2. Chapter Objectives
• Explain labor management relations
and individual bargaining.
• Describe labor management relations
and collective bargaining.
• Explain the psychological aspects of
collective bargaining.
• Describe the factors involved in
preparing for negotiations.
• Explain typical bargaining issues.
3. Chapter Objectives (Continued)
• Describe the process of negotiating the
agreement.
• Identify ways to overcome breakdowns
in negotiations.
• Describe what is involved in ratifying
the agreement.
• Explain factors involved in
administering the agreement.
• Describe collective bargaining for
federal employees.
4. Labor Management Relations and
Individual Bargaining
• Worker
negotiating with
company
representative
• Negotiations still
on a power basis
5. Labor Management Relations and Individual
Bargaining (Continued)
• Seniority means little
• Concept of supply and demand
• Employment at will
6. Forms of Bargaining Structures
• One company dealing
with a single union
• Several companies
dealing with single
union
• Several unions dealing
with a single company
• Several companies
dealing with several
unions
7. Types of Union/Management Relationships
• Conflict
• Armed truce
• Power bargaining
• Accommodation
• Cooperation
• Collusion
8. Collective Bargaining Process
• Preparing for negotiation
• Bargaining issues
• Negotiation
• Negotiation breakdown
• Reaching the agreement
• Ratifying the agreement
• Administration of the agreement
9. Psychological Aspects of
Collective Bargaining
• Management and
union teams prepare
positions and
accomplish certain
tasks
• Psychological aspects
vitally important
10. Psychological Aspects of
Collective Bargaining (Continued)
• Difficult process because it is an
adversarial situation
• Situation fundamental to law,
politics, business, and government
12. Bargaining Issues
• Recognition
• Management Rights
• Union Security
• Compensation and Benefits
• Grievance Procedure
• Employee Security
13. Recognition
• Appears at the beginning of the
labor agreement
• Identify the union that is
recognized as the bargaining
representative
• Describe the bargaining unit
14. Management Rights
• Freedom to select
company business
objectives
• Determine uses to
which enterprise
material assets will
be devoted
• Power to discipline for
cause
15. Union Security
• Closed Shop - Arrangement whereby
union membership is a prerequisite.
(Illegal)
• Union Shop - Requires that all
employees become members of the
union after a specified period
• Maintenance of Membership - Must
continue their memberships until the
termination of the agreement
16. Union Security (Continued)
• Agency Shop - Each non-union member
of the bargaining unit pays the union
the equivalent of membership dues as a
kind of tax
• Exclusive Bargaining Shop - Company is
legally bound to deal with the union
that has achieved recognition, but
employees are not obligated to join
• Open Shop - Absence of union security
• Dues Check-off - Company agrees to
withhold union dues
17. Compensation and Benefits
• Wage rate schedule
• Overtime and premium
pay
• Jury pay
• Layoff or severance pay
• Holidays
• Vacation
• Family care
19. Negotiating the Agreement
• Begins with each side presenting
initial demands
• Suggests a certain amount of give
and take
• Each side does not expect to
obtain all demands presented
• Beachhead demands
20. Breakdowns in Negotiations
• Third-party intervention
• Sources of mediators
and arbitrators
• Union strategies for
overcoming breakdowns
• Management strategies
for overcoming
breakdowns
23. Management Strategies for Overcoming Negotiation
Breakdowns
• Lockout
• Operate firm by placing
management and nonunion
workers in striking workers’
jobs
• Hire replacement for strikers
24. Ratifying the Agreement
• Usually reach agreement
without severe breakdowns
in negotiations or
disruptive actions
• Usually reached before
current agreement expires
• Union members may reject
agreement, and new
negotiations must begin
25. Administration of the Agreement
• Larger and perhaps more
important part of collective
bargaining
• Seldom viewed by public
• Agreement establishes the
union-management relationship
for duration of the contract
26. Collective Bargaining for
Federal Employees
• Traditionally has
been quite
different from
private sector
bargaining
• Wages were off
the table
27. Collective Bargaining for
Federal Employees (Continued)
• NATCA succeeded in placing pay
issues on bargaining table
• Ability to bargain over pay is big
part of what made unions such as
NATCA, the Postal Service, and the
NTEU union so healthy
