VA SHRM. Dr. Lou Pugliese Bridgewater College School of Economics and Business Administration. Labor Pains?

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1 VA SHRM Dr. Lou Pugliese Bridgewater College School of Economics and Business Administration Labor Pains?

2 How are unions in the United States organized? What are the key provisions of the laws that govern labor- management relations? How are labor contracts negotiated and administered? What impact have unions had on their members welfare and the economy? What are the challenges that today s unions face? 2

3 A labor union is a group of workers who have organized in order to pursue common work- related goals, such as better wages and benefits, safer worker conditions, and greater job security.

4 How are unions in the United States organized? What are the key provisions of the laws that govern labor- management relations? How are labor contracts negotiated and administered? What impact have unions had on their members welfare and the economy? What are the challenges that today s unions face? 4

5 Employment as a completely voluntary relationship that can be terminated Prevalent prior to 1930s Employers took advantage of this doctrine to discriminate against workers who attempted to organize or join unions Courts supported employers The Depression of the 1930s changed the public s view of unions Many key labor laws were enacted during The Depression in support of unions.

6 Legal Foundation Norris- LaGuardia Act (1932) Workers had a legal right to organize Made it difficult to get injunctions against union activities National Labor Relations Act Illegal for employers to discriminate based on union membership Established the National Labor Relations Board Established voting procedure for workers to certify union as the bargaining agent Required employers to recognize the union and bargain in good faith

7 Focus on Fair Labor Fair Labor Standards Act Banned many types of child labor Established the first federal minimum wage Established a standard 40 hour work week Required that workers receive overtime pay This law was independent of union issues but it was key in establishing federal law regarding labor.

8 Unions Began to Flex Their Strength The labor laws enacted in the 1930s resulted in a surge in union membership After WWII, unions began to take advantage of their new- found strength In the first six months of 1946, almost 3 million workers went on strike The strikes created serious disruptions and created a fear of big labor

9 Managing the Unions Taft- Hartley Act (1947) Declared unfair labor practices by unions illegal Allowed employers to speak against unions during organizing campaign Allowed members to decertify their union Established provisions for emergency strikes Landrum- Griffin Act (1959) Guaranteed all workers the right to participate in union meetings Established secret ballot election of officers Required filing of financial statements Prohibited felons from holding union office

10 How are unions in the United States organized? What are the key provisions of the laws that govern labor- management relations? How are labor contracts negotiated and administered? What impact have unions had on their members welfare and the economy? What are the challenges that today s unions face? 10

11 Collective Bargaining is the process by which representatives of labor and management attempt to negotiate a mutually acceptable labor agreement. 11

12 Under federal law certain subjects are mandatory subjects of bargaining Wages and Benefits Hours of Work Other working conditions Permissible subjects of bargaining Subjects that the two sides can legally negotiate if both agree to do so, but which neither side is legally required to negotiate. 12

13 Distributive Bargaining the traditional approach to collective bargaining. The two sides negotiate, but don t explicitly cooperate Interest Based Bargaining each side identifies concerns it wants to discuss. The two sides explore the issues and work together to find mutually acceptable solutions 13

14 Is there any evidence that union presence is inherently bad in a workplace? Points to ponder NLRB, card check, alternative decisions (election timing, business unit designation, etc.) Learn to fish...

15 Why would your employees consider joining a union? Most workers who seek to organize into a union do so not simply out of a desire to improve wages and benefits, but out of a sense of frustration, a feeling that they have no voice in their workplace and that company managers mistreat them. Employers who want to keep their firms union-free should heed this and take proactive steps to listen to their employees concerns. If management does not listen to its employees, a union organizer will. By Shane Hall, ehow Contributor, updated: March 01, 2011 access 4/10/2011

16 Why would your employees consider joining a union? 4 Simple Instructions: Number 1: Schedule and conduct regular meetings with your employees Number 2: Respond to your employees' concerns in a timely fashion. Number 3: Maintain open lines of communication with your employees. If some of your workers seek to organize or join a union, explain your view as to why the company does not need one. Number 4: Examine your company's policies and payroll practices, ensuring that they do not make you vulnerable to a union organizer. Revise any policies that do not treat employees fairly. By Shane Hall, ehow Contributor, updated: March 01, 2011 access 4/10/2011

17 Well of course we ve done all that, why do I still have : Labor Pains?

18 h"p:// You can start with the United States Department of Labor

19 Know your competition... Pick your partner

20 Know your competition... There are many reports available...

21 Total membership for this local has declined over 20% from Total assets and total receipts have remained constant from Receipts per member has increased almost 25% from

22 I m impressed with the local leadership s commitment to their worker s cause. Can you believe they do this for only $80, $90, per year in compensation?

23 h"p:// Not that they don t have stress in their jobs. In recent history they ve been brought up on NLRB charges for issues with their membership 4 times!

24 With 3 failure to represent claims, you might ask their shrinking membership to explain what they are actually getting for their ever increasing dues.

25 This was a class action of 350 employees charged against the local

26 And it s not just one company complaining. These two complaints alone count for 450 members, or over 20% of the members represented by the local.

27 ANTI-UNION COMMUNICATION Now that you ve done some research, what can you really talk about?

28 ANTI-UNION COMMUNICATION Let s turn to an expert, there are many available ANTI-UNION COMMUNICATION PROGRAM AND TIPS TO AVOID UNFAIR LABOR PRACTICE CHARGES DAVID A. MCCLURG COOK & FRANKE, S.C. 660 EAST MASON STREET MILWAUKEE, WI (414) access 4/8/2011

29 ANTI-UNION COMMUNICATION A. Managers Must Understand and Communicate the Company s Position If asked about the Company s position on unionization by an employee, supervisors should let the employee know that the Company is not anti-union, it is pro-employee. access 4/8/2011

30 ANTI-UNION COMMUNICATION B. Issues to Address with Employees as part of your Communication Program Employer prefers to deal with employees as individuals; to listen to their problems and resolve their grievances on an individual basis without union intervention, but this may be impossible if a union becomes involved. Employer would like to continue to have the ability to recognize employees for their individual contributions and reward them for their own performance, but this can be very difficult, if not impossible if a union is in place. Employer s success has been based on our ability to meet or exceed our customers' requirements. Many competitors would be delighted to have the business we currently enjoy. If we are to continue to grow and provide opportunities for our current and future employees, we must maintain the flexibility to respond quickly, and better and more cost-effectively than our competitors, to changes in customer demands. It would be very difficult to do this if we must work through a cumbersome collective bargaining agreement. access 4/8/2011

31 ANTI-UNION COMMUNICATION B. Issues to Address with Employees as part of your Communication Program History has demonstrated that employees can be less motivated to produce high quality work when they know that no matter how hard they work and how well they do, they are only going to receive the same increase as everybody else, including the poor performers. Unions are aggressively pursuing organizing campaigns because their membership has been declining for many years and they've reached a point where, if they can't increase membership, they may have to go out of business. Membership is important to the unions because their principal source of income is from dues, fines, assessments and special levies collected from members, along with interest and dividends they earn for themselves from investments made with money collected from members. One reason for the significant decline in union membership stems from the wealth of social legislation protecting the rights of employees. These laws have duplicated many of the protections that unions previously negotiated for their membership. Obviously, many people don't feel the need to pay for the same thing twice, through income tax and again through union dues. access 4/8/2011

32 ANTI-UNION COMMUNICATION B. Issues to Address with Employees as part of your Communication Program Union representatives may tell employees that authorization cards represent an interest survey or that the cards can only be used to petition for an election. Explain that if employees sign the cards, they may be helping to authorize an election that could ultimately obligate them to make monthly dues payments give up the right to speak for themselves. Employees need to understand that if a union becomes their representative, the employees will be covered by whatever collective bargaining agreement is negotiated and will enjoy the same benefits or suffer the same restrictions as other employees even if they don t support the union. Under the National Labor Relations Act, employees have a number of rights, including the right to refrain from participating in union organizing activity, and to persuade other employees not to support the union. Emphasize that the company is restricted in the information it can provide employees about the union because it must be careful not to commit any unfair labor practices under the NLRA. access 4/8/2011

33 ANTI-UNION COMMUNICATION B. Issues to Address with Employees as part of your Communication Program While the Company would have a duty to bargain in good faith with any union that represents the employees, the union cannot force the company to agree to any particular provisions. If negotiations lead to an impasse and strike, employees will not receive pay or benefits from the company or unemployment compensation from the state, and it may take a very long time if they can ever recoup the money they lost while they were on strike. Further, if they strike for economic reasons, they may be permanently replaced. Once a union is voted in, the company cannot legally help them to decertify it. Our Company has an Open Door policy and promotes employee involvement in decisions affecting their employment experience. access 4/8/2011

34 T.I.P.S. to Avoid Unfair Labor Practice Charges under the NLRA. Under the NLRA it is an unfair labor practice for any employer to: 1) interfere with, restrain or coerce an employee s right to organize; 2) dominate, interfere with or support formation or administration of a labor union; 3) discriminate at hire or in any term or condition of employment to support or undermine membership in a labor organization; 4) punish or discriminate against an employee who files charges or testifies under the Act; or 5) refuse to bargain in good faith with representatives of their employees. access 4/8/2011

35 DONT S Examples of Unfair Labor Practices Taunt Jim, I thought you were smarter. But here you are, meeting with those bonehead union types. Threaten Jim, if we allow the union to get in here, there will be no more perks like the free donuts and coffee. Interfere Management changes employee lunch time to prevent large groups meeting for organizing activities. Interrogate Hey, Jim, we have always had a good relationship. So tell me, what did you guys talk about at the organizing meeting? Promise Vote against the union, and I will recommend you to fill the next management opening. Punish We don t promote union organizers into management positions. Spy Jim, I want you to keep an eye on Mary. I think she is trying to organize the workers. Surveillance Jim, I need you to keep me in the loop on all union activities and publications. access 4/8/2011

36 DONT S Examples of Unfair Labor Practices If a Union Representative or Sympathetic Employee Contacts you Directly: Do not look at any list of employees that a union representative attempts to give you. Say: I m not authorized to handle such matters. Do not look at any cards or letters with names on them. Do not look at any papers that employees attempt to hand you. The union can argue that accepting such lists or petitions represents the employer s recognition of a collective bargaining unit and the union as the unit s bargaining representative. access 4/8/2011

37 Early Warning Signs of Union Organizing Activities Supervisors should look for signs of organizing activity and immediately report them to the HR manager. Activities that may indicate early union organizing include: Employees who have not had previous relationships suddenly become very involved with each other. Unusual congregation of employees in groups. Awkward silence when a supervisor approaches. Workers inexplicably drifting outside of their normal work areas. Worker s reference to off-site meetings. Outsiders appearing in or around the workplace. Phone, photocopier or fax machines use for personal business increases. Complaints or grievances increase in number (may be used as a union rallying point). access 4/8/2011

38 Early Warning Signs of Union Organizing Activities Much activity you will never have the opportunity to see: Union local officials visiting employees and their families in their homes Social gatherings or outings, dinners, bowling, etc. Offsite discussions on card signings and reasons why you wouldn t want to be an outsider access 4/8/2011

39 How are unions in the United States organized? What are the key provisions of the laws that govern labor- management relations? How are labor contracts negotiated and administered? What impact have unions had on their members welfare and the economy? What are the challenges that today s unions face? 39

40 ANTI-UNION COMMUNICATION PROGRAM AND TIPS TO AVOID UNFAIR LABOR PRACTICE CHARGES DAVID A. MCCLURG, COOK & FRANKE, S.C. 660 EAST MASON STREET, MILWAUKEE, WI (414) Reference sites (referenced): By Shane Hall, ehow Contributor, updated: March 01, 2011 access 4/10/2011 h"p:// Unites States Department of Labor searching for informa>on on locals h"p:// Union Profiles, including NLRB charges h"p:// qa.htm LawMemo Beck and Union Security, other terms

41 Reference sites (background): access 6/27/ access 6/27/2011 How Arbitration Works: Elkouri & Elkouri (book) Frank Elkouri (Author), Edna Asper Elkouri (Author), Marlin M. Volz (Editor), Edward P. Goggin (Editor) Employment Law Information Network SHRM

42 Dr. Lou Pugliese Bridgewater College School of Economics and Business Administration Thank you! Q & A lpuglies@bridgewater.edu

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