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BANGOR TRANSFER ABROAD BANGOR TRANSFER ABROAD PROGRAMMEPROGRAMME
EMPLOYMENT RELATIONSEMPLOYMENT RELATIONS
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–2
Why Do Workers Organize?Why Do Workers Organize?
• SolidaritySolidarity To get their fair shareTo get their fair share
Improved wages, hours, working conditions, and Improved wages, hours, working conditions, and benefitsbenefits
To protect themselves from management whimsTo protect themselves from management whims
• Conditions Favoring Employee OrganizationConditions Favoring Employee Organization Low moraleLow morale Fear of job lossFear of job loss Arbitrary management actionsArbitrary management actions
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–3
What Do Unions Want?What Do Unions Want?
Increased workplace security for the union
Improved wages, hours, working conditions, job
security, and benefits
Union Bargaining Aims
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–4
Union SecurityUnion Security
Closed shop
Open shop
Union shop
Types of Union Security
Agency shop
Membership
maintenance
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–5
Unfair Employer Labor PracticesUnfair Employer Labor Practices• To “interface with, restrain, or coerce employees” To “interface with, restrain, or coerce employees”
in exercising their right of self-organizationin exercising their right of self-organization
• To dominate or interfere with either the formation To dominate or interfere with either the formation or the administration of labor unionsor the administration of labor unions
• To discriminate against employees for legal union To discriminate against employees for legal union activitiesactivities
• To discharge or discriminate against employees who To discharge or discriminate against employees who file unfair practice charges against the companyfile unfair practice charges against the company
• To refuse to bargain collectively with their employees’ To refuse to bargain collectively with their employees’ representativesrepresentatives
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–6
Unfair Union Labor PracticesUnfair Union Labor Practices• To restrain or coerce employees from exercising To restrain or coerce employees from exercising
their guaranteed bargaining rights.their guaranteed bargaining rights.
• To cause an employer to discriminate against To cause an employer to discriminate against employees in order to encourage or discourage employees in order to encourage or discourage their membership in a union.their membership in a union.
• To refuse to bargain in good faith with the employer To refuse to bargain in good faith with the employer about wages, hours, and other employment conditions. about wages, hours, and other employment conditions. Certain strikes and boycotts are also unfair practices.Certain strikes and boycotts are also unfair practices.
• To engage in “featherbedding” (requiring an employer To engage in “featherbedding” (requiring an employer to pay an employee for services not performed).to pay an employee for services not performed).
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–7
FIGURE 15–4 Union Avoidance: What Not to Do
• 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.
Human resources professionals must be very careful to do the following during union activities at their firms:
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–8
Violations of Good Faith BargainingViolations of Good Faith Bargaining
1.1. Surface bargainingSurface bargaining
2.2. Inadequate concessionsInadequate concessions
3.3. Inadequate proposals and demandsInadequate proposals and demands
4.4. Dilatory tacticsDilatory tactics
5.5. Imposing conditionsImposing conditions
6.6. Making unilateral changes in conditionsMaking unilateral changes in conditions
7.7. Bypassing the representativeBypassing the representative
8.8. Committing unfair labor practices during negotiationsCommitting unfair labor practices during negotiations
9.9. Withholding informationWithholding information
10.10. Ignoring bargaining itemsIgnoring bargaining items
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–9
Preparing for NegotiationsPreparing for Negotiations• Sources of Negotiating InformationSources of Negotiating Information
Local and industry pay and benefits comparisons Local and industry pay and benefits comparisons
Distribution of demographics of the workforceDistribution of demographics of the workforce
Benefit costs, overall earnings levels, and the amount and Benefit costs, overall earnings levels, and the amount and cost of overtimecost of overtime
Cost of the current labor contract and the increased cost—total, Cost of the current labor contract and the increased cost—total, per employee, and per hour—of the union’s demandsper employee, and per hour—of the union’s demands
Grievances and feedback from supervisorsGrievances and feedback from supervisors
Attitude surveys of employeesAttitude surveys of employees
Informal conferences with local union leadersInformal conferences with local union leaders
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–10
Classes of Bargaining ItemsClasses of Bargaining Items
Mandatory items
Illegal items
Bargaining Item Categories
Voluntary items
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–11
TABLE 15–1 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
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–12
Bargaining StagesBargaining Stages
1.1. Presentation of initial demandsPresentation of initial demands Both parties are usually quite far apart on some issues.Both parties are usually quite far apart on some issues.
2.2. Reduction of demandsReduction of demands Each side trades off some of its demands to gain others.Each side trades off some of its demands to gain others.
3.3. Subcommittee studiesSubcommittee studies The parties form joint subcommittees to try to work out The parties form joint subcommittees to try to work out
reasonable alternatives.reasonable alternatives.
4.4. An informal settlementAn informal settlement Each group goes back to its sponsor.Each group goes back to its sponsor. Union members vote to ratify the agreement.Union members vote to ratify the agreement.
5.5. Signing the formal agreementSigning the formal agreement
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–13
Bargaining HintsBargaining Hints
1.1. Be sure to set clear objectives for every bargaining Be sure to set clear objectives for every bargaining item, and be sure you understand the reason for each.item, and be sure you understand the reason for each.
2.2. Do not hurry.Do not hurry.
3.3. When in doubt, caucus with your associates.When in doubt, caucus with your associates.
4.4. Be well prepared with data supporting your position.Be well prepared with data supporting your position.
5.5. Strive to keep some flexibility in your position.Strive to keep some flexibility in your position.
6.6. Don’t concern yourself just with what the other party Don’t concern yourself just with what the other party says and does; find out why.says and does; find out why.
7.7. Respect importance of face saving for the other party.Respect importance of face saving for the other party.
8.8. Be alert to the real intentions of the other party—not Be alert to the real intentions of the other party—not only for goals, but also for priorities.only for goals, but also for priorities.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–14
Bargaining Hints (cont’d)Bargaining Hints (cont’d)
9.9. Be a good listener.Be a good listener.
10.10. Build a reputation for being fair but firm.Build a reputation for being fair but firm.
11.11. Learn to control your emotions and use them Learn to control your emotions and use them as a tool.as a tool.
12.12. As you make each bargaining move, be sure you As you make each bargaining move, be sure you know its relationship to all other moves.know its relationship to all other moves.
13.13. Measure each move against your objectives.Measure each move against your objectives.
14.14. Remember that collective bargaining is a compromise Remember that collective bargaining is a compromise process. There is no such thing as having all the pie.process. There is no such thing as having all the pie.
15.15. Try to understand the people and their personalities.Try to understand the people and their personalities.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–15
When Bargaining StopsWhen Bargaining Stops• An Impasse An Impasse
Usually occurs because one party is demanding Usually occurs because one party is demanding more than the other will offer. more than the other will offer.
Sometimes an impasse can be resolved through Sometimes an impasse can be resolved through a third party—a disinterested person such as a a third party—a disinterested person such as a mediator or arbitrator. mediator or arbitrator.
If the impasse is not resolved:If the impasse is not resolved:
The union may call a work stoppage, or strike, The union may call a work stoppage, or strike, to put pressure on management.to put pressure on management.
Management may lock out employees.Management may lock out employees.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–16
Resolution of an ImpasseResolution of an Impasse
Mediation Arbitration
Third Party Involvement
Fact finding
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–17
Third-Party InvolvementThird-Party Involvement• MediationMediation
A neutral third party (mediator) tries to assist A neutral third party (mediator) tries to assist the principals in reaching an agreement by the principals in reaching an agreement by holding meetings with each party to find holding meetings with each party to find common ground for further bargaining.common ground for further bargaining.
The mediator is a go-between and has no The mediator is a go-between and has no authority to dictate terms or make concessions.authority to dictate terms or make concessions.
The mediator communicates assessments The mediator communicates assessments of the likelihood of a strike, the possible of the likelihood of a strike, the possible settlement packages available, and the like.settlement packages available, and the like.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–18
Third-Party Involvement (cont’d)Third-Party Involvement (cont’d)• Fact FinderFact Finder
A neutral party who studies the issues in a A neutral party who studies the issues in a dispute and makes a public recommendation dispute and makes a public recommendation for a reasonable settlement.for a reasonable settlement.
• ArbitrationArbitration An arbitrator often has the power to determine An arbitrator often has the power to determine
and dictate the settlement terms. and dictate the settlement terms. Binding arbitration can guarantee a solution Binding arbitration can guarantee a solution
to an impasse.to an impasse. Interest arbitration for labor agreementsInterest arbitration for labor agreements Rights arbitration defines the terms of Rights arbitration defines the terms of
existing contractsexisting contracts
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–19
Resolving an Impasse: Union Resolving an Impasse: Union StrikesStrikes
Economic strike
Unfair labor practice strike
Wildcat strike
Sympathy strike
Types of Strikes
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–20
Pressure Tactic AlternativesPressure Tactic Alternatives• UnionsUnions
PicketingPicketing Corporate campaignCorporate campaign BoycottBoycott Inside gamesInside games InjunctionsInjunctions
• EmployersEmployers Replacement workersReplacement workers LockoutsLockouts InjunctionsInjunctions
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–21
Main Sections of a Contract Main Sections of a Contract AgreementAgreement• Management rightsManagement rights
• Union security and automatic payroll dues deductionUnion security and automatic payroll dues deduction
• Grievance proceduresGrievance procedures
• Arbitration of grievancesArbitration of grievances
• Disciplinary proceduresDisciplinary procedures
• Compensation ratesCompensation rates
• Hours of work and overtimeHours of work and overtime
• Benefits: vacations, holidays, insurance, pensionsBenefits: vacations, holidays, insurance, pensions
• Health and safety provisionsHealth and safety provisions
• Employee security seniority provisionsEmployee security seniority provisions
• Contract expiration dateContract expiration date
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–22
GrievancesGrievances• GrievanceGrievance
Any factor involving wages, Any factor involving wages, hours, or conditions of hours, or conditions of employment that is used employment that is used as a complaint against the as a complaint against the employeremployer
• Sources of GrievancesSources of Grievances DisciplineDiscipline SenioritySeniority Job evaluationsJob evaluations Work assignmentsWork assignments OvertimeOvertime VacationsVacations Incentive plansIncentive plans Holiday payHoliday pay Problem employeesProblem employees AbsenteeismAbsenteeism InsubordinationInsubordination Plant rulesPlant rules
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–23
Grievance ProcedureGrievance Procedure• Grievant and shop steward meet with supervisor.Grievant and shop steward meet with supervisor.
If not resolved, employee files formal grievanceIf not resolved, employee files formal grievance
• Grievant and shop steward meet with supervisor’s boss. Grievant and shop steward meet with supervisor’s boss.
If grievance is not resolved, meeting with higher-level managers.If grievance is not resolved, meeting with higher-level managers.
• If not resolved, matter goes to arbitration.If not resolved, matter goes to arbitration.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–24
Handling Grievances: DoHandling Grievances: Do1.1. Investigate and handle each case as though it may eventually Investigate and handle each case as though it may eventually
result in arbitration.result in arbitration.
2.2. Talk with the employee about his or her grievance; give the Talk with the employee about his or her grievance; give the person a full hearing.person a full hearing.
3.3. Require the union to identify specific contractual provisions Require the union to identify specific contractual provisions allegedly violated.allegedly violated.
4.4. Comply with the contractual time limits for handling the grievance.Comply with the contractual time limits for handling the grievance.
5.5. Visit the work area of the grievance.Visit the work area of the grievance.
6.6. Determine whether there were any witnesses.Determine whether there were any witnesses.
7.7. Examine the grievant’s personnel record.Examine the grievant’s personnel record.
8.8. Fully examine prior grievance records.Fully examine prior grievance records.
9.9. Treat the union representative as your equal.Treat the union representative as your equal.
10.10. Hold your grievance discussions privately.Hold your grievance discussions privately.
11.11. Fully inform your own supervisor of grievance matters.Fully inform your own supervisor of grievance matters.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–25
Handling Grievances: Don’tHandling Grievances: Don’t1.1. Discuss the case with the union steward alone—the grievant should be Discuss the case with the union steward alone—the grievant should be
there.there.
2.2. Make arrangements with individual employees that are inconsistent with Make arrangements with individual employees that are inconsistent with the labor agreement.the labor agreement.
3.3. Hold back the remedy if the company is wrong.Hold back the remedy if the company is wrong.
4.4. Admit to the binding effect of a past practice.Admit to the binding effect of a past practice.
5.5. Relinquish to the union your rights as a manager.Relinquish to the union your rights as a manager.
6.6. Settle grievances on what is “fair.” Stick to the labor agreement.Settle grievances on what is “fair.” Stick to the labor agreement.
7.7. Bargain over items not covered by the contract.Bargain over items not covered by the contract.
8.8. Treat as subject to arbitration claims demanding discipline or discharge Treat as subject to arbitration claims demanding discipline or discharge of managers.of managers.
9.9. Give long written grievance answers.Give long written grievance answers.
10.10. Trade a grievance settlement for a grievance withdrawal.Trade a grievance settlement for a grievance withdrawal.
11.11. Deny grievances because “your hands are tied by management.”Deny grievances because “your hands are tied by management.”
12.12. Agree to informal amendments in the contract.Agree to informal amendments in the contract.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–26
The Union Movement Today The Union Movement Today and Tomorrowand Tomorrow
• Reasons for the Decline in Union MembershipReasons for the Decline in Union Membership Laws have taken over much of the union’s role Laws have taken over much of the union’s role
as the workers’ protector.as the workers’ protector.
Automation, globalization, and technology have Automation, globalization, and technology have reduced jobs in unionized manufacturing sectors.reduced jobs in unionized manufacturing sectors.
Unions have failed to organize new plants.Unions have failed to organize new plants.
Management has become better at resisting Management has become better at resisting union-organizing efforts.union-organizing efforts.
• Upswing Coming?Upswing Coming? Unions have been more aggressive lately in organizing Unions have been more aggressive lately in organizing
public sector workers and white-collar workers.public sector workers and white-collar workers.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–27
Public Employees and UnionsPublic Employees and Unions• Size of Public UnionsSize of Public Unions
The National Education Association; the American The National Education Association; the American Federation of State, County, and Municipal Employees; and Federation of State, County, and Municipal Employees; and the American Federation of Teachers—are among the the American Federation of Teachers—are among the largest U.S. unions.largest U.S. unions.
• Laws Supporting Public Sector OrganizingLaws Supporting Public Sector Organizing Executive Order 10988Executive Order 10988
Recognized organizing rights of public sector employeesRecognized organizing rights of public sector employees
Title VII of the Civil Service Reform Act of 1978 Title VII of the Civil Service Reform Act of 1978 (known as the Federal Labor Relations Act)(known as the Federal Labor Relations Act)
Established the Federal Labor Relations AuthorityEstablished the Federal Labor Relations Authority
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–28
Organizing professionals and white-collar
employees
Pushing “card check” for union recognition
Filing class action lawsuits to support
workers
Forming alliances with overseas unions
New Union Tactics
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–29
High-Performance Work Systems, High-Performance Work Systems, Employee Participation, and Employee Participation, and UnionsUnions• To avoid having participation programs viewed To avoid having participation programs viewed
as sham unions:as sham unions: Involve employees in the formation of programs.Involve employees in the formation of programs. Emphasize that programs exist only to address Emphasize that programs exist only to address
issues such as quality and productivity.issues such as quality and productivity. Don’t establish programs when union organizing Don’t establish programs when union organizing
activities are beginning.activities are beginning. Use volunteers and rotate membership.Use volunteers and rotate membership. Minimize management participation in programs to Minimize management participation in programs to
avoid interference or the perception of domination.avoid interference or the perception of domination.