© © 2012 2012 South-Western, South-Western, Cengage Cengage Learning, Learning, Inc Inc All All rights rights reserved reserved Prepared Prepared by by Joseph Joseph B B Mosca, Mosca, Monmouth Monmouth University University and and Marla Marla M M Kameny, Kameny, Baton Baton Rouge Rouge Community Community College College PowerPoint PowerPoint Presentation Presentation Design Design by by Charlie Charlie Cook Cook The The University University of of West West Alabama Alabama Learning Objectives After studying this chapter, you should be able to: Describe the role of labor unions in organizations Identify and summarize trends in unionization Discuss the unionization process Describe the collective-bargaining process Discuss how labor agreements are negotiated Describe how impasses get resolved and agreements are administered Discuss emerging labor issues in the twenty-first century © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–2 Labor Unions’ Role in Organizations • Labor Relations  The process of dealing with employees who are represented by a union • Labor Union  A legally constituted group of individuals working together to achieve shared, jobrelated goals, including higher pay and shorter working hours © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–3 What is Collective Bargaining? The process by which managers and union leaders negotiate acceptable terms and conditions of employment for workers represented by the union © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–4 A Historical Time Line of Unionization in the United States © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–5 Historical Development of Unions • Knights of Labor  Expanded its goals and its membership to include workers in numerous fields rather than a single industry • American Federation of Labor (AFL)  Focused its efforts on improved working conditions and better employment contracts rather than getting involved in legislative and political activities • Congress of Industrial Organizations (CIO)  Early union which focused on organizing employees by industry, regardless of their craft, skills, or occupation © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–6 Beyond the Book: Types of Union-Management Relations  Conflict, each challenges the other  Armed truce, each views the other as antagonistic  Power bargaining, each side tries to gain  Accommodation, each tolerates the other  Cooperation, both work together  Collusion, both cooperate to the point of adversity © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–7 Legal Context of Unions • National Labor Relations Act of 1935  Commonly referred to as the Wagner Act  Granted power to labor unions on a footing more equal with managers in terms of the rights of employees • National Labor Relations Board (NLRB)  Administers most labor laws in the United States © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–8 Legal Context of Unions (cont’d) • The Labor Management Relations Act  Also known as the Taft-Hartley Act (1947)  Was a response to strikes in the years following World War II  Curtailed and limited union power, including closed shop agreements under which only workers who are already union members may be hired by the employer © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–9 Legal Context of Unions (cont’d) • Union Shop Agreement  Requires that nonunion applicants can be hired, but they must join the union within a specified time to keep their jobs • Landrum-Griffin Act (Labor Management Reporting and Disclosure Act) of 1959  Focused on eliminating various unethical, illegal, and undemocratic union practices © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–10 Steps Employees Use to Form a Union © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–16 What Is a Bargaining Unit? • Bargaining Unit  A defined group of employees who are eligible for representation by the union  The union becomes the official bargaining agent for the bargaining unit when it is certified by the NLRB © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–17 The Collective Bargaining Process • How should a union prepare for bargaining?  It should examine the financial health of the employer • Bargaining Items  Mandatory items  Items that must be bargained – Wages, working hours, and benefits benefits  Permissive items  Items that may be included if both parties agree © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–18 Decertification of Unions • For decertification to occur, two conditions must be met:  No labor contract can currently be in force (the previous agreement must have expired)  The union must have served as the official bargaining agent for the employees © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–19 The Bargaining Zone © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–20 When Negotiations Breakdown • Strike  Occurs when employees walk off their jobs and refuse to work • Picketing  Occurs when union workers march at the entrance to the employer’s facility with signs explaining their reasons for striking • Boycott  Occurs when union members agree not to buy products of a targeted employer © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–21 When Negotiations Breakdown (cont’d) • Slowdown Slowdown  Occurs when workers perform their jobs at a much slower pace than normal • Wildcat Strike  Is an unauthorized job action usually undertaken in response to a perceived injustice on the part of management • Lockout  Occurs when an employer denies employees access to the workplace © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–22 Resolving Labor Disputes • Impasse  A situation in which one or both parties believe that an agreement is not imminent • Resolving an Impasse: Mediation  A neutral party (the mediator) listens to and reviews information presented by both sides  The mediator makes recommendations and provides advice to both parties about what should be done © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–23 Resolving Labor Disputes (cont’d) • Arbitration  Both sides agree in advance that they will accept the recommendations made by an independent third party • Final-offer Arbitration  The parties bargain until impasse and then the two parties’ final offers are submitted to the arbitrator © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–24 Administering Labor Agreements • Collective Bargaining Contracts  Define how the provisions of the labor agreement will be administered and enforced: Seniority  Overtime allocations  © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–25 Labor Labor Relations Relations Issues Issues Prison Prison labor labor Contingent Contingent workers workers © 2012 South-Western, Cengage Learning, Inc All rights reserved Living Livingwage wage rates rates Impact Impactof of Technology Technology 11–26 • Both unions and employers are becoming involved in the hiring of prisoners and paying them the minimum wage © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–27 Unions and the Electronic Age • Problems that the internet presents for labor unions:  Computers and technology reduce the number of employees required  Unions have no input when operations move overseas for cheaper labor costs © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–28 How Has Technology Been Positive for Unions • Unions can communicate more easily with members • Prospective members are easily reached in spite of no-solicitation rules © 2012 South-Western, Cengage Learning, Inc All rights reserved 11–29 Trends in Labor Unions Union Union Bargaining Bargaining Goals Goals Increased Increasedjob job security security Restriction Restrictionof of job job movement movement © 2012 South-Western, Cengage Learning, Inc All rights reserved No Nowage wage reductions reductions Improved Improved pensions pensions 11–30 ... rights reserved 11 3 What is Collective Bargaining? The process by which managers and union leaders negotiate acceptable terms and conditions of employment for workers represented by the union ©... South-Western, Cengage Learning, Inc All rights reserved 11 11 The Basic Structure of a Union © 2012 South-Western, Cengage Learning, Inc All rights reserved 11 12 Trends in Union Membership © 2012 South-Western,... representation by the union  The union becomes the official bargaining agent for the bargaining unit when it is certified by the NLRB © 2012 South-Western, Cengage Learning, Inc All rights reserved 11 17