Chapter 14 Collective Bargaining and Labor Relations Copyright © 2015 McGraw-Hill Education All rights reserved No reproduction or distribution without the prior written consent of McGraw-Hill Education 14-2 Reasons for Decline in Union Membership 14-3 Unfair Labor Practices (ULPs) NLRA prohibits certain activities by both employers and labor unions Employers cannot: interfere with, restrain, or coerce employees in exercising their Section rights dominate or interfere with a union discriminate against an individual for exercising his or her right to join or assist a union discriminate against employees for providing testimony relevant to enforcement of the NLRA refuse to bargain collectively with a certified union 14-4 Unfair Labor Practices of Unions Wagner Act of 1935 (NLRA) enshrined collective bargaining as the preferred mechanism for settling labor-management disputes 14-5 Why Do Employees Join Unions? 14-6 To Stay Union-Free Supervisors Should Report union activity to a core management group State and coordinate company’s response to pro-union arguments to maintain consistency and avoid threats or promises Follow effective management practices: •Deliver recognition and appreciation •Solve employee problems •Protect employees from harassment or humiliation •Provide business-related information •Be consistent in treatment of different employees •Accommodate special circumstances where appropriate •Ensure due process in performance management •Treat all employees with dignity and respect 14-7 Steps to Prepare Managers for Negotiations Establish interdepartmental contract objectives Review old contract Prepare and analyze data Anticipate union demands Establish costs of contract provisions Make preparations for a strike Determine strategy and logistics 14-8 Management’s Willingness to Strike Most negotiations not result in a strike since it is often not in the best interest of either party 14-9 Grievance Procedure Arbitration is final and binding criteria arbitrators used to reach decisions: Did the employee know the rule & consequences of violating it? Was the rule applied in a consistent & predictable way? Were facts collected in a fair & systematic way? Did the employee have the right to question facts & present a defense? Does the employee have the right of appeal? Is there progressive discipline? Are there mitigating circumstances? Effectiveness of grievance procedures’ three criteria: How well are day-to-day problems resolved? How well does the process adjust to changing circumstances? In multi-unit contracts, how well does the process handle local contract issues? 14-10 Summary Labor unions represent their members’ interests in the workplace May witness diminished ability to compete effectively in global economy Management in nonunion companies feel compelled to resist unionization Union has lost membership and bargaining power in the private sector Management and unions are seeking more effective ways of working together to enhance competitiveness while giving employees a voice in workplace decisions Three alternatives to strike include mediation, arbitration and fact finder 14-11 ... preferred mechanism for settling labor -management disputes 14-5 Why Do Employees Join Unions? 14-6 To Stay Union-Free Supervisors Should Report union activity to a core management group State and coordinate... effectively in global economy Management in nonunion companies feel compelled to resist unionization Union has lost membership and bargaining power in the private sector Management and unions are... employees •Accommodate special circumstances where appropriate •Ensure due process in performance management •Treat all employees with dignity and respect 14-7 Steps to Prepare Managers for Negotiations