fundamentals of

Human Resource Management 4th
by R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright



Collective Bargaining and Labor Relations
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved.


What Do I Need to Know?
1. Define unions and labor relations and their role in organizations. 2. Identify the labor relations goals of management, labor unions, and society. 3. Summarize laws and regulations that affect labor relations. 4. Describe the union organizing process.


What Do I Need to Know? (continued)
5. Explain how management and unions negotiate contracts. 6. Summarize the practice of contract administration. 7. Describe more cooperative approaches to labor-management relations.


Role of Unions
• In the U.S., most workers act as individuals to select jobs that are acceptable to them and to negotiate pay, benefits, flexible hours, and other work conditions. • At times, workers have believed their needs and interests do not receive enough consideration from management. • One response by workers is to act collectively by forming and joining labor unions.


• Labor relations – field that emphasizes skills managers and union leaders can use to minimize costly forms of conflict (such as strikes) and seek win-win solutions to disagreements. 14-5 .Unions and Labor Relations • Unions – organizations formed for the purpose of representing their members’ interests in dealing with employers.

Administering contracts 14-6 . Negotiating contracts 3. Labor relations strategy 2.Labor relations involves three levels of decisions: 1.

These unions may be: – Craft unions: labor unions whose members all have a particular skill or occupation. • Most national unions are affiliated with the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). – Industrial unions: labor unions whose members are linked by their work in a particular industry. 14-7 .National and International Unions • Most Union members belong to a national or international union.

1: 10 Largest Unions in the United States 14-8 .Figure 14.

S.Figure 14. Wage and Salary Workers.2: Union Membership Density among U. 1973-2009 14-9 .

The decline in union membership has been attributed to: Change in the structure of the economy Management efforts to control costs Human resource practices Government regulation 14-10 .

Figure 14.3: Union Membership Rates and Coverage in Selected Countries 14-11 .

Many Union Workers Hold Government Jobs 14-12 .

14-13 . • In general. companies wishing to become more competitive need to continually monitor their labor relations strategies.Impact of Unions on Company Performance • Harley-Davidson and the International Association of Machinists and Aerospace Workers have cooperated to produce good results. though.

14-14 . • When an employer has recognized a union. Managers tend to prefer options that lower costs and raise output.Goals of Management • Management goals are to increase the organization’s profits. • Managers prefer to keep their organization’s operations flexible. management’s goals continue to emphasize restraining costs and improving output.

Goals of Management (continued) • In their labor relations. managers prefer to: – Limit increases in wages and benefits. and – Retain as much control as they can over work rules and schedules. 14-15 .

Goals of Labor Unions • Labor unions have the goals of obtaining pay and working conditions that satisfy their members and of giving members a voice in decisions that affect them. • They obtain these goals by gaining power in numbers. 14-16 . • Unions want to influence the way pay and promotions are determined.

Goals of Labor Unions (continued) • The survival and security of a union depend on its ability to ensure a regular flow of new members and member dues to support the services it provides. • Unions place high priority on negotiating two types of contract provisions that are critical to a union’s security and viability: – Checkoff provisions – Union membership or contribution provisions 14-17 .

on behalf of the union.Goals of Labor Unions (continued) Checkoff Provision • Contract provision under which the employer. automatically deducts union dues from the employees’ paychecks. Membership Security • Closed shop • Union shop • Agency shop • Maintenance of membership 14-18 .

14-19 . • Society’s goal for unions is to ensure that workers have a voice in how they are treated by their employers. • Society’s values drive the laws and regulations that affect labor unions.Goals of Society • The activities of unions and management take place within the context of society.

Laws Affecting Labor Relations National Labor Relations Act (NLRA) of 1935 Taft-Hartley Act of 1947 Landrum-Griffin Act of 1959 14-20 .

Laws Affecting Labor Relations (continued) • Right-to-work laws: state laws that make union shops. and agency shops illegal. • National Labor Relations Board (NLRB): Federal government agency that enforces the NLRA by conducting and certifying representation elections and investigating unfair labor practices. 14-21 . maintenance of membership.

4: States with Right-to-Work Laws 14-22 .Figure 14.

The NLRB determines which states are Right-to-Work 3. 5. employees do not have to become members of the union 4. In Right-to-Work states. Protection from union misconduct was established by the Landrum-Griffin Act. The NLRA established unfair labor practices on the part of the union. 2. 14-23 .Test Your Knowledge True (A) or False (B) 1. In states without Right-to-Work laws unions can refuse to hire non-union members.

The Process of Organizing Signing authorization cards Petition for election Election campaign Election and certification 14-24 .

Signing Authorization Cards • A document indicating that an employee wants to be represented by a labor organization in collective bargaining • Is there sufficient interest on the part of employees to justify the unit • Evidence of interest when at least 30 percent of the employees in a work group sign an authorization card • Usually need 50% to proceed 14-25 .

5: Example of an Authorization Card 14-26 .Figure 14.

Petition for Election • After authorization cards have been signed. a petition for election is made to the regional NLRB office • NLRB will ordinarily direct that an election be held within 30 days 14-27 .

• Process does not require either party to make concessions.Election and Certification • NLRB monitors the secret-ballot election on the set date • Board will issue a certification of the results to the participants • Majority of the employees vote for union. NLRB will certify. it only compels them to bargain in good faith 14-28 .

1: What Supervisors Should and Should Not Do to Discourage Unions 14-29 .Table 14.

• Negotiate employer neutrality and card-check provisions into a contract. 14-30 . • Offer workers associate union membership. • Conduct corporate campaigns.Union Strategies • Organizers call or visit employees at home to talk about issues like pay and job security.

Union Decertification • Taft-Hartley Act made it possible for employees to decertify a union • Essentially the reverse of the process that employees must follow to be recognized as an official bargaining unit • Employees have used decertification petitions with increasing frequency and success 14-31 .

employees will be union free 14-32 .Decertification Procedure • At least 30 percent must petition for election • Petition submitted 60-90 days prior to expiration of current contract • Schedule decertification election • If majority votes against union.

Collective Bargaining • In collective bargaining a union negotiates on behalf of its members with management representatives to arrive at a contract defining: – Recognition – Management Rights – Union Security – Compensation and Benefits – Grievance Procedure – Employee Security 14-33 .

Table 14.2: Typical Provisions in Collective Bargaining Contracts 14-34 .

Promise employees an additional week of vacation if they vote against the union 14-35 . Enforcing disciplinary policies when deserved to a pro-union employee 6. Tell employees the disadvantages of having a union 5. Showing employees articles about negative aspects of unions that occurred elsewhere 3. Enforcing disciplinary policies only to those who have expressed interest in a union 2. Email employees asking them to respond with how they plan to vote in the union election 4.Test Your Knowledge: Which of the Following is an Unfair Labor Practice (ULP)? 1.

Bargaining Over New Contracts Distributive Bargaining Integrative Bargaining Attitudinal Bargaining Intraorganizational Bargaining 14-36 .

When Bargaining Breaks Down Strikes • Strike: a collective decision by union members not to work until certain demands or conditions are met. Alternatives to Strikes • Mediation • Fact Finder • Arbitration 14-37 .

6: Strikes Involving 1.Figure 14.000 or More Workers 14-38 .

the views and arguments of both sides. Fact Finder • Third party to collective bargaining who reports the reasons for a dispute.Alternatives to Strikes Mediation • Conflict resolution procedure in which a mediator hears the views of both sides and facilitates the negotiation process but has no formal authority to dictate a resolution. and possibly a recommended settlement. which the parties may decline. Arbitration • Conflict resolution procedure in which an arbitrator or arbitration board determines a binding settlement. 14-39 .

Contract Administration Contract Administration • Includes carrying out the terms of the agreement and resolving conflicts over interpretation or violation of the agreement. 14-40 . Grievance Procedure • The process for resolving unionmanagement conflicts over interpretation or violation of a collective bargaining agreement.

Figure 14.7: Steps in an EmployeeInitiated Grievance Procedure 14-41 .

Labor-Management Cooperation Employee involvement in decision making Self-managing employee teams Labor-management problem-solving teams Broadly defined jobs Sharing of financial gains and business information with employees 14-42 .

3. Mediation requires each party to abide by the mediator’s decision.Test Your Knowledge True (A) or False (B) 1. 2. 4. Integrative bargaining involves a win-lose approach because the issues are considered a fixed pie. A union steward represents the issues concerning union employees and is elected by them. Clearly written contracts require less contract administration time due to fewer disagreements over interpretation. 14-43 .

• Labor relations is the management specialty emphasizing skills that managers and union leaders can use to minimize costly forms of conflict and to seek win-win solutions to disagreements. 14-44 . Managers generally expect that unions will make these goals harder to achieve.Summary • A union is an organization formed for the purpose of representing its members in resolving conflicts with employers. • Management goals are to increase the organization’s profits.

14-45 . some organizations and unions work more cooperatively.Summary (continued) • Labor unions have the goal of obtaining pay and working conditions that satisfy their members. • In contrast to the traditional view that labor and management are adversaries. They obtain these results by gaining power in numbers. • Society’s values have included the hope that the existence of unions will replace conflict or violence between workers and employers with fruitful negotiation.

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