Human resource 1e by denisi griffin chapter 11

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© 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

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Charlie Cook
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The
The University
University of
of West
West Alabama
Alabama


Learning Objectives

After studying this chapter, you should be able to:

1. Describe the role of labor unions in organizations.
2. Identify and summarize trends in unionization.
3. Discuss the unionization process.
4. Describe the collective-bargaining process.
5. Discuss how labor agreements are negotiated.
6. Describe how impasses get resolved and agreements are
administered.
7. Discuss emerging labor issues in the twenty-first century.

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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.

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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.

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11–4

A Historical Time Line of
Unionization in the United States

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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.
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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.

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11–10


Union Structures
• Local Unions
 Are organized at the level of a single

company, plant, or small geographic region.

• Shop Steward
 Is an elected position in a local union.
 Is a regular employee who functions as a

liaison between union members and
supervisors.

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11–11


The Basic Structure of a Union

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11–12


Trends in
Union
Membership

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11–13


Trends in Union-Management
Relations
• Gradual decline in unionization in the U.S.

Gradual decline in unionization in the U.S.
 Has been accompanied by significant trends

in union-management relations.

• In the automotive industry, unions remain
strong and have large memberships.
 Unions recognize their declining membership,

and now work with management, rather than
against it.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

11–14


Why Employees Unionize
• Employees believe they will be better off
as a result of joining a union.
• Employees unionize when they are
dissatisfied their jobs and they believe that
the union can help make their jobs better.

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11–15


Steps Employees
Use to Form a
Union

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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.

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11–19


The Bargaining Zone

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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.
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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.

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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.

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11–24


Administering Labor Agreements
• Collective Bargaining Contracts
 Define how the provisions of the labor

agreement will be administered and enforced:
Seniority
 Overtime allocations


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11–25