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Chapter 5 Why and How Unions are Organized

Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

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Page 1: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

Chapter 5

Why and How Unions are Organized

Page 2: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Why Unions Are Formed Work and Job Conditions Explanation

– Alienation Theory – Scarcity Consciousness Theory– Employee Backgrounds and Needs– Wheeler Model of Union Formation

Page 3: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Wheeler Model of Union Formation

First Stage:First Stage:Readiness to Readiness to

take actiontake action

First Stage:First Stage:Readiness to Readiness to

take actiontake action

Frustration of not Frustration of not being heardbeing heard

Frustration of not Frustration of not being heardbeing heard

Fear of Fear of deprivationdeprivation

Fear of Fear of deprivationdeprivation

Rational Rational calculationcalculation

Rational Rational calculationcalculation

Second Stage:Second Stage:Decision to take Decision to take collective actioncollective action

Second Stage:Second Stage:Decision to take Decision to take collective actioncollective action

Decision not Decision not to unionizeto unionize

Decision not Decision not to unionizeto unionize

Fear of Fear of punishmentpunishment

Fear of Fear of punishmentpunishment

Lack of belief Lack of belief in unionsin unions

Lack of belief Lack of belief in unionsin unions

Withdrawal Withdrawal and/or revengeand/or revenge

Withdrawal Withdrawal and/or revengeand/or revenge

LoveLoveLoveLove

HopeHopeHopeHope

SaliencySaliencySaliencySaliency

Page 4: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Voting Influences

Social PressureSocial Pressure• • Knows union supportersKnows union supporters• • Believes unions attractBelieves unions attract good good

Social PressureSocial Pressure• • Knows union supportersKnows union supporters• • Believes unions attractBelieves unions attract good good

Job Satisfaction/ Job Satisfaction/ DissatisfactionDissatisfaction• • Pay or economic benefitsPay or economic benefits• • SupervisionSupervision• • WorkWork

Job Satisfaction/ Job Satisfaction/ DissatisfactionDissatisfaction• • Pay or economic benefitsPay or economic benefits• • SupervisionSupervision• • WorkWork

Attitudes and Beliefs Attitudes and Beliefs about Unionsabout Unions• • GeneralGeneral• • SpecificSpecific

Attitudes and Beliefs Attitudes and Beliefs about Unionsabout Unions• • GeneralGeneral• • SpecificSpecific

Union InstrumentalityUnion Instrumentality• • Fair treatmentFair treatment• • Better payBetter pay• • Better management-Better management- employee relations employee relations

Union InstrumentalityUnion Instrumentality• • Fair treatmentFair treatment• • Better payBetter pay• • Better management-Better management- employee relations employee relations

Employee VoteEmployee Vote• • For unionFor union• • Against unionAgainst union

Employee VoteEmployee Vote• • For unionFor union• • Against unionAgainst union

Page 5: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Costs versus Returns for Organizing

Additional dues and fees Extra compensation gained by

bargaining Enhanced political influence Social benefits and satisfaction

Page 6: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Changes Challenging Union Organizing Attempts Workforce

– Temporary employees

– Part-time employees

– Independent contractors

– Minorities

– Immigrant workers

– Older workers

– Higher-skilled workers

Workplace– Declines in unions’

stronghold industries

– Increases in service industries workers

– Increases in industries with skilled workers

– Outsourcing

Page 7: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Organizing Professional Employees Professional Values Issues in collective bargaining:

– Professional standards– Participation in policy making– Regulation of professional work– Training and professional development– Commitment of organizational resources to

professional goals– Criteria for personnel decisions regarding

professionals

Page 8: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Activities of the Union in Organizing Employees Union Actions

– Responds to request for assistance – Emphasizes the benefits of collective

bargaining and grievance procedures Roles of Union Organizers

– Educator– Persuader– Supporter

Page 9: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Union Functions

Represent the interest of employees Negotiate a binding contract with

management Provide an opportunity to influence

through contract and administration Allow members to have input into

workplace decisions Grievance procedure typically includes

union representation

Page 10: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Keys for the Union to Achieve Representation Serious commitment to organizing Use of representative committees

– More in touch with concerns of the bargaining unit – Better access to employees at the workplace– Demonstrate union democracy

Personal contact Bargaining due diligence Focus on issues of fairness or service quality Use of solidarity days

Page 11: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Activities of the Company in Union Organizing Employer Actions

– Campaign tactics– Unfair Labor Practices

Employer Effects on Elections– Influencing the composition of the

bargaining unit– Setting the date for the election

Page 12: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Advantages of the Company Full access to its employees Can offer possibility of improvement

without additional cost of unionization for employees

Can benefit from employees’ fear of change.

Lengthy time between successful organization and issuance of the bargaining order

Page 13: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Methods for Organizing Unions Costs versus Returns for Organizing

– Additional dues and fees – Extra compensation gained by bargaining– Enhanced political influence– Social benefits and satisfaction

Increasing the Success of Organizing Drives– Employers’ provision of lists of employees– An agreement to place time limits on the

organizing campaigns

Page 14: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Union Representation ProcedureInterestInterest 1. Internal: Employees contact union organizer

2. External: Union organizer contacts employees

1. Internal: Employees contact union organizer2. External: Union organizer contacts employees

Ways for unionto obtain

recognition

Ways for unionto obtain

recognitionVoluntary

Recognition

VoluntaryRecognition

NLRB Directive(Gissel Doctrine)

NLRB Directive(Gissel Doctrine)

Secret-BallotElection

Secret-BallotElection

ConsentElection

ConsentElection Contested

Election

ContestedElection

UnionWins

UnionWins Union

Loses

UnionLoses

UnionCertified

UnionCertified

12 Month Election Bar

12 Month Election Bar

Union Obligation:Duty to bargain with company in good faith and represent all bargaining unit employees fairly

Company Obligation:Duty to bargain with union in good faith and recognize union as the exclusive bargaining representative for all bargaining unit employees

Union Obligation:Duty to bargain with company in good faith and represent all bargaining unit employees fairly

Company Obligation:Duty to bargain with union in good faith and recognize union as the exclusive bargaining representative for all bargaining unit employees

Page 15: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Pre-NLRB-Election Union Campaigns Contacting employees Determining interest Setting up and organizing committee Building interest by soliciting

authorization cards

Page 16: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Filing a Petition for Election Employer refuses union’s recognition request Union files an election petition with the NLRB NLRB, employer, and union discuss:

– Bargaining unit composition– Voter eligibility– Ballot, date, time and place for election

Consent election Contested election

Page 17: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Community of Interest Interest of the employees Commonality of wages, working conditions,

training, and skills Prior history of collective bargaining Transfers of employees among facilities Geography and proximity of workplaces Employer’s administrative or territorial

divisions Degree of separation or integration of the

employees’ work

Page 18: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Restrictions on Community of Interest Separate bargaining units

– Nonprofessional employees

– Professional employees

– Plant guards

– Craft units optional

Those excluded by LMRA Confidential employees and family

members of owners

Page 19: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Voting Eligibility

Employment in a bargaining unit job Employment during the eligibility period Employment on the date of the election If on strike, striking employee must be

within 12 months of the beginning of an economic strike

Page 20: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

NLRB Election Process Untimely Petitions Contract Bar Doctrine Excelsior Rule The Election

– Secret ballots with union or no union choice used– Election held at workplace during working hours

on a payday– Simple majority decision – Election conduct and votes can be challenged for

7 days

Page 21: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Union Success Factors Organizing

– Employers’ provision of lists of employees– An agreement to place time limits on the

organizing campaigns

Voting– High (90%) voter turnout– Short time before election occurs– Smaller election unit– Smaller union supporting the organizing effort– Union independent of the AFL-CIO

Page 22: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Securing a First Contract

Preexisting high wages in the firm The presence of other bargaining units

in the firm Large election victories Active participation by international

union representatives

Page 23: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Trends in Union Representation Elections The yearly number of elections has

fallen sharply The union success rate (wins) has

steadily declined Unions are less likely to win NLRB-

sponsored elections in bargaining units (over 100 employees)

Page 24: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Conduct of Campaigns and NLRB Policies Totality of Conduct Doctrine Captive Audience Polling or questioning employees Distribution of Union literature Solicitation by employees on Company

Property Showing films Use of E-Mail

Page 25: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

New Organizing Strategies

Using the Internet Salting Organizing an employer’s suppliers Creating videos Holding public rallies and marches Funding more organizing efforts

Page 26: Chapter 5 Why and How Unions are Organized. MGMT 523 – Chapter 5 Why Unions Are Formed Work and Job Conditions Explanation –Alienation Theory –Scarcity

MGMT 523 – Chapter 5

Decertification

A majority of the bargaining unit votes to remove the union’s certification

Support of 30% of the unit required Reasons for Decertification

– Fair treatment of employees by employers– Poor job by unions of providing services to

members– Inability to gain an initial labor contract