© 2008 by Prentice Hall 12-1

Bargaining Unit

Consists of employees (not necessarily union members) recognized by employer or certified by administrative agency as appropriate for representation by labor organization for purposes of collective bargaining

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Steps for Forming a Bargaining Unit External EnvironmentInternal Environment

Signing of Authorization

Cards

Petition for

Election

Election Campaign

Election and

Certification

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Signing Authorization Cards

• Document indicating employee wants to be represented by labor organization in collective bargaining

• Is there sufficient interest on part of employees to justify unit?

• Evidence of interest when at least 30% of employees in workgroup sign authorization cards

• Usually need 50% to proceed

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Petition for Election

• After authorization cards have been signed, petition for election made to regional NLRB office

• NLRB will ordinarily direct that election be held within 30 days

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Election Campaign

• Both union and management usually promote causes actively

• Cannot threaten loss of jobs or benefits• Cannot misstate important facts• Illegal to incite racial or religious prejudice

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Election and Certification

• NLRB monitors secret-ballot election • Board issues certification of results to

participants• If majority of employees vote for union,

NLRB will certify

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Collective Bargaining

• Fundamental to management-organized labor relations in United States

• Process does not require either party to make concessions; only compels them to bargain in good faith

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Forms of Bargaining Structures

• One company dealing with a single union

• Several companies dealing with single union

• Several unions dealing with single company

• Several companies dealing with several unions

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Collective Bargaining Process

Preparing for Negotiation

Bargaining Issues

Preparing for Negotiation

Reaching the Agreement

Negotiation Breakdowns?

Ratifying the Agreement

Administration of the Agreement

Overcoming Breakdowns

EXTERNAL ENVIRONMENTINTERNAL ENVIRONMENT

Yes

No

© 2008 by Prentice Hall 12-10

Psychological Aspects of Collective Bargaining

• Difficult because process is adversarial situation and must be dealt with as such

• Psychological aspects vitally important

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Bargaining Issues

• Mandatory bargaining issues - Wages, hours, etc.

• Permissive bargaining issues - May be raised but neither side may insist that they be bargained over

• Prohibited bargaining issues - Statutorily outlawed

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Bargaining Issues

Document that results from collective bargaining process is labor agreement or contract

• Recognition• Management Rights

• Union Security• Compensation and Benefits

• Grievance Procedure• Employee Security

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Recognition

• Appears at beginning of labor agreement

• Identifies union that is recognized as bargaining representative

• Describes bargaining unit

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Management Rights

Section that is often (but not always) written into labor agreement which spells out rights of management

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Union Security

• Closed Shop - Arrangement whereby union membership is prerequisite to employment

• Union Shop - Requires all employees become members of union after specified period

• Maintenance of Membership - Must continue memberships until termination of agreement

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Union Security (Cont.)

• Agency Shop - Nonunion members pay union equivalent of membership dues as kind of tax

• Exclusive Bargaining Shop - Company must deal with union that has achieved recognition, but employees not obligated to join

• Open Shop - Equal terms for union members and nonmembers

• Dues Checkoff - Company agrees to withhold union dues