CHAPTER 17 Union/Management Relations S E C T I O N Managing Employee Relations © 2008 Thomson/South-Western All rights reserved PowerPoint Presentation by Charlie Cook The University of West Alabama Chapter Chapter Objectives Objectives After you have read this chapter, you should be able to: ■ Describe what a union is and explain why employees join and employers resist unions ■ Identify several reasons for the decline in union membership ■ Explain the acts that compose the National Labor Code ■ Discuss the stages of the unionization process ■ Describe the typical collective bargaining process ■ Define grievance and identify the stages in a grievance procedure © 2008 Thomson/South- 17–2 Nature of Unions • Union A formal association of workers that promotes the interests of its members through collective action • Why Employees Unionize They are dissatisfied with how they are treated by their employers They believe that unions can improve their work situations © 2008 Thomson/South- 17–3 FIGURE 17-1 Factors Leading to Employee Unionization © 2008 Thomson/South- 17–4 Nature of Unions (cont’d) • Why Employers Resist Unions Unionization constrains what managers can and cannot in a number of areas Unionization can result in higher wages and benefits © 2008 Thomson/South- 17–5 FIGURE 17-2 Adjusted Union Membership as a Percentage of the Workforce for Selected Countries Source: U.S Department of Labor, Monthly Labor Review, January 2006, 45 © 2008 Thomson/South- 17–6 Union Membership Globally • Union membership is falling in advanced countries High unemployment is creating pressure for change • In some countries, unions are closely tied to political parties • Child labor is an issue in some countries • Co-determination A practice whereby union or worker representatives are given positions on a company’s board of directors © 2008 Thomson/South- 17–7 U.S and Global Unionization Differences Key Emphases Economic Issues Organization by Job and Employer © 2008 Thomson/South- Collective Agreements as “Contracts” Competitive Relations 17–8 FIGURE 17-3 Union Membership as a Percentage of the U.S Civilian Workforce Source: U.S Department of Labor, Bureau of Labor Statistics, 2007 © 2008 Thomson/South- 17–9 Reasons for U.S Union Membership Decline Causes of Membership Decline Geographic Changes Industrial Changes © 2008 Thomson/South- Workforce Changes 17–10 Organizing Campaign Holding mandatory employee meetings Employers’ Union Prevention Efforts Distributing anti-union leaflets and letters Anti-union videos, e-mails, and other electronic means © 2008 Thomson/South- 17–22 Unionization Authorization Cards Salting Unionization Efforts Contract Negotiation Bargaining Unit Composition Certification and Decertification © 2008 Thomson/South- 17–23 Bargaining Unit Composition • “Community of Interest” Wages, hours, and working conditions Traditional industry groupings for bargaining purposes Physical location and amount of interaction and working relationships among employee groups Supervision by similar levels of management • Supervisors and Union Ineligibility Supervisors are excluded from bargaining units © 2008 Thomson/South- 17–24 Collective Bargaining Issues Management Rights Bargaining Issues Union Security Classification of Bargaining Issues © 2008 Thomson/South- 17–25 FIGURE 17-8 Continuum of Collective Bargaining Relations © 2008 Thomson/South- 17–26 Classification of Bargaining Issues Mandatory Issues Collective Bargaining Issues Permissive Issues Illegal Issues © 2008 Thomson/South- 17–27 Collective Bargaining Process Preparation and Initial Demands Bargaining Impasse Continuing Negotiations in Good Faith Ratification Conciliation Mediation Arbitration Settlement and Contract Agreement Strikes and Lockouts © 2008 Thomson/South- 17–28 FIGURE 17-9 Industry Weekly Earnings of Union and Non-Union Workers Source: Bureau of Labor Statistics, “Union Members in 2006,” January 25, 2007, www.bls.gov/cps © 2008 Thomson/South- 17–29 FIGURE 17-10 Typical Items in a Labor Agreement Purpose of agreement 11 Separation allowance Non-discrimination clause 12 Seniority Management rights 13 Bulletin boards Recognition of the union 14 Pension and insurance Wages 15 Safety Incentives 16 Grievance procedure Hours of work 17 No-strike or lockout clause Vacations 18 Definitions Sick leave and leaves of absence 19 Terms of contract (dates) 20 Appendices 10 Discipline © 2008 Thomson/South- 17–30 Strikes and Lockouts • Strike A work stoppage in which union members refuse to work in order to put pressure on an employer • Lockout Shutdown of company operations undertaken by management to prevent union members from working • Striker Replacements © 2008 Thomson/South- 17–31 Strikes Unfair Labor Practice Strikes Economic Strikes Types of Strikes Sympathy Strikes Wildcat Strikes Jurisdictional Strikes © 2008 Thomson/South- 17–32 Union-Management Cooperation Issues Cooperation and Joint Efforts UnionManagement Cooperation Employee Involvement Programs (Teams) Unions and Employee Ownership © 2008 Thomson/South- 17–33 Grievance Management • Complaint Indication of employee dissatisfaction • Grievance A complaint formally stated in writing • Grievance Procedures Formal channels used to resolve grievances Union representation (Weingarten) rights • Grievance Arbitration Means by which a third party settles disputes arising from different interpretations of a labor contract © 2008 Thomson/South- 17–34 FIGURE 17-11 Typical Division of HR Responsibilities: Grievance Management © 2008 Thomson/South- 17–35 FIGURE 17-12 Steps in a Typical Grievance Procedure © 2008 Thomson/South- 17–36 [...]... Shutdown of company operations undertaken by management to prevent union members from working • Striker Replacements © 2008 Thomson/South- 17–31 Strikes Unfair Labor Practice Strikes Economic Strikes Types of Strikes Sympathy Strikes Wildcat Strikes Jurisdictional Strikes © 2008 Thomson/South- 17–32 Union -Management Cooperation Issues Cooperation and Joint Efforts UnionManagement Cooperation Employee Involvement... Physical location and amount of interaction and working relationships among employee groups Supervision by similar levels of management • Supervisors and Union Ineligibility Supervisors are excluded from bargaining units © 2008 Thomson/South- 17–24 Collective Bargaining Issues Management Rights Bargaining Issues Union Security Classification of Bargaining Issues © 2008 Thomson/South- 17–25 FIGURE 17-8... January 25, 2007, www.bls.gov/cps © 2008 Thomson/South- 17–29 FIGURE 17-10 Typical Items in a Labor Agreement 1 Purpose of agreement 11 Separation allowance 2 Non-discrimination clause 12 Seniority 3 Management rights 13 Bulletin boards 4 Recognition of the union 14 Pension and insurance 5 Wages 15 Safety 6 Incentives 16 Grievance procedure 7 Hours of work 17 No-strike or lockout clause 8 Vacations... or discouraging membership in a particular union • Discharging persons for organizing activities or union membership • Refusing to bargain collectively © 2008 Thomson/South- 17–18 Taft-Hartley (Labor -Management Relations) Act • Right-to-Work Laws State laws that prohibit contracts requiring employees to join unions to obtain or continuing employment Types of Shops Closed Shop Union Shop © 2008 Thomson/South-... Union -Management Cooperation Issues Cooperation and Joint Efforts UnionManagement Cooperation Employee Involvement Programs (Teams) Unions and Employee Ownership © 2008 Thomson/South- 17–33 Grievance Management • Complaint Indication of employee dissatisfaction • Grievance A complaint formally stated in writing • Grievance Procedures Formal channels used to resolve grievances Union representation... Arbitration Means by which a third party settles disputes arising from different interpretations of a labor contract © 2008 Thomson/South- 17–34 FIGURE 17-11 Typical Division of HR Responsibilities: Grievance Management © 2008 Thomson/South- 17–35 FIGURE 17-12 Steps in a Typical Grievance Procedure © 2008 Thomson/South- 17–36