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HRM 4570 ILR Homework 2

HRM4570 ILR Homework 2 (Ch7, 8, 9,

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HOMEWORK 2 (3%)

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HRM 4570 ILR Lecture Notes

Chapter 7.1 Bargaining

Preparing to Bargain

1. Assembling a team

2. Collecting information: The information from employer and union form the basis to determine five essential things

1 _____________

2 _____________ for achieving interests

3 External _______________ of fairness

4 The other side’s _____________

5 Best ________________ to a negotiated agreement

3. From these, both bargaining teams develop targets, priorities, and strategies.

4. Creating a strike contingency plan is another important aspect of bargaining preparations.

5. Sixty days before the existing contract expires, or 90 days in the health care industry, the parties provide official notification to each other and to the Federal Mediation and Conciliation Service that they intend to negotiate a new contract. The bargaining teams then Establish a schedule of bargaining sessions and set ground rules.

Quiz

Examples of bargaining items	Mandatory, Permissive or Illegal?
1. Health insurance for retired employees
2. Change in retirement plan contributions
3. Seniority provisions
4. Contract ratification procedures
5. Health insurance premiums
6. Wages below minimum wage
7. Straight time pay for overtime hours
8. Employee drug testing
9. Subcontracting work
10. Plant closings
11. Union representation on the board of directors
12. Pension/retirement contributions

Bargaining items are classified into three categories:

1. ____

_____________ bargaining

items: Includes wages, hours, and terms and conditions of employment

2. _________________ bargaining items: Those that would violate the law, such as payment of wages below the legal minimum

3. _________________ bargaining items: Includes everything excluding mandatory and illegal

Permissive bargaining items: Includes everything excluding mandatory and illegal

a) Employer and union can bargain over permissive items if they choose

b) BUT because they are ________________ the boundaries of the ______________, the NLRB cannot order bargaining on these issues.

c) And employees are ________ protected if they go on strike over these issues.

Table 7.3 – Examples of Mandatory and Permissive Bargaining Items

Mandatory bargaining items	Permissive bargaining items
1. _______ reduction / increases	1. _________ representation on board of directors
2. _______ plans		2.
3. __________ insurance payments
4. __________ contributions	3. Drug and alcohol screening for ___________
5. Work schedule and __________	4. Benefits for __________
6. ____________ provisions
7. ____________ discipline provisions
8. Grievance arbitration	5. Interest arbitration
9. Food prices in the company cafeteria	6. Bargaining _______ expansion
10. Lie detector and________ tests	7. Contract ___________ procedures
11. ________________	8.
12. ___________of plan closing	9. Plant ____________

HRM 4570 ILR Lecture Notes

Chapter 7.2 Bargaining

The Four Subprocesses of Labor Negotiations

Bargaining Subprocess	Brief explanation	Focus
1.	· Negotiation used to resolve ___________ of interests. · ____________ bargaining	Resolving conflicts of interests, often adversely
· Seeks to unify the ________ interests of the parties to a negotiation · _____________ bargaining	Solving joint problems (that do not involve conflicts of interests) by creating solutions for mutual gains; often collaborative.
3.	· Building ________ and respect. · Establishes the broad quality of the relationship between labor and management.	Changing attitudes and overall labor-management relationships, Often trust-building
4.	· The bargaining process that takes place ____________ an organization	Achieving consensus within each group; often complex

Table 7.5 – Distributive and Integrative Bargaining

Distributive Bargaining	Integrative Bargaining
Conflict
Imagery	Distributing a _______ pie	Integrating interests to _______ _____________ of the pie
Focus
Trust	Of minor importance, hindered	Critical, facilitate
Information
Participation	Chief spokesperson/ lead negotiator only	All members of negotiating teams
Tactics	Manipulating perceptions of positions, increasing costs of delay	Braining storming, using objective criteria
Benefits	Wining gains for your side through bargaining power	Creating joint gain and stronger relationship
Risks	Too aggressive? Harmful to the relationship? How to innovate?	Selling out? Giving up too much?
Difficulties for negotiators	Stress	Giving up control, selling results to constituents, time-consuming
Question marks	How to prevent adversarial tactics from damaging the relationship?	How to distribute the increases gains?
Other labels/ Also known as ….	_____________bargaining hard bargaining traditional bargaining	_____________bargaining mutual gain bargaining _____________ bargaining
In sum

Examples of Distributive, Integrative, and Hybrid Issues*

Distributive

Integrative

Hybrid

HRM 4570 ILR Lecture Notes

Chapter 8.1 Impasse, Strikes

__________ disputes: Pertain to ______________ of interest

· Higher wages versus _________________

· ____________-based layoffs versus _________-based layoffs

· Broad union input into managerial issues versus strict management ___________ to conduct business without interference

________disputes: Disagreements over whether someone’s rights have been violated

· Specified in the union contract

· These rights are ________________

· Conflicts over the application and _____________of a contract

A ___________ occurs when employees refuse to work until an employer changes position on one or more issues

· An expression of protest and dissatisfaction

· Frequently intended to pressurize an employer

· By __________________ their labor:

· Strikers seek to _____________ the employer’s cost of disagreement by depriving the employer of profits

· The ability to satisfy the demands of taxpayers and voters

Types of strikes

_____________strike: Employees might strike to win better wages, benefits, and work rules

____________: An ___________-initiated rather than worker-initiated work stoppage during a bargaining impasse

___________________strike: A strike to protest an employer’s unfair labor practice.

_____________ strike: Striking to support _________ workers who are on strike

_____________ strike: Most union contracts contain a no-strike clause prohibiting work stoppages over grievances during the life of the contract

_____________ strike: When a union strikes to force an employer to assign certain work to its members

Work stoppages have negative effects:

1. _________ in productivity

2. _________ of profits

3. _________in stock prices

4. _________of income for workers and stress

Other Pressure Tactics

1. _____________: Campaign to encourage a company’s customers to stop doing business with it

2. ___________________:

· Slowdowns try to pressure employers by imposing costs through lowered productivity, but without employees leaving their jobs and going on strike/

· Another method for engaging in work slowdowns is the use of partial, quickie, or intermittent strikes

3. ___________________: Seek to bolster inside tactics with external pressure, directed at corporate headquarters by outsiders

HRM 4570 ILR Lecture Notes

Chapter 8.2 Dispute Resolution

The four options for third Party Dispute Resolution

Degree of Third-Party Control

Low

High

Degree of Third-Party Control over the outcome

Low

High

Process of mediation

1. ______________________ in which the mediator collects information and establishes ground rules

2. _______________________ wherein the mediator works on clarifying the disputed issues and on developing alternative solutions

3. The focus of the mediator is ______________________________

Interest Arbitration

The two primary forms of interest arbitration are:

1. _______________

arbitration

· The arbitrator is _____ constrained in deciding the settlement terms

___________ effect of arbitration: The ____________of the arbitrator’s choice and the loss of control by the negotiators over the settlement terms ___________ negotiators to reach their own negotiated agreement ____________ resorting to arbitration

2. Final offer arbitration

· Created such that the arbitrator _________________ between the union’s final offer and the employer’s final offer

· Final offer arbitration has two variations

1. _______________final offer arbitration, in which the arbitrator must select one party’s final offer on all the disputed contract terms; and

2. _______________

final offer arbitration, in which the arbitrator can choose either party’s final offer on an issue-by-issue basis.

___________ effect of arbitration: Negotiators might become addicted to or over _________on arbitration

Fact-Finding

Third-party dispute resolution method

· A neutral third party called the fact finder investigates a bargaining impasse and issues a ___________ recommendations for settlement

· It does ______ guarantee a resolution

· It does ______ assist the negotiators

Chapter 8 Impasse, Strikes, and Dispute Resolution

Dispute Resolution Quiz

1. Third-party dispute resolution mechanisms use ____________________ to settle bargaining impasses with the goal of avoiding costly strikes.
A. a neutral third-party
B. decertification elections
C. boycotts
D. a local county judge

2. Which of the following is not a typical stage of mediation?
A. Setting ground rules and building trust between parties
B. Clarifying disputed issues and developing some alternative solutions
C. Determining whether any unfair labor practices were committed during negotiations
D. Working with negotiators to identify a mutually acceptable agreement

3. A dispute resolution process in which a neutral third party examines the final offers of each party and then chooses the one that seems, overall, to be the most reasonable and responsible settlement.

A. Conventional arbitration

B. Whole package arbitration

C. Mediation

D. Fact-finding

E. Issue-by-issue final offer arbitration

4. In _______________________ arbitration, the arbitrator is not constrained to choose either the management or union’s offer(s); rather she can make up whatever final contract terms she deems appropriate and fair.

A. Conventional

B. Issue-by-issue final offer

C. Whole package final offer

D. Mediation

5. The tendency for management and labor to rely on an arbitrator to make decisions for them, rather than come to an agreement themselves, is known as:

A. The chilling effect.

B. The narcotic effect.

C. The dependency effect.

D. The arbitrator authority effect.

6. dispute resolution process in which a neutral third party assists the parties in reaching a mutually-acceptable resolution.

A. Conventional arbitration
B. Whole package arbitration
C. Mediation
D. Fact-finding

E. Issue-by-issue, final offer arbitration

7. A dispute resolution process in which a neutral third party examines the final offers of each party and then designs a contract by choosing either the union or management’s offer on each issue.

A. Conventional arbitration
B. Whole package arbitration
C. Mediation
D. Fact-finding
E. Issue-by-issue final offer arbitration

8. A dispute resolution process in which a neutral third party examines the final offers of each party and then creates a new contract which may or may not reflect the parties’ positions on each issue.

A. Conventional arbitration
B. Whole package arbitration
C. Mediation
D. Fact-finding
E. Issue-by-issue final offer arbitration

9. A dispute resolution process in which a neutral third party investigates the claims and positions of each party and provides a public assessment of the situation.

A. Conventional arbitration
B. Whole package arbitration
C. Mediation
D. Fact-finding
E. Issue-by-issue final offer arbitration

10. The tendency of labor and management to take extreme positions in their final offers in the hopes that an arbitrator will “split the difference” between offers is known as the:

A. The chilling effect.
B. The narcotic effect.
C. The dependency effect.
D. The arbitrator authority effect.

HRM 4570 ILR Lecture Notes

Chapter 9 Contract Clauses and Their Administration

The Major Components of Traditional U.S. Union Contract

__________________________________: Interpreting, applying, and resolving conflicts regarding collective bargaining agreements

Employee Rights

1. _________________ discipline and discharge

Employee Rights

2. __________________rights in layoffs, promotions, etc.

Employee rights

3. __________________ (pay, benefits, etc.)

Employee rights

4. Fair hearing through the________________ procedures

Job Rights

1. Job holders _______________ to a certain wage rate

Job Rights

2. Specific tasks must be done within the bargaining unit and by certain jobs.

Union Rights

1. ___________bargaining agent

Union Rights

2. Union leader ________ to the workplace

Union Rights

3. Union ____________________ in the workplace

Union Rights

4. Shop stewards.

Union Rights

5. Union ____________ and dues checkoff clauses

Management Rights

1. _________ and fire (with just cause)

Management Rights

2.Determine job___________ and workforce size

Management Rights

3. Establish production standards and ________ of conduct

Management Rights

4. Decide what to ___________ and how and where to where to make it.

Grievance Procedure

1. Employees, the union, and management meet to _____________disputes over the ______________and _____________ of the contract.

2. Typically a ______________ procedure in which unresolved grievances are _____________to higher levels in the organization.

3. The final step is frequently _______________________________.

Just cause discipline or discharge

There must be _______________________ reasons for being disciplined or fired

HRM 4570 ILR Lecture Notes

Chapter 11 Globalization

Table 11.2 – Globalization: The Good, the Bad, and the Unequal

________ trade: Removal of all trade barriers

________ trade: Incorporation of labor, environmental, public health, and other standards into trade agreements

________________________________________(ILO): A specialized agency of the United Nations focused on promoting social justice and internationally recognized human and labor rights

The ILO’s unique _________ structure consists of each country sending representatives of

1. _______________
2. _______________

3. _______________

ILO Fundamental Conventions

1. freedom of _______________ and the effective recognition of the right to _____________________;

2. the elimination of all forms of forced or compulsory labor;

3. the effective abolition of child labor;

4. and the elimination of discrimination in respect of employment and occupation.

____________________________________ are legal instruments drawn up by the ILO’s constituents (governments, employers and workers) and setting out basic principles and rights at work.

They are either _____________, which are legally binding international treaties that may be ratified by member states, or ________________, which serve as non-binding guidelines.

Conventions and Protocols ____________________by United States

· C087 – Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87) – not ratified

· C098 – Right to Organize and Collective Bargaining Convention, 1949 (No. 98) – not ratified

Corporate Codes of _______________: Written statements of standards that a company pledges to follow in its business activities

Do Corporate Codes of Conduct Work?

· Can be effective in some sectors

· International ________ production chains

· ______________ industries

· Adequate community-level capacity –non-governmental organizations

· _____________ presence

· Less effective where,

· No __________

pressure, no government pressure

· No __________

· No __________ pressure

North American _______________ Agreement (NAFTA) – Free trade agreement among the United States, _______________ and _______________.

North American Agreement on _____________Cooperation (NAALC)

· Freedom of _____________ and the right to ____________

· The right to bargain _____________.

· The right to ____________ standards for wages and _______ working conditions

Chapter 7
Part 1

Bargaining

Hi Class, Welcome to Industrial and Labor Relations. Today we are going to discuss Chapter 7 Part 1 Bargaining
Bargaining between unions and employers is one of the three very important processes of U.S. labor relations. The goal of this chapter is for students to understand the behavioral, strategic, and legal aspects of collectively bargaining contracts in U.S. labor relations. The chapter also includes discussions of the important practical elements of bargaining, including preparation, costing, and the timeline of the negotiation process.

7-2
Sketch the steps of the bargaining time line
Define the different types of bargaining structures
Discuss the determinants and importance of bargaining power
Explain the legal parameters of the U.S. bargaining process
Learning Objectives

The learning objectives of Chapter 7 Bargaining are as follows
Sketch the steps of the bargaining time line
Define the different types of bargaining structures
Discuss the determinants and importance of bargaining power
Explain the legal parameters of the U.S. bargaining process
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Outline the four sub processes of bargaining, their purposes, and their tactics
Understand the pressures for changing from traditional to integrative bargaining, and why this is difficult
Learning Objectives

Outline the four sub processes of bargaining, their purposes, and their tactics
Understand the pressures for changing from traditional to integrative bargaining, and why this is difficult
3

Collective Bargaining

Please click on the video and watch what is collective bargaining.
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U.S. union contracts usually include the following subjects:
Compensation
Personnel policies and procedures
Employee rights and responsibilities
Employer rights and responsibilities
Union rights and responsibilities
Dispute resolution and ongoing decision making
Introduction

Through the process of collective bargaining, employers and unions negotiate terms and conditions of employment, and put these terms into written contracts, also called collective bargaining agreements. In the United States these contracts are legally binding and typically last one to five years, with a three-year duration being the most common.
U.S. union contracts usually include the following subjects:
Compensation: wages, benefits, vacations and holidays, shift premiums, profit sharing. Compensation items might also be referred to as economic issues, and the other areas are called administrative or language issues.
Personnel policies and procedures: layoff, promotion, and transfer policies, overtime and vacation rules
Employee rights and responsibilities: seniority rights, job standards, workplace rules
Employer rights and responsibilities: management rights, just cause discipline and discharge, subcontracting, safety standards
Union rights and responsibilities: recognition as bargaining agent, bulletin board, union security, dues checkoff, shop stewards, no strike clauses
Dispute resolution and ongoing decision making: grievance procedures, committees, consultation, renegotiation procedures
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The preparation stage usually begins at least several months before bargaining begins, or even 18 months before the start of a particularly large, complex, or pattern-setting negotiation; it usually involves the following stages:
1. Assembling a team
2. Collecting information
Preparing to Bargain

The longest portion of the time line of a negotiation process is the preparation stage.
The preparation stage usually begins at least several months before bargaining begins, or even 18 months before the start of a particularly large, complex, or pattern-setting negotiation; it usually involves the following stages:
In Stage 1, Assembling a team—for the employer team, managerial roles typically determine bargaining team responsibilities, whereas union bargaining committees are usually elected by the rank and file.
In Stage 2, Collecting information
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Collecting information
The information from employer and union form the basis to determine five essential things
Interests
Options for achieving interests
External benchmarks of fairness
The other side’s interests
Best alternative to a negotiated agreement
2. Collecting information

When Collecting information— Managers might collect external benchmarking data on labor costs and other items, and should also review the organization’s financial performance and strategic plans. The union negotiating committee will likely survey the rank and file to identify common concerns and goals, and also consult with its national union. Both sides should also conduct thorough reviews of how the expiring collective bargaining agreement has performed. Areas of the contract that have created problems, such as high levels of grievances, should be noted. These pieces of information form the basis for each side to determine the following five essential things, from which, both bargaining teams develop targets, priorities, and strategies:
Their interests (what they are really concerned about)
Options for achieving their interests
External benchmarks of fairness
The other side’s interests
Their best alternative to a negotiated agreement (BATNA)
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BATNA
Best alternative to a negotiated agreement

Please click on the video and watch What is BATNA or Best alternative to a negotiated agreement ?
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3. From these, both bargaining teams develop targets, priorities, and strategies.
4. Creating a strike contingency plan is another important aspect of bargaining preparations.
5. Sixty days before the existing contract expires, or 90 days in the health care industry, the parties provide official notification to each other and to the Federal Mediation and Conciliation Service that they intend to negotiate a new contract. The bargaining teams then Establish a schedule of bargaining sessions and set ground rules.

Preparing to Bargain

In stage 3, From these, both bargaining teams develop targets, priorities, and strategies. Extensive checklists for both employer and union negotiators are available to help guide preparation activities.
In stage 4, Creating a strike contingency plan is another important aspect of bargaining preparations.
In stage 5, Sixty days before the existing contract expires, or 90 days in the health care industry, the parties provide official notification to each other and to the Federal Mediation and Conciliation Service that they intend to negotiate a new contract. The bargaining teams then Establish a schedule of bargaining sessions and set ground rules.

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Figure 7.1 – The Bargaining Time Line

Figure 7.1 shows The Bargaining Time Line
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An appropriate bargaining unit is defined during the representation process. This unit is the minimal unit for collective bargaining.
Once certified, multiple units can be combined into a single larger bargaining unit for the purposes of negotiating a contract if the parties agree. The resulting organizational structure for the collective bargaining process is called the bargaining structure.
If the parties agree, the multiple units combines into single larger bargaining unit for negotiating a contract
Bargaining Structure

An appropriate bargaining unit is defined during the representation process. This unit is the minimal unit for collective bargaining.
Once certified, multiple units can be combined into a single larger bargaining unit for the purposes of negotiating a contract if the parties agree. The resulting organizational structure for the collective bargaining process is called the bargaining structure.
If the parties agree, the multiple units combines into single larger bargaining unit for negotiating a contract
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Figure 7.2 – Bargaining Structures

Figure 7.2 shows four types of bargaining structures.
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Employers prefer decentralized bargaining structures to have local unions compete against one another for jobs (this is called “whipsawing”) and to tailor contracts to local situations.
Unions are generally believed to prefer more centralized structures because they can consolidate their power and prevent whipsawing by negotiating uniform contracts (this is called “taking wages out of competition”).
Bargaining Structure

The conventional wisdom is that in many situations, employers prefer decentralized bargaining structures to have local unions compete against one another for jobs (this is called “whipsawing”) and to tailor contracts to local situations.
Unions are generally believed to prefer more centralized structures because they can consolidate their power and prevent whipsawing by negotiating uniform contracts (this is called “taking wages out of competition”).
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The bargaining structure in the United States is typically decentralized;
the leading explanations for this appears to be that employers have been able to use their greater bargaining leverage to force more decentralization
both firms and workers like the flexibility and opportunities for employee involvement in decision making allowed by decentralized bargaining structures.
Bargaining Structure

The bargaining structure in the United States is typically decentralized; the leading explanations for this appears to be that employers have been able to use their greater bargaining leverage to force more decentralization and also that both firms and workers like the flexibility and opportunities for employee involvement in decision making allowed by decentralized bargaining structures.
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Pattern bargaining: The union bargains exclusively with the target company until an agreement is reached
Sequential bargaining process is an informal way of achieving more centralized bargaining structure
Pattern bargaining can help unions take wages out of competition, but there are also intraorganizational bargaining reasons.
Before the 1980s pattern bargaining was a prominent feature of collective bargaining in many industries
Bargaining Structure

Another type of bargaining structure is pattern bargaining in which the union bargains exclusively with a target company until an agreement is reached. The target settlement is then used by the union as a pattern for subsequent negotiations in the industry;
this sequential bargaining process is an informal way of achieving a more centralized bargaining structure.
Pattern bargaining can help unions take wages out of competition, but there are also intraorganizational bargaining reasons.
Before the 1980s pattern bargaining was a prominent feature of collective bargaining in many industries

Pattern Bargaining

Please click on the video and watch an example of pattern bargaining.
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When determining the desired bargaining structure, labor and management negotiators face a trade-off between power and responsiveness
Decentralized bargaining can be more responsive to local needs
Issues are more homogeneous and the negotiators are close to their constituents
As negotiations become more centralized, the number of issues increase
Bargaining Structure

When determining the desired bargaining structure, labor and management negotiators face a trade-off between power and responsiveness.
Compared to a centralized bargaining structure, decentralized bargaining can be more responsive to local needs because the issues are often more homogeneous and the negotiators are close to their constituents; however, decentralized bargaining can also reduce labor’s bargaining power.
As negotiations become more centralized, the number of issues increases, labor and management negotiators become further removed from their constituents, and it is more difficult to tailor local solutions for specific problems.

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Negotiators are situated in a complex environment that provides opportunities and constraints
What happens at the bargaining table reflects differences in relative bargaining power between labor and management.
Bargaining power is “the ability to secure another’s agreement on one’s own terms.”
This ability depends on the relative costs of agreeing and disagreeing
Bargaining Power and the Bargaining Environment

Negotiators are situated in a complex environment that provides opportunities and constraints
What happens at the bargaining table reflects differences in relative bargaining power between labor and management. Bargaining power is “the ability to secure another’s agreement on one’s own terms.” This ability depends on the relative costs of agreeing and disagreeing; the side that can impose greater disagreement costs on the other will be in a more powerful position.
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A critical reason that U.S. labor law protects workers’ efforts at forming unions and engaging in collective bargaining is to balance bargaining power between a company and a group of employees.
Strikes are the most important way for unions to impose disagreement costs on employers
A union with strong strike leverage can impose significant costs on management through a strike
Bargaining Power and the Bargaining Environment

A critical reason that U.S. labor law protects workers’ efforts at forming unions and engaging in collective bargaining is to balance bargaining power between a company and a group of employees.
Strikes are the most important way for unions to impose disagreement costs on employers,
so relative bargaining power is closely related to a union’s strike leverage; a union with strong strike leverage can impose significant costs on management through a strike, and labor in this situation has strong bargaining power relative to the employer, resulting in contract terms favoring the employees; the reverse is true if a union has weak strike leverage.
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Analyzing relative bargaining power includes identifying the important elements of the bargaining environment
Diverse set of external influences on labor and management as a contract is negotiated
The dimensions of the bargaining environment apply equally to the private and public sectors
Overpaid workers can be replaced by others willing to work for less
Bargaining Power and the Bargaining Environment

Analyzing relative bargaining power—or strike leverage—consists of identifying the important elements of the bargaining environment. The bargaining environment is the diverse set of external influences on labor and management as they sit at a bargaining table negotiating a contract.
Diverse set of external influences on labor and management as a contract is negotiated
The dimensions of the bargaining environment apply equally to the private and public sectors
Overpaid workers can be replaced by others willing to work for less

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There are at least two key differences between the public and private sectors:
1. Although some services can be privatized or outsourced, essential services must still be provided. Public sector management does not have the option of moving to a different location in search of lower labor costs.
2. Public services are not bought and sold in economic markets; instead the levels of services are ultimately determined by voters, taxpayers, and elected officials in the political arena.
Bargaining Environment:
private and public sectors.

The dimensions of the bargaining environment apply equally well to the private and public sectors.
There are at least two key differences between the public and private sectors:
1. Although some services can be privatized or outsourced, essential services must still be provided. Public sector management does not have the option of moving to a different location in search of lower labor costs. This places an important constraint on the business strategies available to public sector managers.
2. Public services are not bought and sold in economic markets; instead the levels of services are ultimately determined by voters, taxpayers, and elected officials in the political arena. This heightens the importance of the sociopolitical dimension of the bargaining environment.
These differences lead some to argue that public sector collective bargaining should be prohibited because public sector unions are too powerful. The evidence, however, does not support the contention that public sector unions have unlimited bargaining power.

7-22
These differences lead some to argue that public sector collective bargaining should be prohibited because public sector unions are too powerful.
The evidence, however, does not support the contention that public sector unions have unlimited bargaining power.
Bargaining Environment:
private and public sectors.

These differences lead some to argue that public sector collective bargaining should be prohibited because public sector unions are too powerful.
The evidence, however, does not support the contention that public sector unions have unlimited bargaining power.

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Negotiators need to use their communication, relationship-building, and problem-solving skills to reach an agreement that both sides find acceptable.
Most labor negotiations involve the renegotiation of an expiring contract, and this contract anchors the negotiations.

At the Bargaining Table

Once at the bargaining table, negotiators need to use their communication, relationship-building, and problem-solving skills to reach an agreement that both sides find acceptable.
Most labor negotiations involve the renegotiation of an expiring contract, and this contract anchors the negotiations. For starters, the side that wants to change the contract traditionally makes the opening proposals that mark the beginning of bargaining. From there, proposals are considered and counterproposals are made until an agreement is reached.
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Labor negotiations as theater
The dramatic structure of labor negotiations makes negotiations more complex than they appear
Experienced lead negotiators often meet with each other in private with no other bargaining team members present, to explore wide-ranging options
This dramatic structure applies equally well to the grievance procedure
At the Bargaining Table

Labor Negotiations as Theater
The dramatic structure of labor negotiations closely parallels a theatrical play. The negotiators are actors and have roles, especially the lead negotiators with the leading parts. The audience for the actors’ performances is other negotiators and the negotiators’ constituents (upper management for management negotiators, union members for the union negotiators).
The audience has certain expectations of how the performance should proceed—that is, the constituents demand that their interests be strongly represented.
The lead negotiators need to put on a show. Table pounding and other aggressive tactics demonstrate the strength of the negotiators not to each other but to their constituents.
This theater takes place on the front stage of negotiations (the bargaining table) for the other members of the bargaining committee to see
There is also a backstage: experienced lead negotiators often meet with each other in private with no other bargaining team members present. In these meetings the negotiators can step out of their public roles, share information, and explore wide-ranging options.
In contrast with the conflictual bargaining of the front stage, backstage interactions can have a problem-solving flavor.
The dramatic structure of labor negotiations makes negotiations more complex than they appear because of the following reasons:
Negotiators have to decipher whether the other negotiators are putting on a show or trying to communicate a legitimate point.
Novice labor relations practitioners need to make sure they do not get swept up in the performance or get emotionally involved.
Participants need to know their roles, understand the nature of the entire performance, and wait for their opportunities out of the spotlight backstage.
This dramatic structure applies equally well to the grievance procedure. Novices should be prepared for public performances during meetings and hearings to resolve grievances, and should not take the process personally.
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Negotiating tools
Contract costing: Used to evaluate proposals by estimating their monetary costs
Requires making projections of complex issues
Bargaining book – Each side uses three-ring binders to create a complete record of the negotiation and the minutes of each bargaining session
At the Bargaining Table

Negotiating Tools
Contract costing is one of the essential negotiating tools that participants use to evaluate proposals by estimating their monetary costs; a lump-sum bonus is perhaps the easiest proposal to cost—simply multiply the amount of the bonus by the number of employees who will receive it.
Most proposals are more complex, and their costs might depend on employee seniority, future staffing levels, and other complicating factors; contract costing therefore often requires making projections of complex issues and negotiators might disagree over these projections.
A bargaining book is another common tool for negotiators; each side uses three-ring binders to create a complete record of the negotiation, including their agenda, proposals, supporting documents, proposals and materials received from the other side, and the minutes of each bargaining session.
It can also be useful for the bargaining book to include a summary sheet that shows the status of each section (pending, agreed, or withdrawn) at the end of each bargaining session; negotiators might also receive assistance from neutral mediators.
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Bargaining in good faith
NLRA requires negotiators to bargain “in good faith”
Good faith bargaining requires that the parties must make “a serious attempt to resolve differences and reach a common ground.”
Examples of bad faith bargaining:
1. Unilateral change: Occurs when an employer changes wages, benefits or other terms of employment without first bargaining with the union
At the Bargaining Table

The National Labor Relations Act (NLRA) requires negotiators to bargain “in good faith” [Section 8(d)]. Good faith bargaining requires that the parties must make “a serious attempt to resolve differences and reach a common ground.”
The dividing line between good faith and illegal bad faith bargaining, however, is not always clear.
Following are some of the illegal bad faith bargaining:
Unilateral change—occurs when an employer changes wages, benefits, or other terms and conditions of employment without first bargaining with the union; this includes both during contract negotiations and when a contract is in force; an employer can make unilateral changes in mandatory bargaining items only after it has fulfilled its bargaining obligation by bargaining to an impasse.
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2. Direct dealing: Occurs when an employer illegally tries to circumvent and undermine a union by directly interacting with the employees with respect to bargaining issues
Refusing to provide information in certain situations
Such as upon request, from the union, which is necessary for representing the workers effectively
3. Surface bargaining: Occurs when an employer or a union goes through the motions of bargaining but does not sincerely try to reach an agreement
A company can use its bargaining power to achieve a favorable settlement (hard bargaining) but not to undermine the sincere pursuit of an agreement (surface bargaining).
At the Bargaining Table

Direct dealing—occurs when an employer illegally tries to circumvent and undermine a union by interacting directly with the employees with respect to bargaining issues.
Refusing to provide information in certain situations—upon request, an employer has an obligation to provide information to the union that is necessary for representing the workers effectively.
Surface bargaining—occurs when an employer or a union goes through the motions of bargaining but does not sincerely try to reach an agreement; it is a multifaceted concept, and in each case the NLRB looks at the specific facts and the totality of conduct, including delaying tactics, unreasonable bargaining demands, failure to designate an agent with sufficient bargaining authority, withdrawal of already agreed-upon provisions, making “take it or leave it” offers, refusing to make counterproposals, and arbitrary scheduling of meetings.
A company can use its bargaining power to achieve a favorable settlement (hard bargaining) but not to undermine the sincere pursuit of an agreement (surface bargaining).
27

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NLRA requires good faith bargaining over “wages, hours, and other terms and conditions of employment” [Section 8(d)].
At the Bargaining Table

Labor law also affects what is discussed at the bargaining table; specifically, the NLRA requires good faith bargaining over “wages, hours, and other terms and conditions of employment” [Section 8(d)].

7-29
Bargaining items are classified into three categories:
Mandatory bargaining items: Includes wages, hours, and terms and conditions of employment
Illegal bargaining items: Those that would violate the law, such as payment of wages below the legal minimum
Permissive bargaining items: Includes everything excluding mandatory and illegal
At the Bargaining Table

National Labor Relations Board (NLRB) is empowered by the U.S. Supreme Court to classify bargaining issues into the following three categories of bargaining items (called the Borg-Warner doctrine after the name of the Court’s decision):
Mandatory bargaining items—wages, hours, and terms and conditions of employment; employers and unions have an obligation to bargain over these.
Illegal bargaining items—bargaining items that would violate the law, such as closed shop provisions, policies that involve racial discrimination, or payment of wages below the legal minimum; employers and unions are prohibited from bargaining over such items. These are items that cannot be bargained over legally by either party. These issues violate a law and cannot be entered into a contract legally even if both parties agree. Examples of illegal subjects are: discrimination against a legally recognized group of people; hot cargo clauses (a provision allowing workers to refuse to handle material or goods from a struck facility or on an “unfair” list); closed shop clauses (a provision that all employee are union members before being hired-made illegal under the 1947 Taft-Hartley provisions).
Permissive bargaining item—it is the middle category that includes everything not in the other two (mandatory bargaining items and illegal bargaining items); employers and unions can bargain over permissive items if they choose; but because they are outside the boundaries of the NLRA, the NLRB cannot order bargaining on these issues, and employees are not protected if they go on strike over these issues.
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Permissive bargaining items: Includes everything excluding mandatory and illegal
Employer and union can bargain over permissive items if they choose
BUT because they are outside the boundaries of the NLRA, the NLRB cannot order bargaining on these issues.
And employees are not protected if they go on strike over these issues.
At the Bargaining Table

Permissive bargaining items: Includes everything excluding mandatory and illegal
Employer and union can bargain over permissive items if they choose
BUT because they are outside the boundaries of the NLRA, the NLRB cannot order bargaining on these issues.
And employees are not protected if they go on strike over these issues.
30

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Table 7.3 – Examples of Mandatory and Permissive Bargaining Items

Please carefully study Table 7.3 – Examples of Mandatory and Permissive Bargaining Items before taking the quiz on chapter 7 lecture note. Please note that effects of plant closing such as severance package is mandatory bargaining item, but the plant closing itself is a permissive item.
Please also note that compensation or working conditions for current employees are generally mandatory items, but compensation or working conditions for job applicants and retirees are permissive items.
31

Mandatory, permissive or illegal item?

Please take out your lecture note for Chapter 7. and take the quiz. For each of the bargaining items, please indicate if it is a mandatory, permissive , or illegal item
32

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Examples of bargaining items Mandatory, Permissive or Illegal?
1. Health insurance for retired employees Permissive
2. Change in retirement plan contributions Mandatory
3. Seniority provisions Mandatory
4. Contract ratification procedures Permissive
5. Health insurance premiums Mandatory
6. Wages below minimum wage Illegal
7. Straight time pay for overtime hours Illegal
8. Employee drug testing Mandatory
9. Subcontracting work Mandatory
10. Plant closings Permissive
11. Union representation on the board of directors Permissive
12. Pension/retirement contributions Mandatory

Here are the answers for the quiz. How many points did you get?
33

We have come to the end of our lecture today. If you have any questions, please feel free to email me.
See you next class!
34

Chapter 5 Part 2

Labor and Management: Strategies, Structures, and Constraints

Hi Class, Welcome to Industrial and Labor Relations. Today we are going to discuss Chapter 5 Labor and Management: Strategies, Structures, and Constraints Part 2
1

5-2
What are the two national union federations in the United States?

A quick recap. What are the two national union federations in the United States?
2

5-3
American Federation of Labor–Congress of Industrial Organizations (AFL–CIO)
National union federations

Change to Win federation

That’s right. The two national union federations are American Federation of Labor–Congress of Industrial Organizations (AFL–CIO)
and Change to Win federation
3

5-4
Many union strategies are developed in reaction to managerial strategies;
Two possible management attitudes toward labor unions include:
Union avoidance—the extent to which management works toward remaining nonunion, or becoming nonunion if already unionized.
Union acceptance—the extent to which management accepts, perhaps begrudgingly, the presence of a union or a drive to establish a union.
Management Strategies

Now let’s discuss the management strategies.
Many union strategies are developed in reaction to managerial strategies;
two possible management attitudes toward labor unions include:
Union avoidance refers to —the extent to which management works toward remaining nonunion, or becoming nonunion if already unionized.
Union acceptance refers to—the extent to which management accepts, perhaps begrudgingly, the presence of a union or a drive to establish a union.
Theoretically there is a third possibility: union encouragement, but there is little doubt that except in rare situations, U.S. corporations prefer to be nonunion
4

Union acceptance vs. Union avoidance

Let’s work on two exercise questions. Please click on the video. Is Southwest Airline adopting an union acceptance or union avoidance strategy?
5

Union acceptance

That’s right. Southwest Airline is an example of union acceptance management strategy.
6

Union acceptance vs. Union avoidance
International Association of Machinists and Aerospace Workers

Please click on the video. Is Boeing adopting a union acceptance or union avoidance strategy?
7

Union acceptance vs. Union avoidance
International Association of Machinists and Aerospace Workers

That’s right. Boeing adopts union avoidance strategy.
8

Boeing’s newest plant in South Carolina will remain nonunion after workers there overwhelmingly rejected an effort by the Machinist union to organize the plant.
According to a company statement, more than 2,000 of the nearly 3,000 Boeing workers at the plant eligible to vote in the closely watched election voted against the union, and only a bit more than 700 members voted yes.

5-10
Table 5.5 – Human Resources Patterns and Labor Relations Strategies

Table 5.5 summarizes the Human Resources Patterns and Labor Relations Strategies
10

5-11
A cost leadership seeks to minimize labor costs
Equity and voice are seen in market-based terms, and efficiency is paramount
A differentiation business strategy empowers employees to create a loyal and productive workforce
Equity and voice are important components of this strategy because of fair treatment and protective
Business Strategies

It is common to divide business strategies into the following two general types:
Cost leadership strategies (emphasizing low cost)—likely pursued through a human resources strategy that seeks to minimize labor costs; efficiency stems from low costs and high output, so labor is driven and treated as a commodity or machine; equity and voice are seen in market-based terms, and efficiency is paramount. Such approaches are consistent with the well-known Theory X of management, in which workers are assumed to dislike work and must therefore be commanded and controlled through threats of punishment. The result is a human resources approach that is largely autocratic.
Differentiation strategies (emphasizing product quality and features)—likely pursued through a human resources strategy that develops, rewards, and perhaps even empowers employees to create a loyal and productive workforce; equity and voice are important components of this strategy because fair treatment and protective benefits (equity) and individual voice mechanisms such as open-door policies can foster loyalty, satisfaction, and therefore productivity; this human resources strategy is consistent with Theory Y, in which managers motivate employees by establishing conditions of commitment and responsibility. More extensive approaches might even employ a strategic business partner HR strategy in which employees are seen as a source of competitive advantage; employees are thus empowered in high-performance workplaces. In management theory this approach is similar to Theory Z, which features participative decision making. The overall approach is paternalistic.
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Labor relations strategies
Autocratic and paternalistic/strategic patterns reveal the importance of managerial attitudes toward unions
Management does not seek to oust the union
Management Strategies

Labor Relations Strategies
The autocratic and paternalistic/strategic patterns help reveal the importance of managerial attitudes toward unions.
Management does not seek to oust the union

5-13
Union acceptance: A union acceptance strategy in an autocratic organization
Adversarial negotiations; strikes and grievance activity
Management does not seek to oust the union.
Management Strategies

5-14
Union suppression: A union avoidance strategy in an autocratic organization
Tactics include
Harassment, demotion, or firing of union supporters
Plant closings, outsourcing, bankruptcies, double-breasting
To decertify (kick out) the union
Engaging in surface bargaining
(going through the motions without intending to reach agreement)
Using permanent strike replacements to take the jobs of union supporters

Management Strategies

A union acceptance strategy in an autocratic organization would likely consist of adversarial negotiations in which labor and management negotiators challenge and threaten each other during negotiations; strikes and grievance activity would also be expected to be higher than average as management fights to keep labor costs down and unions react to this aggressiveness.
But management does not seek to oust the union.
However, a union avoidance strategy in an autocratic organization is union suppression. Some might call this union busting. Union suppression tactics may include harassment, demotion, or firing of union supporters. This behavior is illegal in the United States, but is nevertheless common.
A set of union suppression tactics involves either proactively or reactively shifting work from locations that are unionized (or are threatening to unionize):
Union suppression Tactics include harassment, demotion, or firing of union supporters
Union suppression Tactics also include
Plant closings
Outsourcing
Bankruptcies
Double-breasting which refers to (the opening of nonunion operations in the same market, a popular strategy in construction).
An aggressive union suppression strategy in a unionized workplace might include the following tactics:
To decertify (kick out) the union
Engaging in surface bargaining (going through the motions without intending to reach agreement)
Using permanent strike replacements to take the jobs of union supporters

5-15
Union substitution: In a paternalistic/strategic organization, a union avoidance strategy
Management adopts policies and practices to keep unions out by making them unnecessary
Employees are made to feel like they are part of the organization
They have voice, with information sharing and participatory mechanisms
Quality circles
Management Strategies

In a paternalistic/strategic organization, a union avoidance strategy is union substitution in which management adopts policies and practices to keep unions out by making them unnecessary; some of the central features of this strategy include the following:
Paying above-market wages and benefits (often comparable to unionized compensation packages)
Providing employment security
Giving employees opportunities for training and development
Instituting informal grievance procedures or at least complaint mechanisms
Authoritarian supervision is replaced with more respectful, coaching methods of supervision, and attitude surveys are used to monitor employee satisfaction.
Employees are made to feel like they are part of the organization, and have voice, with information sharing and participatory mechanisms such as quality circles.
Through these equity and voice mechanisms, employers hope to create not only loyal and productive workers, but also workers who feel they do not need a union.
Employees are made to feel like they are part of the organization
They have voice, with information sharing and participatory mechanisms
Such as Quality circles
15

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Exercise (Lecture Notes, Chapter 5)
Table 5.6 – Union Avoidance Tactics
Union Suppression
OR
Union Substitution?

Let’s work on an exercise to check your understanding of the two union avoidance tactics. Please take out your lecture notes and work on Table 5.6 Union Avoidance Tactics.
For each of the 16 union avoidance tactics, please indicate whether it is a case of union suppression or union substitution. Please answer all 16 questions before moving on to the answers in the next slide.
16

Firing or harassing union supporters
Screening out pro-union applicants
Above-market pay and benefits
Opportunities for training and development
Union Avoidance Tactics
Union Suppression vs. Union Substitution

Firing or harassing union supporters
Screening out pro-union applicants
Are Union Suppression
Above-market pay and benefits
Opportunities for training and development
Are Union Substitution
17

Plant closings or bankruptcy
Subcontracting or outsourcing
Respectful supervision
Complaint or grievance procedures
Union Avoidance Tactics
Union Suppression vs. Union Substitution

Plant closings or bankruptcy
Subcontracting or outsourcing
Are Union Suppression
Respectful supervision
Complaint or grievance procedures
Are Union Substitution

Investing in nonunion sites
Surface bargaining
Employment security
Attitude surveys
Union Avoidance Tactics
Union Suppression vs. Union Substitution

Investing in nonunion sites
Surface bargaining
Are Union Suppression
Employment security
Attitude surveys
Are Union Substitution
19

Using permanent strikes replacements
Facilitating decertification
Information sharing
Consultation/ participation mechanisms
Union Avoidance Tactics
Union Suppression vs. Union Substitution

Using permanent strikes replacements
Facilitating decertification
Are Union Suppression
Information sharing
Consultation/ participation mechanisms
Are Union Substitution

5-21
Table 5.6 – Union Avoidance Tactics

Here is the answer. The 8 tactics on the left are union suppression tactics. The 8 tactics on the right are union substitution tactics.
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Employee involvement programs
Work teams, and other practices are jointly established by representatives of management and workers
A union has the potential to better articulate true employee concerns
Individuals will speak more freely when employees are not afraid of management reprisal
Management Strategies

Employee involvement programs
Work teams, and other practices are jointly established by representatives of management and workers
A union has the potential to better articulate true employee concerns
Individuals will speak more freely when employees are not afraid of management reprisal
22

5-23
Labor relations strategies in practice
The history of human resources and industrial relations in the U.S. automobile industry provides examples of different labor relations strategies
In the postwar period the United Auto Workers (UAW) became entrenched at Ford
Resistance to unions became prohibitively expensive
Auto and other manufacturing industries are no longer the pacesetters for the American business
Management Strategies

Henry Ford implemented a form of paternalistic welfare capitalism with his $5-a-day plan in 1914. After a recession in the early 1920s, however, Ford adopted a more antagonistic strategy and aggressively fought any attempts at unionization by its workers for the next 20 years. Ford became famous for its so-called Service Department—essentially an internal police force composed of criminals and informers—which used spying, intimidation, and violence to suppress union activity.
In the postwar period the United Auto Workers (UAW) became entrenched at Ford, and resistance to unions became prohibitively expensive; Ford then adopted a union acceptance strategy that accepted, but sought to contain, the presence of the UAW.
The auto and other manufacturing industries, however, are no longer the pacesetters for the rest of American business.
23

5-24
Labor relations strategies in practice
Some argue that Wal-Mart is creating the template for 21st-century capitalism in the United States and around the world.
Wal-Mart’s human resource strategies fit with the business strategy where policies are centralized and standardized, store managers’ labor costs are carefully policed by Wal-Mart’s headquarters, worker behavior is tightly proscribed, and wages and benefits are low.
Wal-Mart is also aggressively antiunion
Management Strategies

Rather, some argue that Wal-Mart is creating the template for 21st-century capitalism in the United States and around the world.
Wal-Mart’s human resource strategies fit with the business strategy where policies are centralized and standardized, store managers’ labor costs are carefully policed by Wal-Mart’s headquarters, worker behavior is tightly proscribed, and wages and benefits are low.
Wal-Mart is also aggressively antiunion; if a manager suspects any union activity, a rapid response team is dispatched from headquarters to squelch this threat; antiunion videos are shown, supervisors meet with employees one-on-one, employees are closely watched, and union supporters are reportedly fired.
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Labor and management must contend with the conflicting strategies, pressures and, opportunities of the labor relations environment
Dimensions include legal, economic, sociopolitical, and ethical
The legal environment
The legal system in every country establishes the framework for labor–management interactions
Clearest component of the legal environment is the set of laws explicitly pertaining to labor relations
The Labor Relations Environment

Labor and management must contend not only with each other’s sometimes conflicting strategies but also with the pressures, constraints, and opportunities of the labor relations environment; the four important
dimensions of this environment are—legal, economic, sociopolitical, and ethical.
The legal environment
The legal system in every country establishes the framework for labor–management interactions
Clearest component of the legal environment is the set of laws explicitly pertaining to labor relations
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5-26
U.S. employment standards are established by
Fair Labor Standards Act
Civil Rights Act
Occupational Health and Safety Act
Family and Medical Leave Act
The U.S. employment relationship is governed by the employment-at-will doctrine
The Labor Relations Environment

Following are some of the laws that establish some of the U.S. employment standards:
The Fair Labor Standards Act (minimum wages and overtime payments)
The Civil Rights Act (nondiscrimination)
The Occupational Health and Safety Act (workplace safety)
The Family and Medical Leave Act (unpaid leave)
The U.S. employment relationship is governed by the employment-at-will doctrine
The employment-at-will doctrine which govern the U.S. employment relationship is the most significant in labor relations; in the absence of legislative (especially antidiscrimination laws) or contractual restrictions (most widely associated with union contracts), employees can generally be discharged or quit at any time for any reason. This at-will relationship is established by the legal environment.

5-27
The economic environment includes:
The labor market
The market for the employer’s products or services
Markets for other factors of production, and
the state of the overall economy
The Labor Relations Environment

The economic environment includes:
The labor market
The market for the employer’s products or services
Markets for other factors of production, and
the state of the overall economy
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5-28
The economic environment critically determines workers’ employment options
Unemployment is low and jobs are easy to find
A frustrated employee might quit and find a better job elsewhere
labor demand—the strength of an employer’s need for employees
Concession bargaining: Many unions agree to wage, benefit, and work rule concessions to try to save jobs
The Labor Relations Environment

The economic environment critically determines workers’ employment options
If the labor market is tight—that is, if unemployment is low and jobs are easy to find—
a frustrated employee might quit and find a better job elsewhere.
In a weak labor market with high levels of unemployment, employees might be reluctant to form a union for fear of being fired and unable to find a new job; similarly, employees might be less willing to strike when the labor market is weak, and collective bargaining settlements are therefore expected to favor employers.
Another important factor is labor demand—the strength of an employer’s need for employees; it is a demand derived from employers’ competitive positions in markets for their goods and services
Concession bargaining: occurs when Many unions agree to wage, benefit, and work rule concessions to try to save jobs
The sharp increase in the employment in the early 1980s, accompanied an intense period of concession bargaining in which many unions agreed to wage, benefit, and work rule concessions (or givebacks) to try to save jobs; this is a scenario that was recently repeated in the first decade of the 21st century as the major auto companies, airlines, and newspapers teetered on the edge of survival.

5-29
Technology affects the relative supply of and demand for various occupations
Skill-biased technological change upgrades the skill requirements of technical jobs
Results in greater demand for high skills
Deskilling technological change reduces the skills required for a specific job
The Labor Relations Environment

Technology also affects the relative supply of and demand for various occupations and is therefore an important element of the labor relations environment; the central debate over technology is whether technological change is skill-biased or deskilling.
Skill-biased technological change—upgrades the skill requirements of technical jobs and results in greater demand for high skills; it is biased in favor of skilled workers; often associated with information technology and is a leading explanation for the increased wage gap between low- and high-skilled workers.
Deskilling technological change—reduces the skills required for a specific job; often associated with scientific management efforts to reduce complex jobs to simple, repetitive tasks and is argued to be a management tool for gaining control of the workplace and enhancing its bargaining power.
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5-30
The sociopolitical environment
Captures factors from the social and political arenas
Influence labor and management
Employment outcomes can be influenced by public attitudes toward labor unions.
Labor relations environment can favor labor or management depending on the extent of social support for each group
Employment outcomes can be influenced by public attitudes toward labor unions
The Labor Relations Environment

The sociopolitical environment captures factors stemming from the social and political arenas that influence labor and management.
Employment outcomes can be influenced by public attitudes toward labor unions.
Labor relations environment can favor labor or management depending on the extent of social support for each group
Employment outcomes can be influenced by public attitudes toward labor unions
Business and labor can also lobby political leaders for favorable treatment.
Political environment can affect the labor relations environment by making it easier for unions to organize new workplaces.
Some employee groups rely on political lobbying rather than collective bargaining to improve wages and working conditions; because of their shunning of collective bargaining, such groups are often referred to as associations rather than unions; associations can grow into “full-fledged” unions that engage in collective bargaining.

Union Approval

Let’s look at two Gallup poll results. The first question asks do you approve or disapprove of labor unions?
Sixty-two percent of Americans approve of labor unions today, which is consistent with the 61% who approved last year and up from 56% in 2016. Before 2017, public support for unions hadn’t exceeded 60% since 2003, when 65% approved.
31

Union Approval

The second question asks would you, personally, like to see labor unions in the United States have more influence than they have today, the same amount as today or less influence than they have today?
More Want Union Strength to Grow Than Shrink
Although a majority of Americans approve of labor unions, fewer want unions’ influence
to grow. About four in 10 (39%) would prefer to see unions have more influence than
they have today; 26% want their influence to stay the same, and 29% would prefer that
they have less influence.
Americans’ preference for union power is nearly identical to what Gallup found a year ago
and represents greater support for strengthening unions than was the case for most of
the previous decade.
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Unions represent workers at public utilities
Phone companies can lobby for rate increases and mandated service improvements
Some employee groups rely on political lobbying rather than collective bargaining to improve wages and working conditions
Political environment affected the labor relations environment by making it easier for unions to organize new workplaces
The Labor Relations Environment

Unions represent workers at public utilities
Phone companies can lobby for rate increases and mandated service improvements
Some employee groups rely on political lobbying rather than collective bargaining to improve wages and working conditions
Political environment affected the labor relations environment by making it easier for unions to organize new workplaces
33

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The ethical environment
Business ethics studies moral standards as they apply to the business context
Business ethics is an important motivating force for and potential constraint on behavior
Arguments against labor unions on the grounds that they impair efficiency or intrude on property rights reflect utilitarian and libertarian ethical beliefs.
Arguments for labor unions because they provide equity and voice that respect human dignity, fairness, and the importance of community reflect the ethics of duty, justice, virtue, and care.
The Labor Relations Environment

Business ethics studies moral standards as they apply to the business context and is therefore important for understanding and evaluating labor relations behaviors, policies, and outcomes.
Business ethics should be viewed as a motivating force for and potential constraint on behavior.
The external environment establishes the parameters for decision makers, but specific actions within these parameters result from choices made by individual employees, managers, union leaders, and shareholders; one important influence on these choices is ethics.
Ethics is not just philosophy; it provides an additional framework for a better understanding of labor relations.
Arguments against labor unions on the grounds that they impair efficiency or intrude on property rights reflect utilitarian and libertarian ethical beliefs.
Arguments for labor unions because they provide equity and voice that respect human dignity, fairness, and the importance of community reflect the ethics of duty, justice, virtue, and care.

5-35
Table 5.7 – Six Ethical Frameworks

Table 5.7 summarizes six key ethical theories.
35

5-36
The ethical environment: six ethical theories
Utilitarianism – Ethical actions that maximize aggregate welfare
Libertarianism – Emphasizes property rights and freedom from governmental interference
Kantian ethical theory—individuals have a duty to respect human dignity; highlights a concern with how workers are treated.

The Labor Relations Environment

Utilitarianism defines ethical actions as those that maximize aggregate welfare (“utility”) so aggregate economic prosperity is highlighted, irrespective of how it is achieved.
Libertarianism sees actions that infringe on others’ freedoms as unethical, and therefore emphasizes property rights and freedom from governmental (or labor union) interference.
Kantian ethical theory suggests that individuals have a duty to respect human dignity; highlights a concern with how workers are treated.

5-37
The ethical environment: six ethical theories
Rawlsian justice ethics—there is an ethical concern for the least well-off; highlights a concern with how workers are treated.
The ethics of virtue and care—highlight the ethical value of our individual actions and our special relationships with others.
The continuing managerial drive for greater flexibility in deploying labor, and the continued resistance by workers and unions, reflect in part a clash between utilitarian concerns with efficiency and Kantian concerns with the quality of human life.

The Labor Relations Environment

Rawlsian justice ethics suggests that there is an ethical concern for the least well-off; highlights a concern with how workers are treated.
The ethics of virtue and care highlight the ethical value of our individual actions and our special relationships with others.
The continuing managerial drive for greater flexibility in deploying labor, and the continued resistance by workers and unions, reflect in part a clash between utilitarian concerns with efficiency and Kantian concerns with the quality of human life.
37

We have come to the end of our lecture today. If you have any questions, please feel free to email me.
See you next class!
38

Chapter 6
Part 1

Union Organizing

Hi Class, Welcome to Industrial and Labor Relations. Today we are going to discuss Chapter 6 Union Organizing Part 1
In the U.S. labor relations system, if a group of employees wants their employer to bargain with them collectively rather than individually, they typically need to form a union and formally demonstrate that a majority of the employees support the union. This chapter discusses the behavioral, strategic, and legal aspects of this union organizing process.

6-2
Discuss the basic procedural steps and legal standards for how new unions are formed in the United States
Explain why individuals vote for or against a union in a representation election
Understand the tactics used by employers to weaken individual support for unions and why these tactics are controversial
Learning Objectives

The learning objectives of chapter 6 are as follows
Discuss the basic procedural steps and legal standards for how new unions are formed in the United States
Explain why individuals vote for or against a union in a representation election
Understand the tactics used by employers to weaken individual support for unions and why these tactics are controversial
2

6-3
Understand the traditional tactics used by unions to strengthen individual support for unions and the pressures for developing new strategies
Compare the pros and cons of the existing certification election process and options for reform
Learning Objectives

Understand the traditional tactics used by unions to strengthen individual support for unions and the pressures for developing new strategies
Compare the pros and cons of the existing certification election process and options for reform
3

6-4
If a group’s request to change a policy is ignored, they can:
They can look for work elsewhere
They can endure the existing policy
They can be disruptive and cause the employer to reconsider
They can try to form a labor union
Introduction

When a group of workers are dissatisfied with certain workplace policies, they may request changes to the policy.
If a group’s request to change a policy is ignored, what can they do?
They can look for work elsewhere
They can endure the existing policy
They can be disruptive and cause the employer to reconsider
They can try to form a labor union

6-5
Ways in which a union can be formed
Employees could initiate strike and ask for support
Union supporters could get workers to sign cards or a petition and present results to management
Employees could have a secret ballot election in which the union and employer abide by majority decision
Introduction

A union can be formed in numerous ways:
A few employees could initiate a strike and then round up support (as in the 1930s sit-down strikes)
Union supporters could get workers to sign cards or a petition and present the results to management along with a threat to strike if management ignores their request
The employees could have a secret ballot election in which the union and employer must abide by the decision of the majority
5

6-6
Most U.S. unions are organized (formed) through secret ballot elections administered by the National Labor Relations Board (NLRB).
Representation elections: Employees elect representatives
The most significant type of representation election is a certification election—an election to determine whether a union will be certified as the bargaining agent of the employees.

Introduction

Since the passage of the National Labor Relations Act (NLRA) in 1935, U.S. public policy has favored the last option. Most U.S. unions are organized (formed) through secret ballot elections administered by the National Labor Relations Board (NLRB).
The first major U.S. labor relations process—the organizing process—is therefore principally shaped by the NLRA and the procedural and legal aspects of NLRB elections. These representation elections answer questions of whom the employees want to represent them.
The most significant type of representation election is a certification election—an election to determine whether a union will be certified as the bargaining agent of the employees.
6

6-7
Initiating an organizing drive
Three possible initiators
One or more employees
A union
An employer
The Organizing Time Line

Initiating an Organizing Drive
The first step in union organizing drive is initiation. In theory, there are three possible initiators of an organizing drive:
One or more employee—Low pay, excessive overtime, harsh supervision, lack of respect and voice, or numerous other factors cause dissatisfied employees to talk with each other about forming a union to increase their collective strength; they might try to form a union on their own or, more frequently, contact a union organizer who works for an existing union in their area, industry, or occupation.
A union—unions initiate organizing campaigns by advertising, distributing information, and trying to contact employees to show the benefits of unionization.
An employer—employer-initiated organizing drive interferes with employee free choice and therefore is illegal.
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Employee-initiated organizing drive originates from:
Low pay
Excessive overtime
Harsh supervision
Lack of respect and voice
The Organizing Time Line

Employee-initiated organizing drive originates from:
Low pay
Excessive overtime
Harsh supervision
Lack of respect and voice

6-9
Get together with your co-workers who may share a common interest in organizing a union.
Talk to a union organizer in order to strategize and to learn the next steps.
Talk to your co-workers to build support for the union.
Show that support through an election or a card-check once you have a strong majority.
https://aflcio.org/formaunion/4-steps-form-union
Four Steps to Get You Started
AFL-CIO

When you and your co-workers come together to form a union, you get the right to negotiate with your employer over wages, benefits and working conditions.
No matter what the industry you are in, or the labor law that covers it, the process for forming a union is similar.
Get together with your co-workers who may share a common interest in organizing a union.
Talk to a union organizer in order to strategize and to learn the next steps.
Talk to your co-workers to build support for the union.
Show that support through an election or a card-check once you have a strong majority.
Once your union is official, you’ll choose your leaders and negotiate a contract. The process is democratic, and the more inclusive you can be, the stronger your union will be.

http://www.aflcio.org/Learn-About-Unions/How-to-Join-or-Form-a-Union/Four-Steps-to-Get-You-Started

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Unions initiate organizing campaigns
By advertising, distributing information, trying to contact employees to show benefits of unionization
Two types of union-initiated campaigns
Strategic campaigns – Organize a workplace and enhance representation of existing employees
Opportunistic campaigns – Increase a union’s membership by organizing dissatisfied workers
The Organizing Time Line

unions initiate organizing campaigns by advertising, distributing information, and trying to contact employees to show the benefits of unionization.
There are two types of union-initiated campaigns: strategic and opportunistic campaigns; strategic campaigns are those in which organizing a particular workplace enhancing a union’s ability to effectively represent existing employees;
opportunistic campaigns attempt to increase a union’s membership by organizing dissatisfied workers who are “ripe” for unionization but who do not have a strategic fit with the existing membership.
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True / False Questions

Let’s work on 3 practice questions. For each case, please indicate whether it is true or false.
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1. When the Teamsters Union, one of the largest unions representing truck drivers and other cargo handlers, aggressively tries to organize semi-drivers who are nonunion, their campaign would be best described as strategic, rather than opportunistic, in nature.
True / False Questions

Question 1.
When the Teamsters Union, one of the largest unions representing truck drivers and other cargo handlers, aggressively tries to organize semi-drivers who are nonunion, their campaign would be best described as strategic, rather than opportunistic, in nature.
Is it true or false?
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The answer is true. the Teamsters Union represents truck drivers and other cargo handlers. Organizing semi-drivers enhances the union’s ability to effectively represent existing employees
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2. If the U.S. Airline Pilots Association begins to organize a group of food service employees at the Chicago O’Hare airport that is very interested in unionizing, they are engaged in an opportunistic organizing drive.
True / False Questions

Question 2.
If the U.S. Airline Pilots Association begins to organize a group of food service employees at the Chicago O’Hare airport that is very interested in unionizing, they are engaged in an opportunistic organizing drive.
Is it true or false?
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The answer is true. The U.S. Airline Pilots Association mainly represent pilots. The airport food service employees do not have a strategic fit with the existing membership, pilots.
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3. The United Food and Commercial Workers International Union, which represents many grocery store employees across the country, decides to aggressively campaign to unionize Walmart employees. This organizing drive is best described as an opportunistic organizing drive.
True / False Questions

Question 3
The United Food and Commercial Workers International Union, which represents many grocery store employees across the country, decides to aggressively campaign to unionize Walmart employees. This organizing drive is best described as an opportunistic organizing drive.
Is it true or false?
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The answer is false. It is strategic organizing drive. The United Food and Commercial Workers International Union mainly represents many grocery store employees. Walmart employees have a strategic fit with the existing membership
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The Union Organizing Process

Now let’s discuss the union organizing process. Please click on the video and watch the video on the Union Organizing Process
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Figure 6.1 – The Union Organizing Process

Figure 6.1 shows the union organizing process.
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Here is one example. Southern California Hospital at Hollywood formed their union with SEIU Local 121RN. The Registered Nurses of Southern California Hospital at Hollywood ratified their contract on December 28, 2018
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The National Labor Relations Board elections results are available online.
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As you can see, Southern California Hospital at Hollywood held an election on November 3rd, 2017. There were 91 eligible voters, 31 valid voters against unionization and 46 voters voted for the union. The union has won the election.
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Building and documenting support
This involves meeting of interested employees outside the workplace and distributing information
The method in U.S. labor relations for showing support is to sign an authorization card
Preprinted form containing a written authorization to represent one for the purposes of collective bargaining
The Organizing Time Line

Building and Documenting Support
Once an organizing drive has been initiated, the next step in the union organizing time line is building support which involves meeting interested employees outside the workplace and distributing information.
If an organizing drive is to continue, employees must concretely express support for having a union represent them.
The most important method in U.S. labor relations for showing this support is to sign an authorization card—a preprinted form which is filled and signed by the employee, describing that he/she authorizes a certain union to represent him/her for the purposes of collective bargaining.
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Collecting signed authorization cards is a crucial part of the union organizing process
The cards demonstrate the interest in unionization to three important players:
Union organizers
The employer
The NLRB
Authorization cards show the employer that a majority of employees want union representation.
The Organizing Time Line

Collecting signed authorization cards is a crucial part of the union organizing process
because the cards demonstrate the interest in unionization to three important players—union organizers, the employer, and if necessary, the NLRB.
Authorization cards show the employer that a majority of employees want union representation.
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Card check recognition: Recognition based on authorization cards
Gathering signed cards from more than 50 percent of employees, can recognize union as bargaining agent
A neutral party examines the cards and determines if truly more than 50 percent of the employees signed cards
The employer can recognize the union and is then obligated to bargain with the union
This is called voluntary recognition
The Organizing Time Line

Recognition based on authorization cards is called card check recognition or a majority sign-up procedure.
If a union gathers signed cards from more than 50 percent of the employees, it can ask the employer to recognize the union as the bargaining agent of the employees.
If the employers is agreeable, a neutral party can examine the cards and determine if truly more than 50 percent of the employees signed cards.
If so, the employer can recognize the union and is then obligated to bargain with the union. This is called voluntary recognition.
Unions are aggressively pushing for card check recognition procedures, both through legislative action (via the Employee Free Choice Act) that would require employers to accept card check recognition and through agreements with specific companies to voluntarily accept card check recognition.
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Alternative to voluntary recognition
Step up the pressure on the company to force it to change its stance
Employees can launch a recognition strike
Strike to compel employer to recognize their union
The NLRA does not ban recognition strikes but tries to make them obsolete
Most recognition questions today are settled through NLRB representation elections rather than through strikes.

The Organizing Time Line

Alternative to voluntary recognition is to
Step up the pressure on the company to force it to change its stance
Employees can launch a recognition strike.
A recognition strike is launched by employees to try to compel the employer to recognize their union.
A major goal of the NLRA is to replace recognition strikes with an orderly alternative. The NLRA does not ban recognition strikes but tries to make them obsolete.
The 1935 passage of the NLRA created a certification procedure in which employees can petition the NLRB for an election to determine if a union has the support of a majority of the employees; the NLRA does not ban recognition strikes per se but rather tries to make them obsolete by giving employees a safer alternative that does not involve lost wages and the risk of being replaced by new employees during a strike.
Most recognition questions today are settled through NLRB representation elections rather than through strikes.

Union Organizing:
Authorization Cards:
What percentage of signed authorization cards are required under the NLRB to proceed with an election?

Let’s work on one practice question. Authorization Cards: What percentage of signed authorization cards are required under the NLRB to proceed with an election?
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During an organizing campaign, union representatives seek employee interest by having the employees sign authorization cards to indicate that the employees want union representation.
At least 30% of the eligible employees in a prospective bargaining unit must sign authorization cards before the NLRB will order an election.
A simple majority of 50% plus one person must vote in favor of union representation in order to win the election.

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Types of elections
Certification election
used in a nonunion location to ascertain if a majority of employees want to become unionized
Decertification election
used to determine whether a majority of unionized employees no longer wish to be represented by their union
All representation elections have the same goal
To determine the wishes of the majority of employees
NLRB Representation Elections

The several types of NLRB representation elections correspond to different questions of representation, but all have the same goal: to determine the wishes of the majority of employees.
Following are two types of election:
Certification election—used in a nonunion location to ascertain if a majority of employees want to become unionized—that is, to designate a specific union as their bargaining agent; it is the most frequent type of election.
Decertification election—used to determine whether a majority of unionized employees no longer wish to be represented by their union; opposite of a certification election; most decertification elections result in a workplace going from union to nonunion.
All representation elections have the same goal
Which is To determine the wishes of the majority of employees
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Certification election: Used in a nonunion location to ascertain if a majority of employees want to become unionized
NLRB uses the election results to certify the union as the bargaining agent
Most certification elections have just one union on the ballot
NLRB Representation Elections

Certification election: Used in a nonunion location to ascertain if a majority of employees want to become unionized
NLRB uses the election results to certify the union as the bargaining agent
Most certification elections have just one union on the ballot
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Table 2 shows the NLRB representation elections and win rates by the 10 most active unions. SEIU, IAM, SPFPA and AFSCME have higher win rates.
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Table 3 shows the NLRB representation elections and win rates by industry. Union wins are higher in services, transportation, communications and utilities., construction and finance.
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Decertification election: Determines whether a majority of unionized employees no longer wish to be represented by their union
Raid election – A small number of decertification elections decertify the existing union and certify a new union
Most decertification elections result in a workplace going from union to nonunion
NLRB Representation Elections

Decertification election—used to determine whether a majority of unionized employees no longer wish to be represented by their union; opposite of a certification election; most decertification elections result in a workplace going from union to nonunion.
Raid election refers to A small number of decertification elections decertify the existing union and certify a new union
Most decertification elections result in a workplace going from union to nonunion
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Employees may file a petition for decertification (RD) if they believe support for a union has diminished, after collecting signatures from at least 30% of workers in a unit.
A majority of votes decides the outcome.
Decertification Petitions – RD

6-35
Getting the NLRB to conduct an election
A group of employees or a union must file a petition form with the NLRB
Petition must be supported by 30 percent of the employees for such an election
NLRB Representation Elections

Getting the NLRB to Conduct an Election
Following are the requirements for getting the NLRB to conduct an election:
A group of employees or a union must file a petition form with the NLRB requesting them to conduct the election.
This petition must be supported by a demonstration of sufficient interest among the employees for such an election. “Sufficient interest” is defined by the NLRB as 30 percent. The typical way to demonstrate sufficient interest is to provide signed authorization cards from at least 30 percent of the employees.
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NLRB deals with several other details before scheduling elections
Unless in an unusual circumstance, the NLRB will not allow more than 1 election in 12-month period
Elections will not be authorized within 12 months of any union certification
Under the contract bar doctrine, a decertification election cannot be held when there is a valid collective bargaining agreement
NLRB Representation Elections

The NLRB must deal with several other details before scheduling a representation election—
unless there are unusual circumstances, the NLRB will not allow more than one election in a 12-month period;
elections will not be authorized within 12 months of any union certification.
A decertification election cannot be held when there is a valid collective bargaining agreement in place (up to a limit of three years); this is called the contract bar doctrine.
The NLRB must handle the most contentious aspect of the petition—defining the occupations and geographical locations included in a certification election.
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Determining the appropriate bargaining unit
When a petition for a certification election is filed with the NLRB, a definition of the relevant jobs and locations is proposed by the party filing the petition.
If the employer objects to this definition, the NLRB must make a determination.
Appropriate bargaining unit: Group of occupations and locations relevant to the certification election
Individuals who are not defined as employees by the NLRA are excluded
NLRB Representation Elections

Determining the Appropriate Bargaining Unit
When a petition for a certification election is filed with the NLRB, a definition of the relevant jobs and locations is proposed by the party filing the petition.
If the employer objects to this definition, the NLRB must make a determination.
Section 9(b) of the NLRA states that the NLRB “shall decide in each case whether, in order to assure to employees the fullest freedom in exercising the rights guaranteed by this Act, the unit appropriate for the purposes of collective bargaining shall be the employer unit, craft unit, plant unit, or subdivision thereof.”
The group of occupations and locations relevant to the certification election is referred to as the appropriate bargaining unit; employees in these occupations can vote in the election and will be represented by the union if the union wins the election.
Individuals who are not defined as employees by the NLRA are excluded

6-38
The appropriate unit is determined in the following ways:
Individuals who are not defined as employees by the NLRA, such as supervisors and managers, are excluded from NLRB-defined bargaining units
Jobs that share a community of interest are grouped together.
Ultimately determining the appropriate bargaining unit must be done case by case because the details can vary from one workplace to another.
NLRB Representation Elections

The appropriate unit is determined in the following ways:
Individuals who are not defined as employees by the NLRA, such as supervisors and managers, are excluded from NLRB-defined bargaining units; can be critical if enough employees are excluded.
Jobs that share a community of interest are grouped together.
Ultimately determining the appropriate bargaining unit must be done case by case because the details can vary from one workplace to another.

6-39
The supervisor controversy
After much anticipation by unions and employers, the NLRB issued three key decisions in 2006 called the Kentucky River cases
It prompted the NLRB to rethink its approach to determining supervisory status
Increased supervisory exclusions from the NLRA show the continued erosion of employee rights to form labor unions
NLRB Representation Elections

The Supervisor Controversy
The exclusion of supervisors from NLRB-determined bargaining units, and more generally from the NLRA protections, has become particularly important as the skill requirements for many jobs have increased.
Unions fear that companies are intentionally giving employees just enough responsibility to make them legally seen as supervisors with the express intent of removing them from the NLRA protections and thus making it harder for employees to unionize.
Each time this issue is brought before the NLRB, it must determine who is and is not a supervisor by applying the statutory definition contained in the NLRA. Section 2(11) of NLRA defines “supervisor” as any individual having authority, in the interest of the employer, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibly to direct them, or to adjust their grievances, or effectively to recommend such action, if in connection with the foregoing the exercise of such authority is not of a merely routine or clerical nature, but requires the use of independent judgment.
The key legal difficulties are how to interpret these functions and how to weight them.
After much anticipation by unions and employers, the NLRB simultaneously issued three key decisions in 2006. These are called the Kentucky River cases after the name of the Supreme Court ruling that prompted the NLRB to rethink its approach to determining supervisory status. In these cases the NLRB crafted new definitions for assign, responsibly direct, and independent judgment; and in three specific settings it found that permanent charge nurses who frequently assign employees to specific patients are supervisors, rotating charge nurses who occasionally assign employees to patients are not supervisors, other charge nurses who are not accountable for the performance of other nurses are not supervisors, and lead employees in a manufacturing facility whose direction of other employees is largely routine are not supervisors.

Collective Bargaining Agreement:
What employee categories are excluded from the bargaining unit?

Now, let’s discuss this important question. What employee categories are excluded from the bargaining unit?
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Employees excluded from coverage under the National Labor Relations Act (NLRA) include supervisors, managers, confidential employees, and others. Under the NLRA,
A supervisor is defined as someone who uses independent judgment to make personnel decisions or to recommend personnel decisions.
Personnel decisions include hiring, promoting, transferring, rewarding, and terminating employees.
Exclusions

A managerial employee is defined as someone who makes, executes, and exercises independent judgment about management policies. Managerial employees normally do not manage people.
A confidential employee is defined as someone who assists and acts in a confidential capacity to the management personnel who make and implement labor relations policies, or as someone who has regular access to confidential information about future bargaining strategy or changes that the employer anticipates may result from collective bargaining.
Exclusions

Other employees who are excluded from the bargaining unit include
independent contractors,
agricultural workers,
domestic workers,
people employed by a parent or a spouse,
and public employees.
Exclusions

Other employees who are excluded from the bargaining unit include
independent contractors,
agricultural workers,
domestic workers,
people employed by a parent or a spouse,
and public employees.
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Scheduling the election
Elections are supervised and monitored by NLRB officials
They usually take place at the employees’ worksite
Each eligible worker can vote using a secret ballot
NLRB Representation Elections

Once all the details are ironed out—sufficient interest, timeliness, and unit definition—the NLRB will schedule an election
Elections are supervised and monitored by NLRB officials
and usually take place at the employees’ worksite. In special circumstances mail ballots are allowed.
Each eligible worker can vote using a secret ballot
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Half of all elections are held within 39 days of a petition being filed
Between filing petition and conducting election, campaigning by unions and employers takes place
Challenges to a unit definition can drastically lengthen the election timetable, and a few elections might not occur until a year or more after a petition is filed.

NLRB Representation Elections

Half of all elections are held within 39 days of a petition being filed
Between filing petition and conducting election, campaigning by unions and employers takes place
Challenges to a unit definition can drastically lengthen the election timetable, and a few elections might not occur until a year or more after a petition is filed.
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We have come to the end of our lecture today. If you have any questions, please feel free to email me.
See you next class!
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Chapter 5
Part 1

Labor and Management: Strategies, Structures, and Constraints

Hi Class, Welcome to Industrial and Labor Relations. Today we are going to discuss Chapter 5 Labor and Management: Strategies, Structures, and Constraints Part 1
The previous two chapters have described the historical development and legal framework of the U.S. labor relations system. This chapter examines the strategies and organizational structures used by labor unions and employers to achieve efficiency and/or equity and/or voice. The extent to which these strategies and structures succeed depends on the constraints of the employment environment, so the employment environment is also briefly discussed here.
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5-2
Compare the traditional U.S. union strategies and their alternatives
Understand the organizational structure of unions and the labor movement in the United States
Discuss the range of possible management strategies toward labor unions and how they relate to human resource strategies and business strategies
Analyze how the labor relations environment influences and constrains labor relations outcomes
Learning Objectives

The learning objectives of chapter 5 are
1. Compare the traditional U.S. union strategies (especially business unionism, job control unionism, and the servicing model) and their alternatives (especially social unionism, employee empowerment unionism, and the organizing model).
2. Understand the organizational structure of unions and the labor movement in the United States.
3. Discuss the range of possible management strategies toward labor unions and how they relate to human resource strategies and business strategies.
4. Analyze how the labor relations environment, including ethics, influences and constrains labor relations outcomes.
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Employees and employers have shared interests
Conflict is natural and to be expected, not pathological and to be suppressed
Labor unions and employers design strategies and build organizational structures to pursue their objectives
Introduction

Employees and employers have shared interests
Conflict is natural and to be expected, not pathological and to be suppressed
Labor unions and employers design strategies and build organizational structures to pursue their objectives
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5-4
Equity is achieved through:
Generous wage and benefit packages
Seniority-based layoff and promotion procedures
Restrictions on discipline and discharge for just cause only
Due process protections in the grievance procedure
Labor Union Strategies

In the second half of the 20th century, U.S. labor unions primarily followed strategies that comprises of a business unionism philosophy and a servicing model of delivery that are operationalized through job control unionism and industrial unions
Equity is achieved through
generous wage and benefit packages,
seniority-based layoff and promotion procedures,
restrictions on discipline and discharge for just cause only, and
due process protections in the grievance procedure.
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5-5
Voice is achieved through:
representation at the bargaining table and in the grievance procedure.
Collective bargaining is institutionalized, and the union contract becomes the “workplace rule of law.”
Labor Union Strategies

Voice is achieved through representation at the bargaining table and in the grievance procedure.
Collective bargaining is institutionalized, and the union contract becomes the “workplace rule of law.”
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The workplace focus of the business unionism philosophy
Labor and management have experimented with different ways of moving away from the servicing model to an organizing model
Some of these alternatives to job control unionism can be loosely grouped together as employee empowerment unionism
Labor Union Strategies

The workplace focus of the business unionism philosophy
Labor and management have experimented with different ways of moving away from the servicing model to an organizing model
Some of these alternatives to job control unionism can be loosely grouped together as employee empowerment unionism
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5-7
U.S. labor unions have traditionally embraced a business unionism philosophy
The key to achieving equity and voice is collective bargaining in the workplace
This way unions win wage gains, benefits, grievance procedures, and protective work rules
This philosophy accepts the legitimacy of capitalism and the need for employers to make a profit
Labor Union Strategies

U.S. labor unions have traditionally embraced a business unionism philosophy
The key to achieving equity and voice is collective bargaining in the workplace
This way unions win wage gains, benefits, grievance procedures, and protective work rules
This philosophy accepts the legitimacy of capitalism and the need for employers to make a profit
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Social unionism
Sees labor unions as more than workplace mechanisms for winning economic gains;
rather, unions are viewed as an integral participants in a community’s and country’s civic and political activities;
the scope of representation is the broader social and political arena
The pursuit of equity and voice extends to broader concerns of social justice throughout society
Labor Union Strategies

The workplace scope of representation common in U.S. labor relations contrasts with the social unionism philosophy that is frequently observed in Europe.
Adherents to a social unionism philosophy see labor unions as more than workplace mechanisms for winning economic gains; rather, unions are viewed as an integral participants in a community’s and country’s civic and political activities; the scope of representation is the broader social and political arena.
The pursuit of equity and voice extends to broader concerns of social justice throughout society
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5-9
Social movement unionism, in contrast to social unionism, embraces labor unions as part of a broader social movement of community, social, and political activist groups that relies on active grassroots participation and mobilization.
Social movement unionism is often advocated as a basis for revitalizing the labor movement because rank-and-file activism can provide the means to increase organizing.
Employment relationship is characterized by deep sociopolitical class conflict rather than economic conflicts that can be mediated by workplace
Labor Union Strategies

Social movement unionism, in contrast to social unionism, embraces labor unions as part of a broader social movement of community, social, and political activist groups that relies on active grassroots participation and mobilization.
Social movement unionism in the United States is often advocated as a basis for revitalizing the labor movement because rank-and-file activism can provide the means to increase organizing, especially among traditionally overlooked groups such as immigrant workers, and to resist management demands for concessions.
The sociopolitical activism of social movement unionism is rooted in a belief that the employment relationship is characterized by deep sociopolitical class conflict rather than economic conflicts that can be mediated by workplace
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Table 5.1 – Traditional Union Strategies and 21st Century Alternatives

Table 5.1 – listed the key differences between business unionism and social unionism.
Business unionism involves strong workplace unions, collective bargaining is the key in business unionism, business unionism accepts capitalist institutions, equity is achieved through workplace union protection and voice is achieved through workplace union representation.
Social unionism involves strong community networks and focuses on workplace, social and political action. Social unionism is critical of status quo. Equity is achieved through social justice. Voice is achieved through political and social movement.
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Business Unionism vs Social Unionism?
Demonstrators march through downtown Los Angeles during a Labor Day protest organized by the SEIU in support of a $15 per hour wage. (Michael Owen Baker / For the Times)

Demonstrators march through downtown Los Angeles during a Labor Day protest organized by the SEIU in support of a $15 per hour wage.
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