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Chapter 1

Chapter 1. Union-Management Relationships in Perspective. Phases in the Labor Relations Process. Recognition of rights and responsibilities Legal protections and constraints on union and management representatives Negotiation of the labor agreement

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Chapter 1

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  1. Chapter 1 Union-Management Relationships in Perspective

  2. Phases in the Labor Relations Process • Recognition of rights and responsibilities • Legal protections and constraints on union and management representatives • Negotiation of the labor agreement • Strategies, tactics, and dispute resolution techniques • Administration of the negotiated labor agreement • Management administers the agreement. • Union monitors management’s compliance with the terms of the agreement. MGMT 523 - Chapter 1

  3. Elements in the Labor Relations Process Exhibit 1.2 MGMT 523 - Chapter 1

  4. Labor Relations’ Focal Point: Work Rules • Work Rule Categories • Rules governing compensation • Wages, overtime payments, vacations, shift premiums • Rules specifying employees’ and employers’ job rights and obligations • No strike/no lockout, performance standards, promotion qualifications, job specifications, layoff provisions MGMT 523 - Chapter 1

  5. Labor Relations’ Focal Point: Work Rules • Characteristics of Work Rules • Common or unique • Vague or specific • Change over time MGMT 523 - Chapter 1

  6. Labor Relations’ Focal Point: Work Rules • Examples • Professional Baseball - The Player and the Club recognize and agree that the Player’s participation in certain other sports may impair or destroy his ability and skill as a baseball player. • Television - The latest version of the script will be made accessible to the Player in the casting office 24 hours in advance of a scheduled reading or immediately after the scheduling of the interview, whichever last occurs. MGMT 523 - Chapter 1

  7. Participants in the Labor Relations Process • Management Officials • Corporate, divisional, plant-level managers • Management consultants, “union avoidance” experts • Union Officials • Elected officers and representatives • Employees • Vote to organize and vote to ratify negotiated agreements MGMT 523 - Chapter 1

  8. Participants…(cont’d) • The Government • Executive, legislative, and judicial branches • Actions (laws and regulations) can change labor-management relationships. • Federal, state, and local levels of government • Third-Party Neutrals • Mediators - Facilitate bargaining activities • Arbitrators - Consider disputed issues and make decisions binding on both labor and management MGMT 523 - Chapter 1

  9. Constraints or Influences on Work Rules • State of the Economy • Inflation, interest rates, unemployment, and productivity affect job security. • Labor Market • Skills and wage levels in the relevant labor market • Demand for labor and shifts in labor market sectors MGMT 523 - Chapter 1

  10. Constraints or Influences…(cont’d) • Product Market • Vulnerability of disruption to product supply to customers from the potential for labor strikes • Use of outsourced materials and products • Financial Market • Availability and cost of funds for investment • Exchanges rates that affect plant location choice • Funds borrowed to support ESOPs • Capital investments in nonunion and offshore facilities MGMT 523 - Chapter 1

  11. Constraints or Influences…(cont’d) • Technology • Equipment changing or eliminating skills required • Pace and scheduling of the work • Work environment and tasks • Information exchange MGMT 523 - Chapter 1

  12. Constraints or Influences…(cont’d) • International Forces • North American Free Trade Agreement (NAFTA) • U.S. firms’ overseas investments • Globalization and the global economy (24/7) • Multinational firms’ plant location strategies • Low-wages in newly industrializing countries • Rising volume of imports MGMT 523 - Chapter 1

  13. Constraints or Influences…(cont’d) • Public Opinion • Influential individuals and organizations • Attitudes and traditions of the community • Affecting Public Opinion • Monitoring and reacting to negative comments made in the media • Getting organized labor’s positive message out to the community • Forming alliances with various groups in the community MGMT 523 - Chapter 1

  14. Union Membership Trends1960 – 2002 MGMT 523 - Chapter 1

  15. Union Membership Is Declining • Structural Changes in the Labor Force • Shift from manufacturing to knowledge-based jobs • Growth in professional, technical, and service workers • Shifts in workforce demographics • Employment growth (80%) in smaller firms • Increases in the use of contingent workers • Economic recessions MGMT 523 - Chapter 1

  16. Union Membership (cont’d) • Organizational Practices • Union-avoidance practices by firms • Improved human resources practices • Companies’ Use of Current Law Governing the Workplace • Legal loopholes favoring management • Insufficient resources MGMT 523 - Chapter 1

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