Copyright Atomic Dog Publishing, 2004 Chapter 12 Understanding Unions and Their Impact on HRM.

Copyright Atomic Dog Publishing, 2004

Chapter 12Understanding Unions and Their Impact on HRM


Outline

• 12-1 Gaining Competitive Advantage

• 12-2 HRM Issues and Practices

• 12-3 The Manager’s Guide


12-1 Gaining Competitive Advantage

• Unions Labor organizations “of any kind…in which employees

participate and which exist for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work”

• Containing HR Costs Employers can contain HR-related costs by maintaining a

union-free environment Costs of operating a unionized environment are considerably

higher- Due to higher salaries and more generous benefit plans


Gaining Competitive Advantage

• Enhancing productivity Unionized firms are often more productive than similar

nonunion companies When relations are positive between management and the

union, unionization is associated with higher firm productivity When relations are negative, unionization is associated with

lower firm productivity

• Unionized firms are typically not as profitable as similar nonunion companies Increases in productivity rarely offset the increased HR-

related costs


12-2 HRM Issues and Practices

• Local unions

• National unions

• AFL-CIO

• Membership patterns

• Decline in union membership


Local Unions

• Where workers and their representatives interact most frequently and, consequently, it is the focus of everyday union-management relations

• Members must pay dues to the local for the representation it provides

• Local unions play two roles: Identify and negotiate plant (local) issues in national

collective bargaining agreements Administer collective bargaining agreements or contracts


National Unions

• Represent workers throughout the country in a particular craft or in a specific industry

• Negotiate major labor contracts with large employers

• Organize new local unions among unrepresented workers

• Charter local unions


AFL-CIO

• American Federation of Labor and Congress of Industrial Organizations

• Promotes cooperation among national unions in order to pursue organized labor’s common objectives

• Represents organized labor in political forums Provides lobbyists for legislative bodies Supports pro-union candidates for elected public office


Union Membership Patterns

• Bureau of Labor Statistics reports that: 31.4% of employed wage and salary workers were

represented by unions in 1960 This number dropped to 14% in 1999

• Unions continue to represent a large number of workers in the following industries: Government Manufacturing Transportation/public utilities


Decline in Union Membership

• Shift in employment away from manufacturing, a traditional union stronghold, to service occupations, a sector where unions have had little appeal

• Employers generally oppose unions and have always taken an aggressive stance against them

• Employers find permanent replacements for striking employees


Labor Laws

• The Railway Labor Act

• The Norris-LaGuardia Act

• The National Labor Relations Act (Wagner Act)

• Labor-Management Relations Act (Taft-Hartley Act)

• Labor-Management Reporting and Disclosure Act (Landrum-Griffin Act)


The Railway Labor Act

• Passed in 1926

• Provided a federal guarantee of railroad employees’ rights to choose a bargaining agent

• Compelled the railroads to bargain with the employees’ representative

• Established federal machinery to resolve labor disputes


The Norris-LaGuardia Act

• Passed in 1932

• Limiting judges’ powers to issue injunctions that restrained worker job actions

• Declared yellow-dog contracts unlawful Workers’ promise that they would not organize, support, or

join a union if the company hired them


The National Labor Relations Act (Wagner Act)

• Passed in 1935

• Gave workers in most industries the right to form unions and bargain collectively without being subject to coercion by their employers

• Established the certification election process Determined whether a majority of workers in a company

wanted union representation

• Created the National Labor Relations Board (NLRB) Supervised certification elections and enforced the law


Labor-Management Relations Act (Taft-Hartley Act)

• Passed in 1947

• Amended the National Labor Relations Act

• Tried to restore balance of power between employers and unions

• Established a decertification process

• Gave the U.S. president the right to intervene in national emergency strikes

• Allowed states to pass legislation outlawing “closed shops” Companies that require union membership as a condition of

employment


Labor-Management Reporting and Disclosure Act (Landrum-Griffin Act)

• Passed in 1959

• Passed after a series of publicized hearings dealing with corruption in organized labor

• Regulated the internal affairs of unions

• Required unions to submit reports of all financial expenditures to discourage officers from using union funds for personal matters


Why Do Workers Join Unions?

• Two important reasons: Job dissatisfaction Union instrumentality

• Major benefits accrued by joining a union: Higher salaries Better benefits Ability to speak one’s mind without fear of reprisal Better job security Protection against unfair treatment Gaining a sense of identity/unity


How Do Workers Become Unionized?

• Petition phase

• Election phase

• Certification phase


Petition Phase

• Workers express initial interest in union representation by signing authorization cards

• At least 30% of eligible workers must sign authorization cards for there to be a sufficient “showing of interest” to trigger NLRB involvement

• Petition phase culminates when the union asks the employer for recognition as the bargaining representative of the workers


Election Phase

• Step 1: The NLRB conducts representation hearings to determine the appropriate bargaining unit Consists of those jobs or positions in which two or more

employees share common employment interests and working conditions

• Step 2: Campaigning by both the union and the employer

• Step 3: Election Typically held on-site at the company


Certification Phase

• NLRB certifies the results

• A simple majority by either party is required to win the election Assuming no misconduct

• The employer or the union may file objections to the election within 5 days Objections may be related to conduct by either party that

affects the outcome of the elections


Negotiating a Collective Bargaining Agreement

• Preparing for collective bargaining

• Establishing a bargaining agenda

• Choosing a bargaining strategy

• Engaging in good faith bargaining


Categories of Bargaining Items

• Illegal bargaining items Matters about which bargaining is not permitted by law

• Mandatory bargaining items Issues that must be negotiated if either party brings these

matters to the table

• Voluntary or permissive bargaining items Become part of the negotiations only if both parties agree to

discuss them


Good Faith Bargaining

• Obliges both parties “to meet at reasonable times and confer in good faith with respect to wages, hours, and other terms and conditions of employment”


Grievance System

• Grievance system Provide due process for claims of contract violations

• Grievance Can be filed by either employees or employers An allegation that contract rights have been violated


Role of Grievance System

• Provide a forum in which disagreements concerning violations of contract rights can be adjudicated

• Influence the way workers view organized labor


How Grievance Systems Operate

• Step 1: Informal stage An attempt to resolve the matter before it is written up and

becomes an official grievance

• Step 2: Written grievance

• Step 3: Higher level bilateral discussion

• Step 4: Arbitration Calls for a neutral third party to settle matters that cannot be

resolved by bilateral discussions between union and management representatives


12-3 The Manager’s Guide

• Line managers in a union setting

• Line managers in a nonunion setting

• HRM department in a union setting

• HRM department in a nonunion setting


Line Managers in a Union Setting

• Must adhere to the provisions of the collective bargaining agreements

• Must understand agreement provisions and how the grievance systems work

• Must try to resolve conflicts before they turn into costly grievances


Line Managers in a Nonunion Setting

• Must fairly allocate rewards and punishment

• Must cultivate a climate that stresses open communication

• These practices can help a firm avoid unionization, they also improve morale and productivity and thus enhance competitive advantage


HRM Department in a Union Setting

• Negotiate and consult with union officials about matters such as: The assignment of workers to jobs A range of compensation issues The administration of the collective bargaining agreement

• Comply with the labor contract


HRM Department in a Nonunion Setting

• Help devise strategies to prevent unionization

• Provide workers with a greater voice in determining work conditions

• Allow employees to assist in installing their own formal grievance systems

• Utilize labor relations consultants

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Copyright Atomic Dog Publishing, 2004 Chapter 12 Understanding Unions and Their Impact on HRM.

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