Chapter Eleven. Learning Objectives

Transcription

1 Chapter Eleven Enhancing Union Management Relations Learning Objectives 1. Explain how and why labor unions came into being. 2. Discuss the sources of unions negotiating power and trends in union membership. 3. Identify the main focus of several major pieces of labor management legislation. 4. Enumerate the steps involved in forming a union and show how the National Labor Relations Board is involved in the process. reserved. 11 2

2 Learning Objectives (cont d) 5. Describe the basic elements in the collective bargaining process. 6. Identify the major issues covered in a union management contract. 7. Explain the primary bargaining tools available to unions and management. reserved Chapter 11 Outline The Historical Development of Unions Early History Evolution of Contemporary Labor Organizations Organized Labor Today Union Membership Membership Trends Union Management Partnerships Labor Management Legislation Norris LaGuardia Act National Labor Relations Act Fair Labor Standards Act Labor Management Relations Act Landrum Griffin Act reserved. 11 4

3 Chapter 11 Outline (cont d) The Unionization Process Why Some Employees Join Unions Steps in Forming a Union The Role of the NLRB Collective Bargaining The First Contract Later Contracts Union Management Contract Issues Employee Pay Working Hours Security Management Rights Grievance Procedures reserved Chapter 11 Outline (cont d) Union and Management Negotiating Tools Strikes Slowdowns and Boycotts Lockouts and Strikebreakers Mediation and Arbitration reserved. 11 6

4 Union Management Relations Labor union An organization of workers acting together to negotiate their wages and working conditions with employers Union management (labor) relations The dealings between labor union and business management, both in the bargaining process and beyond it reserved The Historical Development of Unions Early history Craft union Knights of Labor reserved. 11 8

5 The Historical Development of Unions (cont d) Early history (cont d) American Federation of Labor (AFL) Industrial Workers of the World (IWW) reserved The Historical Development of Unions (cont d) Evolution of contemporary labor organizations Industrial union Congress of Industrial Organizations (CIO) AFL CIO reserved

6 Organized Labor Today Union membership Approx. 15.5% of the nation s workers belong to unions AFL CIO Teamsters United Auto Workers (UAW) reserved Organized Labor Today (cont d) Membership trends Union membership has declined steadily since 1980 Heavily unionized i industries i have been decreasing or not growing as fast as nonunionized industries Firms have moved from unionized areas (Northeast, Great Lakes region) to less unionized areas (Southeast, Southwest) Largest employment growth is in service industries, which are typically not unionized Some companies are moving manufacturing to other (less unionized) countries Management is providing benefits that reduce employees need for unionization reserved

7 Organized Labor Today (cont d) Union management partnerships The adversarial nature of past union management relations has given way to limited cooperative partnerships between unions and companies Companies gain increased productivity, improved quality, and reduced costs Workers gain increased response to their needs, more decision making i opportunities, less supervision, i more responsibility, and increased job security Unions gain credibility, strength, and increased membership reserved Labor Management Legislation Norris LaGuardia Act (1932) National Labor Relations Act / Wagner Act (1935) Fair Labor Standards Act (1938) Labor Management Relations Act / Taft Hartley Act (1947) Landrum Griffin Act (1959) reserved

8 The Unionization Process Why some employees join unions As a way to combat alienation and loss of personal identity i from dull and repetitive i jobs Due to the perception that union membership increases job security As a way of expressing dissatisfaction with one or more elements of the job Due to personal background (family history of union membership) As a requirement to keep a job under provisions of the labor contract between the union and the firm reserved Steps in Forming a Union (cont d) Complicating factors Bargaining gunit Jurisdiction reserved

9 Steps in Forming a Union (cont d) The Role of the NLRB Overseeing organizing i campaign Conducting the election Certifying the results Monitoring questionable behavior reserved Collective Bargaining The process of negotiating a labor contract with management First contract Pre negotiation preparations by both parties Exchange of initial contract demands by union and company Bargaining over issues until agreement is reached (or strike) Agreement is ratified by a vote of the union membership Agreement is signed and becomes a legally binding agreement (or more negotiation) Later contracts Pre negotiation preparations are more intense Each side may take a harder line on the issues in negotiations Contract expiration date produces tension reserved

10 Union Management Contract Issues Employee pay Forms of pay Direct compensation Deferred compensation Magnitude of pay Parity with local and national industry pay levels Real wage protection through cost of living clauses Financial condition of employer Cost sharing for benefits reserved Union Management Contract Issues (cont d) Employee pay (cont d) Pay determinants Management seeks to tie wages to each employee s productivity Unions feel this creates unnecessary competition and usually suggest pay according to seniority Management seeks to constrain benefits to only some employees Unions want equal application of benefits reserved

11 Union Management Contract Issues (cont d) Working hours Overtime Special hourly rates for weekend or holiday work The right of employees to refuse overtime Premium pay for workers on less desirable shifts Starting times Length of meal periods and work breaks reserved Union Management Contract Issues (cont d) Security For the individual Job security Seniority For the union Membership Closed shop Union shop Agency shop Maintenance shop reserved

12 Union Management Contract Issues (cont d) Management rights Thefirmwantstocontrolwhomithires to whom it hires, how work is scheduled, how discipline is handled Unions seek to control these matters Some union executives have been given seats on corporate boards of directors reserved Strikes Picketing Union and Management Negotiating Tools Wildcat strike Slowdowns and boycotts Slowdown Boycott reserved

13 Union and Management Negotiating Tools (cont d) Lockouts and strikebreakers Lockout Strikebreaker Mediation and arbitration Mediation Arbitration reserved

14 Pride/Hughes/Kapoor, BUSINESS, 10th edition Figure 11.1 Historical Overview of Unions 148 Labor union membership, in millions Historical Overview of Unions Landrum-Griffin Act 1959 UAW rejoins AFL-CIO 1981 AFL-CIO merged 1955 Taft-Hartley Act 1947 Independent craft unions founded and disbanded Knights of Labor founded 1869 AFL founded 1886 Fair Labor Standards Act CIO founded 1938 Wagner Act NLRB established 1935 IWW founded 1905 Norris-LaGuardia Act 1932 UAW leaves AFL-CIO 1968 Teamsters, SEIU, Unite Here, UFCW leave AFL-CIO to form Change to Win Coalition, July Sources: U.S. Bureau of Labor Statistics, Union Membership, accessed October 9, Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3768X_11_ch11_p indd 148 3/6/09 8:28:36 PM

15 Pride/Hughes/Kapoor, BUSINESS, 10th edition Figure 11.2 Steps in Forming a Union Steps in Forming a Union Organizing campaign 2 Authorization cards 3 Election 4 NLRB certification 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3768X_11_ch11_p indd 149 3/6/09 8:28:37 PM

16 Pride/Hughes/Kapoor, BUSINESS, 10th edition Figure 11.4 Steps in Resolving a Grievance 150 Steps in Resolving a Grievance 1 ORIGINAL GRIEVANCE 2 BROADER DISCUSSION 3 FULL-SCALE DISCUSSION 4 ARBITRATION Employee takes grievance to shop steward. Employee, shop steward, and supervisor discuss grievance and put grievance and response in writing. Employee, shop steward, supervisor, representative from union s grievance committee, and firm s industrialrelations representative discuss grievance. All of the people included in the broader discussion plus the remaining members of the union s grievance committee and a high-level manager discuss grievance. Neutral third party hears both sides of grievance, reviews written documentation, and resolves matter. E S E S R U E S R U E A S SS SS SS M U E Employee S Supervisor A Arbitrator U Union representative SS Shop steward M Manager R Industrial-relations representative 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3768X_11_ch11_p indd 150 3/6/09 8:28:37 PM

17 Pride/Hughes/Kapoor, BUSINESS, 10th edition Figure 11.A Chapter Outline 151 Chapter 11 Outline Enhancing Union-Management Relations The Historical Development of Unions Early History Evolution of Contemporary Labor Organizations Organized Labor Today Union Membership Membership Trends Union-Management Partnerships Labor-Management Legislation Norris-LaGuardia Act National Labor Relations Act Fair Labor Standards Act Labor-Management Relations Act Landrum-Griffin Act The Unionization Process Why Some Employees Join Unions Steps in Forming a Union The Role of the NLRB Collective Bargaining The First Contract Later Contracts Union-Management Contract Issues Employee Pay Working Hours Security Management Rights Grievance Procedures Union and Management Negotiating Tools Strikes Slowdowns and Boycotts Lockouts and Strikebreakers Mediation and Arbitration 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3768X_11_ch11_p indd 151 3/6/09 8:28:37 PM

18 Pride/Hughes/Kapoor, BUSINESS, 10th edition Figure 11.B Class Exercise Class Exercise 152 Management and unions draw on certain tools to influence one another during and after contract negotiations. Complete the grid below to reinforce each tool used. Cite specific examples if possible. 1. Strikes Tool Used By Actions Taken 2. Picketing 3. Slowdowns 4. Primary boycott 5. Secondary boycott 6. Lockouts 7. Strikebreakers 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3768X_11_ch11_p indd 152 3/6/09 8:28:37 PM

19 Pride/Hughes/Kapoor, BUSINESS, 10th edition Figure 11.C Debate Issue Debate Issue Should you join a union? 153 YES Joining a union ensures that workers requests and demands receive attention. Union members make more money when compared to non-union workers. Union membership gives workers a feeling that they belong to a group and are not just part of a machine. NO Union members and firms with unions still have problems just like non-unionized firms. Union members must pay union dues and they may have to strike, which could lead to job loss. Unions are no longer needed because management is more in tune with workers needs Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3768X_11_ch11_p indd 153 3/6/09 8:28:37 PM

20 Pride/Hughes/Kapoor, BUSINESS, 10th edition Figure 11.D Chapter Quiz Chapter Quiz Mining, automotive, and steel workers commonly belong to a(n) a. craft union. b. labor grade. c. industrial union. d. agency union. e. city union. 2. The Wagner Act is best described as a(n) a. pro-management law. b. pro-union law. c. new state labor law. d. law amending the Taft-Hartley Act. e. antitrust law. 3. If all of the hourly employees at the Bluebell Ice Cream factory decided to unionize, this group of employees would be termed the a. represented workers. b. membership. c. shop. d. jurisdiction. e. bargaining unit. 4. Before a contract is legally binding on labor and management, it must be a. notarized by the U.S. Department of Labor. b. accepted by management. c. approved by the mediator. d. published for three days in a local newspaper. e. ratified by the union membership. 5. The last stage of the union-management grievance procedure is called a. mediation. b. arbitration. c. strike. d. facilitation. e. receivership Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3768X_11_ch11_p indd 154 3/6/09 8:28:37 PM

21 Pride/Hughes/Kapoor, BUSINESS, 10th edition Figure 11.E Federal Laws Governing Labor-Management Relations 155 Federal Laws Governing Labor- Management Relations Act Date Enacted Norris-LaGuardia Act 1932 National Labor Relations Act (Wagner Act) 1935 Fair Labor Standards Act 1938 Taft-Hartley Act 1947 Landrum-Griffin Act Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3768X_11_ch11_p indd 155 3/6/09 8:28:37 PM

22 Pride/Hughes/Kapoor, BUSINESS, 10th edition Figure 11.F States with Right-to-Work Laws 156 States with Right-to-Work Laws 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3768X_11_ch11_p indd 156 3/6/09 8:28:38 PM

23 Pride/Hughes/Kapoor, BUSINESS, 10th edition Figure 11.G Union-Management Contract Issues 157 Union-Management Contract Issues Employee pay Working hours Employee benefits Job security Management rights Grievance procedures Work rules 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3768X_11_ch11_p indd 157 3/6/09 8:28:41 PM

24 Pride/Hughes/Kapoor, BUSINESS, 10th edition Figure 11.H AFL-CIO Organization Chart AFL-CIO Organization Chart 158 Source: Adapted from and Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3768X_11_ch11_p indd 158 3/6/09 8:28:41 PM

25 Pride/Hughes/Kapoor, BUSINESS, 10th edition Figure 11.I Definition of Union-Management Relations 159 UNION-MANAGEMENT RELATIONS The dealings between labor unions and business management, both in the bargaining process and beyond it. More simply put, it is labor relations Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3768X_11_ch11_p indd 159 3/6/09 8:28:46 PM