Chapter 14 The Dynamics of Labor Relations

Copyright © 2004 South-Western. All rights reserved.
PowerPoint Presentation by Charlie Cook

Copyright © 2004 South-
Western. All rights reserved. 14–2
Objectives
After studying this chapter, you should be able to:
1. Identify and explain the principal federal laws that
provide the framework for labor relations.
2. Explain the reasons employees join unions.
3. Describe the process by which unions organize
employees and gain recognition as their bargaining
agent.
4. Discuss the bargaining process and the bargaining
goals and strategies of a union and an employer.

Objectives (cont’d)
After studying this chapter, you should be able to:
5. Differentiate the forms of bargaining power that a
union and an employer may utilize to enforce their
bargaining demands.
6. Describe a typical union grievance procedure and
explain the basis for arbitration awards.
7. Discuss some of the contemporary challenges to
labor organizations.

Major Labor Laws
• Railway Labor Act (RLA) of 1926
• Norris LaGuardia Act (Anti-Injunction Act)
• Wagner Act (National Labor Relations Act) of
1935
• Taft-Harley Act (Labor-Management Relations
Act) of 1947
• Landrum-Griffin Act (Labor-Management
Disclosure Act) of 1959
Presentation Slide 14–1

Government Regulation of Labor Relations
• The Railway Labor Act (RLA) of 1926
Purpose of the act is to avoid service interruptions
resulting from disputes between railroads and their
operating unions.
National Mediation Board
National Railway Adjustment Board
• The Norris-LaGuardia Act of 1932
Restricts the ability of employers to obtain an
injunction against unions for their lawful activities.

Government Regulation of Labor Relations
• The Wagner Act (National Labor Relations Act)
of 1935
Protects employee rights to organize and bargain
collectively through representatives of their choice.
Created the National Labor Relations Board (NLRB)
to govern labor relations in the United States.
 Holds secret ballot union representation elections.
 Prevents and remedies unfair labor practices.

Wagner Act
• Section 7 of the Act guarantees these rights:
To self-organization, to form, join, or assist labor
organizations, to bargain collectively through freely
chosen representatives.
To engage in concerted activities, for the purpose of
collective bargaining or other mutual aid or protection.
To refrain from any or all of such activities except to
the extent that such right may be affected by an
agreement requiring membership in a labor
organization as a condition of employment.

Unfair Labor Practices (ULPs)
• Section 8 of the Wagner Act outlawed employer
practices that deny employees their rights and
benefits:
Interference with Section 7 rights
Domination of a union (company union)
Discrimination against union members
Arbitrary discharge of union members
Refusal to bargain with the union

Amendments to the Wagner Act
• The Taft-Hartley Act (The Labor-Management
Relations Act) of 1947
Balances the rights and duties of labor and
management in the collective bargaining arena by
defining unfair union practices.
• The Landrum-Griffin Act (Labor-Management
Reporting and Disclosure Act) of 1959
Safeguards union member rights and prevents
racketeering and other unscrupulous practices by
employers and union officers.

Unfair Union Practices
Interfering with Section 7 rights of employees
Interfering with representation elections
Influencing employers to discriminate with
regard to union membership
Refusal to bargain collectively with employer
Interference with certified employee
representative’s relationship with employer
Assessment of excessive initiation fees and
dues on bargaining unit members
“Featherbedding”

Labor Relations Process
1. Workers desire collective representation
2. Union begins its organizing campaign
3. Collective negotiations lead to a contract
4. The contract is administered

The Labor Relations
Process
Figure 14.1

Why Employees Unionize
• As a result of economic needs (wages and
benefits)
• Dissatisfaction with managerial practices
• To fulfill social and status needs.
• Unionism is viewed as a way to achieve results
they cannot achieve acting individually
• To comply with union-shop provisions of the
labor agreement in effect where they work

Organizing
Campaigns
Union/Employee ContactUnion/Employee ContactUnion/Employee ContactUnion/Employee Contact
Initial OrganizationalInitial Organizational
MeetingMeeting
Initial OrganizationalInitial Organizational
MeetingMeeting
Formation of In-HouseFormation of In-House
CommitteeCommittee
Formation of In-HouseFormation of In-House
CommitteeCommittee
Election Petition andElection Petition and
Voting PreparationVoting Preparation
Election Petition andElection Petition and
Voting PreparationVoting Preparation
Contract NegotiationsContract NegotiationsContract NegotiationsContract Negotiations
Steps in theSteps in the
OrganizingOrganizing
ProcessProcess
Steps in theSteps in the
OrganizingOrganizing
ProcessProcess

United Food And Commercial Workers
International Union Authorization Card
HRM 2

Aggressive Organizing Tactics
• Political Involvement
• Union Salting
• Organizer Training
• Corporate Campaigns
• Information Technology
Union NOW!!

Employer Tactics Opposing Unionization
• Stressing favorable employer-employee relationship
experienced without a union.
• Emphasize current advantages in wages, benefits, or
working conditions the employees may enjoy
• Emphasize unfavorable aspects of unionism: strikes,
union dues, abuses of legal rights
• Use statistics to show that unions commit large numbers
of unfair labor practices.
• Initiate legal action when union members and leaders
engage in unfair labor practices

How Employees Become Unionized
• Bargaining Unit
A group of two or more employees who share
common employment interests and conditions and
may reasonably be grouped together for purposes of
collective bargaining.
• Exclusive Representation
The legal right and responsibility of the union to
represent all bargaining unit members equally,
regardless of whether employees join the union or
not.

NLRB
Election
Poster
HRM 2

The Labor Organization Process
Workers Seek Collective Representation
Union Begins TheUnion Begins The
Organizing ProcessOrganizing Process
Collective Bargaining For A ContractCollective Bargaining For A Contract
Contract AdministrationContract Administration
ManagementManagement LaborLabor
Representation Election is HeldRepresentation Election is Held

Impact of Unionization on Managers
• Challenges to Management Prerogatives
Management prerogatives versus union participation
in decision-making in the work place.
• Loss of Supervisory Authority
Constraints on management in directing and
disciplining the work force by terms of the collective
bargaining agreement.

Union Structure and Governance
• Craft Unions
• Industrial Unions
• Employee Associations
• AFL-CIO
• National Unions
• Local Unions

Types of Unions
• Craft unions
Unions that represent skilled craft workers
• Industrial unions
Unions that represent all workers—skilled,
semiskilled, unskilled—employed along industry lines
• Employee associations
Labor organizations that represent various groups of
professional and white-collar employees in labor-
management relations.

Structure of the AFL-CIO
GENERAL BOARDGENERAL BOARD
Executive members andExecutive members and
principal officer of eachprincipal officer of each
international union affiliateinternational union affiliate
Meets upon call of federationMeets upon call of federation
president of executive councilpresident of executive council
GENERAL BOARDGENERAL BOARD
Executive members andExecutive members and
principal officer of eachprincipal officer of each
international union affiliateinternational union affiliate
Meets upon call of federationMeets upon call of federation
president of executive councilpresident of executive council
StandingStanding
committeescommittees
StandingStanding
committeescommittees
StaffStaff
departmentsdepartments
StaffStaff
departmentsdepartments
Affiliated national andAffiliated national and
international unionsinternational unions
Affiliated national andAffiliated national and
international unionsinternational unions
Local unions of nationalLocal unions of national
and international unionsand international unions
Local unions of nationalLocal unions of national
and international unionsand international unions
Local unions affiliatedLocal unions affiliated
directly with AFL-CIOdirectly with AFL-CIO
Local unions affiliatedLocal unions affiliated
directly with AFL-CIOdirectly with AFL-CIO
Affiliated state bodiesAffiliated state bodiesAffiliated state bodiesAffiliated state bodies
Local bodiesLocal bodiesLocal bodiesLocal bodies

Structure and Functions of the AFL-CIO
• The “House of Labor”
 Disseminates labor policy developed by leaders of affiliated
unions.
 Coordinates organizing activities among affiliated unions.
 Provides research and other assistance through its various
departments.
 Lobbies before legislative bodies on labor subjects
 Publicizes the concerns and benefits of unionization
 Resolves disputes between different unions as they occur
(preventing “raiding”)

Typical Organization of a Local Union
Local Union Meeting (Normally Monthly)Local Union Meeting (Normally Monthly)
PresidentPresident
Business
Representative
Business
Representative
Various Committee ChairpersonsVarious Committee Chairpersons
Vice-PresidentsVice-Presidents
Secretary/TreasurerSecretary/Treasurer
Sergeant at ArmsSergeant at Arms
Training and
Education
Training and
Education
Grievance
Committee:
Chief Steward and
Shop Stewards
Grievance
Committee:
Chief Steward and
Shop Stewards
Collective
Bargaining
Collective
Bargaining
SocialSocial
Local Union MembersLocal Union Members

Structure and Functions of Local Unions
• Local Officers
Elected officials who lead the union and serve on the
bargaining committee for a new contract.
• Union Steward
An employee, as a nonpaid union official, represents
the interests of members in their relations with
management.
• Business Unionism
The term applied to the goals of U.S. labor
organizations, which collectively bargain wages,
hours, job security, and working conditions.

Types of Arbitration
• Compulsory Binding Arbitration
A process for employees such as police officers,
firefighters, and others in jobs where strikes cannot
be tolerated to reach agreement.
• Final-offer Arbitration
The arbitrator must select one or the other of the final
offers submitted by the disputing parties with the
award is likely to go to the party whose final
bargaining offer has moved the closest toward a
reasonable settlement.

The
Collective
Bargaining
Process
Figure 14.2
PREPARE FORPREPARE FOR
NEGOTIATIONSNEGOTIATIONS
------------------------------------------------------------
• Gather dataGather data
• Form bargaining termsForm bargaining terms
PREPARE FORPREPARE FOR
------------------------------------------------------------
• Gather dataGather data
• Form bargaining termsForm bargaining terms
DEVELOPDEVELOP
STRATEGIESSTRATEGIES
------------------------------------------------------------
• Develop managementDevelop management
proposals and limits ofproposals and limits of
concessionsconcessions
• Consider opponents’ goalsConsider opponents’ goals
• Make strike plansMake strike plans
DEVELOPDEVELOP
STRATEGIESSTRATEGIES
------------------------------------------------------------
• Develop managementDevelop management
proposals and limits ofproposals and limits of
concessionsconcessions
• Consider opponents’ goalsConsider opponents’ goals
• Make strike plansMake strike plans
CONDUCTCONDUCT
----------------------------------------------------------------
• Bargain in good faithBargain in good faith
• Analyze proposalsAnalyze proposals
• Resolve proposalsResolve proposals
• Stay within bargaining zoneStay within bargaining zone
CONDUCTCONDUCT
----------------------------------------------------------------
• Bargain in good faithBargain in good faith
• Analyze proposalsAnalyze proposals
• Resolve proposalsResolve proposals
• Stay within bargaining zoneStay within bargaining zone
FORMALIZEFORMALIZE
AGREEMENTAGREEMENT
------------------------------------------------------------
• Clarify contract languageClarify contract language
• Ratify agreementRatify agreement
FORMALIZEFORMALIZE
AGREEMENTAGREEMENT
------------------------------------------------------------
• Clarify contract languageClarify contract language
• Ratify agreementRatify agreement
11 22
44 33
Strikes Legal
requirements
Lockouts Strike
replacements
Boycotts

The Bargaining Process
• Collective Bargaining Process
The process of negotiating a labor agreement,
including the use of economic pressures by both
parties.
• Bargaining Zone
Area within which the union and the employer are
willing to concede when bargaining.
• Interest-based Bargaining
Problem-solving bargaining based on a win-win
philosophy and the development of a positive long-
term relationship.

The Bargaining Zone and
Negotiation Influences
Figure 14.3
Source: Adapted from Ross Stagner and Hjalmar Rosen,
Psychology of Union-Management Relations (Belmont,
Calif.: Wadsworth Publishing Company, 1965), 96. Adapted
with permission from Brooks/Cole Publishing Co.

Items In A Labor Agreement
• Typical clauses will cover:
Wages
Vacations
Holidays
Work schedules
Management rights
Union security
Transfers
Discipline
Grievance procedures
No strike/no lockout
clause
Overtime
Safety procedures
Severance pay
Seniority
Pensions and benefits
Outsourcing
HRM 5a

Items In A Labor Agreement (cont’d)
• Progressive clauses will cover:
Employee access to records
Limitations on use of performance evaluation
Elder care leave
Flexible medical spending accounts
Protection against hazards of technology equipment
(VDTs)
Limitations against electronic monitoring
Procedures governing drug testing
Bilingual stipends
Domestic partnership benefits
HRM 5b

Management and Union Power
in Collective Bargaining
• Bargaining Power
The power of labor and management to achieve their
goals through economic, social, or political influence.
• Union Bargaining Power
Strikes, pickets, and boycotts
• Management Bargaining Power
Hiring replacement workers
Continuing operations staffed by management
Locking out employees

PicketingStriking
Union Power in Collective Bargaining
Boycotting
Boycott
Our
Employer
This Union
On Strike
Unfair
On
Strike
Don’t
Buy Here

Employer Power in Collective Bargaining
Demanding concessionsDemanding concessionsDemanding concessionsDemanding concessions
Locking out workersLocking out workersLocking out workersLocking out workers
Management methods for applying
economic pressure during bargaining:
Management methods for applying
economic pressure during bargaining:
Outsourcing normal workOutsourcing normal workOutsourcing normal workOutsourcing normal work
Hiring replacement workersHiring replacement workersHiring replacement workersHiring replacement workers

Union Security Agreements
• Dues Checkoff
Gives the employer the responsibility of withholding
union dues from the paychecks of union members
who agree to such a deduction.
• “Shop” Agreements
Require employees to join or support the union.
Union shop requires employee membership.
Agency shop allows voluntary membership;
employee must pay union dues and fees.

Five-Step
Grievance
Procedure
• Grievance Procedure
A formal procedure that
provides for the union to
represent members and
nonmembers in
processing a grievance
Figure 14.4

Grievance Arbitration
• Rights Arbitration
Arbitration over interpretation of the meaning of
contract terms or employee work grievances.
• Fair Representation Doctrine
The doctrine under which unions have a legal
obligation to provide assistance to both members and
nonmembers in labor relations matters.

Grievance (Rights) Arbitration
Submission agreement and awardsSubmission agreement and awardsSubmission agreement and awardsSubmission agreement and awards
Rights arbitration and EEO conflictsRights arbitration and EEO conflictsRights arbitration and EEO conflictsRights arbitration and EEO conflicts
Significant issues in using arbitration
as a method for dispute resolution:
Significant issues in using arbitration
as a method for dispute resolution:
Deciding to use binding arbitrationDeciding to use binding arbitrationDeciding to use binding arbitrationDeciding to use binding arbitration
Fair Representation DoctrineFair Representation DoctrineFair Representation DoctrineFair Representation Doctrine
Methods for choosing an arbitratorMethods for choosing an arbitratorMethods for choosing an arbitratorMethods for choosing an arbitrator

The Arbitration Process
• Arbitrator declares the hearing open and obtains
the submission agreement.
• Parties present opening statements.
• Each side presents its case using witnesses and
evidence; witnesses can be cross examined.
• Parties make closing statements.
• Arbitrator closes hearing and designates date
and time for rendering the award.

The Arbitration Decision
• Four factors arbitrators use to decide cases:
The wording of the labor agreement (or employment
policy in nonunion organizations).
The submission agreement (statement of problem
to be solved) as presented to the arbitrator.
Testimony and evidence offered during the hearing.
Arbitration criteria or standards (similar to standards
of common law) against which cases are judged.

Current Challenges to Unions
Employers’ focus onEmployers’ focus on
maintaining nonunion statusmaintaining nonunion status
Employers’ focus onEmployers’ focus on
maintaining nonunion statusmaintaining nonunion status
Important issues confronting unionsImportant issues confronting unionsImportant issues confronting unionsImportant issues confronting unions
Foreign competition andForeign competition and
technological changetechnological change
Foreign competition andForeign competition and
technological changetechnological change
The long-term decrease inThe long-term decrease in
union membershipunion membership
The long-term decrease inThe long-term decrease in
union membershipunion membership

Chapter 14 The Dynamics of Labor Relations

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Chapter 14 The Dynamics of Labor Relations

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