mgmt 383 chapter 17 union-management relations spring 2008

Mgmt 383Mgmt 383

Chapter 17Chapter 17

Union-Management RelationsUnion-Management Relations

Spring 2008Spring 2008

Why Employees Join UnionsWhy Employees Join Unions• Dissatisfaction Dissatisfaction with working environment. with working environment.

• Inadequate staffingInadequate staffing• Mandatory overtimeMandatory overtime

• DissatisfactionDissatisfaction with compensation. with compensation.• Benefits.Benefits.• Non-competitive payNon-competitive pay

• DissatisfactionDissatisfaction with organization treatment with organization treatment• Concern for job securityConcern for job security• Ignore complaintsIgnore complaints

• DissatisfactionDissatisfaction with management style. with management style.• Inconsistency in treatment by superiors. Inconsistency in treatment by superiors. • Lack of recognitionLack of recognition• Fear or intimidationFear or intimidation

The State of Unions in AmericaThe State of Unions in America• Types of Unions.Types of Unions.

• Craft unionsCraft unions - - One craft, one unionOne craft, one union..

• Union membership is limited to members of a Union membership is limited to members of a specific craft (example: IBEW, UBCJA ).specific craft (example: IBEW, UBCJA ).

• Exercise Exercise economic powereconomic power by controlling the by controlling the supply of the craft.supply of the craft.

• Control apprenticeship.Control apprenticeship.

• Trace history to the guilds.Trace history to the guilds.

The State of Unions in AmericaThe State of Unions in America

• Types of Unions.Types of Unions.• Industrial unionsIndustrial unions - - One industry, one union.One industry, one union.

• Union membership open to employees of a specific Union membership open to employees of a specific industry (example: UAW, USW).industry (example: UAW, USW).

• Exercises economic power only by Exercises economic power only by political political fiat.fiat.

• In recent years, industry designations have become In recent years, industry designations have become meaningless.meaningless.

Union StructureUnion Structure

• Union Structure. Union Structure. • FederationFederation - a group of autonomous - a group of autonomous

national/international unions (AFL-CIO)national/international unions (AFL-CIO)• National UnionsNational Unions – an organization of local – an organization of local

unions.unions.• Local UnionsLocal Unions – workers organized around a – workers organized around a

particular employer or geographic area.particular employer or geographic area.

Union Structure: LocalsUnion Structure: Locals

Membership Meeting

President

Vice President

Secretary Treasurer Sergeant-at-

Arms

Stewards

The State of Unions in AmericaThe State of Unions in America

• Since July 2008 unions account for less than Since July 2008 unions account for less than 12.4% of the total work force (public and private). 12.4% of the total work force (public and private).

• By 2008, about 7.6% of the private sector was By 2008, about 7.6% of the private sector was organized (up from 7.5% in 2007). organized (up from 7.5% in 2007).

• The number of persons belonging to a union rose The number of persons belonging to a union rose by 428,000 in 2008 to 16.1 million. by 428,000 in 2008 to 16.1 million.

• Unions are now more prevalent in the public-Unions are now more prevalent in the public-sector (38.7%) than in the private.sector (38.7%) than in the private.

Source: BLS (2008). Source: BLS (2008). Union Members Summary. Union Members Summary. http://www.bls.gov/news.release/union2.nr0.htmhttp://www.bls.gov/news.release/union2.nr0.htm

Union Membership 1935-2007Union Membership 1935-2007

• 19351935• 19451945• 19551955• 19651965• 19751975• 19851985• 19951995• 20072007• 20082008

• 13.2%13.2%• 35.535.5%%

• 33.2%33.2%• 28.4%28.4%• 25.5%25.5%• 18.0%18.0%• 14.9%14.9%• 12.1%12.1%

• 12.4%12.4%

Union Membership WorldwideUnion Membership Worldwide20082008

• FranceFrance• U.S.U.S.• JapanJapan• GermanyGermany• CanadaCanada• UKUK• NorwayNorway

• 8.3%8.3%

• 12.412.4%%

• 19.7%19.7%

• 22.6%22.6%

• 28.4%28.4%

• 29.3% 29.3% • 53.3%53.3%

Factors Contributing to Union Factors Contributing to Union DeclineDecline

• Geographic changesGeographic changes• Industry has relocated to right-to-work states Industry has relocated to right-to-work states

(the South and Southwest).(the South and Southwest).• Low skilled job have moved to Mexico.Low skilled job have moved to Mexico.• NAFTA has accelerated the movement of low NAFTA has accelerated the movement of low

skill jobs from the country.skill jobs from the country.

Factors Contributing to Union Factors Contributing to Union DeclineDecline

• Workforce changesWorkforce changes• Moving from a manufacturing to a service economy.Moving from a manufacturing to a service economy.• More white-collar workers (less likely to organize).More white-collar workers (less likely to organize).• More women (lees likely to join unions).More women (lees likely to join unions).

• Private Sector Employers Have Taken Private Sector Employers Have Taken Proactive Measures to Avoid Organizing Proactive Measures to Avoid Organizing Efforts.Efforts.• Good wage and benefit programsGood wage and benefit programs• Increased emphasis on employee participation.Increased emphasis on employee participation.

Railway Labor Act (RLA) of Railway Labor Act (RLA) of 19261926

• Gave railway workers the right to organize Gave railway workers the right to organize without interference.without interference.

• Objectives Objectives • Avoid service interruptionsAvoid service interruptions• Eliminate restrictions on joining a unionEliminate restrictions on joining a union• Guarantee workers right to self-organizeGuarantee workers right to self-organize• Provide for prompt grievance resolutionProvide for prompt grievance resolution• Enable prompt grievance settlementEnable prompt grievance settlement

Norris LaGuardia Act of 1932Norris LaGuardia Act of 1932

• Yellow dog contracts unenforceable in Yellow dog contracts unenforceable in federal courtsfederal courts

• More difficult to getMore difficult to get federal injunctionsfederal injunctions

National Labor CodeNational Labor Code

• National Labor Relations ActNational Labor Relations Act ( (Wagner Wagner ActAct) of 1935) of 1935

• Labor Management Relations ActLabor Management Relations Act ( (Taft-Taft-Hartley ActHartley Act) of 1947) of 1947

• Labor Management Reporting and Labor Management Reporting and Disclosure ActDisclosure Act ( (Landrum-Griffin ActLandrum-Griffin Act) of ) of 19591959

National Labor Relations National Labor Relations BoardBoard

• Creates the National Labor Relations Board Creates the National Labor Relations Board (NLRB) (NLRB) - - § 3§ 3 • Enforces the NLRAEnforces the NLRA• Investigates unfair labor practice charges.Investigates unfair labor practice charges.• Oversees certification elections and the recognition Oversees certification elections and the recognition

processprocess• Composition:Composition:

• Five members serve 5-year termsFive members serve 5-year terms• Appointed by the presidentAppointed by the president• Confirmed by the SenateConfirmed by the Senate

National Labor Relations ActNational Labor Relations Act

• Called theCalled the Magna Charta of Labor Magna Charta of Labor

• § 7 Employees Right to Organize§ 7 Employees Right to Organize• Employees have the right to organize without Employees have the right to organize without

interferenceinterference• Employees have the right to bargain Employees have the right to bargain

collectivelycollectively• Employees have the right to strike for better Employees have the right to strike for better

conditionsconditions• Employees have the right Employees have the right notnot to organize to organize

((Employee Free Choice Employee Free Choice added in 1947)added in 1947)


• § 8(a) Unfair Labor Practices by Management§ 8(a) Unfair Labor Practices by Management• Interfering with, restraining, or coercing Interfering with, restraining, or coercing

employees in the exercise of their § 7 rightsemployees in the exercise of their § 7 rights - - § 8(a)(1).§ 8(a)(1).

• Threatening dischargeThreatening discharge

• SpyingSpying

• Threatening to move the plant (run away plants)Threatening to move the plant (run away plants)

• Bribing or extorting employees for their votesBribing or extorting employees for their votes

• Questioning employees about their votesQuestioning employees about their votes


• § 8(a)(2)§ 8(a)(2) Unlawful DominationUnlawful Domination. Prohibits . Prohibits company unions - company unions - Broadly worded:Broadly worded:

• Interferes with Interferes with labor organization’slabor organization’s formation formation

• Interferes with Interferes with labor organization’s labor organization’s administrationadministration

• Provides financial support to a Provides financial support to a labor organizationlabor organization

• Employee participation programs violate § 8(a)(2) Employee participation programs violate § 8(a)(2) Electromation v. IBT,Electromation v. IBT, 309 N.L.R.B. no. 163 (1992) and 309 N.L.R.B. no. 163 (1992) and Dupont v. Chemical Workers Association, Dupont v. Chemical Workers Association, 311 311 N.L.R.B. 88 (1993).N.L.R.B. 88 (1993).


• § 8(a)(3) Unlawful Discrimination Based § 8(a)(3) Unlawful Discrimination Based on Union Membershipon Union Membership::

• Cannot discriminate against union [or nonunion] Cannot discriminate against union [or nonunion] employees with regard to their conditions of employees with regard to their conditions of employmentemployment

• Requires proof of employer’s Requires proof of employer’s intent intent to discourage to discourage union membershipunion membership

• Examples:Examples:• Discharging pro union employeesDischarging pro union employees• Refusing to hire pro union applicantsRefusing to hire pro union applicants• Constructive dischargesConstructive discharges• Superseniority to permanent strike replacementsSuperseniority to permanent strike replacements


• § 8(a)(4) Whistleblowers Clause§ 8(a)(4) Whistleblowers Clause::• Cannot retaliate against an employee who files an Cannot retaliate against an employee who files an

unfair labor practice complaint against the unfair labor practice complaint against the employer.employer.


• § 8(a)(5) Obligation to Bargain in Good § 8(a)(5) Obligation to Bargain in Good FaithFaith::

• Employer must bargain with the bargaining units Employer must bargain with the bargaining units recognized/certified bargaining agentrecognized/certified bargaining agent

• Mandatory Bargaining Issues:Mandatory Bargaining Issues:

• WagesWages

• HoursHours

• Conditions of EmploymentConditions of Employment

Three Types of Bargaining Three Types of Bargaining IssuesIssues

• MandatoryMandatory – required by law. – required by law.• WagesWages• Hours Hours • Conditions of employmentConditions of employment

• ProhibitedProhibited – forbidden by law. – forbidden by law.• Closed shopsClosed shops

• Permissive Permissive – anything that isn’t mandatory or – anything that isn’t mandatory or prohibited.prohibited.• Employee discountsEmployee discounts• Benefits for retireesBenefits for retirees• Union logos on productsUnion logos on products

Labor Management Relations Labor Management Relations ActAct

• § 8(b)(1) Employee’s § 7 Rights § 7§ 8(b)(1) Employee’s § 7 Rights § 7• Employee’s Right to Free ChoiceEmployee’s Right to Free Choice - § 8(b)(1)(a) - § 8(b)(1)(a)

• Union cannot interfere with employees § 7 rights.Union cannot interfere with employees § 7 rights.• Examples:Examples:

• Picket line violencePicket line violence• Threats of violence to nonunion employeesThreats of violence to nonunion employees

• Threaten loss of job to nonunion employees if the union Threaten loss of job to nonunion employees if the union wins certificationwins certification

• Entering into a recognition agreement when the union Entering into a recognition agreement when the union does not have a majority showing of interestdoes not have a majority showing of interest


• Fair Representation - Fair Representation - § 8(b)(2)§ 8(b)(2) • Unlawful to force any employer to discriminate Unlawful to force any employer to discriminate

against non-union m,embers of the bargaining against non-union m,embers of the bargaining unit.unit.• Demanding different wages or benefits based Demanding different wages or benefits based

on union membership.on union membership.• Failing to submit a grievance based on union Failing to submit a grievance based on union

membership.membership.


• Bargain in Good Faith - Bargain in Good Faith - § 8(b)(3)§ 8(b)(3) • Unions cannot refuse to collectively bargain Unions cannot refuse to collectively bargain

with an employer.with an employer.• No “take or leave it “ultimatums.No “take or leave it “ultimatums.


• Secondary Boycotts - Secondary Boycotts - § 8(b)(4)§ 8(b)(4) • Unlawful strikes against neutral third parties.Unlawful strikes against neutral third parties.• Forcing an employer to cease doing business Forcing an employer to cease doing business

with another employer against whom the union with another employer against whom the union is strikingis striking


• Excessive Dues & Fees - Excessive Dues & Fees - § 8(b)(5)§ 8(b)(5) • Unlawful for the union to charge a fee that the Unlawful for the union to charge a fee that the

NLRB would consider excessive or NLRB would consider excessive or discriminatory. discriminatory.


• Anti-Featherbedding Clause - Anti-Featherbedding Clause - § 8(b)(6) § 8(b)(6) • FeatherbeddingFeatherbedding - payment for services not - payment for services not

performed or not to be performed. performed or not to be performed.


• Limitations on Organizational Picketing - Limitations on Organizational Picketing - § 8(b)(7) § 8(b)(7) • No picketing when a certified bargaining agent No picketing when a certified bargaining agent

is already in place is already in place • No picketing within 12 months of the last No picketing within 12 months of the last

certification or decertification election.certification or decertification election.

Right-to-Work LawsRight-to-Work Laws

• Right-to-Work Laws - Right-to-Work Laws - § 14(b)§ 14(b) • Nothing in this Act shall be construed as Nothing in this Act shall be construed as

authoring the execution or application of authoring the execution or application of agreements requiring membership in a labor agreements requiring membership in a labor organization as a condition of employment in organization as a condition of employment in any State or Territory in which the execution or any State or Territory in which the execution or application is prohibited by State or Territorial application is prohibited by State or Territorial law.law.

• 22 states have passed “right-to-work’ laws.22 states have passed “right-to-work’ laws.

Right-to-Work States (22)Right-to-Work States (22)• AlabamaAlabama• ArizonaArizona• ArkansasArkansas• FloridaFlorida• GeorgiaGeorgia• IdahoIdaho• IowaIowa• KansasKansas• LouisianaLouisiana• MississippiMississippi• NebraskaNebraska

• NevadaNevada• North CarolinaNorth Carolina• North DakotaNorth Dakota• Oklahoma (2001)Oklahoma (2001)• South CarolinaSouth Carolina• South DakotaSouth Dakota• TennesseeTennessee• TexasTexas• UtahUtah• VirginiaVirginia• WyomingWyoming

Continuum of Compulsory Continuum of Compulsory Union MembershipUnion Membership

ExclusiveBargaining

Rights

AgencyShop

Maintenance of Membership

Shop

ModifiedUnion Shop

UnionShop

PreferentialUnionShop

ClosedShop

OpenShop

Right-to-Work


• National Emergency Dispute Resolution -National Emergency Dispute Resolution - §§ 206-210§§ 206-210 • Must involve an actual or threatened strike or Must involve an actual or threatened strike or

lockout affecting an entire industry, or a lockout affecting an entire industry, or a substantial part thereof, that if permitted would:substantial part thereof, that if permitted would:• Imperil national healthImperil national health• Imperil national safetyImperil national safety


• National Emergency Dispute Resolution National Emergency Dispute Resolution ProcessProcess• President forms a board of inquiry which President forms a board of inquiry which

investigates and reports on the magnitude of the investigates and reports on the magnitude of the strike or lockout.strike or lockout.

• President may direct the Attorney General to President may direct the Attorney General to petition any federal district court for an petition any federal district court for an 80-day 80-day injunctioninjunction


• National Emergency Dispute Resolution National Emergency Dispute Resolution Process cont’dProcess cont’d• The FMCS will be sent in to attempt mediationThe FMCS will be sent in to attempt mediation• At the end of At the end of 60 days60 days the board of inquiry reports any the board of inquiry reports any

progress to the president.progress to the president.• President may make the report available to the public.President may make the report available to the public.• NLRB within the next NLRB within the next 15 days15 days makes the makes the employer’semployer’s

final offer available to each employee for individual final offer available to each employee for individual balloting.balloting.

Representation ProcessRepresentation Process

Authorization Card Campaign

Recognition[50% + 1]

Certification[30%]

File recognitionpetition

File CertificationPetition

Consent Election Decree

Formal ElectionHearing

Election [Simple Majority of Ballots Cast]

Collective Bargaining Begins

Representation ProcessRepresentation Process

• SaltingSalting - the practice of - the practice of unions using paid organizers to apply for jobs at a targeted employer for the purpose of infiltrating and organizing other workers.• Permits coverage under Republic Aviation.

Change In the Recognition ProcessChange In the Recognition Process

• EFCA proposes to change the recognition EFCA proposes to change the recognition process by:process by:

(1)(1) Having the NLRB certify any union receiving a Having the NLRB certify any union receiving a showing of interest greater than 50% during the showing of interest greater than 50% during the authorization card campaign.authorization card campaign.

(2)(2) Situations in which the union receives less than a Situations in which the union receives less than a majority showing of interest will be resolved by majority showing of interest will be resolved by an secret ballot election. an secret ballot election.

• In effect, all organization efforts begin as a In effect, all organization efforts begin as a card check.card check.

EFCA Representation Process if EFCA Representation Process if Showing of Interest is Showing of Interest is <<50%50%


Certification[30%]


Consent Election Decree

Representation Election


NLRB Bargaining Order

EFCA Representation Process if EFCA Representation Process if Showing of Interest is >50%Showing of Interest is >50%



NLRB Issues Bargaining Order


Bargaining OrdersBargaining Orders

• Under the EFCA unions can demand that Under the EFCA unions can demand that employers begin CBA negotiation within 10 employers begin CBA negotiation within 10 days of certification.days of certification.

Interest Arbitration for the Interest Arbitration for the Private SectorPrivate Sector

• If an impasse cannot be reovled within 90 If an impasse cannot be reovled within 90 days, either party can request mediation from days, either party can request mediation from the FMCS.the FMCS.

• If mediation fails to resolve the impasse If mediation fails to resolve the impasse within 30 days, the EFCA provides for within 30 days, the EFCA provides for binding interest arbitration.binding interest arbitration.

• If the contract is decided by arbitration, the If the contract is decided by arbitration, the bargaining unit does not ratify the CBA.bargaining unit does not ratify the CBA.

Time framesTime frames

• 10 days following certification: Bargaining 10 days following certification: Bargaining order.order.

• 90 days after impasses: mediation90 days after impasses: mediation

• 30 after mediation fails: interest arbitration.30 after mediation fails: interest arbitration.

Components of the CBAComponents of the CBA• Wage IssuesWage Issues

• Wage & effort.Wage & effort.• BenefitsBenefits• Premium PayPremium Pay

• Nonwage IssuesNonwage Issues• Union security/recognition of the unionUnion security/recognition of the union (level of (level of

compulsory membership)compulsory membership)• Individual security/ seniorityIndividual security/ seniority• Management rightsManagement rights• Discipline/dischargeDiscipline/discharge• Grievance procedureGrievance procedure

Components of the CBAComponents of the CBA

• Nonwage Issues (continued)Nonwage Issues (continued)• No strike/no lockout No strike/no lockout • Contract term/durationContract term/duration• SafetySafety• Checkoff clauseCheckoff clause

Five Types of StrikesFive Types of Strikes

• EconomicEconomic

• Unfair Labor PracticeUnfair Labor Practice

• SympathySympathy

• JurisdictionalJurisdictional

• WildcatWildcat Unlawful

Grievance ManagementGrievance Management

• GrievanceGrievance - any violation of the the - any violation of the the collective bargaining agreement.collective bargaining agreement.• Interpretation of the CBA.Interpretation of the CBA.• Unilateral modification of the CBA.Unilateral modification of the CBA.• Refusal to abide by its provisionsRefusal to abide by its provisions

Rights ArbitrationRights Arbitration

• ArbitrationArbitration - a quasi-judicial process in which - a quasi-judicial process in which parties agree to submit an unresolved dispute to parties agree to submit an unresolved dispute to neutral third-party binding settlement.neutral third-party binding settlement.• Rights ArbitrationRights Arbitration - arises over interpretation of the - arises over interpretation of the

CBA’s meaning or entitlement to its provisions (post CBA CBA’s meaning or entitlement to its provisions (post CBA ratification).ratification).

• Interest ArbitrationInterest Arbitration - during CBA negotiations. - during CBA negotiations.

mgmt 383 chapter 17 union-management relations spring 2008

Documents

craft unions

unions dissatisfaction

state of unions

industrial unions

unions account

organization of local

union membership

america types of unions