Part V Special Topics in Human Resources Standard Slide Sample Chapter 14 Collective Bargaining and Labor Relations Chapter 15 Managing Human Resources Globally Chapter 16 Strategically Managing the HR Function Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 14 Chapter Collective Bargaining and Labor Relations Objectives • Describe what is meant by collective bargaining and labor relations • Identify the labor relations goals of management, labor unions, and society • Explain the legal environment’s impact on labor relations • Describe the major labor management interactions: organizing, contract negotiations, and contract administration • Describe the new, less adversarial approaches to labor management relations • Explain how changes in competitive challenges are influencing labor-management interactions • Explain how labor relations in the public sector differ from labor relations in the private sector Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 14-2 Labor Relations Framework CompetitiveChallenges Challenges Competitive Goals Goals society society management management employeesand andunion union employees Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Labor Relations Framework 14-3 CompetitiveChallenges Challenges Competitive Goals Goals society society management management employeesand andunion union employees Union Structure & Administration Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 14-4 Union Structure, Administration, and Membership National and and International International Unions Unions National Local Unions Unions Local AFL-CIO AFL-CIO Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Union Security 14-5 Unionstypically typicallyplace placeaahigh high priority priorityon on negotiating negotiating Unions twocontract contractprovisions provisionsthat thatare arecritical critical to toits itssecurity security two or viability: viability: or check-offprovision provision AAcheck-off Unionmembership membershipor orcontributions contributions Union closedshop shop aaclosed unionshop shop aaunion anagency agencyshop shop an Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Decline in Union Membership 14-6 Structuralchanges changes in in economy economy Structural servicesector sectorgrowth growth service Increasedemployer employer resistance resistance Increased globalcompetition competition global Substitutionswith with HRM HRM Substitutions concernfor foremployees, employees,flexibility flexibility concern Replacedby by government governmentregulation, regulation, laws laws Replaced EEOand andother otherregulations regulationsoffer offerprotection protection EEO Worker views views Worker Unionactions actions Union Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Labor Relations Framework 14-7 CompetitiveChallenges Challenges Competitive Goals Goals society society management management employeeand andunion union employee UnionMembership Membership Union BargainingPower Power &&Bargaining Union Structure & Administration Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Legal Framework 14-8 WagnerAct Act (NLRA) (NLRA)1935 1935 Wagner –– Employer unfair unfairlabor laborpractices practices Employer otherunion-related union-relatedactivity activity other unionorganizing organizing union joiningaaunion union joining goingon onstrike strike going TaftHartley HartleyAct Act(1947) (1947)&& Landrum-Griffin Landrum-GriffinAct Act Taft (1959) (1959) –– Irwin/McGraw-Hill Union unfair unfairlabor laborpractices practices Union right-to-worklaws laws right-to-work allowmembers membersto toexercise exercisetheir theirrights rights allow © The McGraw-Hill Companies, Inc., 2000 14-9 Labor Relations Framework Competitive Challenges Challenges Competitive Goals Goals society society management management employeesand and employees union union Union Structure & Administration Irwin/McGraw-Hill UnionMembership Membership Union BargainingPower Power &&Bargaining Union&& Union Management Management Interactions Interactions organizing organizing negotiating negotiating administering administering © The McGraw-Hill Companies, Inc., 2000 14-10 Union - Management Interaction: The Organizing Process Why employees employees join join unions unions Why Process && legal legal framework framework Process Representation elections elections Representation management tactics tactics management union tactics tactics union Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 14-11 Union - Management Interaction: Contract Negotiation Process Distributive bargaining bargaining (win-lose) (win-lose) Distributive Integrative bargaining bargaining (win-win) (win-win) Integrative Management’s preparation preparation Management’s Stages and and tactics tactics Stages Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Factors Influencing Management’s Willingness to Take a Strike 14-12 Product Demand Demand is is strong strong Product Product Perishability Perishability is is high high Product Capital intensive intensive Capital Replacement workers workers readily readily available available Replacement Multiple production production sites sites Multiple Facilities are are not not very very integrated integrated Facilities Lack of of product product substitutes substitutes Lack Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 14-13 Impasse-Resolution procedures: Strike Alternatives Mediation Arbitration Grievance Procedures Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 14-14 Union - Management Interaction: Contract Administration Typical Steps in a Grievance Procedure 11 22 33 44 Discuss grievance grievance with with supervisor supervisor Discuss Grievance is is put put in in writing writing to to higher higher level level Grievance manager Steward Steward and and management management manager representative meet meet representative Appeal to to top top level level // labor labor relations relations staff staff Appeal Decision is is put put in in writing writing Decision Arbitration for for binding binding decision decision Arbitration Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 14-15 Contributions to Organizational Effectiveness of Transformational Approaches to Labor Relations Dimension Pattern Traditional Transformational Conflict resolution Frequency of conflicts Speed of conflict resolution Informal grievance resolution Third & fourth-step grievances High Slow Low High Low Fast High Low Low Low High High Low Low Low Low High High High High Shop-floor cooperation Formal problem-solving groups Informal problem-solving activity Worker autonomy & feedback Formal autonomous work groups Informal worker autonomous activity Worker-initiated changes in work Feedback on cost, quality & schedule Source: Adapted from J Cutcher-Gershenfeld, “The Impact of Economic Performance of a Transformation Irwin/McGraw-Hill in Workplace Relations,” Industrial and Labor Relations Review 44 (1991): 241-260 © The McGraw-Hill Companies, Inc., 2000 14-16 Labor Relations Framework CompetitiveChallenges Challenges Competitive Goals Goals society society management management employeesand and employees union union Union Structure & Administration Irwin/McGraw-Hill UnionMembership Membership Union BargainingPower Power &&Bargaining Union&& Union Management Management Interactions Interactions organizing organizing negotiating negotiating administering administering Goal Attainment - employees & unions - management - society © The McGraw-Hill Companies, Inc., 2000 14-17 Measuring Effectiveness: Labor Relations Outcomes Irwin/McGraw-Hill Strikes Wages and Benefits Productivity Profits and Stock Performance © The McGraw-Hill Companies, Inc., 2000 [...]... Process Distributive bargaining bargaining (win-lose) (win-lose) Distributive Integrative bargaining bargaining (win-win) (win-win) Integrative Management’s preparation preparation Management’s Stages and and tactics tactics Stages Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Factors Influencing Management’s Willingness to Take a Strike 14-12 Product Demand Demand is is strong strong... McGraw-Hill Companies, Inc., 2000 14-16 Labor Relations Framework CompetitiveChallenges Challenges Competitive Goals Goals society society management management employeesand and employees union union Union Structure & Administration Irwin/McGraw-Hill UnionMembership Membership Union BargainingPower Power &&Bargaining Union&& Union Management Management Interactions Interactions organizing organizing... Grievance manager Steward Steward and and management management manager representative meet meet representative Appeal to to top top level level // labor labor relations relations staff staff Appeal Decision is is put put in in writing writing Decision Arbitration for for binding binding decision decision Arbitration Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 14-15 Contributions to Organizational... problem-solving groups Informal problem-solving activity Worker autonomy & feedback Formal autonomous work groups Informal worker autonomous activity Worker-initiated changes in work Feedback on cost, quality & schedule Source: Adapted from J Cutcher-Gershenfeld, “The Impact of Economic Performance of a Transformation Irwin/McGraw-Hill in Workplace Relations,” Industrial and Labor Relations Review 44 (1991):... Perishability Perishability is is high high Product Capital intensive intensive Capital Replacement workers workers readily readily available available Replacement Multiple production production sites sites Multiple Facilities are are not not very very integrated integrated Facilities Lack of of product product substitutes substitutes Lack Irwin/McGraw-Hill © The McGraw-Hill Companies,... Companies, Inc., 2000 14-13 Impasse-Resolution procedures: Strike Alternatives Mediation Arbitration Grievance Procedures Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 14-14 Union - Management Interaction: Contract Administration Typical Steps in a Grievance Procedure 11 22 33 44 Discuss grievance grievance with with supervisor supervisor Discuss Grievance is is put put in in writing... Union - Management Interaction: The Organizing Process Why employees employees join join unions unions Why Process && legal legal framework framework Process Representation elections elections Representation management tactics tactics management union tactics tactics union Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 14-11 Union - Management Interaction: Contract Negotiation... Contributions to Organizational Effectiveness of Transformational Approaches to Labor Relations Dimension Pattern Traditional Transformational Conflict resolution Frequency of conflicts Speed of conflict resolution Informal grievance resolution Third & fourth-step grievances High Slow Low High Low Fast High Low Low Low High High Low Low Low Low High High High High Shop-floor cooperation Formal problem-solving... Interactions organizing organizing negotiating negotiating administering administering Goal Attainment - employees & unions - management - society © The McGraw-Hill Companies, Inc., 2000 14-17 Measuring Effectiveness: Labor Relations Outcomes Irwin/McGraw-Hill Strikes Wages and Benefits Productivity Profits and Stock Performance © The McGraw-Hill Companies, Inc., 2000