Labor Relations

1
Labor Relations

• Chapter 14
• December 8, 2004

2
Major Labor Laws

• Railway Labor Act (RLA) of 1926
• Norris LaGuardia Act (Anti-Injunction Act)
• Wagner Act (National Labor Relations Act) of 1935
• Taft-Harley Act (Labor-Management Relations Act)
  of 1947
• Landrum-Griffin Act (Labor-Management Disclosure
  Act) of 1959

3
Government Regulation of Labor Relations

• The Railway Labor Act (RLA) of 1926
• Purpose of the act is to avoid service
  interruptions resulting from disputes between
  railroads and their operating unions.
• National Mediation Board
• National Railway Adjustment Board
• The Norris-LaGuardia Act of 1932
• Restricts the ability of employers to obtain an
  injunction against unions for their lawful
  activities.

4
Government Regulation of Labor Relations

• The Wagner Act (National Labor Relations Act) of
  1935
• Protects employee rights to organize and bargain
  collectively through representatives of their
  choice.
• Created the National Labor Relations Board (NLRB)
  to govern labor relations in the United States.
• Holds secret ballot union representation
  elections.
• Prevents and remedies unfair labor practices.

5
Wagner Act

• Section 7 of the Act guarantees these rights
• To self-organization, to form, join, or assist
  labor organizations, to bargain collectively
  through freely chosen representatives.
• To engage in concerted activities, for the
  purpose of collective bargaining or other mutual
  aid or protection.
• To refrain from any or all of such activities
  except to the extent that such right may be
  affected by an agreement requiring membership in
  a labor organization as a condition of employment.

6
Unfair Labor Practices (ULPs)

• Section 8 of the Wagner Act outlawed employer
  practices that deny employees their rights and
  benefits
• Interference with Section 7 rights
• Domination of a union (company union)
• Discrimination against union members
• Arbitrary discharge of union members
• Refusal to bargain with the union

7
Amendments to the Wagner Act

• The Taft-Hartley Act (The Labor-Management
  Relations Act) of 1947
• Balances the rights and duties of labor and
  management in the collective bargaining arena by
  defining unfair union practices.
• The Landrum-Griffin Act (Labor-Management
  Reporting and Disclosure Act) of 1959
• Safeguards union member rights and prevents
  racketeering and other unscrupulous practices by
  employers and union officers.

8
Unfair Union Practices

• Interfering with representation elections
• Influencing employers to discriminate with regard
  to union membership
• Refusal to bargain collectively with employer
• Interference with certified employee
  representatives relationship with employer
• Assessment of excessive initiation fees and dues
  on bargaining unit members
• Featherbedding

9
Labor Relations Process

• Workers desire collective representation
• Union begins its organizing campaign
• Collective negotiations lead to a contract
• The contract is administered

10
The Labor RelationsProcess
Figure 14.1
11
Why Employees Unionize

• As a result of economic needs (wages and
  benefits)
• Dissatisfaction with managerial practices
• To fulfill social and status needs.
• Unionism is viewed as a way to achieve results
  they cannot achieve acting individually
• To comply with union-shop provisions of the labor
  agreement in effect where they work

12
Employer Tactics Opposing Unionization

• Stressing favorable employer-employee
  relationship experienced without a union.
• Emphasize current advantages in wages, benefits,
  or working conditions the employees may enjoy
• Emphasize unfavorable aspects of unionism
  strikes, union dues, abuses of legal rights
• Use statistics to show that unions commit large
  numbers of unfair labor practices.
• Initiate legal action when union members and
  leaders engage in unfair labor practices

13
How Employees Become Unionized

• Bargaining Unit
• A group of two or more employees who share common
  employment interests and conditions and may
  reasonably be grouped together for purposes of
  collective bargaining.
• Exclusive Representation
• The legal right and responsibility of the union
  to represent all bargaining unit members equally,
  regardless of whether employees join the union or
  not.

14
The Labor Organization Process
Workers Seek Collective Representation
Union Begins The Organizing Process
Labor
Management
Representation Election is Held
Collective Bargaining For A Contract
Contract Administration
15
Impact of Unionization on Managers

• Challenges to Management Prerogatives
• Management prerogatives versus union
  participation in decision-making in the work
  place.
• Loss of Supervisory Authority
• Constraints on management in directing and
  disciplining the work force by terms of the
  collective bargaining agreement.

16
Union Structure and Governance

• Craft Unions
• Industrial Unions
• Employee Associations
• AFL-CIO
• National Unions
• Local Unions

Presentation Slide 144
17
Types of Unions

• Craft unions
• Unions that represent skilled craft workers
• Industrial unions
• Unions that represent all workersskilled,
  semiskilled, unskilledemployed along industry
  lines
• Employee associations
• Labor organizations that represent various groups
  of professional and white-collar employees in
  labor-management relations.

18
Typical Organization of a Local Union
Local Union Meeting (Normally Monthly)
Business Representative
President
Secretary/Treasurer
Sergeant at Arms
Vice-Presidents
Various Committee Chairpersons
Training and Education
Grievance CommitteeChief Steward and Shop
Stewards
Collective Bargaining
Social
Local Union Members
19
Structure and Functions of Local Unions

• Local Officers
• Elected officials who lead the union and serve on
  the bargaining committee for a new contract.
• Union Steward
• An employee, as a nonpaid union official,
  represents the interests of members in their
  relations with management.
• Business Unionism
• The term applied to the goals of U.S. labor
  organizations, which collectively bargain wages,
  hours, job security, and working conditions.

20
Types of Arbitration

• Compulsory Binding Arbitration
• A process for employees such as police officers,
  firefighters, and others in jobs where strikes
  cannot be tolerated to reach agreement.
• Final-offer Arbitration
• The arbitrator must select one or the other of
  the final offers submitted by the disputing
  parties with the award is likely to go to the
  party whose final bargaining offer has moved the
  closest toward a reasonable settlement.

21
The Collective Bargaining Process

• PREPARE FOR NEGOTIATIONS-------------------------
  -----
• Gather data
• Form bargaining terms

• DEVELOP STRATEGIES------------------------------
  
• Develop management proposals and limits of
  concessions
• Consider opponents goals
• Make strike plans

2
1

• CONDUCT NEGOTIATIONS----------------------------
  ----
• Bargain in good faith
• Analyze proposals
• Resolve proposals
• Stay within bargaining zone

• FORMALIZE
• AGREEMENT------------------------------
• Clarify contract language
• Ratify agreement

4
3
Strikes
Legal requirements
Lockouts
Strike replacements
Boycotts
Figure 14.2
Presentation Slide 147
22
The Bargaining Process

• Collective Bargaining Process
• The process of negotiating a labor agreement,
  including the use of economic pressures by both
  parties.
• Bargaining Zone
• Area within which the union and the employer are
  willing to concede when bargaining.
• Interest-based Bargaining
• Problem-solving bargaining based on a win-win
  philosophy and the development of a positive
  long-term relationship.

23
Items In A Labor Agreement

• Wages
• Vacations
• Holidays
• Work schedules
• Management rights
• Union security
• Transfers
• Discipline

• Grievance procedures
• No strike/no lockout clause
• Overtime
• Safety procedures
• Severance pay
• Seniority
• Pensions and benefits
• Outsourcing

24
Items In A Labor Agreement (contd)

• Progressive clauses will cover
• Employee access to records
• Limitations on use of performance evaluation
• Elder care leave
• Flexible medical spending accounts
• Protection against hazards of technology
  equipment (VDTs)
• Limitations against electronic monitoring
• Procedures governing drug testing
• Bilingual stipends
• Domestic partnership benefits

25
Management and Union Power in Collective
Bargaining

• Bargaining Power
• The power of labor and management to achieve
  their goals through economic, social, or
  political influence.
• Union Bargaining Power
• Strikes, pickets, and boycotts
• Management Bargaining Power
• Hiring replacement workers
• Continuing operations staffed by management
• Locking out employees

26
Union Power in Collective Bargaining
Boycott Our Employer This Union On Strike
27
Employer Power in Collective Bargaining
Management methods for applying economic pressure
during bargaining
Outsourcing normal work
Locking out workers
Hiring replacement workers
Demanding concessions
28
Union Security Agreements

• Dues Checkoff
• Gives the employer the responsibility of
  withholding union dues from the paychecks of
  union members who agree to such a deduction.
• Shop Agreements
• Require employees to join or support the union.
• Union shop requires employee membership.
• Agency shop allows voluntary membership employee
  must pay union dues and fees.

29
Grievance Arbitration

• Rights Arbitration
• Arbitration over interpretation of the meaning of
  contract terms or employee work grievances.
• Fair Representation Doctrine
• The doctrine under which unions have a legal
  obligation to provide assistance to both members
  and nonmembers in labor relations matters.

30
Current Challenges to Unions
Important issues confronting unions
Foreign competition and technological change
The long-term decrease in union membership
Employers focus on maintaining nonunion status