Chapter-15: Labor Relations & Collective Burgaining


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  • Unions have a role because some degree of conflict is inevitable between workers and management.Labor unions represent worker interests and the collective bargaining process provides a way to manage the conflict.In other words, through systems for hearing complaints and negotiating labor contracts, unions and managers resolve conflicts between employers and employees.
  • Labor relations strategy – For management, the decision involves whether the organization will work with unions or develop (or maintain) nonunion operations. For unions, the decision involves whether to fight changes in how unions relate to the organization or accept new kinds of labor-management relationships.Negotiating contracts – Contract negotiations in a union setting involve decisions about pay structure, job security, work rules, workplace safety, and many other issues. These decisions affect workers’ and the employers’ situation in terms of the contract.Administering contracts – These decisions involve day-to-day activities in which union members and the organization’s managers may have disagreements. A formal grievance procedure is typically used to resolve these issues.
  • The AFL-CIO is not a labor union but an association that seeks to advance the shared interests of its member unions at the national level, much as the Chamber of Commerce and the National Association of Manufacturers do for their member employers. 55 national and international unions are affiliated with the AFL-CIO. An important responsibility of the AFL-CIO is to represent labor’s interests in public policy issues such as labor law, economic policy, and occupational safety and health.
  • Chapter-15: Labor Relations & Collective Burgaining

    1. 1. WelcomeTo“Excellence Explorer”Presentation
    2. 2. Shahriar RazinGroup Coordinator of EEXXID- 115406
    3. 3. Chapter- 15Labor Relationsand CollectiveBargaining
    4. 4. Role of Unions In the U.S., most workers act as individuals to selectjobs that are acceptable to them and to negotiate pay,benefits, flexible hours, and other work conditions. At times, workers have believed their needs andinterests do not receive enough consideration frommanagement. One response by workers is to act collectively byforming and joining labor unions.
    5. 5. Unions and LaborRelations Unions – organizationsformed for the purposeof representing theirmembers’ interests indealing with employers. Labor relations – fieldthat emphasizes skillsmanagers and unionleaders can use tominimize costly forms ofconflict (such as strikes)and seek win-winsolutions todisagreements.
    6. 6. Labor relations involves three levelsof decisions:1. Labor relations strategy2. Negotiating contracts3. Administering contracts
    7. 7. National and InternationalUnionsAmerican Federation ofLabor (AFL)Craft UnionsAFL-CIOCongress of IndustrialOrganization (CIO)Industrial Unions
    8. 8. Sumona JahanID- 105454
    9. 9. Major Law 1926- Railway Labor Act 1935- National Labor Relations Act (Wagner Act) 1947- Labor Management Relations Act (Taft-Hartley Act) 1962- Executive Order 10988 1970- Postal Re-organization Act 1974- Health Care Amendments 1978- Civil Service-Reform Act
    10. 10. Jarin TasnimID- 115402
    11. 11. NLRB ProcessUnion form for reducing unfair labor practice.Exclusive bargaining representative or Duty of fairrepresentative.Organizing committee is formed among the workers early inthe process.Voluntary reorganization.Certification.Bargaining units.Community of interest.
    12. 12. The NLRB OrganizationProcessEmployee contactUnionUnion fieldrepresentative contactsemployeeAuthorization cardcampaign
    13. 13. Organizing effortfailsContinueauthorizationcampaignPetition for anelectionUnion recognizedprocessRecognized denied<30% <50% >50%ContinueauthorizationcampaignPetition for anelection
    14. 14. Petition for an electionNLRB determines bargaining unitCampaignNLRB holds electionUnion gets <50% Union gets>50%Organizing barredfor one yearUnion certifiedbargaining begins
    15. 15. Sonia AkterID- 105486
    16. 16.  The certification of a union as an exclusivebargaining representative simultaneously triggersthe employee’s right and the employers duty tobargain collectively over rates of pay, wages, hoursof employment, or other conditions ofemploymentWHAT UNIONS DO WHEN THEYARE FORMED:Collectivebargaining
    17. 17.  Pattern Bargaining:Historically pattern bargaininghas had the effect of taking such factors as wgesout of the competitive matrixfor employers in thesame industry. Multiemployer Bargaining: A higher level ofcentralization occurs when several employerscombine negotiateacommon agreement with aunion.Structure of bargaining
    18. 18.  What is the likelihood of reaching a settlement? Can awarkstoppage be avoided? Is intervention by third party mediator needed? If a work stoppage appears likely,how will it bemanaged?Contract Negotiations
    19. 19.  Distributive Bargaining: This is zero sumnegotiations, in which one party’s gain is otherparty’s loss. Integrative Bargaining: In this situations oneparty’s gain is need not translate another party’sloss. Integrative bargaining can result incollaborative problem solving in which bothparties come out ahead. Intraorganizational Bargaining: Intraorganizationalbargaining is the process of resolving differencesamong members of the same party.TYPES OF BARGAINING
    20. 20. Md. Ahasan HabibID- 105478
    21. 21. SCOPE OFBARGAININGThe scope of bargaining is defined as the range ofitems over which the practices negotiate.
    22. 22. Types of Bargaining ItemsMandatory ItemsPermissive ItemsIllegal ItemsCopyright © Houghton Mifflin Company. All rightsreserved.15–23
    23. 23. Bargaining Items withExamples
    24. 24. ECONOMIC ISSUEThe economic matters commonly discussed in negotiationsmay be divided two subgroups: WagesBenefits
    25. 25. NONECONOMICISSUEA number of issues may arise in thenoneconomic area, including Work rules Job security Quality of Wok Life Management Rights Union security
    26. 26. Management Rights ClauseManagement Rights which, reserves to management certaindecision-making process. For instance, these clauses may givemanagement alone the right to decide on the types ofproducts to produce or services to deliver, to superviseemployees, to control production processes.
    27. 27. Union security ClauseThese arrangements ensure thatnonunion members of bargainingunits will assume at least part ofthe cost of union representation.The union shop Agency shop
    28. 28. Fatema Tuj JohuraID- 115401
    29. 29. Labor Strike ActivityStrike means concerted action resulting in a cessation of work, arefusal to work or to continue to work by employees, or a slow-down or other concerted activity of employees that is designed toor does limit production or services, but does not include an act oromission required for the safety or health of employees, or arefusal to work.
    30. 30. Level of strike activityThousands of contract negotiations take place eachyear. Historically, most contract negotiations haveresulted in a settlement without strike. The estimate isthat strikes occurs less than 2 or 3 percent ofnegotiation. Strikes are more likely to occur in largerbargaining unit.
    31. 31. Major work stoppages in the UnitedStates (2006-2012)*PeriodNumber of workstoppages beginningperiodNumbers of workersinvolvedin(thousands)Number(thousands)Work time lose in(%)2012 19 148 1131 0.222011 19 113 1020 0.162010 11 45 302 0.202009 5 13 124 0.172008 15 72 1954 0.302007 21 189 1265 0.182006 20 70 2688 0.35
    32. 32. Types of strike and rights of strikersSection 7of the NLRA grants workers a legal right to strike,” toengage in other concerted activity for the purpose of collectivebargains or mutual aid or protection”. Three types discussedhere the-Economic strikeUnfair labor practice strikersWildcat strike
    33. 33. Types of strike and rights of strikersEconomic strike:An economic strike is an event in which all efforts at producing goods andservices through labor are temporarily shut down.Unfair labor practice strikers:Employees who strike to protest an unfair labor practice committed bytheir employer are called unfair labor practice strikers.Wildcat strike:When employees go on strike without unionauthorization, however, their action is called a wildcat strike.
    34. 34. Permanent replacements ofworkersSection 7of the NLRA grants workers a legal right to strike.The NLRA prohibits employers from firing employees who goon strike. However, an employer may hire replacementworkers if it desires to continue to operate during a strike.Furthermore, the employer has the right to make thesereplacements permanent at any time during the strike. Oncethe employer makes the replacements permanent,employees have no right to return to their jobs if they decideto end the strike.
    35. 35. Moniya AkterID- 115457
    36. 36. Preventing StrikeAlternative Dispute Resolution:1. Mediation: A neutral third party Having no binding authority2. Interest Arbitration: To make binding decision Rarely used in private sector Widely used in public sector
    37. 37. Interest Arbitration:1. Nonbinding: Sometimes called advisory arbitration or factfinding parties are not committed to accepting thearbitrator’s award2. Binding: Both parties are committed to accepting thearbitrator’s award
    38. 38. Binding Arbitration:1. Conventional Interest Arbitration: Free to impose whatever settlement he or shedeems reasonable Producing some unfortunate effect such as“chilling effect” and “narcotic effect”2. Final offer arbitration Forcing labor & management in negotiation No opportunity to Split the difference
    39. 39. Final Offer Arbitration1. By Issue: Popular in many state law One offer on each item2. By Package: Accepts the final position of one party or other Seldom used
    40. 40. National Emergency DisputeProcedures: Provided by the Taft-Hartley Act Prohibit the strike for Eighty daysFor examples: Coal mining, Atomic energy,Maritime, and Long shoring industries.
    41. 41. Md. Shahadot HossainID- 115411
    42. 42. Grievance procedure Administering contract:Though a contract is made only when the bothparties are agreed together, but there is alwaysroom for disagreement about how the agreementshould be interpreted and applied in specificcases. If an employee thinks that his or her rightsunder the contract have been violated, he may filea grievance. Actually grievance procedure is aprocess of resolving disagreements about contractadministration.
    43. 43. Steps in grievanceprocedure There are 5 steps in grievance procedure-Step 1 :* Notify to foreman.* After 2 working days it will be written on a form.Step 2 :* Written grievance shall be presented to theforeman or the general foreman and a copy sent tothe personal office.* Within 2 working days he will call a meeting.Step 3 :* The written grievance shall be presented to thedepartmental superintendent.* Hold a meeting within 5 working days.
    44. 44. Step 4 :* The union committee and an internationalrepresentative of the union shall meet with theManagement committee.Step 5 :* A representative of the UNION shall meetwithin 5 working days with a representative of thecompany for the purpose of selecting an arbitrator.* An arbitrator shall be selected within 5 workingdays.* The decision of the arbitrator shall be final andbinding on all parties.* Any necessary expense incident to thearbitration shall be paid jointly by the company andthe UNION.
    45. 45. Grievance arbitration Most grievances are settled through the earlysteps, but when no mutually acceptable resolutionis reached between the parties themselves, 96percent of contracts specify binding grievancearbitration as the final step. Nearly all contractslimit the arbitrator to interpreting the existingcontract. The arbitrator is not allowed to change oramend the contract in any way but merely toclarify and apply its provisions.
    46. 46. Md. RejaunnobiID- 115403
    47. 47. THE ROLE OF LABOR RELATION INHRM► Know about labor law and labor relation► Conversant with labor law► Experts are responsible for educating management and supervisors► Relationship between managers & workers► Ensure that wages are fairly administered & competitive with otheremployees► Voice mechanism
    48. 48. Thank youEveryoneforbeing patience.