Mgmt 583

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					Mgmt 583
Chapter 10: Non Wage Issues in
Fall 2008
Non Wage Components of the CBA
    Union security (level of compulsory membership)
     Check off clause
    Individual security/ seniority
    Layoff and rehiring
    Bumping privileges
    Hours and overtime
    Management rights
    No strike/no lockout
    Discipline/discharge
    Contract term/duration
    Contract administration
    Vacations (entitlements, eligibility, etc.)
    Working conditions and workplace safety
    EEO protections
Union Security - Compulsory Union

   Exclusive    Maintenance of
  Bargaining     Membership       Union       Closed
    Rights          Shop          Shop        Shop

Open       Agency      Modified      Preferential
Shop        Shop        Union          Union
                        Shop            Shop
Union Security
   Open Shop - non union
   Exclusive Bargaining Rights
       The union is the certified/recognized bargaining
        agent of the bargaining unit.
       Membership is strictly voluntary.
       Only union members must pay dues.
Union Security
   Agency Shop
       The union is the certified/recognized bargaining
        agent of the bargaining unit.
       Membership is still strictly voluntary.
       Union members must pay dues; nonunion
        members of the BU pay equivalent of dues.
Union Security
   Maintenance of Membership Shop
       The union is the certified/recognized bargaining
        agent of the bargaining unit.
       Membership is voluntary in a limited sense.
       Union members must pay dues; nonunion
        members of the BU pay equivalent of dues.
       However, once a member joins the union they
        must remain a member in good standing as a
        condition of employment
Union Security
   Modified Union Shop
       The union is the certified/recognized bargaining agent of
        the bargaining unit.
       All new hires must join the union old nonunion
        employees may remain non union.
       Union members must pay dues; nonunion members of the
        BU pay equivalent of dues.
       However, once a member joins the union they must
        remain a member in good standing as a condition of
Union Security
   Union Shop
       The union is the certified/recognized bargaining agent of
        the bargaining unit.
       All employees must join the union.
       Union members must pay dues.
       Union membership is a condition of continued
   This is not Closed Shop (one must be a union
    member before applying for the job) which is illegal
    under the LMRA.
Union Security
   Preferential Union Shop
       Applicable only to building & construction trade
        unions (§ 8 (f)).
       Allows temporary (7-day) assignment of
        nonunion workers to the local.
       Temporary members must pay dues.
       Temporary union membership is renewable.
Union Security
   Within these provisions, union and
    management negotiate the time frame under
    which a new hire must bring HR proof of
    joining the union.
       Conventionally 30 to 60 days.
       Sometimes at the conclusion of the probationary
   If the employee fails to do so, management
    must fire the employee or be found guilty of a
Individual Security/ Seniority
   Two types:
       Benefit Seniority - benefit entitlements based on
        seniority (i.e., vacation length).
       Competitive Status Seniority – entitlement to
        bid on promotions, transfers, and avoid layoffs.
   Often defines how seniority will be
    determined :
       Time in the job/position,
       Time in the facility, or
       Time with the company.
Individual Security/ Seniority
   Superseniority – an artificial employment
    seniority system that considers factors over
    and above length of service. It is used as a
    means of retaining key employees who might
    otherwise be laid off.
       Usually the union negotiates superseniority for
        shop stewards and its Executive Council.
       Superseniority is assigned to the office, not to the
       If unions can have it, so can management.
Competitive Status Seniority
   The formula for layoffs is usually LIFO.
   Recall/rehiring is usually based on seniority
    as well.
   May contain bumping privileges.
       More senior employees may take the positions of
        less senior employees during layoffs or RIFs
        provided they are minimally qualified.
Checkoff Clause
   A.k.a. Dues Checkoff.
       Employer agrees to payroll deduction of BU
        member’s union dues or equivalent.
       The advantage is to the union.
           Without it, shop stewards must collect dues.
           Members can be disciplined by the union for being
            late in paying dues.
           The union is guaranteed a uniform and consistent cash
Hours and Overtime
   Often establishes work schedules and
    determines when the work week begins and
   Establishes entitlement and/or restrictions for
       Bumping privileges
       Right to refusal.
       When overtime occurs (anything in excess of
        eight hours in a 24 consecutive hour period, e.g.).
Management Prerogatives
   The following rights should be expressly reserved in
    the the Management Rights clause of the CBA:
     The right to direct work
     The right to promulgate work rules
     The right to establish company policies (i.e.,
       safety, attendance, pilferage, good order, etc.)
     The right to establish production levels
     The right to discipline employees
     The right to establish employee performance
       standards and conduct performance appraisal
Management Prerogatives
   There should be a general management rights
    statement in the Management Rights clause:
       Those rights not expressly contracted away by a
        specific provision of the bargaining agreement are
        retained by management.
Management Rights
   If there are foreseeable circumstances in
    which supervisory personnel may be needed
    to perform production work, include it in
    Management Rights.
   Caveat: Unions often insert provisions in
    CBAs that prevent supervisors from
    performing any BU work at any time.
Management Rights
   In the event that there is a conflict between a
    provision in the Management Rights
    Provision and another clause in the CBA,
    there is a potential grievance (and arbitration)
Other Clauses Conflicting with
Management Rights
   Other clauses in the CBA that may conflict
    with, hence diminish management rights:
       Restrictions on the assignment of personnel
           Limitations on assignments outside a worker’s job
           Limitations on assignments outside a worker’s job
       Restrictions on who can work overtime
           Voluntary v. involuntary overtime
           Bumping privileges
           Limitations on total hours per overtime period
Other Clauses Conflicting with
Management Rights
     Restrictions on promotion policies
         Seniority considerations
         Affirmative action
         Challenges/appeals
     Restrictions on pay raises
         Seniority considerations
         Incentives, differentials
     Restrictions on hiring
         Job posting
Other Clauses Conflicting with
Management Rights
     Restrictions on discipline
     Restrictions on outsourcing
         Subcontracting
         Temporary employees
         Part-time employees
     Restrictions work scheduling
         Time-off
         Hours of work
Management Rights
   Why clearly delineated management rights
    are important:
       They reduce exposure to unfair labor practice
       They reduce exposure to meritorious
       They reduce exposure to arbitration.
       Typical Management Rights
   The Company acknowledges that it has no natural rights over
    individual persons within the organization, but it reserves
    rights to maintain a company those physical assets, property,
    and rights that are real and lawfully enforceable.
   The Company reserves the exclusive right and responsibility
    to manage the business and to direct the employees who may
    be subject to this Agreement.
   Management reserves, among the other customary rights of
    management, the sole and exclusive discretion to hire
    qualified employees and to transfer, assign, deploy and direct
    their work.
       Typical Management Rights
   The Company further reserves the right to evaluate
    the performance of employees to determine their
    qualification and fitness for continued duty or
    employment; the right to relieve them from duty; the
    right to suspend or discharge them for a lawful
    cause; and the right to layoff employees because of
    lack of work or for other lawful reasons.
   This provision may only be limited by the
    company’s obligation to bargain in good faith about
    matters over which it is lawfully required to bargain
No Strike/No Lockout
   For the duration of the contract both parties
    agree to resolve any disagreements arising
    from the contract according to the contraction
    administration provisions.
       Management cannot lockout the union.
       The union cannot strike (other than a ULP Strike,
        any strike would become a Wildcat Strike).
       This why unions cannot strike during negotiations
        until the contract expires.
Discipline and Discharge
   Most CBAs state that employees may be
    discharged only for just cause.
   Contains the provisions for due process
   May establish progressive discipline
   Note that union employees enjoy far more
    procedural rights than nonunion counterparts.
   May specify what actions are subject to
Discipline and Discharge
   ULPs claims may arise when:
       Management does not consistently impose
       When procedural requirements are not
        meticulously met.
Reopener Clause
   Provisions in the CBA specifying the
    conditions under which one or either party can
    reopen for renegotiation the agreement or
    designated parts of the agreement.
       Some CBAs contain mutual consent reopeners.
       May be triggered by certain events which compel
        the other party to renegotiate (particular level of
        the CPI, e.g.)
Zipper Clause
   A zipper clause may constitute a waiver of the right
    to bargain over issues negotiated in or outside the
    terms of a contract until its expiration.
   During the life of the contact, the issue may not be
   "[t]he Parties agree that all negotiable items have
    been discussed during the negotiations leading to
    this Agreement, and, therefore, agree that
    negotiations will not be reopened on any items,
    whether contained herein or not, during the life of
    this Agreement, unless by mutual agreement of both
Contract Term/Duration
   By convention most are three years.
       Usually state in specific dates (i.e., January 1,
        2008to December 30, 2011).
   If a no strike no lockout clause is in place, no
    economic strike or lockout can occur until
    after the CBA expires.
Contract Administration
   Contains provisions for handling grievances
    (how disagreements over the contract’s
    interpretation will be resolved).
   Establishes procedures for filing a grievance.
       Time frames
       Points of contact
       Requirements for formalization
   Often establishes procedures for taking issues
    to rights arbitration.
Effect of Unions on Non Wage
   Hiring
       Unions, through the CBA, exert influence on how
        internal recruiting is conducted.
   Promotions
       Unions use seniority to dilute the use of
        performance appraisal in making such decisions.
   Retirement
       Earlier eligibility