UNDERSTANDING UNIONS

1
UNDERSTANDING UNIONS

• Union Organizing Campaigns
• and Collective Bargaining

2
Chapter 18 Overview

• Union Membership Decision
• Union Organizing Campaign
• Good-Faith Bargaining
• Participants in Negotiations
• Collective Bargaining Agreements
• Specific Issues in Collective Bargaining
  Agreements
• Impasses in Collective Bargaining
• Trends in Collective Bargaining

3
Chapter Outline

• The Strategic Importance of Unionization and
  Collective Bargaining
• The Historical Context and Unions Today
• The Organizing Campaign
• The Collective Bargaining Process
• Negotiating the Agreement
• Conflict Resolution
• Contract Administration
• Assessment of Collective Bargaining

4
The HR Triad Extended

• Line Managers
• Know and appreciate historical context and
  current contract
• Understand why employees join unions
• Support HR efforts for good working conditions
• Manage with respect and equality
• Know what can and cannot be said during an
  organizing campaign
• Develop effective relationships with union
  representatives
• Participate in resolving grievances

• HR Professionals
• Train line managers in unionization rights of
  employees
• Develop policies and programs that support good
  working conditions
• Survey employee attitudes
• Work with line managers to deal effectively with
  union representatives
• Develop mechanisms for effective grievance
  resolution
• Move along issues such as TQM and QWL
• Work with managers in the grievance process

Source Susan Jackson Randall Schuler Managing
Human Resources
5
The HR Triad Extended (Continued)

• Employees
• Present views about working conditions, wages,
  hours to HR and line managers
• Bargain in good faith
• Fulfill rights and responsibilities in union
  contract
• Use mechanisms for grievances as appropriate
• Be aware of issues management and labor leaders
  are discussing
• Stay involved in grievance process as appropriate

• Unions
• Seek to represent employees views to company
• Offer to work with management to improve company
  profitability and survival
• Bargain with line managers and HR
• Seek improvements in conditions and wages
• Adapt to local conditions and changes in
  technology and the economy
• Ensure grievances are processed fairly

Source Susan Jackson Randall Schuler Managing
Human Resources
6
Strategic Importance of Unionization

• Unionization
• Efforts by employees and outside agencies
  (unions) to act as a single unit when dealing
  with management over issues related to their work
• Conditions for union formation
• Dissatisfaction
• Lack of power
• Union instrumentality

Source Susan Jackson Randall Schuler Managing
Human Resources
7
Unionization and Collective Bargaining within an
Integrated HR System

• HR Activities
• Recruitment, Retention
• Total Compensation
• Training
• Safety and Health

• Collective
• Bargaining
• Process
• Negotiating
• Conflict Resolution
• Contract Administration

Management Efforts

• Attraction to Unionization
• Decision to join
• Decision Not to Join

Union Certification
Global Environment
Organizational Environment
Union Efforts
Source Susan Jackson Randall Schuler Managing
Human Resources
8
Collective Bargaining

• Negotiation of the contract that is basis for
  employee-employer relationships
• Contract administration, including interpretation
  and enforcement of the contract and resolution of
  conflicts

Source Susan Jackson Randall Schuler Managing
Human Resources
9
Process of Union Organizing
Individual personality, interests, and preferences

• Expectations for work
• Employment contract
• Psychological contract

Influence of management
Work Situation
Satisfaction
Dissatisfaction with work situations
Attempt to resolve situation individually
Union Instrumentality
Unionization
Source Susan Jackson Randall Schuler Managing
Human Resources
10
Historical Context Unions Today

• The Early Days
• Craft unions
• Successful strikes for wages
• Susceptibility to Depressions
• Today
• Membership decline
• Increasing diversification in membership

Source Susan Jackson Randall Schuler Managing
Human Resources
11
Structure of American Unions
AFL-CIO (American Federation of Labor and
Congress of Industrial Organizations)
National Unions
National Unions
Local Unions
Local Unions
Business Representative Full-time employee to
handle grievances and contract negotiation
Steward Employee elected by work unit to act as
union representative
Source Susan Jackson Randall Schuler Managing
Human Resources
12
Organizing Campaign

• Union contact with employees
• Union campaign for authorization cards
• Request for election
• Determination of bargaining unit by NLRB
• Pre-election campaign
• Elections
• Certification of union / start of collective
  bargaining

Source Susan Jackson Randall Schuler Managing
Human Resources
13
Figure 18.1
Steps Involved in a Union Organizing Campaign

Source Lloyd L. Byars and Leslie W. Rue Human
Resource Management, 7/e
14
Unfair Labor Practices by Employers

• Misrepresenting the facts about union or its
  officers
• Threatening employees who support unionization
• Promise benefits or rewards
• for employees who
• oppose union activity

Source Susan Jackson Randall Schuler Managing
Human Resources
15
Unfair Labor Practices by Employers (Continued)

• Make unscheduled changes in wages, hours,
  benefits or working conditions
• Conduct surveillance activities
• Interrogate workers
• Prohibit solicitation

Source Susan Jackson Randall Schuler Managing
Human Resources
16
What Employers Can Discusswith Employees

• History and facts of unionization
• Own experiences with unions
• Costs of union membership and the benefits they
  receive without a union
• That union representation wont protect against
  discharge for cause
• That the company prefers to deal directly with
  employees

Source Susan Jackson Randall Schuler Managing
Human Resources
17
What Employers Can Discuss (Continued)

• That the company is not obligated to sign
  contract or accept all unions demands
• That unions often resort to work stoppages
• The companys legal
• right to hire
• replacements

Source Susan Jackson Randall Schuler Managing
Human Resources
18
Collective Bargaining Process
Adversarial Relationship
Cooperative Relationship
Source Susan Jackson Randall Schuler Managing
Human Resources
19
Processes of Bargaining

• Distributive bargaining
• Integrative bargaining
• Concessionary bargaining
• Continuous bargaining
• Intra-organizational bargaining

Source Susan Jackson Randall Schuler Managing
Human Resources
20
Distributive Bargaining Process
Union
Management
Initial Demand Point
Target Point
Resistance Point
Settlement Range
Resistance Point
Target Point
Initial Offer Point
Source Susan Jackson Randall Schuler Managing
Human Resources
21
Negotiating the Agreement
Negotiating Committees
Preparation for bargaining
Negotiating Structure
Issues for negotiation
Source Susan Jackson Randall Schuler Managing
Human Resources
22
Negotiating Structures

• Multiemployer and Industry-wide Bargaining
• A single union negotiates with several, similar
  companies
• Pattern Settlements
• Wide-area and Multi-craft Bargaining
• Done on regional basis (less opportunity for
  whipsawing)

Source Susan Jackson Randall Schuler Managing
Human Resources
23
Preparation for Bargaining

• Management Strategies
• Prepare specific proposals for change in the
  contract language
• Determine the general size of economic package
• Prepare statistical displays and data
• Prepare the bargaining book for use by
  negotiators

Source Susan Jackson Randall Schuler Managing
Human Resources
24
Preparation for Bargaining (Continued)

• Union Strategies
• Collect information on
• Financial situation of the company and its
  ability to pay
• Attitude of management on issues
• Attitudes and desires of employees

Source Susan Jackson Randall Schuler Managing
Human Resources
25
Issues for Negotiation

• Mandatory Issues
• Wages
• Hours
• Other terms and conditions of employment
• Permissive Issues (If parties agree)
• Price
• Product design
• New jobs

Source Susan Jackson Randall Schuler Managing
Human Resources
26
Issues for Negotiation (Continued)

• Prohibited Issues
• Illegal or outlawed activities such as a demand
  that the employer use only union-produced goods

Source Susan Jackson Randall Schuler Managing
Human Resources
27
Issues for Negotiation (Continued)

• Total Compensation
• Employee Benefits and Services
• Hours of Employment
• Institutional Issues
• Union security
• Check-off
• Strikes
• Managerial Prerogatives

Source Susan Jackson Randall Schuler Managing
Human Resources
28
Issues for Negotiation (Continued)

• Administrative Issues
• Breaks and cleanup time
• Job security
• Seniority
• Discharge/Discipline
• Safety and Health
• Production standards
• Grievance procedures
• Training
• Duration of the agreement

Source Susan Jackson Randall Schuler Managing
Human Resources
29
Collective Bargaining Issues in the Federal Sector

• Prohibited Issues
• Negotiation of wage rates
• Mission, budget, or organization of the agency
• Number of employees
• Internal security practices of the agency
• Hiring, assigning, directing, laying off, and
  retaining employees in the agency suspending,
  removing, reducing grade or pay or taking other
  disciplinary action against employees
• Assigning work, making determinations with
  respect to contracting work, and determining the
  personnel by which agency operations shall be
  conducted
• Filling vacant positions from properly ranked and
  certified candidates
• Taking whatever actions may be necessary to carry
  out the agency mission during emergencies

Source Lloyd L. Byars and Leslie W. Rue Human
Resource Management, 7/e
30
Collective Bargaining Issues in the Federal Sector

• Permitted Issues
• Numbers, types, and grades of employees or
  positions assigned to any organizational
  subdivision, work project, or tour of duty
• Technology, means, and methods of performing work
• Procedures used by the agency management to
  exercise its authority in carrying out duties
  that cannot be negotiated
• Arrangements for employees adversely affected by
  the exercise of managements authority in
  carrying out duties that cannot be negotiated

Source Lloyd L. Byars and Leslie W. Rue Human
Resource Management, 7/e
31
Factors Affecting Bargaining

• Mythical Fixed Pie
• Trade-offs between issues of different value to
  each side often should be explored
• Framing
• Negotiators can reframe situation in terms of
  gains rather than
• losses

Source Susan Jackson Randall Schuler Managing
Human Resources
32
Conflict Resolution Possibilities

• Strikes and lockouts
• Slowdowns
• Primary
• Boycotts
• Mediation
• Arbitration

Source Susan Jackson Randall Schuler Managing
Human Resources
33
Strikes

• Usually follows voting by membership to strike
• Union members commonly refuse to cross picket
  line of another striking union
• Employers can try to continue operations and can
  legally hire replacements
• Success depends on ability to cause economic
  hardship

Source Susan Jackson Randall Schuler Managing
Human Resources
34
Conflict Resolution

• Mediators
• A neutral third party who cannot impose a
  solution
• Facilitates negotiations between union and
  management
• May use attitudinal structuring
• Must have trust of both parties
• Federal Mediation and
• Conciliation Service
• provides mediators

Source Susan Jackson Randall Schuler Managing
Human Resources
35
Conflict Resolution (Continued)

• Arbitration
• Neutral third party whose determination is
  binding on the disputing parties
• Final-offer arbitration
• Arbitrators must chose between final offer of
  each party
• Interest arbitration
• Deals with contract terms and conditions
• More common in public sector

Source Susan Jackson Randall Schuler Managing
Human Resources
36
Contract Administration

• Grievance procedures
• Grievance issues
• Management procedures
• Union procedures

Source Susan Jackson Randall Schuler Managing
Human Resources
37
Sources of Grievances

• Outright violation of contract
• Disagreement over
• Facts
• Meaning of agreement
• Method of applying agreement
• Fairness or reasonableness of actions

Source Susan Jackson Randall Schuler Managing
Human Resources
38
Steps in Grievance Procedure
Go to arbitration
Meet with union executivesand top management
Meet with management(Industrial Relations)
Meet with supervisorEmployee contacts steward
Source Susan Jackson Randall Schuler Managing
Human Resources
39
Grievance Issues

• Discipline and discharge are most common issues
  reaching arbitration
• Other issues
• Calculation of seniority
• Compensation for
• Time away from work
• Vacations, holidays
• Sick leave
• Wage and work schedules

Source Susan Jackson Randall Schuler Managing
Human Resources
40
Defensible Disciplinary Procedures

• Employee adequately warned of consequences
• Rule is related to company operation
• Thorough investigation is undertaken
• Penalty is reasonable
• Just cause and fairness characterize decisions

Source Susan Jackson Randall Schuler Managing
Human Resources
41
Unfair Representation by Union

• Improper motives
• Union refuses to process grievance because of
  race, gender, or employees attitude toward union
• Arbitrary conduct
• Not investigating merit of grievance
• Gross negligence
• Reckless disregard of employees interests
• Union conduct after filing grievance
• Must process to reasonable conclusion

Source Susan Jackson Randall Schuler Managing
Human Resources
42
Assessment of Collective Bargaining

• Effectiveness of negotiations
• Duration of negotiations
• Outcome of member ratification votes
• Frequency and duration of strikes
• Use of mediation and arbitration
• Need for government intervention
• Quality of union-management relations

Source Susan Jackson Randall Schuler Managing
Human Resources
43
Assessment of Collective Bargaining

• Effectiveness of grievance procedures
• Frequency of grievances
• Level at which grievances settled
• Frequency of strikes or slowdowns
• Rates of
• Absenteeism
• Turnover
• Sabotage
• Necessity for government intervention

Source Susan Jackson Randall Schuler Managing
Human Resources
44
Assessment of Collective Bargaining

• Effectiveness of arbitration
• Acceptability of decisions
• Satisfaction of parties
• Degree of innovation
• Absence of bias
• Avoidance of strikes

Source Susan Jackson Randall Schuler Managing
Human Resources
45
Definitions of Typical Supplementary Pay Items

• Item
  Definition
• Shift differential pay Bonus paid for working
  less desirable hours of work
• Reporting pay Pay given to employees who report
  for work as scheduled but find on arrival that no
  work is available
• Call-in or call-back pay Pay earned when
  employees are called in or back to work at some
  time other than their regularly scheduled hours

Source Lloyd L. Byars and Leslie W. Rue Human
Resource Management, 7/e
46
Definitions of Typical Supplementary Pay Items

• Item
  Definition
• Temporary-transfer pay Pay given when employees
  are temporarily transferred to another job (if
  the transfer is to a lower-paying job, normally
  the employee continues to receive the old rate of
  pay if to a higher-paying job, the employee is
  usually paid the higher rate)
• Hazardous-duty pay Pay given for performing jobs,
  from a safety or health point of view, are
  considered to be riskier than usual
• Job-related expenses Covers travel expenses, work
  clothes, or tools required for the job

Source Lloyd L. Byars and Leslie W. Rue Human
Resource Management, 7/e
47
?
Questions