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PowerPoint Presentation by Charlie Cook
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Objectives
After studying this chapter, you should be able to:
1. Identify and explain the principal federal laws that
provide the framework for labor relations.
2. Explain the reasons employees join unions.
3. Describe the process by which unions organize
employees and gain recognition as their bargaining
agent.
4. Discuss the bargaining process and the bargaining
goals and strategies of a union and an employer.
3. Copyright Š 2004 South-
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Objectives (contâd)
After studying this chapter, you should be able to:
5. Differentiate the forms of bargaining power that a
union and an employer may utilize to enforce their
bargaining demands.
6. Describe a typical union grievance procedure and
explain the basis for arbitration awards.
7. Discuss some of the contemporary challenges to
labor organizations.
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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
Presentation Slide 14â1
5. Copyright Š 2004 South-
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Government Regulation of Labor Relations
⢠The Railway Labor Act (RLA) of 1926
ďPurpose of the act is to avoid service interruptions
resulting from disputes between railroads and their
operating unions.
ďNational Mediation Board
ďNational Railway Adjustment Board
⢠The Norris-LaGuardia Act of 1932
ďRestricts the ability of employers to obtain an
injunction against unions for their lawful activities.
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Government Regulation of Labor Relations
⢠The Wagner Act (National Labor Relations Act)
of 1935
ďProtects employee rights to organize and bargain
collectively through representatives of their choice.
ďCreated the National Labor Relations Board (NLRB)
to govern labor relations in the United States.
ďś Holds secret ballot union representation elections.
ďś Prevents and remedies unfair labor practices.
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Wagner Act
⢠Section 7 of the Act guarantees these rights:
ďTo self-organization, to form, join, or assist labor
organizations, to bargain collectively through freely
chosen representatives.
ďTo engage in concerted activities, for the purpose of
collective bargaining or other mutual aid or protection.
ďTo 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.
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Unfair Labor Practices (ULPs)
⢠Section 8 of the Wagner Act outlawed employer
practices that deny employees their rights and
benefits:
ďInterference with Section 7 rights
ďDomination of a union (company union)
ďDiscrimination against union members
ďArbitrary discharge of union members
ďRefusal to bargain with the union
Presentation Slide 14â2
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Amendments to the Wagner Act
⢠The Taft-Hartley Act (The Labor-Management
Relations Act) of 1947
ďBalances 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
ďSafeguards union member rights and prevents
racketeering and other unscrupulous practices by
employers and union officers.
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Unfair Union Practices
ďInterfering with Section 7 rights of employees
ďInterfering with representation elections
ďInfluencing employers to discriminate with
regard to union membership
ďRefusal to bargain collectively with employer
ďInterference with certified employee
representativeâs relationship with employer
ďAssessment of excessive initiation fees and
dues on bargaining unit members
ďâFeatherbeddingâ
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Labor Relations Process
1. Workers desire collective representation
2. Union begins its organizing campaign
3. Collective negotiations lead to a contract
4. The contract is administered
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The Labor Relations
Process
Figure 14.1
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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
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Organizing
Campaigns
Union/Employee ContactUnion/Employee ContactUnion/Employee ContactUnion/Employee Contact
Initial OrganizationalInitial Organizational
MeetingMeeting
Initial OrganizationalInitial Organizational
MeetingMeeting
Formation of In-HouseFormation of In-House
CommitteeCommittee
Formation of In-HouseFormation of In-House
CommitteeCommittee
Election Petition andElection Petition and
Voting PreparationVoting Preparation
Election Petition andElection Petition and
Voting PreparationVoting Preparation
Contract NegotiationsContract NegotiationsContract NegotiationsContract Negotiations
Steps in theSteps in the
OrganizingOrganizing
ProcessProcess
Steps in theSteps in the
OrganizingOrganizing
ProcessProcess
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United Food And Commercial Workers
International Union Authorization Card
HRM 2
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Aggressive Organizing Tactics
⢠Political Involvement
⢠Union Salting
⢠Organizer Training
⢠Corporate Campaigns
⢠Information Technology
Union NOW!!
Presentation Slide 14â3
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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
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How Employees Become Unionized
⢠Bargaining Unit
ďA 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
ďThe legal right and responsibility of the union to
represent all bargaining unit members equally,
regardless of whether employees join the union or
not.
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NLRB
Election
Poster
HRM 2
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The Labor Organization Process
Workers Seek Collective Representation
Union Begins TheUnion Begins The
Organizing ProcessOrganizing Process
Collective Bargaining For A ContractCollective Bargaining For A Contract
Contract AdministrationContract Administration
ManagementManagement LaborLabor
Representation Election is HeldRepresentation Election is Held
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Impact of Unionization on Managers
⢠Challenges to Management Prerogatives
ďManagement prerogatives versus union participation
in decision-making in the work place.
⢠Loss of Supervisory Authority
ďConstraints on management in directing and
disciplining the work force by terms of the collective
bargaining agreement.
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Union Structure and Governance
⢠Craft Unions
⢠Industrial Unions
⢠Employee Associations
⢠AFL-CIO
⢠National Unions
⢠Local Unions
Presentation Slide 14â4
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Types of Unions
⢠Craft unions
ďUnions that represent skilled craft workers
⢠Industrial unions
ďUnions that represent all workersâskilled,
semiskilled, unskilledâemployed along industry lines
⢠Employee associations
ďLabor organizations that represent various groups of
professional and white-collar employees in labor-
management relations.
24. Copyright Š 2004 South-
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Structure of the AFL-CIO
GENERAL BOARDGENERAL BOARD
Executive members andExecutive members and
principal officer of eachprincipal officer of each
international union affiliateinternational union affiliate
Meets upon call of federationMeets upon call of federation
president of executive councilpresident of executive council
GENERAL BOARDGENERAL BOARD
Executive members andExecutive members and
principal officer of eachprincipal officer of each
international union affiliateinternational union affiliate
Meets upon call of federationMeets upon call of federation
president of executive councilpresident of executive council
StandingStanding
committeescommittees
StandingStanding
committeescommittees
StaffStaff
departmentsdepartments
StaffStaff
departmentsdepartments
Affiliated national andAffiliated national and
international unionsinternational unions
Affiliated national andAffiliated national and
international unionsinternational unions
Local unions of nationalLocal unions of national
and international unionsand international unions
Local unions of nationalLocal unions of national
and international unionsand international unions
Local unions affiliatedLocal unions affiliated
directly with AFL-CIOdirectly with AFL-CIO
Local unions affiliatedLocal unions affiliated
directly with AFL-CIOdirectly with AFL-CIO
Affiliated state bodiesAffiliated state bodiesAffiliated state bodiesAffiliated state bodies
Local bodiesLocal bodiesLocal bodiesLocal bodies
Presentation Slide 14â5
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Structure and Functions of the AFL-CIO
⢠The âHouse of Laborâ
ď Disseminates labor policy developed by leaders of affiliated
unions.
ď Coordinates organizing activities among affiliated unions.
ď Provides research and other assistance through its various
departments.
ď Lobbies before legislative bodies on labor subjects
ď Publicizes the concerns and benefits of unionization
ď Resolves disputes between different unions as they occur
(preventing âraidingâ)
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Typical Organization of a Local Union
Local Union Meeting (Normally Monthly)Local Union Meeting (Normally Monthly)
PresidentPresident
Business
Representative
Business
Representative
Various Committee ChairpersonsVarious Committee Chairpersons
Vice-PresidentsVice-Presidents
Secretary/TreasurerSecretary/Treasurer
Sergeant at ArmsSergeant at Arms
Training and
Education
Training and
Education
Grievance
Committee:
Chief Steward and
Shop Stewards
Grievance
Committee:
Chief Steward and
Shop Stewards
Collective
Bargaining
Collective
Bargaining
SocialSocial
Local Union MembersLocal Union Members
Presentation Slide 14â6
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Structure and Functions of Local Unions
⢠Local Officers
ďElected officials who lead the union and serve on the
bargaining committee for a new contract.
⢠Union Steward
ďAn employee, as a nonpaid union official, represents
the interests of members in their relations with
management.
⢠Business Unionism
ďThe term applied to the goals of U.S. labor
organizations, which collectively bargain wages,
hours, job security, and working conditions.
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Types of Arbitration
⢠Compulsory Binding Arbitration
ďA process for employees such as police officers,
firefighters, and others in jobs where strikes cannot
be tolerated to reach agreement.
⢠Final-offer Arbitration
ďThe 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.
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The
Collective
Bargaining
Process
Figure 14.2
PREPARE FORPREPARE FOR
NEGOTIATIONSNEGOTIATIONS
------------------------------------------------------------
⢠Gather dataGather data
⢠Form bargaining termsForm bargaining terms
PREPARE FORPREPARE FOR
NEGOTIATIONSNEGOTIATIONS
------------------------------------------------------------
⢠Gather dataGather data
⢠Form bargaining termsForm bargaining terms
DEVELOPDEVELOP
STRATEGIESSTRATEGIES
------------------------------------------------------------
⢠Develop managementDevelop management
proposals and limits ofproposals and limits of
concessionsconcessions
⢠Consider opponentsâ goalsConsider opponentsâ goals
⢠Make strike plansMake strike plans
DEVELOPDEVELOP
STRATEGIESSTRATEGIES
------------------------------------------------------------
⢠Develop managementDevelop management
proposals and limits ofproposals and limits of
concessionsconcessions
⢠Consider opponentsâ goalsConsider opponentsâ goals
⢠Make strike plansMake strike plans
CONDUCTCONDUCT
NEGOTIATIONSNEGOTIATIONS
----------------------------------------------------------------
⢠Bargain in good faithBargain in good faith
⢠Analyze proposalsAnalyze proposals
⢠Resolve proposalsResolve proposals
⢠Stay within bargaining zoneStay within bargaining zone
CONDUCTCONDUCT
NEGOTIATIONSNEGOTIATIONS
----------------------------------------------------------------
⢠Bargain in good faithBargain in good faith
⢠Analyze proposalsAnalyze proposals
⢠Resolve proposalsResolve proposals
⢠Stay within bargaining zoneStay within bargaining zone
FORMALIZEFORMALIZE
AGREEMENTAGREEMENT
------------------------------------------------------------
⢠Clarify contract languageClarify contract language
⢠Ratify agreementRatify agreement
FORMALIZEFORMALIZE
AGREEMENTAGREEMENT
------------------------------------------------------------
⢠Clarify contract languageClarify contract language
⢠Ratify agreementRatify agreement
11 22
44 33
Presentation Slide 14â7
Strikes Legal
requirements
Lockouts Strike
replacements
Boycotts
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The Bargaining Process
⢠Collective Bargaining Process
ďThe process of negotiating a labor agreement,
including the use of economic pressures by both
parties.
⢠Bargaining Zone
ďArea within which the union and the employer are
willing to concede when bargaining.
⢠Interest-based Bargaining
ďProblem-solving bargaining based on a win-win
philosophy and the development of a positive long-
term relationship.
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The Bargaining Zone and
Negotiation Influences
Figure 14.3
Source: Adapted from Ross Stagner and Hjalmar Rosen,
Psychology of Union-Management Relations (Belmont,
Calif.: Wadsworth Publishing Company, 1965), 96. Adapted
with permission from Brooks/Cole Publishing Co.
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Items In A Labor Agreement
⢠Typical clauses will cover:
ďWages
ďVacations
ďHolidays
ďWork schedules
ďManagement rights
ďUnion security
ďTransfers
ďDiscipline
ďGrievance procedures
ďNo strike/no lockout
clause
ďOvertime
ďSafety procedures
ďSeverance pay
ďSeniority
ďPensions and benefits
ďOutsourcing
HRM 5a
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Items In A Labor Agreement (contâd)
⢠Progressive clauses will cover:
ďEmployee access to records
ďLimitations on use of performance evaluation
ďElder care leave
ďFlexible medical spending accounts
ďProtection against hazards of technology equipment
(VDTs)
ďLimitations against electronic monitoring
ďProcedures governing drug testing
ďBilingual stipends
ďDomestic partnership benefits
HRM 5b
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Management and Union Power
in Collective Bargaining
⢠Bargaining Power
ďThe power of labor and management to achieve their
goals through economic, social, or political influence.
⢠Union Bargaining Power
ďStrikes, pickets, and boycotts
⢠Management Bargaining Power
ďHiring replacement workers
ďContinuing operations staffed by management
ďLocking out employees
Presentation Slide 14â8
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PicketingStriking
Union Power in Collective Bargaining
Boycotting
Boycott
Our
Employer
This Union
On Strike
Unfair
On
Strike
Donât
Buy Here
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Employer Power in Collective Bargaining
Demanding concessionsDemanding concessionsDemanding concessionsDemanding concessions
Locking out workersLocking out workersLocking out workersLocking out workers
Management methods for applying
economic pressure during bargaining:
Management methods for applying
economic pressure during bargaining:
Outsourcing normal workOutsourcing normal workOutsourcing normal workOutsourcing normal work
Hiring replacement workersHiring replacement workersHiring replacement workersHiring replacement workers
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Union Security Agreements
⢠Dues Checkoff
ďGives the employer the responsibility of withholding
union dues from the paychecks of union members
who agree to such a deduction.
⢠âShopâ Agreements
ďRequire employees to join or support the union.
ďUnion shop requires employee membership.
ďAgency shop allows voluntary membership;
employee must pay union dues and fees.
38. Copyright Š 2004 South-
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Five-Step
Grievance
Procedure
⢠Grievance Procedure
A formal procedure that
provides for the union to
represent members and
nonmembers in
processing a grievance
Figure 14.4
Presentation Slide 14â9
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Grievance Arbitration
⢠Rights Arbitration
ďArbitration over interpretation of the meaning of
contract terms or employee work grievances.
⢠Fair Representation Doctrine
ďThe doctrine under which unions have a legal
obligation to provide assistance to both members and
nonmembers in labor relations matters.
40. Copyright Š 2004 South-
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Grievance (Rights) Arbitration
Submission agreement and awardsSubmission agreement and awardsSubmission agreement and awardsSubmission agreement and awards
Rights arbitration and EEO conflictsRights arbitration and EEO conflictsRights arbitration and EEO conflictsRights arbitration and EEO conflicts
Significant issues in using arbitration
as a method for dispute resolution:
Significant issues in using arbitration
as a method for dispute resolution:
Deciding to use binding arbitrationDeciding to use binding arbitrationDeciding to use binding arbitrationDeciding to use binding arbitration
Fair Representation DoctrineFair Representation DoctrineFair Representation DoctrineFair Representation Doctrine
Methods for choosing an arbitratorMethods for choosing an arbitratorMethods for choosing an arbitratorMethods for choosing an arbitrator
41. Copyright Š 2004 South-
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The Arbitration Process
⢠Arbitrator declares the hearing open and obtains
the submission agreement.
⢠Parties present opening statements.
⢠Each side presents its case using witnesses and
evidence; witnesses can be cross examined.
⢠Parties make closing statements.
⢠Arbitrator closes hearing and designates date
and time for rendering the award.
Presentation Slide 14â10
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The Arbitration Decision
⢠Four factors arbitrators use to decide cases:
ďThe wording of the labor agreement (or employment
policy in nonunion organizations).
ďThe submission agreement (statement of problem
to be solved) as presented to the arbitrator.
ďTestimony and evidence offered during the hearing.
ďArbitration criteria or standards (similar to standards
of common law) against which cases are judged.
Presentation Slide 14â11
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Current Challenges to Unions
Employersâ focus onEmployersâ focus on
maintaining nonunion statusmaintaining nonunion status
Employersâ focus onEmployersâ focus on
maintaining nonunion statusmaintaining nonunion status
Important issues confronting unionsImportant issues confronting unionsImportant issues confronting unionsImportant issues confronting unions
Foreign competition andForeign competition and
technological changetechnological change
Foreign competition andForeign competition and
technological changetechnological change
The long-term decrease inThe long-term decrease in
union membershipunion membership
The long-term decrease inThe long-term decrease in
union membershipunion membership
Editor's Notes
This one goes right after the learning objectives.