Collective Bargaining

Transcription

1 Collective Bargaining

2 Categories for Bargaining Issues Mandatory Permissive Prohibited Direct and immediate effect on jobs or labor costs tests Do NOT require a response or bargaining by other party* Demands counter to law or public policy * neither party may go to impasse (refuse to agree to a contract) over a permissive issue. (Fossum, 2006, p )

3 Mandatory Bargaining Subjects Include but not limited to: Wages Hours Bonuses Safety Seniority Pensions (current & retired) Group insurance Grievance procedure Procedures for discharge, layoff, recall or discipline Union shop (Hilgert, 1999)

4 Bargaining Strategies Integrative bargaining Distributive bargaining Attitudinal structuring Intra-organizational bargaining (Ballot, 1992)

5 Bargaining Structure Definitions of Bargaining Structure Formal bargaining structure is employees and employers who are legally bound by terms of agreement Informal bargaining structure is employees or employers who are affected by results of a negotiated settlement through either pattern bargaining or other non-binding process About 180, ,000 agreements exist in the U.S. (Katz & Kochan, 2000)

6 Types of Bargaining Units In addition to craft or industrial, bargaining may be: Multiemployer (very centralized) Single-employer-multiplant Single-employer-single plant (very decentralized) (Katz & Kochan, 2000)

7 Bargaining Structure: Why? Bargaining Leverage Unions can increase bargaining leverage by organizing a large share of the product market Small firms in competitive industry or local service industries (hotels, local trucking) may form employer associations and prefer centralized bargaining structures Prevents whipsawing In event of strike, no employer gains advantage In apparel industry, employers gain stability while union workers have wage standardization that ensures that competition across the firms does not depend on low wages (Katz & Kochan, 2000)

8 Pattern Bargaining Pattern bargaining is an informal means to spread the terms of one formal agreement to another It is an informal substitute for centralized bargaining aimed at taking wages out of competition The War Labor Board encouraged pattern agreements in WWII to reduce disputes (Katz & Kochan, 2000)

9 Bargaining Power - UNION In general, employer costs highest and union bargaining power greatest when: Shuts down production/service completely Occurs at a peak season Involves non-automated services or perishable goods Is in a competitive industry Occurs in boom times Results in whisteblowing if company is in violation of a law or regulation Facilities are highly integrated production-wise with small inventories on-hand (Ballot, 1992; Fossum 2006)

10 Bargaining Power - EMPLOYER In general, union and worker costs highest and employer bargaining power greatest when: A stoppage or disruption would reduce worker income Dissident factions are present or members are of mixed feelings regarding action Causes membership loss, including resignations and return to work Replacement workers are readily available There is more than one facility with different contract expiration dates across facilities (Ballot, 1992; Fossum, 2006)

11 Steps When Ending or Modifying an Agreement Must notify other party in writing of desire to end or modify contract 60 days before date on which contract expires Within 30 days of above notice, must notify the Federal Mediation and Conciliation Service (FMCS) AND relevant state or territorial agencies if still no agreement If go on strike without following proper process, you lose protection of the law (Hilgert, 1999)

12 Good Procedures for Bargaining Contract proposals exchanged ahead of expiration Avoid 11 th hour bargaining Use appropriate mediation Conduct negotiations at the table and not in the press Strike issues should be well understood Use a problem-solving approach Understand that unofficial bargaining may occur in other settings (Mills, 1994 Joint Labor Management Committee of Retail Food Industry)