Noe_FHRM9e_PPT_Ch15_accessible.pptx.shrm

Strategic Human Resource Management, 9e, Chapter 15

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2. Chapter 15 Collective Bargaining and Labor Relations freesoulproduction/Shutterstock © 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill.

3. What Do I Need to Know? L O 15-1 Define unions and labor relations and their role in organizations. L O 15-2 Identify the labor relations goals of management, labor unions, and society. L O 15-3 Summarize laws and regulations that affect labor relations. L O 15-4 Describe the union organizing process. L O 15-5 Explain how management and unions negotiate contracts. L O 15-6 Summarize the practice of contract administration. L O 15-7 Describe new approaches to labor-management relations.

4. Role of Unions and Labor Relations 1 Unions Labor unions represent their members’ interests in dealing with employers. The collective bargaining process provides a way to manage the conflict. Labor Relations Field emphasizing labor-management cooperation. Involves a labor relations strategy, negotiating contracts, and administering contracts.

5. Role of Unions and Labor Relations 2 National and International Unions Craft union: members have a particular skill or occupation. Industrial union: members linked by their work in a particular industry. Most national unions are affiliated with the A F L-C I O . Represents labor’s interests in public policy issues. The largest union in the United States is the National Education Association with 3 million members. Stuart O’Sullivan/Getty Images

6. Role of Unions and Labor Relations 3 Local Unions National unions can consist of multiple local units. Most day-to-day interaction between labor and management involves the local union. Membership in a local union depends on its type. Members elect officials and vote on resolutions to strike. Union steward: elected to represent union and ensures that terms of labor contract are enforced.

7. Role of Unions and Labor Relations 4 Trends in Union Membership Peaked in 19 50s reaching over one-third of employees. Now at 10.3% overall; 6.2% of private-sector employment. Decline in union membership due to many factors: Change in structure of economy. Management efforts to control costs. Human resource practices. Government regulation.

8. Figure 15.1 Union Membership Density among U.S. Wage and Salary Workers, 19 76 to 2019 Access the text alternative for slide images. Source: Data for 1973–2001 from B. T. Hirsch and D. A. MacPherson, Union Membership and Earnings Data Book 2001 (Washington, D C: Bureau of National Affairs, 2002), using data from U.S. Current Population Surveys. Data for 2002 through 2019 from Bureau of Labor Statistics, Current Population Survey, https://data.bls.gov, extracted May 13, 2020.

9. Figure 15.2 Union Membership Rates in Selected Countries Access the text alternative for slide images. Source: Organisation for Economic Co-operation and Development, O E C D . Stat , https://stats.oecd.org, accessed May 13, 2020.

10. Role of Unions and Labor Relations 5 Unions in Government Membership among government workers is strong. Government regulations and laws support the right of government workers to organize. Executive Order 10988 established collective bargaining rights. Labor relations are different with government workers. Strikes illegal for federal and state workers in most states. Almost all states prohibit strikes by police/firefighters at local level.

11. Role of Unions and Labor Relations 6 Impact of Unions on Company Performance Organizations are concerned about impact of unionization on productivity, profits, and stock performance. Experts have conflicting views. Research reflects average effects of unions, not individual companies and innovative labor relations. Skillful labor relations can positively influence outcomes.

12. POLLING QUESTION 1 With the decline of union memberships, how do you feel about labor unions in today’s working society? A. They are not very effective. B. They are most useful in the private sector. C. They are most useful in the public sector. D. More industries should have union representation.

13. Goals of Management, Labor Unions, and Society 1 Management Goals Increase the organization’s profits. Keep labor costs low and increase output. Limit increases in wages and benefits. Retain control over work rules and schedules. Maintain flexible operations to meet competitive challenges and customer demands.

14. Goals of Management, Labor Unions, and Society 2 Labor Union Goals Obtain pay and working conditions that satisfy members. Give members a voice in decisions that affect them. Membership is linked to better compensation and benefits. Two-tier wage structures. Regular flow of new members is essential to survival; goals are obtained through power in numbers.

15. Goals of Management, Labor Unions, and Society 3 Labor Unions Goals continued Negotiating contract provisions. Checkoff provision : contract provision under which employer, on behalf of the union, automatically deducts union dues from employees’ paychecks. Membership security. Closed shop. Union shop. Agency shop. Maintenance of membership.

16. Goals of Management, Labor Unions, and Society 4 Societal Goals Union activities take place within context of society. Societal values drive laws/regulations that affect unions. In 2018, the Supreme Court held that public-employee unions may not require workers to pay dues. Society’s goal for unions is to ensure that workers have a voice in how they are treated by their employers.

17. Laws and Regulations Affecting Labor Relations 1 National Labor Relations Act (N L R A) Protects the activities: Union organizing and collective bargaining. Joining a union, whether recognized by employer or not. Going out on strike. Refraining from activity on behalf of the union. Most employees in private sector are covered by N L R A.

18. Laws and Regulations Affecting Labor Relations 2 Laws Amending the N L R A Taft-Hartley Act of 19 47. Allows right-to-work laws: state laws that make union shops, maintenance of membership, and agency shops illegal. Employees free to join a union or not. Unions believe that all employees who receive union benefits should pay union dues. Can be legally applied to the private sector. Landrum-Griffin Act of 19 59. Regulates unions’ actions with regard to their members, including financial disclosure and conduct of elections.

19. Figure 15.3 States with Right-to-Work Laws Access the text alternative for slide images. Sources: National Conference of State Legislatures, “Right to Work Resources,” https://www.ncsl.org, accessed May 13, 2020; E. Watkins, “Unions Notch Win in Deep-Red Missouri with Rejection of Right-to-Work Law,” C N N , https:// www.cnn.com, accessed August 8, 2018.

20. Laws and Regulations Affecting Labor Relations 3 National Labor Relations Board (N L R B) Federal government agency that enforces N L R A. Consists of a five-member board, a general counsel, and 52 regional and other field offices. Conducts and certifies representation elections. Prevents unfair labor practices.

21. Union Organizing 1 The Process of Organizing Union representatives contact employees. Employees invited to sign authorization card. 30 percent must sign for process to continue. If not signed, the N L R B conducts a secret-ballot election. Consent election—all parties agree on terms. Stipulation election—N L R B dictates the terms. Workers vote for or against union representation. The N L R B certifies the union or holds a runoff election.

22. Table 15.2 What Supervisors Should and Should Not Do to Discourage Unions 1 What to Do: Report any direct or indirect signs of union activity to a core management group. Deal with employees by carefully stating the company’s response to pro-union arguments. These responses should be coordinated to maintain consistency and to avoid threats or promises. Take away union issues by following effective management practices all the time: 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. Source: J. A. Segal, “Unshackle Your Supervisors to Stay Union Free,” H R Magazine, June 1998.

23. Table 15.2 What Supervisors Should and Should Not Do to Discourage Unions 2 What to Avoid: Threatening employees with harsher terms and conditions of employment or employment loss if they engage in union activity. Interrogating employees about pro-union or anti-union sentiments that they or others may have or reviewing union authorization cards or pro-union petitions. Promising employees that they will receive favorable terms or conditions of employment if they forgo union activity. Spying on employees known to be, or suspected of being, engaged in pro-union activities.

24. Union Organizing 2 Union Strategies Organizers call or visit employees at home to talk about issues like pay and job security. May offer workers associate union membership . Conduct corporate campaigns . Negotiate provisions into contract. Employer neutrality and card-check provisions.

25. Union Organizing 3 Decertifying a Union Taft-Hartley Act expanded members’ right to be represented by leaders of their own choosing. Decertification: when members vote out existing union. Follows same process as representation election. May not occur when contract is in effect.

26. Collective Bargaining 1 Collective Bargaining Union and management representatives negotiate to arrive at contract defining conditions of employment. Typical contracts include provisions for pay, benefits, work rules, and resolution of workers’ grievances. Bargaining structure varies by situation.

27. Table 15.3 Typical Provisions in Collective Bargaining Contracts 1 Establishment and administration of the agreement Contract duration and reopening and renegotiation provisions. Grievance procedures. Arbitration and mediation. Strikes and lockouts. Contract enforcement. Functions, rights, and responsibilities Management rights clauses. Subcontracting. Union activities on company time and premises. Union-management cooperation. Regulation of technological change. Advance notice and consultation. Wage determination and administration Rate structure and wage differentials. Incentive systems and production bonus plans. Production standards and time studies. Job classification and job evaluation. Wage adjustments —individual and general.

28. Table 15.3 Typical Provisions in Collective Bargaining Contracts 2 Job or income security Hiring and transfer arrangements. Employment and income guarantees. Supplemental unemployment benefit plans. Regulation of overtime, shift work, etc. Reduction of hours to forestall layoffs. Layoff procedures; seniority; recall. Promotion practices. Training and retraining. Relocation allowances. Severance pay and layoff benefit plans. Plant operations Work and shop rules. Rest periods and other in-plant time allowances. Safety and health. Hours of work and premium pay practices. Shift operations. Hazardous work. Discipline and discharge.

29. Table 15.3 Typical Provisions in Collective Bargaining Contracts 3 Paid and unpaid leave Vacations holidays, sick leave. Funeral and personal leave. Military leave and jury duty. Employee benefit plans Health and insurance plans. Pension plans. Profit-sharing, stock purchase, and thrift plans. Bonus plans. Special groups Apprentices and learners. Workers with disabilities. Veterans. Union representatives. Source: Adapted from T. A. Kochan , Collective Bargaining and Industrial Relations (Homewood, I L: Richard D. Irwin, 1980), p. 29. Original data from J. W. Bloch, “Union Contracts—A New Series of Studies,” Monthly Labor Review 87 (October 1964), pp. 1184–85.

30. Collective Bargaining 2 Bargaining over New Contracts Preparation for bargaining is important. Establish objectives for contract, review old contract, gather data, predict likely demands, establish cost of meeting demands. Union and management present proposals. Each side considers proposals. Union and management attempt to reach agreement. When bargaining unsuccessful, work stoppages can ensue.

31. Collective Bargaining 3 Work Stoppages Strike: a collective decision by union members not to work until certain demands or conditions are met. Usually includes picketing. Seldom in anyone’s best interests. Lockout: employer excludes workers from workplace until they meet certain conditions. VALERIE MACON/AFP/Getty Images

32. Figure 15.4 Work Stoppages Involving 1,000 or More Workers Access the text alternative for slide images. Source: Bureau of Labor Statistics, Work Stoppage Data, http://data.bls.gov, accessed May 13, 2020.

33. Collective Bargaining 4 Alternatives to Work Stoppages Mediation. Least formal and most widely used. Mediator hears the views of both sides and facilitates the negotiation process. Fact finder. Most often used for negotiations with governmental bodies. Arbitration. Settlement is binding. Final-offer arbitration. Rights arbitration.

34. Contract Administration Contract Administration Carrying out the terms of the agreement. Resolving conflicts over interpretation or violations of the agreement. Grievance procedure. Process to resolve union-management conflicts. Important means of getting fair treatment in workplace. Key influence on contract administration success.

35. Figure 15.5 Steps in an Employee-Initiated Grievance Procedure Access the text alternative for slide images. Sources: J. W. Budd, Labor Relations, 6th ed. (New York: McGraw-Hill, 2020); J. A. Fossum , Labor Relations (Boston: McGraw-Hill/Irwin, 2002), pp. 448–452; T. Kochan , Collective Bargaining and Industrial Relations (Homewood, I L: Richard D. Irwin, 1980), p. 395.

36. POLLING QUESTION 2 Which statement about labor unions is TRUE? A. Mediation requires each party to abide by the mediator’s decision. B. Integrative bargaining involves a win-lose approach because the issues are considered a fixed pie. C. A union steward represents the issues concerning union employees and is elected by them. D. A strike is when the employer excludes workers from the workplace until they meet certain conditions.

37. New Approaches to Labor Relations 1 Labor–Management Cooperation Traditionally, the two sides were viewed as adversaries. Now, more cooperation between labor and management exists. N L R B supports employees’ involvement in work teams and decision making. Bill Pugliano /Getty Images

38. New Approaches to Labor Relations 2 Nonunion Representation Systems Management-established systems. Representatives of employees meet with management to discuss working conditions, wages and benefits. May violate the N L R B. Worker center. Nonprofit organization offering members services such as training, legal advice, lobbying, and worker advocacy.