Labor Relations

1. Labor Relations

2. Why do unions exist? • Poor Management • Protect workers rights • Positive impact on employee wages • Protect Job Security • Provide Employee voice and instrumentality • Get fair share of pie • Checks and balances • Don’t forget past and present management abuses

3. Legislative Framework • Three periods of legislative action and Union membership trends • Strong Encouragement – 1930s • Norris LaGuardia Act (1932) & NLRA (1935) • Modified Encouragement – 1940s • Taft-Hartley Act (1947) • Detailed Regulation of Internal Union Affairs – late 1950s • Landrum-Griffin Act (1959)

4. The Triumvirate • Three of these pieces of legislation pretty much shape the characteristics of contemporary labor relations • National Labor Relations Act • Taft-Hartley Act • Landrum-Griffin Act • Essentials is not a big fan of this act

5. Strong Encouragement – 1930s • Norris-LaGuardia Act • Guaranteed rights of Ees to bargain collectively • Ideas there, but no enforcement provisions • National Labor Relations Act • Added teeth to N-L Act • Banned Unfair Labor Employer Practices • Must have secret ballot elections that are determined by majority rule • Established NLRB to enforce these additions

6. Unfair Employer Labor Practices • Interfering with, restraining, or coercing employees against union membership • Management cannot interfere with formation or administration or labor organization • Can’t bribe employees, move business to avoid unionization, or blacklist sympathizers • No discrimination because of union activity • Cannot fire for filing unfair practice charges • Cannot refuse to bargain collectively with employees chosen union representation

7. Modified Encouragement – 1940s • Taft-Hartley Act (Labor-Management Relations Act) • Reflected public’s less enthusiastic attitudes toward unions • Allows Ers to express their views about unions more freely • Limits Unions by: • Prohibiting unfair union practices • Enumerating rights of Ees as union members • Enumerating rights of Ers • Allowing President of U.S. to temporarily (80 days total) bar strikes for national interests (emergency)

8. Unfair Union Practices • Banned from restraining or coercing Ees from exercising their bargaining rights • Unions cannot cause Ers to discriminate in any way against an EE to encourage or discourage union membership • Unions must bargain in good faith

9. Exercising the Taft-Hartley Act • Just exercised in Dockworkers strike • Last done before that in 1978 • Steps: • President forms board to investigate disputes • Asks court to force workers back to work for 60, then 80 days • Cooling off period • Mediators work with two sides in meantime • After 60 days, NLRB polls workers on employer’s last offer • If workers reject offer, can strike again • Invoked 35 times, worked 22, not 10, court rejected 3

10. Detailed Regulation of Internal Union Affairs – late 1950s • Landrum-Griffin Act • Aim was to protect union members from possible wrongdoing by their union reps • Laid out rules for union elections • Must elect officers once every five years using secret ballots

11. Union Structure • Five types of Union Security: • Closed Shop – hire only union members – outlawed in 1947 • Union Shop – hire nonunion individuals, but they must join the union after probationary period • Agency Shop – Ees not belonging to Union still pay dues (Assumption - Unions benefit plight of all workers) • Open Shop – Union membership up to employees • Maintenance of Membership Arrangement – Union members employed by firm must retain membership

12. AFL-CIO • Governing body to those unions who decide to affiliate with the Federation of Labor • American Federation of Labor • Congress of Industrial Organizations • Merged in 1955 • Provide structure and lobbying body • No-raiding pacts of affiliated unions • Handles a lot of public relations issues – located right across the street from the Capitol

13. Local Unions • May or may not be affiliated with AFL-CIO • Purpose revolves around contract negotiation and grievance handling • Cornerstone of union representation

14. Union Drives • Initial Contact – Union determines ee interest • Authorization Cards – need to get 30% of eligible Ees in bargaining unit to sign petition for election • The Hearing – Er chooses whether or not to contest – NLRB is contacted by union to request a hearing • The Campaign – Union and ER appeal to Ees for votes • The Election – Must be held within 30-60 days of NLRB decision about vote

15. Contact • Occurs because Unions want to expand, Ees take initiative in soliciting Union, or Organization seems an easy target for Unionization • Technology now impacts contact stage – Ers need to be wary of putting prohibitions on Union-related emails • Ers should focus on avoiding contact rather than battling Unions in campaigns • Union Salting – undercover union person obtains employment with firm to strum up support

16. Authorization Cards • Must get 30% of Ees in bargaining unit to sign on • Managers should stay clear of the cards – they are considered confidential and if managers know who sign – can open up for unfair ER practice

17. Hearing • Ers can choose to: • Not contest union recognition – no hearing needed and election goes immediately • Not contest right to an election – no hearing needed and parties stipulate election • Contest – go to NLRB • Evidence is presented (30% of cards), the bargaining unit is defined, and the election date is to be set

18. Campaign • Must be careful about unfair practices – both sides • Yet they are likely going to happen to some extent • Management will try to set record straight on what unionization means for Ees • Union will try to sell benefits of union membership

19. Election • Election held, voting is secret, majority rules • If unfair employer practices occur, a “no union” decision can be reversed • If fails, can’t have another election for 12 months

20. Decertification Elections • Labor laws grant employees the right to legally terminate union representation through an election • About 500 decertification elections held annually,about 2500-3000 certification elections held

21. Collective Bargaining Process • Certain Bargaining items must be negotiated, there are also illegal bargaining items • Bargaining must be in good faith – done between negotiating teams • Parties are not compelled to agree, but must communicate and negotiate • Ers are likely to stress that the bargaining process does not compel them to come to terms with Union – though this is likely not the most constructive stance once Unionization is inevitable

22. Collective Bargaining Process • Lots of research occurs before parties sit down (at least it should) so that reasonable or informed positions can be taken • Teams are selected that are composed of union rep (local) and shop stewards (elected) • Must appoint a spokesperson – important role for relaying communication

23. Bargaining in Bad Faith • Surface Bargaining – going through motions • Concessions – should be willing to make them • Imposing Conditions – imposing conditions considered to be onerous is a problem • Bypassing the representative – cannot usurp union’s representation

24. Mandatory Time table for agreement Wages Pay rates Vacations Pensions Severance Layoffs Drug Testing Permissible Management rights as to union affairs Continuance of past contract Scope of bargaining unit Bargaining Items • Illegal • Closed shop • Separation of ees based on race • Discriminatory treatment

25. Bargaining Stages • Each side presents demands • Reduction of demands • Parties form joint subcommittees to find alternative solutions • Informal settlement reached • Formal agreement worked out and signed

26. The Dreaded Impasse • When parties can’t move towards resolution/agreement – Impasse occurs • Resolved by: • 3rd Party Involvement • Strikes • Other Alternatives

27. 3rd Party Involvement • Mediation • Neutral 3rd party tries to help parties come closer together, focus on reducing conflict and increasing agreement • Does not have power to force agreement • Fact-finder • Studies issues and makes public recommendations • Arbitration • Present conflict to arbitrator for binding resolution – dictate settlement terms

28. Strikes • Number per year has declined from 380 in 1970 to 29 in 1997 • Economic Strike • Results from failure to agree to terms in negotiation • UPS, MLB (players and umps), Airlines strikes, Maple Heights teachers • Unfair Labor Practices Strike • Aimed at protesting illegal conduct by ER • Wildcat Strike • Unauthorized strike occurring during a contract period • Sympathy Strike • Union strikes in support of another union’s plight

29. Other Alternatives • Boycott • Union members do not buy goods or services from organization • Lockout • ER attempt to break an impasse • Dockworkers on west coast, MLB

30. Unions and Practice • Unions are political entities • Therefore, decisions will be politically motivated • Elections at least every 5 years, typically 3 years • Negotiating teams are elected and handle: • Bargaining • Administration of grievances • Everyday issues

31. Unions and Practice • Honesty is absolute policy • Integrity in dealings is absolutely important • After the negotiations, must work together • UPS – wanted to implement a team-based work concept, ended up being a huge bone of contention because of adversarial relationship with union

32. Unions and Practice • Company issues MUST be handled through union reps • Failure to do so, or attempts to deal with workers directly, can be an unfair employer labor practice • This is one of the hot topics that management will try to communicate to workers thinking about organizing • Akron Provost sent emails pre-information session about union activity and how it would change the management-employee relationship

33. Unions and Practice • Establish a working relationship • Unions can’t actively help management – not in job description and would not have a purpose if they did – but they can NOT impede management attempts to improve productivity • Bill Ford lunches with UAW head weekly to maintain relations • Flexible work issues are often tough to deal with because of union status

34. Labor Case 1: UPS Strike • Teamsters vs. UPS Management • Problems brewed for years • Disjointed union representation was at fault for many of those years • 1991, Union started to make strategic moves to set up for the strong stance it took in 1997 • Had to create unity in traditionally non-united worker corps (Part vs. Full-Time)

35. UPS Strike • UPS Issues • Demanded give backs (UAL is doing this now) • Thought they could take advantage of disjointed unions • Exploit division/rivalry between the PT and FT workers • Team-Concept thus seen as an attempt to undermine union reps

36. UPS Strike • Union Built Unity • Did not spend money on advertising, rather held rallies that caught press attention • Surveyed members to get feedback • Built groundswell of support and unity with collateral materials – like t-shirts and hats • Attacked big issues brought to table, like UPS desire to take over pension funds • Able to create a hometown story because of UPS presence in every town in US

37. UPS Strike • UPS and Unions claimed victory • Workers went back to work • UPS went on as it was instead of firing all workers and becoming a smaller, possibly more profitable carrier • Teamsters used settlement to build membership

38. Labor Relations Case 2: Dockworkers • 1st use of Taft-Hartley since 1978 • Interesting that it was used pre-election • Bush administration already seen as pro-management because of use of Railway Act to prohibit strikes in Airlines and Railroads post 9/11 • Data has been mixed on TH effects • In this case, movement is being made towards agreement on some issues – like development of technology • Dockworkers make $106K per year and the occupation is pretty closed – families pass jobs down

39. Future of Unions • Essentials would blame “me generation” and Reagan for decline of membership • Seems to be fairly constant when you look at numbers • Playing a prominent role in many disputes • Provides a check and balance for management • Continuous expansion in white collar jobs