Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Dealing with Organized Labor [whether unionized or not! ] Chapter 15 15-1

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Dealing with Organized Labor [whether unionized or not! ]

Chapter 15

15-1


History of Unions

U.S. Labor Unions:

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Legally unprotected until 1935 [strikes and related activities considered illegal restraint of trade under antitrust laws]

Unions widely supported in 1930s [world-wide labor movement—historical context]

Not supported as much today due to offshoring in certain industries, economics

Employers prefer a nonunion workforce [compare/contrast employment at will]


The Legal Environment

3 Most Important Laws

1) Wagner Act (1935)

2) Taft-Hartley Act (1947)

3) Landrum-Griffin Act (1959)

[Others—e.g., RLA]

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1) The Wagner Act [Original NLRA]

Sets up National Labor Relations Board (NLRB) Independent federal agency Certifies elections Investigates unfair labor practice charges [see text, p. 467, for specific

provisions] Can issue cease & desist order if employer:

Interferes w/ union formation/administration Discriminates against union members [cf. “salting”] Refuses to bargain with the union

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2) Taft-Hartley and 3) Landrum-Griffin Acts

∎ Taft-Hartley Act [text at p. 468]∎ Protects mgmt. & workers from union coercion∎ Prohibits discrimination re: non-union status∎ Illegal for union not to bargain in good faith∎ Allows individual states to bar shop clauses &

establish “right to work” states [see web link]

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∎ The Landrum-Griffin Act [text at p. 469]∎ Protects union members from union

leaders∎ Requires unions bill of rights and

constitution∎ Regulates union elections and finances


Labor Relations in the U.S. Adversarial Labor-Management Relations Shrinking Union Membership [private sector]

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Labor Relations in Other Countries

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France—more politically involved China—low political and economic

involvement Sweden—high both politically and

economically Germany:

Works Councils—joint committees Codetermination—union on board of

directors Japan:

Enterprise Unions—all workers in company

System fostered by “lifetime” employment [on the decline due to economic realities]


Labor Relations Strategy

Two Basic Strategies Union Acceptance Union Avoidance

Union Substitution Union

Suppression

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Labor Relations Process

Union Organizing Union solicitation Pre-election conduct Certification election Employee Free Choice Act

[passage seems unlikely; political hot potato much like TEAM Act--see Case 15.3; more discussion later]

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Collective Bargaining

Bargaining Behavior Must negotiate in “good faith” Both sides develop and present

proposals, continue to impasse

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Bargaining Types Distributive Integrative Shirtless [Putin only ]


Guidelines for Integrative Bargaining

Try to understand others’ needs/goals Create a free flow of information Emphasize commonalities Minimize differences Search for solutions that meet all parties’

goals and objectives Develop flexible responses to proposals Avoid entrenched “positions” vs. interests Seek to enlarge the “pie” vs. bigger share

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Bargaining Topics Mandatory

Wages, hours, and conditions of employment

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Permissive Both parties must agree to add to

agenda E.g. board service, retiree benefits Shop clauses, no subcontracting

rules Illegal

Featherbedding Discriminatory practices, etc.


The Impact of Unions on HRM

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Staffing – seniority based [vs. merit]

Compensation Higher in union shops [cf. “2-tier”

systems] Benefits generally better in union

shops Prefer across the board raises (e.g.,

COLAs) Employee Relations [compare “at-

will”] Union gives employees a voice;

disputes can be resolved short of termination

Job design—Team structures involved with management may be limited [Case 15.3]

Documents

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Dealing with Organized Labor [whether unionized or not! ] Chapter 15 15-1