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  1. 1. – KPA CONFIDENTIAL – DO MY EMPLOYEE’S REALLY WANT ADO MY EMPLOYEE’S REALLY WANT A UNION?UNION? WHY?WHY? Thank you for joining us. We will begin at 10am MT.Thank you for joining us. We will begin at 10am MT.
  2. 2. – KPA CONFIDENTIAL – Thank you for joining us. We will begin at 10am MT.Thank you for joining us. We will begin at 10am MT. DO MY EMPLOYEE’S REALLY WANT ADO MY EMPLOYEE’S REALLY WANT A UNION?UNION? WHY?WHY?
  3. 3. Presenter John P. Boggs, Esq. Fine, Boggs & Perkins LLP (650) 712-8908
  4. 4. Questions • If you have questions during the presentation, please submit them using the “Questions” feature • Questions will be answered at the end of the webinar
  5. 5. Labor Unions and Retail AutomotiveLabor Unions and Retail Automotive 5 MASSIVE INCREASE IN UNION ORGANIZING EFFORTS IN CALIFONRIA
  6. 6. Common Restrictions on Unionized Workplaces • Scheduling and Overtime • Promulgation of Rules, Policies • Disciplinary Problems • Resistance to ANY Change • Subcontracting or Outsourcing • Closing or Relocation • Supervisors and Manual Work • Hiring and Promotion • Reductions in Force
  7. 7. Labor Unions and Retail AutomotiveLabor Unions and Retail Automotive 7 This could happen to you!
  8. 8. What is a union? • A union is a business that thrives on associate discontent • It is not a charity • Unions can make promises that it cannot deliver • Unions exist in every state and are targeting new businesses 8 Labor Unions and Retail AutomotiveLabor Unions and Retail Automotive
  9. 9. Unions Targets: 2010Unions Targets: 2010 9
  10. 10. The Rise and Fall of Unions in AmericaThe Rise and Fall of Unions in America 10
  11. 11. The National Labor Relations Board is an independent federal agency created by Congress in 1935 to administer the National Labor Relations Act, the primary law governing relations between unions and employers in the private sector. The statute guarantees the right of employees to organize and to bargain collectively with their employers, and to engage in other protected concerted activity with or without a union, or to refrain from all such activity. 11 The National Labor Relations BoardThe National Labor Relations Board
  12. 12. Sec. 7. [Sec. 157.] Employees shall have the right to self- organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, and shall also have the right to refrain from any or all such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment as authorized in section 8(a)(3) [section 158(a)(3) of this title]. Your Employees Right to OrganizeYour Employees Right to Organize 12
  13. 13. HOW UNION ORGANIZATION BEGINSHOW UNION ORGANIZATION BEGINS • Initial Contact with Union • Disgruntled employees • Affirmative Union actions • Casual Contact with Union • Early Stages of Campaign • Establish objectives • Establish organizing committee • Amass employee information • Showing of Interest • “Above Ground” Campaign • Peer pressure campaign • On-premises solicitation • Mass communication (handouts, mailings, video presentations) • Union meetings
  14. 14. Signs Of Union ActivitySigns Of Union Activity • Employees unusually busy and excited • Employees stop talking when approached • Unusual employee questions about company policies or practices • Argumentative questions or complaints in employee meetings • New spokesperson among employees • Certain employees receiving unusual amounts of attention • The same employees seen going to the washroom or break area with several different workers during the day
  15. 15. • Evidence that terminated employees are hanging around current employees • Flash rumors (an increase in the number or frequency of the type of rumor which is designed to excite or scare employees) • Employees trying to irritate supervisors prompting disciplinary action • Abnormal absenteeism or upsurge in attendance • Excessive loyalty professed by young and/or newly hired employees • Unexplained decreases or increases in productivity Signs Of Union ActivitySigns Of Union Activity
  16. 16. • Presence of strangers • Poor workers begin to do good work • Good workers begin to do poor work • Items on the Company bulletin board, etc., concerning union settlements or wage increases in other companies • Attempts to obtain the names and addresses of employees • Awkward attempts by loyal employees to communicate with their supervisors Signs Of Union ActivitySigns Of Union Activity
  17. 17. Why Associates Choose to UnionizeWhy Associates Choose to Unionize • Poor communications • Wages and benefits • Healthcare and retirement plans • Safety and working conditions • Workload and stress • Dispute resolution procedures • Job security and “at will” employment • Network of friends and supporters • Employee morale • Leadership credibility • Supervisors and employee treatment • Input and shared decision-making • Lack of employee recognition and appreciation 17
  18. 18. What is a ‘Bargaining Unit’?What is a ‘Bargaining Unit’? • A bargaining unit is a group of employees with a clear and identifiable community of interests who are (under U.S. law) represented by a single labor union in collective bargaining and other dealings with management. • Examples would be “Automotive Technicians“, “Vehicle Salespeople“, “Finance & Insurance Managers“, “Clerical and administrative employees“, “Parts Counter”, “Vehicle Detailers”, etc. • Bargaining units must consist of at least 3 employees, and must have the support of a majority of employees in the bargaining unit. However, the bargaining unit could be a small portion of a large company, where no other employees are members of a union. • Bargaining units may also be created among multiple work sites or dealerships 18
  19. 19. a) Union evaluates site to determine likelihood of successful campaign b) Union organizer contacts voting group (i.e.: technicians) c) Card signing process takes place (need 30% + 1) d) Petition files with National Labor Relations Board for election e) Election occurs within 42 days f) If 50% +1 vote for unionization, union wins 19 How Unions OrganizeHow Unions Organize
  20. 20. How Unions Organize 1-3 weeks 3-4 weeks 42 days after Petition Approved by NLRB 20 How Unions OrganizeHow Unions Organize
  21. 21. How Unions Pressure AssociatesHow Unions Pressure Associates 21
  22. 22. The Union Authorization Card 22
  23. 23. 12 Point Plan for Staying Union Free12 Point Plan for Staying Union Free 1. Create & issue a union-free philosophy statement 2. Conduct a vulnerability assessment 3. Conduct a bargaining unit (departmental) analysis 4. Identify & train your supervisors 5. Lock down your facility --Non-solicitation, Non-distribution Policies 6. Educate all employees 23
  24. 24. 12 Point Plan for Staying Union Free12 Point Plan for Staying Union Free 7. Learn to better identify “Salts” and Union Plants 8. Perfect communications “up’, down’ and ‘sideways’ 9. Maximize employee involvement programs 10. Focus on the main drivers of employee satisfaction 11. Establish an Early Response Team 12. Contact Human Resources and educate management on signs of union activity 24
  25. 25. Section 8(c) of the National Labor Relations Act Says: “The expressing of any views, argument, facts or opinion, or the dissemination thereof, whether in written, oral, electronic, printed, graphic, or visual form, shall not constitute or be evidence of an unfair labor practice under any of the provisions of this Act...” What YouWhat You CanCan Do & Say:Do & Say: You may express: Facts Opinions 25
  26. 26. • “If you join a union, you cannot deal directly with our company over wages, hours or other terms and conditions of employment.” • “The union does not have to process your grievance, complaint, or dispute in a manner that is satisfactory to you.” (In fact, the union may not have to process your complaint at all ) • “The union may call you out on strike over an issue that you do not agree with.” • “If you are called out ‘on strike’, the company as the right to replace you.” • “The union can charge you union dues or have you fired if you do not pay if you live in a non-right-to-work state and there is a union (income) security clause.” • “The union has the right to put you on trial for violating its rules and, if you are found guilty, the union can fine you.” “Hey, boss, should I sign this union card?” 26
  27. 27. • “You can deal directly with our company over wages, hours and other terms and conditions of employment.” • “You (and another employee) can discuss workplaces issues with your supervisors, and that activity is protected.” • “You can speak on your own behalf, without needing to pay a union to do it.” (which may or may not decide to process your complaint) • “You do not have to be concerned about being called out on a union-called strike that you may not agree with.” • “You do not have to worry about being placed on trial by a union.” • “You do not have to worry about being fined by a union if you are found guilty at a union trial.” What Supervisors Can Say: Persuading Your Associates Not to Unionize 27
  28. 28. Legally Protected Discussion PointsLegally Protected Discussion Points • Dues • How dues are spent • Fees • Fines • Assessments • Unwillingness to put promises into writing • Strikes • Pension funds • By-laws • Constitution • Risks of negotiations 28
  29. 29. How financially solid are union pensionHow financially solid are union pension plans?plans? Union Pensions in the Red July 26, 2009 In April, the SEIU National Industry Pension Fund reported that its pension has been put into what the feds call “critical status.” In other words, it lacks the cash to pay promised benefits and may have to cut them. As of 2007, the last year for which it reported results to the government, the fund had 74.4% of the assets needed to pay its benefits. Thirteen of the bigger plans operated for the Teamsters have, together, a mere 59.3% of reserves necessary to cover obligations. 29
  30. 30. Non-Solicitation /Non-Distribution Policy The Company’s Solicitation/Distribution Policy is to give our Company’s guests the best service possible. In order to allow associates to provide the guests with their undivided attention, associates are prohibited from soliciting and distributing literature during working time. Working time is the time associates are expected to be working and does not include rest, meal, or other authorized breaks. Associates are also prohibited from distributing literature in work areas at all times and prohibited from soliciting and distributing literature in sales and guest-access areas when guests may be present. Company owned e-mail, facsimile machines, voice mail and similar equipment may be used only for business-related purposes and not for personal use of any type. Non-associates may not solicit or distribute literature on Company property at any time, and trespassing is prohibited. 30
  31. 31. 31 Controlling Union Access to the DealershipControlling Union Access to the Dealership Publicize and consistently enforce broad policies regarding non- employee and employee access, solicitation and distribution; email; and bulletin board use Secure access to facility Secure employee information
  32. 32. Educating Your AssociatesEducating Your Associates • Discuss and broadly distribute your positive employee relations/union/issue-free philosophy • Describe/role-play card-signing tactics • Distribute an annotated union card • Explain union motivation • Explain what employees can lose under a union contract • Explain why your philosophy is better than union representation • Explain what the Employee Free Choice Act would mean to them 32
  33. 33. ““Day One” CommunicationDay One” Communication • Pre-hire orientation with Issue Free philosophy • Communicate Issue Free philosophy in interview process – not just WHAT but WHY. • New hire orientation video with Issue Free philosophy • Consider sending orientation video to the homes • Family involvement critical 33
  34. 34. Making Sure That Associates ChooseMaking Sure That Associates Choose NotNot to Unionizeto Unionize • Good communications • Fair Wages and benefits • Good healthcare and retirement plans • Good safety and working conditions • Low workload and stress • Good dispute resolution procedures • Job security based on clear objectives • Network of friends and supporters • High employee morale • Solid leadership credibility • Professional supervisors and good employee treatment • Welcome input and shared decision-making • Well developed employee recognition and appreciation programs • Solid, documented complaint resolution process 34
  35. 35. Questions and Answers John P. Boggs, Esq. Fine, Boggs & Perkins LLP (650) 712-8908
  36. 36. Contact Information The recorded webinar and presentation slides will be emailed to you today including your local representative’s contact information. 866-356-1735