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					   Fundamentals of Human
   Resource Management
   Eighth Edition

   DeCenzo and Robbins

   Chapter 14
   Understanding Labor Relations and Collective Bargaining



Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
                                           Introduction
   • A union is an organization of workers, acting
     collectively, seeking to promote and protect its
     mutual interests through collective bargaining.
   Impact of unionization
   • Only about 13% of the private sector work force
     is unionized.
   • Labor contracts typically stipulate:
          –   wages
          –   hours
          –   terms and conditions of employment
          –   limit management‟s discretion
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
             Why Employees Join Unions
• Higher wages and benefits
• Greater job security: Collective bargaining (CB)
  contracts limit management‟s ability to arbitrarily
  hire, promote or fire.
• Influence over work rules: define channels for
  complaints & concerns.
• Compulsory membership
       – Union shops: all employees hired into positions
         covered under the CB agreement must join the union.
       – Agency shops require nonunion employees to pay an
         amount equal to union fees & dues.
       – Open shops allow union membership to be voluntary.
              • Maintenance of membership clauses require union members
                to remain for the duration of the contract.
       – Dues checkoff: employers collect dues from members
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
                                 Labor Legislation
    The Wagner Act
    • aka the National Labor Relations Act
    • “Bill of rights” for unions, guaranteeing right to
      organize and bargain collectively.
    • National Labor Relations Board (NLRB):
           – determines bargaining units
           – conducts elections
           – prevents or corrects unfair labor practices
    • Unfair labor practices include:
           – interfering with an employee‟s rights to bargain
             collectively
           – refusing to bargain collectively with employee
             representatives
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
                                 Labor Legislation
 Taft-Hartley Act
 • aka the Labor-Management Relations Act
 • Specified unfair union labor practices.
        –   coercion of employees to join the union
        –   refusing to bargain collectively
        –   engaging in illegal strikes and boycotts
        –    obtaining compensation for services not performed
 • Prohibited closed shops, secondary boycotts, &
   gave president power to issue a cooling-off period.
 • Created Federal Mediation and Conciliation
   Service (FMCS) to help labor & management
   settle disputes
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
                                 Labor Legislation
                The Railway Labor Act
                • Gave workers in the transportation industry the right
                  to bargain collectively and allowed congressional and
                  presidential intercession in the event of an impasse.
                Landrum-Griffin Act
                • Also known as the Labor and Management Reporting
                  and Disclosure Act.
                • Made union officials accountable for funds, elections
                  & other business & representational matters.
                • Required annual filing of information by unions & by
                  individuals employed by unions.
                • All members must be allowed to vote by secret ballot.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
                                 Labor Legislation

  Executive orders 10988 and 11491
  • Permitted federal employees to join unions &
    established the Federal Labor Relations Council (FLRC).
  Civil Racketeering Influenced and Corrupt
    Organizations Act (RICO) of 1970
  • Prohibits payment & loans in the form of bribery,
    kickbacks or extortion.
  • Used to oust labor officials with organized crime ties
  Civil Service Reform Act of 1978
  • Replaced executive orders as basic law governing labor
    relations for federal employees.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
                     Union Organizing Process:
                       Organizing Campaign




Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
                         Unionizing Employees


• 30% of
  employees
  must sign
  authorization
  cards
  indicating their
  interest in
  having an
  election.

 Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
                        Unionizing Employees
   A representation certification (RC), a secret-ballot
     election is held
          – If accepted by a majority of eligible voting workers, the
            union becomes the workers‟ legal representative.
   • Once the National Labor Relations Board certifies
     a union, each worker must abide by the contract.
   • Most organizations‟ managements will try to
     influence workers against voting for union
     representation.
   Representation Decertification (RD) elections can
     be held to vote unions out.
          – RMs are decertification elections initiated by mgmt.
          – Most agreements bar use of decertification elections
            during the terms of a contract.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
                          Collective Bargaining
  • The negotiation, administration, & interpretation of
    a written agreement between two parties, at least
    one of which represents a group that is acting
    collectively, that covers a specific period of time.
  Objective and Scope of Collective Bargaining
  • Contracts must be acceptable to management,
    union representatives and union membership.
  • 4 issues appear in all labor contracts. (The first 3
    are mandated by the Wagner Act)
         – Wages, hours, terms & conditions of employment, &
           grievance procedures
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
   Collective Bargaining Participants
                          • Management is represented by senior
                            management for industrial relations,
                            corporate executives & company lawyers
                          • In small companies, the president
                            typically represents the company.
                          • Union bargaining teams include an officer
                            of the local union, local shop stewards &
                            representation from the international/
                            national union.
                          • Government watches to ensure rules are
                            followed.
                          • Financial institutions set limits on the cost
                            of the contract
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
          Collective Bargaining Process

                                                                    1. Preparing to negotiate
                                                                    – Fact-gathering: Includes
                                                                      internal information
                                                                      (employee performance
                                                                      records, overtime) &
                                                                      external (data on what
                                                                      similar org‟n‟s are doing &
                                                                      the economy).
                                                                    – Goal-setting: Management
                                                                      decides what it can expect
                                                                      from the negotiation.
                                                                    – Strategy development: This
                                                                      includes assessing the other
                                                                      side‟s power & tactics.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
          Collective Bargaining Process
2. Negotiating at the bargaining table
• Each side begins by publicly demanding more than
  they are willing to accept.
• More realistic assessments & compromises take
  place behind closed doors.
• After oral agreement, a written contract is submitted
  to the union for ratification.
3. Agreement: if parties agree, union takes contract to
  union members
4. Union Ratification: union members must „ratify‟ the
  agreement by voting in favor of it; if not, must go back
  to negotiating until members agree to contract
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
          Collective Bargaining Process
     5. Contract administration: implementation,
       interpretation & monitoring of the negotiated
       contract between labor & management.
            – Information dissemination includes helping staff &
              workers understand the new contract provisions
            – Implementing refers to making the changes to comply
              with contract terms
            – Interpreting the contract & grievance resolution
                   • Grievance procedures are specified in the contract &
                     outline steps for resolving complaints quickly by starting
                     at the lowest level with the immediate supervisor.
                   • Grievance (rights) arbitration: typically the final step in
                     the grievance process
                   • Disputes that cannot be resolved are resolved by an
                     arbitrator, or third party, whose decision is final.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
                          Collective Bargaining
Monitoring
• Both union & management keep track of how
  effective the current contract is & need for changes.
Failure to Reach Agreement: Strikes vs. lockouts
• Economic strikes, wildcat strikes, lockouts
• Impasse-Resolution Techniques: Used when
  labor & management cannot reach agreement.
       – Conciliation & mediation
       – Fact-finding
       – Interest arbitration: a panel of one neutral, one
         management & one union representative who hear
         testimony & render a decision to settle a contract
         negotiation dispute
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
   Critical Issues for Unions Today
 Union membership: Where have the members gone?
 • Union membership in the U.S. reached a high of 36% in the
   early 1940s; there has been a steady decline since then.
 • Reasons for decline in membership include:
    –   new concerns of a growing middle-class
    –   greater diversity of the work force
    –   growth of the service sector
    –   diminished financial resources of unions
    –   anti-union pressures resulting from increased competitiveness
    –   layoffs of large numbers of union workers
    –   hiring of replacement workers for strikers
  • Unions are changing some of their organizing tactics & may
      currently be gaining public support.
  • They also are placing more emphasis on the service sector.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
        Critical Issues for Unions Today
 Labor-Management Cooperation
 • unions recognize they may benefit by cooperating w/mgmt
 Public-Sector Unionization
 • Gov‟t workers‟ membership ↑ from 11% (1970) to 38%
   2002.
 • Public sector labor relations differ from private sector labor
   relations.
 • Sunshine laws in some states mandate that labor-
   management negotiations be open to the public.
 Unionizing the Nontraditional Employee
 • New targets for unions incl service, government & mgmt
 • Poorer work situations (restructuring, layoffs) may
   stimulate interest in unions
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
            International Labor Relations
  Differing Perspectives Toward Labor Relations
  • Countries differ in their labor relations histories,
    government involvement, & public acceptance of
    labor unions.
  • The labor relations function for international
    companies is more likely to be centralized with the
    parent company when domestic sales are larger
    than those overseas.
  The European Community
  • Brings together many labor relations systems
  • Countries wishing to do business in Europe must
    keep up with changing labor legislation.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

				
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