Labor Relations and Labor Relations and Collective BargainingCollective Bargaining

Chapter 15 – Human Resource Management

First known union was formed in 1792 by a group of shoemakers in Philadelphia to discuss matters of common interest.

Knights of Labor, American labor union, originally established as a secret fraternal order(1869). It is notable in U.S. labor history as the first organization of workers to advocate the inclusion in one union of all workers in the country.

In 1859 William (a.k.a. Waterman) S. Body discovered gold near what is now called Bodie Bluff. A mill was established in 1861 and the town began to grow. It started with about 20 miners and grew to an estimated 10,000 people by 1880!

BODIE, CALIFORNIASTATE HISTORIC PARK

The Miner’s Union Local 61, Western Federation of Miners, was Organized December 22, 1877, and was one of the first organized unions in California.

BODIE, CALIFORNIASTATE HISTORIC PARK

Unions History:

The American Federation of Labor (AFL) was founded in 1886.

During WWII, unions grew. Rosie the Riveter, fictional, symbolic poster character during World War II (1939-1945), part of the United States government's publicity campaign to encourage women to join the work force.

The Norris-LaGuardia Act of 1932 Guaranteed to each employee the right to

bargain collectively “free from interference, restraint, or coercion.

Declared yellow dog contracts unenforceable. Limited the courts’ abilities to issue injunctions

(stop orders) for activities such as peaceful picketing and payment of strike benefits.

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Unions and the Law: Period of Strong Encouragement

National Labor Relations (or Wagner) Act of 1935 Banned certain unfair labor practices of

employers Provided for secret-ballot elections and

majority rule for determining whether a firm’s employees would unionize.

Created the National Labor Relations Board (NLRB) to enforce the act’s provisions.

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Unions and the Law: Period of Strong Encouragement (cont’d)

Declared yellow dog contracts unenforceable. A yellow-dog contract (a yellow-dog clause of a

contract, or an ironclad oath) is an agreement between an employer and an employee in which the employee agrees, as a condition of employment, not to be a member of a labor union.

Unions History:

In 1947 legislators in Washington enacted the Labor Management Relations Act (Also known as the Taft-Hartley Act.)

James Riddle Hoffa is noted from playing a huge role in improving U.S. Labor working conditions starting in the 1930’s. (More to follow)

The Committee for Industrial Organizations was organized in 1935. The Committee was fully independent of the industrial unions and changed it’s name to the Congress of Industrial Organizations or (CIO).

Unions History: Continued

Unions History: Continued In 1955 – the AFL and the CIO

merged, boasting 16 million members.

Well-Known Unions:

Union of Needletrades, Industrial, and Textile Employees (UNITE)

United Auto Workers (UAW) United Steel Workers (USW) International Longshoremen’s and

Warehousemen’s Union (ILWU) United Farm Workers (UFW) United Brotherhood of Carpenters Canadian Auto Workers (CAW)

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Union Definitions

Definitions:Labor Unions – Organizations of

employees formed to protect and advance their member’s interest.

Craft Unions – Unions made up of skilled artisans belonging to a single profession or practicing a single craft.

Industrial Unions – Unions representing skilled and unskilled employees from all phases of a particular industry

Right-to-work laws

12 Section 14(b) of the Taft-Hartley Act permits states to pass statutes or constitutional provisions banning the requirement of union membership as a condition of employment and to forbid the negotiation of compulsory union membership provisions.

Twenty-one “right to work states,” from Florida to Mississippi to Wyoming, ban all forms of union security.

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Union Security (cont’d)

Union Drive and Election

Step 1. Initial contact The union determines employees’ interest in

organizing, and sets up an organizing committee. Labor Relations Consultants Union Salting

Step 2. Obtaining authorization cards 30% of eligible employees in an appropriate

bargaining unit must sign cards authorizing the union to petition the NLRB for an election.

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The Union Drive and Election

Step 4. The campaign Both sides present their platforms.

Step 5. The election Held within 30 to 60 days after the NLRB issues its

Decision and Direction of Election. The election is by secret ballot; the NLRB provides

and counts the ballots. The union becomes the employees’ representative by

getting a majority of the votes cast in the election.

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The Union Drive and Election (cont’d)

Reason 1. Asleep at the switch

Reason 2. Appointing a committee

Reason 3. Concentrating on money and benefits

Reason 4. Industry blind spots

Reason 5. Delegating too much to divisions

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How to Lose an NLRB Election

Human resources professionals must be very careful to do the following during union activities at their companies:

Watch what you say. Angry feelings of the moment may get you in trouble.

Never threaten workers with what you will do or what will happen if a union comes in.

Don’t tell union sympathizers that they will suffer in any way for their support. Don’t terminate or discipline workers for engaging in union activities.

Don’t interrogate workers about union sympathizers or organizers.

Don’t ask workers to remove union screensavers or campaign buttons if you allow these things for other organizations.

Don’t treat pro-union or anti-union workers any differently.

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Union Avoidance: What Not to Do

Figure 15–4 Source: From the BLR Newsletter “Best Practices in HR.” Copyright © 2003, Business & Legal Reports, Inc. Reprinted with permission of the publisher, HRNext.com. Copyright HRNext.com, 2003.

Don’t transfer workers on the basis of union affiliation or sympathies.

Don’t ask workers how they or others intend to vote.

Don’t ask employees about union meetings or any matters related to unions. You can listen, but don’t ask for any details.

Don’t promise workers benefits, promotions, or anything else if they vote against the union.

Avoid becoming involved in the details of the union’s election or campaign, and don’t participate in any petition movement against the union.

Don’t give financial aid or any support to any unions.

Any one of these practices may result in a finding of “unfair labor practices,” which may in turn result in recognition of a union without an election, as well as fines for your company.

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Union Avoidance: What Not to Do (cont’d)

Figure 15–4 (cont’d)Source: From the BLR Newsletter “Best Practices in HR.” Copyright © 2003, Business & Legal Reports, Inc. Reprinted with permission of the publisher, HRNext.com. Copyright HRNext.com, 2003.

Nonemployees can be barred from soliciting employees during their work time.

Employees can be stopped from soliciting other employees if one or both employees are on paid-duty time and not on a break.

Employers can bar nonemployees from the building’s interiors and work areas as a right of private property owners.

On- or off-duty employees can be denied access to interior or exterior areas for reasons of production, safety, or discipline.

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Rules Regarding Literature and Solicitation

What Is collective bargaining? Both management and labor are required by law to

negotiate wage, hours, and terms and conditions of employment “in good faith.”

What Is good faith bargaining? Both parties communicate and negotiate. They match proposals with counterproposals in a

reasonable effort to arrive at an agreement. It does not mean that one party compels another to

agree to a proposal or make any specific concessions.

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The Collective Bargaining Process

Surface bargaining Inadequate concessions Inadequate proposals and demands Dilatory tactics Imposing conditions. Making unilateral changes in conditions. Bypassing the representative. Committing unfair labor practices during negotiations. Withholding information Ignoring bargaining items

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Violations of Good Faith Bargaining

The Collective-Bargaining Process

Table Talk

The Collective-Bargaining Process:

The four stages of collective bargaining:

1. Preparing to Meet

2. The actual negotiation

3. Reaching a tentative agreement

4. Ratifying the Proposed Contract.

Factors That Affect theCollective Bargaining Process

Union Union Rep.Rep.

MgmtMgmt.Rep..Rep.

BargaininBargaining Topicg Topic

State of State of EconomEconom

yy

Goals of Goals of Bargaining Bargaining

PartiesParties Precedents Precedents in in

BargainingBargaining

Labor Labor LawLaw

Public Public SentimenSentimen

tt

Issues Issues Being Being

DiscusseDiscussedd

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Voting and Ratifying a Contract

Compensation:Wage RatesCOLAs (Cost of Living Adjustments based on the US

Consumer Price Index)Profit SharingEmployee Benefits

“Signing a collective-bargaining agreement between union and management doesn’t mark the end of negotiations. Rather, it lays the groundwork for discussions to continue throughout the life of the contract.”

Chapter 11, page 336

Union EstablishmentsRatification: A vote to accept or reject the contract.

Closed Shop: Employees must join the union as a condition of being hired.

Union Shop: After probation, the employee must join the union.

Agency Shop: Union service fees must be paid by non-union employees who are benefiting from the union contracts.

Open Shop: Employees are not required to pay or join the union. They may join voluntarily.

Right-to-Work Laws: Gives employees a right to keep their jobs without joining the union.

Pattern Bargaining: Negotiations for wages and benefits will be adopted by all companies within an industry.

Two-tier Wage Plan: Protects employees with seniority from having new hires hired in at the same wage rate or scale as a senior employee.

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When Negotiations Break Down

Labor’s OptionsStrikes and Picket Lines (Non-Violent)Boycotts (Non-Violent)Financial and Political InfluencesPublicitySlowdowns

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When Negotiations Break Down Management’s Options

Strikebreakers- Non-union workers. Union members label them as “scabs.”

Lockouts – Physically locking employee union members out of the workplace.

Injunctions- Court orders Industry Pacts and Organizations

Grievance Resolution Process Grievance Resolution Process

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Employee-Management Relations

Strategies for Building Better Relations: Employee Input Stocks or shares of the company Management-Employee Teams Better pay and benefits Better working conditions

(Safety and Health conditions) Opportunities for Advancement Updated equipment The company needs to be informed of union activities and keep in touch with the demands of employees to better understand their needs.

Meeting and Reaching an Agreement:

Givebacks- Concessions made by union members to give back to the company in wages or benefits in order to enhance the companies competitive positions.

Permissive Subject: Topics you are free to discuss; not forbidden

Mandatory Subjects: Topics that must be covered during the talks.

Mediation: Bringing a third party in to study the situation and make recommendations. (These recommendations are not binding.)

Arbitration: Bringing in a third party to listen to both sides and render a decision. (This is binding.)

Websites to Viewhttp://boozers.fortunecity.com/brewerytap/586/hoffa.htmlhttp://www.hoffa.comhttp://www.who2.com/jimmyhoffa.htmlhttp://www.aflcio.org/home.htmhttp://www.aflcio.org/voiceatwork/stories.htmhttp://www.aflcio.org/safety/ergo_say.htmhttp://www.ufw.org

Recommended Movies:•Hoffa- Staring Danny DeVito,

and Jack Nicholson

•Norma Rae- Staring Sally Field