chapter 15.ppt

Human Resource
Management
TWELFTH EDITION
G A R Y D E S S L E R
B I J U V A R K K E Y
Copyright © 2011 Dorling Kindersley (India) Pvt. Ltd
Authorized adaptation from the United States edition of Human
Resource Management, 12/e
Labor Relations and Collective Bargaining
Chapter 15
Part 5 | Employee Relations

15–2
After studying this chapter, you should be able to:
1. Give a brief history of the Indian and American labor
movements.
2. Present examples of what to expect during the union
organizing drive and election.
3. Illustrate with examples bargaining that is not in good
faith.
4. Develop a grievance procedure.

15–3
Labor Movement in India
1918 Madras Labor Union formed.
1920 All India Trade Union Congress (AITUC) formed.
1926 Introduction of the Trade Unions Act that provided a
legal framework for unions.
1947 The Indian National Trade Union Congress (INTUC)
break-away faction from AITUC formed.
1948 Formation of the Hindustan Mazdoor Sabha (HMS).
1975 Emergency imposed.
1976 ID Act, 1947 amended.
1980s Mumbai Textile strike.
1992 New phase of economic reforms.

15–4
Why Do Workers Organize?
• Solidarity
 To get their fair share.
Improved wages, hours, working conditions, and
benefits
 To protect themselves from management whims.
• Conditions Favoring Employee Organization
 Low morale
 Fear of job loss
 Arbitrary management actions

15–5
What Do Unions Want?
Union
Security
Improved wages,
hours, working
conditions, and
benefits
Aims of
Unions

15–6
Trade Union Registration and Recognition in
India
• The Trade Unions Act, 1926 provides for
registration of trade unions
 The act is silent about recognition of the trade union
by the firm for collective bargaining rights.
 Some state governments have introduced legislation.
• Methods adopted to recognize unions as
representative of workers
 Secret ballot method
 Membership verification conducted by government
machinery
 Check-off system

15–7
Rules Regarding Literature and Solicitation
1. Nonemployees can be barred from soliciting
employees during their work time.
2. Employees can be stopped from soliciting other
employees if one or both employees are on paid-duty
time and not on a break.
3. Employers can bar nonemployees from the building’s
interiors and work areas as a right of private property
owners.
4. On- or off-duty employees can be denied access to
interior or exterior areas for reasons of production,
safety, or discipline.

15–8
The Collective Bargaining Process
• What Is Collective Bargaining?
 Both management and labor are required by law to
negotiate wages, hours, and terms and conditions of
employment “in good faith.”
• What Is Good Faith Bargaining?
 Both parties communicate and negotiate.
 They match proposals with counterproposals in a
reasonable effort to arrive at an agreement.
 Neither party can compel the other to agree to a
proposal or to make any specific concessions.

15–9
Violations of Good Faith Bargaining
1. Surface bargaining
2. Inadequate concessions
3. Inadequate proposals and demands
4. Dilatory tactics
5. Imposing conditions
6. Making unilateral changes in conditions
7. Bypassing the representative
8. Committing unfair labor practices during negotiations
9. Withholding information
10. Ignoring bargaining items

15–10
Preparing for Negotiations
• Sources of Negotiating Information
 Local and industry pay and benefits comparisons
 Distribution of demographics of the workforce
 Benefit costs, overall earnings levels, and the
amount and cost of overtime
 Cost of the current labor contract and the increased
cost—total, per employee, and per hour—of the
union’s demands
 Grievances and feedback from supervisors
 Attitude surveys of employees
 Informal conferences with local union leaders

15–11
Bargaining Stages
1. Presentation of initial demands
 Both parties are usually quite far apart on some issues.
2. Reduction of demands
 Each side trades off some of its demands to gain others.
3. Subcommittee studies
 The parties form joint subcommittees to try to work out
reasonable alternatives.
4. An informal settlement
 Each group goes back to its sponsor. Union members vote to
ratify the agreement.
5. Signing the formal agreement

15–12
Bargaining Hints
1. Set clear objectives for bargaining items.
2. Do not hurry.
3. When in doubt, caucus with your associates.
4. Be prepared with data supporting your position.
5. Always strive to keep flexibility in your position.
6. Don’t be concerned with what the other party says and
does; find out why.
7. Respect face saving for the other party.
8. Be alert to the real intentions of the other party—not
only for goals, but also for priorities.
9. Be a good listener.

15–13
Bargaining Hints (continued)
10. Build a reputation for being fair but firm.
11. Control emotions and use them as a tool.
12. Know each bargaining move’s relationship to all other
moves.
13. Measure each move against your objectives.
14. Pay attention to the wording of every clause; they are
often a source of grievances.
15. Collective bargaining is a compromise process—there
is no such thing as having all the pie.
16. Try to understand people and their personalities.
17. Consider the impact of present negotiations on those
in future years.

15–14
Impasses, Mediation, and Strikes
• An Impasse
 Usually occurs because one party is demanding
more than the other will offer.
 Sometimes an impasse can be resolved through
a third party—a disinterested person such as a
mediator or arbitrator.
 If the impasse is not resolved:
The union may call a work stoppage, or strike, to
put pressure on management.
Management may lock out employees.

15–15
Third-Party Involvement
• Mediation
 A neutral third party (mediator) tries to assist the
principals in reaching an agreement by holding
meetings with each party to find common ground for
further bargaining.
 The mediator is a go-between and has no authority
to dictate terms or make concessions.
 The mediator communicates assessments of the
likelihood of a strike, the possible settlement
packages available, and the like.

15–16
Third-Party Involvement (continued)
• Fact Finder
 A neutral party who studies the issues in a dispute
and makes a public recommendation for a
reasonable settlement.
• Arbitration
 An arbitrator often has the power to determine and
dictate the settlement terms.
 Arbitration can guarantee a solution to an impasse.
Interest arbitration
Rights arbitration

15–17
Strikes
Economic Strike
Unfair Labor Practice
Strike
Wildcat Strike
Sympathy Strike
Types of Strikes

15–18
Other Alternatives: Pressure Tactics
• Unions
 Picketing
 Corporate campaign
 Boycott
 Inside games
• Employers
 Lockouts
 Injunctions

15–19
Grievances
• Grievance
 Any factor involving
wages, hours, or
conditions of employment
that is used as a complaint
against the employer.
• Sources of Grievances
 Discipline
 Seniority
 Job evaluations
 Work assignments
 Overtime
 Vacations
 Incentive plans
 Holiday pay
 Problem employees

15–20
Grievance Procedure
• Grievant and shop steward meet with
supervisor. If not resolved,
• Employee files formal grievance
• Grievant and shop steward meet with
supervisor’s boss. If not resolved,
• Meeting with higher-level managers.
• If not resolved, matter goes to arbitration.

15–21
Handling Grievances: Do
• Investigate and handle each case as though it may eventually
result in arbitration.
• Talk with the employee about his or her grievance; give the
person a full hearing.
• Require the union to identify specific contractual provisions
allegedly violated.
• Comply with the contractual time limits for handling the grievance.
• Visit the work area of the grievance.
• Determine whether there were any witnesses.
• Examine the grievant’s personnel record.
• Fully examine prior grievance records.
• Treat the union representative as your equal.
• Hold your grievance discussions privately.
• Fully inform your own supervisor of grievance matters.

15–22
Handling Grievances: Don’t
• Discuss the case with the union steward alone—the grievant should be
there.
• Make arrangements with individual employees that are inconsistent with
the labor agreement.
• Hold back the remedy if the company is wrong.
• Admit to the binding effect of a past practice.
• Relinquish to the union your rights as a manager.
• Settle grievances on what is “fair.” Stick to the labor agreement.
• Bargain over items not covered by the contract.
• Treat as subject to arbitration claims demanding discipline or discharge
of managers.
• Give long written grievance answers.
• Trade a grievance settlement for a grievance withdrawal.
• Deny grievances because “your hands are tied by management.”
• Agree to informal amendments in the contract.

15–23
The Union Movement Today and Tomorrow
• Declining membership
 Automation, globalization, and technology have
reduced jobs in unionized manufacturing sectors.
 Unions have failed to organize new plants.
 Unions have been more successful in organizing
workers in the public sector.
 Management has become better at resisting union
organizing efforts.

15–24
K E Y T E R M S
closed shop
union shop
agency shop
open shop
right to work
Norris-LaGuardia Act (1932)
National Labor Relations (or Wagner) Act
National Labor Relations Board (NLRB)
Taft-Hartley Act (1947)
national emergency strikes
Landrum-Griffin Act (1959)
union salting
authorization cards
bargaining unit
decertification
collective bargaining
good faith bargaining
voluntary bargaining items
illegal bargaining items
mandatory bargaining items
impasse
mediation
fact finder
arbitration
strike
economic strike
unfair labor practice strike
wildcat strike
sympathy strike
picketing
corporate campaign
boycott
inside games
lockout
injunction
grievance

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