LABOR RELATIONS Union Union Membership Membership •• Decline Decline in in union union membership membership –– Workers Workershave havebecome becomedisenfranchised disenfranchisedfrom fromunions unions –– Many Manyunionized unionizedfirms firmshave havemoved movedoperations operations outside outsideUS US –– Change Changeininnature natureofofwork work&&technology technologyhas has eliminated eliminatedmany manytraditionally traditionallyunionized unionizedmanual manual labor laborjobs jobs –– Unions Unionshave haverefused refusedtotobe beflexible flexibleenough enoughtotoallow allow organizations organizationstotogrow grow&&adapt adapttotochanges changesinin industries industries Why Why Study Study Labor Labor Relations? Relations? •• Unionization Unionization isis norm norm in in many many industries industries •• Contract Contract settlements settlements with with unionized unionized competitors competitors may may impact impacton on HR HR practices, practices, programs, programs, & & policies policies needed needed to to remain remain competitive competitive •• Managers Managers of of non-unionized non-unionized firms firms need needto to know know –– Why Why&&how howemployees employeesform formunions unions –– Legal Legalrequirements requirementsofofrepresentation representation&&collective collectivebargaining bargaining process process Why Why Employees Employees Organize Organize Employees Employees seek seek to to form form unions unions because because of of perceived perceived economic, economic, social social & & political political benefits benefits of of organization organization –– Higher Higheror ormore moreequitable equitablewages wages –– Better Betteror orexpanded expandedbenefits benefits –– Greater Greaterjob jobor oremployment employmentsecurity security –– Affiliation Affiliation&&sense senseofofcommunity community –– Sense Senseofofpower/influence power/influenceininnumbers numbers Strategic Strategic Challenges Challenges of of Organized Organized Labor Labor Organized Organizedlabor labor can can have have significant significantimpact impacton on organizational organizational performance performance –– Employee/management Employee/managementpower powerbalance balanceisisredistributed redistributed –– Brings Bringsinin“outside “outsideplayers” players”whose whosesupport supportmust mustbe begained gainedfor for any anynew new&&ongoing ongoingmanagement managementinitiatives initiatives –– Unionized Unionizedwork worksetting settingcan cangreatly greatlyimpact impactorganization’s organization’scost cost structure structure •• Payroll Payrollexpenses expenses •• Efficiency Efficiencyof ofwork workprocesses processes National National Labor Labor Relations Relations Act Act (NLRA) (NLRA) NLRA, NLRA, also also called called the the Wagner Wagner Act, Act, (1935) (1935) –– Provided Providedrights rightsfor foremployees employeestotoorganize, organize,elect elect representatives, representatives,&&collectively collectivelybargain bargain –– Required Requiredemployers employerstotorecognize recognizerights rightsofof employees employeestotoorganize organize&&bargain bargaincollectively collectivelywith with elected electedrepresentatives representatives –– Act Actregulates regulatesprocess processofofunion/management union/management relations relations –– Created CreatedNational NationalLabor LaborRelations RelationsBoard Board(NLRB) (NLRB)toto oversee oversee&&enforce enforceprovisions provisionsofofAct Act NLRA: NLRA: Six Six Notable Notable Provisions Provisions 1.1 Right Rightof ofemployees employeesto to discuss discussemployment employment terms terms 2.2 Right Rightto tocomplain complainto to third thirdparties, parties,such suchas as customers, customers,clients, clients,& & media media 3.3 Employees Employeeshave haveright rightto to engage engagein inwork work stoppage stoppageor orcollective collective walk walkout outto toprotest protest working workingconditions conditions 4.4 Employees Employeeshave haveright rightto to honor honorpicket picketlines lines without withoutfear fearof of retaliation retaliation 5.5 Employees Employeeshave have conditional conditionalright rightto to solicit solicit& &distribute distributeunion union literature literature 6.6 Employers Employerscannot cannot unilaterally unilaterallyban ban employees employeesaccess accessto to work worksite sitewhile whileoff-duty off-duty Steps Steps in in Organizing Organizing Process Process •• Employees Employees conduct conduct organizing organizing campaign campaign in in which which 30% 30% of of employees employees sign sign “authorization “authorization cards” cards” •• Employees Employees petition petition NLRB NLRB to to hold hold representation representation election election & & to to determine determine bargaining bargaining unit unit •• IfIf union union receives receives majority majority vote vote in in election, election, gains gains representation representation status status to to bargain bargain collectively collectively for for contract contract with with employer employer Behavior Behavior During During Organizing Organizing Campaigns Campaigns NLRA NLRA –– Regulates Regulatesemployer/employee employer/employeeactivities activitiesduring duringorganizing organizing campaigns; campaigns;violations violationsare areconsidered consideredunfair unfairlabor laborpractices practices –– Employers Employerscannot cannotconduct conductreprisals reprisalsagainst againstemployees employeeswho who exercise exercisetheir theirrights rightsas asdefined definedininNLRA NLRA –– Pro-union Pro-unionemployees employeeshave haveright righttotoapproach approachcoworkers coworkers&& express expressunion unionsupport supportduring duringnonworking nonworkingperiods periodsinin nonworking nonworkingareas areas –– Employers Employerscan canrestrict restrictaccess accesstotoemployees employeesby bynonnonemployees employeesififorganizers organizershave haveother othermeans meansofofaccess access&&there there isispolicy policyofofbanning banningsolicitation solicitationby bynon-employees non-employees Collective Collective Bargaining Bargaining •• Collective Collective bargaining bargaining between between union union & & employer employer covers covers various various terms terms & &conditions conditions of of employment employment •• NLRA NLRAclassification classification of of bargaining bargaining items items –– Mandatory Mandatoryitems itemsthat thatmust mustbe benegotiated negotiatediningood goodfaith faith •• Can Canbe bebargained bargainedto toimpasse impasse –– Permissive Permissiveitems itemscan canbe beincluded includedififboth bothparties partiesagree agree •• Cannot Cannotbe bebargained bargainedto toimpasse impasse –– Prohibited Prohibiteditems itemscannot cannotbe benegotiated negotiatedbecause becauseofofillegality illegality under underterms termsofofNLRA NLRAororother otherlaws laws Union Union Security Security Issues Issues Unions Unions attempt attempt to to increase increase security security of of status status by by bargaining bargaining for for –– Union Unionshop shopagreements: agreements:Require Requirenew newemployees employeestoto join joinunion unionafter afterinitial initialemployment employmentperiod period –– Agency Agencyshop shopagreements: agreements:Require Requireemployees employeeswho who choose choosenot nottotojoin joinunion uniontotopay pay“representation “representationfees” fees” totocover cover union’s union’scost costofofrepresenting representingthem them –– Dues Duescheck-off check-offagreement: agreement:Employer Employerdeducts deductsunion union dues duesfrom frompaychecks paychecksofofunion unionemployees employees Failure Failure to to Reach Reach Agreement Agreement Failure Failurein inbargaining bargainingnegotiations negotiationsto toreach reachagreement agreement (impasse) (impasse)may mayresult resultin instrike strike ••Economic Economicstrikes strikes –– Result Resultofofbargaining bargainingimpasse impasseover overwages wagesororother othermonetary-related monetary-related issues issues –– Striking Strikingworkers workerscan canbe bepermanently permanentlyreplaced replacedinineconomic economicstrikes strikes ••Unfair Unfairlabor laborpractice practicestrikes strikes –– –– Employees Employeesstrike strikeininresponse responsetotomanagement’s management’sunfair unfairlabor laborpractices practices Striking Strikingworkers workerscannot cannotbe bepermanently permanentlyreplaced replacedininunfair unfairlabor laborpractice practice strikes strikes ••Wildcat Wildcatstrikes strikes –– Unauthorized Unauthorizedstrikes strikesby byworkers workerswho whowalk walkout outininviolation violationofof collective collective bargaining bargainingagreement agreement Related Related Bargaining Bargaining Issues Issues •• Government Government workers workers –– Prohibited Prohibitedby bylaw lawfrom fromstriking striking –– Must Mustseek seekarbitration arbitration •• Organizations Organizations can can prevent prevent strikes strikes by by –– Using Usingmediation mediationtotorestart restartbargaining bargainingprocess process –– Agreeing Agreeingtotosubmit submitunresolved unresolvedissue(s) issue(s)totobinding binding arbitration arbitration Unions Unions Today Today •• Recruit Recruit in in organizations organizations & & industries industries with with which which they they have have no no previous previous affiliation affiliation •• Rely Rely on on technology technology •• Increasing Increasing role role of of social social media media Reading Reading 12.1 12.1 Putting Putting aa Big Big Chill Chill on on aa “Big “Big Hurt” Hurt” Salting Saltinginvolves involvesunion unionmembers membersapplying applyingfor foremployment employment with withan anemployer employerthe theunion unionisistrying tryingto toorganize organizeand andthen then attempting attemptingto toorganize organizefrom fromwithin within The TheSupreme SupremeCourt Courtfirst firstruled ruledthat thatthis thispractice practicewas wasnot not illegal illegalunder underthe theNLRA, NLRA,saying sayingthe theapplicants applicantscould couldnot notbe be discrimination discriminationagainst againstSOLELY SOLELYon onthe thebasis basisof oftheir theirstatus status as asaa“salt.” “salt.” Later Lateraafederal federalcourt courtfound foundthat thatunion unionorganizers organizerscould couldlie lie about abouttheir theirstatus statusas assalts saltson onjob jobapplication applicationas aslong longas asthey they did didnot notmisrepresent misrepresenttheir theircredentials, credentials,skills skillsor or qualifications qualificationsfor foremployment employment Reading Reading 12.1 12.1 Putting Putting aa Big Big Chill Chill on on aa “Big “Big Hurt” Hurt” Employers Employersthen thenfought foughtback backthrough throughthe theuse useof ofpreferential preferential hiring hiringcriteria criteriaas asaameans meansof ofexcluding excludingsalts saltsfrom from consideration considerationfor foremployment employmentwith withsuccess success In Inthe thelatest latestcase, case,the theNLRB NLRBruled ruledthat thatapplicants, applicants,including including salts, salts,had hadto tohave haveaagenuine genuineinterest interestin inemployment employmentto tobe be protected protectedunder underthe theNLRA NLRA The Thecase casehowever howeverwas wasdecided decidedby byaavery veryslim slimmajority majoritywith with aascathing scathingdissent dissentso soititisislikely likelythat thatthis thisissue issuewill will continue continueto topresent presentitself itselfin inorganizing organizingcampaigns campaignsas as unions unionsfight fightfor fortheir theirlivelihoods livelihoods Reading Reading12.2 12.2––Social SocialMedia, Media,Employee EmployeePrivacy Privacyand and Concerted ConcertedActivity: Activity:Brave BraveNew NewWorld Worldor orBig BigBrother? Brother? Why Whyemployers employersengage engagein inmonitoring monitoring •• to toprotect protectthe theemployer employerfrom fromaavariety varietyof oflegal legalliabilities liabilities which whichcould couldcome comeabout aboutas asthe theresult resultof ofthe thecontent contentof of such suchcommunications; communications; •• to todetermine determinethe theextent extentto towhich whichemployees employeesare areactually actually doing doingtheir theirjobs jobsduring duringwork workhours hoursand andnot notengaging engagingin in distracting distractingpersonal personalbusiness; business;and and •• electronic electronicmedia mediacan canbe beaameans meansfor fordisgruntled disgruntled employees employeesto totransmit transmitconfidential confidentialfiles filesor orprovide provideaccess access to tosecure secureparts partsof ofthe theemployer’s employer’swebsite websiteor orintranet intranet Reading Reading12.2 12.2––Social SocialMedia, Media,Employee EmployeePrivacy Privacyand and Concerted ConcertedActivity: Activity:Brave BraveNew NewWorld Worldor orBig BigBrother? Brother? To Todate, date,courts courtshave haveconsistently consistentlyheld heldthat thatemployees employeesdo donot nothave haveany anyreasonable reasonable expectation expectationofofprivacy privacyregarding regardingonline onlinecommunication, communication,including includinginternet internetusage usage and andwork worke-mail e-mailsystems systems employers employersface facean anethical ethicalquestion questionrelative relativetotowhether, whether,as aspart partof ofdue duediligence diligenceinin the thehiring hiringprocess, process,they theyshould shouldscour scouronline onlinenetworks networksand andsources sourcestotodiscover discover information informationabout aboutprospective prospectivehires hires National NationalLabor LaborRelations RelationsBoard Boardhas hasintervened intervenedon onbehalf behalfofofemployees employeesand andtheir their social socialmedia mediaactivities activitiesrelated relatedtototheir theiremployment employment ininorder ordertotoreceive receiveprotection protectionthat thatthe theemployee’s employee’sactions actionsor orcommunications communicationscan can not notsimply simplybe beon onher herororhis hisown ownbehalf behalfnor norshould shouldthe theemployee employeedisparage disparagethe the employer, employer,display displayblatant blatantinsubordination insubordinationorordistribute distributeororpublicize publicizeconfidential confidential information informationtotowhich whichthe theemployee employeeisisprivy; privy;no nocourt courtrulings rulingson onthis thisyet yet ... regulatesprocess processofofunion/management union/management relations relations –– Created CreatedNational NationalLabor LaborRelations RelationsBoard Board(NLRB) (NLRB)toto oversee oversee&&enforce... power/influenceininnumbers numbers Strategic Strategic Challenges Challenges of of Organized Organized Labor Labor Organized Organizedlabor labor can can have have significant significantimpact impacton on organizational... expenses •• Efficiency Efficiencyof ofwork workprocesses processes National National Labor Labor Relations Relations Act Act (NLRA) (NLRA) NLRA, NLRA, also also called called the the Wagner Wagner