Human Resource Management 10 th Edition Chapter 12 LABOR UNIONS & COLLECTIVE BARGAINING

HRM in Action: Change to Win Coalition • New union federation consisting of seven unionsthat broke from AFL-CIO and formally launched rival labor federation representing about 6 million workers in 2005 • Led by Service Employees International Union • Also included are Teamsters, United Food and Commercial Workers, Unite Here, Carpenters’ Union, Laborers’ International Union of North America, and United Farm Workers © 2008 by Prentice Hall

Union Objectives • To secure and, if possible, improve living standards and economic status of members. • To enhance and, if possible, guarantee individual security against threats and contingencies that might result from market fluctuations, technological change, or management decisions. • To influence power relations in social system in ways that favors and does not threaten union gains and goals. © 2008 by Prentice Hall

Union Objectives (Cont.) • To advance welfare of all who work for a living, whether union members or not. • To create mechanisms to guard against use of arbitrary and capricious policies and practices in workplace. © 2008 by Prentice Hall

Union Growth Strategies • Strategically Located Union Members • Organizing Several Big Companies at Once • Pulling Union Through • Political Involvement • Union Salting • Flooding Community • Public Awareness Campaigns • Building Organizing Funds • Befriending Laid-off Workers • Organizing through Card Check © 2008 by Prentice Hall

Strategically Located Union Members • Importance of jobs held by union members significantly affects union power • Few strategically located union members may exert disproportionate amount of power • Truckers or dock workers can affect entire country © 2008 by Prentice Hall

Organizing Several Big Companies at Once • Service Employees International Union(SEIU) in Houston organized janitors at several big companies at once • Negotiated big industry-wide contract • Eliminates each company’s fear of being undercut by competitors if it allows higher wages • Companies stay neutral © 2008 by Prentice Hall

Pulling the Union Through • Put pressure on end user of company’s product • Strike against four Johnson Controls factories that make interior parts for some of country’s best-selling vehicles • GM and Chrysler played active behind-the-scenes role by pressuring JCI to settle dispute © 2008 by Prentice Hall

Political Involvement • Political arm of AFL-CIO is Committee on Political Education (COPE) • Union recommends and assists candidates who will best serve its interests • With friends in government, union in stronger position • Give money to candidates who pledge to help pass pro-labor legislation © 2008 by Prentice Hall

Union Salting • Process of training union organizers to apply for jobs at company and, once hired, work to unionize • Supreme Court has ruled employers cannot discriminate against union salts © 2008 by Prentice Hall

Flooding the Community • Process of union inundating communities with organizers to target particular business • Unions typically choose companies in which nonunionized employees have asked for help in organizing • Target weak managers’ departments as way to appeal to dissatisfied employees © 2008 by Prentice Hall

Public Awareness Campaigns • Labor maneuvers that do not coincide with strike or organizing campaign to pressure employer for better wages, benefits, and the like • Alternative to strikes because more employers are willing to replace striking workers • Employers have less recourse against labor campaigns involving joint political and community groups that support union goals © 2008 by Prentice Hall

Building Organizing Funds • AFL-CIO asks its affiliates to increase organizing funds • Increase funding to organizing institute, which trains organizers, and launches advertising campaign to create wider public support for unions © 2008 by Prentice Hall

Befriending Laid-Off Workers • AFL-CIO hopes castoffs from Enron, WorldCom, and others will become advocates for organizing • Fear and stress break down relationships between management and workers © 2008 by Prentice Hall

Organizing through Card Check • Organizing approach where employees sign card of support if they want unionization • If 50% of work force plus one worker sign card, it is considered a union victory • Expedited ways of polling workers on union representation but no secret-ballot election takes place © 2008 by Prentice Hall

Social outlet • Many people have strong social needs • Take advantage of union-sponsored recreational and social activities that members and their families find fulfilling • People who develop close personal relationships will likely stand together in difficult times © 2008 by Prentice Hall

Opportunity for leadership • Some individuals aspire to leadership roles • Employees with leadership aspirations can often satisfy those aspirations through union membership • Union also has a hierarchy of leadership that begins with the union steward © 2008 by Prentice Hall

Forced Unionization • In 28 states without right-to-work laws, legal for employer to agree with union that new employee must join union after certain period of time (generally 30 days) or be terminated • Referred to as union shop agreement © 2008 by Prentice Hall

Right-to-Work Laws • Prohibit management and unions from entering into agreements requiring union membership as condition of employment • State statutes or constitutional provisions that ban practice of requiring union membership or financial support as condition of employment • 22 states, located primarily in South and West, have adopted such laws © 2008 by Prentice Hall

Peer Pressure • Some will join a union because they are urged to do so by other members of the workgroup • May constantly remind an employee that he or she is not a member of the union • In extreme cases, union members have threatened nonmembers with physical violence and sometimes have carried out these threats © 2008 by Prentice Hall

Union Structure • Local union • National (or international) union • American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) • Change to Win Coalition © 2008 by Prentice Hall

Craft and Industrial Unions • Craft union - Such as Carpenters and Joiners, is typically composed of members of particular trade or skill in specific locality • Industrial union - Consists of all workers in particular plant or group of plants (example, United Auto Workers) © 2008 by Prentice Hall

National Union • Composed of local unions, which it charters • Local union, not individual worker, holds membership in national union • Service Employees International Union is largest and fastest growing national union (1.8 million members) • International Brotherhood of Teamsters has about 1.4 million members © 2008 by Prentice Hall

American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) • Represents labor interests at highest level • Does not engage in collective bargaining • Financed by member national unions • Has little formal power or control • Central trade union federation in U.S. © 2008 by Prentice Hall

The Structure of the AFL-CIO Convention Meets biennially Executive Council President, Secretary-Treasurer, and 33 Vice Presidents Meets at least three times a year General Board Executive Council members and principal officer of each international union affiliate Meets on call of Federation President or Executive Council Executive Officers President and Secretary-Treasurer Department or Organization and Field Services National Headquarters Standing Committees Staff Departments Regional Directors Trade and Industrial Departments Building, Food, Metal, and Maritime Trades, Industrial Union, Public and Railway Employees, Union Label Affiliated National and International Unions Affiliated State Bodies Local Unions of National and International Unions Local Bodies Local unions affiliated directly with AFL-CIO © 2008 by Prentice Hall Local Dept. Councils

Remember the Change to Win Coalition • New union federation consisting of seven unionsthat broke from AFL-CIO and formally launched rival labor federation representing about 6 million workers in 2005 • Led by Service Employees International Union • Also included are Teamsters, United Food and Commercial Workers, Unite Here, Carpenters’ Union, Laborers’ International Union of North America, and United Farm Workers © 2008 by Prentice Hall

Collective Bargaining Defined Performance of mutual obligation of employer and representative of employees to meet at reasonable times and confer in good faith with respect to wages, hours, and other terms and conditions of employment, or the negotiation of an agreement, or any question arising there under, and execution of written contract incorporating any agreement reached if requested by either party, but such obligation does not compel either party to agree to proposal or require making of a concession. © 2008 by Prentice Hall

Bargaining Unit Consists of employees (not necessarily union members) recognized by employer or certified by administrative agency as appropriate for representation by labor organization for purposes of collective bargaining © 2008 by Prentice Hall

Steps for Forming a Bargaining Unit External EnvironmentInternal Environment Signing of Authorization Cards Petition for Election Election Campaign Election and Certification © 2008 by Prentice Hall

Signing Authorization Cards • Document indicating employee wants to be represented by labor organization in collective bargaining • Is there sufficient interest on part of employees to justify unit? • Evidence of interest when at least 30% of employees in workgroup sign authorization cards • Usually need 50% to proceed © 2008 by Prentice Hall

Petition for Election • After authorization cards have been signed, petition for election made to regional NLRB office • NLRB will ordinarily direct that election be held within 30 days © 2008 by Prentice Hall

Election Campaign • Both union and management usually promote causes actively • Cannot threaten loss of jobs or benefits • Cannot misstate important facts • Illegal to incite racial or religious prejudice © 2008 by Prentice Hall

Election and Certification • NLRB monitors secret-ballot election • Board issues certification of results to participants • If majority of employees vote for union, NLRB will certify © 2008 by Prentice Hall

Collective Bargaining • Fundamental to management-organized labor relations in United States • Process does not require either party to make concessions; only compels them to bargain in good faith © 2008 by Prentice Hall

Forms of Bargaining Structures • One company dealing with a single union • Several companies dealing with single union • Several unions dealing with single company • Several companies dealing with several unions © 2008 by Prentice Hall

Collective Bargaining Process EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT Preparing for Negotiation Bargaining Issues Preparing for Negotiation Yes Overcoming Breakdowns Negotiation Breakdowns? No Reaching the Agreement Ratifying the Agreement Administration of the Agreement © 2008 by Prentice Hall

Bargaining Issues • Mandatory bargaining issues - Wages, hours, etc. • Permissive bargaining issues - May be raised but neither side may insist that they be bargained over • Prohibited bargaining issues - Statutorily outlawed © 2008 by Prentice Hall

Bargaining Issues Document that results from collective bargaining process is labor agreementor contract • Recognition • Management Rights • Union Security • Compensation and Benefits • Grievance Procedure • Employee Security © 2008 by Prentice Hall

Union Security • Closed Shop - Arrangement whereby union membership is prerequisite to employment • Union Shop - Requires all employees become members of union after specified period • Maintenance of Membership - Must continue memberships until termination of agreement © 2008 by Prentice Hall

Union Security (Cont.) • Agency Shop - Nonunion members pay union equivalent of membership dues as kind of tax • Exclusive Bargaining Shop - Company must deal with union that has achieved recognition, but employees not obligated to join • Open Shop - Equal terms for union members and nonmembers • Dues Checkoff - Company agrees to withhold union dues © 2008 by Prentice Hall

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 © 2008 by Prentice Hall

Human Resource Management 10 th Edition Chapter 12 LABOR UNIONS & COLLECTIVE BARGAINING