5. Role of Unions
In the U.S., most workers act as individuals to select
jobs that are acceptable to them and to negotiate pay,
benefits, flexible hours, and other work conditions.
At times, workers have believed their needs and
interests do not receive enough consideration from
management.
One response by workers is to act collectively by
forming and joining labor unions.
6. Unions and Labor
Relations Unions – organizations
formed for the purpose
of representing their
members’ interests in
dealing with employers.
Labor relations – field
that emphasizes skills
managers and union
leaders can use to
minimize costly forms of
conflict (such as strikes)
and seek win-win
solutions to
disagreements.
7. Labor relations involves three levels
of decisions:
1. Labor relations strategy
2. Negotiating contracts
3. Administering contracts
12. NLRB Process
Union form for reducing unfair labor practice.
Exclusive bargaining representative or Duty of fair
representative.
Organizing committee is formed among the workers early in
the process.
Voluntary reorganization.
Certification.
Bargaining units.
Community of interest.
15. Petition for an election
NLRB determines bargaining unit
Campaign
NLRB holds election
Union gets <50% Union gets>50%
Organizing barred
for one year
Union certified
bargaining begins
17. The certification of a union as an exclusive
bargaining representative simultaneously triggers
the employee’s right and the employers duty to
bargain collectively over rates of pay, wages, hours
of employment, or other conditions of
employment
WHAT UNIONS DO WHEN THEY
ARE FORMED:Collective
bargaining
18. Pattern Bargaining:Historically pattern bargaining
has had the effect of taking such factors as wges
out of the competitive matrixfor employers in the
same industry.
Multiemployer Bargaining: A higher level of
centralization occurs when several employers
combine negotiateacommon agreement with a
union.
Structure of bargaining
19. What is the likelihood of reaching a settlement?
Can awarkstoppage be avoided?
Is intervention by third party mediator needed?
If a work stoppage appears likely,how will it be
managed?
Contract Negotiations
20. Distributive Bargaining: This is zero sum
negotiations, in which one party’s gain is other
party’s loss.
Integrative Bargaining: In this situations one
party’s gain is need not translate another party’s
loss. Integrative bargaining can result in
collaborative problem solving in which both
parties come out ahead.
Intraorganizational Bargaining: Intraorganizational
bargaining is the process of resolving differences
among members of the same party.
TYPES OF BARGAINING
25. ECONOMIC ISSUE
The economic matters commonly discussed in negotiations
may be divided two subgroups:
Wages
Benefits
26. NONECONOMIC
ISSUE
A number of issues may arise in the
noneconomic area, including
Work rules
Job security
Quality of Wok Life
Management Rights
Union security
27. Management Rights Clause
Management Rights which, reserves to management certain
decision-making process. For instance, these clauses may give
management alone the right to decide on the types of
products to produce or services to deliver, to supervise
employees, to control production processes.
28. Union security Clause
These arrangements ensure that
nonunion members of bargaining
units will assume at least part of
the cost of union representation.
The union shop Agency shop
30. Labor Strike Activity
Strike means concerted action resulting in a cessation of work, a
refusal to work or to continue to work by employees, or a slow-
down or other concerted activity of employees that is designed to
or does limit production or services, but does not include an act or
omission required for the safety or health of employees, or a
refusal to work.
31. Level of strike activity
Thousands of contract negotiations take place each
year. Historically, most contract negotiations have
resulted in a settlement without strike. The estimate is
that strikes occurs less than 2 or 3 percent of
negotiation. Strikes are more likely to occur in larger
bargaining unit.
32. Major work stoppages in the United
States (2006-2012)*
Period
Number of work
stoppages beginning
period
Numbers of workers
involved
in
(thousands)
Number(thousands)
Work time lose in
(%)
2012 19 148 1131 0.22
2011 19 113 1020 0.16
2010 11 45 302 0.20
2009 5 13 124 0.17
2008 15 72 1954 0.30
2007 21 189 1265 0.18
2006 20 70 2688 0.35
33. Types of strike and rights of strikers
Section 7of the NLRA grants workers a legal right to strike,” to
engage in other concerted activity for the purpose of collective
bargains or mutual aid or protection”. Three types discussed
here the-
Economic strike
Unfair labor practice strikers
Wildcat strike
34. Types of strike and rights of strikers
Economic strike:
An economic strike is an event in which all efforts at producing goods and
services through labor are temporarily shut down.
Unfair labor practice strikers:
Employees who strike to protest an unfair labor practice committed by
their employer are called unfair labor practice strikers.
Wildcat strike:
When employees go on strike without union
authorization, however, their action is called a wildcat strike.
35. Permanent replacements of
workers
Section 7of the NLRA grants workers a legal right to strike
.The NLRA prohibits employers from firing employees who go
on strike. However, an employer may hire replacement
workers if it desires to continue to operate during a strike.
Furthermore, the employer has the right to make these
replacements permanent at any time during the strike. Once
the employer makes the replacements permanent,
employees have no right to return to their jobs if they decide
to end the strike.
37. Preventing Strike
Alternative Dispute Resolution:
1. Mediation:
A neutral third party
Having no binding authority
2. Interest Arbitration:
To make binding decision
Rarely used in private sector
Widely used in public sector
38. Interest Arbitration:
1. Nonbinding:
Sometimes called advisory arbitration or fact
finding
parties are not committed to accepting the
arbitrator’s award
2. Binding:
Both parties are committed to accepting the
arbitrator’s award
39. Binding Arbitration:
1. Conventional Interest Arbitration:
Free to impose whatever settlement he or she
deems reasonable
Producing some unfortunate effect such as
“chilling effect” and “narcotic effect”
2. Final offer arbitration
Forcing labor & management in negotiation
No opportunity to Split the difference
40. Final Offer Arbitration
1. By Issue:
Popular in many state law
One offer on each item
2. By Package:
Accepts the final position of one party or other
Seldom used
41. National Emergency Dispute
Procedures:
Provided by the Taft-Hartley Act
Prohibit the strike for Eighty days
For examples: Coal mining, Atomic energy,
Maritime, and Long shoring industries.
43. Grievance procedure
Administering contract:
Though a contract is made only when the both
parties are agreed together, but there is always
room for disagreement about how the agreement
should be interpreted and applied in specific
cases. If an employee thinks that his or her rights
under the contract have been violated, he may file
a grievance. Actually grievance procedure is a
process of resolving disagreements about contract
administration.
44. Steps in grievance
procedure
There are 5 steps in grievance procedure-
Step 1 :
* Notify to foreman.
* After 2 working days it will be written on a form.
Step 2 :
* Written grievance shall be presented to the
foreman or the general foreman and a copy sent to
the personal office.
* Within 2 working days he will call a meeting.
Step 3 :
* The written grievance shall be presented to the
departmental superintendent.
* Hold a meeting within 5 working days.
45. Step 4 :
* The union committee and an international
representative of the union shall meet with the
Management committee.
Step 5 :
* A representative of the UNION shall meet
within 5 working days with a representative of the
company for the purpose of selecting an arbitrator.
* An arbitrator shall be selected within 5 working
days.
* The decision of the arbitrator shall be final and
binding on all parties.
* Any necessary expense incident to the
arbitration shall be paid jointly by the company and
the UNION.
46. Grievance arbitration
Most grievances are settled through the early
steps, but when no mutually acceptable resolution
is reached between the parties themselves, 96
percent of contracts specify binding grievance
arbitration as the final step. Nearly all contracts
limit the arbitrator to interpreting the existing
contract. The arbitrator is not allowed to change or
amend the contract in any way but merely to
clarify and apply its provisions.
48. THE ROLE OF LABOR RELATION IN
HRM
► Know about labor law and labor relation
► Conversant with labor law
► Experts are responsible for educating management and supervisors
► Relationship between managers & workers
► Ensure that wages are fairly administered & competitive with other
employees
► Voice mechanism
Unions have a role because some degree of conflict is inevitable between workers and management.Labor unions represent worker interests and the collective bargaining process provides a way to manage the conflict.In other words, through systems for hearing complaints and negotiating labor contracts, unions and managers resolve conflicts between employers and employees.
Labor relations strategy – For management, the decision involves whether the organization will work with unions or develop (or maintain) nonunion operations. For unions, the decision involves whether to fight changes in how unions relate to the organization or accept new kinds of labor-management relationships.Negotiating contracts – Contract negotiations in a union setting involve decisions about pay structure, job security, work rules, workplace safety, and many other issues. These decisions affect workers’ and the employers’ situation in terms of the contract.Administering contracts – These decisions involve day-to-day activities in which union members and the organization’s managers may have disagreements. A formal grievance procedure is typically used to resolve these issues.
The AFL-CIO is not a labor union but an association that seeks to advance the shared interests of its member unions at the national level, much as the Chamber of Commerce and the National Association of Manufacturers do for their member employers. 55 national and international unions are affiliated with the AFL-CIO. An important responsibility of the AFL-CIO is to represent labor’s interests in public policy issues such as labor law, economic policy, and occupational safety and health.