Working with Organized Labor - Unions

Working with Organized Labor – Unions

Prepare a written response to the journal entry writing prompt below. Your written response should demonstrate how you gained further insight about a Human Resource

Management concept, possibly while applying the concept to your personal life experience. Your written response should:
•          be formatted as a one-page, single-spaced, 12-pt font document, with 1-inch margins,
•          include an introductory paragraph and concluding paragraph,
•          contain logical and useful organization of ideas,
•          display correct grammar, mechanics, and punctuation, which includes the use of complete (not fragmented) sentences,
•          contain adequate tie-in to the text,
•          adequately answer the writing prompt, and
•          include student’s name as a header in the top right corner.
Journal Entry Writing Prompt for Module 12: There are times when an occurring labor strike really inconveniences the customer! A few times in my own life include: The

1994-95 Major League Baseball Strike, the 2007 Screenwriter’s Strike, and the New York City Transit strike. I was inconvenienced! I had to find other sources of

sports entertainment, or new forms of transportation, or in the case of the Screenwriter’s strike, had to watch Reality TV!
Tell me how you might feel, as a customer who is inconvenienced by a labor strike. Even though inconvenienced, would you sympathize with one party or the other? What

could you do to help facilitate a resolution?

Working with Organized Labor-Unions
Introduction & Overview
In employee relations, organized labor can be a part of the relationship. Understanding how best to work with unions can be very helpful in achieving positive labor

relations.
While working through Module 12 (Chapter 15 in the textbook), we will take time to learn how unions formed and why employees join unions. We will discuss how various

laws help to regulate labor practices and union elections. Labor relations differ around the world. In this module, we will identify labor relations strategies, and

how to make different decisions based on the organizational strategic goals.
We will also take time to identify the three phases of the labor relations process. We will look closely at how the union grievance procedure works. And, we will

consider the possible ways in which a union can change the way HR is practiced in a firm.
Introduction to Unions
http://www2.ucsc.edu/whorulesamerica/power/history_of_labor_unions.htmlHistory of Unions in America
Here is a very nice history of union in America from an online source.
Unions had no protection in the United States prior to 1935. During this time, the government viewed the employment relationship as private, and believed that both

employee and employers had position of power. So, who needed an alternative structure in a perfect arrangement like that?
However, it became apparent, during and after the Great Depression, that the power equation between employee and employer was not equal. The role of the union was

recognized as a much-needed entity to equalize power in employment relationships. Unions increased in number very rapidly. During this period of time, employers

preferred to have a nonunion workforce and utilized a number of tactics to prevent labor unions from gaining a stronghold up in their American establishments.
Even though Unions saw a significant rise during the 1930s – 1950s, and at one point almost 50% of the workforce was unionized, the unions declined in popularity (and

in necessity) towards the end of the 20th century. Today, in 2014, only about 7% of the privatized workforce is unionized.
What is a Union?
A union is an outside or independent group that brings employees together to have a common voice. With one collectively strong voice, the union can represent

employees’ interests such as wages, work hours and working conditions.
Employees of a company will join unions for three main reasons:
when they are dissatisfied with certain aspects of their jobs,
when they lack the ability to influence management decisions, and/or
when they see the union as a solution to their problems.
The presence of a union increases the managers’ need for HR services in the organization. Bad management is the union’s best ally! HR specialists in labor relations

can help managers develop tactics and strategies to work constructively with unions and its representatives. Negotiation skills are particularly important, as is

interpreting union contracts, and responding quickly to employee grievances.
Some unions familiar to us in America include: the Teamsters, United Auto Workers, United Steel Workers, the AFL-CIO (which is a conglomerate of many smaller unions),

and the American Federation of Teachers. There are many more unions in the United States than this. Here’s a Wikipedia list:

http://en.wikipedia.org/wiki/List_of_trade_unions_in_the_United_States
gislation

Unions have attracted a great deal of Legislative acts throughout the years. Three of the important laws are the Wagner Act, Taft-Hartley Act, and the Landrum-Griffin

Act. These laws regulate labor relations in the private sector only. These laws try to balance employers’ rights to operate their business without interference,

employees’ rights to choose if they want/need a collective voice in employment, and the unions’ rights to organize and become that collective voice where it is needed.
http://www2.ucsc.edu/whorulesamerica/power/history_of_labor_unions.htmlWagner Act Video
Here’s an informative historical video about the Wagner Act and it’s journey to becoming a law.
Wagner Act
The Wagner Act, also known as the National Labor Relations Act, was passed during the Great Depression in 1935. This act was designed to protect employees’ rights to

form and join unions and to engage in activities such as strikes, picketing, and collective bargaining. The Wagner Act also created the National Labor Relations Board

(NLRB), the independent federal agency charged with labor relations oversight.
NLRB Activities
The NLRB certifies elections and investigates unfair labor practice allegations. It can issue cease and desist orders if management interferes in certain ways. The

Wagner Act identified 5 specific illegal labor practices which the NLRB can remedy. They are:
Interfering with, restraining, or coercing employees to keep them from exercising their rights to form unions, bargain collectively, or engage in concerted

activities for mutual protection.
Dominating or interfering with the formation or administration of a union or providing financial support for it.
Discriminating against an employee to discourage union membership. Discrimination can include not hiring a union supporter, or not promoting, firing, or denying a

pay raise to an employee who is a union member or who favors union representation.
Discharging or otherwise discriminating against an employee who has filed charges or given testimony under the act’s provisions.
Refusing to bargain collectively with the union that employees chose to represent them.
he Taft-Hartley Act
Taft-Hartley Act
Here is a small portion of a video about the Taft-Hartley bill, which later became a law.
The Taft-Hartley Act (1947) was designed to limit some of the power that unions acquired under the Wagner Act. It also protects management’s rights and employees’

rights. Although this act basically favored management’s interests, its goals were to adjust the regulation of labor–management relations between all parties to

ensure a level playing field.
In the beginning, the Taft-Hartley Act prohibited six practices, which are listed below and in the following screen. The most controversial of these practices is

mentioned in #5 below, which allowed states to create “right to work” states, while at the same time allowing for “closed shops” in some states.
1. Restraining or coercing employees in the exercise of their rights guaranteed under the act, and/or coercing an employer’s choice of a representative in

collective bargaining.
2. Causing (or attempting to cause) an employer to discriminate against an employee who is not a member of a labor union for any reason other than failure to pay

the union dues and initiation fees uniformly required as a condition of acquiring or retaining membership in the union.
3. Refusing to bargain in good faith with an employer after a majority of the employees in a unit have elected the union as their representative.
4. Asking or requiring its members to boycott products made by a firm engaged in a labor dispute with another union (secondary boycott). However, a union can call

a boycott of products produced by its own firm (primary boycott).
5. Charging employees excessive or discriminatory union dues as a condition of membership in a union under a “union shop clause.” (A union shop clause requires

employees to join the union 30 to 60 days after their date of hire.) Allows states to enact right to work laws, though, which signifies that it could be illegal for

unions to create union shop clauses in union contracts. In other words, employees could work for that employer in those states without being required to join the

union.
6. Causing an employer to pay for services that are not performed. This practice, often called featherbedding, is technically illegal, but the definition of

unnecessary or unperformed work is often murky.
Twelve years after Taft Hartley was passed, the Landrum Griffin Act added item #7 to the list of prohibited practices, indicating that it is illegal for a union to

picket an employer for the purpose of union recognition. This practice is known as Recognitional Picketing.
The Landrum-Griffin Act
http://www.youtube.com/watch?v=4thvTkvbZjULandrum-Griffin Act
Here’s a small video about the Landrum-Griffin Act (1959)
The Landrum-Griffin Act (1959) was enacted to protect union members and their participation in union affairs. It also allows the government, through the Department of

Labor, to regulate union activities.
The Landrum-Griffin Act includes the following key provisions:
Each union must have a bill of rights for union members to ensure minimum standards of internal union democracy.
Each union must adopt a constitution and provide copies of it to the Department of Labor.
Each union must report its financial activities and the financial interests of its leaders to the Department of Labor.
Union elections are regulated by the government, and union members have the right to participate in secret ballot elections.
Union leaders have a fiduciary responsibility to use union money and property for the benefit of the membership and not for their own personal gain. Members can

sue and recover damages from union leaders who fail to exercise their fiduciary responsibilities.
Over the last several decades, union membership has been shrinking. As of 2010, union membership is down to about 12 percent, down from a peak of about 35 percent in

1945. However, unions continue to be an important part of the U.S. labor relations system because they establish wage and benefit patterns that influence nonunion

employers.
Labor Relations Specialists
A Labor Relations Specialist is an employee who is knowledgeable about labor relations and can represent management’s interests to a union. They are often a member of

the HR department and they negotiate labor contracts, resolve grievances, & advise top management on labor strategies. I have not personally held a role like this;

however, some of my former students have performed this type of work!
However, regardless of title, managers (in general) often bear the major responsibility for day-to-day labor–management relations. They do so by influencing the work

environment through standard managerial roles and practices.
They are responsible for implementing agreements, so they need to have a basic understanding of labor laws. In addition, when things go wrong, they are often asked to

serve on grievance committees. Thereby, they have a significant role with labor relations in the organization.
Regarding labor relations in the United States, the dominant players are the Unions (which represent the employees) and the Management (which represents the employer).

The mechanism used to “play the game” is called collective bargaining. The collective bargaining system requires unions and management to negotiate “work rules” for a

specified length of a contract, which is usually two or three years.
In Collective Bargaining, the players are known as parties, and both must show good faith. This happens when both parties are willing to meet and confer with each

other at a reasonable time and place, and both parties are willing to negotiate over wages, hours, and conditions of employment. These are the mandatory bargaining

topics.
abor Relations Specialists
A Labor Relations Specialist is an employee who is knowledgeable about labor relations and can represent management’s interests to a union. They are often a member of

the HR department and they negotiate labor contracts, resolve grievances, & advise top management on labor strategies. I have not personally held a role like this;

The mechanism used to “play the game” is called collective bargaining. The collective bargaining system requires unions and management to negotiate “work rules” for a

other at a reasonable time and place, and both parties are willing to negotiate over wages, hours, and conditions of employment. These are the mandatory bargaining

topics.
Two Strategies
There are two basic strategies with labor relations. They are: Union Acceptance and Union Avoidance.
The Union Acceptance Strategy exists when management chooses to view the union as its employees’ legitimate representative. They accept collective bargaining as an

appropriate mechanism for establishing workplace rules and are likely to be in state of working harmony or labor-management cooperation.
The Union Avoidance Strategy represents a labor relations strategy in which management tries to prevent its employees from joining a union. The approach is likely to

be one of an armed truce or open conflict. There tends to be two types of union avoidance: substitution & suppression.
Union Substitution (aka Proactive HR) exists when management is so responsive to the employees, there is no need for unionization. Union substitution works as a

strategy when job security policies protect the jobs of full-time employees, when promotion and development of employees exist, and when employee input is valued in

management decisions.
Union Suppression exists when management uses hardball tactics to prevent union formation. Sometimes these tactics are outright illegal. Sometimes these tactics are

legal, but very unethical or downright shady. The textbook uses Continental Airlines, the Chicago Tribune, and Walmart as examples on p. 517.
In general, union suppression is an approach that is high-risk, and can easily backfire, causing terrible public relations and even worse employee relations.
hree Steps in Labor Relations
Three steps in theLabor Relations Process are: union organizing, collective bargaining and contract administration.
With Union organizing, employees must show interest in union. A minimum of 30 percent of the employees must sign an authorization card indicating that they desire

union representation.
Then, management must avoid treating employees in way that could be interpreted trying to influence the outcome of the election. The elections are supervised by NLRB,

with a majority vote needed to create bargaining unit. If they don’t get a majority, they must wait 12 months till next election.
The Employee Free Choice Act (EFCA) has been considered by the US Congress. If it passes, it will allow workers to form unions without a secret-ballot election. It

will also allow union organizers to form a union simply by having a majority of employees sign an authorization card.
rgaining Power
http://www.youtube.com/watch?v=5fmY3JV6iNIDistributive Bargaining Approach
Here is a video explaining this bargaining approach.
There are two bargaining types: distributive and integrative.
Distributive bargaining focuses on convincing your counterpart in negotiations that the cost of disagreeing with your terms would be very high.
In the distributive bargaining approach, the “cost of disagreeing” usually is a labor strike. In the United States, a strike can (and will) occur when a labor contract

expires without both sides reaching a new agreement.
http://www.youtube.com/watch?v=rJEOylZCUUsIntegrative Bargaining Approach
Here is a video explaining this bargaining approach.
Integrative bargaining focuses on convincing your counterpart in negotiations that the benefits of agreeing with your terms would be very high.
There are some general guidelines for integrative bargaining, should you use this approach (with union bargaining, or any other type of bargaining).
These guidelines include trying to understand each other’s needs and objectives, creating a free-flow of information, and minimizing differences between you. You also

want to search for solutions that meet all parties’ needs and develop flexible responses to other proposals.
Impass of Bargaining
The role of the mediator is to be a neutral third party that attempts to help the parties in a dispute come to a voluntary agreement. They do not have the power to

impose their ideas for a settlement on the other parties. They are trained in conflict resolution techniques and are sometimes able to improve communication so that

the impasse is resolved.
The Federal Mediation and Conciliation Service (FMCS), established by the Taft-Hartley Act, monitors labor disputes and sometimes mediates disputes. FMCS maintains a

list of impartial mediators and arbitrators who are qualified to assist with contract disputes.
There are some things that cause an impasse in bargaining. They are an economic strike which is a strike that takes place when an agreement is not reached during

collective bargaining. A Wildcat strike is a spontaneous work stoppage that happens under a valid contract. And a lockout occurs when the employer shuts down its

operations before or during a labor dispute.
The last phase of negotiation is contract administration. The grievance procedure is the process to settle disputes and is usually overseen by management and a union

steward who is an advocate for the employee.
Arbitration is the last step in the grievance procedure. The arbitrator is neutral & selected from outside the firm and is compensated by both the union and management

(who split the fee).
There are generally two types of grievances. Contract interpretation is when there is a disagreement on the terms of the contract. Employee discipline is when the

employee disagrees with the discipline procedures or results of the discipline.
e Impact of Unions on Human Resource Management
In the absence of a union, management might develop HRM policies on the basis of efficiency, or perhaps convenience, or even cost-savings. With the presence of the

union, the effect is seen in policies that affect: staffing, employee development, performance appraisals, compensation and benefits, and employee relations.
In fact, most areas of HRM are impacted by the presence of unions. Some that are impacted to a greater extent are staffing where promotions can become seniority-based,

not merit-based. Employee Development is another impacted area as it limits use of performance appraisals as a developmental tool. Unions more interested in training

and development than companies may be.
Compensation with unions can be higher & often with better benefits than non-union shops. Unions prefer across the board increases (e.g. COLAs – cost of living

adjustments) instead of merit based raises.
Finally, in employee relations when unions are present, the union empowers the workers. Workers generally have more rights than the employee handbook provides non-

union workers.
Unions in Other Countries
Where the United States labor relations is primarily based on economics, France tends to be more politically motivated. China’s unions have little power because of the

strength of the government. However, this may be changing after the China Honda plant successfully used a strike to negotiate benefits. In Sweden, the unions are very

actively politically and are motivated by economic growth.
In Germany, unions are basically works councils. These are committees composed of worker representatives & managers who have responsibility for governing the

workplace. They participate in operational decisions (e.g. the allocation of overtime, discipline and discharge of workers, hiring of new workers & training).
In Japan, they have enterprise unions which are labor unions that represents workers in only one large company rather than in a particular industry. This practice

ensures that the union’s loyalty will not be divided among different companies. The enterprise union negotiates with management with an eye on the company’s long-term

prosperity. This labor relations system was long reinforced by large Japanese corporations’ offer of lifelong employment.

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