Mgmt440 t13 Labor Relations

7/31/2019 Mgmt440 t13 Labor Relations

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BY VAISHALI & KIRTI

(100802, 100762)

1 2008 by Paul L. Schumann. All rights reserved.


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BARGAINING BEHAVOIURBargain :- Bargain refers to an agreement b/w parties

fixing obligations that each promises to carry out.

Bargaining:-An agreement between parties settling whateach gives or receives in a transaction between them orwhat course of action or policy each pursues in respectto the other .

Bargaining power:-In negotiating, capacity of one partyto dominate the other due to its influence, power, size,or status, or through a combination of differentpersuasion tactics.

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Scope of Bargaining Issues Types of bargaining issues

Mandatory issues: issues that if one side wants to negotiatethe issue, the other side cannot simply refuse to negotiate it

Duty to bargain in good faith on mandatory issues

Not required to make concessions or reach agreement

Must make an honest effort to reach agreement

Failure to bargain in good faith is a ULP

NLRB decides by applying their totality of conduct doctrine

Disputes over mandatory issues may be pressed to impasse

Examples of mandatory issues: terms & conditions of employment

Examples: pay, benefits, hours, working conditions (overtimerules, layoff rules, safety issues, seniority rights, etc.), etc.

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Scope of Bargaining Issues Types of bargaining issues (more)

Permissive issues: issues over which the parties arepermitted to negotiate if both sides agree to negotiateover the issues

No duty to bargain in good faith for permissive issues

If one side wants to negotiate a permissive issue & the otherside refuses, then thats the end of negotiating that issue

Disputes over permissive issues may not be pressed to impasse Examples of permissive issues: amount of union dues, prices

of the companys products or services, internal unionprocedures

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Scope of Bargaining Issues Types of bargaining issues (more)

Prohibited (illegal) issues: issues over which the partiescannot legally negotiate

Examples of prohibited (illegal) issues:

Illegal discrimination in hiring

Closed shop agreements (a type of union security agreement)

One mandatory issue that most unions want tonegotiate is the inclusion of a union securityagreement in the contract

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Bargaining Types of bargaining (Walton & McKersie):

Distributive bargaining: negotiating on issues where the goalsof the parties are in conflict Zero-sum game: what one side wins, the other side loses

Integrative bargaining: negotiating on issues where the partieshave common goals Positive-sum game: both sides can win

Attitudinal structuring: negotiating activities to influence theattitudes of the parties Examples of attitudes: cooperation, hostility, trust, respect, etc.

Intra-organizational bargaining: negotiating to resolvedifferences among the members of the same side There may be differences in opinions & goals among the managers &

among the union & the workers

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Bargaining Bargaining power (more)

Unions bargaining powerdepends on: The cost to the company of disagreeing to the unions

demands relative to cost to the company of agreeing to theunions demands Which is cheaper for the company: to agree with the unions

demands or to disagree with the unions demands?

If it is very expensive for the company to disagree with the

unions demands (e.g., itll trigger a very expensive strike)while it is not expensive for the company to agree to theunions demands (e.g., the unions demands can be easily &cheaply accommodated), then it is more likely that thecompany will agree to the unions demands the union hasbargaining power at that point in time

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BargainingUnion Bargaining Power

Union Tactics to Increase ItsBargaining Power

Cost tocompany of

disagreeingwith

unionsdemands

Cost tocompany of

agreeingwith

unionsdemands

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Union says Well raise your costsif we dont get what we want

Withdraw cooperation withmanagement

Threaten a strike

Time a strike to maximize the costto the company

Build support for a strike among

key workers who are hard toreplace

Picket during a strike

Union says Well lower your costsif we get what we want Make a concession


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Bargaining Bargaining power (more)

Companys bargaining powerdepends on: The cost to the union of disagreeing to the companys

demands relative to cost to the union of agreeing to thecompanys demands Which is cheaper for the union: to agree with the companys

demands or to disagree with the companys demands?

If it is very expensive for the union to disagree with the

companys demands (e.g., itll trigger massive layoffs) whileit is not expensive for the union to agree to the companysdemands (e.g., the companys demands can be easilyaccommodated), then it is more likely that the union willagree to the companys demands the company hasbargaining power at that point in time

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BargainingCompany BargainingPower

Company Tactics to IncreaseIts Bargaining Power

Cost tounion of

disagreeingwith

companysdemands

Cost tounion ofagreeing

withcompanysdemands

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Management says Well raise yourcosts if we dont get what we want

Threaten layoffs or a plant closing Plan to continue operations

during a strike using supervisorsor replacement workers

Encourage customers to stockpileinventory in anticipation of astrike

Threaten a lockout

Management says Well loweryour costs if we get what we want Make a concession


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BargainingUnion Bargaining Power Company Bargaining Power

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Cost tocompany of

disagreeingwith

unionsdemands

Cost tocompany of

agreeingwith

unionsdemands

Cost tounion of

disagreeingwith

companysdemands

Cost tounion ofagreeing

withcompanysdemands

>=

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Mgmt440 t13 Labor Relations