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Chapter 14
 

Chapter 14

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    Chapter 14 Chapter 14 Presentation Transcript

    • Fundamentals of Human Resource Management Ninth Edition DeCenzo and Robbins Chapter 14 Understanding Labor Relations and Collective BargainingFundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Introduction  A union is an organization of workers, acting collectively, seeking to promote and protect its mutual interests through collective bargaining.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Introduction Impact of unionization  Only about 13% of the private sector workforce is unionized.  Labor contracts typically stipulate:  wages  hours  terms and conditions of employment  limit management’s discretionFundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Introduction Union Membership by IndustryFundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Why Employees Join Unions  Higher wages and benefits: The strength of large numbers and negotiating skills of professional bargainers give unions an advantage over individuals.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Why Employees Join Unions  Greater job security: Collective bargaining contracts limit management’s ability to arbitrarily hire, promote, or fire.  Influence over work rules: Unions represent workers and define channels for complaints and concerns.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Why Employees Join Unions Compulsory membership  Union shops require that all employees hired into positions covered under the collective-bargaining agreement must join the union.  Agency shops require nonunion employees to pay an amount equal to union fees and dues.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Why Employees Join Unions Compulsory membership  Open shops allow union membership to be totally voluntary.  Maintenance of membership clauses require union members to remain for the duration of the contract.  Dues checkoff provisions require employers to withhold union dues from members’ paychecks.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Labor Legislation The Wagner Act  Also known as the National Labor Relations Act  “Bill of rights” for unions, guaranteeing right to organize and bargain collectively.  National Labor Relations Board (NLRB):  determines bargaining units  conducts elections  prevents or corrects unfair labor practicesFundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Labor Legislation The Wagner Act  Unfair labor practices include:  interfering with an employee’s right to bargain collectively  refusing to bargain collectively with employee representativesFundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Labor Legislation Taft-Hartley Act  Also known as the Labor-Management Relations Act  Specified unfair union labor practices.  coercion of employees to join the union  refusing to bargain collectively  engaging in illegal strikes and boycotts  obtaining compensation for services not performedFundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Labor Legislation Taft-Hartley Act  Prohibited closed shops, secondary boycotts, and gave the president power to issue a cooling-off period.  Created Federal Mediation and Conciliation Service (FMCS) to help labor and management settle disputes.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Labor Legislation The Railway Labor Act  Gave workers in the transportation industry the right to bargain collectively and allowed congressional and presidential intercession in the event of an impasse.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Unionizing Employees Union Organizing ProcessFundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Unionizing Employees  Thirty percent of employees must sign authorization cards indicating their interest in having an election.  A representation certification (RC), a secret-ballot election is held  If the union is accepted by a majority of eligible voting workers, the union becomes the workers’ legal representative.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Unionizing Employees  Once the National Labor Relations Board certifies a union, each worker must abide by the negotiated contract.  Most organizations’ managements will try to influence workers against voting for union representation.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Unionizing Employees  Representation Decertification (RD) elections can be held to vote unions out.  RMs are decertification elections initiated by management.  Most agreements bar the use of decertification elections during the term of a contract.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Collective Bargaining  The negotiation, administration, and interpretation of a written agreement between two parties, at least one of which represents a group that is acting collectively, that covers a specific period of time.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Collective Bargaining Objective and Scope of Collective Bargaining  Contracts must be acceptable to management, union representatives, and union membership.  Four issues appear in all labor contracts. (The first three are mandated by the Wagner Act)  wages  hours  terms and conditions of employment  grievance procedureFundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Collective Bargaining Collective Bargaining Participants  Management is represented by senior management for industrial relations, corporate executives, and company lawyers  In small companies, the president typically represents the company.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Collective Bargaining Collective Bargaining Participants  Union bargaining teams include an officer of the local union, local shop stewards, and representation from the international/national union.  Government watches to ensure rules are followed.  Financial institutions set limits on the cost of the contractFundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Collective Bargaining The Collective Bargaining Process  Preparing to negotiate  Fact-gathering: Includes internal information (e.g., employee performance records, overtime) and external (i.e., data on what similar organizations are doing and the economy).  Goal-setting: Management decides what it can expect from the negotiation.  Strategy development: This includes assessing the other side’s power and tactics.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Collective Bargaining  The Collective Bargaining ProcessFundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Collective Bargaining Negotiating at the bargaining table  Each side usually begins by publicly demanding more than they are willing to accept.  More realistic assessments and compromises take place behind closed doors.  After oral agreement, a written contract is submitted to the union for ratification.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Collective Bargaining  Contract administration refers to the implementation, interpretation, and monitoring of the negotiated contract between labor and management.  Information dissemination includes helping staff and workers understand the new contract provisions.  Implementing refers to making the changes to comply with contract terms.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Collective Bargaining Interpreting the contract and grievance resolution  Grievance procedures are specified in the contract and outline the steps for resolving complaints as quickly as possible by starting at the lowest level with the immediate supervisor.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Collective Bargaining Interpreting the contract and grievance resolution  Grievance (rights) arbitration is typically the final step in the grievance process  Disputes that cannot be resolved are resolved by an arbitrator, or third party, whose decision is final.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Collective Bargaining Sample Grievance ProcedureFundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Collective Bargaining Failure to Reach Agreement  Strikes versus lockouts  Economic strikes - labor and management cannot reach agreement before the current contract expires.  Wildcat strikes - unauthorized and illegal strikes that occur because of worker dissatisfaction during an existing contract.  Lockouts - when organizations deny unionized workers access to their jobs during an impasse.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Critical Issues for Unions Today Union membership: Where have the members gone?  Union membership in the U.S. reached a high of 36% in the early 1940s; there has been a steady decline since then.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Critical Issues for Unions Today Union membership: Where have the members gone?  Reasons for decline in membership include:  new concerns of a growing middle class  greater diversity of the workforce  growth of the service sector  diminished financial resources of unions  anti-union pressures resulting from increased competitiveness  layoffs of large numbers of union workers  hiring of replacement workers for strikersFundamentals of Human Resource Management 9e, DeCenzo and Robbin
    • Critical Issues for Unions Today Union membership: Where have the members gone?  Unions are changing some of their organizing tactics and may currently be gaining public support.  They also are placing more emphasis on the service sector.Fundamentals of Human Resource Management 9e, DeCenzo and Robbin