the AFL-CIO in 1955. 4. Three major laws affecting labor-management relations in the United States are the Wagner Act (1935), the Taft-Hartley Act (1947), and the Landrum-Griffin Act (1959). The Wagner Act created the National Labor Relations Board, which protects the employee's right to organize, investigates unfair management or labor practices, and supervises organizing campaigns. 5. The union structure in the United States consists of four levels: the federation of unions, intermediate, national, and local. 6. Unions appeal to workers for various reasons: job security, the need to socialize, protection against unsafe or unhealthy working conditions, a communication link to management, and fair wages. Conditions in the workplace most likely to trigger organizing are lack of job security, low wages, hostile supervisory practices, and inadequate benefits. 7. Organizing is the process of forming a bargaining unit and petitioning the NLRB for recognition. The bargaining unit is two or more employees who share common employment interests and may reasonably be grouped together. 8. The organizing process includes the authorization card campaign, the certification election, and negotiation of the initial labor agreement. 9. Unions want union security in order to preserve membership. Different types of shops (restricted, open, agency, preferential, union, and closed) represent various degrees of union security. Key Terms AFL-CIO A group of union members that merged membership in 1955 from the American Federation of Labor and the Congress of Industrial Organizations. agency shop A situation in which all employees pay union dues whether or not they are union members. American Federation of Labor (AFL) A union group devoted to improving economic and working conditions for craft employees. arbitration A quasi-judicial process in which the parties agree to submit the irresolvable dispute to a neutral third party for binding settlement. Arbitration Act of 1888 The first legislation affecting unions and management. This act encouraged the voluntary and prompt settlement of labor disputes in the railroad industry. authorization card A document indicating by a simple yes or no vote whether an employee wants to be represented by a union or employee association. bargaining unit Two or more employees who share common employment interests and conditions and may reasonably be grouped together. boycott In a primary boycott, union members do not patronize the boycotted firm. In a secondary boycott, a supplier of a boycotted firm is threatened with a union strike unless it stops doing business with the firm. This latter type of boycott is illegal under the Taft-Hartley Act. certification election Once employees demonstrate an interest in joining a union, the National Labor Relations Board requires that within a period of time (in most cases 45 days of the original request) a certification election must occur. If the union receives a simple majority (50 percent plus one vote), the union becomes the exclusive bargaining representative for employees. closed shop A situation in which a new employee must be a union member when hired. Popular in the construction, maritime, and printing industries. collective bargaining The process by which representatives of the organization meet and attempt to work out a contract with representatives of the union. concession bargaining Bargaining in which something of importance is given back to management by the union. conciliation The first step in the mediation continuum, which involves an attempt to persuade disputing parties to meet and discuss their problems. decertification election An election in which employees who are represented by a union vote to drop the union. distributive bargaining Occurs when labor and management are in conflict on an issue and when the outcome is a win-lose situation. fact finding An impasse resolution technique involving a neutral third party who studies the issues in a dispute and recommends a reasonable settlement. grievance A complaint about a job that creates dissatisfaction or discomfort for the worker. injunction A court decree to stop an activity. integrative bargaining Occurs when the two sides face a common problem and when the outcome of bargaining is a win-win situation. interest arbitration An impasse resolution technique in which a neutral third party imposes a settlement on the disputing parties. jurisdictional strike A strike that occurs when two unions argue and disagree over who has a right to perform a job. Knights of Labor Founded in 1869, this was the first union to achieve significant size and influence in the United States. labor relations The continuous relationship between a defined group of employees (e.g., a union or association) and an employer. labor union An organization of employees that uses collective action to advance its members’ interests in wages and working conditions. Landrum-Griffin Act A labor law passed in 1959 that is referred to as the bill of rights of union members. It was designed to regulate and audit the internal affairs of unions. lockout A management response to union pressures in which a skeleton crew of managerial personnel is used to maintain a workplace; the plant is closed to employees. mediation A process in which a neutral third party helps through persuasion to bring together labor and management. The dispute is settled because of the skills and suggestions of a mediator. National Labor Relations Board (NLRB) A government regulatory body that administers labor laws and regulations in the private and nonprofit sectors. negotiator A member of the collective bargaining team attempting to reach a contract agreement. Norris-LaGuardia Act Also called the Anti-Injunction Act, limited the use of injunctions by federal courts to stop union picketing, boycotts, and strikes. open shop A work situation in which a union is not present and there is no management effort to keep the union out. picketing Placing union members at the plant entrances to advertise the dispute and discourage people from entering or leaving the company's premises during a strike. preferential shop The union is recognized and union members are given preference in some areas. These preferences violate the Taft-Hartley Act. Railway Labor Act A labor law passed in 1926 that provides railroad (and later airline) employees with the right to organize and bargain collectively with management. restricted shop A practice initiated by management to keep a union out without violating labor laws. A restricted shop is an attitude rather than a formal arrangement. right-to-work laws Laws that specify that two people doing the same job must be paid the same wages, whether or not they are union members. Nineteen states have right-to-work laws. Taft-Hartley Act A labor amendment of the Wagner Act, passed in 1947, that guaranteed employees' bargaining rights and also specified unfair labor union practices that would not be permitted. union shop A situation in which an employee is required to join a union after being hired. union steward A union representative who works at the job site to resolve disputes that arise in connection with the labor-management contract. Wagner Act A labor law passed in 1935 that was designed to encourage the growth of trade unions and restrain management from interfering with that growth. wildcat strike An unapproved strike that occurs because a union subgroup is not satisfied with some management decision or action. yellow-dog contract A contract (now illegal) that required that a person (such as a job applicant) would not join or form a union. Suggested Answers to Review Questions 1. What is a labor union? Define the term labor relations. 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 union members are all employees in a company or industry, regardless of occupation. Craft union members belong to one craft or to a closely related group of occupations. Labor relations is the continuous relationship between a defined group of employees (represented by a union or association) and management (one or more employers). 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. The key question is who will have power in the workplace-the employees or management. 2. Identify and describe the three key labor organizations that helped establish labor relations in the United States. 1. The Knights of Labor: This organization was founded in 1869 to establish one large union for all employees, regardless of trade, and to replace the American political/economic system of capitalism with socialism. 2. The American Federation of Labor (AFL): This organization was founded in 1886, Led by Samuel Gompers, it was a spin off of the Knights of Labor. Initially, membership was restricted to skilled trades people, such as machinists, bricklayers, and carpenters. 3. The Congress of Industrial Organizations (CIO): This organization was founded in 1935 by John Lewis, the president of the United Mine Workers, in cooperation with a number of presidents of unions expelled from the AFL. Craft, semi-skilled, and unskilled employees, such as assembly-line workers, were the initial members. The AFL and CIO competed for members until 1955, when they merged. 3. Explain the impact of the Railway Labor Act and the Wagner Act on the growth of trade unions. The Railway Labor Act (1926) provided railroad employees with the right to organize and bargain collectively with management. The National Labor Relations Act (Wagner Act), passed in 1935, was designed to encourage the growth of trade unions and restrain management from interfering with this growth. This act made the government take an active role in union-management relationships by restricting the activities of management. 4. The union structure in the United States consists of four levels. Identify and describe each. 1) The Federation of Unions. Most national and international labor unions belong to AFL-CIO. There are 33 vice presidents of this large union that meet three times a year to set policy. National headquarters provides services such as training, organizing help, strike funds, and data to be used in negotiating contracts. Specialists available for consultation include lawyers, public relations specialists, and research personnel. 2) The Intermediate Union Bodies. They interface with the AFL-CIO and include regional or district offices, trade conferences, conference boards, and joint councils. They usually service a specific geographic area with the purpose of helping to coordinate union membership, organize discussions of issues pertaining to the relationships between labor and management, and join together local unions with similar goals. 3) The National Union. National unions exercise control over the local unions, usually dealing with collecting dues admitting new members to the local, and using union funds. They also provide the local unions with support for organizing campaigns and administering contracts. There are approximately 100 national unions ranging in size from 1 million members (Teamsters) to just 18 members. 4) The Local Union. The grassroots of labor organizations in the U.S. is the local craft and industrial union. There are about 60,000 local unions, and they have direct influence over the membership. Through the local, members exercise their complaints and pay the dues that support the national union. 5. What conditions in the workplace are most likely to trigger a union organizing campaign? The conditions in the workplace that are most likely to trigger union organizing are (a) a lack of job security, (b) low wages, (c) the use of subcontracting, (d) hostile supervisory practices, and (e) inadequate health care and other benefits. 6. Describe the representation campaign from authorization cards through certification of the union. How can unions be decertified? The authorization care is a document indicating that an employee wants tob e represented by a union in the collective bargaining process. When signed by an employee, the card authorizes the union to represent that employee during negotiations. At least 30 percent of the employees must sign before the NLRB can be petitioned to hold a representation election. However, if over 50 percent of the employees sign up, the union can ask the company directly that it be named representative, without a certification election. To decertify a union, a member of the union must file a decertification application with the NLRB. If the NLRB is satisfied that at least 40 per cent of the employees in the bargaining unit no longer wish to be represented by the union, it will order a secret ballot vote. If a vote is ordered and more than 50 per cent of the votes are cast in favour of decertification, the NLRB will declare that the union no longer represents the employees in that bargaining unit. 7. Compare and contrast labor organizations in the public sector to those in the private sector. Both public and private employees first organized into unions and associations in the early 1800s. The main differences between public and private unions are who has oversight and how collective bargaining is regulated. Public unions at the federal level have been controlled by the President of the U.S. since 1836, when Andrew Jackson went to settle a strike at the naval yards in Washington, D.C. Collective bargaining rights were shaped at the federal level by Executive Orders (President Kennedy, Nixon, and Ford). Local and state public unions have been granted similar rights. Another key difference between public and private unions is the issues that can be bargained and the right to strike. All of the public unions limit the items that can be bargained, often exempting wages from the collective bargaining process. In addition, most public unions are barred from striking. These differences are related to the idea that public employees work for the general population and must provide ongoing services to the citizens. 8. What is collective bargaining? What purpose does it serve in organizations? 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. The average collective bargaining agreement is designed to last for two or three years. The purpose of the contract is to spell out the authority and responsibilities of both union and management. The major areas the contract covers are wages, hours, fringe benefits, and overtime. 9. What is a bargaining unit? How does the NLRB determine if it is appropriate? A bargaining unit is two or more employees who share common employment interests and conditions and may reasonably be grouped together. The NLRB determines if it is appropriate by verifying that the bargaining unit represents more than 50 percent (50 percent plus one vote) of the employees. 10. Describe the current trends in union membership and union organizing. Membership decreased steadily over the years until the 1990s, when union organizers devised new organizing tactics and began to aggressively recruited new members. According to the AFL-CIO, many unions have begun to reclaim lost ground. General attitudes toward unions are also improving, and the scope of the organizing campaign is changing. Unions are now trying to organize new bargaining units outside their traditional industries. The trend of using email or the Internet for union recruiting purposes raises legal issues yet to be addressed by the NLRB or the courts. Suggested Answers for Application Case 15-1 The Union’s Demand for Recognition and Bargaining Rights 1. Examine the various claims made by the union and counterclaims made by the company regarding the charges of unfair labor practices. Which of the arguments are most persuasive? Student answers will vary. However, the arguments of the union appear to best the most persuasive, especially those relating to the deprivation of benefits if the union was elected, repeatedly interrogating employees about their union activities, and threatening an employee for refusing to name the employees who attended a union meeting. 2. Was the statement by Nord to Snow on the date of the representational election a threat or a legitimate prediction and personal opinion protected by the free speech provisions of the act? In my opinion, it was a threat because he told Cecil Snow that if the union won, the company would take away the rent-free apartments. He did not say “might” or “My guess is that…” or any other similar remark that indicated that the statement was an opinion rather than a fact. 3. Was the company obligated to accept the union’s majority status claim on the basis of the authorization cards submitted by the union? The company could have voluntarily accepted the union’s majority status claim. Because an election was held instead and the union lost, the company is not obligated to recognize the union claim. However, if the union can prove that the company engaged in serious unfair labor practices during the union organizing campaign, the NLRB can force the company to recognize the union, regardless of the voting results. 4. If the company is found to have violated the act, what would be the appropriate remedy; a bargaining order or a new election? If the additional benefits had not been offered, the most appropriate remedy would be a bargaining order. But because the additional benefits, along with the firing of the previous manager, may have swayed the opinions of the employees, the most appropriate remedy would seem to be holding a new election.