Northern Arizona University
College of Business Administration

MGT 310--Human Resource Management

Ch 14: Labor Relations

• Government regulations

  • Test Your Know-How  (HRM 1, p 595)

  • Railway Labor Act (1926)--to avoid service interruptions

  • Norris-LaGardia Act (1932)--restricts ability of employers to obtain an injunction forbidding a union from engaging in peaceful picketing, boycotts, or various striking activities; promotes collective bargaining and encourages formation of labor unions

  • Wagner Act (1935)--or National Labor Relations Act

    • Employees have the right to self-organize, bargain collectively, and right to refrain from such activities

    • National Labor Relations Board

      • Hold secret-ballot elections for union representation

      • Prevent or remedy unfair labor practices

    • Unfair labor practices

      • Interfering with, restraining, or coercing employees in the exercise of their rights

      • Dominating or interfering with the formation or administration of any labor organization, or contributing financial or other support to it

      • Discriminating in regard to hiring or tenure of employment or any term or condition of employment so as to encourage or discourage membership

      • Discharging or otherwise discriminating against employees because they file charges or give testimony

      • Refusing to bargain collectively

      • Most cases involve illegal discharge under the Act

  • Taft-Harley Act (1947)--or Labor-Management Relations Act

    • Unfair union practices

      • Restraint or coercion of employees in the exercise of their rights

      • Restraint or coercion of employers in selection of the parties to bargain on their behalf

      • Persuasion of employers to discriminate against any of their employees

      • Refusal to bargain collectively with an employer

      • Participation in secondary boycotts and jurisdictional disputes

      • Attempt to force recognition from an employer when another union is already the certified representative

      • Charge of excessive initiation fees and dues

      • "Featherbedding" practices that require payment of wages for services not performed

    • Federal Mediation and Conciliation Service

      • To help resolve disputes

      • Neutral party

      • No enforcement powers ("mediation")

      • Voluntary service

    • Presidential authority to override a strike in "national emergency"

      • Workers can be replaced, as in air-traffic controllers strike

  • Landrum-Griffin Act (1959)--or Labor-Management Reporting and Disclosure Act ... the Bill of Rights of Union Members

    • Rights

      • Nominate candidates for union office

      • Vote in union elections

      • Attend union meetings

      • Participate in union meetings and vote on union business

      • Examine union accounts and records

      • Bring suit against union officers

• Labor relations process

  • Workers desire representation

    • Why employees unionize

      • Economic needs

      • Dissatisfaction with management practices

      • Social or status needs

    • "Right-to-work" states

      • Choice by state

      • Allows workers who choose not to join the union not to have dues deducted from pay

      • Non right-to work states allow unions to collect dues from non-union workers in a class represented by the union

    • Union shops--labor agreements that require membership as a condition of employment

  • Union begins organizing campaign

    • Employees contact the union organization

    • Initial organizational meeting

    • In-house organizing committee--authorization cards (need 30%+)

    • Election petition

    • NLRB defines a bargaining unit

    • Voting (NLRB)

    • Contract negotiations

  • Union tactics

    • Political involvement--support of public officials

    • Union "salting"--paid union organizers apply for work (cannot discriminate)

    • Organizer training

    • Corporate campaigns--boycotts, editorials, filing charges (OSHA, DOL, NLRB, SEC...)

    • Information technology--email, web

  • Employer tactics

    • Stress favorable employer-employee relationships

    • Point out right not to join

    • Emphasize unfavorable aspects of unions (dues, fees, coercion...)

    • Illegal acts--HRM 3, p 605

  • Impact on managers

    • Challenges to management prerogatives--union participation in decisions, e.g., subcontracting, productivity, job content

    • Loss of supervisory authority--terms of wages, benefits, job security, working hours; just cause

• Labor union structure

  • Craft unions--skilled crafts (carpenters, masons, plumbers)

  • Industrial unions--unskilled or semiskilled workers (autoworkers, steelworkers...)

  • Employee associations--professional and white-collar employees (function as unions)

  • AFL-CIO--federation of national and international unions

    • Lobbying

    • Coordinating organizing efforts

    • Publicizing concerns and benefits of unionization

    • Resolving disputes between unions

  • National unions

    • Training union leaders

    • Legal assistance

    • Leadership in political activity

    • Education and public relations programs

    • Discipline union members

  • Local unions

    • Negotiate contracts

    • Investigate member grievances

    • Union steward--represents union members in relations with supervisors or management (unpaid)

      • Importance of union-management cooperation

  • Public sector

    • No national laws

      • AZ has no laws

    • Public jurisdictions establish wages, benefits, work rules

      • Unions may be denied opportunity to negotiate

      • May have right to arbitration

    • Strikes largely prohibited

      • Public health, safety or welfare

• Bargaining process

  • Preparation--collect data, establish teams,

  • Strategies

    • Likely proposals and responses

    • List of demands and limits of concessions

    • Database of support

    • Contingency plans--strike plans

  • Negotiating

    • Required to bargain in good faith

    • Realistic proposals and counter proposals

    • Duty to bargain

      • Mandatory subjects--pay, wages, hours, other conditions of employment

      • Permissive issues--other related issues that are lawful

      • Illegal subjects--closed shop or compulsory dues

    • Interest-based bargaining--identification and resolution of mutual interests; problem solving; win-win; open strategy

    • Bargaining power--economic, political and social influence

      • Union--right to strike, picket, boycott

      • Management--right to hire replacement workers; lock out workers

    • Resolving deadlocks--mediation (agreements), arbitration (administration of agreements)

• Labor agreement

  • Items in agreements--see HRM 5, p. 620

  • Management rights clause--authority in all matters not covered by agreement or law

  • Union security

    • Compulsory membership--union shop (non right-to-work states may permit)

    • Dues checkoff--withholding due from checks

• Administration of the agreement

  • Grievance procedures--how, steps, timing, representatives (Fig. 14.4, p. 622)

    • Supervisor training

    • Arbitration

      • Fair representation doctrine--unions required to provide legal assistance to members

  • VIDEO: Boston Ballet (10 min)

• Contemporary challenges

  • Foreign competition

  • Outsourcing

  • Technological advances

  • Decreasing membership

    • Decline in manufacturing jobs

    • Targeting low-wage workers and recent immigrants

    • Efforts to organize white-collar workers

  • Employers' focus on maintaining non-union status--see HRM 7, p 628