Chapter 17 Union/Management Relations

Copyright © 2005 Thomson Business & Professional Publishing.
All rights reserved.
ROBERT L. MATHIS
JOHN H. JACKSON
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Union/ManagemenUnion/Managemen
tt
RelationsRelations
Chapter 17Chapter 17
SECTION 5SECTION 5
EmployeeEmployee
RelationsRelations

Copyright © 2005 Thomson Business & Professional 17–2
Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives
• After you have read this chapter, you should be able to:
 Describe what a union is and explain why employees join
unions.
 Identify several reasons for the decline in union membership.
 Explain the acts that compose the National Labor Code.
 Discuss the stages of the unionization process.
 Describe the typical collective bargaining process.
 Define grievance and explain why a grievance procedure is
important for employers.

Nature of UnionsNature of UnionsNature of UnionsNature of Unions
• Union
A formal association of workers that promotes the
interests of its members through collective action.
• Why Employees Unionize
They are dissatisfied with how they are treated by
their employers.
They believe that unions can improve their work
situations.

Factors Leading to Employee UnionizationFactors Leading to Employee UnionizationFactors Leading to Employee UnionizationFactors Leading to Employee Unionization
Figure 17–1

Typical Division of HR Responsibilities:Typical Division of HR Responsibilities:
Labor RelationsLabor Relations
Labor RelationsLabor Relations
Figure 17–2

Global Labor Union IssuesGlobal Labor Union IssuesGlobal Labor Union IssuesGlobal Labor Union Issues
• Union membership is falling in advanced
countries.
• High unemployment is creating pressure for
change.
• Child labor is an issue in some countries.
• Co-determination
A practice whereby union or worker representatives
are given positions on a company’s board of directors.

Union Membership as a Percentage of the WorkforceUnion Membership as a Percentage of the Workforce
for Selected Countriesfor Selected Countries
Union Membership as a Percentage of the WorkforceUnion Membership as a Percentage of the Workforce
for Selected Countriesfor Selected Countries
Figure 17–3

Unions in the U.S.Unions in the U.S.Unions in the U.S.Unions in the U.S.
• Union Movement Emphases:
Focused on “bread-and-butter” economic issues—
wages, benefits, job security, and working conditions.
Organized by kind of job and employer.
Seek multi-year collective agreements on economic
issues as “contracts.”
Maintain competitive relations
with management.

Union StructureUnion StructureUnion StructureUnion Structure
• Craft Union
A union whose members do one type of work, often
using specialized skills and training.
• Industrial Union
A union that includes many persons working in the
same industry or company regardless of jobs held.
• Federation
A group of autonomous national and international
unions.

Union Structure (cont’d)Union Structure (cont’d)Union Structure (cont’d)Union Structure (cont’d)
• Local Union
A union centered around either a particular employer
or a particular geographic location.
• Business Agent
A full-time union official who operates the union office
and assists union members.
• Union Stewart
An employee elected to serve as the first-line
representative of unionized employees.

Union Membership as a Percentage of the U.S. WorkforceUnion Membership as a Percentage of the U.S. WorkforceUnion Membership as a Percentage of the U.S. WorkforceUnion Membership as a Percentage of the U.S. Workforce
Figure 17–4Source: U.S. Department of Labor, Bureau of Labor Statistics. 2004.

Union Membership by IndustryUnion Membership by IndustryUnion Membership by IndustryUnion Membership by Industry
Figure 17–5Source: U.S. Department of Labor, Bureau of Labor Statistics. 2004.

Reasons for Union Decline in the U.S.Reasons for Union Decline in the U.S.Reasons for Union Decline in the U.S.Reasons for Union Decline in the U.S.
Industrial ChangesIndustrial ChangesIndustrial ChangesIndustrial Changes
Geographic ChangesGeographic ChangesGeographic ChangesGeographic Changes Workforce ChangesWorkforce ChangesWorkforce ChangesWorkforce Changes
DecliningDeclining
UnionUnion
MembershipMembership
DecliningDeclining
UnionUnion
MembershipMembership

Union Targets for Membership GrowthUnion Targets for Membership GrowthUnion Targets for Membership GrowthUnion Targets for Membership Growth
ProfessionalProfessional
WorkersWorkers
ProfessionalProfessional
WorkersWorkers
Contingent andContingent and
Part-Time WorkersPart-Time Workers
Contingent andContingent and
Part-Time WorkersPart-Time Workers
Low-SkillLow-Skill
WorkersWorkers
Low-SkillLow-Skill
WorkersWorkers
UnionUnion
OrganizingOrganizing
UnionUnion
OrganizingOrganizing

The History of American UnionsThe History of American UnionsThe History of American UnionsThe History of American Unions
• 1794 Shoemakers’ strike
• 1806 Shoemakers’ strike (“criminal conspiracy”)
• 1886 American Federation of Labor (AFL)
• 1938 Congress of Industrial Organizations CIO
• 1926 Railway Labor Act
• 1935 National Labor Relations Act (Wagner Act)
• 1932 Norris-LaGuardia Act
• 1947 Taft-Hartley Act
• 1957 AFL-CIO merger
• 1959 Landrum-Griffin Act
• 1978 Civil Service Reform Act

National Labor CodeNational Labor CodeNational Labor CodeNational Labor Code
Figure 17–6

Right-to-Work StatesRight-to-Work StatesRight-to-Work StatesRight-to-Work States
Figure 17–7

Typical Unionization ProcessTypical Unionization ProcessTypical Unionization ProcessTypical Unionization Process
Figure 17–8

Legal Do’s and Don’ts for Managers During the UnionizationLegal Do’s and Don’ts for Managers During the UnionizationLegal Do’s and Don’ts for Managers During the UnionizationLegal Do’s and Don’ts for Managers During the Unionization
Figure 17–9

Unfair Labor Practices: EmployerUnfair Labor Practices: EmployerUnfair Labor Practices: EmployerUnfair Labor Practices: Employer
• Interfering with the organizing and collective
bargaining rights of employees.
• Dominating or interfering with any labor
organization.
• Encouraging or discouraging membership in a
particular union.
• Discharging persons for organizing activities or
union membership.
• Refusing to bargain collectively.

Labor Relations: Key TermsLabor Relations: Key TermsLabor Relations: Key TermsLabor Relations: Key Terms
• Right-to-Work Laws
 State laws that prohibit contracts requiring employees to join unions as
a condition of obtaining or continuing employment.
• Closed Shop (outlawed)
 A firm that requires individuals to join a union before they can be hired.
• Union Shop
 A clause in a collective bargaining agreement that requires new
employees to join the union, usually 30 to 60 days after being hired, or
be fired.
• Agency Shop
 Requires employees who do not join the union to pay fees for the
union’s representation services.
• Maintenance-of-membership
 Requiring workers to remain members of the union for the period of the
labor contract.

Unionization: Key TermsUnionization: Key TermsUnionization: Key TermsUnionization: Key Terms
• Salting
 The practice in which unions hire and pay people to apply for jobs at
certain companies.
• Union Authorization Card
 A card signed by an employee to designate a union as his or her
collective bargaining agent.
• Bargaining Unit
 Employees eligible to select a single union to represent and bargain
collectively for them.
• Certification
 The NLRB’s grant of the union’s legal status as the employees’
representative.
• Decertification
 The process whereby a union is removed as the representative of a
group of employees.

Bargaining UnitsBargaining UnitsBargaining UnitsBargaining Units
• “Community of Interest”
Wages, hours, and working conditions
Traditional industry groupings for bargaining purposes
Physical location and amount of interaction and
working relationships among employee groups
Supervision by similar levels of management
• Supervisors and Bargaining Units
Supervisors are excluded from bargaining units.
 Defined as any individual with the authority to hire, transfer,
discharge, discipline, and who uses independent judgment
with employees.

Collective Bargaining IssuesCollective Bargaining IssuesCollective Bargaining IssuesCollective Bargaining Issues
• Collective Bargaining
 The process whereby representatives of management and
workers negotiate a labor agreement covering wages, hours,
and other terms and conditions of employment.
• Management Rights
 Those rights reserved to the employer to manage, direct, and
control the workplace.
• Union Security Provisions
 Contract provisions that aid the union in obtaining and retaining
members.
• Dues Checkoff Provision
 A contract provision for the automatic deduction of union dues
from the paychecks of union members.

Continuum of Collective Bargaining RelationsContinuum of Collective Bargaining RelationsContinuum of Collective Bargaining RelationsContinuum of Collective Bargaining Relations
Figure 17–10

Mandatory Bargaining IssuesMandatory Bargaining IssuesMandatory Bargaining IssuesMandatory Bargaining Issues
• Issues identified
specifically by
labor laws or court
decisions as
subject to
bargaining.
• Discharge of employees
• Grievances
• Work schedules
• Union security and dues checkoff
• Retirement and pension coverage
• Vacations
• Christmas bonuses
• Rest- and lunch-break rules
• Safety Rules
• Profit-sharing plans
• Required physical exam

Classification of Bargaining IssuesClassification of Bargaining IssuesClassification of Bargaining IssuesClassification of Bargaining Issues
• Permissive Issues
Collective bargaining issues that are not mandatory
but relate to certain jobs.
 Benefits for retired employees
 Product prices (e.g., employee discounts) for employees
 Performance bonds
• Illegal Issues
Collective bargaining issues that would require either
party to take an illegal action (e.g., discriminate in
hiring).

The Bargaining ProcessThe Bargaining ProcessThe Bargaining ProcessThe Bargaining Process
Preparation and InitialPreparation and Initial
DemandsDemands
Preparation and InitialPreparation and Initial
DemandsDemands
ContinuingContinuing
NegotiationsNegotiations
in Good Faithin Good Faith
ContinuingContinuing
NegotiationsNegotiations
in Good Faithin Good Faith
Settlement andSettlement and
Contract AgreementContract Agreement
RatificationRatification
Settlement andSettlement and
Contract AgreementContract Agreement
RatificationRatification
Strikes andStrikes and
LockoutsLockouts
Strikes andStrikes and
LockoutsLockouts
BargainingBargaining
ImpasseImpasse
ConciliationConciliation
MediationMediation
ArbitrationArbitration
BargainingBargaining
ImpasseImpasse
ConciliationConciliation
MediationMediation
ArbitrationArbitration

Bargaining ImpasseBargaining ImpasseBargaining ImpasseBargaining Impasse
• Conciliation
A process by which a third party attempts to keep
union and management negotiators talking so that
they can reach a voluntary settlement.
• Mediation
A process by which a third party helps the negotiators
reach a settlement.
• Arbitration
A process that uses a neutral third party to make a
decision.

Typical Items in a Labor AgreementTypical Items in a Labor AgreementTypical Items in a Labor AgreementTypical Items in a Labor Agreement
Figure 17–11

Strikes and LockoutsStrikes and Lockouts
• Strike
A work stoppage in which union members refuse to
work in order to put pressure on an employer.
• Lockout
Shutdown of company operations undertaken by
management to prevent union members from
working.
• Striker Replacements

Types of StrikesTypes of StrikesTypes of StrikesTypes of Strikes
• Economic Strikes
 Strikes over economic issues (e.g., wages)
• Unfair labor practice strikes
 Strikes over illegal employer actions (e.g., refusal to bargain)
• Wildcat strikes
 Strikes not approved by the union
• Jurisdictional strikes
 Strikes in dispute over the ownership of work
• Sympathy strikes
 Expressions of support for other unions

Union-Management Cooperation IssuesUnion-Management Cooperation IssuesUnion-Management Cooperation IssuesUnion-Management Cooperation Issues
Employee OwnershipEmployee Ownership
(ESOPs)(ESOPs)
Employee OwnershipEmployee Ownership
(ESOPs)(ESOPs)
Cooperation andCooperation and
Joint EffortsJoint Efforts
Cooperation andCooperation and
Joint EffortsJoint Efforts
EmployeeEmployee
Involvement (Teams)Involvement (Teams)
EmployeeEmployee
Involvement (Teams)Involvement (Teams)
Union-Union-
ManagementManagement
CooperationCooperation
Union-Union-
ManagementManagement
CooperationCooperation

Grievance ManagementGrievance ManagementGrievance ManagementGrievance Management
• Complaint
Indication of employee dissatisfaction
• Grievance
A complaint formally stated in writing
• Grievance Procedures
Formal channels used to resolve grievances.
Union representation (Weingarten) rights
• Grievance Arbitration
Means by which a third party settles disputes arising
from different interpretations of a labor contract.

Grievance ManagementGrievance Management
Grievance ManagementGrievance Management
Figure 17–12

Steps in a Typical Grievance ProcedureSteps in a Typical Grievance ProcedureSteps in a Typical Grievance ProcedureSteps in a Typical Grievance Procedure
Figure 17–13

Chapter 17 Union/Management Relations

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