Positive Employee Relations & Employee Free Choice Act

1. Positive Employee Relations & Employee Free Choice Act

3. Objectives • Review importance of the manager–employee relationship • Explain Deere-Hitachi’s position on unions • Explain EFCA • Explain the impact of the EFCA • Review the do’s and don’ts

4. Manager-Employee Relationship • Employee engagement • Productive work environment • Open communication Employees do not quit companies, they quit supervisors. - Marcus Buckingham

5. Positive Manager-Employee Relationship • Treating employees fairly • Providing on-going feedback and creating an environment for effective two-way communication • Recognizing and valuing employee contributions • Involving employees in decisions that affect their work • Coaching and supporting employees in their current role, while also providing career development support • Creating a climate of trust and respect

6. Deere-Hitachi’s Position • Deere-Hitachi’s position on unions and union-free operations is: • We don’t need one and we don’t want one • Prefer to maintain direct relationship with employees • Current laws are fair and effective

7. Union Membership in the US 1930-2008(By Percentage)

8. Federal Laws Protecting Employees • 1963 - Equal Pay Act • 1964 - Title VII of the Civil Rights Act • 1967 - Age Discrimination in Employment Act • 1970 - Occupational Safety and Health Act • 1974 - Employee Retirement and Income Security Act • 1988 - Worker Adjustment and Retraining Notification • 1990 - COBRA (Insurance Coverage) • 1990 - Americans With Disabilities Act • 1993 - Family and Medical Leave Act • 2009 - The Lilly Ledbetter Fair Pay Act

9. Creating Positive Work Experience • Be inclusive of all employees- value opinions • Provide on-going feedback and open communication • Allow for employee engagement (example-Kaizen)

10. National Labor Relations Act (NLRA) • Provides means for unions to gain representation rights of employees • Defines lawful and unlawful activities of employees, unions and employers • Protects employee rights • Established National Labor Relations Board to administer and enforce the NLRA

11. Protected Employee Rights under the NLRA • Form, join or assist a union • Bargain collectively • Engage in concerted activity • Refrain from joining a union, bargaining collectively, or engaging in concerted activity

12. Part II

13. EFCA and Union Organization

14. Employee Free Choice Act National Commercials http://www.youtube.com/watch?v=CijNp_bqNsM http://www.youtube.com/watch?v=qkGd5OvEB2E http://www.youtube.com/watch?v=EUVSbrurkiA http://www.youtube.com/watch?v=_-MYQ38u1rU http://www.youtube.com/watch?v=pAy-ZPWI8RI http://www.youtube.com/watch?v=Hdq5FKyVUwY

15. Union Organizing - Now Union obtains authorization cards from 30% or more of employees Union petitions the NLRB; NLRB schedules election Employer provides voter list Management and the union may openly discuss unionization with employees Secret ballot election is held Union wins or loses NLRB certifies the election This occurs over a 40-60 day period

16. What would the EFCA do? • EFCA would amend the National Labor Relations Act in 3 crucial respects. • Eliminate secret ballot vote • Force initial contracts • Increased penalties for violation of the NLRA

17. Union Organizing - EFCA Union obtains authorization cards from a simple majority of employees Workplace is organized NLRB certifies union This can occur without the employer’s knowledge and may take less time than the current 40-60 day period.

18. Union Organizing Under EFCA:The Bottom Line • Employee’s signed card is their vote • Certification is approved once 50% + 1 of signed cards are received (secret ballot vote eliminated) • Employees vote is done in public (increased risk of peer pressure, intimidation, harassment) • Management and union lose the opportunity to openly discuss unionization with employees

19. Acceptable Manager Conduct • Support Deere-Hitachi’s position on unions • State the facts • Share your opinions

20. Deere-Hitachi’s Position • Deere-Hitachi’s position on unions and union-free operations is: • We don’t need one and we don’t want one • Prefer to maintain direct relationship with employees • Current laws are fair and effective

21. Employer / Manager Restrictions Managers should not: • Accept signed union cards • Make threats against union supporters • Question employees about union-related information • Make promises • Spy on union activities • Discriminate against union supporters • Speculate about business impact T- Threats I- Interrogate P- Promise S- Spy

22. Union Organizer Restrictions • No Solicitation/Distribution Rule • Solicitation and distribution of literature by nonemployees on company property is prohibited. • Solicitation and distribution of literature on company property is prohibited during working time. Working time is when employees are expected to be working and does not include rest, meal or other authorized breaks.

23. Contract Bargaining

24. Bargaining - Now Union wins election Union and employer engage in good faith negotiations to obtain a contract Both sides are free to reject proposed terms and conditions; neither side is required to agree to the other’s demands If bargaining fails, parties can continue negotiating or use “economic weapons” to compel an agreement After one year, employees can vote to de-certify union representation Please note: • There is no timetable. • Both sides have the opportunity to reject and propose terms and conditions. • Employees vote to approve or reject any agreement that is reached.

25. Bargaining - EFCA Union certified Instant certification; union can compel negotiations to obtain a contract within 10 days If no contract is obtained within 90 days, either party may request mediation If mediation does not succeed within 30 days, parties go to arbitration All unresolved terms and conditions can be unilaterally decided by the arbitrator, including wages, benefits, shift start times, mandatory overtime, whether temps may be hired, etc. • The arbitrator’s “collective bargaining agreement” can be binding upon the parties for up to two years; employees cannot vote to de-certify the union during the two-year life of the agreement; there is no right to appeal the arbitrator’s decision. • This means that unions will be able to entice employees into joining the union by guaranteeing that a collective bargaining agreement will be obtained.

26. Bargaining Under EFCA:The Bottom Line • Timetables are incorporated • Arbitrator may decide the terms of the contract • Employees and employers do not have an opportunity to approve/reject the terms • Contract is binding for up to two years • Unions cannot be decertified for two years

27. Penalties

28. Penalties - Now • Post government notice for misspeaking regarding threats, interrogations, or promises • Reinstate employee with back pay if unlawfully discharged

29. Penalties - EFCA • Cost of a misstatement regarding threats, interrogation, or promises can be $20,000 per violation • For unlawful termination, employee is reinstated plus 3 times back pay • With the increase in penalties, implementation of the EFCA may: • Result in more charges against employers • Be more costly and time consuming • Make out of court settlements more difficult and costly

30. EFCA on Capital Hill

31. EFCA on Capital Hill • Modifications of the EFCA are being proposed by various organizations • All versions allow for easier organization of unions

32. Review Management Exercise

33. Labor Relations Scenarios - #1 Jake says he’s gonna be the shop steward when we get the UAW in here. Is he gonna be my boss?

34. Labor Relations Scenarios - #2 I hate unions. Jake is trying to get cards signed. I have a petition here to stop the union. Would you support me by signing the petition? Can I use the copier and mail room to distribute them?

35. Labor Relations Scenarios - #3 I’m afraid they will close our factory due to the poor economy. I’ve heard the UAW could protect my job.

36. Labor Relations Scenarios - #4 I’m throwing a “We don’t need no stinking union” pig picking at Tanglewood Park this Saturday. Could you come by to show your support?

37. Labor Relations Scenarios - #5 Observation by Jake’s Supervisor: Jake was in the cafeteria during lunch trying to get union cards signed. He makes me so mad!! I caught him not wearing his PPE. Since safety violations are serious, I’m going to recommend that we fire him over this.

38. Next Steps

39. Manager Responsibilities • Recognize and report to HR early signs of union activity • Identify and resolve workplace issues • Create and maintain open communication and an environment of trust • Remember: Supervisors and managers should not accept signed union cards. Accepting the cards recognizes the union. • Note: If the bill is passed, we will begin an employee education program to ensure all employees understand the EFCA.