Labor-Management Relations… …Back to the Future? Reno, Nevada October 27, 2010 John R. Obst Vice President Nation

1. Labor-Management Relations… …Back to the Future? Reno, Nevada October 27, 2010 John R. Obst Vice President National Federation of Federal Employees

2. Where we’re headed this morning: • Some Neuroscience • A Little History • Employee Surveys, Surveys, Surveys, Surveys …. All Leading to “The Challenge”

3. “I love to learn, but I hate to be taught.” -Winston Churchill

4. Synonyms of Teach Coach, inform, enlighten, discipline, drill, school, indoctrinate. Many see being taught as someone trying to change them.

5. “I love to learn, but I hate to be taught.” Being changed by others is usually perceived as a threat. - David Rock (Your Brain at Work)

6. Self-directed neuroplasticity is the best way to learn… and to change. - David Rock

7. Neuroplasticity means old(er) dogs can learn new tricks. Neuroplasticity: The brain's ability to reorganize itself by forming new neural connections throughout life. Neuroplasticity allows the neurons (nerve cells) in the brain to compensate for injury and disease and to adjust their activities in response to new situations.

8. Count every ' F ' in the following text: FINISHED FILES ARE THE RE  SULT OF YEARS OF SCIENTI  FIC STUDY COMBINED WITH  THE EXPERIENCE OF YEARS…

9. How many did you find? 3 (the most frequent answer) 4 (the second most frequent answer) 6 (the correct answer)

10. Count every ' F ' in the following text: FINISHED FILES ARE THE RE SULT OF YEARS OF SCIENTI FIC STUDY COMBINED WITH THE EXPERIENCE OF YEARS… SIX F’s

11. Our brains not only do things for us…. ….they do things to us. For most of us, our brains – even though instructed to count ALL the f’s – missed those in “of” because our brains decided the word “of” simply wasn’t important.

12. An oh-so-meaningful Bumper Sticker: “Don’t believe what you think.”

13. A Little Labor History…. What were things like in the past? • As “recently” as the late 19th Century, federal working conditions were extremely unhealthy, dangerous, and dismal. • Buildings were dank, dark, crowded, and unventilated. • Typhoid and other diseases from unsanitary environments took their toll. • Numerous deaths and injuries occurred in the workplace.

14. History of federal employment… • Pay was poor. • Federal employees were required to work up to 18 hrs/day without overtime pay. • Employees had to work Saturdays and every other Sunday without additional compensation.

15. Finally, federal employees banded together to address their concerns. But, the federal government fought to stop unionization: Employees were told that Unions weren’t for them, that federal employees were: - ”professional civil servants” and “white collar government officials;” – that they were above the mere laborers who belonged to Unions; Mgmt said it would be demeaning for federal employees to join a Union.

16. Anti-Union action by government: • In 1895, the Postmaster General forbid postal employees from talking to Senators and Legislators about pay, benefits, and working conditions. • If they did, the penalty was REMOVAL.

17. But the labor movement continued: • In 1900, the first federal local (8703) affiliated with the American Federation of Labor (Chicago postal clerks). • The fight was on for 8 hour days, better pay, and safe working conditions.

18. And the government fought back: • In 1902, President Teddy Roosevelt signed an Executive Order denying basic constitutional rights to federal employees. • This E.O. forbid federal employees from talking to Congress about higher wages and forbid employees to try to influence any legislation. (Penalty was REMOVAL). • In 1909, President Taft forbid workers from answering any questions posed by Congress regarding their working conditions (the “gag rule”).

19. Legislative Advances Backed by Unions: • 1912: Lloyd-LaFollette Act rescinded previous gag rules; establishes the rights of federal workers to form Unions. • 1916: First Federal Employees Compensation Act. • 1920: Civil Service Retirement Act (retire at 65). • 1935: Wagner Act established collective bargaining for most workers… …BUT, federal employees were EXCLUDED.

20. 1962: Kennedy signs E.O. 10988. - gave Unions the right to negotiate with management concerning working conditions, promotion standards, grievance procedures, safety and other matters, BUT not over pay and benefits. - However, no binding arbitration or impasse procedures; mgmt had the final word.

21. Through the power of organizing, Federal Unions were responsible for improved working conditions and benefits and the legal right to collective bargaining – often by working directly with Presidential Administrations and Congress. • Congress specifically declared labor organizations and collective bargaining in the federal government to be "in the public interest”.

22. Civil Service Reform Act of 1978 • Also known as the Federal Labor Relations Statute (codified as Title 5 of the United States Code Chapter 71). • The Labor Statute legally defined employee, union, and management rights. • The Labor Statute authorized Collective Bargaining Agreements and required grievance and arbitration processes.* • The Labor Statute established an impasse procedure.* *With the final decision made by a third party.

23. The Labor Statute provided the legal basis for employees to have a voice in their workplace. • However, in some federal agencies labor relations were often strained, while in many others labor relations were, at best, acrimonious. • Labor relations could, perhaps, be described as a power struggle – aka the Top Dog (or Alpha Dog) syndrome.

24. Clinton Partnership Executive Order The involvement of Federal Government employees and their union representatives is essential to achieving the National Performance Review’s Government reform objectives. Only by changing the nature of Federal labor management relations so that managers, employees, and employees’ elected union representatives serve as partners will it be possible to design and implement comprehensive changes necessary to reform Government. E.O. 12871 (1993)

25. Many saw this E.O. as the future of labor relations. In promoting Partnership and improved labor relations, the Clinton Administration was a champion for: 1.) Pre-Decisional Involvement, 2.) Interest-Based Problem Solving, and 3.) Consensus Decision-Making. These were major steps in increasing employee involvement in workplace decisions.

26. 1.) Pre-Decisional Involvement Joseph Swerdzewski, past FLRA General Counsel: • Predecisonal-Involvement - “those activities where employees through their elected exclusive representative are afforded by agency management the opportunity to shape decisions in the workplace which impact on the work the employees perform.” • “The cornerstone of Executive Order 12871.”

27. 2.) Interest-Based Problem Solving Interest-based problem solving focuses on the interests that underlie issues, promotes creativity in proposing solutions, and encourages the use of objective standards in evaluating those solutions. The participants become problem solvers, working together to develop options and solutions that satisfy the interests of all parties.

28. 2.) Interest-Based Problem Solving In English: The focus is on what’s right, not who’s right. While the Interest-Based process is not difficult or complex, the Parties must be trained in its use and application – and share the commitment to use it.

29. 3.) Consensus Decision-Making A group process that not only seeks the agreement of the participants, but also the resolution or mitigation of minority objections. - Wiki The philosophy is: “I can live with this decision,” and “I will support its implementation.”

30. Successful Partnerships had two major obstacles, among others, to overcome. 1. Many managers/supervisors never understood the real value in doing it…and therefore, made no commitment to do it right. 2. Management rights were a sticking point. Particularly 7106 (b)(1) permissive rights. While the E.O. told mgmt “do it”, they didn’t. So that gave the Unions something else to fight over.

31. “Permissive” Management Rights5 U.S.C. 7106(b)(1) • Numbers, types, and grades of employees or positions assigned to any organizational subdivision, work project or tour of duty • Technology, methods and means of performing work. By law, these subjects may be bargained with the Union if the agency so decides.

32. G.W. Bush • January 20, 2001: Inauguration. • February 16, 2001, Friday: Pledges to President Vincente Fox that the U.S. wants to “partner” with Mexico. • February 17, 2001, Saturday: Cancels National Partnership Council, revokes Clinton’s Partnership Executive Order. • February 19, 2001, Monday: Commemorates the deaths of federal employees at the opening of the Oklahoma City Memorial.

33. Top ten list of things that G.W. Bush did to improve labor relations and employee involvement/engagement: 1. 6. 2. 7. 3. 8. 4. 9. 5. 10.

34. Of course, Bush’s Competitive Sourcing initiative did have a GREAT effect on employee morale. But, in the wrong direction.

35. If Bush did away with Partnership, how did it survive in the F.S.? • Foreseeing the Bush anti-employee agenda, and facing an expiring Master Agreement, Chief Mike Dombeck and I, as NFFE-FSC President, signed a contract extending Partnership for three years in the FS (December, 2000). Labor management contracts cannot be overturned by Executive Order (only by law). • When the Master Agreement was renegotiated, the Parties included Partnership!!

36. Which brings us to… Obama’s Executive Order: “Creating Labor-Management Forums To Improve Delivery of Government Services” - December 9, 2009

37. But, before we talk about the Obama E.O., we’re going to “change gears”.

38. What Parents and Schools (hopefully) try to teach: • Don’t be unduly influenced by peers. • Ask questions. • Analyze the facts. • Think! Be aware of consequences. • Do the right thing for the right reasons. • If things change, re-evaluate decisions.

39. What many organizations tell their new (and experienced) employees: • Leave your brain at the doorstep. • We’re paying you to work, not think. • …

40. An aside: Scientific ManagementFrederick Winslow Taylor (1856-1915) • Peter Drucker stated that F.W. Taylor’s effect on the modern world ranked with that of Sigmund Freud and Charles Darwin. • Taylor pioneered time and motion studies. • Taylor applied “scientific management” to human work and acquired an international following and reputation. • Many organizations today are still greatly influenced by “Taylorism”. - Charles S. Jacobs (Management Rewired)

41. Taylorism • Taylor believed that he was the working man’s savior, creating a new age of cooperation between managers and employees. • But Taylor’s approach was to lay out the work for employees and they were required to precisely follow that process. • Samuel Gompers (AFL) said Taylor reduced workers to no more than a cog in a machine. - Charles S. Jacobs

42. Taylorism At one point Taylor said, “I care not a whit for the thinking of the working man.” - Charles S. Jacobs

43. What many organizations tell their employees: • Leave your brain at the doorstep. • We’re paying you to work, not think. • No questions. • Don’t challenge authority.

44. So what is it that employees want? The basics, of course, such as: - meaningful work; - good pay; - safe and healthy workplace; - health insurance; - sick and annual leave; - pleasant working conditions.

45. But, beyond the basics, what else do employees want? Employees want more influence, or say, in workplace decisions. Employees have brains, they want to use them, and be heard. This unsatisfied desire for influence pervades labor-management relations. - Freeman & Rogers (What Workers Want)

46. Percentage of Workers and Their Desire for Influence in Workplace Decisions 63% 35% 1% 1% Don’t Know Keep Same Want More Less - Freeman & Rogers

47. The Bottleneck to Increase Influence: Management Resistance Why don’t workers have the influence they want? Most employees believe that management will not voluntarily give them more voice and representation than they currently have. Most employees believe that management will resist employee attempts to establish the one form of independent workplace organization nominally encouraged by labor law – Unions. - Freeman & Rogers

48. Mgmt’s Willingness to Share Powerand Authority (As Seen By Employees) 32% 31% 13% Excellent Good Fair Poor Failure - Freeman & Rogers

49. Managers verify employee’s beliefs: • Majority of managers said they oppose unionization efforts. • One-third said that it would hurt their advancement if workers unionized. • Three-fourths said they would rather deal with individual employees and only 14% said they prefer dealing with workers as a group. • Fifty-five percent want to maintain the final decision making power in cases of dispute.

50. It is clear from survey results that employees want a say in decisions that affect them in the workplace. What do results from “brain science” tell us?