collective bargaining and negotiating change copyright © 2011 pearson education, inc. publishing as...

Collective Bargaining and Collective Bargaining and negotiating change negotiating change

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 15–1

• Based on chapter 15Based on chapter 15


Employee Negotiations Employee Negotiations

• The main purpose of this lecture is to help you The main purpose of this lecture is to help you understand how[ in particular USA ] organisations deal understand how[ in particular USA ] organisations deal effectively with unions and grievances. effectively with unions and grievances.

• We need to explain what mangers expect during the We need to explain what mangers expect during the actual bargaining sessions, and how they handle actual bargaining sessions, and how they handle grievances.grievances.


Todays Tutorial Todays Tutorial

• Chapter 1 Chapter 1

look at the look at the • Application Case: Jack Nelson's ProblemApplication Case: Jack Nelson's Problem


Tomorrows tutorial Tomorrows tutorial

• read the read the Discussion Questions on Selection IssuesDiscussion Questions on Selection Issues in chapter 5 in chapter 5

Discuss in your groups Discuss in your groups • 1.1. What are the pros and con of five sources of job What are the pros and con of five sources of job

candidates? candidates? • 2.2. What are the four main types of information application What are the four main types of information application

forms provide?forms provide? • 3. What are the five main things you would do to recruit and 3. What are the five main things you would do to recruit and

retain a more diverse workforce? retain a more diverse workforce?



Why Do Workers Organize?Why Do Workers Organize?

• SolidaritySolidarity To get their fair shareTo get their fair share

Improved wages, hours, working conditions, and benefitsImproved wages, hours, working conditions, and benefits To protect themselves from management whimsTo protect themselves from management whims

• Conditions Favoring Employee OrganizationConditions Favoring Employee Organization Low moraleLow morale Fear of job lossFear of job loss Arbitrary management actionsArbitrary management actions

Unions and their aims Unions and their aims

• We can generalize by saying that unions have two sets of We can generalize by saying that unions have two sets of aims, one for aims, one for union security union security and one for and one for improved wages, improved wages, hours, working conditionshours, working conditions, and , and benefits benefits for their members.for their members.



What Do Unions Want?What Do Unions Want?

Increased workplace security for the union

Improved wages, hours, working conditions, job

security, and benefits

Union Bargaining Aims


Union SecurityUnion Security

Closed shop

Open shop

Union shop

Types of Union Security

Agency shop

Membership

maintenance


What are Unfair What are Unfair Employer Employer Labor Labor Practices?Practices?• To “interface with, restrain, or coerce employees” To “interface with, restrain, or coerce employees”

in exercising their right of self-organizationin exercising their right of self-organization

• To dominate or interfere with either the formation To dominate or interfere with either the formation or the administration of labor unionsor the administration of labor unions

• To discriminate against employees for legal union To discriminate against employees for legal union activitiesactivities

• To discharge or discriminate against employees who file To discharge or discriminate against employees who file unfair practice charges against the companyunfair practice charges against the company

• To refuse to bargain collectively with their employees’ To refuse to bargain collectively with their employees’ representativesrepresentatives


Unfair Unfair UnionUnion Labor Practices Labor Practices• To restrain or coerce employees from exercising To restrain or coerce employees from exercising

their guaranteed bargaining rights.their guaranteed bargaining rights.

• To cause an employer to discriminate against To cause an employer to discriminate against employees in order to encourage or discourage employees in order to encourage or discourage their membership in a union.their membership in a union.

• To refuse to bargain in good faith with the employer To refuse to bargain in good faith with the employer about wages, hours, and other employment conditions. about wages, hours, and other employment conditions. Certain strikes and boycotts are also unfair practices.Certain strikes and boycotts are also unfair practices.

• To engage in “featherbedding” (requiring an employer To engage in “featherbedding” (requiring an employer to pay an employee for services not performed).to pay an employee for services not performed).


FIGURE 15–4 Union Avoidance: What Not to Do

• Watch what you say. Angry feelings of the moment may get you in trouble.

• Never threaten workers with what you will do or what will happen if a union comes in. Do not say, for example, that the business will close or move, that wages will go down or overtime will be eliminated, that there will be layoffs, etc.

• Don’t tell union sympathizers that they will suffer in any way for their support. Don’t terminate or discipline workers for engaging in union activities.

• Don’t interrogate workers about union sympathizers or organizers.

• Don’t ask workers to remove union screensavers or campaign buttons if you allow these things for other organizations.

• Don’t treat pro-union or anti-union workers any differently.

• Don’t transfer workers on the basis of union affiliation or sympathies.

• Don’t ask workers how they are going to vote or how others may vote.

• Don’t ask employees about union meetings or any matters related to unions. You can listen, but don’t ask for details.

• Don’t promise workers benefits, promotions, or anything else if they vote against the union.

• Avoid becoming involved—in any way—in the details of the union’s election or campaign, and don’t participate in any petition movement against the union.

• Don’t give financial aid or any support to any unions.

Any one of these practices may result in a finding of “unfair labor practices,” which may in turn result in recognition of a union without an election, as well as fines for your firm.

Human resources professionals must be very careful to do the following during union activities at their firms:


The Collective Bargaining ProcessThe Collective Bargaining Process

• What Is Collective Bargaining?What Is Collective Bargaining? Both management and labor are required by law to negotiate Both management and labor are required by law to negotiate

wages, hours, and terms and conditions of employment “in good wages, hours, and terms and conditions of employment “in good faith.”faith.”

• What Is Good Faith Bargaining?What Is Good Faith Bargaining? Both parties communicate and negotiate.Both parties communicate and negotiate.

They match proposals with counterproposals They match proposals with counterproposals in a reasonable effort to arrive at an agreement.in a reasonable effort to arrive at an agreement.

Neither party can compel the other to agree to Neither party can compel the other to agree to a proposal or to make any specific concessions.a proposal or to make any specific concessions.

Good faith Good faith bargaining bargaining

• Managers and unions must be careful to avoid bargaining Managers and unions must be careful to avoid bargaining practices that can result in violations of good faith practices that can result in violations of good faith bargainingbargaining

• Preparing for bargaining begins with becoming familiar Preparing for bargaining begins with becoming familiar with the factors affecting the important items over which with the factors affecting the important items over which bargaining will occur.bargaining will occur.



Violations of Good Faith BargainingViolations of Good Faith Bargaining1.1. Surface bargainingSurface bargaining

2.2. Inadequate concessionsInadequate concessions

3.3. Inadequate proposals and demandsInadequate proposals and demands

4.4. Dilatory tacticsDilatory tactics

5.5. Imposing conditionsImposing conditions

6.6. Making unilateral changes in conditionsMaking unilateral changes in conditions

7.7. Bypassing the representativeBypassing the representative

8.8. Committing unfair labor practices during negotiationsCommitting unfair labor practices during negotiations

9.9. Withholding informationWithholding information

10.10. Ignoring bargaining itemsIgnoring bargaining items


Preparing for NegotiationsPreparing for Negotiations

• Sources of Negotiating InformationSources of Negotiating Information Local and industry pay and benefits comparisons Local and industry pay and benefits comparisons

Distribution of demographics of the workforceDistribution of demographics of the workforce

Benefit costs, overall earnings levels, and the amount and Benefit costs, overall earnings levels, and the amount and cost of overtimecost of overtime

Cost of the current labor contract and the increased cost—total, Cost of the current labor contract and the increased cost—total, per employee, and per hour—of the union’s demandsper employee, and per hour—of the union’s demands

Grievances and feedback from supervisorsGrievances and feedback from supervisors

Attitude surveys of employeesAttitude surveys of employees

Informal conferences with local union leadersInformal conferences with local union leaders

Preparation for bargaining Preparation for bargaining

• Preparing for bargaining begins with becoming familiar with Preparing for bargaining begins with becoming familiar with the factors affecting the important items over which bargaining the factors affecting the important items over which bargaining will occur.will occur.

• In practice, saying one must bargain over “wages, hours, and In practice, saying one must bargain over “wages, hours, and working conditions” is too broad. Labor law sets out categories working conditions” is too broad. Labor law sets out categories of specific items that are subject (or not) to bargaining: These of specific items that are subject (or not) to bargaining: These are mandatory, voluntary, and illegal items.are mandatory, voluntary, and illegal items.



Classes of Bargaining ItemsClasses of Bargaining Items

Mandatory items

Illegal items

Bargaining Item Categories

Voluntary items


TABLE 15–1 Bargaining Items

Mandatory Permissible Illegal

Rates of pay

Wages

Hours of employment

Overtime pay

Shift differentials

Holidays

Vacations

Severance pay

Pensions

Insurance benefits

Profit-sharing plans

Christmas bonuses

Company housing, meals, and discounts

Employee security

Job performance

Union security

Management–union relationship

Drug testing of employees

Indemnity bonds

Management rights as to union affairs

Pension benefits of retired employees

Scope of the bargaining unit

Including supervisors in the contract

Additional parties to the contract such as the international union

Use of union label

Settlement of unfair labor charges

Prices in cafeteria

Continuance of past contract

Membership of bargaining team

Employment of strike breaker

Closed shop

Separation of employees based on race

Discriminatory treatment

Answer Answer

Which of the following is a false statement about union Which of the following is a false statement about union membership?membership?

• A) Union members work in both blue-collar and white-A) Union members work in both blue-collar and white-collar industries. collar industries.

• B) Insurance plan benefits are better for union workers B) Insurance plan benefits are better for union workers than for nonunion workers.than for nonunion workers.

• C) Union members have better long-term disability benefits C) Union members have better long-term disability benefits than non-union workers do. than non-union workers do.

• D) Union workers receive more holidays and unpaid leave D) Union workers receive more holidays and unpaid leave than nonunion workers do. than nonunion workers do.

• E) Employers prefer nonunion workers, so they pay them E) Employers prefer nonunion workers, so they pay them higher wages than union members.higher wages than union members.


• EE• Explanation: Recent median weekly wages for union workers Explanation: Recent median weekly wages for union workers

was $781, while that for nonunion workers was $612. Union was $781, while that for nonunion workers was $612. Union workers also generally receive significantly more holidays, workers also generally receive significantly more holidays, sick leave, unpaid leave, insurance plan benefits, long-term sick leave, unpaid leave, insurance plan benefits, long-term disability benefits, and various other benefits than nonunion disability benefits, and various other benefits than nonunion workers do. Union membership is not exclusive to blue-collar workers do. Union membership is not exclusive to blue-collar workers.workers.


Question Question

• The ________ form of union security means that the The ________ form of union security means that the company can hire only union members.company can hire only union members.

• A) closed shopA) closed shop• B) union shopB) union shop• C) agency shopC) agency shop• D) preferential shopD) preferential shop• E) maintenance of membershipE) maintenance of membership• AnswerAnswer


• : A: A• Explanation: Under the closed shop form of union security, Explanation: Under the closed shop form of union security,

the company can hire only current union the company can hire only current union • members. In the USA Congress outlawed closed shops in members. In the USA Congress outlawed closed shops in

interstate commerce in 1947, but they still exist in some interstate commerce in 1947, but they still exist in some states for particular industries. states for particular industries.



Bargaining StagesBargaining Stages

1.1. Presentation of initial demandsPresentation of initial demands Both parties are usually quite far apart on some issues.Both parties are usually quite far apart on some issues.

2.2. Reduction of demandsReduction of demands Each side trades off some of its demands to gain others.Each side trades off some of its demands to gain others.

3.3. Subcommittee studiesSubcommittee studies The parties form joint subcommittees to try to work out The parties form joint subcommittees to try to work out

reasonable alternatives.reasonable alternatives.

4.4. An informal settlementAn informal settlement Each group goes back to its sponsor.Each group goes back to its sponsor. Union members vote to ratify the agreement.Union members vote to ratify the agreement.

5.5. Signing the formal agreementSigning the formal agreement


Bargaining HintsBargaining Hints

1.1. Be sure to set clear objectives for every bargaining item, Be sure to set clear objectives for every bargaining item, and be sure you understand the reason for each.and be sure you understand the reason for each.

2.2. Do not hurry.Do not hurry.

3.3. When in doubt, caucus with your associates.When in doubt, caucus with your associates.

4.4. Be well prepared with data supporting your position.Be well prepared with data supporting your position.

5.5. Strive to keep some flexibility in your position.Strive to keep some flexibility in your position.

6.6. Don’t concern yourself just with what the other party says Don’t concern yourself just with what the other party says and does; find out why.and does; find out why.

7.7. Respect importance of face saving for the other party.Respect importance of face saving for the other party.

8.8. Be alert to the real intentions of the other party—not only Be alert to the real intentions of the other party—not only for goals, but also for priorities.for goals, but also for priorities.


Bargaining Hints (cont’d)Bargaining Hints (cont’d)

9.9. Be a good listener.Be a good listener.

10.10. Build a reputation for being fair but firm.Build a reputation for being fair but firm.

11.11. Learn to control your emotions and use them Learn to control your emotions and use them as a tool.as a tool.

12.12. As you make each bargaining move, be sure you know As you make each bargaining move, be sure you know its relationship to all other moves.its relationship to all other moves.

13.13. Measure each move against your objectives.Measure each move against your objectives.

14.14. Remember that collective bargaining is a compromise Remember that collective bargaining is a compromise process. There is no such thing as having all the pie.process. There is no such thing as having all the pie.

15.15. Try to understand the people and their personalities.Try to understand the people and their personalities.


When Bargaining StopsWhen Bargaining Stops

• An Impasse An Impasse Usually occurs because one party is demanding more than the Usually occurs because one party is demanding more than the

other will offer. other will offer.

Sometimes an impasse can be resolved through a third party—Sometimes an impasse can be resolved through a third party—a disinterested person such as a mediator or arbitrator. a disinterested person such as a mediator or arbitrator.

If the impasse is not resolved:If the impasse is not resolved:

The union may call a work stoppage, or strike, to put The union may call a work stoppage, or strike, to put pressure on management.pressure on management.

Management may lock out employees.Management may lock out employees.


Resolution of an ImpasseResolution of an Impasse

Mediation Arbitration

Third Party Involvement

Fact finding


Third-Party InvolvementThird-Party Involvement

• MediationMediation A neutral third party (mediator) tries to assist A neutral third party (mediator) tries to assist

the principals in reaching an agreement by the principals in reaching an agreement by holding meetings with each party to find holding meetings with each party to find common ground for further bargaining.common ground for further bargaining.

The mediator is a go-between and has no The mediator is a go-between and has no authority to dictate terms or make concessions.authority to dictate terms or make concessions.

The mediator communicates assessments The mediator communicates assessments of the likelihood of a strike, the possible of the likelihood of a strike, the possible settlement packages available, and the like.settlement packages available, and the like.


Third-Party Involvement (cont’d)Third-Party Involvement (cont’d)

• Fact FinderFact Finder A neutral party who studies the issues in a dispute and makes a A neutral party who studies the issues in a dispute and makes a

public recommendation for a reasonable settlement.public recommendation for a reasonable settlement.

• ArbitrationArbitration An arbitrator often has the power to determine and dictate the An arbitrator often has the power to determine and dictate the

settlement terms. settlement terms. Binding arbitration can guarantee a solution Binding arbitration can guarantee a solution

to an impasse.to an impasse. Interest arbitration for labor agreementsInterest arbitration for labor agreements Rights arbitration defines the terms of existing contractsRights arbitration defines the terms of existing contracts

Withdrawal of labor Withdrawal of labor

• A A strike strike is a withdrawal of labor, and there are four main is a withdrawal of labor, and there are four main types of strikes.types of strikes.

• PicketingPicketing, or having employees carry signs announcing , or having employees carry signs announcing their concerns near the employer’s place of business, is their concerns near the employer’s place of business, is one of the first activities to occur during a strike. one of the first activities to occur during a strike. Employers can make several responses when they Employers can make several responses when they become the object of a strike.become the object of a strike.



Resolving an Impasse: Union Resolving an Impasse: Union StrikesStrikes

Economic strike

Unfair labor practice strike

Wildcat strike

Sympathy strike

Types of Strikes


Pressure Tactic AlternativesPressure Tactic Alternatives

• UnionsUnions PicketingPicketing Corporate campaignCorporate campaign BoycottBoycott Inside gamesInside games InjunctionsInjunctions

• EmployersEmployers Replacement workersReplacement workers LockoutsLockouts InjunctionsInjunctions


Main Sections of a Contract Main Sections of a Contract AgreementAgreement• Management rightsManagement rights

• Union security and automatic payroll dues deductionUnion security and automatic payroll dues deduction

• Grievance proceduresGrievance procedures

• Arbitration of grievancesArbitration of grievances

• Disciplinary proceduresDisciplinary procedures

• Compensation ratesCompensation rates

• Hours of work and overtimeHours of work and overtime

• Benefits: vacations, holidays, insurance, pensionsBenefits: vacations, holidays, insurance, pensions

• Health and safety provisionsHealth and safety provisions

• Employee security seniority provisionsEmployee security seniority provisions

• Contract expiration dateContract expiration date

Agreements Agreements

• An actual contract agreement may be a 20- or 30-page An actual contract agreement may be a 20- or 30-page document; it may be even longer. document; it may be even longer.

• It may contain just general declarations of policy, or detailed It may contain just general declarations of policy, or detailed rules and procedures. rules and procedures.

• The tendency today is toward the longer, more detailed The tendency today is toward the longer, more detailed contract. contract.

• This is largely a result of the increased number of items the This is largely a result of the increased number of items the agreements have been covering.agreements have been covering.

• No labor contract can cover all contingencies and answer all No labor contract can cover all contingencies and answer all questions. questions.


Problems Problems

• The labor contract’s grievance procedure usually handles The labor contract’s grievance procedure usually handles problems like these. problems like these.

• The The grievance procedure grievance procedure provides an orderly system provides an orderly system whereby both employer and union determine whether whereby both employer and union determine whether some action violated the contract.some action violated the contract.



GrievancesGrievances

• GrievanceGrievance Any factor involving wages, Any factor involving wages,

hours, or conditions of hours, or conditions of employment that is used employment that is used as a complaint against the as a complaint against the employeremployer

• Sources of GrievancesSources of Grievances DisciplineDiscipline SenioritySeniority Job evaluationsJob evaluations Work assignmentsWork assignments OvertimeOvertime VacationsVacations Incentive plansIncentive plans Holiday payHoliday pay Problem employeesProblem employees AbsenteeismAbsenteeism InsubordinationInsubordination Plant rulesPlant rules

Grievance procedure Grievance procedure

• Most collective bargaining contracts contain a specific Most collective bargaining contracts contain a specific grievance procedure. grievance procedure.

• It lists the steps in the procedure, time limits associated It lists the steps in the procedure, time limits associated with each step, and specific rules such as “all charges of with each step, and specific rules such as “all charges of contract violation must be reduced to writing.” contract violation must be reduced to writing.”

• Virtually every labor agreement signed today contains a Virtually every labor agreement signed today contains a grievance procedure clause.grievance procedure clause.



Grievance ProcedureGrievance Procedure

• Grievant and shop steward meet with supervisor.Grievant and shop steward meet with supervisor.

If not resolved, employee files formal grievanceIf not resolved, employee files formal grievance

• Grievant and shop steward meet with supervisor’s boss. Grievant and shop steward meet with supervisor’s boss.

If grievance is not resolved, meeting with higher-level managers.If grievance is not resolved, meeting with higher-level managers.

• If not resolved, matter goes to arbitration.If not resolved, matter goes to arbitration.


Handling Grievances: DoHandling Grievances: Do1.1. Investigate and handle each case as though it may eventually Investigate and handle each case as though it may eventually

result in arbitration.result in arbitration.

2.2. Talk with the employee about his or her grievance; give the Talk with the employee about his or her grievance; give the person a full hearing.person a full hearing.

3.3. Require the union to identify specific contractual provisions Require the union to identify specific contractual provisions allegedly violated.allegedly violated.

4.4. Comply with the contractual time limits for handling the grievance.Comply with the contractual time limits for handling the grievance.

5.5. Visit the work area of the grievance.Visit the work area of the grievance.

6.6. Determine whether there were any witnesses.Determine whether there were any witnesses.

7.7. Examine the grievant’s personnel record.Examine the grievant’s personnel record.

8.8. Fully examine prior grievance records.Fully examine prior grievance records.

9.9. Treat the union representative as your equal.Treat the union representative as your equal.

10.10. Hold your grievance discussions privately.Hold your grievance discussions privately.

11.11. Fully inform your own supervisor of grievance matters.Fully inform your own supervisor of grievance matters.


Handling Grievances: Don’tHandling Grievances: Don’t1.1. Discuss the case with the union steward alone—the grievant should be Discuss the case with the union steward alone—the grievant should be

there.there.

2.2. Make arrangements with individual employees that are inconsistent with Make arrangements with individual employees that are inconsistent with the labor agreement.the labor agreement.

3.3. Hold back the remedy if the company is wrong.Hold back the remedy if the company is wrong.

4.4. Admit to the binding effect of a past practice.Admit to the binding effect of a past practice.

5.5. Relinquish to the union your rights as a manager.Relinquish to the union your rights as a manager.

6.6. Settle grievances on what is “fair.” Stick to the labor agreement.Settle grievances on what is “fair.” Stick to the labor agreement.

7.7. Bargain over items not covered by the contract.Bargain over items not covered by the contract.

8.8. Treat as subject to arbitration claims demanding discipline or discharge Treat as subject to arbitration claims demanding discipline or discharge of managers.of managers.

9.9. Give long written grievance answers.Give long written grievance answers.

10.10. Trade a grievance settlement for a grievance withdrawal.Trade a grievance settlement for a grievance withdrawal.

11.11. Deny grievances because “your hands are tied by management.”Deny grievances because “your hands are tied by management.”

12.12. Agree to informal amendments in the contract.Agree to informal amendments in the contract.


The Union Movement Today The Union Movement Today and Tomorrowand Tomorrow

• Reasons for the Decline in Union MembershipReasons for the Decline in Union Membership Laws have taken over much of the union’s role Laws have taken over much of the union’s role

as the workers’ protector.as the workers’ protector.

Automation, globalization, and technology have Automation, globalization, and technology have reduced jobs in unionized manufacturing sectors.reduced jobs in unionized manufacturing sectors.

Unions have failed to organize new plants.Unions have failed to organize new plants.

Management has become better at resisting Management has become better at resisting union-organizing efforts.union-organizing efforts.

• Upswing Coming?Upswing Coming? Unions have been more aggressive lately in organizing Unions have been more aggressive lately in organizing

public sector workers and white-collar workers.public sector workers and white-collar workers.

Changes Changes

• Unions are making inroads with professionals and white-Unions are making inroads with professionals and white-collar workers. collar workers.

• Unions are strengthening alliances with unions in other Unions are strengthening alliances with unions in other nations, with the goal of uniting workers in specific nations, with the goal of uniting workers in specific multinational companies and industries around the globe.multinational companies and industries around the globe.


Employee Participation Employee Participation

• For some unions, employee participation is too much of a For some unions, employee participation is too much of a good thing. good thing.

• Many employers encourage employees to work together Many employers encourage employees to work together in quality circles and similar worker participation teams. in quality circles and similar worker participation teams.

• The aim is to help solve work-related problems and create The aim is to help solve work-related problems and create high-performance work systems. high-performance work systems.

• Many unions believe that the result, if not the motive, of Many unions believe that the result, if not the motive, of such programs is to usurp unions’ traditional duties.such programs is to usurp unions’ traditional duties.



High-Performance Work Systems, High-Performance Work Systems, Employee Participation, and UnionsEmployee Participation, and Unions

• To avoid having participation programs viewed To avoid having participation programs viewed as sham unions:as sham unions: Involve employees in the formation of programs.Involve employees in the formation of programs. Emphasize that programs exist only to address Emphasize that programs exist only to address

issues such as quality and productivity.issues such as quality and productivity. Don’t establish programs when union organizing Don’t establish programs when union organizing

activities are beginning.activities are beginning. Use volunteers and rotate membership.Use volunteers and rotate membership. Minimize management participation in programs to Minimize management participation in programs to

avoid interference or the perception of domination.avoid interference or the perception of domination.

Effective Procedure Effective Procedure

• The employer wants its discipline process to be both The employer wants its discipline process to be both effective (in terms of discouraging unwanted behavior) and effective (in terms of discouraging unwanted behavior) and fair. fair.

• Employers base such a process on three pillars: clear Employers base such a process on three pillars: clear rules and regulations, a system of progressive penalties, rules and regulations, a system of progressive penalties, and an appeals process.and an appeals process.



Managing Employee DisciplineManaging Employee Discipline

Clear rules and regulations

A system of progressive

penalties

Fair and Just Discipline Process

A formal unbiased appeals process


FIGURE 14–7DisciplinaryAction Form


FIGURE 14–8Grievance Form as Part of the Appeal Process


Discipline Without Punishment Discipline Without Punishment (Nonpunitive Discipline)(Nonpunitive Discipline)

1.1. Issue an oral reminder.Issue an oral reminder.

2.2. Should another incident arise within six weeks, issue a Should another incident arise within six weeks, issue a formal written reminder, a copy of which is placed in the formal written reminder, a copy of which is placed in the employee’s personnel file.employee’s personnel file.

3.3. Give a paid, one-day “decision-making leave.”Give a paid, one-day “decision-making leave.”

4.4. If no further incidents occur in the next year, then purge If no further incidents occur in the next year, then purge the one-day paid suspension from the person’s file. If the the one-day paid suspension from the person’s file. If the behavior is repeated, the next step is dismissal.behavior is repeated, the next step is dismissal.


FIGURE 14–9 Summary of Fair Discipline Guidelines

• Make sure the evidence supports the charge.

• Make sure the employee’s due process rights are protected.

• Warn the employee of the disciplinary consequences.

• Determine if the rule that was allegedly violated should be “reasonably related” to the efficient and safe operation of the work environment.

• Investigate fairly and adequately the matter before administering discipline.

• Conduct an investigation sufficient to uncover any substantial evidence of misconduct.

• Apply all rules, orders, or penalties evenhandedly.

• Apply a penalty that is reasonably related to the misconduct and to the employee’s past work.

• Maintain the employee’s right to counsel.

• Don’t rob a subordinate of his or her dignity.

• Remember that the burden of proof is on you.

• Get the facts. Don’t base a decision on hearsay or on your general impression.

• Don’t act while angry.

• In general, do not attempt to deal with an employee’s “bad attitude.” Focus on improving the specific behaviors creating the workplace problem.


Employee PrivacyEmployee Privacy• Employee privacy violations upheld by courts:Employee privacy violations upheld by courts:

Intrusion or surveillanceIntrusion or surveillance

Publication of private mattersPublication of private matters

Disclosure of medical recordsDisclosure of medical records

Appropriation of an employee’s name or likenessAppropriation of an employee’s name or likeness

• Actions triggering privacy violations:Actions triggering privacy violations: Background checksBackground checks

Monitoring off-duty conduct and lifestyleMonitoring off-duty conduct and lifestyle

Drug testingDrug testing

Workplace searchesWorkplace searches

Monitoring of workplaceMonitoring of workplace


Employee MonitoringEmployee Monitoring• What Is Monitored:What Is Monitored:

Identity verificationIdentity verification

LocationLocation

E-mail activity and Internet useE-mail activity and Internet use

Telephone callsTelephone calls

• Why Employers Monitor:Why Employers Monitor: To guard against liability for illegal acts and To guard against liability for illegal acts and

harassment suits caused by employee misuseharassment suits caused by employee misuse

To improve productivityTo improve productivity

To detect leaks of confidential informationTo detect leaks of confidential information

To protect against computer virusesTo protect against computer viruses


Restrictions on Workplace Restrictions on Workplace MonitoringMonitoring• The Electronic Communications The Electronic Communications

Privacy Act (ECPA)Privacy Act (ECPA) Restricts employer interception Restricts employer interception

and monitoring of oral and wire and monitoring of oral and wire communicationscommunications

““business purpose exception”business purpose exception”

““consent exception”consent exception”

• Common lawCommon law Provides protections against Provides protections against

invasion of privacyinvasion of privacy


FIGURE 14–10 Sample E-Mail Monitoring Acknowledgment Statement


Managing DismissalsManaging Dismissals• DismissalDismissal

Involuntary termination of an employee’s employment Involuntary termination of an employee’s employment with the firm.with the firm.

• Terminate-at-Will RuleTerminate-at-Will Rule Without a contract, the employee can resign for any reason, Without a contract, the employee can resign for any reason,

at will, and the employer can similarly dismiss the employee at will, and the employer can similarly dismiss the employee for any reason (or no reason), at will.for any reason (or no reason), at will.

• Wrongful DischargeWrongful Discharge An employee dismissal that does not comply with the law or An employee dismissal that does not comply with the law or

does not comply with the contractual arrangement stated or does not comply with the contractual arrangement stated or implied by the firm via its employment application forms, implied by the firm via its employment application forms, employee manuals, or other promises.employee manuals, or other promises.


Managing Dismissals (cont’d)Managing Dismissals (cont’d)

Statutory exceptions

Common law exceptions

Protections Against Wrongful Discharge

Public policy exceptions


Grounds for DismissalGrounds for Dismissal

Unsatisfactory performance

Misconduct

Lack of qualifications

Changed requirements of (or elimination of) the job

Bases for Dismissal


FIGURE 14–11 Was It Gross Misconduct?

• Was anyone physically harmed? How badly?

• Did the employee realize the seriousness of his or her actions?

• Were other employees significantly affected?

• Was the employer’s reputation severely damaged?

• Will the employer lose significant business or otherwise suffer economic harm because of the misconduct?

• Could the employer lose its business license because of the employee’s misconduct?

• Will the employee lose any license needed to work for the employer (e.g., driver’s license)?

• Was criminal activity involved?

• Was fraud involved?

• Was any safety statute violated?

• Was any civil statute violated?

• Was the conduct purposeful?

• Was the conduct on duty?

• Is the violated policy well-known to employees?

• Does the conduct justify immediate termination?

• Has the employer immediately fired other employees who did something similar?


The Termination InterviewThe Termination Interview

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Guidelines for the Termination Interview

Get to the point.

Plan the interview carefully.

Describe the situation.

Listen.

Review all elements of the severance package.

6 Identify the next step.

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