Chapter 7Bargaining© 2021 McGraw-Hill. All rights reserved.

Chapter 7
Bargaining
© 2021 McGraw-Hill. All rights reserved. Authorized only for
instructor use in the classroom.
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Because learning changes everything.®
1
Learning Objectives
Sketch the steps of the bargaining time line.
Define the different types of bargaining structures.
Discuss the determinants and importance of bargaining power.
Explain the legal parameters of the United States bargaining
process.
Outline the four sub processes of bargaining, their purposes,
and their tactics.
Understand the pressures for changing from traditional to
integrative bargaining, and why this is difficult.
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Introduction 1
United States union contracts usually include the following
subjects:
Compensation.
Personnel policies and procedures.
Employee rights and responsibilities.
Employer rights and responsibilities.
Union rights and responsibilities.
Dispute resolution and ongoing decision making.
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Introduction 2
But how are all of these issues negotiated?
Lots of variation: goals, tactics, stress, emotions, etcetera.
But commonalities, too.
Prepare-explore-agree-implement.
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The Bargaining Time Line
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Preparing to Bargain 1
Bargaining preparation can be time-consuming and extensive
Each side needs to collect enough information to determine five
essential things
Interests.
Options for achieving interests.
External benchmarks of fairness.
The other side’s interests.
Best alternative to a negotiated agreement (B A T N A).
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Preparing to Bargain 2
From these, can determine targets, priorities, and strategies.
And then you are ready to schedule negotiating sessions with
the other side.
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Bargaining Structure 1
The organizational structure for the collective bargaining
process.
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Bargaining Structure 2
When determining the desired bargaining structure, labor and
management negotiators face a trade-off between power and
responsiveness
Decentralized bargaining can be more responsive to local needs.
Issues are more homogeneous and the negotiators are close to
their constituents.
But can labor’s bargaining power can be lower because the
strike threat is weaker.
Centralized bargaining can increase labor’s bargaining power.
But the number of issues increase and it’s harder to find
solutions to idiosyncratic local issues.
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Bargaining Power and the Bargaining Environment 1
Negotiators are situated in a complex environment that provides
opportunities and constraints
What happens at the bargaining table reflects differences in
bargaining power between labor and management.
“the ability to secure another’s agreement on one’s own terms”.
Strikes are the most important way for unions to impose
disagreement costs on employers.
Need to understand the bargaining environment to assess
relative bargaining power.
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Examples from the Grocery Industry.
Table divided into two columns shows the examples of the
dimensions from the grocery industry. Column 1 lists three
dimensions and column 2 lists their corresponding examples.
DimensionExamples1. LegalGrocery stores can legally hire
replacement workers during strikes.
Grocery store wages are anchored by the level of the minimum
wage.
Unions cannot block the introduction of new technologies like
scanners.2. EconomicGrocery store employees can be easily

replaced in a loose labor market (high unemployment), and it
may be difficult for workers to find work elsewhere.
Increased grocery store competition with restaurants and
discount retailers reduces the grocery industry’s ability to pass
costs to consumers, and gives customers alternatives during a
strike.
Technological change reduces demand for skilled meat cutters
and makes it easier for grocery stores to find replacement
workers.3. SociopoliticalUnions can lobby against zoning
permits for discount retailers that bring increased product
market competition.
The community might support a strike if it sympathizes with the
plight of part-time grocery workers.
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Examples from the Public School Teachers.
Table divided into two columns shows the examples of the
dimensions from the public sector. Column 1 lists three
different dimensions and column 2 lists their corresponding
examples. DimensionExamples1. LegalDepending on state law,
the school district might not have a legal obligation to
collectively bargain, and teachers might not have the right to
strike.
Some key working and operational conditions might be set by
state law, such as tenure protections, the number of
instructional days per year, and student testing requirements.2.

EconomicState-mandated teacher certification might shelter
teachers from labor market competition while also making it
harder for teachers to leave their state to find teaching jobs.
Traditional school districts might face competition from private
schools, online schools, and charter schools (note: this is also a
sociopolitical issue because lawmakers determine the types of
alternative schools to approve and fund).3. SociopoliticalUnions
can work with parents and other community members to lobby
for increased taxpayer funding.
Taxpayers may revolt if taxes are too high.
Teachers unions are under attack from conservative groups for
protecting poor teachers and opposing pay-for-performance.
School board members are elected.
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At the Bargaining Table 1
Once at the bargaining table, negotiators need to use their
communication, relationship-building, and problem-solving
skills to reach an agreement that both sides find acceptable
Most labor negotiations involve the renegotiation of an expiring
contract, and this contract anchors the negotiatio ns.
Labor negotiations as theater (front stage, backstage)
The dramatic structure of labor negotiations makes negotiations
more complex than they appear.
Experienced lead negotiators often meet with each other in
private with no other bargaining team members present, to
explore wide-ranging options.

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This dramatic structure applies equally well to the grievance
procedure.
Negotiating tools
Contract costing: Used to evaluate proposals by estimating their
monetary costs.
Requires making projections of complex issues.
Bargaining book .
Each side uses three-ring binders to create a complete record of
the negotiation and the minutes of each bargaining session.
Outside third-party assistance (mediators).
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Bargaining in good faith
N L R A requires negotiators to bargain “in good faith”.

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Examples of bad faith bargaining:
Unilateral change: Occurs when an employer changes wages,
benefits or other terms of employment without first bargaining
to an impasse with the union.
Direct dealing: Occurs when an employer illegally tries to
circumvent and undermine a union by directly interacting with
the employees with respect to bargaining issues.
Refusing to provide information in certain situations.
Surface bargaining: Occurs when an employer or a union goes
through the motions of bargaining but does not sincerely try to
reach an agreement.
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Bargaining items are classified into three categories:
Mandatory bargaining items: whatever is required to negotiate
as specified by the relevant law.
N L R A: wages, hours, and terms and conditions of
employment.
Permissive bargaining items: Everything that is not mandatory

or illegal.
Bargaining is not required over these issues.
Not protected if you strike over these issues.
Illegal bargaining items: Those that would violate the law, such
as payment of wages below the legal minimum.
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Examples of Bargaining Items
Mandatory
Wage reductions or increases
Bonus plans
Health insurance payments
Work schedules and vacations
Seniority provisions
Just cause discipline provisions
Grievance arbitration
Food prices in the company cafeteria
Lie detector and drug tests
Cell phone usage policy
Subcontracting
Effects of plant closings
Permissive
Union representation on the board of directors
Drug and alcohol screening for applicants
Benefits for retirees
Interest arbitration
Bargaining unit expansion
Contract ratification procedures
Plant closings

Employee parking policy
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Bargaining Subprocesses and Strategies 1
Collective bargaining is complicated because:
Employment relationship conflict is mixed motive: A mixture of
conflicts of interests and shared opportunities for mutual gain.
So need distributive and integrative (win-win) bargaining.
The employer-employee union relationship is a long-term,
ongoing affair.
So attitudinal structuring is significant.
Both employers and unions have constituencies with diverse
interests.
So intraorganizational bargaining is present.
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Four Subprocesses of Labor Negotiations
Table divided into three columns summarizes four subprocesses
of labor negotiation. The column headers marked from left to
right are: subprocesses; focus; and where the subprocess
occurs.SubprocessFocusWhere the Subprocess
OccursDistributive Bargaining

(“claiming value”) Resolving Conflicts of Interest; Often
AdversarialAt the Bargaining Table Between Labor and
Management NegotiatorsIntegrative Bargaining
(“creating value”)Solving Joint Problems (That Do Not Involve
Conflicts of Interest) by Creating
Solution
s for Mutual Gains; Often CollaborativeAt the Bargaining Table
and in Brainstorming Sessions Between Labor and Management
Negotiators and their CommitteesAttitudinal Structuring
(“relationship building”)Managing Attitudes and the Overall
Labor-Management Relationship; Often Trust-BuildingAt the
Bargaining Table Between Labor and Management Negotiators,
But Spilling Over to OthersIntraorganizational Bargaining
(“internal negotiations”) Achieving Consensus Within Each
Group; Often ComplexAway from the Bargaining Table within
Each Organization
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Distributive bargaining
Negotiation used to resolve conflicts of interests.
Also referred to as zero-sum bargaining.
The classic vision of collective bargaining.
Union and management negotiators demanding more.
Important to be realistic when assessing your B A T N A.
Maybe a better term is “most likely alternative to a negotiated
agreement” (M L A T N A) to prevent the parties from being
anchored by unachievable alternatives.
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Distributive Bargaining and the Settlement Range

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Integrative bargaining
Seeks to unify the common interests of the parties to a
negotiation.
Joint problem solving that relies heavily on trust and full
communication.
Also referred to as:
Win-win bargaining.
Mutual gains bargaining.
Interest-based bargaining.

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Distributive and Integrative Bargaining
Table divided into three columns compares distributive and
integrative bargaining based on 14 key dimensions. Column 1
notes features of distributive bargaining. Column 2 notes the
list of key dimensions. Column 3 notes features of integrative
bargaining.Distributive BargainingIntegrative
BargainingConflict of InterestConflictCommon
InterestDistributing a Fixed PieImageryIntegrating Interests to
Increase the Size of the PiePositionsFocusInterestsOf Minor
Importance, HinderedTrustCritical, FacilitatedTightly
ControlledInformation Free FlowingLead Negotiator
OnlyParticipationAll Members of Negotiating
TeamsManipulating Perceptions of Positions, Increasing Costs
of DelayTacticsBrainstorming, Using Objective CriteriaWinning
Gains For Your Side Through Bargaining
PowerBenefitsCreating Joint Gain and Stronger
RelationshipsToo Aggressive? Harmful to the Relationship?
How to Innovate?RisksSelling Out? Giving up Too

Much?StressDifficulties for NegotiatorsGiving up Control,
Selling Results to Constituents, Time ConsumingHow to
Prevent Adversarial Tactics from Damaging the
Relationship?Question MarksHow to Distribute the Increased
Gains?Positional Bargaining In SumJoint Problem Solving
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The Integrative Bargaining Steps
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Attitudinal structuring: activities that occur during negotiations
also shape the participants’ attitudes toward each other
Intentionally or otherwise.
Table divided into two columns summarizes distributive and
integrative bargaining and attitudinal structuring. The column
headers are marked as: distributive and integrative bargaining
and attitudinal structuring.Distributive and Integrative
Bargaining Attitudinal Structuring Produce a written
contractCreates a social contract that reflects the attitudinal
quality of the relationship between labor and management Are
subprocesses for managing transactionsIs a subprocess for
managing relationships
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Intraorganizational bargaining: bargaining process that takes
place within an organization
Intraorganizational bargaining occurs because of the diverse
interests within the constituency of a negotiator.
It is more visible on the union side of the collective bargaining
process.
But is also important on the management side.
Occurs in varying ways.
Might include both distributive and integrative bargaining
tactics.
“everyone needs a victory speech” at the end.
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Reaching Agreement 1
Successful negotiations conclude with a tentative agreement
An agreement is only tentative because union negotiators must

obtain formal approval before the settlement becomes official
(maybe management negotiators, too).
Negotiations are usually settled at the last minute.
Settling earlier risks leaving the audience dissatisfied and
suspicious that the negotiators have not fought for their
interests as strenuously as possible.
It takes three agreements to achieve one agreement, an
agreement within each party as well as one across the table
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Reaching Agreement 2
If the contract is not ratified or approved, the negotiators might
return to the bargaining table to negotiate a revised contract, or
a strike or lockout might occur.
Once a contract settlement is signed, it is legally binding.

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Public Sector Bargaining
Similar to that in the private sector
Need thorough preparation.
Bargaining structures range from very decentralized to
centralized.
Negotiations involve dynamic mixtures of the four
subprocesses.
Unique aspect: Multilateral bargaining: Negotiations between
more than two parties
Raises the possibility of an end run.
Unions can appeal for support directly to other groups, who can
pressure the management officials at the bargaining table.

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Continuity and Change 1
In both the private and public sectors:
Collective bargaining has traditionally been adversarial yet
professional.
Collective bargaining has become increasingly divergent.
A number of employers have tried to tackle labor cost issues
through a forcing strategy.
Aggressive distributive bargaining tactics force weakened labor
unions to grant significant wage, benefit, and work rule
concessions.
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Concession bargaining has been a prominent feature of labor
relations in many industries since the 1980s
The most aggressive forcing strategies have often involved
strikes and the use of replacement workers to take the place of
striking workers.
Situations witnessed an escalation in conflict that risked
violence, continued distrust, and unanticipated costs to the
employer.
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Chaining a bargaining relationship between an employer and
union from adversarial to integrative highlights issues of change
management and leadership
Negotiators often express frustration with both the personal
costs and the organizational costs of adversarial bargaining
sessions.
Management negotiators rate the integrative approach higher

than the traditional approach
Union negotiators prefer traditional bargaining.
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Resistance to Changing Bargaining Relationships from
Adversarial to Integrative
Table divided into two columns summarizes general and
change-specific reasons for resistance to change. The column
headers are marked as: Resistance to change factors and
application to labor negotiations.
Change-Specific Reasons for Resistance to Change
General Reasons for Resistance to ChangeResistance to Change
FactorsApplication to Labor NegotiationsInertiaInertiaDifficult
to try something new.Strong tradition of adversarial
negotiations in labor relations.TimingTimingNot a good time to
try something new.Difficult to change style or form in the
middle of negotiations.SurpriseSurpriseSudden and unexpected
occurrences can cause a negative reaction.Manage ment or labor

might unilaterally develop a new approach and propose it to the
other side without warning.Peer PressurePeer PressureGroup
norms might sharpen resistance to changeStrong anti-union or
anti-management group sentiment can reinforce suspicions
about the other side’s motives for change.Self-InterestSelf-
InterestA specific change might be harmful to a certain person
or group.The more powerful side might see a different
bargaining style as weakening their
position.MisunderstandingMisunderstandingIncomplete or false
information about a proposed change might cause
resistance.Some view integrative bargaining methods as giving
up power and selling out.Different AssessmentsDifferent
AssessmentsDifferent people might value elements of a change
differently.Management emphasis on efficiency; labor emphasis
on equity and voice.
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End of Main Content
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Accessibility Content: Text Alternatives for Images

© McGraw-Hill
The Bargaining Time Line 1 - Text Alternative
Return to parent-slide containing images.
The diagram shows the bargaining time line between an
employer and a union.
Table divided into four columns shows the bargaining time line
between an employer and a union. The column headers marked
from left to right are: Stage; time; employer; and
union.StageTimeEmployerUnionPreparationSeveral months
prior to bargainingAssign bargaining team and
responsibilitiesElect bargaining committee and determine
responsibilitiesPreparationSeveral months prior to
bargainingConduct external benchmarking or data
collectionIdentify membership concerns and
goalsPreparationSeveral months prior to bargainingReview
experience under current contract and fit with corporate
strategic and financial goalsReview current
contractPreparationSeveral months prior to bargainingPrepare
strike contingency planDiscuss issues with the national
unionPreparationSeveral months prior to bargainingDevelop
bargaining proposals and agenda, targets, minimums, strategies;
anticipate other sideDevelop bargaining proposals and agenda,

targets, minimums, strategies; anticipate other
sidePreparation60 days before deadlineNotify union and F M C
S of intent to bargainNotify employer and F M C S of intent to
bargain
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The Bargaining Time Line 2 - Text Alternative
Table divided into four columns shows the bargaining time line
between an employer and a union. The column headers marked
from left to right are: Stage; time; employer; and union.
StageTimeEmployerUnionBargainingDuring the 60 days before
deadlineEstablish ground rulesEstablish ground
rulesBargainingDuring the 60 days before deadlineMultiple
negotiating sessions and internal caucusesMultiple negotiating
sessions and internal caucusesBargainingDuring the 60 days

before deadlineContract costingContract
costingBargainingDuring the 60 days before deadlineReach
tentative agreementReach tentative agreementBargainingDuring
the 60 days before deadlinePrepare debriefing materials for
managers; strike preparations if neededDebrief membership;
conduct contract ratification vote; obtain national union
approval; strike preparations if needed
The employer and union sign a new contract if the settlement
deadline, current contract expiration date, is reached.
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Bargaining Structure - Text Alternative
The four types of bargaining are as follows:
Decentralized bargaining
Multisite bargaining
Industrywide bargaining

Pattern bargaining
In decentralized bargaining, workplace managers and the
members of a local union meet at a bargaining table and
negotiate the terms of employment at the workplace.
In multisite bargaining, the managers of Company A and three
or more local unions meet at a bargaining table and negotiate
the terms of employment at Company A.
In industrywide bargaining, the managers of multiple
organizations in an industry such as Company A, Company B,
and Company C and the members of various local unions meet
at a bargaining table to negotiate the terms of employment in
the industry.
In pattern bargaining, the managers of Company A and the
members of a local union or unions meet at a bargaining tabl e to
negotiate the terms of employment at Company A. Then, the
managers of Company B, which is in the same industry as
Company A, and the members of a local union or unions meet at
a bargaining table to negotiate the terms of employment at
Company B based on the employment contract terms at
Company A.

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The Integrative Bargaining Steps - Text Alternative
These steps are as follows:
1. Identify the issue.
2. Understand everyone’s fundamental interests.
3. Brainstorm options for satisfying these interests.
4. Create standards based on the following questions: Is the
option feasible? Does it satisfy the interests? Is it acceptable to
constituents?
5. Apply the standards to the options.
6. Finalize solution.

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DETAILED PROPOSAL TEMPLATE
Project based on real estate -vena
Dean and kent mcfayden
Dean -real estate , construction houses –
West hills big project
DOORs -16000 -
Kent - physical office – downtown Victoria
Website :- homes of Victoria.ca
Victoria – palm spring of Canada
30% more rain – rarely snow – shorts all round year
Retirement – focused
Use APA style. No page limit
TITLE PAGE includes all names of team members, course
number, submitted to professor, date
COVER LETTER TO CLIENT see sample proposal format
posted on course site – 1 pg
EXECUTIVE SUMMARYcomplete this last after you have

finished the proposal, highlight key features of the proposal –
key activities, anticipated outcomes, benefits – 1 pg
TABLE OF CONTENTS
INTRODUCTION TO THE SITUATION/UNDERSTANDING
YOUR NEEDS demonstrate your understanding of the business
situation, their business needs and the purpose of your proposal,
proposal objectives –
· Victoria BC – expansion outside outskirts
·
·
OUR CONSULTING TEAM identify the members of your team,
their background and qualifications for this project and their
proposed role in the project
KEY FINDINGSPrepare Porter’s 5 Forces analysis. You may
also include the SWOT analysis or another tool as appropriate.
If this section is lengthy, summarize and place the detailed
analysis in an appendix.
· PORTER’S 5 FORCES
· Strategy
· Finance
· Human Resources
· Information Technology
· Operations
· Marketing

PROJECT PURPOSE/OBJECTIVES Identify what the project
entails, the purpose, intended outcomes and benefits to client
organization.
APPROACH & METHODOLOGYThe approach should indicate
to the client how you propose to undertake the project based on
the recommended option to achieve project objectives and
outcomes; the methodology will indicate what you will do in
undertaking project objectives, the key activities (could be
identified as phases of the project and key activities, key
deliverables (what you will produce) and the high level timeline
for project activities and deliverables.
RECOMMENDATIONS/OPTIONSIdentify the options you are
recommending based on your analysis and other research and
include information provided by client (for example, identify
limitations, constraints, risks, issues in undertaking specific
options). Provide a final recommendation to the client for the
preferred option based on your analysis. You can refer to
Porter’s 5 Forces (optional) as listed below or identify
risks/issues/pros/cons of your options in considering the best
option based on the needs of the client and improving their
growth and position in the market.
•Strategy
•Finance
•Human Resources
•Information Technology

•Operations
•Marketing
CHANGE READINESS ASSESSMENT(Kotter’s 8 step process
)
Add this to your final analysis if there is a significant change
required. Consider, how ready is this client organization to
undertake the recommended actions? What do you propose to
client to ensure that the recommended plan of action is
successful? Consider all of the following steps in Kotter’s
process.
· Establishing a Sense of Urgency
· Forming a Powerful Guiding Coalition
· Creating a Vision
· Communicating the Vision
· Empowering Others to Act on the Vision
· Planning for and Creating Short-Term Wins
· Consolidating Improvements and Producing still More Change
· Institutionalizing New Approaches
IMPLEMENTATION - WORK PLAN/SCHEDULE/FEES The
final portion of the proposal will include an implementation
plan, taking the high level timeline and breaking it down into a
more detailed work plan with phases and timeframe for each
phase, activities, deliverable dates/key milestones and resource
requirements to undertake the preparation through
implementation phases. The schedule will be translated into

hours of work per phase, per consultant resource with proposed
fees. We will discuss this in the class.
CONCLUSION/SUMMARY Add a final concluding section to
highlight be project outcomes, benefits/value to client
organization.
BIBLIOGRAPHY/REFERENCES Include all resources used to
prepare your proposal, include reference to any client
documents, external research and articles, and any other source
you used to support your proposal.
APPENDICES
Chapter 9
Contract Clauses and Their Administration

1
Learning Objectives
Understand the nature of United States union contracts.
Explain important contractual provisions that attach rights and
obligations to employees, jobs, unions, and employers.
Outline how grievances are resolved, that is, how contracts are
administered.
Discuss the importance of grievance arbitration in United States
labor relations.
Analyze the pressures for changing the nature of United States
union contracts and how they are administered.
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Introduction 1
Labor unions and their supporters believe that workplace justice
and efficiency are best achieved through written workplace

rules enforced by private system of workplace dispute
resolution
Under the employment-at-will doctrine, employers are free to
establish whatever terms and conditions for employment to
discharge workers at any time.
Unions have long sought to protect workers by restricting this
absolute authority.
The result: detailed, legally enforceable union contracts back-up
by grievance arbitration to resolve disputes.
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Introduction 2
For over 50 years, the centerpiece of United States labor
relations has been union contracts that specify the rights and
responsibilities of employees
Important to understand their typical content.
Moreover, in spite of the detailed nature of many contract
clauses, they can never anticipate or remove every ambiguity

for all scenarios that will arise during the life of the contract
Contract administration - Interpreting, applying, and
resolving conflicts regarding collective bargaining agreements.
A critical process in United States labor relations that involves
rights disputes.
Rights disputes - Disagreements over whether someone’s rights
as specified in the contract have been violated.
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United States Union Contracts 1
Workers fought for workplace justice in the early decades of the
1900s
Frequently tried to force their employers to follow impartial
rules:
Wages that were based on jobs rather than unfair manipulation
of piece rates.
Promotions and layoffs based on seniority rather than
managerial favoritism and discrimination.

This was a way of “introducing civil rights into industry [by]
requiring that management be conducted by rule rather than by
arbitrary decision”.
And instead of worker rights defended by militancy that
disrupts production.
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Today’s union contracts
Legally enforceable documents that specify the laws of the
workplace in great detail.
Some are hundreds of pages long.
Most contracts have a duration of three years.
Some contracts include a reopener clause by which the parties
can reopen the contract during its life to negotiate wage or
benefit adjustments.
Most contracts are renegotiated upon expiration.

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This bureaucratic model has critics
From a managerial perspective rules-based contracts and the
system of grievance arbitration that relies heavily on past
practices and precedents are viewed as inhibiting flexibility and
innovation.
Among some labor activists the bureaucratic system of
representation is criticized for achieving stability at the expense
of rank-and-file involvement and activism.
This chapter focuses on the path traditionally found in U.S.
labor relations: striking a balance between efficiency, equity,
and voice through specific rules laid out in union contracts that
are enforced through formal quasilegal grievance procedures.

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Major Components of Traditional Union Contracts 1
Table summarizes the major components of traditional U.S.
union contracts with their obligations.Employee Rights...a nd
ObligationsJust cause discipline and dischargeObey work
rulesSeniority rights in layoffs, promotions, etceteraFollow
supervisor’s ordersCompensation (benefits, call-in pay,
etcetera)Abide by the contractFair hearing through the
grievance procedureAccept arbitrators’ awardsJob RightsJob
holders entitled to a certain wage rateSpecific tasks must be
done within the bargaining unit and by certain jobs...and
ObligationsFulfill job standardsUnion RightsExclusive
bargaining agentUnion bulletin board in the workplaceUnion
leader access to the workplaceShop stewardsUnion security and
dues checkoff clauses...and ObligationsAbide by the contract,
including not striking over grievancesAccept arbitrators’ awards
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Major Components of Traditional Union Contracts 2
Table summarizes the major components of traditional U.S.
union contracts with their obligations.Management Rights...and
ObligationsHire and fire (with just cause)Abide by the contract,
including not making unilateral changesDetermine job content
and workforce sizeJust cause discipline and dischargeEstablish
production standards and rules of conductAbide by the
contractDecide what to produce and how and where to make
itAccept arbitrators’ awardsGrievance ProcedureE mployees, the
union, and management meet to resolve disputes over the
application and enforcement of the contractTypically a multi -
step procedure in which unresolved grievances are appealed to
higher levels in the organizationThe final step is frequently
binding rights arbitrationOtherContracts are legally-enforceable
(in the United States)Contracts are usually several years in
duration
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Employee Rights and Obligations 1
Four types of employee rights are frequently granted in union
contracts:
Just cause discipline and discharge.
Seniority rights.
Compensation.
Grievance procedures.
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Employees can be disciplined and discharged only for “cause”
or “just cause”
When this provision is in a union contract, employees have the
right to insist that there be valid, job-related reasons for
discipline or dismissal.

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A second category of employee rights pertains to seniority
A traditional union objective is to replace arbitrary or
discriminatory treatment of workers with an objective standard
to prevent favoritism, manipulation, and abuse.
Widely used in union contracts as a criterion for allocating
employment opportunities.
Factor in promotions and transfers with more senior employees
having priority over less senior ones.
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© McGraw-Hill

Third category of employee rights
Unionized workers are more likely than nonunion employees to
receive benefits.
Health insurance, pensions, life insurance, and the like.
Numerous collective bargaining agreements contain provisions
pertaining to overtime compensation, premium pay for
weekends, and rest periods among others.
A majority of private sector contracts give employees the right
to reporting pay and call-in pay.
‹#›
© McGraw-Hill
Nearly every United States union contract contains a grievance
procedure
Employees are entitled to challenge managerial actions that they
feel violate their rights under the contract.

The final step of the grievance procedure is almost always
binding arbitration.
Through the grievance procedure, union contracts grant
employees the right to a fair hearing when there is a workplace
problem.
‹#›
© McGraw-Hill
Job Rights and Obligations
Union contracts confer rights and obligations to jobs
Unions representing blue-collar workers frequently negotiate
wage rates that are tied to specific jobs.
Tries to limit managerial favoritism.
Certain jobs are entitled to perform certain tasks.
Unions seek such job rights because of a concern that the
employer might whittle away the union-represented jobs by
having supervisors expand their duties.
Subcontracting and outsourcing restrictions try to prevent the
loss of union jobs by limiting the farming out of work to other

employers.
Management might try to replace higher-skilled jobs with
lower-skilled, and therefore lower-paying jobs.
‹#›
© McGraw-Hill
Union Rights and Obligations 1
Third category of clauses frequently found in collective
bargaining agreements gives unions rights and obligation
A recognition clause can help unions maintain their strength
by including new occupations within the bargaining unit.
Unions are concerned with maintaining recognition rights if a
business is sold or if a public sector operation is privatized.
To facilitate communication between a union and the employees
unions negotiate rights for union leaders to:
Use a bulletin board on company premises.
Meet employees at workplace.

‹#›
© McGraw-Hill
Union security clauses
Closed shop, requiring the employer to hire only union members
(this is illegal under United States labor law).
Union shop, requiring employees to become union members
after hired in order to keep their jobs.
Technically this is unenforceable; only dues are required.
Agency shop, requiring employees to pay union dues after hired
in order to keep their jobs.
Beck rights: Right to pay less than full union dues.
Workers need to pay only the amount of dues that goes toward
collective bargaining and contract administration.
Figuring this out can be complicated.
Right-to-work states ban union and agency shop clauses

‹#›
© McGraw-Hill
“Right to work” (equals no union or agency shop clause) is
controversial
Unions argue that workers shouldn’t be allowed to be free riders
because they are entitled to representation.
Counterargument: workers shouldn’t be forced to pay money to
an organization they don’t support.
‹#›
© McGraw-Hill
An important 2018 Supreme Court ruling: Janus v. American
Federation of State, County, and Municipal Employees
Agency fees (equivalently, fair share fees) are now prohibited

across the entire public sector at all levels of government.
This has shifted the terrain of the union security debates in the
public sector.
In particular, conservative groups believe that members should
be able to resign at any time, whereas the labor movement wants
this limited to specific time windows.
‹#›
© McGraw-Hill
Union obligations
There are various rights that a union might be granted by
contract clauses.
It is obligated to live up to the terms of the complete contract.
Unions usually give up the right to strike over grievances and
instead must pursue orderly resolution of disputes over the
application of the contract through the grievance procedure.
Unions can be sued for violating a collective bargaining
agreement.

‹#›
© McGraw-Hill
Duty of fair representation
A union “may not arbitrarily ignore a meritorious grievance or
process it in a perfunctory fashion” in a discriminatory or bad
faith manner.
Applies to all bargaining unit members, even workers who do
not join the union or pay dues.
This obligation applies to both contract negotiation and
administration, though it is frequently discussed in terms of
contract administration.
This obligation is universal and does not depend on the
presence of specific clauses in a union contract.
It derives from the union’s privilege of being the exclusive
bargaining representative of the workers.

‹#›
© McGraw-Hill
Management Rights and Obligations 1
Management rights clauses – makes it clear that management
maintains sole authority over traditional manage ment functions
Such as hiring, firing, assigning work, determining job content,
and deciding what to produce and how and where to make it.
Such clauses are found in 80 percent of private sector contracts.
Management rights are guaranteed by law in some public sector
bargaining laws.
Management rights clauses are even found in collective
bargaining agreements in which the employer is a union.
‹#›
© McGraw-Hill

Reserved rights doctrine - All management rights not explicitly
limited, restricted, or modified by the union contract are
reserved by management
Many arbitrators uphold the reserved rights doctrine even if this
specific language is not in the contract.
The detailed work rules often found in union contracts are a
natural reaction by organized labor to this doctrine
If management retains authority over all issues that are not
limited, restricted, or modified, then unions will seek to
explicitly limit, restrict, and modify managerial authority where
it serves workers’ interests.
‹#›
© McGraw-Hill
These limitations, restrictions, and modifications largely
represent management’s obligations under union contracts (for

example, just cause, seniority rights, etcetera).
‹#›
© McGraw-Hill
Grievance Procedures 1
Even detailed contract clauses can never anticipate or remove
every ambiguity for all scenarios that will arise during the life
of the contract
Contract administration - Interpreting, applying, and resolving
conflicts regarding collective bargaining agreements (equals
grievances).
‹#›
© McGraw-Hill

Possible methods for settling grievances
One party might unilaterally control how grievances are
resolved, whether it be an employer, a union, or a judge.
Union contracts reject this approach.
Allow multiple parties to participate in grievance resolution
(equals grievance procedure).
This is what is favored in union contracts.
Rejection of the unilateral approach is nearly universal in
contemporary United States labor relations
Management is unwilling to concede control to unions, and
vice versa.
‹#›
© McGraw-Hill
Grievance procedure - The method for resolving rights disputes
and grievances over the interpretation, application, and

enforcement of union contracts in United States labor relations
that is negotiated into a contract
Unilateral management control undermines the whole point
of collective bargaining.
Without a balanced dispute resolution procedure for grievances,
workers and workplace justice are at the mercy of employers
and markets.
This is the situation that the NLRA and public sector bargaining
laws seek to improve upon.
‹#›
© McGraw-Hill
The typical steps in a unionized grievance procedure
Discussions between the employee who has a grievance and his
or her supervisor.
If grievance remains unresolved, go to next step.
A union representative and a management official from the
employee’s department try to settle the dispute.

The employee or union can further appeal to higher level
management and union representatives.
The union can appeal the step 3 outcome to binding arbitration.
‹#›
© McGraw-Hill
The uses of the grievance procedure:
Provides a fair, orderly and efficient method for resolving
rights disputes and enforcing union contracts.
Incorporates accepted standards of justice and due process
into the workplace.
Nonunion grievance procedures can lack due process
protections.
Employers and unions benefit from continuity, consistency,
and a prescribed channel of communication.
Gives unions an avenue for pressuring management to further

their bargaining goals.
Note: Formal grievances may be inevitable in unionized
workplaces, but the rate at which they emerge is not
‹#›
© McGraw-Hill
Grievance Arbitration 1
Rights arbitration - Ensures that the grievance process is fair
and respects workers’ rights
This is also called grievance arbitration.
Involves a hearing before a third-party neutral (the arbitrator),
who issues a decision that is binding on the parties.
Focuses on rights disputes.
Nearly all contracts in both the private and public sectors
include binding rights arbitration as the last step of the
grievance procedure.

‹#›
© McGraw-Hill
The legal support for grievance arbitration: Supreme Court
rulings ensure the viability and importance of grievance
arbitration in United States labor relations
In 1957 the Court ruled that if a union contract contains binding
arbitration as the final grievance procedure step, the employer
is legally bound to adhere to this agreement and submit
unresolved grievances to binding arbitration.
Steelworkers trilogy: The collective reference to the decisions
taken by the Court in 1960, all involving the United
Steelworkers of America.
Provide strong legal support for the grievance arbitration
process.
The supremacy of grievance arbitration decreases when the
grievance overlaps with employment laws and public policies.

‹#›
© McGraw-Hill
The quasijudicial nature of grievance arbitration
The arbitrator’s sole job is to interpret not adapt or modify
the contract.
Grievance arbitration is not a problem solving exercise.
The arbitrator is limited in methods and solutions.
Cannot be creative; rather, needs to stick to the contract.
An arbitration hearing is like a courtroom hearing, and
extensive preparation by both labor and management advocates
is important
If the grievance is upheld, a remedy is also awarded.
‹#›
© McGraw-Hill

Interpreting ambiguous contract language
The arbitrator’s task is to interpret the contract and apply it to
the situation at hand.
Disputes for which the contract is clear are likely to be settled
early in the grievance procedure, so arbitrators frequently
confront difficult and ambiguous matters of interpretation.
Arbitrators’ decisions are based on the common law of the
workplace
The written rules and unwritten customs developed in each
workplace by the union contract.
Contractual language, intent, and past practices.
‹#›
© McGraw-Hill
While there are many positives, there are also criticisms of
grievance arbitration
The bureaucratic nature of traditional grievance procedures and

the importance of stewards, union officials, and attorneys rather
than individual workers are attacked by labor activists for
stifling rank–and-file involvement in unions.
It can be lengthy and costly.
It can excessively legal, formal, and reactive.
Perhaps also need proactive problem solving in constructive
labor-management relationships.
‹#›
© McGraw-Hill
Employee Discipline 1
One of the most important areas of contract administration is
employee discipline and discharge
Employers particularly want to be able to discipline and
terminate employees who are substandard performers.
Employees do not want to lose their jobs unfairly.
Most union contracts specify that employees can only be
disciplined or discharged for just cause
Just cause - There must be valid, job-related reasons for

being disciplined or fired.
Arbitration precedents have developed standards.
‹#›
© McGraw-Hill
Seven Tests of Just Cause 1
Did the worker know the consequences of his or her conduct?
Was the rule, order, or standard reasonably related to the
orderly, efficient, and safe operation of the employer’s
business?
Was the alleged violation thoroughly investigated before
discipline?
Was the investigation fair and objective?
Did the investigation reveal convincing proof of guilt?

‹#›
© McGraw-Hill
Seven Tests of Just Cause 2
Was the employer’s discipline non-discriminatory?
Was the discipline reasonably related to the worker’s record and
the severity of the conduct?
‹#›
© McGraw-Hill
Employee Discipline 2
An employee’s rights to representation
The Supreme Court has interpreted the right of employees to
engage in concerted activity for mutual protection to mean that
an employee who believes that discipline will result from a
meeting with management can insist that a union representative
be present.
This is called an employee’s Weingarten rights.

The union representative is entitled to assist the employee
but not to obstruct reasonable questioning by the employer.
‹#›
© McGraw-Hill
Do These Contract Clauses Matter? 1
What effects do these contract provisions have?
Chapter 2 reviewed the key research on what do unions do.
Whether these effects are interpreted as the unfortunate product
of monopoly power or as the fairness-enhancing result of a more
balanced employment relationship depends on the school of
thought used to analyze the employment relationship.
Unions also bring grievance procedures that end in binding
arbitration to the employment relationship
The basic statistics of these grievance procedures show that
they provide due process protections to employees.
Analyses of what happens to individual grievants and their
supervisors are less favorable.

‹#›
© McGraw-Hill
What about important effect on organizational performance?
Many aspects of union contracts are predicted to reduce
productivity.
Control gap: The difference between restricted managerial
control in unionized and complete unilateral control in
nonunion workplaces.
Might be more important than the wage gap in explaining
employer opposition to unions.
‹#›
© McGraw-Hill

But grievance procedures, seniority provisions, just cause, and
other fairness-promoting provisions might increase morale,
reduce turnover, and improve productivity
The overall evidence is mixed.
Effect of unionism on productivity is determined by the
specifics of each situation, including whether managers are
accommodating or confrontational.
‹#›
© McGraw-Hill
Nonunion Workplace Dispute Resolution 1
A critical difference between union and nonunion United States
workplaces is the nature of dispute resolution
Many nonunion workplaces traditionally lacked formal
dispute resolution systems - Open door policies.
So by default they relied heavily on managerial control.
Employees discuss their concerns and complaints with their

managers.
Employees who are dissatisfied by the managers’ responses ar e
free
to quit.
‹#›
© McGraw-Hill
Other elements are increasing being added to supplement open
door policies
Ombudsperson - Neutral facilitator between employees and
managers who helps them resolve workplace disputes.
Peer-review grievances - Can be appealed to a review panel in
which employees comprise the majority of the panel members.
The use of mandatory arbitration instead of the courts to resolve
employment law claims.

‹#›
© McGraw-Hill
Reasons for increased adoption of nonunion workplace dispute
resolution:
Formal dispute resolution procedures can be part of a human
resource management strategy to increase organizational
commitment and performance by treating employees fairly and
identifying problem areas.
These procedures might be implemented to try to avoid costly
lawsuits.
Implementation of a grievance procedure in a nonunion
workplace might be part of a union substitution strategy to
prevent unionization.
‹#›

© McGraw-Hill
End of Main Content
www.mheducation.com
·
https://www.nytimes.com/interactive/2020/02/19/magazine/labo
r-law-unions.html (Links to an external site.)
· https://www.wsj.com/articles/uaw-staffer-sues-union-alleging-
sexual-harassment-retaliation-11590689758 (Links to an
external site.)
· NOTE: Please utilize the WU Library's databases to access the
stories above, if necessary.
Weekly assignments must be written in the following format

(Weekly Written Assignment Format_715.docx
Actions
) and students must address the following with NO REPEATS
below:
· Identify one positive specific fact from each story above.
· Identify one negative specific fact from each story above.
· Identify one interesting specific fact from each story above.
· Link a theory/concept from Chapters 7 & 9 to specific facts in
the stories above (2 Total—Cite page and chapter numbers--
each chapter MUST be utilized...one per story!).
· Identify the theory/concept and define/explain it.
· Briefly describe its linkage to the specific fact(s) within each
story.
NOTE:
Submit as an attached MS Word document--300 words max
TOTAL!
Example (Do NOT copy)--
Positive Specific Fact
1 – The teacher’s strike in LA in 2019 was effective due to their
strategic preparation and garnering community support.
2 – Patricia Morris-Gibson served as a union leader for 22
years.
Negative Specific Fact
1 – McDonald’s was able to drag out their NLRB trial and
ended up paying a small settlement instead of acknowledging

their role in organization suppression.
2 – When Morris-Gibson reported incidents of harassment, they
were not dealt with appropriately.
Interesting Specific Fact
1 – The same person who worked with Reagan to end the air
traffic controller strike is now on the NLRB.
2 – The UAW has had multiple investigations into their
harassment, corruption, etc.
Theory/Concept Definition/Explanation
1 – Permanent strike replacements are workers who continue to
work in their position after a strike ends. They are brought in
because the original workers are out on strike. (Ch. 7, Pg. 282)
2 – The grievance procedure is a negotiated, agreed-upon set of
steps to follow to resolve issues between an employee and their
supervisor. (Ch. 9, pg. 320-1)
Theory/Concept Linkage
1 – As discussed in both the article and the textbook, Reagan
fired and replaced the workers during the 1981 air traffic
controller strike. By doing so, they were able to decertify the
union because none of the original union supporting workers
were there anymore.
2 – In the article, Morris-Gibson raised her concerns and the
UAW failed to take appropriate corrective measures. Instead,
they called her into a meeting with the person she was accusing,
which made her uncomfortable and did not properly resolve the

issues. This should have been appealed and brought to the next
level of the grievance procedure.
---------------------
Chapter 7:
Once a union wins the right to represent a group of
employees/workers, its next step is to negotiate a contract. In
other words, it is time to begin the collective bargaining
process. As mentioned in an earlier chapter, labor is often seen
as being pitted against management. In a traditional sense, both
sides would dig their heels in and fight for their own good
(zero-sum bargaining). However, in light of the effects of
globalization, outsourcing, recessions, etc., both labor and
management MUST consider new approaches to the bargaining
process in order to survive and/or grow. One of these is called
integrative bargaining (win-win). Wherein, both sides look to
one another as partners vs enemies.
“Most employers, however, who steal wages from workers do so
intentionally, either by directly putting in place systems and
approaches for stealing wages or by indirectly failing to install
systems to prevent wage theft, especially in supply chains and
contracting. Think of these as both sins of commission and sins
of omission”
-Kim Bobo
Chapter 9:

Just because a union wins an election and successfully
negotiates a contract that does not mean it can ignore what
transpires during the life of that collective bargaining
agreement (CBA). Actually, the real work now begins. As you
can imagine, the written word can take on a number of
meanings. Therefore, it is extremely important that the union
business representative keep close contact with his/her shop
steward and management counterpart(s). It is recommended that
issues be dealt with as their arise vs making a list that is to be
debated at the end of the current CBA. It is in the best interest
of all stakeholders to build upon the trust established in the
earlier stages of this process.
“The expansion of worker involvement in business and strategic
decisions has led to labor and management to rely less on the
grievance procedure to solve problems. An effective industrial
labor relations system in union settings must be more than
simply a grievance procedure. To keep in step with the times,
the system must combine the strengths of a well-functioning
grievance procedure with mechanisms to informally solve
problems and enhance communications.”
-Harry Katz & Thomas
Kochan

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