Outline

1. Outline • A. Sectoral Organizing and the Trigger? • 1. Union Membership and Dues • 2.Structure of Organized Labor • 3.Bargaining Structures • 4.The Bargaining Process • 5.Bargaining Subjects • Mandatory, Permissive and Illegal • Returns • Review questions • Do more than 10 and I’ll count the 10 highest grades

2. News of the Class • Railway Labor Act governs airline workers • Note current fight over how union votes should be counted • Labor Mural in Maine sparks Controversy

4. Are we clear on these ideas: Taking wages out of competition and triggers • 5. Lerner argues that unions need to stop organizing workplace by workplace, and begin organizing entire industries at once in order to “takes wages out of competition.” Try to explain how organizing an entire industry at once “takes wages out of competition,” being sure to discuss how this changes employer behavior toward unions. • 6. In his opening paragraph, Eimer suggests that SEIU has developed a strategy that “seeks to organize whole labor markets at once using a trigger mechanism which is sensitive to the competitive pressures employers face when confronted with the costs of unionization(Eimer 2008: 1). After reading the article, please explain what that statement means. Be sure to discuss what is meant by competitive pressures and trigger mechanisms. • 7. Eimer argues that trigger mechanisms reduce employer opposition to unions. How? What evidence does he provide to support this assertion?

5. The Organizing Process • Collective Bargaining cannot take place until a bargaining representative has been certified • To gain certification, unions pursue one of two paths • Path 1: Normally, a union must win an electionto be certified as the exclusive representative of the employees • Path 2: An employer may voluntarily recognizea union if the union can demonstrate that it represents a majority of the employees

6. NLRA and the Duty to Bargain • Since the NLRA was passed in 1935, Employers are obligated to recognize and bargain if union is certified by NLRB • 1 year duty to bargain in good faith • About 50 percent of the time, no first contract is reached… • After 1 year, employer can withdraw recognition if proves union does not have majority support • Decertification election • This is a problem for unions…which they are trying to address legislatively through EFCA

7. One Important Subject of Bargaining is Membership • Union shop • within set period of time after hire, employees required to join the union as a condition of employment • Agency shop • Requires that all employees in the bargaining unit who do not join the union pay a representation fee in lieu of union dues to help defray the organizations expenses • Logic • Workers get benefits of unionization, so must help pay for the costs that the union occurs in bargaining and enforcing the contract • “Right to work” laws • Workers can not be required to join union as a condition of employment • 21 states adopt such laws…primarily in the South • WI’s new law

8. Right to free ride or Right to Work • Unions are only certified when majority indicate desire for organization • Unions are required by law to represent all workers so all workers should have to support organization • Company rule about unions is no different than a rule about proper attire…If worker does not like rule they are free to work elsewhere or to work to decertify the union • Individual workers should not be forced to support an organization that they do not want to support • Decertification is a difficult process

9. The Conflict in WI

10. The Conflict in Indiana: How would you vote?

11. Union Membership Means Union Dues • Members Pay Union Dues To Local • Average dues are 2 hours of pay per month • Local unions keep ½ $ • Spent on overhead, enforce contract, bargain, organizing, strike support etc. • Sometimes for paid staff… • NJEA Sheet

12. Union Membership

13. Union Membership Means Union Dues • Members Pay Union Dues To Local • Average dues are 2 hours of pay per month • Local unions keep ½ $ • Spent on overhead, enforce contract, bargain, organizing, strike support etc. • Sometimes for paid staff… • Where does the other ½ go?

14. So you’re in a unit, where do those dues go? • Local Pays Per Capita Dues to: • Per-capita= x dollars or cents per member • State Union- bargaining help, grievance help, research, education, training, politics

15. So you’re in a unit, where do those dues go? • Local Pays Per Capita Dues to: • National Union-bargaining help, grievance help, research, education, training, politics, lobbying, organizing

16. So you’re in a unit, where do those dues go? • Local May Also Pays Per Capita Dues to: • State & Local AFL-CIO- education, training, publicity, politics, lobbying

17. So you’re in a unit, where do those dues go? • National Union Pays Per Capita Dues to: • AFL-CIO: research, education, training, politics, lobbying, organizing

18. O.K…Back to the Local Union… • Remember… NLRB decides what the bargaining unit will be on a case by case basis • Key: mutuality of interest in wages, hours and working conditions • Greater the mutuality = greater likelihood that members will agree on things, and thus CB will work better • Formal bargaining structureis defined as the employees and employers who are legally bound by the terms of the agreement • About 180,000-194,000 agreements exist in the U.S. (Katz & Kochan, 2002)

19. Bargaining Units Vary in Type • Need to be attentive toscope of union or employee interests in the unit • These interests can be narrow craft • Cops, Firefighters, Teachers, Electricians • Broad industrial or multi-skill • Grocery, Auto, Steel • Katz & Kochan, 2002

20. Bargaining Units Vary in Type… • Need to be attentive to scope of employer interests in the unit • Can be multiemployer (centralized) • Bituminous Coal Operators Association • Association of many coal operators • New York Realty Advisory Board

21. Centralized Bargaining for: Multi Employer and Craft Union

22. Centralized Bargaining: Multi Employer & Industrial Union

23. Types & Examples of Bargaining Structure

24. Bargaining Units Vary in Type… • Need to be attentive to scope of employer interests in the unit • Can be multiemployer (centralized) • Bitumionous Coal Operators Association • Single-employer, multi-plant • Ford operations in America

25. Single Employer, Multi Plant

26. Types & Examples of Bargaining Structure: Scope varies…

27. Single Employer Multi Plant & Pattern Bargaining • Pattern Bargaining • A national union strives to establish equal wages and benefits from several employers in the same industry. • One company serves as model, others pushed to follow pattern • Treaty of Detroit as Example • UAW typically targets most profitable firm at the moment…cuts deal and tries to get other two to follow pattern • Target Ford…get GM and Chrysler to follow • Becoming less and less common as unions become weaker

28. Bargaining Units Vary in Type… • Need to be attentive to scope of employer interests in the unit • Can be multiemployer (centralized) • Bitumionous Coal Operators Association • Single-employer, multi-plant • Ford • Single-employer, single plant (decentralized) • Bronx Motts Apple Sauce Plant and Local Union

29. Single Employer, One Union

30. Types & Examples of Bargaining Structure: Scope varies…

31. Bargaining Units Vary in Type… • Need to be attentive to scope of employer interests in the unit • Can be multiemployer (centralized) • Bitumionous Coal Operators Association • Single-employer, multi-plant • Ford • Single-employer, single plant (decentralized) • Eimer Blankets • Which model does Stephen Lerner argue allows for stronger unions that can win better contracts for its workers? Katz & Kochan, 2002

32. The Decentralization of Bargaining Structure in the United States • Compared to other countries, the U.S. has a highly decentralized bargaining structure • Multi-employer bargaining is not common in US • In many European countries, contracts cover entire industries or broad regions • European employers are now trying to change this…unions are resisting • Take a look at the following slides…

33. Industry Wide Bargainingwith Inclusive Industrial Unions: Germany

34. Societal Bargaining with National Labor Federation Comprised of Industrial Unions: Sweden for much of 20th century

35. The Duty to Bargain • Whether new union or existing union, bargaining must occur in “Good Faith” …surface bargaining not permitted • Surface bargaining • going through the motions with no intent on reaching a deal • Both parties have an obligation to bargain in good faith with an intent to reach an agreement • Parties don’t have to agree or be fair…but have to put forth a serious effort • The New York Times reports owners have gone before the National Labor Relations Board, claiming the players’ union did not bargain in good faith

36. Preparation Stage (Analysis and Planning) Select Union Negotiating Team Select Management Negotiating Team Preparation for Bargaining Preparation for Bargaining Union: rank & file, Staff, representative of membership Management: Human Resource Managers; Legal staff Ground Rules Exchange of Economic and Noneconomic Demands Posturing, Exchange of Proposals and Counterproposals Agreement Crisis Ratification by Union Impasse Contract Job Action (or) Hiring of Replacements Resolution of Impasse Agreement Ratification by Union Contract The Three Stages of The Bargaining Process 5-4

37. Bargaining… • 2. Chaison notes that collective bargaining has two faces: “it is first about getting agreement before going to the bargaining table and then getting agreement at the table.” Please explain what he means by the first part of that sentence: “it is first about getting agreement before going to the bargaining table.” Be sure to provide an example to illustrate your explanation.

38. Preparation Stage (Analysis and Planning) Select Union Negotiating Team Select Management Negotiating Team Preparation for Bargaining Preparation for Bargaining Gather info: Union: Polls, meetings, Review grievances, Economic research Management: economic Analysis, grievance review Ground Rules Exchange of Economic and Noneconomic Demands Posturing, Exchange of Proposals and Counterproposals Agreement Crisis Ratification by Union Impasse Contract Job Action (or) Hiring of Replacements Resolution of Impasse Agreement Ratification by Union Contract The Three Stages of The Bargaining Process 5-4

39. Preparation Stage (Analysis and Planning) Select Union Negotiating Team Select Management Negotiating Team Preparation for Bargaining Preparation for Bargaining Bargaining Stage Ground Rules Exchange of Economic and Noneconomic Demands Posturing, Exchange of Proposals and Counterproposals Agreement Crisis Where, when, how long, talk to press? Ratification by Union Impasse Contract Job Action (or) Hiring of Replacements Resolution of Impasse Agreement Ratification by Union Contract The Three Stages of The Bargaining Process 5-4

40. Preparation Stage (Analysis and Planning) Select Union Negotiating Team Select Management Negotiating Team Preparation for Bargaining Preparation for Bargaining Bargaining Stage Ground Rules Exchange of Economic and Noneconomic Demands Posturing, Exchange of Proposals and Counterproposals Agreement Crisis Ratification by Union Impasse Contract Job Action (or) Hiring of Replacements Resolution of Impasse Agreement Ratification by Union Contract The Three Stages of The Bargaining Process 5-4

41. Bargaining • Exchange of economic and non-econmic demands • 1. Briefly explain the difference between distributive and integrative bargaining. Be sure to provide an example of each.

42. Bargaining • 1. Briefly explain the difference between distributive and integrative bargaining. Be sure to provide an example of each. • Distributive deals with distribution of scarce resources, usually pay and benefits (Chaison 2007: 105) • Zero sum: meaning if workers get 3% raise, that’s money the firm loses • Integrative deals with areas in which “both parties gain together because they integrate their goals to solve problems jointly (Chaison 2007: 105) • Freeman emphasized this…work together to solve staffing needs • Posturing, Exchanging proposals etc… • SEIU strategy on revealing its wage demand for Janitors in NYC?

43. Bargaining… • Posturing, Exchanging proposals etc… • SEIU strategy on revealing its wage demand? • “The union, Local 32BJ of the Service Employees International Union, has inserted a big question mark into the bargaining by announcing that it will not tell management negotiators how large a raise it wants until Dec. 27, five days before the contract deadline” (Greenhouse 2007)

44. Subjects of Bargaining • 1958 Supreme Court Case known as: Borg Warner • Established 3 Categories of bargaining subjects • Mandatory, Permissive, Illegal • Let’s examine each one…

45. Mandatory Rates of pay Wages Hours of employment Overtime pay Shift differentials Holidays Vacations Severance pay Pensions Insurance benefits Profit-sharing plans Christmas bonuses Company housing, meals, and discounts Employee security Job performance Union security Management-union relationship Drug testing of employees Subcontracting or relocating union members’ work Mandatory Subject • A party may insist on its inclusion and the other party cannot refuse to discuss it • Wages, hours, working conditions • Example Christmas Bonus • Employees see as wages • NLRB ruled it a mandatory subject • Legal impasse occurs when parties can’t agree • Impasse?

46. The Negotiation Process • Impasse • Point of negotiation where no compromise appears achievable. (Katz & Kochan, p.461) • Dead-lock…stalemate • Further bargaining seems futile • Reasons for Impasse • interests of parties have not been reconciled • one party has no intention of settling • union membership rejects proposed contract

47. Permissive Management rights as to union affairs Pension benefits of retired employees Scope of the bargaining unit Including supervisors in the contract Additional parties to the contract, such as the international union Use of union label Settlement of unfair labor charges Prices in cafeteria Continuance of past contract Membership of bargaining team Employment of strike breakers Employer child care benefits Plant closings Permissive Subject • a party must withdraw it from bargaining if the other party does not voluntarily agree to discuss it • concessions seldom made on permissive subject • Cannot bargain to impasse, or strike • Pensions for employees are mandatory • Pensions for Retirees are permissive • They are no longer employees under the NLRB

48. Illegal Closed shop Hot cargo clause Separation of employees by race Discriminatory treatment Illegal Subject Can not be bargained over because it violates public policy or is inconsistent with NLRA Hot Cargo demand that union not handle goods from employer involved in a strike

49. Preparation Stage (Analysis and Planning) Select Union Negotiating Team Select Management Negotiating Team Preparation for Bargaining Preparation for Bargaining Bargaining Stage Ground Rules Exchange of Economic and Noneconomic Demands Posturing, Exchange of Proposals and Counterproposals Agreement Crisis Resolution Stage Ratification by Union Impasse Contract Job Action (or) Hiring of Replacements Resolution of Impasse Agreement Ratification by Union Contract The Three Stages of The Bargaining Process 5-4

50. Outline • Impasse • Negotiating Wage Adjustments • Ability to Pay, Productivity, Comparison • Types of Wage Adjustment • Lump Sum, COLA, Profit sharing • News of the class