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Copyright © 2005 Thomson Business & Professional Publishing.All rights reserved.
ROBERT L. MATHIS
JOHN H. JACKSON
PowerPoint Presentation by Charlie CookThe University of West Alabama
Union/ManagemenUnion/Management t RelationsRelations
Chapter 17Chapter 17
SECTION 5SECTION 5Employee Employee RelationsRelations
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17–2
Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives
• After you have read this chapter, you should be able to:
Describe what a union is and explain why employees join unions.
Identify several reasons for the decline in union membership.
Explain the acts that compose the National Labor Code.
Discuss the stages of the unionization process.
Describe the typical collective bargaining process.
Define grievance and explain why a grievance procedure is important for employers.
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17–3
Nature of UnionsNature of UnionsNature of UnionsNature of Unions
• UnionA formal association of workers that promotes the
interests of its members through collective action.
• Why Employees UnionizeThey are dissatisfied with how they are treated by
their employers.They believe that unions can improve their work
situations.
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17–4
Factors Leading to Employee UnionizationFactors Leading to Employee UnionizationFactors Leading to Employee UnionizationFactors Leading to Employee Unionization
Figure 17–1
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17–5
Typical Division of HR Responsibilities: Typical Division of HR Responsibilities: Labor RelationsLabor Relations
Typical Division of HR Responsibilities: Typical Division of HR Responsibilities: Labor RelationsLabor Relations
Figure 17–2
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17–6
Global Labor Union IssuesGlobal Labor Union IssuesGlobal Labor Union IssuesGlobal Labor Union Issues
• Union membership is falling in advanced countries.
• High unemployment is creating pressure for change.
• Child labor is an issue in some countries.• Co-determination
A practice whereby union or worker representatives are given positions on a company’s board of directors.
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17–7
Union Membership as a Percentage of the Workforce Union Membership as a Percentage of the Workforce for Selected Countriesfor Selected Countries
Union Membership as a Percentage of the Workforce Union Membership as a Percentage of the Workforce for Selected Countriesfor Selected Countries
Figure 17–3
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17–8
Unions in the U.S.Unions in the U.S.Unions in the U.S.Unions in the U.S.
• Union Movement Emphases:
Focused on “bread-and-butter” economic issues—wages, benefits, job security, and working conditions.
Organized by kind of job and employer.
Seek multi-year collective agreements on economic issues as “contracts.”
Maintain competitive relations with management.
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17–9
Union StructureUnion StructureUnion StructureUnion Structure
• Craft UnionA union whose members do one type of work, often
using specialized skills and training.
• Industrial UnionA union that includes many persons working in the
same industry or company regardless of jobs held.
• FederationA group of autonomous national and international
unions.
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17–10
Union Structure (cont’d)Union Structure (cont’d)Union Structure (cont’d)Union Structure (cont’d)
• Local UnionA union centered around either a particular employer
or a particular geographic location.
• Business AgentA full-time union official who operates the union office
and assists union members.
• Union StewartAn employee elected to serve as the first-line
representative of unionized employees.
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17–11
Union Membership as a Percentage of the U.S. WorkforceUnion Membership as a Percentage of the U.S. WorkforceUnion Membership as a Percentage of the U.S. WorkforceUnion Membership as a Percentage of the U.S. Workforce
Figure 17–4Source: U.S. Department of Labor, Bureau of Labor Statistics. 2004.
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17–12
Union Membership by IndustryUnion Membership by IndustryUnion Membership by IndustryUnion Membership by Industry
Figure 17–5Source: U.S. Department of Labor, Bureau of Labor Statistics. 2004.
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17–13
Reasons for Union Decline in the U.S.Reasons for Union Decline in the U.S.Reasons for Union Decline in the U.S.Reasons for Union Decline in the U.S.
Industrial ChangesIndustrial Changes Industrial ChangesIndustrial Changes
Geographic ChangesGeographic ChangesGeographic ChangesGeographic Changes Workforce ChangesWorkforce ChangesWorkforce ChangesWorkforce Changes
Declining Declining Union Union
MembershipMembership
Declining Declining Union Union
MembershipMembership
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17–14
Union Targets for Membership GrowthUnion Targets for Membership GrowthUnion Targets for Membership GrowthUnion Targets for Membership Growth
ProfessionalProfessionalWorkersWorkers
ProfessionalProfessionalWorkersWorkers
Contingent andContingent andPart-Time WorkersPart-Time Workers
Contingent andContingent andPart-Time WorkersPart-Time Workers
Low-SkillLow-SkillWorkersWorkers
Low-SkillLow-SkillWorkersWorkers
Union Union OrganizingOrganizing
Union Union OrganizingOrganizing
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17–15
The History of American UnionsThe History of American UnionsThe History of American UnionsThe History of American Unions
• 1794 Shoemakers’ strike• 1806 Shoemakers’ strike (“criminal conspiracy”)• 1886 American Federation of Labor (AFL)• 1938 Congress of Industrial Organizations CIO
• 1926 Railway Labor Act
• 1935 National Labor Relations Act (Wagner Act)• 1932 Norris-LaGuardia Act• 1947 Taft-Hartley Act• 1957 AFL-CIO merger
• 1959 Landrum-Griffin Act
• 1978 Civil Service Reform Act
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17–16
National Labor CodeNational Labor CodeNational Labor CodeNational Labor Code
Figure 17–6
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17–17
Right-to-Work StatesRight-to-Work StatesRight-to-Work StatesRight-to-Work States
Figure 17–7
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17–18
Typical Unionization ProcessTypical Unionization ProcessTypical Unionization ProcessTypical Unionization Process
Figure 17–8
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17–19
Legal Do’s and Don’ts for Managers During the UnionizationLegal Do’s and Don’ts for Managers During the UnionizationLegal Do’s and Don’ts for Managers During the UnionizationLegal Do’s and Don’ts for Managers During the Unionization
Figure 17–9
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17–20
Unfair Labor Practices: EmployerUnfair Labor Practices: EmployerUnfair Labor Practices: EmployerUnfair Labor Practices: Employer
• Interfering with the organizing and collective bargaining rights of employees.
• Dominating or interfering with any labor organization.
• Encouraging or discouraging membership in a particular union.
• Discharging persons for organizing activities or union membership.
• Refusing to bargain collectively.
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17–21
Labor Relations: Key TermsLabor Relations: Key TermsLabor Relations: Key TermsLabor Relations: Key Terms
• Right-to-Work Laws State laws that prohibit contracts requiring employees to join unions as
a condition of obtaining or continuing employment.
• Closed Shop (outlawed) A firm that requires individuals to join a union before they can be hired.
• Union Shop A clause in a collective bargaining agreement that requires new
employees to join the union, usually 30 to 60 days after being hired, or be fired.
• Agency Shop Requires employees who do not join the union to pay fees for the
union’s representation services.
• Maintenance-of-membership Requiring workers to remain members of the union for the period of the
labor contract.
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17–22
Unionization: Key TermsUnionization: Key TermsUnionization: Key TermsUnionization: Key Terms
• Salting The practice in which unions hire and pay people to apply for jobs at
certain companies.
• Union Authorization Card A card signed by an employee to designate a union as his or her
collective bargaining agent.
• Bargaining Unit Employees eligible to select a single union to represent and bargain
collectively for them.
• Certification The NLRB’s grant of the union’s legal status as the employees’
representative.
• Decertification The process whereby a union is removed as the representative of a
group of employees.
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17–23
Bargaining UnitsBargaining UnitsBargaining UnitsBargaining Units
• “Community of Interest”Wages, hours, and working conditions
Traditional industry groupings for bargaining purposes
Physical location and amount of interaction and working relationships among employee groups
Supervision by similar levels of management
• Supervisors and Bargaining UnitsSupervisors are excluded from bargaining units.
Defined as any individual with the authority to hire, transfer, discharge, discipline, and who uses independent judgment with employees.
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17–24
Collective Bargaining IssuesCollective Bargaining IssuesCollective Bargaining IssuesCollective Bargaining Issues
• Collective Bargaining The process whereby representatives of management and
workers negotiate a labor agreement covering wages, hours, and other terms and conditions of employment.
• Management Rights Those rights reserved to the employer to manage, direct, and
control the workplace.
• Union Security Provisions Contract provisions that aid the union in obtaining and retaining
members.
• Dues Checkoff Provision A contract provision for the automatic deduction of union dues
from the paychecks of union members.
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17–25
Continuum of Collective Bargaining RelationsContinuum of Collective Bargaining RelationsContinuum of Collective Bargaining RelationsContinuum of Collective Bargaining Relations
Figure 17–10
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17–26
Mandatory Bargaining IssuesMandatory Bargaining IssuesMandatory Bargaining IssuesMandatory Bargaining Issues
• Issues identified specifically by labor laws or court decisions as subject to bargaining.
• Discharge of employees
• Grievances
• Work schedules
• Union security and dues checkoff
• Retirement and pension coverage
• Vacations
• Christmas bonuses
• Rest- and lunch-break rules
• Safety Rules
• Profit-sharing plans
• Required physical exam
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17–27
Classification of Bargaining IssuesClassification of Bargaining IssuesClassification of Bargaining IssuesClassification of Bargaining Issues
• Permissive IssuesCollective bargaining issues that are not mandatory
but relate to certain jobs. Benefits for retired employees
Product prices (e.g., employee discounts) for employees
Performance bonds
• Illegal IssuesCollective bargaining issues that would require either
party to take an illegal action (e.g., discriminate in hiring).
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17–28
The Bargaining ProcessThe Bargaining ProcessThe Bargaining ProcessThe Bargaining Process
Preparation and Initial Preparation and Initial DemandsDemands
Preparation and Initial Preparation and Initial DemandsDemands
Continuing Continuing Negotiations Negotiations in Good Faithin Good Faith
Continuing Continuing Negotiations Negotiations in Good Faithin Good Faith
Settlement and Settlement and Contract AgreementContract Agreement
RatificationRatification
Settlement and Settlement and Contract AgreementContract Agreement
RatificationRatification
Strikes and Strikes and LockoutsLockouts
Strikes and Strikes and LockoutsLockouts
Bargaining Bargaining ImpasseImpasse
ConciliationConciliationMediationMediationArbitrationArbitration
Bargaining Bargaining ImpasseImpasse
ConciliationConciliationMediationMediationArbitrationArbitration
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17–29
Bargaining ImpasseBargaining ImpasseBargaining ImpasseBargaining Impasse
• ConciliationA process by which a third party attempts to keep
union and management negotiators talking so that they can reach a voluntary settlement.
• MediationA process by which a third party helps the negotiators
reach a settlement.
• ArbitrationA process that uses a neutral third party to make a
decision.
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17–30
Typical Items in a Labor AgreementTypical Items in a Labor AgreementTypical Items in a Labor AgreementTypical Items in a Labor Agreement
Figure 17–11
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17–31
Strikes and LockoutsStrikes and Lockouts
• StrikeA work stoppage in which union members refuse to
work in order to put pressure on an employer.
• LockoutShutdown of company operations undertaken by
management to prevent union members from working.
• Striker Replacements
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17–32
Types of StrikesTypes of StrikesTypes of StrikesTypes of Strikes
• Economic Strikes Strikes over economic issues (e.g., wages)
• Unfair labor practice strikes Strikes over illegal employer actions (e.g., refusal to bargain)
• Wildcat strikes Strikes not approved by the union
• Jurisdictional strikes Strikes in dispute over the ownership of work
• Sympathy strikes Expressions of support for other unions
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17–33
Union-Management Cooperation IssuesUnion-Management Cooperation IssuesUnion-Management Cooperation IssuesUnion-Management Cooperation Issues
Employee OwnershipEmployee Ownership(ESOPs)(ESOPs)
Employee OwnershipEmployee Ownership(ESOPs)(ESOPs)
Cooperation andCooperation andJoint EffortsJoint Efforts
Cooperation andCooperation andJoint EffortsJoint Efforts
Employee Employee Involvement (Teams)Involvement (Teams)
Employee Employee Involvement (Teams)Involvement (Teams)
Union-Union-Management Management CooperationCooperation
Union-Union-Management Management CooperationCooperation
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17–34
Grievance ManagementGrievance ManagementGrievance ManagementGrievance Management
• Complaint Indication of employee dissatisfaction
• GrievanceA complaint formally stated in writing
• Grievance ProceduresFormal channels used to resolve grievances.Union representation (Weingarten) rights
• Grievance ArbitrationMeans by which a third party settles disputes arising
from different interpretations of a labor contract.
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17–35
Typical Division of HR Responsibilities:Typical Division of HR Responsibilities:Grievance ManagementGrievance Management
Typical Division of HR Responsibilities:Typical Division of HR Responsibilities:Grievance ManagementGrievance Management
Figure 17–12
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17–36
Steps in a Typical Grievance ProcedureSteps in a Typical Grievance ProcedureSteps in a Typical Grievance ProcedureSteps in a Typical Grievance Procedure
Figure 17–13