15 Working with Organized Labor

1. 15 Working with Organized Labor

2. Challenges • Why do employees join unions? • What agencies and laws regulate labor practices? • What is union organizing, collective bargaining and contract administration? • What is the managerial and HR role in resolving union grievances?

3. Why do Employee’s Join Unions? • Job dissatisfaction • Employees lack influence with management to make needed changes

4. Labor Relations: Wagner Act • Do not keep employees from forming unions or collective bargaining • Do not provide financial support for union • Do not discriminate against employee to encourage or discourage union membership • Do not discharge or discriminate against employee who filed charges (gave testimony) under Act • Do not refuse to bargain collectively with the union that employees chose

5. Labor Relations: Taft Hartley Act • Limited some union power obtained under Wagner Act • Cannot influence employer’s choice of representation in collective bargaining • Bargain with employer in good faith • Never charge employees excessive or discriminatory union dues as a condition of membership • Never ask an employer to pay for services that are not performed

6. Labor Relations: Landrum-Griffen Act • Each union has a bill of rights to ensure minimum standards of internal union democracy • Each union must give their constitution to Department of Labor • Each union must report its financial activities and financial interests of leaders to Department of Labor • Union elections are regulated by government • Union leaders have fiduciary responsibility to use union money and property for the membership, not for own personal gain

7. Union Membership in the United States, 1930 - 2000 40 35 30 25 20 15 10 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000

8. How Unions Differ Globally • U.S. Unions -- less emphasis on political issues • French Unions -- politically involved and less concerned with economic issues • Chinese unions -- low in economic, political involvement due to Communist Party • Swedish unions -- have a high degree of economic, political involvement

9. Types of Labor andManagement Relations • Open Conflict • Armed Truce • Working Harmony • Labor Management Cooperation

10. Labor Relations Policy – Union Acceptance Strategy Our objective is to establish a labor relations policy that is consistent and fair. The purpose is to develop an agreeable working relationship with the union while retaining our full management rights. The rationale behind our labor relations policy is consistency, credibility, and fairness to union representatives and the workers who are in the union. To make our policy effective, the Company will:

11. Union Acceptance Policy(cont’d) • Accept union representation of employees in good faith, provided the union represents the majority of our employees; • Maintain the right of management to manage; • Adopt procedures by which top management continuously supports the positions of its representatives in implementing the firm’s policies and practices in the area of industrial relations; • Enforce disciplinary policies in a fair, firm and consistent manner;

12. Union Acceptance Policy(cont’d) • See to it that union representatives follow all Company rules except those from which they are exempted under provisions of the labor contract; • Handle all employee complaints fairly, firmly, and without discrimination; • See that every representative of management exercises a maximum effort to follow Company policies fairly and consistently; and • See to it that all decisions and agreements pertaining to the present contract are documented in writing.

13. Union Avoidance Strategy management tries to prevent its employees from joining a union, either by removing the incentive to unionize or by using hardball tactics.

14. 3 Phases of Labor relations • Union organizing • Collective bargaining • Contract administration

15. T.I.P.S. for pre-election conduct Management cannot • Threaten • Intimidate • Promise • Conduct surveillance

16. Good Faith Bargaining Behavior • Both parties meet and confer with each other at reasonable time and place • Both parties negotiate over wages, hours and conditions of employment (mandatory topics) • Both parties sign a written contract that formalizes their agreement • Each party gives the other a 60-day notice of termination or modification of the labor agreement before it expires

17. Mandatory Bargaining Topics Wages Base pay Overtime Retirement benefits Travel pay Health benefits Incentives Working Conditions Promotions Seniority Safety rules Work rules Grievance procedures Layoffs Hours Overtime Holidays Vacation Shifts

18. Union Grievance Procedure Employee with a Grievance 5 workdays Employee; Possible Union Steward Immediate Supervisor Verbal Presentation Written Grievance 5 workdays Business Representative, Grievance Committee Department Manager 10 workdays Labor Relations Director National Union Representative and Local Union Representative 15 workdays Arbitration

19. Impact of Unions on HR Management • Staffing • Employee Development • Compensation • Employee Relations

20. Case Graduate students who are teaching assistants work long hours for low salaries. The National Labor Relations Board ruled in favor of grad students at New York University to form a union organized by United Auto Workers. Divide into two groups. Group one should argue against formation of a union. Group two should argue in favor of a union. (If you were a teaching assistant, why would you join?)