Mgmt 383

1. Mgmt 383 Chapter 17 Union-Management Relations Spring 2008

2. Why Employees Join Unions • Dissatisfaction with working environment. • Inadequate staffing • Mandatory overtime • Dissatisfaction with compensation. • Benefits. • Non-competitive pay • Dissatisfaction with organization treatment • Concern for job security • Ignore complaints • Dissatisfaction with management style. • Inconsistency in treatment by superiors. • Lack of recognition • Fear or intimidation

3. The State of Unions in America • Types of Unions. • Craft unions - One craft, one union. • Union membership is limited to members of a specific craft (example: IBEW, UBCJA ). • Exercise economic power by controlling the supply of the craft. • Control apprenticeship. • Trace history to the guilds.

4. The State of Unions in America • Types of Unions. • Industrial unions - One industry, one union. • Union membership open to employees of a specific industry (example: UAW, USW). • Exercises economic power only by political fiat. • In recent years, industry designations have become meaningless.

5. Union Structure • Union Structure. • Federation - a group of autonomous national/international unions (AFL-CIO) • National Unions– an organization of local unions. • Local Unions– workers organized around a particular employer or geographic area.

6. Union Structure: Locals Membership Meeting President Vice President Secretary Treasurer Sergeant-at- Arms Stewards

7. The State of Unions in America • Since July 2008 unions account for less than 12.4% of the total work force (public and private). • By 2008, about 7.6% of the private sector was organized (up from 7.5% in 2007). • The number of persons belonging to a union rose by 428,000 in 2008 to 16.1 million. • Unions are now more prevalent in the public-sector (38.7%) than in the private. Source: BLS (2008). Union Members Summary. http://www.bls.gov/news.release/union2.nr0.htm

8. 1935 1945 1955 1965 1975 1985 1995 2007 2008 13.2% 35.5% 33.2% 28.4% 25.5% 18.0% 14.9% 12.1% 12.4% Union Membership 1935-2007

9. France U.S. Japan Germany Canada UK Norway 8.3% 12.4% 19.7% 22.6% 28.4% 29.3% 53.3% Union Membership Worldwide2008

10. Factors Contributing to Union Decline • Geographic changes • Industry has relocated to right-to-work states (the South and Southwest). • Low skilled job have moved to Mexico. • NAFTA has accelerated the movement of low skill jobs from the country.

11. Factors Contributing to Union Decline • Workforce changes • Moving from a manufacturing to a service economy. • More white-collar workers (less likely to organize). • More women (lees likely to join unions). • Private Sector Employers Have Taken Proactive Measures to Avoid Organizing Efforts. • Good wage and benefit programs • Increased emphasis on employee participation.

12. Railway Labor Act (RLA) of 1926 • Gave railway workers the right to organize without interference. • Objectives • Avoid service interruptions • Eliminate restrictions on joining a union • Guarantee workers right to self-organize • Provide for prompt grievance resolution • Enable prompt grievance settlement

13. Norris LaGuardia Act of 1932 • Yellow dog contracts unenforceable in federal courts • More difficult to getfederal injunctions

14. National Labor Code • National Labor Relations Act (Wagner Act) of 1935 • Labor Management Relations Act (Taft-Hartley Act) of 1947 • Labor Management Reporting and Disclosure Act (Landrum-Griffin Act) of 1959

15. National Labor Relations Board • Creates the National Labor Relations Board (NLRB) - § 3 • Enforces the NLRA • Investigates unfair labor practice charges. • Oversees certification elections and the recognition process • Composition: • Five members serve 5-year terms • Appointed by the president • Confirmed by the Senate

16. National Labor Relations Act • Called the Magna Charta of Labor • § 7 Employees Right to Organize • Employees have the right to organize without interference • Employees have the right to bargain collectively • Employees have the right to strike for better conditions • Employees have the right not to organize (Employee Free Choice added in 1947)

17. National Labor Relations Act • § 8(a) Unfair Labor Practices by Management • Interfering with, restraining, or coercing employees in the exercise of their § 7 rights - § 8(a)(1). • Threatening discharge • Spying • Threatening to move the plant (run away plants) • Bribing or extorting employees for their votes • Questioning employees about their votes

18. National Labor Relations Act • § 8(a)(2)Unlawful Domination. Prohibits company unions - Broadly worded: • Interferes with labor organization’s formation • Interferes with labor organization’s administration • Provides financial support to a labor organization • Employee participation programs violate § 8(a)(2) Electromation v. IBT, 309 N.L.R.B. no. 163 (1992) and Dupont v. Chemical Workers Association, 311 N.L.R.B. 88 (1993).

19. National Labor Relations Act • § 8(a)(3) Unlawful Discrimination Based on Union Membership: • Cannot discriminate against union [or nonunion] employees with regard to their conditions of employment • Requires proof of employer’s intent to discourage union membership • Examples: • Discharging pro union employees • Refusing to hire pro union applicants • Constructive discharges • Superseniority to permanent strike replacements

20. National Labor Relations Act • § 8(a)(4) Whistleblowers Clause: • Cannot retaliate against an employee who files an unfair labor practice complaint against the employer.

21. National Labor Relations Act • § 8(a)(5) Obligation to Bargain in Good Faith: • Employer must bargain with the bargaining units recognized/certified bargaining agent • Mandatory Bargaining Issues: • Wages • Hours • Conditions of Employment

22. Three Types of Bargaining Issues • Mandatory – required by law. • Wages • Hours • Conditions of employment • Prohibited – forbidden by law. • Closed shops • Permissive – anything that isn’t mandatory or prohibited. • Employee discounts • Benefits for retirees • Union logos on products

23. Labor Management Relations Act • § 8(b)(1) Employee’s § 7 Rights § 7 • Employee’s Right to Free Choice - § 8(b)(1)(a) • Union cannot interfere with employees § 7 rights. • Examples: • Picket line violence • Threats of violence to nonunion employees • Threaten loss of job to nonunion employees if the union wins certification • Entering into a recognition agreement when the union does not have a majority showing of interest

24. Labor Management Relations Act • Fair Representation - § 8(b)(2) • Unlawful to force any employer to discriminate against non-union m,embers of the bargaining unit. • Demanding different wages or benefits based on union membership. • Failing to submit a grievance based on union membership.

25. Labor Management Relations Act • Bargain in Good Faith - § 8(b)(3) • Unions cannot refuse to collectively bargain with an employer. • No “take or leave it “ultimatums.

26. Labor Management Relations Act • Secondary Boycotts - § 8(b)(4) • Unlawful strikes against neutral third parties. • Forcing an employer to cease doing business with another employer against whom the union is striking

27. Labor Management Relations Act • Excessive Dues & Fees - § 8(b)(5) • Unlawful for the union to charge a fee that the NLRB would consider excessive or discriminatory.

28. Labor Management Relations Act • Anti-Featherbedding Clause - § 8(b)(6) • Featherbedding- payment for services not performed or not to be performed.

29. Labor Management Relations Act • Limitations on Organizational Picketing - § 8(b)(7) • No picketing when a certified bargaining agent is already in place • No picketing within 12 months of the last certification or decertification election.

30. Right-to-Work Laws • Right-to-Work Laws - § 14(b) • Nothing in this Act shall be construed as authoring the execution or application of agreements requiring membership in a labor organization as a condition of employment in any State or Territory in which the execution or application is prohibited by State or Territorial law. • 22 states have passed “right-to-work’ laws.

31. Alabama Arizona Arkansas Florida Georgia Idaho Iowa Kansas Louisiana Mississippi Nebraska Nevada North Carolina North Dakota Oklahoma (2001) South Carolina South Dakota Tennessee Texas Utah Virginia Wyoming Right-to-Work States (22)

32. Continuum of Compulsory Union Membership Maintenance of Membership Shop Exclusive Bargaining Rights Union Shop Closed Shop Open Shop Agency Shop Preferential Union Shop Modified Union Shop Right-to-Work

33. Labor Management Relations Act • National Emergency Dispute Resolution -§§ 206-210 • Must involve an actual or threatened strike or lockout affecting an entire industry, or a substantial part thereof, that if permitted would: • Imperil national health • Imperil national safety

34. Labor Management Relations Act • National Emergency Dispute Resolution Process • President forms a board of inquiry which investigates and reports on the magnitude of the strike or lockout. • President may direct the Attorney General to petition any federal district court for an 80-day injunction

35. Labor Management Relations Act • National Emergency Dispute Resolution Process cont’d • The FMCS will be sent in to attempt mediation • At the end of 60 days the board of inquiry reports any progress to the president. • President may make the report available to the public. • NLRB within the next 15 days makes the employer’s final offer available to each employee for individual balloting.

36. Representation Process Authorization Card Campaign Recognition [50% + 1] Certification [30%] File recognition petition File Certification Petition Consent Election Decree Formal Election Hearing Collective Bargaining Begins Election [Simple Majority of Ballots Cast]

37. Representation Process • Salting - the practice of unions using paid organizers to apply for jobs at a targeted employer for the purpose of infiltrating and organizing other workers. • Permits coverage under Republic Aviation.

38. Change In the Recognition Process • EFCA proposes to change the recognition process by: • Having the NLRB certify any union receiving a showing of interest greater than 50% during the authorization card campaign. • Situations in which the union receives less than a majority showing of interest will be resolved by an secret ballot election. • In effect, all organization efforts begin as a card check.

39. EFCA Representation Process if Showing of Interest is <50% Authorization Card Campaign Certification [30%] File Certification Petition Consent Election Decree Formal Election Hearing Representation Election NLRB Bargaining Order

40. EFCA Representation Process if Showing of Interest is >50% AuthorizationCardCampaign File Certification Petition Formal Election Hearing NLRB Issues Bargaining Order

41. Bargaining Orders • Under the EFCA unions can demand that employers begin CBA negotiation within 10 days of certification.

42. Interest Arbitration for the Private Sector • If an impasse cannot be reovled within 90 days, either party can request mediation from the FMCS. • If mediation fails to resolve the impasse within 30 days, the EFCA provides for binding interest arbitration. • If the contract is decided by arbitration, the bargaining unit does not ratify the CBA.

43. Time frames • 10 days following certification: Bargaining order. • 90 days after impasses: mediation • 30 after mediation fails: interest arbitration.

44. Components of the CBA • Wage Issues • Wage & effort. • Benefits • Premium Pay • Nonwage Issues • Union security/recognition of the union(level of compulsory membership) • Individual security/ seniority • Management rights • Discipline/discharge • Grievance procedure

45. Components of the CBA • Nonwage Issues (continued) • No strike/no lockout • Contract term/duration • Safety • Checkoff clause

46. Five Types of Strikes • Economic • Unfair Labor Practice • Sympathy • Jurisdictional • Wildcat Unlawful

47. Grievance Management • Grievance - any violation of the the collective bargaining agreement. • Interpretation of the CBA. • Unilateral modification of the CBA. • Refusal to abide by its provisions

48. Rights Arbitration • Arbitration - a quasi-judicial process in which parties agree to submit an unresolved dispute to neutral third-party binding settlement. • Rights Arbitration - arises over interpretation of the CBA’s meaning or entitlement to its provisions (post CBA ratification). • Interest Arbitration - during CBA negotiations.