HRM gaining a competitive advantage chapter 014 3rd ed

Part V

Special Topics in
Human Resources
Standard Slide Sample

Chapter 14
Collective Bargaining and Labor Relations
Chapter 15
Managing Human Resources Globally
Chapter 16
Strategically Managing the HR Function

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14
Chapter

Collective Bargaining
and Labor Relations
Objectives

• Describe what is meant by collective bargaining and labor
relations.
• Identify the labor relations goals of management, labor
unions, and society.
• Explain the legal environment’s impact on labor relations.
• Describe the major labor management interactions:

organizing, contract negotiations, and contract
administration.
• Describe the new, less adversarial approaches to labor
management relations.
• Explain how changes in competitive challenges are
influencing labor-management interactions.
• Explain how labor relations in the public sector differ from
labor relations in the private sector.
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14-2

Labor Relations Framework
CompetitiveChallenges
Challenges
Competitive

Goals
Goals

society
--society
management
--management
employeesand
andunion
union

--employees

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Labor Relations Framework

14-3

CompetitiveChallenges
Challenges
Competitive

Goals
Goals

society
--society
management
--management
employeesand
andunion
union
--employees

Union Structure
& Administration

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14-4

Union Structure, Administration,
and Membership
National and
and International
International Unions
Unions
National
Local Unions
Unions
 Local
AFL-CIO
 AFL-CIO


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Union Security

14-5




Unionstypically
typicallyplace
placeaahigh
high priority
priorityon
on negotiating
negotiating
Unions
twocontract
contractprovisions
provisionsthat
thatare
arecritical
critical to
toits
itssecurity
security
two
or viability:
viability:
or
check-offprovision
provision
AAcheck-off
Unionmembership
membershipor
orcontributions

contributions
Union
closedshop
shop
aaclosed
unionshop
shop
 aaunion
anagency
agencyshop
shop
 an


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Decline in Union Membership

14-6












Structuralchanges
changes in
in economy
economy
Structural
servicesector
sectorgrowth
growth
 service
Increasedemployer
employer resistance
resistance
Increased
globalcompetition
competition
 global
Substitutionswith
with HRM
HRM
Substitutions
concernfor
foremployees,
employees,flexibility
flexibility
 concern
Replacedby

by government
governmentregulation,
regulation, laws
laws
Replaced
EEOand
andother
otherregulations
regulationsoffer
offerprotection
protection
 EEO
Worker views
views
Worker
Unionactions
actions
Union

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Labor Relations Framework

14-7

CompetitiveChallenges
Challenges

Competitive

Goals
Goals
society
--society
management
--management
employeeand
andunion
union
--employee

UnionMembership
Membership
Union
BargainingPower
Power
&&Bargaining

Union Structure
& Administration

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Legal Framework

14-8



WagnerAct
Act (NLRA)
(NLRA)1935
1935
Wagner
––



Employer unfair
unfairlabor
laborpractices
practices
Employer
otherunion-related
union-relatedactivity
activity
 other
unionorganizing
organizing
 union
joiningaaunion
union
 joining
goingon
onstrike

strike
 going

TaftHartley
HartleyAct
Act(1947)
(1947)&& Landrum-Griffin
Landrum-GriffinAct
Act
Taft
(1959)
(1959)
––

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Union unfair
unfairlabor
laborpractices
practices
Union
right-to-worklaws
laws
 right-to-work
allowmembers
membersto
toexercise
exercisetheir
theirrights
rights

 allow
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14-9

Labor Relations Framework
Competitive Challenges
Challenges
Competitive

Goals
Goals
society
--society
management
--management
employeesand
and
--employees
union
union
Union Structure
& Administration

Irwin/McGraw-Hill

UnionMembership
Membership
Union

BargainingPower
Power
&&Bargaining

Union&&
Union
Management
Management
Interactions
Interactions
organizing
--organizing
negotiating
--negotiating
administering
--administering
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14-10

Union - Management Interaction:
The Organizing Process
Why employees
employees join
join unions
unions
Why
Process && legal
legal framework

framework
 Process
Representation elections
elections
 Representation
management tactics
tactics
 management
union tactics
tactics
 union


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14-11

Union - Management Interaction:
Contract Negotiation Process
Distributive bargaining
bargaining (win-lose)
(win-lose)
Distributive
Integrative bargaining
bargaining (win-win)
(win-win)
 Integrative

Management’s preparation
preparation
 Management’s
Stages and
and tactics
tactics
 Stages


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Factors Influencing Management’s
Willingness to Take a Strike

14-12

Product Demand
Demand is
is strong
strong
Product
Product Perishability
Perishability is
is high
high
 Product
Capital intensive

intensive
 Capital
Replacement workers
workers readily
readily available
available
 Replacement
Multiple production
production sites
sites
 Multiple
Facilities are
are not
not very
very integrated
integrated
 Facilities
Lack of
of product
product substitutes
substitutes
 Lack


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14-13





Impasse-Resolution procedures:
Strike Alternatives

Mediation
Arbitration
Grievance Procedures

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14-14

Union - Management Interaction:
Contract Administration
Typical Steps in a Grievance Procedure
11
22

33

44

Discuss grievance

grievance with
with supervisor.
supervisor.
Discuss
Grievance is
is put
put in
in writing
writing to
to higher
higher level
level
Grievance
manager. Steward
Steward and
and management
management
manager.
representative meet.
meet.
representative
Appeal to
to top
top level
level // labor
labor relations
relations staff.
staff.
Appeal
Decision is

is put
put in
in writing.
writing.
Decision
Arbitration for
for binding
binding decision.
decision.
Arbitration

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14-15

Contributions to Organizational Effectiveness of
Transformational Approaches to Labor Relations

Dimension

Pattern
Traditional Transformational

Conflict resolution
Frequency of conflicts
Speed of conflict resolution
Informal grievance resolution

Third & fourth-step grievances

High
Slow
Low
High

Low
Fast
High
Low

Low
Low

High
High

Low
Low
Low
Low

High
High
High
High

Shop-floor cooperation
Formal problem-solving groups

Informal problem-solving activity

Worker autonomy & feedback
Formal autonomous work groups
Informal worker autonomous activity
Worker-initiated changes in work
Feedback on cost, quality & schedule

Source: Adapted from J. Cutcher-Gershenfeld, “The Impact of Economic Performance of a Transformation
Irwin/McGraw-Hill
in Workplace Relations,” Industrial and Labor Relations Review 44 (1991): 241-260.

© The McGraw-Hill Companies, Inc., 2000


14-16

Labor Relations Framework
CompetitiveChallenges
Challenges
Competitive

Goals
Goals
society
--society
management
--management
employeesand
and

--employees
union
union
Union Structure
& Administration

Irwin/McGraw-Hill

UnionMembership
Membership
Union
BargainingPower
Power
&&Bargaining

Union&&
Union
Management
Management
Interactions
Interactions
organizing
--organizing
negotiating
--negotiating
administering
--administering

Goal Attainment
- employees &

unions
- management
- society
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14-17

Measuring Effectiveness:
Labor Relations Outcomes






Irwin/McGraw-Hill

Strikes
Wages and Benefits
Productivity
Profits and Stock
Performance

© The McGraw-Hill Companies, Inc., 2000