Redefining Union Prevention

1. Redefining Union Prevention Including an overview of the Employee Free Choice Act (EFCA)

2. Agenda • Overview of EFCA • NLRB Changes During Clinton Administration • Why Companies Oppose Unions • Company Employee Relations Strategy • Why Employees Organize • Managers and Supervisors Role in Maintaining Union Free Status • Do’s – Don’ts • Typical Unionization Process • Early Warning Sign • Union Authorization Cards • Election Procedures • Overview of Company Labor Audit

3. What is a Union • A labor union is a group of employees that ban together to bargain collectively with their employer. • Unions just like companies are in business to make money. • Employees who are happy – who like their work and their supervisor – have no interest in a union.

4. National Labor Relations BoardUnion Election Statistics Fiscal Year 2008 • No. Union Elections 1,503 • No. Won by Union 938 (62.4%) • No. Lost by Union 565 (37.6%) • Total Employees Voting 104,382 • Total Employees Unionized 61,950 • Total Employees Remaining 42,432 Union Free

5. Overview of Employee Free Choice Act (EFCA)

6. Employee Free Choice ACT (EFCA) is legislation to “Amend the National Labor Relations Act”

7. QUOTE “I support this bill because in order to restore a sense of shared prosperity and security, we need to help working Americans exercise their right to organize under a fair and free process and bargain for their fair share of the wealth our country creates.” “The current process for organizing a workplace denies too many workers the ability to do so. The Employee Free Choice Act offers to make binding an alternative process under which a majority of employees can sign up to join a union. Currently, employers can choose to accept—but are not bound by law to accept—the signed decision of a majority of workers. That choice should be left up to workers and workers alone.” Senator Barack Obama, 2007

8. EFCA • Can eliminate secret ballot elections • NLRB can force union representation with majority “card check” process • Union can demand bargaining to begin after certification • If contract is not signed within 90 days union or employer can request federal mediation • Can lead to binding arbitration within 30 days

9. EFCA cont. • Damages of three times back pay for unlawfully terminated employee • EFCA would impose $20,000 penalty upon each violation • March 1, 2007 House of Representatives passed the Act by vote of 241 to 185 • March 30, 2007 Senate voted 51 – 48 to table discussion. 60 votes are needed to re-address bill…staytuned. • President Obama (co-sponsor) has promised to sign bill if passed.

10. EFCASmall Business Exemption • Small businesses are excluded providing: • $500,000 gross volume (1959) • $3.3 million (based on inflation today) • Must have minimum of 3 bargaining eligible employees

11. Current Union Authorization Cards Secret Ballot Election within 42 days NLRB Certified Election If Union Wins: Both parties must bargain in good faith EFCA Union Authorization Cards showing majority status If Union Wins: Both parties must bargain in good faith If no agreement in 90 days – federal mediation If no agreement in 30 days of mediation – binding arbitration for 2 year contract CURRENT NLRB Rules vs. EFCA

12. Current Re-instatement EFCA Back pay plus 2X liquidated penalties for improper termination Civil penalties of up to $20,000 per violation CURRENT NLRB Rules vs. EFCA Improper Termination During Organization Process

13. Employers shall not Interfere with employees engaging in concerted activity Dominate or assist labor unions Discriminate because of concerted activity Retaliate for filing charge with the Board Refuse to bargain collectively with Union Unions shall not Restrain or coerce employees engaged in concerted activity Cause discrimination against employee b/c of union membership Refuse to bargain collectively with Employer Engage in unlawful strikes or boycotts or numerous other specified activities Charge excessive or discriminatory fees Engage in unlawful picketing Section 8 Restrictions

14. Clinton Administration’s Impact on Organized Labor • Reduced time from petition to election from 50 to 42 days • AFL-CIO loan of $10 MM to Teamsters strike fund • AFL-CIO devoted 34% of budget to organizing (3% previous) • AFL-CIO re-opened Organizing Institute and tripled in size • Linda Chavez-Thompson first female minority executive

15. Clinton Administration’s Impact on Organized Labor • Continue to offer 100% backing to Edward Kennedy • Union elections increased 12% with union winning 50.3% • Hiring and training new organizers at record rate and targeting women and minorities • College students recruited for summer organizing • Created long-term organizing strategies involving southern and midwestern United States

16. Clinton Administration’s Impact on Organized Labor • Increased visibility of local organizing efforts by aligning with churches, religious and Civil Rights organizations • Increased lobbying efforts for more liberal changes in labor laws that support organizing efforts • Established corporate campaign strategies • Improved awareness through more effective use of Internet and web pages • Expanded use of celebrities

17. New Organizing Tactics Blitz Campaigns Women organizers Student organizers Church support Religious overtones

18. Union Membership as a Percentage of the U.S. Civilian Workforce Source: U.S. Department of Labor, Bureau of Labor Statistics, 2007.

19. Union Membership by Industry Source: U.S. Department of Labor, Bureau of Labor Statistics, 2007.

20. Why Companies Oppose Unions According to Economists Richard K. Vedder and Lowell E. Galloway • Economic cost of unions from 1947-2000 exceeds $50 trillion of lost income and output • States with a 10% unionized workforce can expect 0.7% increase in unemployment rate • Average UAW worker earns over $81.00 per hour in salary/ benefits with retiree health care. In 2000 economists predicted plan would begin bankruptcy auto industry by 2009.

21. Why Companies Oppose Unions • Disruptions caused by strikes • Labor contract provisions may put employer in a uncompetitive situation • Unions often create divisiveness between employer and its employees – “us versus them” • Employer loses the right to deal with employees individually • Increased expense and difficulty in administering work rules, etc.

22. Companies Disadvantages of Unionization • Negative effect on Quality and Service • Lack of managerial flexibility • Management time wasted • Divided loyalty between company and union employees • Higher operating cost • Dealing with job actions Strikes Sick outs Slow downs

23. Companies Disadvantages of Unionization • Unions have employees file numerous and erroneous charges OSHA EEO/State Human Rights Commission Department of Labor State Insurance Health Agencies Increase in Workers Compensation claims

24. Company Labor Relations Strategy ….Company Statement re: Unions We want to maintain a positive ongoing relationship among all our employees. We will respect our employees and maintain candid and honest communications concerning the business and the impact to our employees.

25. Implementing An Effective Union Avoidance Strategy • Example of company policy on unions: • The reason our employees haven’t wanted a union is simple. Over the past years we have consistently provided steady employment, safe working conditions, fair treatment and promotional opportunities as well as wages and benefits which are competitive in our industry and we are committed to maintaining these high employment standards for the future. In addition, every employee is treated as an individual and respected as an important member of our team. This means you can speak directly with your supervisor or any other member of the management team and we can work directly with you without interference from a union. We want you to share your ideas and concerns with us because we believe that our growth is a direct product of our team efforts and contributions. A union can add nothing to our team nor can they get anything more than the company is willing to provide. We believe unions create artificial walls that hamper your individual success and the team success of this facility. We firmly believe that union is not necessary!

26. Why Employees Organize • Favoritism • Lack of Appreciation • Concerns about Job Security • Lack of Communication • Not feeling “in on things” • Money is usually not a primary motivator

27. Why Employees Organize • Compensation • Non-competitive pay • Inadequate benefits • Inequitable pay raises • Working Environment • Inadequate staffing • Mandatory overtime • Poor working conditions DESIRABILITY OF UNIONIZATION • Management Style • Arbitrary management • decision making • Use of fear and intimidation • Lack of recognition • Employee Treatment • Job insecurity • Unfair discipline and policies • Lack of response to complaints • Harassment & abusive treatment

28. Maintain a Pro-Employee Environment • EVERYONE: L.O.Y.A.L. L = Listens O = Observes Y = Doesn’t Yell A = Advocates L = Learns

29. Front-line leaders role in preventative labor • The key to maintaining a union free status is being a dedicated and positive leader • It cannot be repeated enough that in the eyes of the employee, the supervisor/ manager is the employer.

30. Traits of a good leader • Accurate • Accurate when explaining policy, procedures and providing feedback. • One wrong word or forgotten sentence can change the entire meaning of what was said. • Knowledgeable • Understanding policies and procedures before trying to interpret them for employees.

31. Traits of a good leader cont… • Clear • Uses words and terms that are sure to be understood by employees. • Impartial, does not take sides • Ask questions • Get employees to ask questions • Doesn’t take it for granted that everyone understands the point simply because no one asks any questions or everyone says they understand

32. Traits of a good leader cont… • Careful • Conscious of their facial expressions, gestures, posture and tone of voice • Rewards initiative • Gives credit where credit is due • If you take credit for an employee’s idea or suggestion, you can be sure that employee will never suggest anything again

33. Traits of a good leader cont… • Acts with integrity • 24-7 • Once lost/may not return • Most important executive trait • Fortune article • Guard it

34. Communication is critical A good leader has learned to listen…

35. Best Ways to Remain Union FreeMake the Union Unnecessary • Maintain consistency • Share timely and factual updates • Formally and Informally • Be proactive • Know and uniformly apply rules • Weigh cost/benefit and be able to justify any deviation from rule • Beware of the application of rules not previously applied in practice • Review disciplinary actions

36. Best Ways to Remain Union FreeMake the Union Unnecessary • Avoid employee perceptions of unfairness or favoritism • Show greater appreciation for employees • Feedback is critical – give praise along with suggestions for improvement when needed

37. Best Ways to Remain Union FreeMake the Union Unnecessary • Show employees they do not need a third party coming into the facility to ensure fair treatment and consideration • As long as employees are treated fairly, there is no need for a union • Without a union, problems can be resolved individually and there is more personal contact between employees and management

38. Recognizing Unexplained Change • Before a Company can react to the attempted unionization of its employees, it must be aware of it’s existence The Key: BE AWARE • Communicate “change” timely and accurately

39. Typical Unionization Process Organizing Campaign Authorization Cards Representation Election Certification Contract Negotiation (Collective Bargaining)

40. ORGANIZING CAMPAIGN

41. Recognizing Early Warning Signs • Good performers begin slipping • Argumentative questions in front of employee groups and supervisors • Group complaints and petitions start to appear • A “new” leader starts to appear • Employees appear to be divided into two groups • Increase in employee turnover • An increase in union terms such as: Seniority Grievance Bumping Security • More questions regarding wage administration, benefits and policies

42. Recognizing Early Warning Signs • Unwanted postings Articles on unions • Strangers begin appearing in parking lots, entrances • Union literature begins to appear • Applicants who are over qualified • Employees stop talking to supervisors • Supervisors “grapevine” goes dead • More group discussions/Employees get quiet when a member of management comes up • Employees start questioning supervisory authority

43. Recognizing Early Warning Signs • More time spent in break rooms, restrooms and parking lot • More and more employees at local “watering holes” • Former employees begin showing up at the facility or hanging out • Employees normally not seen together forming groups • Nature and frequency of employee complaints • Anti-company graffiti • Any other event out of the ordinary

44. REMEMBER, EARLY SIGNS ARE USUALLY THE TIP OF THE ICEBERG

45. New Organizing Approaches • Blitz campaigns Large amount of organizers Weekend organizing 100% home visits from Friday – Monday • Specific union not identified • No cards at work • No visible organizing during initial card signing • 70% cards signed prior to petition • Utilize churches • Personal attacks on management

46. Importance of Front-line Supervisors and Local Management • The front-line supervisor is the most important factor influencing employee decisions in any attempt by a union to organize employees • The front-line supervisor has the most daily contact with employees

47. Importance of Front-line Supervisors and Local Management • The front-line supervisor has the best opportunity to communicate management’s point of view – “eyeball-to- eyeball” • The front-line supervisor represents the “eyes and ears” of management • Simply put…to the Employee, the front- line supervisor is the “Company”

48. Importance of Communicating with Employees Role of Supervisor • Communication is key: supervisors must give employees the opportunity to ask questions and create an atmosphere in which they are not afraid to ask questions • Participate in two-way communications • Supervisors must listen to employees and inform management about any inkling of union activity • Recognize there are problems in every group of employees

49. Importance of Communicating with Employees Role of Supervisor • Bring problems to the attention of top management for resolution • Solve problems either by explaining the policy or taking steps to correct the situation • Seek to learn what the employees think of the company • Sell company benefits • Know employee’s background and relationships • Discipline consistently • Avoid favoritisms in scheduling, assignments, overtime, etc. • Supervise people – not a file

50. What Supervisors Can Do and Say TAKE ACTION • Silence is not golden • Silence implies support/lack of opposition • Supervisors have the right to speak out about unions.