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Chapter 5
Why and How Unions are Organized
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
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
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
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
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
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
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
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
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
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
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
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
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
MGMT 523 – Chapter 5
Pre-NLRB-Election Union Campaigns Contacting employees Determining interest Setting up and organizing committee Building interest by soliciting
authorization cards
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
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
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
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
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
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
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
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)
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
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
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