ch14-understanding labor relations and collective bargaining
TRANSCRIPT
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
1/21
Labor Relations and
Collective Bargaining
DeCenzo and Robbins
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
2/21
Industrial Relation
Industrial relations means the nature of
relationship between the employer and
employee in an industrial organization .
According to Prof. Dunlop , Industrial
relations defined as the complex of
interrelations among workers,
managers and Government
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
3/21
Industrial relations includes--
the relations between employers andemployees at the plant level.
the relation between the various unions. the relations between employers or their
organizations and trade unions at variouslevel (Level of plant, region or industry and
national level) the relation between the state and the unions.
the relation between the employers and thegovernment.
Industrial Relation
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
4/21
Union
A union is an organization of workers,
acting collectively, seeking to promote
and protect its mutual interests through
collective bargaining.
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
5/21
Union
Impact of unionization
Only about 13% of the privatesector work force is unionized.
Labor contracts typicallystipulate:
wages
hours terms and conditions of
employment
limit managements discretion
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
6/21
Why Employees Join Unions
Higher wages and benefits: The
strength of large numbers and
negotiating skills of professional
bargainers give unions anadvantage over individuals.
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
7/21
Why Employees Join Unions
Greater job security: Collective
bargaining contracts limit
managements ability to
arbitrarily hire, promote or fire.
Influence over work rules:
Unions represent workers and
define channels for complaintsand concerns.
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
8/21
Why Employees Join Unions
Compulsorymembership
Union shops: The company can hire
nonunion people, but they must join the
union after a prescribed period of time and
pay dues.
Agency shops: Employees who do not
belong to the union still must pay uniondues on the assumption that the unions
effort benefit all the workers.
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
9/21
Why Employees Join Unions
Compulsorymembership
Open shops allow union membership to be
totally voluntary to join or not to join those
who do not, do not pay dues. Maintenance ofmembership: Employees
do not have to belong to the union. However,
union members employed by the firm must
maintain membership in the union for thecontact period.
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
10/21
Collective Bargaining
The negotiation, administration, and
interpretation of a written agreement
between two parties, at least one ofwhich represents a group that is acting
collectively, that covers a specific period
of time.
Collective bargaining The process
through which representatives of
management and the union meet to
negotiate a labor agreement.
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
11/21
Collective Bargaining
Objective and Scope of CollectiveBargaining
Contracts must be acceptable to
management, union representatives andunion membership.
Four issues appear in all labor contracts.(The first three are mandated by the Wagner
Act) wages
hours
terms and conditions of employment
grievance procedure
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
12/21
Collective Bargaining
Collective Bargaining
Participants
Management is represented by
senior management for industrialrelations, corporate executives and
company lawyers
In small companies, the president
typically represents the company.
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
13/21
Collective Bargaining
Collective Bargaining Participants
Union bargaining teams include an
officer of the local union, local shop
stewards and representation from the
international/national union.
Government watches to ensure rules
are followed.
Financial institutions set limits on the
cost of the contract
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
14/21
Collective Bargaining
The Collective Bargaining Process
Preparing to negotiate
Fact-gathering: Includes internal information
(e.g., employee performance records, overtime)and external (i.e., data on what similar
organizations are doing and the economy).
Goal-setting: Management decides what it can
expect from the negotiation.
Strategy development: This includes assessing
the other sides power and tactics.
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
15/21
Collective Bargaining
The Collective
Bargaining
Process
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
16/21
Collective Bargaining
Negotiating at the bargaining table
Each side usually begins bypublicly demanding more than they
are willing to accept. More realistic assessments and
compromises take place behindclosed doors.
After oral agreement, a writtencontract is submitted to the unionfor ratification.
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
17/21
Collective Bargaining
Contract administration refers to the
implementation, interpretation and
monitoring of the negotiated contract
between labor and management. Information dissemination includes helping
staff and workers understand the new
contract provisions. Implementingrefers to making the changes
to comply with contract terms.
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
18/21
Collective Bargaining
Monitoring
Both union and management keep track of how
effective the current contract is and any need
for changes.
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
19/21
Collective Bargaining
Failure to Reach Agreement
Strikes versus lockouts- strike is a withdrawalof labor
Econom
ic strikes - a strike that results from afailure to agree on the terms of a contract thatinvolve wages, benefits, and other conditions ofemployment.
Wildcat strikes - unauthorized and illegal
strikes that occur because of workerdissatisfaction during an existing contract.
Lockouts - when organizations deny unionizedworkers access to their jobs during an impasse.
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
20/21
Collective Bargaining
Failure to Reach Agreement
Impasse-Resolution Techniques:
Used when labor and management
cannot reach agreement. Conciliation and mediation involve a third
party to either keep negotiations going or
make non-binding settlement
recommendations. Fact-finding involves a neutral third-party
who conducts a hearing and recommends a
non-binding settlement.
-
8/3/2019 Ch14-Understanding Labor Relations and Collective Bargaining
21/21
Collective Bargaining
Interest arbitration
Involves a panel of one neutral, one
management and one union
representative who hear testimony and
render a decision to settle a contract
negotiation dispute.
Primarily in public-sector bargaining.
Binding only if there is unanimous
agreement.