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ObjectivesTo provide an understanding about how collective bargaining impacts you, the economy, and our society as a whole.
To provide a basic understanding of the collective bargaining process
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National Labor Relations Act
NLRA enacted in 1935 – to protect employee labor rights– to encourage collective bargaining– to curtail certain private sector labor and management practices, which can harm the general welfare of workers, businesses and the U.S. economy.
Referred to as the Wagner Acthttp://www.nlrb.gov/national-‐labor-‐relations-‐act
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Labor Rights Gained under the NLRA
Right to organizeRight to bargain collectivelyRight to engage in strikes, picketing and other concerted activities
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Taft-‐Hartley Act
Enacted in 1947 to erode employee labor rightsGave employers the right to express their anti-‐union views to employees Made sit-‐down strikes illegalAllowed states to enact “right to work” laws
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Union Advantage
Access to Retirement and Medical Care Benefits, March 2014Source: Bureau of Labor StatisticsAccess to Retirement
Benefits (%)Access to Medical Care
Benefits (%)Union workers 94% 94%
Non-‐Union workers 64% 68%
Source: Bureau of Labor Statistics, “Employee Benefits in the United States-‐March 2014” July 25, 2014
Employee Share of Medical Plan Premiums, March 2014Source: Bureau of Labor Statistics
Single Coverage-‐Employee Share of
Premium
Family Coverage-‐Employee Share of
PremiumUnion workers 13% 19%
Non-‐Union workers 21% 34%Source: Bureau of Labor Statistics, “Employee Benefits in the United States-‐March 2014” July 25, 2014
More access to retirement and medical benefits
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What it Means to be UnionMost employees in the U.S. are unorganized and therefore “at will”Being Union gives us the right to negotiate a binding contract with our employer over wages, hours, and other employment conditions This is a right that most American workers have not taken advantage of
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Median earnings of full-‐time wage and salary workers by union affiliation in 2014Source: Bureau of Labor Statistics
Type of WorkerMedian Weekly Earnings Union
Advantage (Percent)
Union AdvantagePer Week
Union Advantage Per Year
Union Member
Non-‐Union
All Workers $970 $763 27% $207 $10,764Men $1,015 $840 21% $175 $9,100
Women $904 $687 32% $217 $11,284White $997 $784 27% $213 $11,076
African American $810 $611 33% $199 $10,348
Asian $979 $948 3% $31 $1,612
Hispanic or Latino $811 $573 42% $238 $12,376
Source: Bureau of Labor Statistics, “Median weekly earnings of full-‐time wage and salary workers by union affiliation and selected characteristics, 2013-‐2014 annual averages.”
Union AdvantageIn Wages
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The employer is required by law to provide the Union with requested relevant bargaining information.
The Union is entitled to receive sufficient information to allow it to negotiate intelligently over any item on the bargaining table.
The information requested is relevant if related to a mandatory bargaining subject.
ØInformation regarding represented employees (shifts, departments, addresses, seniority, etc.) is presumed relevant to bargaining.
Employer’s Duty to Supply Information
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Drafting ProposalsConcept-‐Based ProposalsExample: “There has been a problem with overtime rotation and equalization, particularly in the maintenance department.”– (This approach identifies a problem.)Example: “The union demands a fair and equitable overtime rotation and equalization procedure.”– (This approach focuses on the outcome.)
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Drafting ProposalsLanguage-‐Based ProposalsCurrent language is modified to attain a desired result.Current language is presented with proposed changes so both sides can see the bargaining proposal’s impact.
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Costing ProposalsWhat does it mean? – Estimating the monetary cost of a proposal– Why?
ØTo get the most VALUE for members (make sure we don’t leave money on the table!)
ØLong term financial health of employer is in the best interest of members (job security)
In summary: – Costing helps us evaluate our proposals and the value of what we are negotiating.
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“New Money” • DEFINITION= value of a proposal over the entire term of the proposed agreement. • Baseline = prior bargaining agreement.
Costing Proposals
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“New Money”Example #1
Yr 1 Yr 2 Yr 3 Total Over Term
Entry wage XXX
Wage increase-‐ this year
-‐ From entry wageXXX
New wage XXX
New money from wage increase (@2080 hrs)
New money from bonus/lump sum
Total new money
$15.00
$0.40 $0.40 $0.40
$1,000.00
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“New Money”Example #1
Yr 1 Yr 2 Yr 3 Total Over Term
Entry wage XXX
Wage increase-‐ this year
-‐ From entry wageXXX
New wage XXX
New money from wage increase (@2080 hrs)
New money from bonus/lump sum
Total new money
$15.00
$0.40 $0.40 $0.40
$1,000.00
$15.40
$832.00
$1,832.00
$15.40
$15.80
$1,664.00
$0
$1,664.00
$15.80
$16.20
$2,496.00
$0
$2,496.00
$4,992.00
$1,000.00
$5,992.00
Average hourly wage increase per year: $0.80Average wage increase per year: $1,664.00
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Timing – Two Scenarios
– Three-‐year agreement: $0.75 only in first year– Three-‐year agreement: $0.25 in each of three years
Which scenario would you rather have?What’s the “exit wage” at the end of the agreement?How much “new money” in each year?How much total “new money” over the term of the agreement?
Costing Proposals
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Worksheet: $0.75 Increase in First Year
Yr 1 Yr 2 Yr 3 Total
Wage increase- this year $0.75
0 this year, but maintain $0.75 from Yr 1
0 this year, but maintain $0.75 from Yr
1
xxxxxxxxxxxxxxxxxx
New money from wage increase (@2080 hrs)
$0.75 x 2080 = $1,560
Same = $1,560
Same = $1,560
$4,680 (value of $0.75 per hr for 3 yrs)
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$0.25 Increase in All Three Years
Yr 1 Yr 2 Yr 3 Total
Wage increase-this year- From entry wage
$0.25$0.25
($0.50 above entry wage)
$0.25($0.75 above entry wage)
xxxxxxxxxxxxxxxxxx
New money from wage increase (@2080 hrs)
$0.25 x 2080= $520
$0.50 x 2080 = $1,040
$0.75 x 2080 = $1,560 $3,120
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Subjects of Bargaining
1.Mandatory2.Permissive 3.Illegal
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Employer must bargain over these subjects.Each party has a right to insist on adoption of its proposal to the point of impasse.The parties are free to use economic pressure to support their demands once a true impasse in negotiations is reached.
Mandatory Subjects
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• Wages• Health insurance• Workloads• Smoking rules• Vending machine prices• Parking rules• New hours or shifts• Attendance rules• Drug/alcohol testing• Grievance procedures• Retirement benefits of
current employees
• Disciplinary procedures• Time off prior to holidays• Direct deposit• Physical examinations• Merit increases• Meal or coffee break
rules• Transfer of bargaining
unit work to non-‐bargaining unit employees
• Work schedules
Mandatory Subjects
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Decisions to close or eliminate departmentsGeneral business practices such as advertising and financingSelection of supervisors
Issues regarding retired employeesSubcontracting and relocation decisions accompanied by basic changes in the employer’s operation.Pre-‐employment testing procedures
Permissive Subjects
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Any subject that would cause either party or the parties to violate a law.
Illegal Subjects
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Signs of TroubleAttorneyOutrageous demands for concessionsNo movement on easy issuesScheduling problems
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ULP charges are a CRITICAL part of bargaining strategy to reach agreements. Why? An employer cannot declare impasse (and implement their final offer) or lockout employees if there are outstanding ULP charges.
Unfair Labor Practice
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What is Impasse? • Occurs when “no further movement is likely to occur” by either side
• Impasse is not reached while there are outstanding requests for information or if a party continues to make counter-‐proposals.
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Why is it important to avoid impasse? – Employer can’t impose last, best and final offer
– Employer can’t lockout employeesWhat can we do to help avoid impasse? – Unfair Labor Practices Charges
Employer unilateral changes Information requests – important tool for Union during bargaining – it makes a BIG difference!
Avoiding Impasse
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Reaching Tentative Agreement & Ratification
Finalize the Tentative Agreement– Proofread and finalize all TA’d articles– Notify members, local leadership, Regional Director, Federal Mediation and Conciliation Service (FMCS)
Remind employer of the union’s ratification processPrepare contract highlights with bargaining committee recommendation and deliver to members
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The Ratification Meeting – Set up with the Servicing Representative – Hold when and where most members can attend– Makes sure all members and heard and questions are answered The Ratification Vote – Accepted – Rejected– Tied
Rare, but it happens! When it does – recount
Reaching Tentative Agreement & Ratification
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More Questions?
ReadCollective Bargaining –
The Basicsor
See Your Local Union Representative!
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