12 collective bargaining and employment · pdf file · 2008-04-1912 collective...

12 Collective Bargaining and Employment Relations

Objectives

At the end of this chapter, students should be able to:

• Define the term unions. • Distinguish between labor-management relations

and individual bargaining. • Describe the factors involved in preparing for

negotiations. • Identify the steps in the collective-bargaining

process. • Explain the various impasse-resolution

techniques. • Describe what is involved in ratifying the

agreement. • Illustrate the steps involved in a grievance

procedure.

q Introduction q Trade Union q Objectives of a Trade Union q Types of Union

q Why Workers Join Unions q Definition of Collective Bargaining q Advantages of Collective Bargaining q Perspectives of Collective Bargaining q Conditions for Successful Bargaining q Negotiations q Ways to Settle Dispute q Union Strategies for Overcoming

Negotiation Breakdowns q Management’s Strategies for Overcoming

Negotiation Breakdown q Collective Agreement q Grievances q Employment Relations in Malaysia q Chapter Summary q Case Study q Exercises

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I N T R O D U C T I O N T O H UM A N R E S O U R C E M A N A G E M E N T

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12.1 INTRODUCTION Union : We propose a 20% rise in salary for all employees. Employer: We are only prepared to increase employees’ salary by 10%.

Figure 12.1 Collective bargaining process The scenario above shows how the unions and employers negotiate in a collective bargaining process.

12.2 TRADE UNION A trade union is an organized group of workers who collectively want to improve the terms and conditions at their workplace via collective bargaining. In Malaysia, trade unions are governed by the Trade Union Act 1959.

Figure 12.2 Members of a trade union

12.2.1 Objectives of a Trade Union The main objectives of a trade union are: a. Collective Bargaining A trade union represents its member to negotiate on higher wages and other terms and conditions of employment with their employers.

Figure 12.2 Negotiating during collective bargaining

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C o l l e c t i v e B a r g a i n i n g A n d Em p l o ym e n t R e l a t i o n s

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b. Safeguard Jobs A union protects the jobs of its members in the following ways: i. ensures that members are not dismissed arbitrarily by employers ii. ensure that displaced members are assigned to other jobs ii. seeking adequate compensation for retrenched workers c. Cooperation with the Employers Unions work closely with employers to solve disputes in a mutually acceptable way. Cooperation is essential to maintain a long-term relationship as it will ensure a win-win position for both parties.

Figure 12.3 Co-operating with employers d. Political Activities Unions can either play a direct or indirect role in politics depending on the country. For example, the Australian Labour Party is an active political player. In other countries, unions play an indirect role by pressuring the government for laws and wage reforms which will be beneficial to employees. Example includes the National Union of Teaching Profession, Malaysia.

Figure 12.4 Examples of labor parties e. Social Activities As governments set up social security or provident funds that provide financial support to employees in times of sickness, retirement, unemployment, retirement and death, many unions presently use their fund to provide recreation activities. For example, the National Union of Bank Employees owns holiday accommodations for members.

12.2.2 Types of Union They are five basic types of unions: craft union, general union, staff union, industry union and house union.

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a. Craft or Occupation Union The members of a craft union comprise workers in the same craft or occupation. It aims to maintain the required standards, apprenticeship and entry qualifications to the trade. The size of these unions is small and members have common expertise and experience. The bargaining power of these unions is high due to limited number of craftsmen. For instance, Kesatuan Pekerja-pekerja Pewter Kraftangan. b. General Union General unions recruit widely and their bargaining power comes from large number of members. For example, Kesatuan Kakitangan Am Kolej Tunku Abdul Rahman and University of Malaya General Staff Union. c. Staff Union The members of a staff union are non-manual workers such as clerks, supervisors and technicians. For instance, University Hospital Staff Union. d. Industry Union The members of an industry union comprise workers in the same industry irregardless of skills, occupations or job requirements. The size of these unions is large, thus, becoming more effective in collective bargaining. Examples include National Union of Hotel, Bar & Restaurant Workers, Peninsula Malaysia and National Union of Bank Employees. e. House Union House union is also called company union or enterprise union. Its members are from the same organization regardless of skills or occupation. It aims to promote employee loyalty and build the relationship between management and the employees. Examples include: Concorde Hotel Employees Union and Kesatuan Pekerja-Pekerja Airod Sdn Bhd.

12.3 WHY WORKERS JOIN UNIONS Individuals join unions for various reasons as shown below:

12.3.1 Higher Wages and Benefits As the union represents lots of workers, it is easier to bargain for higher wages and benefits compared to an individual. In the past, we have seen nurses in western countries go on strike as they wanted higher wages and better working conditions.

Figure 12.5 Demanding higher wages

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12.3.2 Greater Job Security Workers feel more secured with a collective agreement because they cannot be terminated without a valid reason and their unions will ensure that they received fair treatment at the work place.

Figure 12.6 Greater job security

12.3.3 Influence over Work Rules When there is a union, workers have a say in determining their working conditions and also protest unfair conditions through an effective channel.

12.3.4 Compulsory Membership It could be compulsory for workers who fall under a certain category to become union members. For example, if employees do not join the National Union of Banking Employees within six months after entering the industry, the union will not accept their membership at a later date.

12.3.5 Upset with Management Employees who are upset with their supervisors on work related issues such as discipline procedures tend to seek help from unions. It is believed that when employees vote to unionize, it is often a vote against the organization.

Figure 12.8 Upset with Management

Greater job security!

Time to join a union. The company does not have a proper discipline procedure.

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12.3.6 Social Needs As union members, workers get an opportunity to mix with colleagues from other departments or organizations at social events. For example, the National Union of Bank Employees have organized cyclethons, charity luncheons, treasure hunt, dinners, dances and trekking.

Charity luncheon Treasure Hunt Trekking Figure 12.9 Example of unions’ social activities

12.3.7 Upgrading of Skills Training courses are also conducted by unions to upgrade the skills of their members. For example, the National Union of Bank Employees allocates more than 20 per cent of subscription income on educating members.

Figure 12.10 Provide training

12.3.8 Peergroup Pressure Some workers join the union because they are urged to do so by other members of the workgroup. They are constantly reminded by friends and associates.

12.3.9 Self-fulfillment Some workers join the union for their own satisfaction as they are able to serve others through the unions’ activities.

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12.3.10 Opportunity for Leadership Employees who desire to be leaders can satisfy these desires through union membership. They have the chance to work their way up the union’s various levels of leadership.

Figure 12.11 Union leaders

12.4 DEFINITION OF COLLECTIVE BARGAINING Collective bargaining is the process where representatives of management and the union meet to negotiate a labor agreement (Dessler 2006, p.577). If it is a nation-wide or industry-wide negotiation, an employer organization may represent a group of employers and a federation of trade unions may represent several unions. For example, the Malaysian Commercial Banks’ Association representing the various banks will negotiate with National Union of Bank Employees.

12.5 ADVANTAGES OF COLLECTIVE BARGAINING The advantages of collective bargaining are: a. It provides an avenue for the unions and management to discuss and agree on the terms and conditions of employment b. Employers receive the assurance that the agreed terms is valid for a specified period c. Employees accept the collective agreement and know that everyone in the same category receive the same benefits d. Employer has a better understanding about employees’ problems and aspirations e. Union representatives have a better understanding about the environmental factors that affect the organization’s performance

Figure 12.12 Discussing and agreeing on the terms and conditions of employment

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12.6 PERSPECTIVES OF COLLECTIVE BARGAINING Collective bargaining may be viewed from many perspectives: behavioral, economic or legal.

12.6.1 Behavioral Perspective Collective bargaining may be perceived as a balance of power between the employers and the employees (Dessler & Tan 2006, p.399). When a union represents workers, they have access to more information and can act collectively, thus, getting a better deal as compared to an individual. As small employers have limited resources, they also join an employer organization for the same reasons as workers.

Figure 12.13 Balance of power between employer and workers

12.6.2 Economic Perspective The outcome of collective bargaining reflects labor market conditions. Wages and other terms of employment are determined by the demand and supply for labor.

Figure 12.14 Determining the wage rate through the demand and supply curve. DD represents demand curve while SS represents the supply curve. The equilibrium wage is W* which is determined via the intersection between the DD and SS curve.

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12.6.3 Legal Perspective Collective bargaining with the union or workers’ representatives is a legal requirement in many countries. For example, collective bargaining is governed by the Industrial Relations Act 1967.

12.7 CONDITIONS FOR SUCCESSFUL BARGAINING The conditions for successful bargaining are:

12.7.1 Freedom of Association Freedom of association implies that workers and employers are free to form their own associations to represent their own interests. The government has passed laws giving workers the right to form unions in many countries. It is also illegal for employers to interfere with this right. However, this is not the case in Malaysia. Employers have opposed strongly to the unionization of workplaces and the Government has been reluctant to override the opposition.

12.7.2 Stability of the Unions The effectiveness of collective bargaining depends on the stability of the unions. An unstable union characterized by fluctuating membership and poor leadership will have a negative impact on collective bargaining. This is because employers are unsure whether the union is able to honor the agreement.

Figure 12.15 A union leader thinking of ways to bargain successfully in a collective bargaining

12.7.3 Recognition of Union by Employer Collective bargaining can only start when employers recognize that the union represents a specific group of workers. In organizations that have 2 or more in-house unions, the employer may refuse to negotiate until the workers decide on their representation. a. Good Faith Both parties must have good faith when they are making every effort to reach an agreement. Proposals are being matched with counterproposals. If any of the parties insist on their demands, there would be a negotiation breakdown.

Oh! How can we bargain successfully when our membership has been dropping?

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b. Mutual Respect Both parties need to respect one another without resorting to unfair practices such as victimization. If unfair practices are used, it would affect the relationship and create tension and difficulty in the negotiating process. c. Supportive Legal System Most countries have laws to ensure that the collective bargaining process takes place in an orderly manner. They are also provisions in the law to settle disputes. In Malaysia, the Industrial Relations Act 1967 plays this role.

12.8 NEGOTIATIONS Negotiation is the process of discussing a subject matter with the objective of reaching an agreement. The parties to the negotiation are usually representatives from the union and a management team representing the organization. Meanwhile, at national level, negotiation may involve several groups of representatives. For example, the National Labor Advisory Council is represented by the government (Human Resources Ministry), employer organization (Malaysian Employers Federation), and the unions (Malaysian Trade Union Congress and the Congress of Unions of Employees in the Public, Administrative and Civil Services).

Figure 12.16 Negotiation taking place

12.8.1 Steps in Negotiation The process of negotiation involves the following steps: a. Preparing to Negotiate Preparations for the negotiation will start from one to six months before the expiry of the current contract. The three activities involved in this stage are fact gathering, goal setting and strategy development. In fact gathering, the negotiators will collect information on grievance and accident records, employee performance reports, overtime figures, reports on transfers, turnover and absenteeism, statistics on the current economy, economic forecasts for the short and intermediate terms and data on the cost of living and statistics on the labor market and industry labor statistics.

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Economic forecast Absenteeism report Figure 12.17 Data collected The information will help them to know what other similar organizations are negotiating and justify their demands. Bargaining issues can be classified into three categories: i. Mandatory bargaining issues include wages, hours, overtime, severance pay, holidays, vacation, family care, grievance procedures, employee security and other terms and conditions of employment. ii. Permissive bargaining issues can be raised but neither party can insist that they be bargained over. Examples include: health benefits for retired workers or union participation in establishing company-pricing policies. iii. Prohibited bargaining issues are issues that a statutorily outlawed. After gathering all the information and determining the bargaining issues, both parties will individually develop their negotiation strategy taking into account the power of the other side and specific tactics. Both parties must also assess the other side’s power and specific tactics when developing each other’s respective negotiation strategy. b. Negotiating at the Bargaining Table Negotiations are usually held in a neutral site. It is vital that both parties are able to communicate openly to each other. The negotiating process begins with both sides presenting their initial demands. During the presentation, it is important to listen carefully and to take note of the arguments, facts and figures presented. It is important to seek clarification to assess the relative priorities of the other’s demands. At this stage, responses should be positive and constructive.

Figure 12.18 Listening and taking down notes during the negotiation

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c. Exchange and Compromise As a result of the exchange of information, each party has to look for a possible compromise to reach an acceptable position. There is a certain amount of give-and-take between both parties i.e. one party may agree on some items in return for some trade-off from the other side. As such, the parties make adjustments in their demands and move towards a mutually acceptable position.

Figure 12.19 Coming to a mutual agreement d. Reaching an Agreement Once an agreement is reached, negotiators will prepare a written agreement covering those terms and the effective and termination dates. To avoid misunderstanding, the parties should clarify the contents of the statements. Both parties must sign the final written agreement.

Figure 12.20 Signing the agreement The approval process is easier for the management as the CEO is aware of the agreement. However, the proposed agreement is not final until a majority of members vote for it in a ratification election.

12.9 WAYS TO SETTLE DISPUTES During the negotiations, there are times when both union and management are unable to reach an agreement. This situation is known as impasse. An impasse may be solved by third party intervention such as conciliation, mediation and arbitration. In the event that an impasse cannot be solved, unions and management may use some strategies to overcome it.

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12.9.1 Conciliation Conciliation is a procedure whereby an impartial third party helps the two parties to reach a mutually acceptable settlement. The conciliator may meet the parties separately or together, to exchange information, clarify issues and settle misunderstandings. The conciliator is only responsible to ensure that the parties come to an agreement and cannot impose any solutions.

Figure 12.21The lady is acting as a conciliator so that the two man can come to an agreement

12.9.2 Mediation Mediation is a process where a neutral third party acts as a facilitator to assist the two parties to reach a mutually acceptable settlement. The objective of mediation is to persuade both parties to resume negotiations and reach a settlement. A mediator can assist in looking for solutions and propose recommendations for consideration. However, the final decision is made by the parties themselves.

Figure 12.22 Mediation

12.9.3 Arbitration Arbitration is a procedure whereby a third party settles the dispute by making an independent decision for the parties. There are two types of arbitration i.e. rights arbitration and interest arbitration. Rights arbitration involves disputes over the interpretation and application of provisions in an existing contract. Interest arbitration involves disputes over the terms of proposed collective bargaining agreements. In Malaysia, the Minister of Human Resources needs to approve to submit the case to the Industrial Court for arbitration first.

Figure 12.23 Dispute is settled by a third party

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12.9.4 Fact Finder A fact finder is a neutral party who studies the issues in a dispute and makes a public recommendation for reasonable settlement and is usually used in a national emergency dispute.

12.10 UNION STRATEGIES FOR OVERCOMING NEGOTIATION BREAKDOWNS

Unions may decide to exert extreme pressure to get management to agree to its bargaining demands at times. The actions taken by unions are as follows:

12.10.1 Strikes When union members refuse to work in order to exert pressure on management in negotiations, their actions are called strike. A wildcat strike is an unauthorized strike occurring during the term of the contract while a sympathy strike occurs when one union strikes in support of another union. Economic strikes result from a failure to agree on the terms of a contract. Unions call unfair labor practice strikes to protest illegal conduct by the employer.

Figure 12.24 Employees on strike The effect of a strike on an organization is halting production, resulting in lost customers and revenue to the organization. The effectiveness of a strike depends on timing i.e. whether the business is growing and the amount of stocks. If business is slowing down and the organization has a large inventory, the strike will not be effective. Strikes are only legal in Malaysia if employees comply with the regulations in the Industrial Relations Act and Trade Union Acts.

12.10.2 Boycott A boycott happens when union members refuse to buy or use their organization’s product. It exerts economic pressure on management as the change in buyers’ behavior lasts longer than strikes. This method works well for products sold at retail outlets and are easily identifiable by the brand name.

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Figure 12.24 Examples of posters boycotting Coca-cola

12.10.3 Picket Picketing occurs when employees carry signs announcing their concerns near the employer’s place of business. In the past, bank employees have been seen picketing during their lunch break outside the bank’s premise.

Figure 12.25 Picketing

12.10.4 Armbands This strategy is common among bank employees. They either wear black armbands or buttons with slogans such as “we protest injustice.” One of the largest dispute was in 1988 which caused members to wear torn clothing to work to signify the poverty of their wages (Peetz & Todd 2001, p.341).

Figure 12.26 Wearing black armbands as a sign of protest

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12.10.5 Inside Games Inside games occur when the union tries to convince employees to disrupt production such as slowing the work pace, unofficially working to rule and taking excessive medical leave. These strategies would have a negative impact on productivity and customer relationship.

12.11 12.10 MANAGEMENT’S STRATEGIES FOR OVERCOMING NEGOTIATION BREAKDOWN

Management may also implement some strategies to encourage unions to resume discussions. The strategies are as follows:

12.11.1 Lockout When the management decides to keep employees out of the workplace and to operate with management personnel and/or temporary replacements, the management is implementing a lockout strategy. The lockout also indicates the management’s seriousness towards certain bargaining issues. A lockout would be effective for the following reasons: a. The union is weak b. No more funds in the union treasury c. Business has excessive inventories

Figure 12.27 Examples of lockout

12.11.2 Temporary Replacement The organization can also replace the striking workers’ jobs with management and nonunion workers. Hiring replacements is legal when the employees are engaged in an economic strike. However, this could create bitterness among its employees.

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The table below shows how the unions and management retaliate towards impasse.

Items 2000 2001 2002 2003(Jan-Nov)

Strikes / Lock Out 11 13 4 2 Employees Involved 2969 2209 506 57 Man days lost 6068 5999 1638 114 Picket 22 26 21 22 Claim for Trade Union Recognition under Section 9(2) Industrial Relations Act 1987.

76 99

Table 12.1 How unions and management retaliate towards impasse

Source: Jabatan Hal Ehwal Kesatuan Sekerja cited in Malaysian Trade Union Congress’s website

12.12 COLLECTIVE AGREEMENT A collective agreement is the result of a successful collective bargaining. Both parties will sign the final written agreement. All agreements need to certified by the Industrial Court in Malaysia.

Figure 12.28 Components in a collective agreement The following sections are typically covered in a collective agreement: 1. management rights, 2. union security, 3. grievance procedures, 4. arbitration of grievances, 5. disciplinary procedures, 6. compensation rates, 7. hours of work and overtime, 8. benefits including vacations, holidays, insurance and pensions, 9. health and safety provisions, 10. employee security seniority provisions and 11. the contract expiration date

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12.12.1 Types of Agreement The contents of the agreement can be classified as procedural and substantive. a. Procedural Procedural contents refer to the rules and procedures that need to be used by both parties such as: i. procedures for settling a dispute, grievance and discipline matters ii. rules for the conduct of negotiations, time limit, who should chair the meeting, etc. These procedures ensure that all disputes will be handled in a consistent and fair manner. All disputes should be documented and kept as evidence at a later stage if necessary, showing a consistent pattern in how similar disputes are resolved. b. Substantive Substantive contents refer to term and conditions of employment. The contents are often updated as unions seek for better terms and conditions to reflect changing labor market conditions.

12.13 GRIEVANCES Grievance refers to any factors that are used as a complaint against the employer. The collection agreement’s grievance procedure provides a systematic system where the employer and union can determine whether some action has violated the contract. Both parties will interpret and give meaning to the various clauses in the agreement.

Figure 12.29 Grievances

12.13.1 Sources of Grievances Factors that can be used as the basis of a grievance are wages, hours, working conditions, discipline cases, promotions, transfers, lay-offs, work assignments, overtime, vacations, incentive plans, holidays, poor relationship between supervisors and subordinates, union activism, ambiguous job descriptions and others.

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Some examples of grievances are listed below. a. An employer terminated an employee for excessive absenteeism. The employee filed a grievance stating that there had been no previous warnings or discipline relating to this issue.

Figure 12.30 Source of grievance b. The plant posted a rule barring employees from eating or drinking during unscheduled breaks. The employees filed a grievance.

12.13.2 The Grievance Procedure Majority of the collective agreements have a specific grievance procedure that lists the steps in the procedure, time limit for each step and specific rules such as “all charges of contract violation needs to be in writing.” However, the grievance procedures vary from firm to firm. The diagram below shows the steps involved in a grievance procedure.

I was terminated for frequently being absent for work today. My supervisor has never given me any warning of termination!!!

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Figure 12.31 An example of a grievance procedure Source: Adapted by Dessler 2006, p.585

Meeting between employee, shop steward and supervisor’s boss

Arbitration process begins

Grievant and shop steward informally meet the grievant’s supervisor to find a solution

Employee files a formal grievance

No

Yes

Meeting between employee, union representatives and higher-level managers

Is an agreement reached? solution

Yes

No

An agreement is reached

Yes

Yes



No

No


Is a solution reached?

Is a solution reached?

Yes An agreement is reached

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12.13.3 Guidelines for Handling Grievances The best way to handle a grievance is to create a work environment that do not allow grievance to occur. This means that managers need to recognize, diagnose and correct employees’ dissatisfaction before they become grievances. The table below shows a list of do’s and don’ts in handling grievances. Do’s Don’ts Investigate and handle each case as though it may eventually result in arbitration

Discuss the case with the union steward alone – the grievant should be there

Talk with the employee about his grievance; give the person a full hearing

Hold back the remedy if the organization is wrong

Require the union to identify specific contractual provisions allegedly violated

Admit to the binding effect of a past experience

Comply with the contractual time limits for handling the grievance

Relinquish to the union your rights as a manager

Visit the work area of the grievance Settle grievances based on what is “fair”. Instead, stick to collective agreement

Determine whether there were any witnesses

Bargain over items not covered by the contract

Examine the grievant’s personnel record Treat management as subject to arbitration claims demanding the discipline or discharge of managers

Examine prior grievance records Give long written grievance answers Treat the union representative as your equal Trade a grievance settlement for a

grievance withdrawal Hold your grievance discussions privately Deny grievances because “your hands have

been tied by management.” Inform your supervisor of grievance matters

Agree to informal amendments in the contract

Making arrangements with individual employees that are inconsistent with the labor agreement

Table 12.2 The Dos and don’ts in handling grievances Source: Dessler 2005, p.586-587

12.14 EMPLOYMENT RELATIONS IN MALAYSIA Malaysia has a tripartite employment relations system where the government, union and employers work together to promote industrial harmony in the country. The National Labor Advisory Council comprises representatives from the government (Ministry of Human Resources), employer organizations (Malaysian Employers Federation), and the unions (Malaysian Trade Union Congress and the Congress of Unions of Employees in the Public, Administrative and Civil Services).

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The major employment laws are the Employment Act, Trade Unions Act, Industrial Relations Act, Occupational Safety and Health Act, Employees’ Social Security Act and Workmen’s Compensation Act. The purpose of each Act is summarized in the table below. Types of Act Purpose Employment Act Specifies the terms and conditions of employment such as

contract of service, termination of contract, definition and payment of wages, working hours and various types of leave and employment of women

Trade Unions Act Specifies the rules and regulations for the registration and management of unions and rights of union members

Industrial Relations Act Governs the relationship between employers and the unions and also specifies procedures to settle disputes

Occupational Health and Safety

Ensures that all parties are responsible for the safety and health at the workplace

Employees’ Social Security Act

Implements an insurance system that covers employees who are involved in accidents at work or develop a work-related disease. Employers must register all employees that earn less than RM1,200 as members of Social Security Organization (SOCSO) and remit the compulsory monthly contribution to SOCSO

Workmen’s Compensation Act

Employers must buy insurance policy to compensate foreign workers who are involved in accidents at work.

Table 11.3 Purposes of each Act The Ministry of Human Resources is responsible for employment relations matters. Its main objectives are to protect employees’ welfare, promote good employment relations and improve the skills of the workforce. All trade disputes are referred to the Industrial Court by the Minister of Human Resources for arbitration.

Government

Employers Employees

Figure 12.32 Working together to achieve industrial harmony

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12.15 SUMMARY 1. A trade union is an organized group of workers who collectively want to improve the

terms and conditions at their workplace via collective bargaining. 2. The main objectives of a trade union are involving in collective bargaining, safeguarding

jobs, taking part in political and social activities and cooperating with employers. 3. They are five basic types of unions: craft union, general union, staff union, industry union

and house union. 4. Individuals join unions because of higher wages and benefits, job security, peer pressure,

social needs, ability to influence work rules, compulsory membership, upset with management, upgrade their skills and opportunity for leadership and personal reasons.

5. Collective bargaining is the process where representatives of management and the union meet to negotiate a labor agreement

6. Collective bargaining may be viewed from many perspectives: behavioral, economic or legal.

7. The conditions for successful bargaining are freedom of association, stability of union and recognition of unions by employers.

8. Negotiation is the process of discussing a subject matter with the objective of reaching an agreement. The parties to the negotiation are usually representatives from the union and a management team representing the organization.

9. The process of negotiation involves preparing for the negotiation, presenting the negotiation, exchanging information and comprising both parties’ demands to reach a mutually acceptable agreement.

10. There are four ways to solve an impasse i.e. mediation, conciliation, fact finder and arbitration.

11. Unions may exert pressure to management by conducting strikes, boycott, picketing, wearing armbands and playing inside games.

12. Management’s strategies for overcoming negotiation breakdown are lockouts and hiring temporary staff.

13. A collective agreement is the result of a successful collective bargaining. Both parties will sign the final written agreement. All agreements need to certified by the Industrial Court in Malaysia.

14. Grievance refers to any factors that are used as a complaint against the employer. 15. Most collective agreements contain a carefully worded grievance procedure ranging from

two to six or more steps. The steps usually involved union-management meetings at each step up the chain of command until (if the agreement isn’t reached), the grievance goes to arbitration.

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12.16 CASE STUDY- MARI Mari is the union representative for her company. She was at home on her official one-day leave. She was called by her supervisor, Jo and told to talk to three union members and instruct them to attend a “Work Improvement” meeting. The Work Improvement Program was a training program unilaterally introduced by the company for all employees. The union had objected to this program because it had not been consulted. It had told its members that they could attend the program if their jobs were threatened. Mari refused to order three employees to attend the meeting. The company suspended her for two weeks. She filed a grievance against the suspension. The union’s position was that the company had no authority to discipline Mari, the union representative while she was on leave for failure to order the three employees to attend the “work improvement” meeting. It argued that it was Jo, the supervisor who should have ordered the employees to attend the meeting and to discipline these employees if they refused. Jo had conveniently passed his responsibility to Mari and disciplined her for insubordination. Questions 1. As the arbitrator, do you think the company had good reason to suspend Mari for insubordination? 2. Is the union justified for not encouraging its members to attend the training program?

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12.17 EXERCISES Answer the following questions 1. Which of the following is false concerning the benefits and consequences of union membership?

a. union workers receive more holidays from work with pay b. insurance plan benefits are better for union workers than for nonunion workers c. union members earn less than nonunion workers d. union members are more likely to have long-term disability benefits than non-union workers e. unions can support the need for lighter workloads for union members

2. In which human resource activity does a typical labor agreement give the union a role?

a. recruitment b. selection c. compensation d. dismissal e. all of the above

3. Permissible bargaining items are ___________.

a. a part of negotiations through joint agreement of both management and union b. forbidden by law c. items which must be negotiated according to law d. items important to both sides such as wages and benefits e. all of the above

4. All of the following are examples of mandatory bargaining items except ___________.

a. wages b. hours c. severance pay d. pension benefits of retired employees e. insurance benefits

5. Mandatory bargaining items are ________________.

a. a part of negotiations through joint agreement of both management and union b. forbidden by law c. items which must be negotiated according to law d. items important to both sides such as wages and benefits e. all of the above

6. In collective bargaining, a(n) ______________ occurs when the parties are not able to move forward toward settlement.

a. impasse b. agreement c. arbitration d. mediation e. association

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7. Negotiators use all of the following types of third-party interventions to overcome an impasse except _______________.

a. binding arbitration b. nonbinding arbitration c. mediation d. fact finding e. picketing

8. Mediation to ______________ is used by negotiators to end an impasse.

a. assist the principals in reaching an agreement b. study the issue in a dispute c. make a public recommendation d. determine and dictate the settlement terms e. interpret existing contract terms

9. Fact finding seeks to end an impasse by ___________________.

a. assisting the principals in reaching an agreement b. studying the issue in a dispute and making a public recommendation c. determining and dictating the settlement terms d. interpreting existing contract terms e. communicating assessments of the likelihood of a strike

10. Which form of arbitration seeks to interpret existing contract terms?

a. interest arbitration b. binding arbitration c. nonbonding arbitration d. rights arbitration e. compulsory arbitration

11. A(n) __________ strike results from a failure to agree on the terms of a contract.

a. unfair labor practice b. wildcat c. sympathy d. yellow dog e. economic

12. The United Auto Workers went on strike support the employees of the Detroit News, Detroit Free Press and USA Today. This is an example of a(n) ____________ strike.

a. unfair labor practice b. wildcat c. sympathy d. yellow dog e. economic

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13. When employees picket their employer by carrying signs near the employer’s place of business they seek to ______________.

a. encourage other employees to strike b. inform the public of the labor dispute c. arbitrate the positions of the union and management d. encourage employees to join the union e. all of the above

14. Employers dealing with an unfair labor practice strike can use all of the following responses except ______________.

a. shut down the affected area until the strike ends b. contract out work to other operations c. continue operations with supervisors filling in d. hire temporary replacement workers e. hire permanent replacement workers

15. Under which scenario must an employer rehire strikers who wish to be reinstated?

a. following economic strikes if the negotiations were resolved b. following sympathy strikes c. following unfair labor practice strikes d. following wildcat strikes when the contract is till in place e. all of the above

16. Employees who go on strike risk losing their jobs permanently in all of the following situations except ____________.

a. economic strikes b. wildcat strikes c. sympathy strikes d. unfair labor practice strikes e. all of the above represent a risk of job loss

17. Union tactics designed to impede or disrupt production by encouraging employees to slow down the pace of the work, refuse to work overtime and participate in sick-outs are called ____________.

a. espionage b. inside games c. lockouts d. injunctions e. strikes

18. A(n) ___________ procedure provides an orderly system for both employer and union to determine whether some action violated the contract and allows both parties to interpret and give meaning to various clauses.

a. negotiation b. collective bargaining c. intervention d. grievance e. arbitration

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19. In the case of an impasse during the collective bargaining negotiations, what can be done to overcome the impasse. Define each form of intervention. 20. List and define four main types of strikes. 21. Name 10 sections covered by a collection agreement.

12 collective bargaining and employment · pdf file · 2008-04-1912 collective...

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