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COLLECTIVE BARGAINING

COLLECTIVE BARGAINING. Chapter Objectives. Discuss whether or not an adversarial relationship exists between union and management. Explain labor-management relations and individual bargaining. Describe labor-management relations and collective bargaining.

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COLLECTIVE BARGAINING

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  1. COLLECTIVE BARGAINING

  2. Chapter Objectives • Discuss whether or not an adversarial relationship exists between union and management. • Explain labor-management relations and individual bargaining. • Describe labor-management relations and collective bargaining. • Explain the psychological aspects of collective bargaining.

  3. Chapter Objectives (Continued) • Describe the factors involved in preparing for negotiations. • Explain typical bargaining issues. • Describe the process of negotiating the agreement. • Identify ways to overcome breakdowns in negotiations.

  4. Chapter Objectives (Continued) • Describe what is involved in ratifying the agreement. • Explain factors involved in administering the agreement. • Describe collective bargaining in the public sector.

  5. Individual Bargaining • Employment at will – unwritten contract created when employee agrees to work, but no agreement exists as to how long parties expect employment to last

  6. Individual Bargaining (Continued) • Seniority means little • Concept of supply and demand • Employment at will

  7. Collective Bargaining Fundamental to management-organized labor relations in United States

  8. Forms of Bargaining Structures • One company dealing with a single union • Several companies dealing with single union • Several unions dealing with a single company • Several companies dealing with several unions

  9. Union/Management Relationships • Conflict • Armed truce • Power bargaining • Accommodation • Cooperation • Collusion

  10. Collective Bargaining Process • Preparing for negotiation • Bargaining issues • Negotiation • Negotiation breakdown • Reaching the agreement • Ratifying the agreement • Administration of the agreement

  11. Psychological Aspects of Collective Bargaining • Difficult because process is an adversarial situation and must be dealt with as such • Psychological aspects vitally important

  12. Preparing for Negotiations • The Borg-Warner Doctrine, derived from the Supreme Court decision in the case of NLRB v. Wooster Division of Borg-Warner Corporation (1958), empowered the NLRB to categorize bargaining issues as: • Mandatory - wages, hours, etc. • Permissive – may be discussed, i.e., representation of the union on the company Board of Directors. Also referred to as voluntary bargaining • Prohibited - statutorily outlawed, i.e., closed shop or proposing work rules that would violate the Civil Rights Act

  13. Bargaining Issues Document that results from collective bargaining process is labor agreement or contract • Recognition • Management Rights • Union Security • Compensation and Benefits • Grievance Procedure • Employee Security

  14. Recognition • Appears at the beginning of the labor agreement • Identifies the union that is recognized as the bargaining representative • Describes the bargaining unit

  15. Management Rights Section that is often (but not always) written into labor agreement which spells out rights of management

  16. Union Security • Closed Shop -Arrangement whereby union membership is a prerequisite to employment – outlawed by Taft-Hartley, modified by Landrum-Griffin to allow for the construction industry only • Union Shop- Requires that all employees become members of the union after a specified period • Maintenance of Membership - Must continue their memberships until the termination of the agreement

  17. Union Security (Continued) • Agency Shop - Nonunion members pay union the equivalent of membership dues as a kind of tax • Exclusive Bargaining Shop - Company must deal with union that has achieved recognition, but employees are not obligated to join • Open Shop – Equal terms for union members and nonmembers • Dues Checkoff - Company agrees to withhold union dues

  18. Compensation and Benefits • Wage rate schedule • Overtime and premium pay • Jury pay • Layoff or severance pay • Holidays • Vacation • Family care

  19. Grievance Procedure • Means by which employees can voice dissatisfaction with specific management actions • Procedures for disciplinary action by management • Termination procedure that must be followed

  20. Employee Security • Seniority • Grievance handling procedures; typical model: • Complaint of ULP must be initiated within a prescribed time period • Normally filed with front-line supervisor, who meets with Ee to attempt to resolve • IF unacceptable, union has prescribed time frame to appeal • Same basic process, escalated to higher levels of union/mgmt • IF unacceptable, then goes to officer level • IF unacceptable, then arbitration per labor contract terms

  21. Job-Related Factors Many of rules governing employee actions on job are included

  22. Negotiating the Agreement • Begins with each side presenting initial demands • Suggests a certain amount of give and take • Each side does not expect to obtain all demands presented

  23. Breakdowns in Negotiations • Third party intervention • Union strategies for overcoming breakdowns • Management strategies for overcoming breakdowns

  24. Third Party Intervention • Mediation - neutral party comes in when impasse has occurred • Arbitration – impartial third party makes binding decision to settle dispute • Sources of mediators and arbitrators • Federal Mediation and Conciliation Service (FMCS), established under Taft-Hartley • American Arbitration Association (AAA)

  25. Union Strategies for Overcoming Negotiation Breakdowns • Strikes – union members refuse to work to pressure management in negotiations • Boycotts – union members agree to refuse to use or buy firm’s products

  26. Management Strategies for Overcoming Negotiation Breakdowns • Lockout – keep employees out; operate firm by placing management and nonunion workers in striking workers’ jobs • Hire replacement for strikers

  27. Ratifying the Agreement • May be more difficult for union • Until approved by majority of members, proposed agreement is not final

  28. Administration of the Agreement • Larger and perhaps more important part of collective bargaining • Seldom viewed by public • Agreement establishes the union-management relationship for duration of the contract

  29. Collective Bargaining for Federal Employees • Executive Order 10988 (1962) established basic framework of collective bargaining in federal agencies • Later transferred to Title VII of the Civil Service Reform Act of 1978 • Established Federal Labor Relations Authority (FLRA), modeled after the NLRB, to manage the process of negotiation with unions that represent federal Ee’s • Title V of the U.S. Code, which dictates personnel rules for federal employees, narrows the EO somewhat by taking wages off the table, except for U.S. Postal Service workers

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