Chapter 12 Understanding Unions and Their Impact on HRM

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Chapter 12Understanding Unions and Their Impact
on HRM
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HRM and Competitive Advantage
HR Planning Job Analysis
Recruitment Selection
Output Retention Legal Compliance Company Image
Competence Motivation Work Attitudes
Cost Leadership Product Differentiation
Training/Develop. Performance App. Compensation Pr
oductivity Imp.
Workplace Justice Unions Safety
Health International
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Linking Labor Relations Practices to Competitive
Advantage
Unionized Environment
Higher Productivity
Effective Labor Relations
Competitive Advantage
Lower Costs
Nonunion Environment
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Unions
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Unions Defined

• Labor organizations of any kind in which
  employees participate, and which exist for the
  purpose, in whole or in part, of dealing with
  employers concerning grievances, labor disputes,
  wages, rates of pay, hours of employment, or
  conditions of work

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How do Unions Affect Productivity?

• Unionized firms are more productive than
  nonunionized firms.

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Why is There Higher Productivity in Unionized
Firms?
Shock Effect
Unions make managers more alert to operations.
Unionized firms use more efficient, less
labor-intensive technology than nonunionized
firms.
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Union-Management Relations Moderate the Impact of
Unions on Productivity
Positive Union-Management Relations
Higher Firm Productivity
Negative Union-Management Relations
Lower Firm Productivity
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How do Unions Affect Firm Profitability?

• Unionized firms are typically not as profitable
  as nonunionized firms.

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Why are Unionized Firms Less Profitable than
Nonunionized Firms?

• Productivity gains rarely offset higher costs
  (e.g., higher salaries and more generous benefit
  plans).

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How do Unions Affect Job Satisfaction?

• Lower among unionized than nonunionized workers
• No differences between unionized and nonunionized
  workers performing same jobs at same work site
• More dissatisfied union workers have lower
  turnover than more satisfied nonunion workers

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The Structure of Unions
AFL-CIO
National Unions
Local Unions
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Local Unions

• Identify and negotiate plant (local) issues in
  national collective bargaining agreements
• Administer collective bargaining agreements or
  contracts

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National Unions

• Represent workers throughout the country in a
  particular craft or in a specific industry
• Negotiate major labor contracts with large
  employers
• Charter local unions

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The AFL-CIO

• Promotes cooperation among national unions in
  order to pursue organized labors common
  objectives
• Represents organized labor in political forums
• Provides lobbyists for legislative bodies
• Supports pro-union candidates for public office

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Union Membership 1960
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Union Membership 1997
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Where Union Representation is Greatest

• Government
• Manufacturing
• Transportation
• Public utilities
• Large industrial corporations

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Why has Union Membership Declined?

• Shift in employment from manufacturing to service
• Employers oppose unions and take aggressive
  stands against them
• Employers often find permanent replacements for
  striking employees

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Labor Laws

• Railway Labor Act
• Norris-La Guardia Act
• National Labor Relations Act (Wagner Act)
• Labor-Management Relations Act (Taft-Hartley Act)
• Labor-Management Reporting and Disclosure Act
  (Landrum-Griffin Act)

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Railway Labor Act

• Right to choose a bargaining agent
• Compels railroads to bargain with employees
  representatives
• Established mechanisms to resolve disputes

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Norris-La Guardia Act

• Limits judges powers to issue injunctions that
  restrain worker job actions

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National Labor Relations Act (Wagner Act)

• Gives workers the right to form unions and
  bargain collectively without being subject to
  coercion by their employers
• Established certification elections
• Established NLRB

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Unfair Employer Practices

• Interfering with workers right of
  self-organization
• Discriminating against employees engaging in
  union activity
• Refusing to bargain with employer representatives

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Labor-Management Relations Act (Taft-Hartley Act)

• Restored the balance of power between employers
  and unions
• Established decertification elections
• President can intervene in national emergency
  strikes

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Open vs. Closed Shops

• Open shop employees do not have to join union
  nor be assessed a fee for union representation
• Closed shop union membership required as a
  condition of employment
• Taft-Hartley Act States can outlaw closed shops

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Unfair Union Labor Practices

• Coercing employees trying to exercise their
  collective bargaining rights
• Pressuring employees to discriminate against
  non-union members
• Forcing employers to pay for unneeded services

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The Labor-Management Reporting and Disclosure Act
(Landrum-Griffin Act)

• Designed to prevent corruption by regulating the
  internal affairs of unions

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Why Do Workers Join Unions?

• Job dissatisfaction
• Union instrumentality
• Predisposition to support unions

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Stages in a Union Organizing Campaign
Petition
Election
Certification
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The Petition Phase

• Workers express initial interest in union
  representation by signing authorization cards.
• At least 30 of eligible workers must sign
  authorization cards to trigger NLRB involvement.

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The Election Phase

• NLRB conducts representation hearings to
  determine the appropriate bargaining unit
• Both union and employer campaign
• Election

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Bargaining Unit

• Those jobs or positions in which two or more
  employees share common employment interests and
  working conditions

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The Certification Phase

• NLRB certifies the results of the election.
• Simple majority wins, if no misconduct.
• Employer or union may file objections within five
  days.

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During a Certification Election, Employers Must

• Provide union with employee information,
  including names, addresses, and telephone numbers
• Provide information within seven days after
  consenting to an election

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During a Certification, Employers Must Not

• Give employees false or misleading information
  about the union.
• Threaten employees for pro-union activities.
• Promise benefits to employees for rejecting the
  union.
• Interrogate employees about their union
  sentiments.

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Negotiating a Collective Bargaining Agreement
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Negotiating a Collective Bargaining Unit Agreement

• Preparation for collective bargaining
• Establishing a bargaining agenda
• Choosing a bargaining strategy
• Engaging in good faith bargaining

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Preparation for Collective Bargaining

• Gather information about relevant contract
  settlements.
• Estimate costs of initial offers.
• Assess past experience in administering current
  contract.

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Establishing a Bargaining Agenda

• Illegal bargaining items
• Mandatory bargaining items
• Voluntary or permissive bargaining items

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Choosing a Bargaining Strategy
Pessimistic Bargaining Objective
Realistic Bargaining Objective
Optimistic Bargaining Objective
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The Settlement Range
optimistic objective
pessimistic objective
Settlement Range
pessimistic objective
optimistic objective
Union
Management
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Good Faith Bargaining

• To meet at reasonable times and confer in good
  faith with respect to wages, hours, and other
  terms and conditions of employment

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Cooperative Bargaining
Bargaining does not have to be adversarial.
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Grievance System

• A system that provides due process for claims of
  collective bargaining agreement violations

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Grievance

• An allegation that employer or employee contract
  rights have been violated

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Steps in a Grievance System
Final binding arbitration
Higher level bilateral discussion
Written grievance
Informal attempt to resolve
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Union Commitment

• Dedication to the union
• Pride in membership

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More Committed Union Members

• More likely to
• Hold elected offices
• Attend union meetings
• Perform committee work
• Vote for particular candidates for public office
• Support a job action against the employer
• Remain in a union

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Decertification

• The process of disenfranchising a union that
  previously had been accorded the exclusive right
  to represent a particular bargaining unit

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How Can a Union Be Decertified?

• Petition the NLRB to hold a decertification
  election.
• Petition for another election to replace the
  current union.
• Petition for a representation-management election.

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Line Managers and HRM in a Unionized Setting

• Comply with provisions of the collective
  bargaining agreements.
• Understand the agreement provisions and grievance
  system.
• Resolve conflicts early.

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Line Managers and HRM in a Nonunionized Setting

• Fairly allocate rewards and punishments.
• Cultivate a climate that stresses open
  communication.

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The HRM Department in a Union Setting

• Negotiate and consult with union officials.
• Ensure compliance with the labor contract.

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The HRM Department in a Nonunion Setting

• Provide workers with a greater voice in
  determining work conditions.
• Install a formal grievance system.
• Hire a labor relations consultant.

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Conflict Resolution Strategies

• Competition
• Collaboration
• Compromise
• Avoidance
• Accommodation