chapter 1 union-management relationship in perspective

PowerPoint Presentation by Charlie CookThe University of West Alabama

Copyright © 2009 Cengage Learning. All rights reserved.

Union-Management Union-Management Relationships in PerspectiveRelationships in Perspective

Chapter 1

© 2008 Cengage Learning. All rights reserved. 1–2

Phases in the Labor Relations ProcessPhases in the Labor Relations Process1.1. Recognition of rights and responsibilitiesRecognition of rights and responsibilities

Legal protections and constraints on union and Legal protections and constraints on union and management representativesmanagement representatives

2.2. Negotiation of the labor agreementNegotiation of the labor agreement Strategies, tactics, and dispute resolution techniquesStrategies, tactics, and dispute resolution techniques

3.3. Administration of the negotiated labor Administration of the negotiated labor agreementagreement

Management administers the agreement.Management administers the agreement. Union monitors management’s compliance with the Union monitors management’s compliance with the

terms of the agreement.terms of the agreement.


Exhibit 1.1 Elements in the Labor Relations Process


Labor Relations’ Focal Point: Work Labor Relations’ Focal Point: Work RulesRules• Work Rule CategoriesWork Rule Categories

Rules governing compensationRules governing compensation Wages, overtime payments, vacations, shift premiumsWages, overtime payments, vacations, shift premiums

Rules specifying employees’ and employers’ job Rules specifying employees’ and employers’ job rights and obligationsrights and obligations No strike/no lockout, performance standards, promotion No strike/no lockout, performance standards, promotion

qualifications, job specifications, layoff provisionsqualifications, job specifications, layoff provisions

• Characteristics of Work RulesCharacteristics of Work Rules Common or uniqueCommon or unique Vague or specificVague or specific Change over timeChange over time


Exhibit 1.2 Examples of Work Rules

Job or Industry Classification Work Rule

Electricians Where the work assignment of employees who have been assigned a permanent reporting location requires travel to and between other work locations and/or return to their permanent reporting location, the time consumed by the employees in such travel shall be counted as time worked.

Professional Baseball The player and the club recognize and agree that the player’s participation in certain other sports may impair or destroy his ability and skill as a baseball player. Accordingly, the player agrees that he will not engage in professional boxing or wrestling, and that except with the written consent of the club, he will not engage in skiing, auto racing, motorcycle racing, sky diving or in any game or exhibition of football, soccer, professional league basketball, ice hockey, or other sport involving a substantial risk of personal injury.


Participants in the Labor Relations Participants in the Labor Relations ProcessProcess• Management OfficialsManagement Officials

Corporate, divisional, plant-level managersCorporate, divisional, plant-level managers Management consultants, “union avoidance” expertsManagement consultants, “union avoidance” experts

• Union OfficialsUnion Officials Elected officers and representativesElected officers and representatives

• EmployeesEmployees Vote to organize and vote to ratify negotiated Vote to organize and vote to ratify negotiated

agreementsagreements


Participants…(cont’d)Participants…(cont’d)• The GovernmentThe Government

Executive, legislative, and judicial branchesExecutive, legislative, and judicial branches Actions (laws and regulations) can change labor-Actions (laws and regulations) can change labor-

management relationships.management relationships. Federal, state, and local levels of governmentFederal, state, and local levels of government

• Third-Party NeutralsThird-Party Neutrals MediatorsMediators

Facilitate bargaining activities.Facilitate bargaining activities. ArbitratorsArbitrators

Consider disputed issues and make decisions binding on Consider disputed issues and make decisions binding on both labor and management.both labor and management.


Three Basic Assumptions Underlying Three Basic Assumptions Underlying U.S. Labor RelationsU.S. Labor Relations1.1. The free enterprise (capitalist) economic The free enterprise (capitalist) economic

system creates an inherent conflict of interest system creates an inherent conflict of interest between employers (owners) and employees.between employers (owners) and employees.

2.2. Employees have a right to pursue their Employees have a right to pursue their employment interests using lawful means.employment interests using lawful means.

3.3. Collective bargaining provides for employee Collective bargaining provides for employee participation through their chosen participation through their chosen representatives in determination of work rules.representatives in determination of work rules.


Exhibit 1.3 Basic Characteristics of the Private Sector Labor Relations System

• Primarily a bilateral process (union and management) governed by a framework of labor laws.

• A highly decentralized bargaining structure that results in a large number of labor contracts.

• Recognition of the key legal principles of majority rule and exclusive bargaining representation.

• Permits the use of economic pressure (e.g., strike, lockout, picketing, and boycott) to aid the parties (union and management) in reaching a voluntary negotiated settlement.

• Encourages the use of final and binding arbitration, if voluntary grievance negotiation efforts fail, to resolve rights disputes.

• Characterized by significant employer opposition to employee efforts to organize and bargain collectively through representation.


Constraints or Influences on Work Constraints or Influences on Work RulesRules• State of the EconomyState of the Economy

Inflation, interest rates, unemployment, and Inflation, interest rates, unemployment, and productivity affect job security.productivity affect job security.

• Labor MarketLabor Market Skills and wage levels in the relevant labor marketSkills and wage levels in the relevant labor market Demand for labor and shifts in labor market sectorsDemand for labor and shifts in labor market sectors

• Product MarketProduct Market Vulnerability of disruption to product supply to Vulnerability of disruption to product supply to

customers from the potential for labor strikescustomers from the potential for labor strikes Use of outsourced materials and products Use of outsourced materials and products


Constraints or Influences…(cont’d)Constraints or Influences…(cont’d)• Financial MarketFinancial Market

Availability and cost of funds for investmentAvailability and cost of funds for investment Exchange rates that affect plant location choiceExchange rates that affect plant location choice Funds borrowed to support ESOPsFunds borrowed to support ESOPs Capital investments in nonunion and offshore facilitiesCapital investments in nonunion and offshore facilities

• TechnologyTechnology Equipment changing or eliminating skills requiredEquipment changing or eliminating skills required Pace and scheduling of the workPace and scheduling of the work Work environment and tasksWork environment and tasks Information exchangeInformation exchange


Constraints or Influences…(cont’d)Constraints or Influences…(cont’d)• International ForcesInternational Forces

North American Free Trade Agreement (NAFTA)North American Free Trade Agreement (NAFTA) U.S. firms’ overseas investmentsU.S. firms’ overseas investments Globalization and the global economy (24/7)Globalization and the global economy (24/7) Multinational firms’ plant location strategiesMultinational firms’ plant location strategies Low-wages in newly industrializing countriesLow-wages in newly industrializing countries Rising volume of importsRising volume of imports

• Public OpinionPublic Opinion Influential individuals and organizationsInfluential individuals and organizations Attitudes and traditions of the communityAttitudes and traditions of the community


How Unions Enhance Public OpinionHow Unions Enhance Public Opinion• Monitoring and reacting to negative comments Monitoring and reacting to negative comments

made in the media.made in the media.

• Getting organized labor’s positive message out Getting organized labor’s positive message out to the community.to the community.

• Forming alliances with various groups in the Forming alliances with various groups in the community.community.


Union Membership Is DecliningUnion Membership Is Declining• Structural Changes in the Labor ForceStructural Changes in the Labor Force

Shift from manufacturing to knowledge-based jobsShift from manufacturing to knowledge-based jobs Growth in professional, technical, and service workers Growth in professional, technical, and service workers Shifts in workforce demographics (more females and Shifts in workforce demographics (more females and

younger workers)younger workers) Employment growth primarily (80%) in smaller firmsEmployment growth primarily (80%) in smaller firms Increases in the use of part-time and contingent Increases in the use of part-time and contingent

workersworkers Economic recessionsEconomic recessions


Exhibit 1.4 Union Membership Trends, 1975–2006 (in thousands)

Data is based upon information in the Current Population Survey (CPS) compiled by the Bureau of Labor Statistics, U.S. Department of Labor.

SOURCE: Barry Hirsch and David Macpherson, ‘‘Union Membership, Coverage, Density, and Employment among All Wage and Salary Workers, 1973–2006,’’ Unionstats.com, 2007, p. 1 at http://www.trinity.edu/bhirsch/unionstats/.


Union Membership Is Declining Union Membership Is Declining (cont’d)(cont’d)• Organizational PracticesOrganizational Practices

Union-avoidance practices by firmsUnion-avoidance practices by firms Improved human resources practicesImproved human resources practices

• Employment LawEmployment Law Companies’ use of laws to forestall organizingCompanies’ use of laws to forestall organizing Laws that make unions appear unnecessaryLaws that make unions appear unnecessary

• Union Organizing EffortsUnion Organizing Efforts Questions about the sufficiency of resources devoted Questions about the sufficiency of resources devoted

to organizing by unionsto organizing by unions


Key TermsKey Terms• Labor relations processLabor relations process• Interest disputeInterest dispute• Rights disputeRights dispute• Work ruleWork rule• ManagerManager• Union representativeUnion representative• EmployeesEmployees• Dual loyaltyDual loyalty• GovernmentGovernment• Third-party neutralThird-party neutral• MediatorMediator

• ArbitratorArbitrator• EconomyEconomy• Labor marketLabor market• Product or service marketProduct or service market• Financial marketFinancial market• TechnologyTechnology• International forcesInternational forces• Public opinionPublic opinion• Union densityUnion density• Employment-at-willEmployment-at-will

chapter 1 union-management relationship in perspective

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