Rick Roderick Cross, Gunter, Witherspoon & Galchus, P. C. 500 President Clinton Avenue, Suite 200 Little Rock, Arkan

1. FRONTLINE SUPERVISOR SEMINAR NORTHEAST ARKANSAS SHRM UNION AVOIDANCE Jonesboro, Arkansas August 9, 2011 Rick Roderick Cross, Gunter, Witherspoon & Galchus, P. C. 500 President Clinton Avenue, Suite 200 Little Rock, Arkansas 72201 (501) 371-9999 rroderick@cgwg.com

2. IMPORTANT QUESTIONS! • Do you understand the implications of having a union? • Is having a union really THAT big of a deal?

3. Having a Union Means: • Loss of business control – cannot change working conditions without first negotiating with the union. • You lose authority – the contract restricts you. • Loss of flexibility – must abide by the contract.

4. Having a Union Means: • Adversarial relationships – union makes YOU the enemy. • Supervision against the employees. • Grievance meetings – take time away from work.

5. Having a Union Means: • Paperwork – will increase with need for documenting everything, grievances, etc. • Loss of good employees – good ones won’t put up with the problems. • Want to be treated on individual merits. • Restricted communication – the law requires the union be recognized as the voice of the employees.

6. Having a Union Means: • Increased costs and lost productivity – estimate at least 10-15% increase in cost with a union. • Strikes, work stoppages, and interruptions. • Where there are no unions, there are no strikes. • Where there are unions, there are strikes.

7. Common Reasons for Unionization • Ignoring requests and complaint. • Surly, hard-boiled, or “rough” supervision. • Lack of human, sympathetic, interest in employees. • Disciplining employees in front of others. • Failure to keep promises.

8. Common Reasons for Unionization • Use of threats. • Complicated wage payment systems or unexplained pay shortages. • Inadequate instructions, leading to mistakes. • Unguarded work hazards. • Ignoring or repelling suggestions.

9. Common Reasons for Unionization • Blaming employees unfairly. • Favoritism. • Giving orders without giving reasons. • Poor planning which interrupts work accomplishment and cuts earnings. • Setting up too many rules and regulations.

10. Common Reasons for Unionization • Unequal distribution of overtime; unequal pay for equal service. • Penalizing workers for conditions beyond their control. • Failure to promote from within. • Putting employees on jobs for which they are not suited.

11. Common Reasons for Unionization • It’s often not about money. • It’s about treatment of employees.

12. What Employees Think • Do you know? • Are you sure? • Always ask yourself, what do the employees think about their job, working conditions, management, etc. ?

13. Little Things Bring Big Results • It’s a different world, and the little things count: • Greet employees each day • Call employees by name • Ask employees for advice or opinions • On occasion, talk about things NOT related to work

14. Little Things Bring Big Results - Know about their families - Have a positive attitude - Recognize effort - Reward in public - Never embarrass employees - Counsel in private

15. Little Things Bring Big Results - Don’t be afraid to smile - Protect confidentiality - Be humble - Make employees a part of the team - Be trustworthy - Communicate

16. You ARE the Company to the employees…. Are you doing all these things?

17. POSITIVE EMPLOYEE RELATIONS IS UNION AVOIDANCE!

18. National Labor Relations Act • Protects employee rights to organize • To engage in union organizing and collectively bargain • Strong language to protect employees • Cannot discriminate

19. Union Cards • What are they? • Cards employees sign requesting a union represent them • 30% needed for election petition • Take action before union cards • Union could take months to solicit enough union cards

21. Union Election • Union takes cards to National Labor Relations Board (NLRB) • Need only 30% • NLRB writes company with petition for election • Election date set within 42 days • NLRB conducts election • Secret ballot • Majority of who votes wins

22. Union Organizing Primarily two approaches used: 1. Slow, methodical, calculated approach. Works from inside. Takes time. • “Blitz” campaign. Quick. Fast. Never see it coming.

23. Union Organizing • Slow, steady, calculated approach • Strategic • Union “Salts” • Infiltrates the workplace • Studies policies, practices, issues, etc. • Dissects the plant and company • Finds the problem areas

24. Union Organizing • Slow, steady, calculated approach • Gathers support • Works in secret • Takes time • May take weeks or even months

25. Union Organizing 2. “Blitz” campaign • Never see it coming • Usually done over a weekend or 3 day holiday weekend • Sets up shop at a nearby hotel • Professional sales people used • They “sell” the union

26. Some Signs of Union Organizing • You see an employee writing down the names of people in the department by copying from the time clock cards. • Groups of employee suddenly stop talking when you approach. • You see small groups of employees in unusual gathering places.

27. Some Signs of Union Organizing • Employees from separate departments of different job levels begin meeting. • You note new groups being formed with new informal leaders. • Employees begin hanging around break room and parking lot before/after work.

28. Some Signs of Union Organizing • During breaks or lunch periods you notice unusual, intense conversation or activity. • Employees start leaving the premises for lunch or are absent from customary social get-togethers. • People seem to be going to restrooms much more frequently than in the past.

29. Some Signs of Union Organizing • Employees who are normally friendly and talkative become quiet and uncommunicative. • Employees avoid being seen with you. • Friendly conversation with employees becomes unpleasant.

30. Some Signs of Union Organizing • A former employee is showing up before or after regular working hours and talks with former friends and employees. • Strangers appear on the premises or in work areas. • The nature of rumors on the grapevine changes drastically or the grapevine shuts down.

31. Some Signs of Union Organizing • The nature of employee complaints changes and the frequency increases. • Complaints begin being made by a delegation, not single employees. • Some employees become much more militant and start demanding their rights.

32. Some Signs of Union Organizing • There is a noticeable increase in the questions raised about rules, policies, practices, benefits, etc. • A surge of anti-company graffiti appears on the walls of restrooms, locker rooms, cafeterias, etc.

33. Some Signs of Union Organizing • Down-to-earth employees suddenly develop social consciousness or begin using words associated with group activity. • A previously popular employee suddenly becomes unpopular and is needled by co-workers.

34. Some Signs of Union Organizing • Good workers begin doing poor work or poor workers begin doing good work. • Union cards!

35. Union Cards • If employer verifies that the union has signed cards from a majority of employees in an appropriate bargaining unit, the union becomes the legal bargaining representative for all employees …. WITHOUT AN ELECTION!

36. Union Cards • Do not look at any material offered by the union, especially signed authorization cards. • Do not open a letter from a union, particularly if it is thick and may contain authorization cards. • If such a letter is opened, do not look at the cards.

37. Union Cards • Have another member of management present as a witness. • Respond to the union in writing or in person by saying “I have a good faith doubt that your union represents an uncoerced majority of my employees in an appropriate bargaining unit and I insist on the holding of a properly conducted secret ballot election administered by the NLRB before recognizing your union as their bargaining representative.” • Contact your lawyer.

38. Supervisors • Supervisors are exempt from coverage under the National Labor Relations Act • Supervisors are not eligible to vote in a union election • Supervisors are your best resource to communicate with your employees • Companies are liable for Unfair Labor Practices committed by supervisor • Supervisors can be terminated for disloyalty

39. So, what should I do? • Know for sure who your supervisors are • Learn to spot things, little things, that employees do and say • Use good management practices, good human resources management • Stop it before it starts! • Be proactive! • Make union avoidance part of your management strategy

40. What To Do Know Employee Sentiment • Employee satisfaction is the number one step you can take to avoid unionization. • Knowing the mood of your employees and what issues to work on now, before they are contacted by a union organizer, is absolutely critical.

41. What To DoKnow Employee Sentiment • How do you get information and input from employees? • Talk to them! • Individual meetings – never miss an opportunity • Group meetings • Employee satisfaction survey

42. What To Do • Get information • Too many times, management taken by surprise • Talk to people • Get out of your office – ROAM AROUND • Listen • ID issues – seek resolutions • Be proactive

43. What To DoTrain Your Supervisors! • Supervisors must understand their role as management • Supervisors must understand how to deal with union organizing • Supervisors must understand the basis of the National Labor Relations Act, the do’s and don’t’s to avoid Unfair Labor Practice Charges

44. What To DoTrain Your Supervisors • Supervisors must know what they can say and when to say it • Supervisors must understand they are on the management team and must know the company’s expectations to stay union free • So, train your supervisors!

45. What To DoEducate Employees • Be prepared to educate your employees • Depends on your employee relations and work environment • Be prepared to explain to employees the cost of unions, such as dues

46. What To DoEducate Employees • Be prepared to educate employees on what they can do when confronted with a union organizer or employee who wants them to sign a union authorization card • It is important that your employees know the facts when faced with an authorization card

47. T – I – P - S • T means threaten • I means interrogate • p means promise • s means spy

48. REMEMBER ……….. POSITIVE EMPLOYEE RELATIONS IS UNION AVOIDANCE!

49. HEADS UP! WATCH OUT FOR CHANGING LABOR LAWS COMING OUT OF WASHINGTON, D.C.!

50. THANK YOU! Cross, Gunter, Witherspoon and Galchus, P.C. Offices in Little Rock – Fort Smith – NW Arkansas