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Collective bargaining


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collective bargaining is useful

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Collective bargaining

  2. 2. Chapter Objectives <ul><li>Discuss whether or not an adversarial relationship exists between union and management. </li></ul><ul><li>Explain labor-management relations and individual bargaining. </li></ul><ul><li>Describe labor-management relations and collective bargaining. </li></ul><ul><li>Explain the psychological aspects of collective bargaining. </li></ul>
  3. 3. Chapter Objectives (Continued) <ul><li>Describe the factors involved in preparing for negotiations. </li></ul><ul><li>Explain typical bargaining issues. </li></ul><ul><li>Describe the process of negotiating the agreement. </li></ul><ul><li>Identify ways to overcome breakdowns in negotiations. </li></ul>
  4. 4. Chapter Objectives (Continued) <ul><li>Describe what is involved in ratifying the agreement. </li></ul><ul><li>Explain factors involved in administering the agreement. </li></ul><ul><li>Describe collective bargaining in the public sector. </li></ul>
  5. 5. Individual Bargaining <ul><li>Employment at will – unwritten contract created when employee agrees to work, but no agreement exists as to how long parties expect employment to last </li></ul>
  6. 6. Individual Bargaining (Continued) <ul><li>Seniority means little </li></ul><ul><li>Concept of supply and demand </li></ul><ul><li>Employment at will </li></ul>
  7. 7. Collective Bargaining <ul><li>Fundamental to management-organized labor relations in United States </li></ul>
  8. 8. Forms of Bargaining Structures <ul><li>One company dealing with a single union </li></ul><ul><li>Several companies dealing with single union </li></ul><ul><li>Several unions dealing with a single company </li></ul><ul><li>Several companies dealing with several unions </li></ul>
  9. 9. Union/Management Relationships <ul><li>Conflict </li></ul><ul><li>Armed truce </li></ul><ul><li>Power bargaining </li></ul><ul><li>Accommodation </li></ul><ul><li>Cooperation </li></ul><ul><li>Collusion </li></ul>
  10. 10. Collective Bargaining Process <ul><li>Preparing for negotiation </li></ul><ul><li>Bargaining issues </li></ul><ul><li>Negotiation </li></ul><ul><li>Negotiation breakdown </li></ul><ul><li>Reaching the agreement </li></ul><ul><li>Ratifying the agreement </li></ul><ul><li>Administration of the agreement </li></ul>
  11. 11. Psychological Aspects of Collective Bargaining <ul><li>Difficult because process is an adversarial situation and must be dealt with as such </li></ul><ul><li>Psychological aspects vitally important </li></ul>
  12. 12. Preparing for Negotiations <ul><li>The Borg-Warner Doctrine , derived from the Supreme Court decision in the case of NLRB v. Wooster Division of Borg-Warner Corporation (1958), empowered the NLRB to categorize bargaining issues as: </li></ul><ul><li>Mandatory - wages, hours, etc. </li></ul><ul><li>Permissive – may be discussed, i.e., representation of the union on the company Board of Directors. Also referred to as voluntary bargaining </li></ul><ul><li>Prohibited - statutorily outlawed, i.e., closed shop or proposing work rules that would violate the Civil Rights Act </li></ul>
  13. 13. Bargaining Issues <ul><li>Document that results from collective bargaining process is labor agreement or contract </li></ul><ul><li>Recognition </li></ul><ul><li>Management Rights </li></ul><ul><li>Union Security </li></ul><ul><li>Compensation and Benefits </li></ul><ul><li>Grievance Procedure </li></ul><ul><li>Employee Security </li></ul>
  14. 14. Recognition <ul><li>Appears at the beginning of the labor agreement </li></ul><ul><li>Identifies the union that is recognized as the bargaining representative </li></ul><ul><li>Describes the bargaining unit </li></ul>
  15. 15. Management Rights <ul><li>Section that is often (but not always) written into labor agreement which spells out rights of management </li></ul>
  16. 16. Union Security <ul><li>Closed Shop -Arrangement whereby union membership is a prerequisite to employment – outlawed by Taft-Hartley, modified by Landrum-Griffin to allow for the construction industry only </li></ul><ul><li>Union Shop - Requires that all employees become members of the union after a specified period </li></ul><ul><li>Maintenance of Membership - Must continue their memberships until the termination of the agreement </li></ul>
  17. 17. Union Security (Continued) <ul><li>Agency Shop - Nonunion members pay union the equivalent of membership dues as a kind of tax </li></ul><ul><li>Exclusive Bargaining Shop - Company must deal with union that has achieved recognition, but employees are not obligated to join </li></ul><ul><li>Open Shop – Equal terms for union members and nonmembers </li></ul><ul><li>Dues Checkoff - Company agrees to withhold union dues </li></ul>
  18. 18. Compensation and Benefits <ul><li>Wage rate schedule </li></ul><ul><li>Overtime and premium pay </li></ul><ul><li>Jury pay </li></ul><ul><li>Layoff or severance pay </li></ul><ul><li>Holidays </li></ul><ul><li>Vacation </li></ul><ul><li>Family care </li></ul>
  19. 19. Grievance Procedure <ul><li>Means by which employees can voice dissatisfaction with specific management actions </li></ul><ul><li>Procedures for disciplinary action by management </li></ul><ul><li>Termination procedure that must be followed </li></ul>
  20. 20. Employee Security <ul><li>Seniority </li></ul><ul><li>Grievance handling procedures; typical model: </li></ul><ul><ul><li>Complaint of ULP must be initiated within a prescribed time period </li></ul></ul><ul><ul><li>Normally filed with front-line supervisor, who meets with Ee to attempt to resolve </li></ul></ul><ul><ul><li>IF unacceptable, union has prescribed time frame to appeal </li></ul></ul><ul><ul><li>Same basic process, escalated to higher levels of union/mgmt </li></ul></ul><ul><ul><li>IF unacceptable, then goes to officer level </li></ul></ul><ul><ul><li>IF unacceptable, then arbitration per labor contract terms </li></ul></ul>
  21. 21. Job-Related Factors <ul><li>Many of rules governing employee actions on job are included </li></ul>
  22. 22. Negotiating the Agreement <ul><li>Begins with each side presenting initial demands </li></ul><ul><li>Suggests a certain amount of give and take </li></ul><ul><li>Each side does not expect to obtain all demands presented </li></ul>
  23. 23. Breakdowns in Negotiations <ul><li>Third party intervention </li></ul><ul><li>Union strategies for overcoming breakdowns </li></ul><ul><li>Management strategies for overcoming breakdowns </li></ul>
  24. 24. Third Party Intervention <ul><li>Mediation - neutral party comes in when impasse has occurred </li></ul><ul><li>Arbitration – impartial third party makes binding decision to settle dispute </li></ul><ul><li>Sources of mediators and arbitrators </li></ul><ul><ul><li>Federal Mediation and Conciliation Service (FMCS), established under Taft-Hartley </li></ul></ul><ul><ul><li>American Arbitration Association (AAA) </li></ul></ul>
  25. 25. Union Strategies for Overcoming Negotiation Breakdowns <ul><li>Strikes – union members refuse to work to pressure management in negotiations </li></ul><ul><li>Boycotts – union members agree to refuse to use or buy firm’s products </li></ul>
  26. 26. Management Strategies for Overcoming Negotiation Breakdowns <ul><li>Lockout – keep employees out; operate firm by placing management and nonunion workers in striking workers’ jobs </li></ul><ul><li>Hire replacement for strikers </li></ul>
  27. 27. Ratifying the Agreement <ul><li>May be more difficult for union </li></ul><ul><li>Until approved by majority of members, proposed agreement is not final </li></ul>
  28. 28. Administration of the Agreement <ul><li>Larger and perhaps more important part of collective bargaining </li></ul><ul><li>Seldom viewed by public </li></ul><ul><li>Agreement establishes the union-management relationship for duration of the contract </li></ul>
  29. 29. Collective Bargaining for Federal Employees <ul><li>Executive Order 10988 (1962) established basic framework of collective bargaining in federal agencies </li></ul><ul><li>Later transferred to Title VII of the Civil Service Reform Act of 1978 </li></ul><ul><ul><li>Established Federal Labor Relations Authority (FLRA), modeled after the NLRB, to manage the process of negotiation with unions that represent federal Ee’s </li></ul></ul><ul><li>Title V of the U.S. Code, which dictates personnel rules for federal employees, narrows the EO somewhat by taking wages off the table, except for U.S. Postal Service workers </li></ul>