Labor Relations. John A. Fossum. Center for Human Resources and Labor Studies Carlson School of Management University of Minnesota
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1 Labor Relations Development, Structure, Process Eleventh Edition John A. Fossum Center for Human Resources and Labor Studies Carlson School of Management University of Minnesota
2 Table of Contents About the Author Preface v Chapter 1 Introduction 1 iii Contemporary Labor Relations 4 What Unions Do 5 Collective Behavior 7 Group Cohesiveness 7 Class Consciousness 7 External Threat 8 Why Workers Unionize 9 Catalyst for Organization 9 Individuals and Union Organizing 10 Beliefs about Unions 13 Willingness to Vote for Union Representation 14 The Local Community 16 Union Member Beliefs 16 Unions, Their Members, and Decision Making 1.6 Labor Unions in the "New Normal" 17 Why Has the Labor Movement Been in Decline? 18 Transformation in Industrial Relations Systems 20 What Should Unions Do? 22 Summary and Preview 23 Plan of the Book 24 Key Terms 26 Selected Web Sites 26 Chapter 2 The Evolution of American Labor 27 Union Philosophies and Types in the United States 28 Early Unions and the Conspiracy Doctrine 29 Philadelphia Cordwainers 29 Commonwealth v. Hunt 29 Pre-Civil War Unions 30 The Birth of National Unions 31. The National Labor Union 31 The Knights of Labor 32 The American Federation of Labor 33 Labor Unrest 34 The Industrial Workers of the World and the Western Federation of Miners 36 The Boycott Cases 39 Early Legislation 40 Trade Union Success and Apathy 40 World War I 40 The American Plan 41 The End of an Era 42 Industrial Unions 42 The Industrial Union Leadership 42 Organizing the Industrial Workforce 43 Legislation 44 Norris-LaGuardia Act (1932) 45 National Industrial Recovery Act (1933) 45 Wagner Act (National Labor Relations Act, 1935) 45 Employer Intransigence 46 Constitutionality of the Wagner Act 47 Labor Power 48 World War II 50 Reconversion 51 Changing the Balance 51 Taft-Hartley Act 52 The Nezv Production Paradigm 53 Retrenchment and Merger 53 Merger 53 Corruption 54 Landrum-Griffin Act 55 Public Sector Union Growth 55 Federal Executive Orders 55 Civil Service Reform Act 56
3 X Table of Contents Labor in Crisis and Transition 56 Rising Employer Militancy 56 Striker Replacements 57 Neiv Union Leadership 58 Summary 59 Discussion Questions 60 Key Terms 61 Selected Web Sites 61 Chapter 3 Employment Law and Federal Agencies 62 Overview 62 Railway Labor Act (1926) 64 Norris-Laguardia Act (1932) 66 Wagner and Taft-Hartley Acts (as Amended) 68 Definitions 68 National Labor Relations Board 70 Unfair Labor Practices 70 Representation Elections 73 Unfair Labor Practice Charges and NLRB Procedures 73 Right-to-Work Laws 73 Religious Objections to Union Membership in Health Care Organizations 73 Federal Mediation and Conciliation Service 74 National Emergency Disputes 74 Suits, Political Action, and Financial Relationships 74 Summary and Overview 74 Landrum-Griffin Act (1959) 75 Bill of Rights for Union Members 75 Reports Required of Unions and Employers 75 Trusteeships 76 Other Federal Laws and Regulations 76 Byrnes Act (1936) 76 Copeland Anti-Kickback Act (1934) 76 Racketeer Influenced and Corrupt Organizations Act (1970) 76 Other Major Employment Laws 77 Effects of Implementation of Laws 82 Federal Departments and Agencies 82 Department of Labor 82 Federal Mediation and Conciliation Service 86 National Mediation Board 86 National Labor Relations Board 87 Pension Benefit Guaranty Corporation 90 Labor Law Reform: A Continuing Controversy 90 Trade Treaties 92 Summary 92 Discussion Questions 93 Key Terms 93 Selected Web Sites 93 Chapter 4 Union Structure and Government 94 The Local Union 94 Local Union Democracy 96 Functional Democracy 98 Independent Local Unions 101 National Unions 101 National Union Goals 103 National Union Jurisdictions 104 National Structure 105 National-Local Union Relationship 113 National Union Headquarters Operations 114 National Union Governance and Politics 116 National Unions and Public Policy 117 TheAFL-CIO 117 The Change to Win Coalition 118 State and Local Central Bodies 119 Overview of the Union Hierarchy 120 National Union Mergers 120 Union Finances 121 Financial Malfeasance 122 Pension Administration 123 Summary 123 Discussion Questions 124 Key Terms 125 Selected Web Sites 125
4 Table of Contents xi Chapter 5 Unions: Member and Leader Attitudes, Behaviors, and Political Activities 126 The Individual and the Local Union 127 Joining, Socialization, and Leaving 127 Member Participation 130 Commitment to the Union 135 Local Union Effectiveness and Member Behavior 139 The Individual as a Union Officer 139 Stewards 139 Local Officers 141 National Unions and Their Environment 142 Employment Law and Administration 143 The Economy 143 Globalization and Organized Labor 144 Political Action 146 Lobbying 152 Use of Union Dues for Political Activity 154 Summary 154 Discussion Questions 155 Key Terms 155 Selected Web Sites 155 Chapter 6 Union Organizing Campaigns 156 Organizing and Union Effectiveness 157 How Organizing Begins 157 The Framework for Organizing 158 Representation Elections 160 Bargaining-Unit Determination 163 Legal Constraints 163 Jurisdiction of the Organizing Union 164 The Union's Desired Unit 164 The Employer's Desired Unit 165 NLRB Policy 166 Other Issues in Unit Determination 168 The Railway Labor Act and Airline Mergers 169 The Organizing Campaign 170 Employer Size and Elections 172 General Organizing Campaign Rules 173 Union Strategy and Tactics 175 Management Strategy and Tactics 182 The Role of the NLRB 184 Election Certifications 184 Setting Aside Elections 185 The Impact of Board Remedies 185 Election Outcomes 186 Other Types of Representation Changes 187 Contextual Characteristics Related to Election Results 187 First Contracts 189 Summary 191 Discussion Questions 191 Key Terms 192 Web Sites 192 Case: GMFC Custom Conveyer Division 193 Chapter 7 Union Avoidance: Rationale, Strategies, and Practices 195 Historical Overview 196 Capitalistic and Trade Union Philosophies 196 Employer Resistance before World War II 196 The Corporatist Period 197 Union-Free Employment 198 The Economic Rationale 198 Inflexible Rules 199 Profitability 199 Shareholder Value 199 Company Investment Decisions 200 Industrial Structure 200 Union-Free Approaches 201 Environmental Factors Associated with Union Avoidance 201 Wage Policies 202 Nonwage Policies 203 Employment Security 204 Employee "Voice" Systems 205 Other Innovative Techniques 208 Developing Practices in Nonunion Employee Relations 209
5 xii Table of Contents Preventive Programs 211 Management Campaign Tactics in Representation Elections 212 Decertifications 214 Job Structuring 215 Summary 215 Discussion Questions 216 Key Terms 216 Case: Locating the New Recreational Vehicle Plant 217 Chapter 8 The Environment for Bargaining 218 The Legal and Political Structure 219 Regulation of Employment 220 Waxing and Waning of Corporatist Approaches in U.S. Labor Relations 222 Public Policy and Industrial Organization 223 Competition and Concentration in Markets 224 Regulation and Deregulation 225 Global Competition 226 Labor Force Demographics and Employer Growth 228 Changes in Consumer Demand 229 Employer Interests 230 Labor as a Derived Demand 230 Labor-Capital Substitution 233 Labor Markets 235 Employee Interests 236 Union Interests 237 Bargaining Power 237 Ability to Continue Operations (or Take a Strike) 238 Union Bargaining Power 240 Bargaining Structures 240 Multiemployer Bargaining 241 Industryivide Bargaining 243 National/Local Bargaining 244 Wide-Area and Multicraft Bargaining 244 Pattern Bargaining 245 Conglomerates and Multinationals 246 Coordinated Bargaining 247 Craft Units within an Employer 249 Centralization and Decentralization in Bargaining 249 Changes in Industrial Bargaining Structures and Outcomes 250 Public Policy and Court Decisions 251 Influence of Bargaining Power and Structure 252 Summary 253 Discussion Questions 254 Key Terms 254 Case: Material Handling Equipment Association Bargaining Group 255 Chapter 9 Wage and Benefit Issues in Bargaining 256 Union and Employer Interests 257 Components of Wage Demands 257 Equity 257 Ability to Pay 258 Standard of Living 259 Pay Programs 259 Pay Level 261 Pay Structure 262 Pay Form 268 Pay System 278 Union Effects on Pay 286 Union Effects on Pay Levels 286 Union Effects on Pay Structures and Inequality 292 Union Effects on Pay Form 293 Union Effects on Pay Systems 294 Union Effects on Firm Performance 295 Productivity 295 Organizational Investment and Growth Decisions 296 Profitability and Returns to Shareholders 297 Wage Clauses Found in Contracts 299 Summary 299 Discussion Questions 300 Key Terms 300 Web Sites 300 Case: Health Care Bargaining and the PPACA 301
6 Table of Contents xiii Chapter 10 Nonwage Issues in Bargaining 302 Nonwage Provisions of Current Contracts 303 Union and Management Goals For Nonwage Issues 304 Design of Work 304 Work Design History 305 Hours of Work 310 Federal Wage and Hour Laws 310 Collective Bargaining and Work Schedules 311 Entitlements to and Restrictions on Overtime 311 Shift Assignments and Differentials 311 Alternative Work Schedules 311 Paid Time Off 312 Length of Contracts 313 Union and Management Rights 313 Discipline and Discharge 314 Grievance and Arbitration 315 Strikes and Lockouts 316 Union Security 316 Working Conditions and Safety 318 Seniority and Job Security 319 Layoff Procedures 319 Promotions and Transfers 320 Time Away from Work 320 Effects of Unions on Nonwage Outcomes 320 Union Influences on Hiring 321 Promotions, Transfers, and Turnover 322 Retirement Programs 324 Job Satisfaction 324 Summary 326 Discussion Questions 327 Key Terms 327 Case: GMFC Attitude Survey 327 Chapter 11 Contract Negotiations 328 Management Preparation 330 Negotiation Objectives and the Bargaining Team 330 Reviewing the Expiring Contract 330 Preparing Data for Negotiations 331 Identification of Probable Union Demands 331 Costing the Contract 332 Bargaining Books 335 Strike Preparation 338 Strategy and Logistics 338 Union Preparation 339 National-Level Activities 339 Local-Level Preparations 340 Negotiation Requests 341 What Is Bargaining? 341 Behavioral Theories of Labor Negotiations 343 Distributive Bargaining 343 Integrative Bargaining 344 Attitudinal Structuring 344 Intraorganizational Bargaining 347 Bargainers and the Bargaining Environment 348 Attributes of the Parties 348 The Process of Negotiation 350 Perceptions of Bargainers 352 The Roles of the Actors in Negotiations 353 Contract Negotiations 354 Initial Presentations 354 Bargaining on Specific Issues 355 Tactics in Distributive Bargaining 355 Committing to a Position 356 Deadlines 356 Settlements and Ratifications 357 Nonagreement 358 The Bargaining Environment and Outcomes 358 Summary 360 Discussion Questions 361 Key Terms 361 Mock Negotiating Exercise 362 A. Contract Costing 362 B. Approach 368 C. Demands 368 D. Organization for Negotiations 370 E. Negotiations 371 F. Additional Information 371 Agreement between General Manufacturing & Fabrication Company, Central City, Indiana, and Local 384, United Steelworkers of America AFL-CIO 376
7 xiv Table of Contents Chapter 12 Impasses and Their Resolution 399 Impasse Definition 399 Third-Party Involvement 400 Mediation 400 Mediator Behavior and Outcomes 401 Mediator Backgrounds and Training 404 Mediator Activity 404 Fact-Finding 406 Fact-Finding and the Issues 406 Interest Arbitration 407 Review of Third-Party Involvements 407 Strikes 409 Strike Votes and Going Out 409 Picketing 411 Slowdowns 413 Corporate Campaigns 414 Coordinated Campaigns 415 Employer Responses to Strikes 415 Rights of Economic Strikers 419 Evidence on the Incidence, Duration, and Effects of Strikes 420 Boycotts 426 Lockouts 427 Perishable Goods 427 Multiemployer Lockouts 429 Single-Employer Lockouts 429 Bankruptcies 430 Summary 432 Discussion Questions 433 Key Terms 433 Selected Web Sites 433 Case: GMFC Impasse 434 Chapter 13 Union-Management Cooperation 435 Labor and Management Roles and the Changing Environment 435 Organizing and the Evolving Bargaining Relationship 436 Preferences of Management and Labor 437 Levels of Cooperation and Control 437 Integrative Bargaining 438 Mutual-Gains Bargaining 439 FMCS Innovations 440 The Use and Effects of Interest-Based Bargaining 442 Creating and Sustaining Cooperation 444 Methods of Cooperation 446 Areawide Labor-Management Committees 446 Joint Labor-Management Committees 447 Workplace Interventions 448 Alternative Governance Forms 455 Union Political Processes and the Diffusion of Change 455 Management Strategy 457 Research on the Effects of Cooperation across Organizations 457 Research on the Long-Term Effects of Cooperation 460 High-Performance Work Organizations 462 Workplace Restructuring 462 The Legality of Cooperation Plans 463 Employee Stock Ownership Plans 464 The Diffusion and Institutionalization of Change 465 Maintaining Union-Management Cooperation in the Face of External Change 466 Summary 466 Discussion Questions 467 Key Terms 467 Selected Web Sites 467 Case: Continuing or Abandoning the Special-Order Fabrication Business 468 Chapter 14 Contract Administration 469 The Duty To Bargain 469 Conventional Contract Administration 470 Empowered Work Environments 470 Issues in Contract Administration 470 Discipline 471 Incentives 471 Work Assignments 472
8 Table of Contents XV Individual Personnel Assignments 472 Hours of Work 472 Supervisors Doing Production Work 473 Production Standards 473 Working Conditions 473 Subcontracting 473 Outsourcing 474 Past Practice 474 Rules 474 Discrimination 474 Prevalence of Issues 475 Grievance Procedures 475 Steps in the Grievance Procedure 475 Time Involved 479 Methods of Dispute Resolution 481 Project Labor Agreements 481 Grievance Mediation 481 Wildcat Strikes 482 Discipline for Wildcat Strikes 483 Employee and Union Rights in Grievance Processing 484 To What Is the Employee Entitled? 484 Fair Representation 485 Grievances and Bargaining 487 Union Responses to Management Action 487 Fractional Bargaining 488 Union Initiatives in Grievances 489 Individual Union Members and Grievances 490 Effects of Grievances on Employers and Employees 493 Summary 495 Discussion Questions 496 Key Terms 496 Case: New Production Equipment: Greater Efficiency with Less Effort or a Speedup? 496 Chapter 15 Grievance Arbitration 498 What Is Arbitration? 498 Development of Arbitration 499 Lincoln Mills 499 Steehuorkers' Trilogy 499 Boys Markets Relaxes Norris-LaGuardia Perm Plaza and Deferral of Statutory Grievances to Arbitration 501 Additional Supreme Court Decisions on Arbitration in Unionized Firms 502 NLRB Deferral to Arbitration 504 Arbitration Procedures 505 Prearbitration Matters 505 Selection of an Arbitrator 505 Sources and Qualifications of Arbitrators 507 Prehearing 510 Hearing Processes 511 Representatives of the Parties 512 Presentation of the Case 512 Posthearing 512 Evidentiary Rules 512 Arbitral Remedies 514 Preparation of the Award 514 Procedural Difficulties and Their Resolutions 515 Expedited Arbitration 517 Inadequate Representation 518 Arbitration of Discipline Cases 518 Role of Discipline 518 Evidence 519 Uses of Punishment 519 Substance Abuse Cases 521 Sexual Harassment Violations 521 Fighting 522 Work-Family Conflicts 522 Abuse 522 Arbitration of Past-Practice Disputes 523 Arbitral Decisions and the Role of Arbitration 525 Summary 525 Discussion Questions 526 Key Terms 526 Selected Web Sites 526 Cases 526 Case Case Case Case 4 529
9 xvi Table of Contents Chapter 16 Public Sector Labor Relations 530 Public Sector Labor Law 530 Federal Labor Relations Law 531 State Labor Laws 532 Public Employee Unions 536 Bargaining Rights and Organizing 543 Public Sector Bargaining Processes 544 Bargaining Structures 544 Management Organization for Bargaining 544 Multilateral Bargaining 544 Bargaining Outcomes 546 Union-Management Cooperation 550 Impasse Procedures 552 Fact-Finding 552 Arbitration 553 Strikes 559 Summary 561 Discussion Questions 562 Key Terms 562 Case: Teacher Bargaining at Pleasant Ridge 562 Chapter 17 A Survey of Labor Relations in Market Economies 565 The Development of Labor Movements 566 The Structure of Labor Movements 568 Works Councils 569 Globalization 571 Organizing and Representation 575 Bargaining Issues 578 Bargaining Structures 580 Impasses 583 Union-Management Cooperation 584 Contract Administration 587 Public Sector Unionization 587 Comparative Effects of Unionization 587 Summary 592 Discussion Questions 592 Key Terms 592 Glossary 593 Author Index 605 Subject Index 611
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