PowerPoint Presentation Design by Charlie Cook The University of West Alabama Prepared by Joseph B. Mosca, Monmouth University and Marla M. Kameny, Baton

PowerPoint Presentation Design by Charlie CookThe University of West Alabama

PowerPoint Presentation Design by Charlie CookThe University of West Alabama

Prepared by Joseph B. Mosca, Monmouth University and Marla M. Kameny, Baton Rouge Community College

Prepared by Joseph B. Mosca, Monmouth University and Marla M. Kameny, Baton Rouge Community College

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved. 11–2

Learning ObjectivesAfter studying this chapter, you should be able to:Learning ObjectivesAfter studying this chapter, you should be able to:

1. Describe the role of labor unions in organizations.

2. Identify and summarize trends in unionization.

3. Discuss the unionization process.

4. Describe the collective-bargaining process.

5. Discuss how labor agreements are negotiated.

6. Describe how impasses get resolved and agreements are administered.

7. Discuss emerging labor issues in the twenty-first century.

1. Describe the role of labor unions in organizations.

2. Identify and summarize trends in unionization.

3. Discuss the unionization process.

4. Describe the collective-bargaining process.

5. Discuss how labor agreements are negotiated.

6. Describe how impasses get resolved and agreements are administered.

7. Discuss emerging labor issues in the twenty-first century.


Labor Unions’ Role in OrganizationsLabor Unions’ Role in Organizations

• Labor RelationsLabor RelationsThe process of dealing with employees who The process of dealing with employees who

are represented by a union.are represented by a union.

• Labor UnionLabor UnionA legally constituted group of individuals A legally constituted group of individuals

working together to achieve shared, job-working together to achieve shared, job-related goals, including higher pay and related goals, including higher pay and shorter working hours. shorter working hours.

• Labor RelationsLabor RelationsThe process of dealing with employees who The process of dealing with employees who

are represented by a union.are represented by a union.

• Labor UnionLabor UnionA legally constituted group of individuals A legally constituted group of individuals

working together to achieve shared, job-working together to achieve shared, job-related goals, including higher pay and related goals, including higher pay and shorter working hours. shorter working hours.


What is Collective Bargaining?

What is Collective Bargaining?

The process by which managers and union leaders negotiate acceptable terms and conditions of employment for workers represented by the union.

The process by which managers and union leaders negotiate acceptable terms and conditions of employment for workers represented by the union.


A Historical Time Line of Unionization in the United States


Historical Development of UnionsHistorical Development of Unions

• Knights of LaborKnights of Labor Expanded its goals and its membership to include Expanded its goals and its membership to include

workers in numerous fields rather than a single workers in numerous fields rather than a single industry.industry.

• American Federation of Labor (AFL)American Federation of Labor (AFL) Focused its efforts on improved working conditions Focused its efforts on improved working conditions

and better employment contracts rather than getting and better employment contracts rather than getting involved in legislative and political activities.involved in legislative and political activities.

• Congress of Industrial Organizations (CIO)Congress of Industrial Organizations (CIO) Early union which focused on organizing employees Early union which focused on organizing employees

by industry, regardless of their craft, skills, or by industry, regardless of their craft, skills, or occupation. occupation.

• Knights of LaborKnights of Labor Expanded its goals and its membership to include Expanded its goals and its membership to include

workers in numerous fields rather than a single workers in numerous fields rather than a single industry.industry.

• American Federation of Labor (AFL)American Federation of Labor (AFL) Focused its efforts on improved working conditions Focused its efforts on improved working conditions

and better employment contracts rather than getting and better employment contracts rather than getting involved in legislative and political activities.involved in legislative and political activities.

• Congress of Industrial Organizations (CIO)Congress of Industrial Organizations (CIO) Early union which focused on organizing employees Early union which focused on organizing employees

by industry, regardless of their craft, skills, or by industry, regardless of their craft, skills, or occupation. occupation.


Conflict, each challenges the other.

Armed truce, each views the other as antagonistic.

Power bargaining, each side tries to gain.

Accommodation, each tolerates the other.

Cooperation, both work together.

Collusion, both cooperate to the point of adversity.

Beyond the Book: Types of Union-Management RelationsBeyond the Book: Types of Union-Management Relations


Legal Context of UnionsLegal Context of Unions

• National Labor Relations Act of 1935National Labor Relations Act of 1935Commonly referred to as the Wagner ActCommonly referred to as the Wagner ActGranted power to labor unions on a footing Granted power to labor unions on a footing

more equal with managers in terms of the more equal with managers in terms of the rights of employees.rights of employees.

• National Labor Relations Board (NLRB)National Labor Relations Board (NLRB)Administers most labor laws in the United Administers most labor laws in the United

States.States.

• National Labor Relations Act of 1935National Labor Relations Act of 1935Commonly referred to as the Wagner ActCommonly referred to as the Wagner ActGranted power to labor unions on a footing Granted power to labor unions on a footing

more equal with managers in terms of the more equal with managers in terms of the rights of employees.rights of employees.

• National Labor Relations Board (NLRB)National Labor Relations Board (NLRB)Administers most labor laws in the United Administers most labor laws in the United

States.States.


Legal Context of Unions (cont’d)Legal Context of Unions (cont’d)

• The Labor Management Relations ActThe Labor Management Relations ActAlso known as the Taft-Hartley Act (1947)Also known as the Taft-Hartley Act (1947)

Was a response to strikes in the years Was a response to strikes in the years following World War II.following World War II.

Curtailed and limited union power, including Curtailed and limited union power, including closed shop agreements under which only closed shop agreements under which only workers who are already union members may workers who are already union members may be hired by the employer.be hired by the employer.

• The Labor Management Relations ActThe Labor Management Relations ActAlso known as the Taft-Hartley Act (1947)Also known as the Taft-Hartley Act (1947)

Was a response to strikes in the years Was a response to strikes in the years following World War II.following World War II.

Curtailed and limited union power, including Curtailed and limited union power, including closed shop agreements under which only closed shop agreements under which only workers who are already union members may workers who are already union members may be hired by the employer.be hired by the employer.


Legal Context of Unions (cont’d)Legal Context of Unions (cont’d)

• Union Shop AgreementUnion Shop AgreementRequires that nonunion applicants can be Requires that nonunion applicants can be

hired, but they must join the union within a hired, but they must join the union within a specified time to keep their jobs.specified time to keep their jobs.

• Landrum-Griffin Act (Labor Management Landrum-Griffin Act (Labor Management Reporting and Disclosure Act) of 1959Reporting and Disclosure Act) of 1959Focused on eliminating various unethical, Focused on eliminating various unethical,

illegal, and undemocratic union practices. illegal, and undemocratic union practices.

• Union Shop AgreementUnion Shop AgreementRequires that nonunion applicants can be Requires that nonunion applicants can be

hired, but they must join the union within a hired, but they must join the union within a specified time to keep their jobs.specified time to keep their jobs.

• Landrum-Griffin Act (Labor Management Landrum-Griffin Act (Labor Management Reporting and Disclosure Act) of 1959Reporting and Disclosure Act) of 1959Focused on eliminating various unethical, Focused on eliminating various unethical,

illegal, and undemocratic union practices. illegal, and undemocratic union practices.


Union StructuresUnion Structures

• Local UnionsAre organized at the level of a single

company, plant, or small geographic region.

• Shop StewardIs an elected position in a local union.Is a regular employee who functions as a

liaison between union members and supervisors.

• Local UnionsAre organized at the level of a single

company, plant, or small geographic region.

• Shop StewardIs an elected position in a local union.Is a regular employee who functions as a

liaison between union members and supervisors.


The Basic Structure of a Union


Trends in Union Membership


Trends in Union-Management RelationsTrends in Union-Management Relations• Gradual decline in unionization in the U.S.Gradual decline in unionization in the U.S.

Has been accompanied by significant trends Has been accompanied by significant trends in union-management relations.in union-management relations.

• In the automotive industry, unions remain In the automotive industry, unions remain strong and have large memberships.strong and have large memberships.Unions recognize their declining membership, Unions recognize their declining membership,

and now work with management, rather than and now work with management, rather than against it.against it.

• Gradual decline in unionization in the U.S.Gradual decline in unionization in the U.S.Has been accompanied by significant trends Has been accompanied by significant trends

in union-management relations.in union-management relations.

• In the automotive industry, unions remain In the automotive industry, unions remain strong and have large memberships.strong and have large memberships.Unions recognize their declining membership, Unions recognize their declining membership,

and now work with management, rather than and now work with management, rather than against it.against it.


Why Employees UnionizeWhy Employees Unionize

• Employees believe they will be better off Employees believe they will be better off as a result of joining a union.as a result of joining a union.

• Employees unionize when they are Employees unionize when they are dissatisfied their jobs and they believe that dissatisfied their jobs and they believe that the union can help make their jobs better.the union can help make their jobs better.

• Employees believe they will be better off Employees believe they will be better off as a result of joining a union.as a result of joining a union.

• Employees unionize when they are Employees unionize when they are dissatisfied their jobs and they believe that dissatisfied their jobs and they believe that the union can help make their jobs better.the union can help make their jobs better.


Steps Employees Use to Form a Union


What Is a Bargaining Unit?

What Is a Bargaining Unit?

• Bargaining UnitA defined group of employees who are

eligible for representation by the union.The union becomes the official bargaining

agent for the bargaining unit when it is certified by the NLRB.

• Bargaining UnitA defined group of employees who are

eligible for representation by the union.The union becomes the official bargaining

agent for the bargaining unit when it is certified by the NLRB.


The Collective Bargaining ProcessThe Collective Bargaining Process

• How should a union prepare for How should a union prepare for bargaining?bargaining? It should examine the financial health of the It should examine the financial health of the

employer.employer.

• Bargaining ItemsBargaining ItemsMandatory itemsMandatory items

Items that must be bargainedItems that must be bargained– Wages, working hours, and benefits Wages, working hours, and benefits

Permissive itemsPermissive items Items that may be included if both parties agree.Items that may be included if both parties agree.

• How should a union prepare for How should a union prepare for bargaining?bargaining? It should examine the financial health of the It should examine the financial health of the

employer.employer.

• Bargaining ItemsBargaining ItemsMandatory itemsMandatory items

Items that must be bargainedItems that must be bargained– Wages, working hours, and benefits Wages, working hours, and benefits

Permissive itemsPermissive items Items that may be included if both parties agree.Items that may be included if both parties agree.


Decertification of UnionsDecertification of Unions

• For decertification to occur, two conditions For decertification to occur, two conditions must be met:must be met:No labor contract can currently be in force No labor contract can currently be in force

(the previous agreement must have expired).(the previous agreement must have expired).The union must have served as the official The union must have served as the official

bargaining agent for the employees.bargaining agent for the employees.

• For decertification to occur, two conditions For decertification to occur, two conditions must be met:must be met:No labor contract can currently be in force No labor contract can currently be in force

(the previous agreement must have expired).(the previous agreement must have expired).The union must have served as the official The union must have served as the official

bargaining agent for the employees.bargaining agent for the employees.


The Bargaining Zone


When Negotiations BreakdownWhen Negotiations Breakdown

• StrikeStrikeOccurs when employees walk off their jobs Occurs when employees walk off their jobs

and refuse to work.and refuse to work.

• PicketingPicketingOccurs when union workers march at the Occurs when union workers march at the

entrance to the employer’s facility with signs entrance to the employer’s facility with signs explaining their reasons for striking.explaining their reasons for striking.

• BoycottBoycottOccurs when union members agree not to Occurs when union members agree not to

buy products of a targeted employer.buy products of a targeted employer.

• StrikeStrikeOccurs when employees walk off their jobs Occurs when employees walk off their jobs

and refuse to work.and refuse to work.

• PicketingPicketingOccurs when union workers march at the Occurs when union workers march at the

entrance to the employer’s facility with signs entrance to the employer’s facility with signs explaining their reasons for striking.explaining their reasons for striking.

• BoycottBoycottOccurs when union members agree not to Occurs when union members agree not to

buy products of a targeted employer.buy products of a targeted employer.


When Negotiations Breakdown (cont’d)When Negotiations Breakdown (cont’d)• SlowdownSlowdown

Occurs when workers perform their jobs at a Occurs when workers perform their jobs at a much slower pace than normal.much slower pace than normal.

• Wildcat StrikeWildcat Strike Is an unauthorized job action usually Is an unauthorized job action usually

undertaken in response to a perceived undertaken in response to a perceived injustice on the part of management.injustice on the part of management.

• Lockout Lockout Occurs when an employer denies employees Occurs when an employer denies employees

access to the workplace.access to the workplace.

• SlowdownSlowdownOccurs when workers perform their jobs at a Occurs when workers perform their jobs at a

much slower pace than normal.much slower pace than normal.

• Wildcat StrikeWildcat Strike Is an unauthorized job action usually Is an unauthorized job action usually

undertaken in response to a perceived undertaken in response to a perceived injustice on the part of management.injustice on the part of management.

• Lockout Lockout Occurs when an employer denies employees Occurs when an employer denies employees

access to the workplace.access to the workplace.


Resolving Labor DisputesResolving Labor Disputes

• ImpasseImpasseA situation in which one or both parties A situation in which one or both parties

believe that an agreement is not imminent.believe that an agreement is not imminent.

• Resolving an Impasse: MediationResolving an Impasse: MediationA neutral party (the mediator) listens to and A neutral party (the mediator) listens to and

reviews information presented by both sides.reviews information presented by both sides.The mediator makes recommendations and The mediator makes recommendations and

provides advice to both parties about what provides advice to both parties about what should be done.should be done.

• ImpasseImpasseA situation in which one or both parties A situation in which one or both parties

believe that an agreement is not imminent.believe that an agreement is not imminent.

• Resolving an Impasse: MediationResolving an Impasse: MediationA neutral party (the mediator) listens to and A neutral party (the mediator) listens to and

reviews information presented by both sides.reviews information presented by both sides.The mediator makes recommendations and The mediator makes recommendations and

provides advice to both parties about what provides advice to both parties about what should be done.should be done.


Resolving Labor Disputes (cont’d)Resolving Labor Disputes (cont’d)

• ArbitrationArbitrationBoth sides agree in advance that they will Both sides agree in advance that they will

accept the recommendations made by an accept the recommendations made by an independent third party.independent third party.

• Final-offer ArbitrationFinal-offer ArbitrationThe parties bargain until impasse and then The parties bargain until impasse and then

the two parties’ final offers are submitted to the two parties’ final offers are submitted to the arbitrator.the arbitrator.

• ArbitrationArbitrationBoth sides agree in advance that they will Both sides agree in advance that they will

accept the recommendations made by an accept the recommendations made by an independent third party.independent third party.

• Final-offer ArbitrationFinal-offer ArbitrationThe parties bargain until impasse and then The parties bargain until impasse and then

the two parties’ final offers are submitted to the two parties’ final offers are submitted to the arbitrator.the arbitrator.


Administering Labor AgreementsAdministering Labor Agreements

• Collective Bargaining ContractsCollective Bargaining ContractsDefine how the provisions of the labor Define how the provisions of the labor

agreement will be administered and enforced:agreement will be administered and enforced: SenioritySeniority Overtime allocationsOvertime allocations

• Collective Bargaining ContractsCollective Bargaining ContractsDefine how the provisions of the labor Define how the provisions of the labor

agreement will be administered and enforced:agreement will be administered and enforced: SenioritySeniority Overtime allocationsOvertime allocations


Prison labor

Prison labor

Contingent workers

Contingent workers

Living wage rates

Living wage rates

Impact of Technology

Impact of Technology

Labor Relations Issues

Labor Relations Issues


• Both unions and employers are becoming involved in the hiring of prisoners and paying them the minimum wage.

• Both unions and employers are becoming involved in the hiring of prisoners and paying them the minimum wage.


Unions and the Electronic AgeUnions and the Electronic Age

• Problems that the internet presents for labor unions:Computers and technology reduce the

number of employees required.Unions have no input when operations move

overseas for cheaper labor costs.

• Problems that the internet presents for labor unions:Computers and technology reduce the

number of employees required.Unions have no input when operations move

overseas for cheaper labor costs.


How Has Technology Been Positive for UnionsHow Has Technology Been Positive for Unions

• Unions can communicate Unions can communicate more easily with members.more easily with members.

• Prospective members are Prospective members are easily reached in spite of easily reached in spite of no-solicitation rules.no-solicitation rules.

• Unions can communicate Unions can communicate more easily with members.more easily with members.

• Prospective members are Prospective members are easily reached in spite of easily reached in spite of no-solicitation rules.no-solicitation rules.


Increased job

security

Increased job

security

Restriction of job

movement

Restriction of job

movement

No wage reductions

No wage reductions

Improved pensions

Improved pensions

Union Bargaining Goals

Union Bargaining Goals

Trends in Labor UnionsTrends in Labor Unions

Documents

PowerPoint Presentation Design by Charlie Cook The University of West Alabama Prepared by Joseph B. Mosca, Monmouth University and Marla M. Kameny, Baton