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5. Meeting Other HR Goals. Collective Bargaining and Labor Relations Managing Human Resources Globally Creating and Maintaining High-Performance Organizations. Role of Unions and Labor Relations Goals of Each Group Laws and Regulations Affecting Labor Relations Union Organizing
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5 Meeting Other HR Goals Collective Bargaining and Labor Relations Managing Human Resources Globally Creating and Maintaining High-Performance Organizations
Role of Unions and Labor Relations Goals of Each Group Laws and Regulations Affecting Labor Relations Union Organizing Collective Bargaining Contract Administration Labor-Management Cooperation Collective Bargaining and Labor Relations 1 4 C H E A P T R
Ch. 14 Learning Objectives • Define unions and labor relations and their role in organizations. • Identify the labor relations goals of management, labor unions, and society. • Summarize laws and regulations that affect labor relations • Describe the union organizing process • Explain how management and unions negotiate contracts. • Summarize the practice of contract administrations. • Describe more cooperative approaches to labor-management relations.
Ch. 14 Learning Objectives • Explain how management and unions negotiate contracts. • Summarize the practice of contract administrations. • Describe more cooperative approaches to labor-management relations.
Role of Unions • Unions • Organizations formed for the purpose of representing their members’ interests in dealing with employers • Unions make up _____ % of the US private-sector workforce? • 39% • 29% • 19% • 9%
Role of Labor Relations • Field that emphasizes skills managers and union leaders can use to minimize costly forms of conflict (such as strikes) and seek win-win solutions to disagreements. • Involves three levels of decisions: • Labor relations strategy • Negotiating contracts • Administering contracts
National and International Unions • Craft Union • Members all have a particular skill or occupation (e.g., IBEW) • Industrial union • Members are linked by their work in a particular industry (e.g., CWA) • AFL-CIO • An association that seeks to advance the shared interests of its member unions at the national level
Local Unions • Local Unions elect officers • National unions provide assistance during bargaining talks • Union steward • An employee elected by union members to represent them in ensuring that the terms of the labor contract are enforced
Trends in Union Membership Figure 14.2
Impact of Unions on Performance • Positive effects include • Reduced turnover • Greater attention by management on employee ideas and concerns • Negative effects include: • More work rules and limitations on workloads (less flexibility for management) • Strikes and work slowdowns • The relationship between productivity and membership in unions is unclear
Goals of Each Group • With regard to labor relations, what are the goals of • Management? • Union? • Society?
National Labor Relations Act (NLRA) • Federal law passed in 1935 that supports collective bargaining and sets out the rights of employees to form unions • Provides the right to: • Union organizing • Join a union • Striking to secure better working conditions • Refrain from activity on behalf of the union
National Labor Relations Act (NLRA) Table 14.1
Laws Amending the NLRA • Taft-Hartley Act of 1947 • Established unfair labor practices on union’s part • Established right-to-work laws • Allows states to enact laws that do not require union membership or payment of union dues • Landrum-Griffin Act of 1959 • Regulates union activities • Establishes and protects rights of union members
Federal government agency that enforces the NLRA NLRB has two primary functions Conduct and certify representation elections Prevents unfair labor practices National Labor Relations Board
Test Your Knowledge True (A) or False (B) • The NLRA established unfair labor practices on the part of the union. • The NLRB determines which states are Right-to-Work • In Right-to-Work states, employees do not have to become members of the union • In states without Right-to-Work laws unions can refuse to hire non-union members. • Protection from union misconduct was established by the Landrum-Griffin Act.
Union’s initiate an organizing campaign Authorization cards are distributed 30%of employees must sign in order for the process to continue The Process of Organizing
What strategies can management use during this organizing process? What strategies do unions use to engender support from employees? Organizing Process Strategies
Unfair Labor Practices: TIPS • Threaten • Threaten employees with termination or to close down the company if the union is voted for • Interrogate • Ask employees how they plan to vote • Promise • Promise employees pay increases if they vote against the union • Spy • Have someone spy on union meetings from management • One more…..Refusing to bargain collectively in good faith (also applies to Unions)
Test Your KnowledgeWhich of the following is a ULP? • Enforcing disciplinary policies only to those who have expressed interest in a union • Showing employees articles about negative aspects of unions that occurred elsewhere • Email employees asking them to respond with how they plan to vote in the union election • Tell employees the disadvantages of having a union • Enforcing disciplinary policies when deserved to a pro-union employee • Promise employees an additional week of vacation if they vote against the union
Negotiation between union representatives and management representatives to arrive at a contract defining conditions of employment for the term of the contract and to administer that contract What provisions do contracts typically include? Collective Bargaining
Bargaining over New Contracts • The outcome of contract negotiations impacts • Labor costs, productivity, ability to compete • Different approaches to bargaining include: • Distributive bargaining – fixed “pie” • Integrative bargaining – find win-win solutions • Attitudinal structuring – builds trust • Intra-organizational bargaining – resolves internal conflicts within union or management groups
Strike A collective decision by union members not to work until certain demands or conditions are met Alternatives to Strikes Mediation Fact finder Arbitration When Bargaining Breaks Down
Contract Administration • Contract Administration • Involves carrying out the terms of agreement • Resolving conflicts over interpretation or violation of the agreement • Grievance Procedure - Process for resolving conflicts • Employee talks to the supervisor • If not resolved, employee talks to union steward • Union puts grievance in writing and submits to line manager • Steward meets with management representatives
Labor-Management Cooperation • Cooperation between labor and management typically includes • Employee involvement in decisions • Self-managed employee teams • Labor-management problem-solving teams • Broadly defined jobs • Sharing of financial gains and business information
Test Your Knowledge True (A) or False (B) • Mediation requires each party to abide by the mediator’s decision. • Clearly written contracts require less contract administration time due to fewer disagreements over interpretation. • Integrative bargaining involves a win-lose approach because the issues are considered a fixed pie. • A union steward represents the issues concerning union employees and is elected by them.
Video – Southwest Airlines • Discuss how the labor-management relations maintained by Southwest has provided a significant benefit to the organization. • Describe why you would or would not like to work for an organization such as Southwest. Identify the primary reason associated with your choice.
Video – Southwest Airlines • Labor-management relations have a history for being adversarial in nature. Discuss methods used by Southwest to diminish this adversarial relationship. • Have these methods proven to be beneficial to the organization? To the employees? Explain.