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Labor Relations: History, Laws, and Strategies

This chapter discusses the history of labor unions in the United States, the three most important labor laws, and labor relations in other countries. It covers union acceptance and avoidance strategies, the labor relations process, and collective bargaining. The impact of unions on HR management is also explored.

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Labor Relations: History, Laws, and Strategies

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  1. Chapter 15 Dealing with Organized Labor [whether unionized or not! ]

  2. History of Unions U.S. Labor Unions: • Legally unprotected until 1935 [strikes and related activities considered illegal restraint of trade under antitrust laws] • Unions widely supported in 1930s [world-wide labor movement—historical context] • Not supported as much today due to offshoring in certain industries, economics • Employers prefer a nonunion workforce [compare/contrast employment at will]

  3. The Legal Environment 3 Most Important Laws • 1) Wagner Act (1935) • 2) Taft-Hartley Act (1947) • 3) Landrum-Griffin Act (1959) • [Others—e.g., RLA]

  4. 1) The Wagner Act [Original NLRA] • Sets up National Labor Relations Board (NLRB) • Independent federal agency • Certifies elections • Investigates unfair labor practice charges [see text, p. 467, for specific provisions] • Can issue cease & desist order if employer: • Interferes w/ union formation/administration • Discriminates against union members [cf. “salting”] • Refuses to bargain with the union

  5. 2) Taft-Hartley and 3) Landrum-Griffin Acts • Taft-Hartley Act [text at p. 468] • Protects mgmt. & workers from union coercion • Prohibits discrimination re: non-union status • Illegal for union not to bargain in good faith • Allows individual states to bar shop clauses & establish “right to work” states [see web link] • The Landrum-Griffin Act [text at p. 469] • Protects union members from union leaders • Requires unions bill of rights and constitution • Regulates union elections and finances

  6. Labor Relations in the U.S. • Adversarial Labor-Management Relations • Shrinking Union Membership [private sector]

  7. Labor Relations in Other Countries • France—more politically involved • China—low political and economic involvement • Sweden—high both politically and economically • Germany: • Works Councils—joint committees • Codetermination—union on board of directors • Japan: • Enterprise Unions—all workers in company • System fostered by “lifetime” employment [on the decline due to economic realities]

  8. Labor Relations Strategy Two Basic Strategies • Union Acceptance • Union Avoidance • Union Substitution • Union Suppression

  9. Labor Relations Process • Union Organizing • Union solicitation • Pre-election conduct • Certification election • Employee Free Choice Act [passage seems unlikely; political hot potato much like TEAM Act--see Case 15.3; more discussion later]

  10. Collective Bargaining • Bargaining Behavior • Must negotiate in “good faith” • Both sides develop and present proposals, continue to impasse • Bargaining Types • Distributive • Integrative • Shirtless [Putin only ]

  11. Guidelines for Integrative Bargaining • Try to understand others’ needs/goals • Create a free flow of information • Emphasize commonalities • Minimize differences • Search for solutions that meet all parties’ goals and objectives • Develop flexible responses to proposals • Avoid entrenched “positions” vs. interests • Seek to enlarge the “pie” vs. bigger share

  12. Bargaining Topics • Mandatory • Wages, hours, and conditions of employment • Permissive • Both parties must agree to add to agenda • E.g. board service, retiree benefits • Shop clauses, no subcontracting rules • Illegal • Featherbedding • Discriminatory practices, etc.

  13. The Impact of Unions on HRM • Staffing – seniority based [vs. merit] • Compensation • Higher in union shops [cf. “2-tier” systems] • Benefits generally better in union shops • Prefer across the board raises (e.g., COLAs) • Employee Relations [compare “at-will”] • Union gives employees a voice; disputes can be resolved short of termination • Job design—Team structures involved with management may be limited [Case 15.3]

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